Company registration number 11930246 (England and Wales)
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 12
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
€
€
€
€
Fixed assets
Investment property
7
14,366,293
13,381,667
Current assets
Debtors falling due within one year
8
673,026
728,529
Debtors falling due after more than one year
8
2,389,462
933,340
Cash at bank and in hand
9
679,173
411,973
3,741,661
2,073,842
Creditors: amounts falling due within one year
10
(877,120)
(1,995,370)
Net current assets
2,864,541
78,472
Total assets less current liabilities
17,230,834
13,460,139
Creditors: amounts falling due after more than one year
11
(16,407,000)
(14,727,168)
Provisions for liabilities
12
(135,069)
Net assets/(liabilities)
823,834
(1,402,098)
Capital and reserves
Called up share capital
1,500,000
1,500,000
Revaluation reserve
(2,226,906)
(2,850,308)
Fair value reserve
1,792,097
700,005
Profit and loss reserves
(241,357)
(751,795)
Total equity
823,834
(1,402,098)
The notes on pages 2 to 12 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 11930246 (England and Wales)
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Lou Investments Healthcare Kilkenny 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
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.
1.2
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. 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.
1.3
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.
1.4
Turnover
Turnover is recognised net of value added tax in the Statement of Comprehensive Income as follows:
Rental income, service charge income and other income receivable from operating leases, net of lease incentives, is recognised evenly over the lease term except where an alternative basis represents the timing of the economic benefits to be derived from leases.
LOU INVESTMENTS HEALTHCARE KILKENNY 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
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 KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.8
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.
1.9
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 KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.10
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.
1.11
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 in finance costs in profit or loss in the period it arises.
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.
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
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.
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.
Fair value of financial instruments
The Company determines the fair value of financial instruments that are not quoted, using valuation techniques. Those techniques are significantly affected by the assumptions used, including discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot always be substantiated by comparison with independent markets and, in many cases, may not be capable of being immediately realised.
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
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 on bank overdrafts and loans
190,513
176,672
Interest payable to related companies
446,945
431,415
637,458
608,087
6
Taxation
2023
2022
€
€
Deferred tax
Origination and reversal of timing differences
(250,815)
(2,230)
Impact of change in tax rate - P & L Reserve
(79,205)
(23,584)
Adjustment in respect of prior periods
(169,079)
Total deferred tax
(499,099)
(25,814)
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Taxation
(Continued)
- 8 -
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
€
€
Profit/(loss) before taxation
634,741
(3,319,043)
Profit/(loss) before taxation multiplied by standard rate of UK corporation tax of 19.00% (2022: 19.00%)
120,601
(630,618)
Tax effect of non-tax deductible expenditure
(151,524)
628,388
Adjustments in respect of prior years
(169,079)
Movement on unrecognised deferred tax
(219,892)
Impact of change in tax rate on deferred tax
(79,205)
(23,584)
Taxation credit for the year
(499,099)
(25,814)
In addition to the amount credited to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
€
€
Deferred tax arising on:
Revaluation of financial instruments treated as cash flow hedges
364,030
233,335
7
Investment property
2023
€
Valuation
At 1 April 2022
13,381,667
Additions
361,224
Fair value movement
623,402
At 31 March 2023
14,366,293
Investment properties have been pledged as security for borrowings of the company and subordinated borrowings elsewhere in the group.
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
8
Debtors
2023
2022
Amounts falling due within one year:
€
€
Trade debtors
59,072
572,843
Derivative financial instruments
59,847
-
Other debtors
544,830
Prepayments and accrued income
9,277
155,686
673,026
728,529
2023
2022
Amounts falling due after more than one year:
€
€
Interest rate swap at fair value
2,389,462
933,340
Total debtors
3,062,488
1,661,869
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
9
Cash at bank and in hand
2023
2022
€
€
Cash at bank
679,173
411,973
As at 31 March 2023, included within cash at bank is €679,173 (2022: €2,700) which is subject to various lender restrictions on the Company's ability to utilise these balances
10
Creditors: amounts falling due within one year
2023
2022
€
€
Bank loan
351,770
Amounts owed to related companies
236,438
1,809,465
Trade creditors
34,390
30,691
Amounts owed to group undertakings
106
106
Taxation and social security
16,935
103,866
Accruals and deferred income
237,481
51,242
877,120
1,995,370
Amounts owed to group and related companies are repayable on demand.
11
Creditors: amounts falling due after more than one year
2023
2022
Notes
€
€
Bank loan
9,774,803
Amounts owed to related companies
6,632,197
14,727,168
16,407,000
14,727,168
The bank loan comprises the company’s allocation of a €27.5m senior loan facilities provided by Norddeutsche Landesbank on 15 December 2021 and to the company and three other affiliated companies.
The facilities are secured against the company’s investment property and against investment properties held by the other affiliated borrowers.
At the reporting date, €26.5m of the €27.5m had been drawn of which €10.26m had been allocated to the company. The loan is repayable via bi-annual instalments with the final repayment instalment being due on 30 June 2045.
The variable interest rate is EURIBOR plus margin. The company has hedged its variable interest rate risk by entering into an interest rate swap agreement aligning with the loan amortization profile for the term of the loan. The effective fixed interest rate for the term of the loan ranges from 1.91% to 2.16% per annum.
Amounts owed to related companies comprise subordinated market rate loans with interest rates ranging from 2.75% to 5.00% per annum repayable at varying dates up to 31 December 2030.
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Creditors: amounts falling due after more than one year
(Continued)
- 11 -
Maturity of debt:
2023
2022
€
€
Within one year
588,208
1,809,465
Between one and two years
377,470
-
Between two and five years
1,228,192
-
After five years
14,801,338
14,727,168
16,407,000
14,727,168
12
Provisions for liabilities - deferred tax
2023
2022
€
€
At 1 April 2022
135,069
-
Additions
(135,069)
233,335
Charges against provisions
-
(98,266)
At 31 March 2023
135,069
13
Operating lease commitments
The company as lessor
The total future minimum lease payments receivable under non-cancellable operating leases are as follows:
2023
2022
€
€
Within one year
633,933
633,933
Between two and five years
2,535,731
2,535,731
In over five years
11,586,204
12,220,137
14,755,868
15,389,801
14
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
15
Related party transactions
LOU INVESTMENTS HEALTHCARE KILKENNY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
15
Related party transactions
(Continued)
- 12 -
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
(16,536,633)
9,667,998
(6,868,635)
Lou Investments Healthcare Holdings Kilkenny Ltd
(106)
-
(106)
16
Controlling party
The company's immediate parent is Lou Investments Healthcare Holdings Kilkenny Ltd and the ultimate controlling party is Graham Edwards.
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 Gergelfalse119302462022-04-012023-03-31119302462023-03-31119302462022-03-3111930246core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3111930246core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3111930246core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3111930246core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3111930246core:CurrentFinancialInstruments2023-03-3111930246core:CurrentFinancialInstruments2022-03-3111930246core:Non-currentFinancialInstruments2023-03-3111930246core:Non-currentFinancialInstruments2022-03-3111930246core:ShareCapital2023-03-3111930246core:ShareCapital2022-03-3111930246core:RevaluationReserve2023-03-3111930246core:RevaluationReserve2022-03-3111930246core:HedgingReserve2023-03-3111930246core:HedgingReserve2022-03-3111930246core:RetainedEarningsAccumulatedLosses2023-03-3111930246core:RetainedEarningsAccumulatedLosses2022-03-3111930246bus:Director22022-04-012023-03-31119302462021-04-012022-03-311193024612022-04-012023-03-311193024612021-04-012022-03-3111930246core:UKTax2022-04-012023-03-3111930246core:UKTax2021-04-012022-03-311193024622022-04-012023-03-311193024622021-04-012022-03-3111930246core:HedgingReserve2022-04-012023-03-3111930246core:HedgingReserve2021-04-012022-03-31119302462022-03-3111930246core:WithinOneYear2023-03-3111930246core:WithinOneYear2022-03-3111930246core:BetweenTwoFiveYears2023-03-3111930246core:BetweenTwoFiveYears2022-03-3111930246core:MoreThanFiveYears2023-03-3111930246core:MoreThanFiveYears2022-03-3111930246bus:PrivateLimitedCompanyLtd2022-04-012023-03-3111930246bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3111930246bus:FRS1022022-04-012023-03-3111930246bus:Audited2022-04-012023-03-3111930246bus:Director12022-04-012023-03-3111930246bus:Director32022-04-012023-03-3111930246bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP