Registered number: 10392044
NORTHFIELD CARE CENTRE (THORNE) LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 APRIL 2023
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NORTHFIELD CARE CENTRE (THORNE) LIMITED
REGISTERED NUMBER: 10392044
BALANCE SHEET
AS AT 30 APRIL 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current assets/(liabilities)
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 February 2024.
The notes on pages 3 to 9 form part of these financial statements.
Page 1
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NORTHFIELD CARE CENTRE (THORNE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
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Comprehensive income for the year
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Total comprehensive income for the year
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Total transactions with owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Total transactions with owners
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The notes on pages 3 to 9 form part of these financial statements.
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Page 2
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NORTHFIELD CARE CENTRE (THORNE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
Northfield Care Centre (Thorne) Ltd is a private company incorporated in England and Wales. Its
registered office is Chace Court, Thorne, Doncaster, DN8 4BW. Its principal activity is the provision of
care services.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements are prepared in sterling and rounded to the nearest £.
The following principal accounting policies have been applied:
The Directors believe that the Company’s financial statements should be prepared on a going
concern basis and have considered a period of twelve months from the date of approval of these
financial statements.
The Group is reliant on the continued support of the Bank, which has a cross corporate charge
across all Group entities.
The Group’s performance continues to be impacted by the ongoing effects of inflation and the cost of
living crisis currently impacting the economy which have led to a number of breaches of covenant on
the Group's bank facilities. The Group also continues to have significant deferred liabilities with
HMRC. The Group has continued to trade following the sale of key assets and support from it's
Bankers but there's no guarantee this support will continue for the foreseeable future.
After reviewing the Group's forecasts and projections, the Directors have a reasonable expectation
that the Group will show increased profitability going forward which will allow the deferred liabilities to
be cleared and allow the Group to continue in operational existence for the foreseeable future. These
forecasts however also show the Group has a short-term funding requirement that will need to be
met by further support from either the Bank, the owners, asset sales or new investors.
Based on this the Directors continue to adopt the going concern basis in preparing the Company’s
financial statements however acknowledge there is material uncertainty around this relating to factors
outside of it's control, in particular the reliance on the Bank.
Turnover comprises revenue recognised by the Company in respect of goods and services supplied during the year to residents of the nursing home.
Turnover is recognised when services are provided.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Page 3
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NORTHFIELD CARE CENTRE (THORNE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 4
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NORTHFIELD CARE CENTRE (THORNE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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The average monthly number of employees, including directors, during the year was 83 (2022 - 65).
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Page 5
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NORTHFIELD CARE CENTRE (THORNE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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Charge for the year on owned assets
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Charge for the year on owned assets
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Page 6
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NORTHFIELD CARE CENTRE (THORNE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
4.Tangible fixed assets (continued)
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Cross guarantees to the bank exist over group assets to secure group borrowings. At the year end the group indebtedness to the bank totalled £9,352,322 (2022: £9,002,323).
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Amounts owed by group undertakings
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Amounts owed by joint ventures and associated undertakings
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Prepayments and accrued income
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No impairment has been recognised against trade debtors (2022: £Nil).
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Amounts owed to joint ventures
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
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Page 7
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NORTHFIELD CARE CENTRE (THORNE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Short term timing differences
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Allotted, called up and fully paid
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100 (2022 - 100) Ordinary shares of £1.00 each
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The Company operates a defined contribution pension scheme. The assets of the pension scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund amount to £19,286 (2022: £12,969). Contributions totaling £7,242 (2022: £5,491) were payable at the balance sheet date and are included in creditors.
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Commitments under operating leases
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At 30 April 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Page 8
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NORTHFIELD CARE CENTRE (THORNE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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Related party transactions
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The company has taken advantage of the exemption available within FRS 102 not to disclose details of any transactions between itself and its fellow group undertakings on the basis that it is a subsidiary undertaking where 100% of the voting rights are controlled within the group whose consolidated financial statements are publicly available.
At 30 April 2023 the Company was owed £nil (2022: £41,441) from a participating interest.
During the year, key management personnel were remunerated £70,344 (2022: £55,216).
Included within other creditors is an amount of £225 that is owed to a director. The amount is unsecured, interest free and repayable on demand.
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The Company's immediate parent company is MPS Care Limited by virtue of owning the entire issued share capital of the Company. The Company's ultimate parent company is MPS Care Group Limited, registered office:
Chace Court,
Thorne,
Doncaster,
DN8 4BW
The ultimate controlling party is P Gray by virtue of owning the entire issued share capital of MPS Care Group Limited.
The auditors' report on the financial statements for the year ended 30 April 2023 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to note 2.2 in the financial statements, which notes that the Group remains reliant on the support of it's Bank and there is uncertainty with regards to this support. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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The audit report was signed on 14 February 2024 by James Delve (Senior Statutory Auditor) on behalf of PKF Smith Cooper Audit Limited.
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