Company registration number 06456136 (England and Wales)
ADELAIDE HEALTHCARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ADELAIDE HEALTHCARE LIMITED
COMPANY INFORMATION
Directors
Mr A S Shookhye
Mrs M B Shookhye
Secretary
Mrs M B Shookhye
Company number
06456136
Registered office
13 Oathall Road
Haywards Heath
West Sussex
RH16 3EG
Auditor
Carpenter Box
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
ADELAIDE HEALTHCARE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
ADELAIDE HEALTHCARE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Fair review of the business

The principal activity of the company is that of the provision of care services providing a range of specialist nursing and care services to the elderly and to people with dementia. The company is registered for 96 residents operating across three sites, Adelaide House, Bletchingley and Wellington which has now traded for 20 months and has average occupancy rates of 97% in 2022.

 

All homes have made good progress in 2022, with improvements in the provisions of quality of care and a steady increase in occupancy following the impact of the COVID-19 pandemic and despite the economic pressures that all businesses are now facing.

 

Revenue in 2022 increased by 37.1% from £3.6m in 2021 to £4.9m in 2022 and underlying operating profit increased by 94% from £589k in 2021 to £1.1m in 2022, largely due to the impact of a successful 12 month trading period from Wellington.

 

Principal risks and uncertainties

COVID-19

We continue to take steps to manage the recovery from the pandemic, remaining vigilant to the continuing risks that COVID-19 presents to our residents and staff.

Key metrics associated with COVID-19 have been closely monitored such as,

 

The benefits of the COVID-19 vaccination program and annual booster have provided a level of assurance and protection and we find ourselves in a much stronger position to address any possible outbreaks that may lie ahead.

Occupancy risk

Lower than expected occupancy rates and a fall in bed rates, would cause a drop in revenue and hence resultant pressure on cash flow. The company continues to manage a number of block bed contracts with local authorities, short and long term that help mitigate this risk. Historically we have a track record of high occupancy, built upon our reputation for the provision of excellent nursing care, together with a strong and flexible management team.

 

The company mitigates this risk by developing a sales and marketing strategy that ensures adequate management time and resources are devoted to its implementation with a continued focus in 2022 to building a stronger online presence and paying attention to consumer needs their expectations and changes in regulatorily requirements.

 

Wage Rate

Government policy in setting the rate of the National Living Wage (“NLW”) will have a significant impact on labour costs for the company and our ability to recover these costs through fee increases is uncertain. Failure to recover such costs would have a negative impact on margins. In providing a high level of care we mitigate this risk by carefully controlling costs, negotiating fees and regularly reviewing our fees in light of market conditions.

 

ADELAIDE HEALTHCARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

Legislative & regulatory risk

The company operates in a highly regulated environment and is subject to licensing and inspection from many third parties that includes the Care Quality Commission (CQC) and local authorities. There is continual pressure on achieving a high standard of regulatory compliance rating, failure of which would curtail admission, impacting on the company’s revenue and profitability.

In recognising this obligation and requirement to achieve the highest CQC rating, we are confident that our highly trained, experienced management team have the necessary skills and oversight to ensure strict implementation of our internal processes, procedures and controls that ensures ongoing compliance throughout all the changes in the regulatory landscape.

Key Performance Indicators

The company tracks its performance against a number of key performance indicators which are aligned to our strategic vision. The key drivers are occupancy rates, average weekly fees, payroll costs, non-payroll costs and profit margins (EBITDA). As part of our internal weekly, monthly, and annual reporting we compare our results to national standards and find that we are operating within the industry norm.

 

Prospect for 2023

Although we expect further revenue growth in 2023, we recognise that COVID-19 Infection rates remains a risk. We are currently experiencing economic uncertainty  from increases in fuel, insurance, and wage rates, therefore we will continue to closely monitor all costs  and apply measures to help with the challenges that lie ahead. Our strategic objectives remain unchanged, we will continue to prioritise the delivery of good quality care to all our residents to a standard we are proud of.

On behalf of the board

Mr A S Shookhye
Director
28 November 2023
ADELAIDE HEALTHCARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of care services. These include a range of nursing and residential services to the elderly and to people with dementia.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A S Shookhye
Mrs M B Shookhye
Financial instruments

Details of principal risks, including financial instrument risks, are detailed in the Strategic Report.

Future developments

The directors have disclosed any future developments in the Strategic Report.

Auditor

The auditor, Carpenter Box, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr A S Shookhye
Director
28 November 2023
ADELAIDE HEALTHCARE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

The directors are responsible 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ADELAIDE HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ADELAIDE HEALTHCARE LIMITED
- 5 -
Opinion

We have audited the financial statements of Adelaide Healthcare Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 directors' 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ADELAIDE HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADELAIDE HEALTHCARE LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the 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 or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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's 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and

non-compliance with laws and regulations, our procedures included the following:

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law, the valuation of and compliance with the UK Companies Act.

ADELAIDE HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADELAIDE HEALTHCARE LIMITED
- 7 -

In addition to the above, our procedures to respond to risks identified included the following:

 

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

Alex Chidwick FCCA (Senior Statutory Auditor)
For and on behalf of Carpenter Box
30 November 2023
Chartered Accountants
Statutory Auditor
Worthing
Carpenter Box is a trading name of Carpenter Box Limited
ADELAIDE HEALTHCARE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
£
£
Revenue
3
4,901,035
3,573,912
Cost of sales
(3,082,540)
(2,385,093)
Gross profit
1,818,495
1,188,819
Administrative expenses
(958,397)
(780,947)
Other operating income
283,384
181,870
Operating profit
4
1,143,482
589,742
Finance costs
(1,375)
(839)
Profit before taxation
1,142,107
588,903
Tax on profit
6
(164,000)
(40,200)
Profit for the financial year
978,107
548,703
Other comprehensive income
Revaluation of property, plant and equipment
-
0
698,536
Tax relating to other comprehensive income
(200,500)
(126,300)
Total comprehensive income for the year
777,607
1,120,939

The income statement has been prepared on the basis that all operations are continuing operations.

ADELAIDE HEALTHCARE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Non-current assets
Goodwill
7
105,000
122,500
Property, plant and equipment
8
14,340,135
14,134,604
14,445,135
14,257,104
Current assets
Inventories
9
5,118
5,631
Trade and other receivables
10
454,128
1,464,106
Cash and cash equivalents
918,669
447,192
1,377,915
1,916,929
Current liabilities
11
(1,362,255)
(1,719,394)
Net current assets
15,660
197,535
Total assets less current liabilities
14,460,795
14,454,639
Non-current liabilities
13
(831,805)
(1,967,756)
Provisions for liabilities
Deferred tax liability
15
1,333,700
969,200
(1,333,700)
(969,200)
Net assets
12,295,290
11,517,683
Equity
Called up share capital
17
2
2
Revaluation reserve
3,191,301
3,391,801
Retained earnings
9,103,987
8,125,880
Total equity
12,295,290
11,517,683

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 28 November 2023 and are signed on its behalf by:
Mr A S Shookhye
Director
Company registration number 06456136 (England and Wales)
ADELAIDE HEALTHCARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Revaluation reserve
Retained earnings
Total
£
£
£
£
Balance at 1 January 2021
2
2,819,565
7,577,177
10,396,744
Year ended 31 December 2021:
Profit
-
-
548,703
548,703
Other comprehensive income:
Revaluation of property, plant and equipment
-
698,536
-
698,536
Tax relating to other comprehensive income
-
(126,300)
-
0
(126,300)
Total comprehensive income
-
572,236
548,703
1,120,939
Balance at 31 December 2021
2
3,391,801
8,125,880
11,517,683
Year ended 31 December 2022:
Profit
-
-
978,107
978,107
Other comprehensive income:
Tax relating to other comprehensive income
-
(200,500)
-
0
(200,500)
Total comprehensive income
-
(200,500)
978,107
777,607
Balance at 31 December 2022
2
3,191,301
9,103,987
12,295,290
ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information

Adelaide Healthcare Limited is a private company limited by shares incorporated in England and Wales. The registered office is 13 Oathall Road, Haywards Heath, West Sussex, RH16 3EG.

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.

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 at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, is shown net of VAT and on an accruals basis.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Held at fair value
Plant and equipment
15% diminishing balance
Fixtures and fittings
15% diminishing balance
Motor vehicles
25% straight line
ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

 

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluations are made with sufficient regularity to ensure that the carrying amount in the financial statements does not differ materially from that which would be determined using the fair value at the end of the reporting period.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

1.6
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.

1.8
Cash and cash equivalents

Cash and cash equivalents include deposits held at call with banks.

1.9
Financial assets and liabilities

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position 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.

 

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans from related parties.

 

Debt instruments like loans and other accounts receivable and payable are initially measured at the transaction price (including transaction costs) and subsequently at amortised cost using the effective interest method; debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
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.

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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
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.

Key sources of estimation uncertainty
Fair value of property, plant and equipment

The director's valuation relating to the fair value of property, plant and equipment is based on their use of the professional valuation carried out on behalf of the company's lenders in May 2022 at £14.1million taking into account any additions, disposals and depreciation since this date. The valuation was carried out in accordance with The Royal Institution of Chartered Surveyors, undertaken by BNP Paribas, an independent firm of Chartered Surveyors with a recognised and relevant professional qualification and with recent experience in the location and category of the property, plant and equipment being valued. The valuations were both made on the basis of existing use as a fully-equipped operational entity having regard to trading potential in line with Section 27 of FRS 102.

3
Revenue

The company operates in one principal activity, that of the rendering of services, which is wholly undertaken in the United Kingdom. Revenue is therefore made up 100% by the fees in relation to the supply of these services.

4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(80,640)
(181,870)
Fees payable to the company's auditor for the audit of the company's financial statements
12,500
12,000
Depreciation of owned property, plant and equipment
54,034
37,200
Loss on disposal of property, plant and equipment
529
-
Amortisation of intangible assets
17,500
17,500
Operating lease charges
24,447
21,062
ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
5
Employees

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

2022
2021
Number
Number
Nurses and carers
63
55
Household
22
21
Management and administration
15
10
Total
100
86

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
2,781,843
2,202,240
Social security costs
241,287
184,232
Pension costs
59,653
44,337
3,082,783
2,430,809
6
Taxation
2022
2021
£
£
Deferred tax
Origination and reversal of timing differences
44,400
40,200
Changes in tax rates
119,600
-
0
Total deferred tax
164,000
40,200
ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Taxation
(Continued)
- 16 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
1,142,107
588,903
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
217,000
111,892
Tax effect of expenses that are not deductible in determining taxable profit
-
0
708
Tax effect of utilisation of tax losses not previously recognised
-
0
(67,829)
Group relief
(142,581)
44,568
Permanent capital allowances in excess of depreciation
(4,744)
(51,100)
Depreciation on assets not qualifying for tax allowances
-
0
10
Other non-reversing timing differences
(975)
1,951
Deferred tax adjustments in respect of prior years
(24,300)
-
0
Effect of change in deferred tax rate
119,600
-
0
Taxation charge for the year
164,000
40,200

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2022
2021
£
£
Deferred tax arising on:
Revaluation of property
200,500
126,300
7
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
350,000
Amortisation and impairment
At 1 January 2022
227,500
Amortisation charged for the year
17,500
At 31 December 2022
245,000
Carrying amount
At 31 December 2022
105,000
At 31 December 2021
122,500
ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
8
Property, plant and equipment
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2022
13,840,144
96,555
353,268
38,388
14,328,355
Additions
176,877
41,026
42,191
-
0
260,094
Disposals
-
0
-
0
(871)
-
0
(871)
At 31 December 2022
14,017,021
137,581
394,588
38,388
14,587,578
Depreciation and impairment
At 1 January 2022
-
0
45,171
146,980
1,600
193,751
Depreciation charged in the year
-
0
9,693
34,744
9,597
54,034
Eliminated in respect of disposals
-
0
-
0
(342)
-
0
(342)
At 31 December 2022
-
0
54,864
181,382
11,197
247,443
Carrying amount
At 31 December 2022
14,017,021
82,717
213,206
27,191
14,340,135
At 31 December 2021
13,840,144
51,384
206,288
36,788
14,134,604

There are fixed and floating charges held over the freehold land and buildings by the group's bankers.

The directors have valued property, plant and equipment as disclosed in note 2.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2022
2021
£
£
Cost
9,990,320
9,813,443
9
Inventories
2022
2021
£
£
Finished goods and goods for resale
5,118
5,631
ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
10
Trade and other receivables
2022
2021
Amounts falling due within one year:
£
£
Trade receivables
191,862
281,521
Amounts owed by group undertakings
-
0
867,284
Other receivables
226,004
277,259
Prepayments and accrued income
36,262
38,042
454,128
1,464,106
11
Current liabilities
2022
2021
Notes
£
£
Obligations under finance leases
14
7,407
5,608
Trade payables
118,492
100,102
Amounts owed to group undertakings
618,826
1,098,852
Taxation and social security
48,803
59,734
Other payables
269,076
162,423
Accruals
299,651
292,675
1,362,255
1,719,394
12
Borrowings
2022
2021
£
£
Loans from group undertakings
750,000
1,878,544
Payable after one year
750,000
1,878,544
13
Non-current liabilities
2022
2021
Notes
£
£
Obligations under finance leases
14
21,439
28,846
Other borrowings
12
750,000
1,878,544
Deferred income
60,366
60,366
831,805
1,967,756
ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
14
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
7,407
5,608
In two to five years
21,439
28,846
28,846
34,454

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is four years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. These liabilities are secured on the liabilities they relate to.

15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
498,300
334,300
Revaluations
835,400
634,900
1,333,700
969,200
2022
Movements in the year:
£
Liability at 1 January 2022
969,200
Charge to profit or loss
44,400
Charge to other comprehensive income
200,500
Effect of change in tax rate - profit or loss
119,600
Liability at 31 December 2022
1,333,700
16
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
59,653
44,337

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

ADELAIDE HEALTHCARE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
17
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2

All shares carry equal voting rights, equal rights to a dividend entitlement, equal rights to a distribution on winding up and there is no likelihood of redemption.

18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
5,142
9,418
Between two and five years
3,830
5,765
8,972
15,183
19
Financial commitments, guarantees and contingent liabilities

There is a cross guarantee and debentures in place between the company, Ashton Healthcare Group Limited, Birchgrove Healthcare (Sussex) Limited and Grove Park Healthcare Limited dated 28 October 2022. The extent of the contingent liability at the year end amounted to £23,200,000 (2021 - £Nil).

20
Related party transactions

At the previous year-end a balance totaling £133,038, included within other receivables, was due from two connected companies under common ownership. During the prior year, recharges totaling £21,380 were made to these companies.

 

During the current year, following a group reconstruction, these companies are now 100% owned subsidiaries of the same group and therefore no disclosure of transactions or balances with them is required.

21
Controlling party

The immediate and ultimate parent company is Ashton Healthcare Group Limited, a company controlled by Mr A S and Mrs M B Shookhye.

 

Ashton Healthcare Group Limited prepares consolidated financial statements and copies can be obtained from Companies House. The registered office of Ashton Healthcare Group Limited is 13 Oathall Road, Haywards Heath, West Sussex, RH16 3EG.

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