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REGISTERED NUMBER: 03275554 (England and Wales)










EXTEL LIMITED
T/A
CARE THROUGH THE MILLENNIUM

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023






EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Profit and Loss Account 11

Other Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Cash Flow Statement 16

Notes to the Financial Statements 17


EXTEL LIMITED
T/A CARE THROUGH THE MILLENNIUM

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: Mr C M Higgins
Mrs S J Higgins
Mr T Brooks
Mrs J Nash



SECRETARY: Mrs S J Higgins



REGISTERED OFFICE: Primrose Hill Farm
Meadowsweet Avenue
Kings Norton
Birmingham
West Midlands
B38 9QW



REGISTERED NUMBER: 03275554 (England and Wales)



SENIOR STATUTORY AUDITOR: Harendra Kishorlal Shah (FCCA)



AUDITORS: Shah & Co (Accountants) Ltd
Chartered Certified Accountants
& Statutory Auditors
Cash's Business Centre
1st Floor
228 Widdrington Road
Coventry
West Midlands
CV1 4PB

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their strategic report for the year ended 31 March 2023.


EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

REVIEW OF BUSINESS
The objective of the company is to provide high quality care and support services to people with challenging behaviour, both within its residential care homes and those under the 'Supported Living Service', in Birmingham and neighbouring areas. This is achieved through the implementation of robust company policies and procedures, employment of qualified and experienced staff in key positions of care, provision of ongoing training and support to staff and, as a registered care provider with the Care Quality Commission (CQC), compliance with regulatory requirements.

On 10 July 2015, the company changed from being a family owned business in the hands of two shareholders, to becoming a majority employee owned company. However, on 21st December 2022, there was a change of ownership from being a majority employee owned company and back to a family owned business with the two shareholders. Despite the structural change, there was a complete continuity of business activity with no interruption.

The company generated turnover for the financial year of £15.199m (2022: £14.514m), an increase of 4.72% and total comprehensive income for the financial year of £1.976m (2021: £3.225m). At the balance sheet date, net assets were £9.484m (2022: £5.992m). At the start of the financial year, average occupancy for residential care was 93% which decreased to 91% by the end of the financial year. Nearly all the company's turnover is derived from UK Government funded Local Authorities and Clinical Commissioning Groups (CCGs). The company continued to provide quality care and support to its service users and funding was adequate to meet their need despite the ongoing economic challenges such as cost of living crisis and inflation.

The company was able to access financial support provided by the UK Government during the year in the form of Government apprenticeship training schemes to cover overhead expenditure relating to staff training.

The company is well placed to continue its operational activities through this period with a healthy cash balance. The directors are confident that the company is in a good position to continue performing well by increasing its occupancy levels and meet its debts as and when they fall due.

BUSINESS STRATEGY
The company's success to date is largely the result of providing high quality care and support services and attracting new service users to maximise occupancy levels within its residential care homes, whilst maintaining compliance with regulatory requirements.

Investment in the Supported Living Service continues to remain a key strategic development for the company which will continue to improve its profitability and position.

The company continually attracts expressions of interest from friends and families of potential service users including referrals from Local Authorities and CCGs.

The directors will also consider diversification into new relevant markets based on geography and type of service to compliment the existing services provided.

KEY PERFORMANCE INDICATORS
The directors consider the most appropriate key performance indicators to be Turnover, Gross Profit, Operating Profit, Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) and liquidity. The results of these key performance indicators for the year were as follows:
2023 2022
£    £   
Turnover 15.199m 14.514m
Gross profit 5.492m 6.556m
Operating profit 2.699m 3.893m
EBITDA 2.891m 4.054m
Cash at bank and in hand 5.538m 4.084m

Gross profit margin for the year was 36.14% (2022: 45.17%).

Operating profit margin for the year was 17.76% (2022: 26.82%).


EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

PRINCIPAL RISKS AND UNCERTAINTIES
There are various risks and uncertainties affecting the business some of which are inherent to the industry in which the company operates such as economic instability and healthcare and social care challenges.There are increased pressures in the healthcare system and funding shortages however, the directors believe that despite these significant challenges from the wider economy, the company is well placed to maintain the high quality care and support it provides to its service users and therefore attract expressions of interest from various sources and maximise occupancy levels. The directors have carried out their risk assessments and have taken all reasonable steps to mitigate those risks. The specialist nature of the care homes market in the UK and increasing external regulation continues to benefit quality care providers such as Extel Limited.

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprises trade and other debtors, trade creditors, cash deposits and bank borrowing. The company manages its risks in relation to these as follows:

Liquidity risk
The company manages its cash and borrowing requirements so as to maximise interest income and minimise interest expense whilst ensuring that the company has sufficient liquid resources to meet the operating needs of the business.

Credit risk
The company's customers are predominantly public sector councils however there are some private customers who supplement public sector funding. Both are provided with credit and are encouraged to settle their invoices within 28 days, from the inception of raising fee invoices. Monies due are monitored on a on-going basis and chased as part of the company credit control procedures. There are instances when cost of care package for individual service user is under review with the customer and invoices are continually raised at the current rate for payment which are put on hold until a new cost is agreed. Although the company continues to chase payment for such invoices the directors acknowledge there can be a delay in payment. Consequently, debtor days for the year ended 31 March 2023 was 37 days (2022: 38 days).

Price risk
The company conducts an initial assessment of all potential service users to assess their individual needs prior to admission. Bespoke care package is based around a person centred approach. Therefore, the company does not have material exposure to price risks.

Regulatory risk
The company is a registered care service provider and therefore regulated by the Care Quality Commission (CQC), the independent regulator of health and social care in England. The company ensures the provision of high quality care and support to its service users at all times. Any serious breach of regulatory requirements could result in public censure, penalties and/or removal of its registration.

Internal control risk
The company employs external consultant to review the system of internal controls both financial and non-financial. These include controls designated to ensure proper accounting records are maintained.

FUTURE DEVELOPMENTS
The company remains fortunate not to have been significantly affected, financially or otherwise by the ongoing economic instability and healthcare and social care challenges, for which it is able to access government financial support as and when required. By keeping the standard of the care homes at a high level together with providing quality care and support service the business will continue to attract new service users and maximise occupancy levels.

ON BEHALF OF THE BOARD:





Mr C M Higgins - Director


20 March 2024

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the provision of high quality care and support services to people with challenging behaviour, both within in its residential care homes and those under the supported living service in Birmingham and neighbouring areas.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2023.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr C M Higgins
Mrs S J Higgins
Mr T Brooks
Mrs J Nash

ENGAGEMENT WITH EMPLOYEES
During the financial year the company continued with its arrangements aimed at:

- providing employees systematically with information on matters of concern to them as employees;
- consulting employees or their representatives on a regular basis so that their views can be taken into account in
making decisions which affect their interests;
- encouraging the involvement of employees in the company's performance through employee benefits or by some
other means; and
- achieving a common awareness on the part of all employees of the financial and economic factors affecting the
performance of the company;

DISABLED PERSONS
Full and fair consideration is given to applications for employment from disabled persons and to continuing the employment of those who become disabled while employed. The policy is to give equal opportunity for training, career development and promotion.

DISCLOSURE IN THE STRATEGIC REPORT
In accordance with Section 414C(11) of the Companies Act 2006, the Directors have set out certain information in the Strategic Report which would otherwise be required by Schedule 7 to be contained in the Report of the Directors. It has done so in respect of principal risks and uncertainties, financial instruments and future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Shah & Co (Accountants) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr C M Higgins - Director


20 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EXTEL LIMITED

Opinion
We have audited the financial statements of Extel Limited (the 'company') for the year ended 31 March 2023 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EXTEL LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages five and six, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EXTEL LIMITED


Auditors' 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 a Report of the Auditors 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. However, the primary responsibility for the prevention and detection of fraud and other irregularities rests with both management and those charged with governance of the company.

Based on our understanding of the company and industry in which it operates, we identified that the principal risks of
non-compliance with laws and regulations relate to the Care Quality Commission regulations, and we considered the
extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements of the company and determined that the most significant are those that relate to the United Kingdom Generally Accepted Accounting Practice, Companies Act 2006 and UK corporate taxation laws.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements
(including the risk of override of controls) and determined that the principal risks were related to revenue recognition,
and posting inappropriate journal entries to manipulate financial results. Audit procedures performed included:

- Discussions with management and those charged with governance including consideration of known or suspected
instances of non-compliance with laws and regulation and fraud;
- Review of correspondence between the company and regulator in relation to compliance with laws and regulation;
- Review of correspondence between the company and tax authorities;
- Carry out testing, on a sample basis, on the company's main income and expenditure cycle and consider the impact
on our assessment of irregularities;
- Identifying and understanding related party relationships and transactions including rationale for any significant
transactions outside the normal course of business;
- Identifying and testing of significant journal entries throughout the year and at the year-end;
- Review of financial statement disclosures and agreeing these to underlying supporting evidence for compliance
with applicable laws and regulations;

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EXTEL LIMITED


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 a Report of the Auditors 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.




Harendra Kishorlal Shah (FCCA) (Senior Statutory Auditor)
for and on behalf of Shah & Co (Accountants) Ltd
Chartered Certified Accountants
& Statutory Auditors
Cash's Business Centre
1st Floor
228 Widdrington Road
Coventry
West Midlands
CV1 4PB

20 March 2024

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
Notes £    £   

TURNOVER 3 15,198,807 14,513,833

Cost of sales 9,706,506 7,957,966
GROSS PROFIT 5,492,301 6,555,867

Administrative expenses 2,916,088 2,994,430
2,576,213 3,561,437

Other operating income 4 122,868 331,400
OPERATING PROFIT 2,699,081 3,892,837

Profit/loss on sale of tangibl
e fixed assets 6 3,461 -
2,702,542 3,892,837

Interest receivable and similar income 17,599 267
2,720,141 3,893,104

Interest payable and similar expenses 7 264,640 170,312
PROFIT BEFORE TAXATION 8 2,455,501 3,722,792

Tax on profit 9 479,911 498,043
PROFIT FOR THE FINANCIAL YEAR 1,975,590 3,224,749

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
Notes £    £   

PROFIT FOR THE YEAR 1,975,590 3,224,749


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,975,590

3,224,749

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

BALANCE SHEET
31 MARCH 2023

31.3.23 31.3.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 18,886 -
Tangible assets 11 5,308,213 5,089,510
5,327,099 5,089,510

CURRENT ASSETS
Debtors 12 4,944,358 2,092,052
Cash at bank and in hand 13 5,537,974 4,083,713
10,482,332 6,175,765
CREDITORS
Amounts falling due within one year 14 3,507,144 2,177,773
NET CURRENT ASSETS 6,975,188 3,997,992
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,302,287

9,087,502

CREDITORS
Amounts falling due after more than one
year

15

(2,675,695

)

(2,957,049

)

PROVISIONS FOR LIABILITIES 19 (142,266 ) (138,082 )
NET ASSETS 9,484,326 5,992,371

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 21 9,484,226 5,992,271
SHAREHOLDERS' FUNDS 9,484,326 5,992,371

The financial statements were approved by the Board of Directors and authorised for issue on 20 March 2024 and were signed on its behalf by:




Mr C M Higgins - Director



Mr T Brooks - Director


EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 April 2021 100 3,175,091 3,175,191

Changes in equity
Total comprehensive income - 3,224,749 3,224,749
Gifts to Employee Ownership
Trust - (407,569 ) (407,569 )
Balance at 31 March 2022 100 5,992,271 5,992,371

Changes in equity
Total comprehensive income - 1,975,590 1,975,590
Gifts to Employee Ownership
Trust - 1,516,365 1,516,365
Balance at 31 March 2023 100 9,484,226 9,484,326

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,148,737 3,059,525
Interest paid (264,640 ) (170,312 )
Tax paid (400,551 ) (596,585 )
Government grants 116,363 323,295
Net cash from operating activities 3,599,909 2,615,923

Cash flows from investing activities
Purchase of intangible fixed assets (23,609 ) -
Purchase of tangible fixed assets (383,957 ) (39,856 )
Sale of tangible fixed assets 3,539 -
Interest received 17,599 267
Net cash from investing activities (386,428 ) (39,589 )

Cash flows from financing activities
Bank loan capital repayments (158,145 ) (205,847 )
Amount introduced by directors 11,799 13,615
Amount withdrawn by directors (3,129,239 ) (5,128 )
Gifts to Employee Ownership Trust paid 1,516,365 (407,571 )
Net cash from financing activities (1,759,220 ) (604,931 )

Increase in cash and cash equivalents 1,454,261 1,971,403
Cash and cash equivalents at beginning of
year

2

4,083,713

2,112,310

Cash and cash equivalents at end of year 2 5,537,974 4,083,713

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.3.23 31.3.22
£    £   
Profit before taxation 2,455,501 3,722,792
Depreciation charges 166,436 161,263
Government grants (116,363 ) (323,295 )
Finance costs 264,640 170,312
Finance income (17,599 ) (267 )
2,752,615 3,730,805
Decrease/(increase) in trade and other debtors 183,281 (484,878 )
Increase/(decrease) in trade and other creditors 1,212,841 (186,402 )
Cash generated from operations 4,148,737 3,059,525

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023
31/3/23 1/4/22
£    £   
Cash and cash equivalents 5,537,974 4,083,713
Year ended 31 March 2022
31/3/22 1/4/21
£    £   
Cash and cash equivalents 4,083,713 2,112,310


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/22 Cash flow At 31/3/23
£    £    £   
Net cash
Cash at bank and in hand 4,083,713 1,454,261 5,537,974
4,083,713 1,454,261 5,537,974
Debt
Debts falling due within 1 year (170,906 ) (123,209 ) (294,115 )
Debts falling due after 1 year (2,957,049 ) 281,354 (2,675,695 )
(3,127,955 ) 158,145 (2,969,810 )
Total 955,758 1,612,406 2,568,164

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1. STATUTORY INFORMATION

Extel Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
At the balance sheet date, the company is showing net current assets of £3,997,992 (2021: £1,265,790) and a net assets of £5,992,391 (2021: £3,175,191). On 11 May 2021, the company successfully secured a £3,333,000 funding for the re-finance of its bank loan with HSBC Bank Plc. On the same date, the company also entered into a new cross guarantee on the £2,841,000 bank borrowing of CTTM Trustees Limited with the same lender. Both loans are on a four year term.

The directors continually monitor the impact of Coronavirus pandemic on the company with information available to it and do not believe it will affect the company's ability to continue its operations for the foreseeable future. The company has utilised government support where applicable and appropriate.

The directors have reviewed the company's financial forecast and they show that the company has adequate cash available during the foreseeable future.

At the date of approving these financial statements, the directors are satisfied that the company will continue its activities for a period of at least twelve months from the date of signing these financial statements. On that basis, the directors have prepared these financial statements on a going concern basis.

Turnover
Turnover represents fees receivable in respect of residential care and supported living services provided to service users.

Turnover is generally recognised to the extent that performance occurs and is measured at fair value of the fees receivable. Fees not invoiced to customers by the balance sheet date are included in debtors as accrued income. Fees invoiced to customers in advance of a future period is included in creditors as deferred income.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of nil years.

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold land and buildings - 2% on cost
Improvements to property - 2% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 20% on reducing balance

All fixed assets are stated at cost. Each purchase is considered on its merits as to whether it is a fixed asset irrespective of value.

Freehold land is not depreciated. Freehold buildings represents residential care homes owned by the company and occupied by service users.

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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Short term debtors and creditors
Short term debtors and creditors with no stated interest rate or that are receivable or payable within one year are stated at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. Loans and borrowings that are receivable within one year are not discounted. If an arrangement constitutes a finance transaction it is measured at present value of future payments discounted at a market rate of interest for a similar loan.

Employee benefits
The cost of short term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Employee ownership trust
Where payments made to the Care Through The Millennium Employee Ownership Trust (the 'Trust') results in no future economic benefits to the company and where the company does not have control over the right or other access to future economic benefit it is expected to receive, payments are expensed in the profit and loss account.

Where the company distributes its shares to the Trust and in the opinion of the directors de-facto control over the Trust does not exist, the assets and liabilities of the Trust is not recognised in the company's balance sheet in accordance with the UK GAAP.

Where in the opinion of the directors, de-facto control exists, the company shall account for the assets and liabilities of the Trust in its own financial statements as follows:

i. Consideration paid for the shares shall be shown as a deduction from shareholders' funds until the equity
instruments vest unconditionally with the employees;

ii. Other assets and liabilities of the Trust shall be recognised as being assets and liabilities of the company;

iii. No gain or loss shall be recognised in the profit and loss on the purchase, sale, issue or cancellation of
the company's own shares;

iv. Finance costs and any administrative expenses shall be recognised on an accruals basis;

v. Dividend income arising from the company's own shares shall be excluded from the profit and loss and
deducted from the aggregate of dividends paid;

The directors are of the opinion that de-facto control of the Trust does not exist and therefore have excluded the assets and liabilities of the Trust from the financial statements.

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Judgements and key sources of estimation uncertainty
Preparation of the financial statements requires directors to make judgements, estimates and assumptions that affect the amounts reported of assets and liabilities at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

- Revenue recognition
In determining revenue recognition where there is a change in cost of care package in respect of individual service user, the customer may give due regard to the fee applied from an earlier date to the date of re-negotiating a new fee. In such cases, the directors firmly believe a retrospective change in fee should be recognised in the period in which negotiations have successfully concluded and new fee subsequently applied.

- Finance lease or operating lease
In determining whether leases entered into by the company, either as a lessor or lessee, are operating or finance leases, the directors have assessed whether the risks and rewards of ownership have been transferred from the lessor to the lessee on an individual lease by lease basis.

- Impairment of tangible fixed assets
In determining whether there are indicators of impairment of the company's tangible fixed assets, factors taken into consideration by the directors include the economic value in use and whether there are any expected future cash flows to be generated from such assets.

The following are key sources of estimation uncertainty:

- Tangible fixed assets
Depreciation is provided in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. The actual lives of these assets are reviewed annually and may vary depending on a number of factors. In assessing asset lives, factors such as life cycles and maintenance programmes are taken into account. Residual value assessment considers issues such as the remaining life of the assets and projected disposal values.

- Trade debtors
Trade debtors is reviewed annually at the balance sheet date for recoverability of fees for the provision of service. If there is any evidence of impairment, the carrying value is reduced to its recoverable amount. The impairment loss is recognised immediately in the profit and loss account.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company which is wholly undertaken in the United Kingdom.

4. OTHER OPERATING INCOME
31.3.23 31.3.22
£    £   
Management service 6,505 8,105
Government grants 116,363 323,295
122,868 331,400

Included within Government grants is Government apprenticeship training schemes for employees totalling to £79,862. There were no Coronavirus related funding received under the Adult Social Care Infection Control Fund, Workforce Capacity Fund and Coronavirus Job Retention Scheme (2022: £227,459).

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

5. EMPLOYEES AND DIRECTORS
31.3.23 31.3.22
£    £   
Wages and salaries 8,245,663 6,866,152
Social security costs 658,378 575,528
Other pension costs 143,489 133,124
9,047,530 7,574,804

The average number of employees during the year was as follows:
31.3.23 31.3.22

Directors 3 4
Management and administration 9 12
Direct care staff 304 291
316 307

31.3.23 31.3.22
£    £   
Directors' remuneration 345,946 406,339
Directors' pension contributions to money purchase schemes 2,642 2,642

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
31.3.23 31.3.22
£    £   
Emoluments etc 155,949 145,868

6. EXCEPTIONAL ITEMS
31.3.23 31.3.22
£    £   
Profit/loss on sale of tangibl
e fixed assets 3,461 -

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.23 31.3.22
£    £   
Bank loan interest 257,221 153,293
Interest payable 7,419 17,019
264,640 170,312

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

8. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

31.3.23 31.3.22
£    £   
Other operating leases 15,170 17,946
Depreciation - owned assets 166,438 161,261
Auditors' remuneration 10,000 10,000
Government grants (see note 4) (123,363 ) (323,295 )

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.3.23 31.3.22
£    £   
Current tax:
UK corporation tax 475,727 498,579

Deferred tax 4,184 (536 )
Tax on profit 479,911 498,043

UK corporation tax was charged at 19%) in 2022.

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.23 31.3.22
£    £   
Profit before tax 2,455,501 3,722,792
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

466,545

707,330

Effects of:
Depreciation in excess of capital allowances 9,182 16,626
Research and Development - (225,377 )
respect of previous period
Deferred taxation 4,184 (536 )
Total tax charge 479,911 498,043

Factors that may affect future tax charges
On 3 March 2021, the Chancellor of the Exchequer announced that the corporation tax rate would increase to a maximum of 25% from 1 April 2023.

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

10. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
Additions 23,609
At 31 March 2023 23,609
AMORTISATION
Reclassification/transfer 4,723
At 31 March 2023 4,723
NET BOOK VALUE
At 31 March 2023 18,886

11. TANGIBLE FIXED ASSETS
Freehold Improvements
land and to Plant and
buildings property machinery
£    £    £   
COST
At 1 April 2022 1,908,681 4,104,569 140,445
Additions - 336,000 -
Disposals - - -
Reclassification/transfer (113,282 ) 113,282 (4,000 )
At 31 March 2023 1,795,399 4,553,851 136,445
DEPRECIATION
At 1 April 2022 112,255 1,004,630 120,836
Charge for year 38,174 82,092 3,978
Eliminated on disposal - - -
Reclassification/transfer (2,265 ) 2,265 (3,728 )
At 31 March 2023 148,164 1,088,987 121,086
NET BOOK VALUE
At 31 March 2023 1,647,235 3,464,864 15,359
At 31 March 2022 1,796,426 3,099,939 19,609

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

11. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 April 2022 537,395 187,222 25,784 6,904,096
Additions 35,989 5,200 6,768 383,957
Disposals - (30,168 ) - (30,168 )
Reclassification/transfer - 4,000 - -
At 31 March 2023 573,384 166,254 32,552 7,257,885
DEPRECIATION
At 1 April 2022 402,796 162,922 11,147 1,814,586
Charge for year 25,593 5,368 11,233 166,438
Eliminated on disposal - (26,629 ) - (26,629 )
Reclassification/transfer - 3,728 (4,723 ) (4,723 )
At 31 March 2023 428,389 145,389 17,657 1,949,672
NET BOOK VALUE
At 31 March 2023 144,995 20,865 14,895 5,308,213
At 31 March 2022 134,599 24,300 14,637 5,089,510

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
£    £   
Trade debtors 1,533,892 1,516,432
Provision for doubtful debts (14,906 ) -
Other debtors 64,491 16,650
Directors' current accounts 3,035,587 -
Prepayments and accrued income 325,294 558,970
4,944,358 2,092,052

13. CASH AT BANK AND IN HAND
31.3.23 31.3.22
£    £   
Bank deposit account (1 ) 650,925
Santander - General - 2,662,673
Santander Head Office - 35,494
HSBC Bank account 5,441,739 654,670
Bank - other Santander a/cs - 30,716
Homes - Petty Cash 96,236 49,235
5,537,974 4,083,713

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
£    £   
Bank loans and overdrafts (see note 16) 294,115 170,906
Trade creditors 121,960 117,139
Tax 373,755 298,579
Social security and other taxes 219,639 151,648
Other creditors 64,944 63,118
Wages 534,498 451,976
Directors' current accounts 3,689 85,542
Accruals and deferred income 1,894,544 838,865
3,507,144 2,177,773

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.3.23 31.3.22
£    £   
Bank loans (see note 16) 2,675,695 2,957,049

16. LOANS

An analysis of the maturity of loans is given below:

31.3.23 31.3.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 294,115 170,906

Amounts falling due between one and two years:
Bank loans - 1-2 years 294,115 208,784

Amounts falling due between two and five years:
Bank loans - 2-5 years 2,381,580 2,748,265

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.3.23 31.3.22
£    £   
Within one year 483,827 483,827
Between one and five years 1,935,308 1,935,308
In more than five years 3,507,746 3,991,573
5,926,881 6,410,708

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

18. SECURED DEBTS

The following secured debts are included within creditors:

31.3.23 31.3.22
£    £   
Bank loans 2,969,810 3,127,955

At the balance sheet date, the bank loan is secured by way of the following:

i. Legal charge on the freehold properties;
ii. Legal charge on the leasehold properties; and
iii. Fixed and floating charge over all the current and future assets of the company;

Bank loan outstanding at the balance sheet date is repaid in monthly instalments and attracts interest at a rate of 2.150% per annum over the Bank of England Base Rate until June 2025.

19. PROVISIONS FOR LIABILITIES
31.3.23 31.3.22
£    £   
Deferred Tax 142,266 138,082

Deferred
tax
£   
Balance at 1 April 2022 138,082
Charge / (Credit) for the year 4,184
Balance at 31 March 2023 142,266

Deferred taxes are calculated on all temporary differences using the liability method at the prevailing corporation tax rate of 25% (2022: 19%) due to accelerated capital allowance. The deferred tax is attributed as above.

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.3.23 31.3.22
value: £    £   
100 Ordinary £1 100 100

21. RESERVES
Retained
earnings
£   

At 1 April 2022 5,992,271
Profit for the year 1,975,590
Gifts to Employee Ownership
Trust 1,516,365
At 31 March 2023 9,484,226

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

22. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the 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 and amounted to £143,489 (2022: £133,124). Contributions outstanding to the pension fund at 31 March 2023 amounted to £17,928 (2022: £26,510)

23. CONTINGENT LIABILITIES

On 10 July 2015, the company entered into a composite banking arrangement. Under this arrangement the company provided a guarantee to the bank for the bank borrowing of CTTM Trustees Limited acting as trustee of the Care Through the Millennium Employee Ownership Trust. Total bank loans outstanding at 31 March 2023 amounted to £5,497,300 (2022: £5,797,447).

24. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

In July 2015, Mr C M Higgins and Mrs S J Higgins, the current shareholders, provided a loan to the company in the form of deferred consideration on which interest is charged at 4% per annum (see note 25). Total net interest charged to the company during the year amounted to £5,935 (2022: £13,615).

During the year, monies overdrawn from the company by the directors amounted to £3,13million. This resulted to amounts falling due within one year within debtors to total to £3.03million (2022: -£85,543) owed from Mr C M Higgins and Mrs S J Higgins. The amount is unsecured and interest free with no set terms for repayment.

25. RELATED PARTY DISCLOSURES

The company occupies various residential properties leased by Tenrol Limited, a company in which Mr C M Higgins is the director and has an interest. Rent paid by the company at market value for the year amounted to £483,827 (2022: £483,827).

At the beginning of the year, the company owed Tenrol Limited £16,650. During the year the company provided management services and made payments on behalf of the related party. At the balance sheet date, the company is owed £23,425 by Tenrol Limited.

At the balance sheet date, the company accrued rent charge of £61,620 (2022: £66,820) payable to C M Higgins Limited, a company in which Mr C M Higgins is the sole director and shareholder. Rent charge is in relation service users occupying purpose built premises as part of maintaining the Supported Living Scheme.

The directors consider there to be no key management personnel, other than the directors, who have authority and responsibility for planning, directing and controlling the activities of the company.

26. POST BALANCE SHEET EVENTS

Corporation tax rate increased from 19% to 25%, effective 01 April 2023, impacting the company’s future tax liabilities and financial position.

An interim dividend for the subsequent financial year was paid on 30 April 2023 in respect to the changes in shareholdings. Dividend payable amounted to £3.05million.

27. ULTIMATE CONTROLLING PARTY

During the year, there was a change of ownership. The company was an employee owned company through an Employee Ownership Trust, therefore was ultimate controlling party. Due to the change of ownership, the company is under joint control of Mr C M Higgins and Mrs S J Higgins by virtue of the 100% ownership of the entire issued share capital in the company.

EXTEL LIMITED (REGISTERED NUMBER: 03275554)
T/A CARE THROUGH THE MILLENNIUM

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

28. CHANGES IN OWNERSHIP STRUCTURE

On 10 July 2015, 75% of the issued share capital of Extel Limited T/A Care Through The Millennium was sold and became a majority 'employee owned' company. To achieve this aim a new trustee company named CTTM Trustees Limited was incorporated which acts as the corporate trustee of the Care Through The Millennium Employee Ownership Trust (the 'Trust'). As a result, the Trust owned 75% of the issued share capital of Extel Limited T/A Care Through The Millennium.

The funding for this transaction was achieved as follows:

i. Initial contribution from the company of £1,000,000;
ii. Loan from a third party financial institution of £3,940,928; and
iii. Loan from the previous majority shareholders of the company of £5,222,414;

The initial contribution was paid by the company out of its distributable reserves in 2016. The remaining loans are held within the Trust, however, the funding for the repayment of these loans is intended to be made by Extel Limited. The intended annual minimum repayments are expected to be in the region of £440,000 with additional repayments to the previous majority shareholders subject to a minimum cash balance held by the company and meeting its working capital requirements.

Loan from the third party, which was subject to short term facility extensions during the year, is repaid in quarterly instalments, with a final balloon repayment of £3,283,236 due on the termination date of 30 June 2021. On 11 May 2021, the company secured re-finance with a new £3,333,000 loan on a four year term with a new third party financial institution. Loan from the previous majority shareholders is repaid in monthly instalments with interest charged on the outstanding balance at 4% per annum. The final repayment date of this loan cannot be determined due to uncertainty in timing and amount of any additional repayments. The payments made to the Trust in relation to these loans amounted to £370,563.29 (2022: £407,572).

During the year ended, Mr C M Higgins bought back all the shareholding from CTTM Trustees Limited. This increased the gifts to the employee ownership trust, which is also offset by the loan interest payment on a monthly basis on the capital repayment. Payments made to and from the Trust have been disclosed as a gift of profits from the company; disclosure is made in the Statement of Changes in Equity.