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COMPANY REGISTRATION NUMBER: SC370558
Abbotsford Care (Glenrothes) Limited
Financial Statements
For the year ended
31 March 2023
Abbotsford Care (Glenrothes) Limited
Financial Statements
Year ended 31 March 2023
Contents
Pages
Officers and professional advisers
1
Strategic report
2
Directors' report
3 to 4
Independent auditor's report to the member
5 to 8
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12 to 21
Abbotsford Care (Glenrothes) Limited
Officers and Professional Advisers
The Board of Directors
Mrs K McKechnie
Miss S A McKechnie
Miss M A McKechnie
Mrs J A Vale
Company Secretary
Mrs Alyson Vale
Registered Office
72 Milton Road
Kirkcaldy
Fife
Scotland
KY1 1TP
Auditor
CT
Chartered Accountants & Statutory Auditor
61 Dublin Street
Edinburgh
EH3 6NL
Bankers
Bank of Scotland
9 Falkland Gate
Glenrothes
KY7 5LW
Abbotsford Care (Glenrothes) Limited
Strategic Report
Year ended 31 March 2023
The directors present their strategic report of the company for the year ended 31 March 2023. REVIEW AND ANALYSIS OF THE BUSINESS DURING THE CURRENT YEAR During the year Abbotsford Care (Glenrothes) Limited operated eight nursing homes across Fife. Key performance indicators Management use a range of performance measures to monitor and manage the business. The performance measures are split into financial and non-financial key performance indicators as set out below. Analysis using key performance indicators The company is reporting a pre tax profit of £130,362 for the financial year to 31 March 2023. Turnover for the company has improved from £14,697,712 to £16,373,223 (2023). The company has a gross profit percentage of 14.8% for 2023 compared to 14.4% in 2022. The company's key non-financial performance indicator is occupancy levels and these are monitored on a regular basis. Average occupancy for the year to 31 March 2023 was 94.7% (2021: 92%). Development and financial performance during the year As reported in the company's statement of income and retained earnings, the profit for the year, amounted to £130,362 compared to a profit in 2022 of £326,956. The decrease in profit is due to the wider economic challenges of cost and inflation increases. Financial position at the reporting date The statement of financial position shows that the company's net assets at the year end are £3,077,201 (2022: £3,030,726). The company invested £89,890 (2022: £86,026) in fixed assets, mainly in fixtures and fittings across the eight nursing homes. PRINCIPAL RISKS AND UNCERTAINTIES FACING THE BUSINESS Management continually monitor the key risks facing the company. The principal risks of Abbotsford Care (Glenrothes) Limited are as follows: Occupancy, the company acknowledges the importance to profitability of maintaining high occupancy levels in order to maximise the benefit derived from the substantial fixed costs in place at each care home. Care Inspectorate gradings and patients' care, the company acknowledges the importance of maintaining a high level of care in order to achieve customer satisfaction and maintain good Care Inspectorate gradings which have a direct effect on income and profitability. Loss of key personnel, this would present significant operational difficulties for the company. Management seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised. Reliance on council derived income not increasing in line with staff costs can have a negative impact on overall fee income. These are all monitored closely and procedures are in place to mitigate these risks.
This report was approved by the board of directors on 22 December 2023 and signed on behalf of the board by:
Mrs K McKechnie
Director
Abbotsford Care (Glenrothes) Limited
Directors' Report
Year ended 31 March 2023
The directors present their report and the financial statements of the company for the year ended 31 March 2023 .
Principal activities
The principal activity of the company during the year was that of the operation of nursing homes.
Directors
The directors who served the company during the year were as follows:
Mrs K McKechnie
Miss S A McKechnie
Miss M A McKechnie
Mrs J A Vale
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Employment of disabled persons
It is the company’s policy to give employment and the relevant training to disabled persons wherever practicable. At present we have none of our full time staff registered as disabled.
Employee involvement
The home managers, the senior managers and the directors are considered to be the key management personnel of the company as they are in charge of directing and controlling, running and operating the company on a day to day basis. Salaries are reviewed annually by the director and business development manager. Salaries are benchmarked against the national averages for the sector and equivalent NHS grades.
Events after the end of the reporting period
Particulars of events after the reporting date are detailed in note 27 to the financial statements.
Disclosure of information in the strategic report
The strategic report is set out on page 2.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 judgments 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. A resolution to reappoint CT as auditors will be proposed at the forthcoming Annual General Meeting.
This report was approved by the board of directors on 22 December 2023 and signed on behalf of the board by:
Mrs K McKechnie
Director
Abbotsford Care (Glenrothes) Limited
Independent Auditor's Report to the Member of Abbotsford Care (Glenrothes) Limited
Year ended 31 March 2023
Opinion
We have audited the financial statements of Abbotsford Care (Glenrothes) Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.
Material uncertainty related to going concern
We draw attention to Notes 3 and 26 in the financial statements, which indicate that the directors of Abbotsford Property (Dunfermline) Limited, a company under common control, are currently negotiating the refinancing of its bank borrowing. The current bank facility is due to expire on 31 January 2024. Abbotsford Care (Glenrothes) Limited has granted the bank a bond and floating charge and a cross-corporate guarantee in favour of Abbotsford Property (Dunfermline) Limited. These circumstances indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the 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.
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 directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to the Companies Act 2006 and Health and Safety Regulations. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. We focused on laws and regulations that could give rise to a material misstatement in the company's financial statements. Our tests included, but were not limited to: - agreement of the financial statement disclosures to underlying support documentation; - we have reviewed journal entries for large and unusual entries and for evidence of management override of controls; - enquiries of the directors; - review of minutes of board meetings throughout the period; - review of legal correspondence or invoices, and - obtaining an understanding of the control environment in monitoring compliance with laws and regulations. There are inherent limitations in an audit of financial statements and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
Barry Truswell CA
(Senior Statutory Auditor)
For and on behalf of
CT
Chartered Accountants & Statutory Auditor
61 Dublin Street
Edinburgh
EH3 6NL
22 December 2023
Abbotsford Care (Glenrothes) Limited
Statement of Income and Retained Earnings
Year ended 31 March 2023
2023
2022
Note
£
£
Turnover
4
16,373,223
14,697,712
Cost of sales
13,941,689
12,574,349
-------------
-------------
Gross profit
2,431,534
2,123,363
Administrative expenses
2,639,694
2,513,837
Other operating income
5
339,750
717,310
------------
------------
Operating profit
6
131,590
326,836
Other interest receivable and similar income
10
247
120
Interest payable and similar expenses
11
1,475
------------
------------
Profit before taxation
130,362
326,956
Tax on profit
12
23,887
68,894
---------
---------
Profit for the financial year and total comprehensive income
106,475
258,062
---------
---------
Dividends paid and payable
13
( 60,000)
( 125,000)
Retained earnings at the start of the year
3,028,726
2,895,664
------------
------------
Retained earnings at the end of the year
3,075,201
3,028,726
------------
------------
All the activities of the company are from continuing operations.
Abbotsford Care (Glenrothes) Limited
Statement of Financial Position
31 March 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
14
389,219
412,125
Current assets
Stocks
15
41,811
38,609
Debtors
16
3,565,243
3,495,517
Cash at bank and in hand
426,270
187,251
------------
------------
4,033,324
3,721,377
Creditors: amounts falling due within one year
17
1,288,650
1,046,975
------------
------------
Net current assets
2,744,674
2,674,402
------------
------------
Total assets less current liabilities
3,133,893
3,086,527
Provisions
Taxation including deferred tax
18
56,692
55,801
------------
------------
Net assets
3,077,201
3,030,726
------------
------------
Capital and reserves
Called up share capital
23
2,000
2,000
Profit and loss account
24
3,075,201
3,028,726
------------
------------
Shareholder funds
3,077,201
3,030,726
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 22 December 2023 , and are signed on behalf of the board by:
Mrs K McKechnie
Director
Company registration number: SC370558
Abbotsford Care (Glenrothes) Limited
Statement of Cash Flows
Year ended 31 March 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
106,475
258,062
Adjustments for:
Depreciation of tangible assets
112,796
118,507
Government grant income
( 339,513)
( 717,055)
Other interest receivable and similar income
( 247)
( 120)
Interest payable and similar expenses
1,475
Tax on profit
23,887
68,894
Accrued expenses
117,650
84,667
Changes in:
Stocks
( 3,202)
( 1,154)
Trade and other debtors
( 69,726)
( 499,778)
Trade and other creditors
156,764
( 69,353)
---------
---------
Cash generated from operations
106,359
( 757,330)
Interest paid
( 1,475)
Interest received
247
120
Tax paid
( 55,735)
---------
---------
Net cash from/(used in) operating activities
49,396
( 757,210)
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 89,890)
( 86,026)
---------
---------
Net cash used in investing activities
( 89,890)
( 86,026)
---------
---------
Cash flows from financing activities
Government grant income
339,513
717,055
Dividends paid
( 60,000)
( 125,000)
---------
---------
Net cash from financing activities
279,513
592,055
---------
---------
Net increase/(decrease) in cash and cash equivalents
239,019
( 251,181)
Cash and cash equivalents at beginning of year
187,251
438,432
---------
---------
Cash and cash equivalents at end of year
426,270
187,251
---------
---------
Abbotsford Care (Glenrothes) Limited
Notes to the Financial Statements
Year ended 31 March 2023
1. General information
The company is a private company limited by shares, registered in Scotland. The address of the registered office is 72 Milton Road, Kirkcaldy, Fife, KY1 1TP, Scotland.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. Going concern The financial statements have been prepared on a going concern basis. The directors have assessed the company's ability to continue as a going concern and have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. On this basis they continue to adopt the going concern basis of accounting in preparing these financial statements. As detailed at note 26, there is a cross-corporate guarantee to Abbotsford Property (Dunfermline) Limited in favour of Bank of Scotland for funding totalling £4,601,208 at 31 March 2023. The loan facilities expire 31 January 2024 and the directors are currently considering refinancing options available. 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 amounts of assets and liabilities that are not readily apparent from other sources. As 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. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See Note 14 for carrying amounts of tangible assets. Revenue recognition The turnover shown in the Statement of Income and Retained Earnings represents amounts receivable during the year. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered. Deferred tax Deferred tax is provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and the treatment for tax purposes. Tax deferred is accounted for in respect of all material timing differences. Deferred tax assets are only recognised to the extent that they are regarded as recoverable. Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Property improvements - 5% straight line
Plant and Machinery - 20% straight line
Fixtures and fittings - 20% straight line
Motor vehicles - 25% straight line
Equipment - 20% straight line
Impairment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Debtors
Short term debtors are measured at transaction price, less any impairment.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand.
Creditors
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or financial liability is recognised only when the company becomes a party to the contractual provisions of the financial instrument. Basic financial assets, which include trade and other receivables and cash and bank balances, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future receipts discounted at the market rate of interest for a similar debt instrument. Basic financial liabilities, which include trade creditors and other payables, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future receipts discounted at the market rate of interest for a similar debt instrument. At each reporting date the company assesses whether there is objective evidence that any financial asset has been impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due. The amount of the provision is recognised immediately in profit or loss.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
16,373,223
14,697,712
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Government grant income
339,513
717,055
Other operating income
237
255
---------
---------
339,750
717,310
---------
---------
6. Operating profit
Operating profit or loss is stated after charging:
2023
2022
£
£
Depreciation of tangible assets
112,796
118,507
Impairment of trade debtors
21,836
5,860
---------
---------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
8,580
8,580
-------
-------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
57,499
59,572
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Number of full time staff
373
358
Number of part time staff
197
170
----
----
570
528
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
10,194,605
9,593,297
Social security costs
802,073
706,685
Other pension costs
171,806
168,486
-------------
-------------
11,168,484
10,468,468
-------------
-------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
179,565
166,133
Company contributions to defined contribution pension plans
1,297
1,301
---------
---------
180,862
167,434
---------
---------
10. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
247
120
----
----
11. Interest payable and similar expenses
2023
2022
£
£
Other interest payable and similar charges
1,475
-------
----
12. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
22,996
55,735
Deferred tax:
Origination and reversal of timing differences
891
13,159
--------
--------
Tax on profit
23,887
68,894
--------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 19 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
130,362
326,956
---------
---------
Profit on ordinary activities by rate of tax
24,160
62,122
Adjustment to tax charge in respect of prior periods
( 17)
( 2)
Effect of expenses not deductible for tax purposes
2,336
1,520
Effect of capital allowances and depreciation
( 2,810)
( 8,134)
Remeasurement of deferred tax for changes in tax rates
218
13,388
---------
---------
Tax on profit
23,887
68,894
---------
---------
13. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
60,000
125,000
--------
---------
14. Tangible assets
Property improve-ments
Plant and machinery
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 Apr 2022
151,086
7,017
1,527,483
79,102
51,020
1,815,708
Additions
89,890
89,890
---------
-------
------------
--------
--------
------------
At 31 Mar 2023
151,086
7,017
1,617,373
79,102
51,020
1,905,598
---------
-------
------------
--------
--------
------------
Depreciation
At 1 Apr 2022
18,436
6,549
1,268,574
67,850
42,174
1,403,583
Charge for the year
8,308
468
96,474
4,785
2,761
112,796
---------
-------
------------
--------
--------
------------
At 31 Mar 2023
26,744
7,017
1,365,048
72,635
44,935
1,516,379
---------
-------
------------
--------
--------
------------
Carrying amount
At 31 Mar 2023
124,342
252,325
6,467
6,085
389,219
---------
-------
------------
--------
--------
------------
At 31 Mar 2022
132,650
468
258,909
11,252
8,846
412,125
---------
-------
------------
--------
--------
------------
15. Stocks
2023
2022
£
£
Raw materials and consumables
41,811
38,609
--------
--------
16. Debtors
2023
2022
£
£
Trade debtors
781,060
859,592
Prepayments and accrued income
88,217
114,568
Directors loan account
111
Other debtors
2,695,855
2,521,357
------------
------------
3,565,243
3,495,517
------------
------------
17. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
390,934
269,000
Accruals and deferred income
610,531
492,881
Corporation tax
22,996
55,735
Social security and other taxes
155,319
161,603
Other creditors
108,870
67,756
------------
------------
1,288,650
1,046,975
------------
------------
18. Provisions
Deferred tax (note 19)
£
At 1 April 2022
55,801
Additions
891
--------
At 31 March 2023
56,692
--------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 18)
56,692
55,801
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
56,692
42,642
Deferred tax - other timing differences
13,159
--------
--------
56,692
55,801
--------
--------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 171,806 (2022: £ 168,486 ).
21. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2023
2022
£
£
Recognised in other operating income:
Government grants recognised directly in income
339,513
717,055
---------
---------
22. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2023
2022
£
£
Financial assets that are debt instruments measured at amortised cost
Financial assets measured at amortised cost
3,991,513
3,682,768
------------
------------
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost
1,265,654
991,239
------------
---------
23. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
2,000
2,000
2,000
2,000
-------
-------
-------
-------
24. Reserves
Called up share capital - represents the nominal value of shares that have been issued. Profit and loss account - includes all current and prior period retained profits and losses.
25. Analysis of changes in net debt
At 1 Apr 2022
Cash flows
At 31 Mar 2023
£
£
£
Cash at bank and in hand
187,251
239,019
426,270
---------
---------
---------
26. Contingencies
A bond and floating charge over the assets of the company is in place in favour of the Bank of Scotland. The company has granted Bank of Scotland a cross-corporate guarantee to Abbotsford Property (Dunfermline) Limited, a related party company, for funding totalling £4,601,208 as at 31 March 2023 (£5,216,730 at March 2022). The borrowing group has prepared forecasts and projections up to March 2025 that indicate it will meet all financial covenants within the loan agreements. On the basis of the continuing support of the bankers, the directors are satisfied that it is appropriate to prepare the financial statements on the going concern basis.
Abbotsford Care (Glenrothes) Limited
Notes to the Financial Statements (continued)
Year ended 31 March 2023
27. Events after the end of the reporting period
In September 2023, the care home in Kinglassie was closed. All residents were relocated to other homes operated by the company or alternative care homes in the area. In November 2023, a fire occurred at one of the care homes operated by the company and a small part of this building was damaged. No structural damage was incurred to the building however internal damage was incurred that was primarily water related. As the operator of the home, the assets owned by this company that were damaged were minimal and related to equipment held (such as kitchen equipment). No residents or staff were injured and all residents have been reallocated to other care homes, including to Kinglassie that was re-opened in the short term. The directors anticipate some of the residents will move back into the home in the near future. The full reopening of the home is subject to the timescale of the contractors completing the required repairs. The financial impact of the fire is not yet quantified and the directors are currently liaising with their insurers. The outcome of these discussions is unknown at the date of signing. The directors have confirmed that the going concern status of the company is not materially impacted by the above.
28. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mrs K McKechnie
Mrs J A Vale
111
111
----
----
----
111
111
----
----
----
2022
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mrs K McKechnie
102,500
( 102,500)
Mrs J A Vale
---------
---------
----
102,500
( 102,500)
---------
---------
----
29. Related party transactions
The company rents nursing homes owned by Abbotsford Property (Dunfermline) Limited of which Mrs K McKechnie is a director. Rents are charged to the company in line with agreed terms and total rental payments during the year were £783,057 (2022: £843,400). At year end the company is owed £2,683,594 (2022: £2,455,535) from Abbotsford Property (Dunfermline) Limited. This loan is included in other debtors, there are no fixed terms for repayment and no interest terms attached. Abbotsford Property (Dunfermline) Limited is controlled by Mrs K McKechnie .
30. Ultimate controlling party
The company was under the control of Mrs K McKechnie throughout the year. Mrs K McKechnie is a director and the sole shareholder.