Company registration number 12353791 (England and Wales)
LOU INVESTMENTS HEALTHCARE ROSCOMMON  LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
LOU INVESTMENTS HEALTHCARE ROSCOMMON  LTD
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 11
LOU INVESTMENTS HEALTHCARE ROSCOMMON  LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
Fixed assets
Investment property
7
13,461,297
11,968,815
Current assets
Debtors falling due within one year
8
496,302
343,885
Debtors falling due after more than one year
8
633,768
293,637
Cash at bank and in hand
9
483,422
290,347
1,613,492
927,869
Creditors: amounts falling due within one year
10
(1,039,780)
(1,089,478)
Net current assets/(liabilities)
573,712
(161,609)
Total assets less current liabilities
14,035,009
11,807,206
Creditors: amounts falling due after more than one year
11
(8,285,837)
(8,338,537)
Provisions for liabilities
12
(531,683)
(49,252)
Net assets
5,217,489
3,419,417
Capital and reserves
Called up share capital
2,000,000
2,000,000
Revaluation reserve
1,847,325
727,964
Fair value reserve
475,326
220,228
Profit and loss reserves
894,838
471,225
Total equity
5,217,489
3,419,417

The notes on pages 2 to 11 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 12353791 (England and Wales)
LOU INVESTMENTS HEALTHCARE ROSCOMMON  LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information

Lou Investments Healthcare Roscommon 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 fact that the company has substantial net assets and net current assets, the directors are confident that the company have adequate resources to continue in operational existence and to meet its obligations and liabilities as they fall due for the foreseeable future. The directors have therefore 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 ROSCOMMON  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 ROSCOMMON  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 ROSCOMMON  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

Reserves

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 ROSCOMMON  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.

Recoverability of intra-group debtors

Recoverability 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 ROSCOMMON  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
-
0
-
0
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
81,327
19,860
Interest payable to related companies
172,995
290,738
254,322
310,598
6
Taxation
2023
2022
Deferred tax
Origination and reversal of timing differences
334,325
(16,134)
Impact of change in tax rate - P & L Reserve
105,576
(5,798)
Adjustment in respect of prior periods
(42,503)
-
0
Origination and reversal of timing differences - P & L Reserve
-
0
(229,204)
Total deferred tax
397,398
(251,136)
LOU INVESTMENTS HEALTHCARE ROSCOMMON  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 higher than the standard rate of UK corporation tax of 19% (2022: 19%). The differences are explained below:

2023
2022
Profit before taxation
1,940,372
161,244
Profit before taxation multiplied by standard rate of UK corporation tax of 19.00% (2022: 19.00%)
368,671
30,636
Tax effect of non-tax deductible expenditure
-
0
36,182
Tax effect of income not taxable in determining taxable profit
(34,346)
-
0
Adjustments in respect of prior years
(42,503)
-
0
Effect of capital allowances and depreciation
-
0
(39,615)
Deferred tax derecognised
-
0
(272,542)
Impact of change in tax rate on deferred tax
105,576
(5,797)
Taxation charge/(credit) for the year
397,398
(251,136)

In addition to the amount charged/(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
85,033
55,057
7
Investment property
2023
Valuation
At 1 April 2022
11,968,815
Fair value movement
1,492,482
At 31 March 2023
13,461,297

Investment properties have been pledged as security for borrowings of the company and subordinated borrowings elsewhere in the group.

 

LOU INVESTMENTS HEALTHCARE ROSCOMMON  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
165,994
118,109
Derivative financial instruments
27,674
-
Other debtors
295,413
204,640
Prepayments and accrued income
7,221
21,136
496,302
343,885
2023
2022
Amounts falling due after more than one year:
Interest rate swap at fair value
633,768
293,637
Total debtors
1,130,070
637,522
9
Cash at bank and in hand
2023
2022
Cash at bank
483,422
290,347
As at 31 March 2023, included within cash at bank is €483,422 (2022: €287,341) 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
349,315
331,016
Amounts owed to related companies
313,458
413,495
Trade creditors
6,348
9,092
Amounts owed to group undertakings
180,944
180,944
Taxation and social security
-
0
15,119
Accruals and deferred income
189,715
139,812
1,039,780
1,089,478

Amounts owed to group and related companies are repayable on demand.

LOU INVESTMENTS HEALTHCARE ROSCOMMON  LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
11
Creditors: amounts falling due after more than one year
2023
2022
Notes
Bank loan
3,912,243
4,261,557
Amounts owed to related companies
4,373,594
4,076,980
8,285,837
8,338,537

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 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 €4.59m had been allocated to the company. The loan is repayable via bi-annual instalments with the final repayment instalment being due on 31 December 2034.

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 1.68% to 1.93% 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.

Maturity of debt:
2023
2022
Within one year
662,773
744,511
Between one and two years
363,840
349,315
Between two and five years
1,085,477
1,076,689
After five years
6,836,520
6,912,533
8,285,837
8,338,537
12
Provisions for liabilities - deferred tax
2023
2022
At 1 April 2022
49,252
226,979
Additions
482,431
115,512
Charges against provisions
-
(293,239)
At 31 March 2023
531,683
49,252
LOU INVESTMENTS HEALTHCARE ROSCOMMON  LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
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
681,994
486,955
Between two and five years
2,727,975
1,947,820
In over five years
5,330,762
4,291,048
8,740,731
6,725,823
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

The following amounts were outstanding at the reporting end date:

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
(4,490,475)
(196,577)
(4,687,052)
Lou Investments Healthcare Holdings Roscommon Ltd
(180,944)
-
(180,944)
16
Controlling party

The company's immediate parent is Lou Investments Healthcare Holdings Roscommon 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 Gergelfalse123537912022-04-012023-03-31123537912023-03-31123537912022-03-3112353791core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3112353791core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3112353791core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3112353791core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3112353791core:CurrentFinancialInstruments2023-03-3112353791core:CurrentFinancialInstruments2022-03-3112353791core:Non-currentFinancialInstruments2023-03-3112353791core:Non-currentFinancialInstruments2022-03-3112353791core:ShareCapital2023-03-3112353791core:ShareCapital2022-03-3112353791core:RevaluationReserve2023-03-3112353791core:RevaluationReserve2022-03-3112353791core:HedgingReserve2023-03-3112353791core:HedgingReserve2022-03-3112353791core:RetainedEarningsAccumulatedLosses2023-03-3112353791core:RetainedEarningsAccumulatedLosses2022-03-3112353791bus:Director22022-04-012023-03-31123537912021-04-012022-03-311235379112022-04-012023-03-311235379112021-04-012022-03-3112353791core:UKTax2022-04-012023-03-3112353791core:UKTax2021-04-012022-03-311235379122022-04-012023-03-311235379122021-04-012022-03-311235379132022-04-012023-03-311235379132021-04-012022-03-3112353791core:HedgingReserve2022-04-012023-03-3112353791core:HedgingReserve2021-04-012022-03-31123537912022-03-3112353791core:WithinOneYear2023-03-3112353791core:WithinOneYear2022-03-3112353791core:BetweenTwoFiveYears2023-03-3112353791core:BetweenTwoFiveYears2022-03-3112353791core:MoreThanFiveYears2023-03-3112353791core:MoreThanFiveYears2022-03-3112353791bus:PrivateLimitedCompanyLtd2022-04-012023-03-3112353791bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3112353791bus:FRS1022022-04-012023-03-3112353791bus:Audited2022-04-012023-03-3112353791bus:Director12022-04-012023-03-3112353791bus:Director32022-04-012023-03-3112353791bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP