Company registration number 13424988 (England and Wales)
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 9
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
€
€
€
€
Fixed assets
Investment property
7
6,372,159
6,000,000
Current assets
Debtors falling due within one year
8
57,697
24,307
Creditors: amounts falling due within one year
9
(784,830)
(203,183)
Net current liabilities
(727,133)
(178,876)
Total assets less current liabilities
5,645,026
5,821,124
Creditors: amounts falling due after more than one year
10
(5,208,853)
(5,205,853)
Net assets
436,173
615,271
Capital and reserves
Called up share capital
1,200,100
1,200,100
Revaluation reserve
(581,973)
(581,973)
Profit and loss reserves
(181,954)
(2,856)
Total equity
436,173
615,271
The notes on pages 2 to 9 form part of these financial statements.
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 and in accordance with Section1A of FRS102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland'.
The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
Mr G H Edwards
Director
Company registration number 13424988 (England and Wales)
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Lou Investments Healthcare Dooradoyle Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Clive House, 2 Old Brewery Mews, London, NW3 1PZ.
1.1
Reporting period
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. It also requires management to exercise judgement in applying the company's accounting policies.
1.2
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. It also requires management to exercise judgement in applying the company's accounting policies.
The financial statements are prepared in Euros 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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.3
Going concern
In preparing the financial statements, the directors are required to make an assessment of the company's ability to continue as a going concern. The directors have prepared a cash flow forecast for the company which covers the 12-month period from the date of signing these financial statements. The directors' assessment has taken into account current macroeconomic factors. true
On the basis of these forecasts and the company’s balance sheet position, the directors are confident that the company has adequate resources to continue in operational existence and to meet its obligations and liabilities as they fall due for the foreseeable future. In addition, the company’s ultimate controlling party has confirmed his intention to continue to provide to the company such financial support as it requires for its continued operations and to enable it to meet its obligations and liabilities as they fall due for the foreseeable future. As a result of the above, the directors have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements.
1.4
Consolidation
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
1.6
Investment property
Investment property comprises freehold land, freehold buildings and buildings held under long leases. Investment properties are initially recognised at cost which comprises the purchase price and any directly attributable expenditure. Valuations are carried out at each reporting date to measure investment property at fair value. Any gain or loss is calculated by reference to the fair value at the last reporting date and is recognised in the Statement of Comprehensive Income.
Subsequent expenditure is included in the investment properties carrying amount only when it is probably that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the Statement of Comprehensive Income during the year in which they are incurred.
1.7
Impairment
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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.9
Financial instruments
Basic financial assets
Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Debt instruments
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.
Derecognition of financial liabilities
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
1.10
Derivatives
Derivatives, including interest rate swaps, are not basic financial instruments. The company has entered into an interest rate swap to manage its exposure to interest rate cash flow risk on its variable rate debt and set a pre-determined cap on its variable interest rate.
The interest rate swap was initially measured at £nil cost and is subsequently remeasured at fair value and recognised as an asset or liability at each reporting date. Change in fair value of derivatives are recognised in Comprehensive Income.
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.11
Hedge accounting
The company adopts hedge accounting policies for its interest rate swap agreement which is designated, documented and expected to be highly effective.
The hedging instrument is recognised as an asset or liability with the change in fair value being recognised in Comprehensive Income. The hedged risk is the variable interest rate risk of the company’s debt instrument measured at amortised cost, and, accordingly, the periodic net cash settlements on the interest rate swap are recognised in profit or loss in the period in which the net settlements accrue.
Hedge accounting is discontinued where the hedging instrument expires, is sold or terminated, the hedge no longer meets the criteria for hedge accounting, the forecast transaction is no longer highly probable in a hedge of a forecast transaction, or the designation is revoked.
1.12
The Company’s reserves are as follows:
Profit and loss reserves
The profit and loss reserves represent cumulative profits or losses, net of dividends paid and other adjustments.
Revaluation reserve
The revaluation reserve represents the difference between the acquisition cost and fair value of investment property net of taxation that would arise should the property be disposed at its fair value at the balance sheet date. The revaluation reserve is unrealised and non-distributable.
Fair value reserve
The fair value reserve represents the fair value of the company’s interest rate swap net of taxation at the balance sheet date. The fair value reserve is unrealised and non-distributable.
2
Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires management to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. Inherent uncertainty about these assumptions and estimates could result in differing outcomes when assets are realised or when liabilities are settled.
Critical judgements
In applying the company’s accounting policies, management has made the following judgements which have the most significant effect on the amounts recognised in the financial statements:
Impairments
Management considers external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability to judge whether there is an indicator of impairment of an asset.
A provision for impairment or non-recoverability of an asset is recognised / (reversed) where evidence indicates to management that the asset’s recoverable amount is less than its carrying amount / (greater than its previously impaired carrying amount).
Deferred tax asset
Management considers whether it is probably that there will be future taxable profits when considering the recognition of a deferred tax asset.
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Significant accounting judgements, estimates and assumptions
(Continued)
- 6 -
Key sources of estimation uncertainty
In applying the company’s accounting policies, management has made the following estimates which have the most significant effect on the amounts recognised in the financial statements:
Fair valuation of investment property
The fair value of investment property is the directors’ opinion of the estimated amount for which a property could exchange under an arm’s length transaction at the company’s financial year end date.
The directors, in forming their opinion, make a series of assumptions, which are typically market related such as investment yields and expected rental values, which are based on the directors’ professional judgement, experience and market knowledge provided by external estate agents. There is an inherent degree of estimation uncertainty present in property valuations such that the net proceeds receivable on the future disposal of a property to a third party under an arm’s length transaction within the next financial year may differ from the carrying amounts of properties presented in financial statements.
Impairment of intra-group debtors
Impairment of intra-group debtors is made based on an assessment by management of the recoverability of the debtors. Where evidence indicates an impairment of an intra-group debtors should be reflected, the value of an impairment is estimated by reference to the amounts deemed recoverable by reviewing the carrying amount of the group entity.
3
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
Directors' remuneration
No remuneration was paid to the directors. (2022: €Nil)
5
Interest payable and similar expenses
2023
2022
€
€
Interest payable to related companies
178,145
3,809
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
6
Taxation
2023
2022
€
€
Deferred tax
Origination and reversal of timing differences
(724)
Impact of change in tax rate - P & L Reserve
953
(229)
Total deferred tax
953
(953)
The tax assessed for the year is lower than the standard rate of UK corporation tax of 19% (2022: 19%). The differences are explained below:
2023
2022
€
€
Loss before taxation
(178,145)
(585,782)
Profit before taxation multiplied by standard rate of UK corporation tax of 19.00% (2022: 19.00%)
(33,848)
(111,299)
Tax effect of non-tax deductible expenditure
33,848
110,575
Impact of change in tax rate on deferred tax
953
(229)
Taxation charge/(credit) for the year
953
(953)
7
Investment property
2023
€
Valuation
At 1 April 2022
6,000,000
Additions
372,159
At 31 March 2023
6,372,159
8
Debtors
2023
2022
Amounts falling due within one year:
€
€
Amount owed by group undertakings
100
100
Other debtors
57,597
23,254
57,697
23,354
Deferred tax asset (Note 6)
953
57,697
24,307
Amount owed by group undertaking does not bear interest and is repayable on demand.
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
9
Creditors: amounts falling due within one year
2023
2022
€
€
Amounts owed to related companies
629,565
128,183
Trade creditors
36,015
45,000
Accruals and deferred income
119,250
30,000
784,830
203,183
Amounts owed to related companies are unsecured interest bearing and repayable on demand.
10
Creditors: amounts falling due after more than one year
2023
2022
Notes
€
€
Amounts owed to related companies
5,208,853
5,205,853
Amounts owed to related companies comprise market rate loans with interest rates ranging from 2.75% to 5.00% per annum repayable at varying dates up to 31 December 2030.
11
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:
Claire O'Kane
Statutory Auditor:
BDO LLP
12
Related party transactions
The following amounts were outstanding at the reporting end date:
2022
2023
2023
Balance
Transaction value
Balance
Amounts from/ (due to) related parties
€
€
€
Lou Investments Limited
(5,334,036)
(504,382)
(5,838,418)
Lou Investments Healthcare Holdings Dooradoyle Ltd
100
-
100
LOU INVESTMENTS HEALTHCARE DOORADOYLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
13
Controlling party
The company's immediate parent is Lou Investments Healthcare Holdings Dooradoyle Ltd and the ultimate controlling party is Graham Edwards.
The smallest and largest group in which the results of the company are consolidated is Montoya Investments Limited whose registered address is Luna Tower, Waterfront Drive, Road Town, Tortola, British Virgin Islands.
2023-03-312022-04-01false31 January 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr M AllenMr G H EdwardsMr L Gergelfalse134249882022-04-012023-03-31134249882023-03-31134249882022-03-3113424988core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3113424988core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3113424988core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3113424988core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3113424988core:CurrentFinancialInstruments2023-03-3113424988core:CurrentFinancialInstruments2022-03-3113424988core:ShareCapital2023-03-3113424988core:ShareCapital2022-03-3113424988core:RevaluationReserve2023-03-3113424988core:RevaluationReserve2022-03-3113424988core:RetainedEarningsAccumulatedLosses2023-03-3113424988core:RetainedEarningsAccumulatedLosses2022-03-3113424988bus:Director22022-04-012023-03-31134249882021-05-272022-03-3113424988core:UKTax2022-04-012023-03-3113424988core:UKTax2021-05-272022-03-311342498812022-04-012023-03-311342498812021-05-272022-03-31134249882022-03-3113424988core:Non-currentFinancialInstruments2023-03-3113424988core:Non-currentFinancialInstruments2022-03-3113424988bus:PrivateLimitedCompanyLtd2022-04-012023-03-3113424988bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3113424988bus:FRS1022022-04-012023-03-3113424988bus:Audited2022-04-012023-03-3113424988bus:Director12022-04-012023-03-3113424988bus:Director32022-04-012023-03-3113424988bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP