Company registration number 05880983 (England and Wales)
HERMITAGE HOUSE CARE HOME LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
HERMITAGE HOUSE CARE HOME LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
HERMITAGE HOUSE CARE HOME LTD
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
48,748
64,998
Tangible assets
4
499,349
550,928
Investments
5
750,000
1,298,097
615,926
Current assets
Debtors
6
29,496
53,269
Cash at bank and in hand
128,804
148,479
158,300
201,748
Creditors: amounts falling due within one year
7
(1,201,599)
(608,797)
Net current liabilities
(1,043,299)
(407,049)
Total assets less current liabilities
254,798
208,877
Creditors: amounts falling due after more than one year
8
(22,242)
(32,890)
Net assets
232,556
175,987
Capital and reserves
Called up share capital
9
22
22
Profit and loss reserves
232,534
175,965
Total equity
232,556
175,987
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
HERMITAGE HOUSE CARE HOME LTD
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 16 February 2024 and are signed on its behalf by:
Mr S Patel
Director
Company Registration No. 05880983
HERMITAGE HOUSE CARE HOME LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
1
Accounting policies
Company information
Hermitage House Care Home Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Innovation Centre, Millennium Road, Skipton, North Yorkshire, BD23 2TZ.
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. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business.
1.3
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.
1.4
Tangible fixed assets
Tangible fixed assets 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
5% Straight Line
Fixtures and fittings
15% Reducing Balance
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.
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.
HERMITAGE HOUSE CARE HOME LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 4 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed 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 (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
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.
1.8
Financial instruments
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 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.
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.
1.9
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.
1.10
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.
HERMITAGE HOUSE CARE HOME LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
43
42
HERMITAGE HOUSE CARE HOME LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 6 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2022 and 31 July 2023
325,000
Amortisation and impairment
At 1 August 2022
260,002
Amortisation charged for the year
16,250
At 31 July 2023
276,252
Carrying amount
At 31 July 2023
48,748
At 31 July 2022
64,998
4
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 August 2022
891,279
104,576
995,855
Transfers
(450,000)
450,000
At 31 July 2023
441,279
554,576
995,855
Depreciation and impairment
At 1 August 2022
353,153
91,774
444,927
Depreciation charged in the year
44,564
7,015
51,579
At 31 July 2023
397,717
98,789
496,506
Carrying amount
At 31 July 2023
43,562
455,787
499,349
At 31 July 2022
538,126
12,802
550,928
5
Fixed asset investments
2023
2022
£
£
Other investments other than loans
750,000
HERMITAGE HOUSE CARE HOME LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
5
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Other
£
Cost or valuation
At 1 August 2022
-
Additions
750,000
At 31 July 2023
750,000
Carrying amount
At 31 July 2023
750,000
At 31 July 2022
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
13,442
Other debtors
29,496
39,827
29,496
53,269
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Trade creditors
2,474
11
Corporation tax
594
55,541
Other taxation and social security
8,078
11,002
Other creditors
1,180,453
532,243
1,201,599
608,797
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
22,242
32,890
The loan included in creditors is subject to a UK Government guarantee. The facility is provided through the Bounce Back Loan Scheme (BBLS), managed by the British Business Bank on behalf of and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy. The BBLS guarantee is provided to the lender.
HERMITAGE HOUSE CARE HOME LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
20
20
20
20
of £1 each
2
2
2
2
22
22
22
22
The A Ordinary Shares shall have attached to them full voting and capital distribution (including on winding up) rights, they shall have the right to a dividend as declared for that class of Shares but so that all classes of Ordinary Shares shall not rank pari passu for dividend entitlement purposes.
The B Ordinary Shares shall have attached to them full capital distribution rights (including on winding up), the right to a dividend as declared for that class of Shares but so that all classes of Ordinary Shares shall not rank pari passu for dividend entitlement purposes.
10
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loan account
-
39,827
73,274
(750,000)
(636,899)
39,827
73,274
(750,000)
(636,899)
11
Parent company
The parent company of Hermitage House Care Home Limited is TLC Life Limited and its registered office is 1 Brassey Road, Old Potts Way, Shrewsbury, SY3 7FA.