Company registration number 06381955 (England and Wales)
CLOSE CARE HOMES (SOMERTON) LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
PAGES FOR FILING WITH REGISTRAR
CLOSE CARE HOMES (SOMERTON) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
CLOSE CARE HOMES (SOMERTON) LIMITED
BALANCE SHEET
AS AT
30 JUNE 2022
30 June 2022
- 1 -
30 June 2022
29 June 2021
Notes
£
£
£
£
Fixed assets
Investments
4
75
-
0
Current assets
Stocks
6
1,645,000
1,614,959
Debtors
7
10,727
5,875
Cash at bank and in hand
127
135
1,655,854
1,620,969
Creditors: amounts falling due within one year
8
(2,071,949)
(780,881)
Net current (liabilities)/assets
(416,095)
840,088
Total assets less current liabilities
(416,020)
840,088
Creditors: amounts falling due after more than one year
9
-
0
(1,000,000)
Net liabilities
(416,020)
(159,912)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(416,120)
(160,012)
Total equity
(416,020)
(159,912)

The directors of the company have elected not to include a copy of the profit and loss account 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.

The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
J Y Bailey
Director
Company Registration No. 06381955
CLOSE CARE HOMES (SOMERTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
- 2 -
1
Accounting policies
Company information

Close Care Homes (Somerton) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lime Court, Pathfields Business Park, South Molton, Devon EX36 3LH. The trading address of the company is Wessex House, Pesters Lane, Somerton TA11 7AA.

 

Close Care Homes (Somerton) Limited is a wholly owned subsidiary of The Stepping Stone Group Limited.

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.

The financial statements are prepared in sterling, 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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

 

The financial statements of the company are consolidated in the financial statements of the ultimate parent company, The Stepping Stone Group Limited, which are publicly available. The Stepping Stone Group Limited is a company registered in England and Wales. The company's registered office is Lime Court, Pathfields Business Park, South Molton, Devon, EX36 3LH.

CLOSE CARE HOMES (SOMERTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern

At the balance sheet date the company had net liabilities of £true416,020 (2021: £159,912). In accordance with their responsibilities as directors, the directors have considered the appropriateness of the going concern basis for the preparation of the financial statements. The financial statements have been prepared on the basis that the company is a going concern, and that it will be in a position to continue to trade and to meet its obligations for a period of at least twelve months from the date of the directors approval of these financial statements.

 

The directors have reviewed the results of the company during the period since the balance sheet date and consider that there have been no additional material post balance sheet events that would have affected the results and financial position at the balance sheet date.

 

The current group bank loan facilities are due to be repaid imminently as part of a consolidation of group finance facilities and the directors do not consider this to impair the company's ability to continue as a going concern. An experienced broker has been used as part of this refinance, with a strong expectation that the refinance shall shortly complete. However, alternative options are also available if the refinance does not proceed as expected.

 

The directors, being suitably knowledgeable and experienced, consider that the company will be able to continue in its operations for a period of at least twelve months from the date of the approval of these financial statements. In arriving at this opinion, the directors have considered the current economic climate, specific conditions affecting the industry and the availability of future loan and bank funding facilities.

With the support of the directors, group entities and the continued support of the parent company, The Stepping Stone Group Limited, the directors consider that the going concern basis is appropriate for the preparation of the financial statements. The directors have no reason to believe that this support will not continue and have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these financial statements. The Stepping Stone Group Limited has confirmed that it will continue to support the company for at least the next twelve months and repayment of the inter-company loan is not required to be repaid until the company has available funds to do so.

CLOSE CARE HOMES (SOMERTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 4 -
1.3
Reporting period

The financial statements are presented for the period from 30 June 2021 to 30 June 2022.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable and is shown net of VAT and other sales related taxes.

 

Sale of property

Revenue from the sale of property is recognised when the significant risks and rewards of ownership of the property have passed to the buyer, usually on legal exchange, and the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest income

Revenue is recognised as interest accrues using the effective interest rate method.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

1.7
Stocks

Work in progress is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the work in progress to their present location and condition.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
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.

CLOSE CARE HOMES (SOMERTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 5 -
1.9
Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

 

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

CLOSE CARE HOMES (SOMERTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 6 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11

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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The judgements and estimates having had the most significant effect on any amounts are as follows:

 

Work in Progress: The carrying value of work in progress is reviewed annually by the directors against the expected selling price less costs to complete and sell. Where any impairment is noted, this is recognised within cost of sales.

3
Employees

The average monthly number of persons (including directors) employed by the company during the period was:

2022
2021
Number
Number
Total
2
2

The only employees for the company were directors of the company.

CLOSE CARE HOMES (SOMERTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 7 -
4
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
75
-
0
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 30 June 2021
-
Additions
75
At 30 June 2022
75
Carrying amount
At 30 June 2022
75
At 29 June 2021
-
5
Subsidiaries

Details of the company's subsidiaries at 30 June 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Somerview Limited
Lime Court, Pathfields Business Park, South Molton, Devon, United Kingdom, EX35 3LH
Ordinary
100.00
CLOSE CARE HOMES (SOMERTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 8 -
6
Stocks
2022
2021
£
£
Stocks
1,645,000
1,614,959

Work in progress includes amounts of £876,580 (2021: £753,803) in relation to capitalised finance costs.

 

The property included in stock is secured against the bank borrowings of a group entity.

7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
10,727
5,875
8
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
18,958
-
0
Amounts owed to group undertakings
1,581,393
363,316
Corporation tax
6,576
5,433
Other creditors
465,022
412,132
2,071,949
780,881

Amounts owed to group undertakings are subject to an annual charge of interest 4% over bank base rate per annum with inter group loan agreements. All inter group loans are repayable on demand and shown within creditors due within one year.

9
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
-
0
1,000,000

 

10
Loans and overdrafts
2022
2021
£
£
Other loans
-
0
1,000,000
Payable after one year
-
0
1,000,000
CLOSE CARE HOMES (SOMERTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
10
Loans and overdrafts
(Continued)
- 9 -

Loan facilities were previously unsecured and interest charged at 12%.

11
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.

The senior statutory auditor was Claire Clift and the auditor was Azets Audit Services.
12
Financial commitments, guarantees and contingent liabilities

As at 30 June 2022 the company had total guarantees and commitments of £4,445,433 (2021: £4,983,554) in respect of group companies.

13
Parent company

The company's ultimate parent company is The Stepping Stone Group Limited, whose directors are J Y Bailey and Mrs A L Martin MBE. The address of the registered office of the parent company and from which copies of the accounts can be obtained is Lime Court, Pathfields Business Park, South Molton, Devon EX36 3LH. The principle place of business of the parent company is Sunindale, Hilliers Lane, Worth, Wells, Somerset BA5 1LP.

The company's ultimate controlling party is Mr J Y Bailey, a director of this company, who holds the majority of the issued share capital of The Stepping Stone Group Limited, being this company's parent company.

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