Registration number:
Premium Care Group Limited
for the Period from 3 November 2021 to 31 March 2023
Premium Care Group Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Premium Care Group Limited
Company Information
Directors |
R Sideras R B Adams |
Registered office |
|
Auditors |
|
Premium Care Group Limited
Strategic Report for the period from 3 November 2021 to 31 March 2023
The directors present their strategic report for the period from 3 November 2021 to 31 March 2023.
Principal activity
The principal activity of the group is that of the operation of residential care and nursing homes.
Fair review of the business
The company was incorporated on 8 November 2021 and has two subsidiaries Premium Care Homes Limited and Premium Care Properties Limited. In March 2022 Premium Care Homes Limited acquired two subsidiaries, Churchfields Care Home Limited, and GJR (Healthcare) Limited who in turn holds a subsidiary, Rosebank Nursing Homes Limited. The subsidiaries both own and operate care homes.
In June 2022 Premium Care Properties Limited acquired JK Healthcare Limited, which operated a single care home. JK Healthcare Limited acquired the business of two additional homes in June 2023 and a further two in December 2023.
In addition Rosebank Nursing Home Limited acquired the business of two additional care homes in October 2022.
Premium Care Group is a new venture, started by award winning healthcare professional Renos Sideras and luxury residential property virtuoso Robert Adams.
At the time of writing, the group has been trading for 22 months and now operates 9 homes in the the South East with a current run rate of consolidated normalised operating profit of c.£5m.
The objective of Premium Care Group is to provide exceptional care in high quality surroundings.
The first acquisition was two outstanding homes in Oxfordshire, the profits from both homes being reinvested back into the homes, adding bedrooms, significant refurbishments to communal areas, bedrooms and gardens, improving the technology infrastructure and IT systems, and investing in training, staff and services offered.
The second acquisition in Essex required fundamental refurbishment. At the time of purchase the home was rated as “Requires Improvements” with special conditions and low occupancy. Within weeks restrictions were lifted and the Care Quality Commission rated the home as good. The home is now full with a waiting list, as indeed are both Oxfordshire homes.
The performance in this year’s group accounts reflects the significant cost of refurbishment made in the care homes within the group and our commitment to improve the quality of the homes and the services provided.
The group's key financial and other performance indicators during the period were as follows:
Financial KPIs |
Unit |
2023 |
Turnover |
£ |
6,165,758 |
Gross Margin |
% |
33 |
Loss before tax |
£ |
(2,003,113) |
Net liabilities |
£ |
(1,779,143) |
EBITDA Loss |
£ |
(737,404) |
Whilst the Group reported a loss in the period, this was anticipated and reflects the investment made in achieving its strategy of upgrading its homes.
Premium Care Group Limited
Strategic Report for the period from 3 November 2021 to 31 March 2023
Principal risks and uncertainties
Covid-19 remains a significant risk due to the implications of any outbreaks within the homes which can lead to restrictions on admissions and staff shortages. Although occupancy levels have now recovered to pre-pandemic levels.
Fee levels:-
As the level of funding from the local authorities is low, the group looks to clients who can top up or personally fund their care where possible.
Labour shortages and increased wage demand:-
There remains a shortage of available labour that is given emphasis by the reduction of Non-EU labour being allowed to enter the market and EU citizens now requiring visas to work in the United Kingdom. There also continues to be increased cost associated with the National Living Wage.
The company's principal risks and uncertainties which affect the business and financial performance are regularly reviewed.
The company's principal financial instruments comprise loans and other finance facilities. The main purpose of these financial instruments is to fund the company's operations as well as to manage working capital and liquidity.
The directors continue to assess the risks facing the company and its subsidiaries in both securing new business and maintaining existing relationships key to the groups future.
Approved and authorised by the
......................................... |
Premium Care Group Limited
Directors' Report for the Period from 3 November 2021 to 31 March 2023
The directors present their report and the for the period from 3 November 2021 to 31 March 2023.
Directors of the group
The directors who held office during the period were as follows:
Financial instruments
Objectives and policies
Price risk, credit risk, liquidity risk and cash flow risk
The main financial risks, to which the company and its subsidiaries have exposure, are interest rates, liquidity, credit risks and competition. The company and its subsidiaries senior management oversees the management of these risks.
Interest rate risk
The company's borrowings include loans which have interest rates that vary with the base rate. The company and its subsidiaries have taken the decision to accept the risk of increased interest charges on these loans resulting from an increase to interest rates and does not intend to change this policy in the immediate future.
Liquidity risk
Whilst ensuring sufficient liquid resources to meet its business operating needs the company and its subsidiaries manages its cash flow and borrowing requirements in the best way possible so as to minimise interest expenditure.
Credit risk
The company and its subsidiaries trade debtors are reviewed on a regular basis and provision for doubtful debts is made when necessary.
Price risk
Expenditure made by the company and its subsidiaries is authorised by management prior to it being made so as to ensure the best prices are being paid for the required goods and services.
Changes in legislation
The company and its subsidiaries monitor changes in legislation that could affect their industry and adapts its policies accordingly.
Competition
The company and its subsidiaries main competitors are other care homes in the local areas.
Premium Care Group Limited
Directors' Report for the Period from 3 November 2021 to 31 March 2023
Going concern
The financial statements have been prepared on a going concern basis which is dependent upon the continuing financial support of loan creditors and group companies.
During its first accounting period, the group has made a loss of £1,779,243, and at the period end has net liabilities of £1,779,143. This is because during this period, the subsidiaries acquired care homes in which the group has invested significant sums to upgrade, repair and modernise the homes with the strategy to improve profitability and maximise returns for the group.
As a result of this, since the period end the results have significantly improved with exceptional occupancy levels, increasing revenues and profits which the group expects to continue. Since the period end, the Group has scaled up its operations by the acquisition of an additional four care homes which has significantly increased profitability and economies of scale. It is anticipated that the group will report profits and a positive net asset position in the near future from the profits of the subsidiaries, and based on current trading performance the annual expected group normalised operating profit is c.£5m. The directors therefore consider the going concern basis to be appropriate.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Premium Care Group Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Premium Care Group Limited
Independent Auditor's Report to the Members of Premium Care Group Limited
Opinion
We have audited the financial statements of Premium Care Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period from 3 November 2021 to 31 March 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, 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 Financial Reporting Standard 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 group's and the parent company's affairs as at 31 March 2023 and of the group's loss for the period then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
Premium Care Group Limited
Independent Auditor's Report to the Members of Premium Care Group Limited
We have nothing to report in this regard.
Opinion on other matter 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 Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 Statement of Directors' Responsibilities [set out on page 6], 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; and
- Identifying and testing significant manual journal entries and reviewing assumptions and judgements made by management in making significant accounting estimates.
Premium Care Group Limited
Independent Auditor's Report to the Members of Premium Care Group Limited
A further description of our responsibilities is available 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.
......................................
For and on behalf of
Statutory Auditor
Chartered Certified Accountants
Woodgate Studios
2-8 Games Road
Hertfordshire
EN4 9HN
Premium Care Group Limited
Consolidated Profit and Loss Account for the Period from 3 November 2021 to 31 March 2023
Note |
2023 |
|
Turnover |
|
|
Cost of sales |
( |
|
Gross profit |
|
|
Administrative expenses |
( |
|
Other operating income |
|
|
Operating loss |
( |
|
Other interest receivable and similar income |
|
|
Interest payable and similar expenses |
( |
|
Loss before tax |
( |
|
Tax on loss |
|
|
Loss for the financial period |
( |
|
Profit/(loss) attributable to: |
||
Owners of the company |
( |
The above results were derived from continuing operations.
The group has no recognised gains or losses for the period other than the results above.
Premium Care Group Limited
Consolidated Statement of Comprehensive Income for the Period from 3 November 2021 to 31 March 2023
2023 |
|
Loss for the period |
( |
Total comprehensive income for the period |
( |
Total comprehensive income attributable to: |
|
Owners of the company |
( |
Premium Care Group Limited
(Registration number: 13722151)
Consolidated Balance Sheet as at 31 March 2023
Note |
2023 |
|
Fixed assets |
||
Intangible assets |
|
|
Tangible assets |
|
|
|
||
Current assets |
||
Stocks |
|
|
Debtors |
|
|
Cash at bank and in hand |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
|
Net current liabilities |
( |
|
Total assets less current liabilities |
|
|
Creditors: Amounts falling due after more than one year |
( |
|
Net liabilities |
( |
|
Capital and reserves |
||
Called up share capital |
100 |
|
Retained earnings |
(1,779,243) |
|
Equity attributable to owners of the company |
(1,779,143) |
|
Shareholders' deficit |
(1,779,143) |
Approved and authorised by the
......................................... |
Premium Care Group Limited
(Registration number: 13722151)
Balance Sheet as at 31 March 2023
Note |
2023 |
|
Fixed assets |
||
Investments |
|
|
Current assets |
||
Debtors |
|
|
Cash at bank and in hand |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
|
Net current assets |
|
|
Total assets less current liabilities |
|
|
Creditors: Amounts falling due after more than one year |
( |
|
Net liabilities |
( |
|
Capital and reserves |
||
Called up share capital |
100 |
|
Retained earnings |
(199,133) |
|
Shareholders' deficit |
(199,033) |
The company made a loss after tax for the financial period of £199,133.
Approved and authorised by the
......................................... |
Premium Care Group Limited
Consolidated Statement of Changes in Equity for the Period from 3 November 2021 to 31 March 2023
Equity attributable to the parent company
Share capital |
Retained earnings |
Total |
Total equity |
|
Loss for the period |
- |
( |
( |
( |
New share capital subscribed |
|
- |
|
|
At 31 March 2023 |
|
( |
( |
( |
Premium Care Group Limited
Statement of Changes in Equity for the Period from 3 November 2021 to 31 March 2023
Share capital |
Retained earnings |
Total |
|
Loss for the period |
- |
( |
( |
New share capital subscribed |
|
- |
|
At 31 March 2023 |
|
( |
( |
Premium Care Group Limited
Consolidated Statement of Cash Flows for the Period from 3 November 2021 to 31 March 2023
Note |
2023 |
|
Cash flows from operating activities |
||
Loss for the period |
( |
|
Adjustments to cash flows from non-cash items |
||
Depreciation and amortisation |
|
|
Finance income |
( |
|
Finance costs |
|
|
Income tax expense |
( |
|
( |
||
Working capital adjustments |
||
Increase in stocks |
( |
|
Decrease in trade debtors |
|
|
Decrease in trade creditors |
( |
|
Cash generated from operations |
( |
|
Income taxes paid |
( |
|
Net cash flow from operating activities |
( |
|
Cash flows from investing activities |
||
Interest received |
|
|
Acquisitions of tangible assets |
( |
|
Acquisition of intangible assets |
( |
|
Cash acquired with subsidiaries |
|
|
Acquisition of subsidiaries |
( |
|
Net cash flows from investing activities |
( |
|
Cash flows from financing activities |
||
Interest paid |
( |
|
Proceeds from issue of ordinary shares, net of issue costs |
|
|
Proceeds from bank borrowing draw downs |
|
|
Proceeds from other borrowing draw downs |
|
|
Net cash flows from financing activities |
|
|
Net increase in cash and cash equivalents |
|
|
Cash and cash equivalents at 3 November |
- |
|
Cash and cash equivalents at 31 March |
355,927 |
Premium Care Group Limited
Statement of Cash Flows for the Period from 3 November 2021 to 31 March 2023
Note |
2023 |
|
Cash flows from operating activities |
||
Loss for the period |
( |
|
Adjustments to cash flows from non-cash items |
||
Finance costs |
|
|
( |
||
Working capital adjustments |
||
Increase in trade debtors |
( |
|
Increase in trade creditors |
|
|
Net cash flow from operating activities |
|
|
Cash flows from investing activities |
||
Acquisition of subsidiaries |
( |
|
Cash flows from financing activities |
||
Interest paid |
( |
|
Proceeds from issue of ordinary shares, net of issue costs |
|
|
Net cash flows from financing activities |
( |
|
Net increase in cash and cash equivalents |
|
|
Cash and cash equivalents at 3 November |
- |
|
Cash and cash equivalents at 31 March |
76,935 |
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The accounts are prepared in the company's functional currency of British Pounds (£) and rounded to the nearest £1.
Going concern
The financial statements have been prepared on a going concern basis which is dependent upon the continuing financial support of loan creditors and group companies.
During its first accounting period, the group has made a loss of £1,779,243, and at the period end has net liabilities of £1,779,143. This is because during this period, the subsidiaries acquired care homes in which the group has invested significant sums to upgrade, repair and modernise the homes with the strategy to improve profitability and maximise returns for the group.
As a result of this, since the period end the results have significantly improved with exceptional occupancy levels, increasing revenues and profits which the group expects to continue. Since the period end, the Group has scaled up its operations by the acquisition of an additional four care homes which has significantly increased profitability and economies of scale. It is anticipated that the group will report profits and a positive net asset position in the near future from the profits of the subsidiaries, and based on current trading performance the annual expected group normalised operating profit is c.£5m. The directors therefore consider the going concern basis to be appropriate.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2023.
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include the estimated useful life of tangible and intangible fixed assets for the purpose of calculating depreciation and amortisation.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Government grants
Grants relating to revenue are recognised on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. A grant which becomes 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 is recognised as revenue in the period in which it becomes receivable.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
15% reducing balance |
Furniture and fittings |
15% and 8% reducing balance |
Motor vehicles |
25% reducing balance |
Land |
Nil |
Buildings |
1% straight line |
Leasehold improvements |
Over the length of the lease |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
5 - 10 years |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Debtors with no stated interest rate and receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Creditors with no stated interest rate and payables within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised in the financial statements in the reporting period in which the dividends are paid.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Turnover |
The analysis of the group's Turnover for the period from continuing operations is as follows:
2023 |
|
Fee income |
|
Other operating income |
The analysis of the group's other operating income for the period is as follows:
2023 |
|
Government grants |
|
Operating loss |
Arrived at after charging/(crediting)
2023 |
|
Depreciation expense |
|
Amortisation expense |
|
Other interest receivable and similar income |
2023 |
|
Other finance income |
|
Interest payable and similar expenses |
2023 |
|
Interest on bank borrowings |
|
Interest on other borrowings |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
|
Wages and salaries |
|
Social security costs |
|
Pension costs, defined contribution scheme |
|
|
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:
2023 |
|
Management and administration |
|
Nursing care and support |
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
2023 |
|
Remuneration |
|
Auditors' remuneration |
2023 |
|
Audit of these financial statements |
3,600 |
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
22,680 |
|
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
|
Deferred taxation |
|
Arising from origination and reversal of timing differences |
( |
The tax on profit before tax for the period is the same as the standard rate of corporation tax in the UK of
The differences are reconciled below:
2023 |
|
Loss before tax |
( |
Corporation tax at standard rate |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
Effect of tax losses |
|
Tax decrease from effect of capital allowances and depreciation |
( |
Tax increase from effect of unrelieved tax losses carried forward |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
Total tax credit |
( |
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Accelerated capital allowances |
( |
Available tax losses |
|
|
From 1 April 2023, the main rate of corporation tax has increased from 19% to 25%.
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Intangible assets |
Group
Goodwill |
Goodwill on acquisition |
Total |
|
Cost or valuation |
|||
Additions |
|
|
|
At 31 March 2023 |
|
|
|
Amortisation |
|||
On acquisition |
|
- |
|
Amortisation charge |
|
|
|
At 31 March 2023 |
|
|
|
Carrying amount |
|||
At 31 March 2023 |
|
|
|
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Tangible assets |
Group
Freehold property |
Leasehold improvements |
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
Cost or valuation |
||||||
Additions |
|
|
|
|
|
|
At 31 March 2023 |
|
|
|
|
|
|
Depreciation |
||||||
On acquisition |
|
- |
|
|
|
|
Charge for the period |
|
|
|
|
|
|
At 31 March 2023 |
|
|
|
|
|
|
Carrying amount |
||||||
At 31 March 2023 |
|
|
|
|
|
|
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Investments |
Group
Details of undertakings
Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
||||
Subsidiary undertakings |
||||
|
|
|
|
|
England |
||||
|
|
|
|
|
England |
||||
|
|
|
|
|
England |
||||
|
|
|
|
|
England |
||||
|
|
|
|
|
England |
||||
|
|
|
|
|
England |
* GJR (Healthcare) Limited is a subsidiary of Premium Care Homes Limited
** Rosebank Nursing Homes Limited and Churchfields Care Home Limited are subsidiaries of GJR (Healthcare) Limited
*** JK Healthcare Limited is a subsidiary of Premium Care Properties Limited
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
The net assets and consolidated goodwill that arose on the acquisitions was as follows :
£ |
|
Tangible assets |
3,291,384 |
Debtors |
4,336,363 |
Cash at bank |
352,747 |
Creditors |
(6,612,949) |
Stock |
9,654 |
Net assets acquired |
1,377,199 |
Cost of investment |
(6,382,857) |
Goodwill on consolidation |
5,005,658 |
Subsidiary undertakings
Premium Care Homes Limited The principal activity of Premium Care Homes Limited is |
Premium Care Properties Limited The principal activity of Premium Care Properties Limited is |
GJR (Healthcare) Limited * The principal activity of GJR (Healthcare) Limited * is |
Rosebank Nursing Homes Limited ** The principal activity of Rosebank Nursing Homes Limited ** is |
Churchfields Care Home Limited ** The principal activity of Churchfields Care Home Limited ** is |
JK Healthcare Limited *** The principal activity of JK Healthcare Limited *** is |
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Company
2023 |
|
Investments in subsidiaries |
|
Subsidiaries |
£ |
Cost or valuation |
|
Additions |
|
Carrying amount |
|
At 31 March 2023 |
|
Stocks |
Group |
Company |
|
2023 |
2023 |
|
Other inventories |
|
- |
Debtors |
Group |
Company |
||
Current |
Note |
2023 |
2023 |
Trade debtors |
|
- |
|
Amounts owed by related parties |
- |
|
|
Other debtors |
|
- |
|
Accrued income |
|
- |
|
Deferred tax asset |
|
- |
|
|
|
Cash and cash equivalents |
Group |
Company |
|
2023 |
2023 |
|
Cash on hand |
|
- |
Cash at bank |
|
|
|
|
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Creditors |
Group |
Company |
||
Note |
2023 |
2023 |
|
Due within one year |
|||
Trade creditors |
|
- |
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
Corporation tax liability |
86,016 |
- |
|
Deferred income |
|
- |
|
|
|
||
Due after one year |
|||
Bank borrowings |
|
- |
|
Other borrowings |
|
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2023 |
||
No. |
£ |
|
|
|
100 |
New shares allotted
During the period 100 |
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Loans and borrowings |
Group |
Company |
|
2023 |
2023 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
- |
Other borrowings |
|
|
|
|
Group
Bank borrowings
The bank borrowing is secured by a fixed and floating charge over Premium Care Homes Limited and its subsidiaries assets. In addition there is a fixed charge over the shares owned in Premium Care Homes Limited. |
Other borrowings
1st loan is denominated in Pounds (£) with a nominal interest rate of 5%, and the final instalment is due on 21 June 2025. The carrying amount at year end is £898,697.
2nd loan is denominated in Pounds (£) with a nominal interest rate of 5%, and the final instalment is due on 30 October 2025. The carrying amount at year end is £477,440.
3rd loan is denominated in Pounds (£) with a nominal interest rate of 5%, and the final instalment is due on 12 July 2025. The carrying amount at year end is £1,500,000.
4th loan is denominated in Pounds (£) with a nominal interest rate of 5%, and the final instalment is due on 16 March 2025. The carrying amount at year end is £3,363,630.
Premium Care Group Limited
Notes to the Financial Statements for the Period from 3 November 2021 to 31 March 2023
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
2023 |
|
Not later than one year |
|
Later than one year and not later than five years |
|
Later than five years |
|
|
Related party transactions |
Group
Summary of transactions with other related parties