IRIS Accounts Production v23.3.1.45 13274084 Board of Directors 1.1.22 31.12.22 31.12.22 7.2.24 false true false false true false Auditors Opinion iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure132740842021-12-31132740842022-12-31132740842022-01-012022-12-31132740842021-03-16132740842021-03-172021-12-31132740842021-12-3113274084ns16:EnglandWales2022-01-012022-12-3113274084ns15:PoundSterling2022-01-012022-12-3113274084ns11:Director12022-01-012022-12-3113274084ns11:PrivateLimitedCompanyLtd2022-01-012022-12-3113274084ns11:SmallEntities2022-01-012022-12-3113274084ns11:Audited2022-01-012022-12-3113274084ns11:SmallCompaniesRegimeForDirectorsReport2022-01-012022-12-3113274084ns11:SmallCompaniesRegimeForAccounts2022-01-012022-12-3113274084ns11:FullAccounts2022-01-012022-12-3113274084ns6:CurrentFinancialInstruments2022-12-3113274084ns6:CurrentFinancialInstruments2021-12-3113274084ns6:ShareCapital2022-12-3113274084ns6:ShareCapital2021-12-3113274084ns6:RetainedEarningsAccumulatedLosses2022-12-3113274084ns11:RegisteredOffice2022-01-012022-12-3113274084ns6:FurnitureFittings2022-01-012022-12-3113274084ns6:ComputerEquipment2022-01-012022-12-3113274084ns6:FurnitureFittings2021-12-3113274084ns6:ComputerEquipment2021-12-3113274084ns6:FurnitureFittings2022-12-3113274084ns6:ComputerEquipment2022-12-3113274084ns6:FurnitureFittings2021-12-3113274084ns6:ComputerEquipment2021-12-3113274084ns6:WithinOneYearns6:CurrentFinancialInstruments2022-12-3113274084ns6:WithinOneYearns6:CurrentFinancialInstruments2021-12-31
REGISTERED NUMBER: 13274084 (England and Wales)














Financial Statements

for the Year Ended 31 December 2022

for

The Rhallt Care Ltd

The Rhallt Care Ltd (Registered number: 13274084)






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




Page

Balance Sheet 1

Notes to the Financial Statements 2


The Rhallt Care Ltd (Registered number: 13274084)

Balance Sheet
31 December 2022

2022 2021
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 1,051,830 963,687

CURRENT ASSETS
Debtors 5 1,693,305 538,860
Cash at bank and in hand 154,793 362,919
1,848,098 901,779
CREDITORS
Amounts falling due within one year 6 1,230,601 1,947,466
NET CURRENT ASSETS/(LIABILITIES) 617,497 (1,045,687 )
TOTAL ASSETS LESS CURRENT LIABILITIES 1,669,327 (82,000 )

PROVISIONS FOR LIABILITIES 36,884 6,094
NET ASSETS/(LIABILITIES) 1,632,443 (88,094 )

CAPITAL AND RESERVES
Called up share capital 100 100
Retained earnings 1,632,343 (88,194 )
1,632,443 (88,094 )

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 7 February 2024 and were signed on its behalf by:





L A Bedson - Director


The Rhallt Care Ltd (Registered number: 13274084)

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

1. STATUTORY INFORMATION

The Rhallt Care Ltd 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: 13274084

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

Prior period
The company was incorporated on 17 March 2021, so the prior period comparative is only 9 months long.

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/loss of £10,496,011 (2021: £3,444,816) and a profit/loss after tax of £1,720,537 (2021: £511,806). Cash and cash equivalents were £154,793 (2021: £362,919) 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 30 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.

The Rhallt Care Ltd (Registered number: 13274084)

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

2. ACCOUNTING POLICIES - continued

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.

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.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 284 (2021 - 274 ) .

The Rhallt Care Ltd (Registered number: 13274084)

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 966,756 49,186 1,015,942
Additions 219,792 34,183 253,975
Disposals (1,158 ) - (1,158 )
At 31 December 2022 1,185,390 83,369 1,268,759
DEPRECIATION
At 1 January 2022 47,187 5,068 52,255
Charge for year 142,347 22,327 164,674
At 31 December 2022 189,534 27,395 216,929
NET BOOK VALUE
At 31 December 2022 995,856 55,974 1,051,830
At 31 December 2021 919,569 44,118 963,687

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
as restated
£    £   
Trade debtors 858,430 477,590
Amounts owed by group undertakings 748,455 45,919
Other debtors 86,420 15,351
1,693,305 538,860

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
as restated
£    £   
Trade creditors 246,278 321,980
Amounts owed to group undertakings 69,230 890,723
Taxation and social security 175,915 230,626
Other creditors 739,178 504,137
1,230,601 1,947,466

7. LEASING AGREEMENTS
At 31st December 2022, the company had total commitments under operating leases over the remaining life of those leases of £431,737. (2021: £487,122)

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

The Rhallt Care Ltd (Registered number: 13274084)

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 Holdings S.A.R.L 62, which prepares group financial statements. The registered office of Tempus Holdings 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 Holdings S.A.R.L 62.