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REGISTERED NUMBER: 08778019 (England and Wales)














Financial Statements

for the Year Ended 31 December 2022

for

Hilton House Care Limited

Hilton House Care Limited (Registered number: 08778019)






Contents of the Financial Statements
for the Year Ended 31 December 2022




Page

Balance Sheet 1

Notes to the Financial Statements 2


Hilton House Care Limited (Registered number: 08778019)

Balance Sheet
31 December 2022

2022 2021
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 211,372 219,916

CURRENT ASSETS
Debtors 5 446,176 129,071
Cash at bank and in hand 123,782 85,454
569,958 214,525
CREDITORS
Amounts falling due within one year 6 411,953 167,490
NET CURRENT ASSETS 158,005 47,035
TOTAL ASSETS LESS CURRENT LIABILITIES 369,377 266,951

PROVISIONS FOR LIABILITIES 39,631 35,941
NET ASSETS 329,746 231,010

CAPITAL AND RESERVES
Called up share capital 100 100
Retained earnings 329,646 230,910
SHAREHOLDERS' FUNDS 329,746 231,010

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 5 February 2024 and were signed on its behalf by:





L A Bedson - Director


Hilton House Care Limited (Registered number: 08778019)

Notes to the Financial Statements
for the Year Ended 31 December 2022

1. STATUTORY INFORMATION

Hilton House Care Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number: 08778019

Registered office: Unit 2 Evolution
Hooters Hall Road
Newcastle-under-Lyme
Staffordshire
ST5 9QF

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

In the year ended 30 December 2022 the company generated a gross profit of £1,250,607 (2021: £1,415,395) and a profit/loss after tax of £98,736 (2021: £419,850). Cash and cash equivalents were £123,782 (2021: £85,454) as at 30 December 2022.

The directors have prepared detailed cash flow forecasts for the company for a period of at least 12 months from the date of approval of the financial statements. The forecasts consider the directors' views of current and future economic conditions that are expected to prevail over the period. The Company's forecasts are dependent on the group providing further funding in a severe but plausible downside scenario. Lovett Care Holdings Limited, "The Group", has indicated that it intends to provide financial support to the Company as required. The directors have concluded that the Group has the ability and intent to provide this support. The key factors considered in reaching this conclusion are summarised below:

- The Group has access to debt facilities consisting of an external term loan of £60m and a shareholder term loan of £52m. Both facilities are subject to covenant compliance.
- The aggregate value of group debt as at 31 December 2022 is £48m (see note 18 for more detail).
- The external term loan was granted in March 2023 and is repayable in February 2029. The shareholder term loan expires or is repayable in August 2024. The cash flow forecasts assume the shareholder term loan will not become repayable and instead, will be transferred to shareholder equity. Subsequent to the year-end the shareholders commenced a process to formally consider equitizing the shareholder term loan debt facility. A subordination agreement between the external loan provider, Group and shareholders prevents the shareholder debt being repaid should it result in a covenant breach on the external debt.
- In performing their assessment, the directors have considered a severe but plausible downside scenario which models the impact of a downturn in trade. In this scenario revenues are combined with increased costs due to inflationary pressures. This results in a corresponding fall in profitability with the impacted earnings before interest, tax, depreciation and amortisation (EBITDA) although covenants continue to be met.

As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as that fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared these financial statements on a going concern basis.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Hilton House Care Limited (Registered number: 08778019)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents net invoiced sales of services, excluding value added tax.

Revenue is recognised as the company becomes entitled to consideration for the services supplied. Therefore, turnover also includes the element of services supplied but not yet invoiced.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 15% on reducing balance
Computer equipment - 30% on reducing balance

Government grants
Grants from local authorities are recognised where there is reasonable assurance that the grant will be received and the company will comply with all attached conditions.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 49 (2021 - 48 ) .

Hilton House Care Limited (Registered number: 08778019)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

4. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 January 2022 526,647 62,629 589,276
Additions 27,920 2,233 30,153
At 31 December 2022 554,567 64,862 619,429
DEPRECIATION
At 1 January 2022 326,645 42,715 369,360
Charge for year 32,490 6,207 38,697
At 31 December 2022 359,135 48,922 408,057
NET BOOK VALUE
At 31 December 2022 195,432 15,940 211,372
At 31 December 2021 200,002 19,914 219,916

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
as restated
£    £   
Trade debtors 76,870 73,065
Amounts owed by group undertakings 330,269 32,633
Other debtors 39,037 23,373
446,176 129,071

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
as restated
£    £   
Trade creditors 30,588 40,958
Amounts owed to group undertakings 286,811 75,834
Taxation and social security 12,975 7,586
Other creditors 81,579 43,112
411,953 167,490

7. LEASING AGREEMENTS
At 31st December 2022, the company had total commitments under operating leases over the remaining life of those leases of £92,657 (2021: £105,689)

8. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Clare Partridge (Senior Statutory Auditor)
for and on behalf of KPMG LLP

Hilton House Care Limited (Registered number: 08778019)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

9. ULTIMATE CONTROLLING PARTY

The immediate parent company is Lovett Care Limited and ultimate parent undertaking and controlling party is Tempus Holding S.A.R.L 62, which prepares group financial statements. The registered office of Tempus Holding S.A.R.L 62 is 15, Boulevard F.W. Raiffeisen, L-2411 Luxembourg.

Consolidated financial statements are available on request from the registered office of Tempus Holding S.A.R.L 62.