Company registration number 04376396 (England and Wales)
SUPPORTED INDEPENDENCE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2023
St Matthew's House
Quays Office Park
Conference Avenue
Portishead
Bristol
BS20 7LZ
SUPPORTED INDEPENDENCE LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
SUPPORTED INDEPENDENCE LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr J J Kelly
Miss C E Twine
Secretary
Mr J J Kelly
Company number
04376396
Registered office
27-29 Ashley Road
Montpelier
Bristol
BS6 5NJ
Auditor
TC Group
St Matthew's House
Quays Office Park
Conference Avenue
Portishead
Bristol
BS20 7LZ
SUPPORTED INDEPENDENCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
The directors present the strategic report for the year ended 30 June 2023.
Fair review of the business
Supported Independence has continued to trade successfully throughout 2022/23, maintaining high levels of occupancy. We have worked hard to increase the range of activities we can offer our Service Users.
Staff recruitment has been a challenge, but with creativity and a lot of hard work, staffing levels are now good.
Supported Independence’s turnover has stayed stable due to the high demand and thus bed occupancy. There is still a lot of potential to grow the business further. Despite the higher staffing costs, profit levels ensure the continued success of the company.
As a leading care provider in the South West we aim to provide a high quality and innovative service. One area of innovation is our F3 program, focusing on ‘Fun, Food and Friends’ for Service Users, which aims to address some of the challenges that our clients face from the Covid period.
Principal risks and uncertainties
The Directors annually review risk and uncertainties and have strategies in place should they arise. The principal risks and uncertainty facing the company is pressure on local authorities and its funding of the company’s operations, as they are our main customers. However, as demand well outstrips supply and having received reasonable fee up lifts, along with a strong balance sheet, we do not anticipate any major concerns this year.
Development and performance
The company goes into 2023/24 with a stronger management team, that is able to run more independently from the Directors. We are continually developing a medical model that can integrate into the social care we presently provide.
Miss C E Twine
Director
28 March 2024
SUPPORTED INDEPENDENCE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2023.
Principal activities
The principal activity of the company continued to be that of residential and supported living care.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J J Kelly
Miss C E Twine
Statement of directors' responsibilities
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:
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.
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.
Auditor
The auditor, TC Group, 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.
SUPPORTED INDEPENDENCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
On behalf of the board
Miss C E Twine
Director
28 March 2024
SUPPORTED INDEPENDENCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPPORTED INDEPENDENCE LIMITED
- 5 -
Opinion
We have audited the financial statements of Supported Independence Limited (the 'company') for the year ended 30 June 2023 which comprise the profit and loss account, the balance sheet, 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:
give a true and fair view of the state of the company's affairs as at 30 June 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.
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.
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.
SUPPORTED INDEPENDENCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPPORTED INDEPENDENCE LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 and 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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
SUPPORTED INDEPENDENCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPPORTED INDEPENDENCE LIMITED
- 7 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
SUPPORTED INDEPENDENCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPPORTED INDEPENDENCE LIMITED
- 8 -
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.
Amanda Kruger FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
28 March 2024
Office: Portishead
SUPPORTED INDEPENDENCE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
6,249,812
5,943,156
Cost of sales
(3,460,313)
(3,243,452)
Gross profit
2,789,499
2,699,704
Administrative expenses
(965,997)
(1,102,777)
Other operating income
193,495
Operating profit
1,823,502
1,790,422
Interest receivable and similar income
11,009
693
Interest payable and similar expenses
(20,171)
(791)
Fair value gains and losses on investment properties
10
(52,374)
200,000
Profit before taxation
1,761,966
1,990,324
Tax on profit
7
(345,704)
(396,322)
Profit for the financial year
1,416,262
1,594,002
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 12 to 24 form part of these financial statements
SUPPORTED INDEPENDENCE LIMITED
BALANCE SHEET
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
728,474
665,548
Investment properties
10
3,739,088
3,890,988
4,467,562
4,556,536
Current assets
Debtors
11
7,224,353
5,339,069
Cash at bank and in hand
413,594
1,323,600
7,637,947
6,662,669
Creditors: amounts falling due within one year
12
(877,316)
(889,815)
Net current assets
6,760,631
5,772,854
Total assets less current liabilities
11,228,193
10,329,390
Provisions for liabilities
(378,327)
(391,421)
Net assets
10,849,866
9,937,969
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
14
10,849,766
9,937,869
Total equity
10,849,866
9,937,969
The notes on pages 12 to 24 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
Miss C E Twine
Director
Company Registration No. 04376396
SUPPORTED INDEPENDENCE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2021
100
8,475,809
8,475,909
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
1,594,002
1,594,002
Dividends
8
-
(131,942)
(131,942)
Balance at 30 June 2022
100
9,937,869
9,937,969
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
1,416,262
1,416,262
Dividends
8
-
(504,365)
(504,365)
Balance at 30 June 2023
100
10,849,766
10,849,866
The notes on pages 12 to 24 form part of these financial statements
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
1
Accounting policies
Company information
Supported Independence Limited is a private company limited by shares incorporated in England and Wales. The registered office is 27-29 Ashley Road, Montpelier, Bristol, BS6 5NJ.
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 and to include investment properties and certain financial instruments 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:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Supported Independence Holdings Limited. These consolidated financial statements are available from its registered office, 27-29 Ashley Road, Bristol, BS6 5NJ.
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.
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business as agreed under the contracts with the support funders.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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
2% straight line
Fixtures and fittings
10% straight line
Motor vehicles
25% straight line
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
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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.
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 14 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
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.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation
The Directors use their knowledge of the business and the industry to estimate the useful life and residual value of tangible fixed assets in order to arrive at an applicable depreciation rate. in accordance with section 17 of FRS102, the Directors review and update these estimates if there are indicators that current estimates should change. During the year there were no changes in depreciation rates.
It must be noted that there is inherent uncertainty with these estimates as factors such as unexpected wear and tear and changes in market price may result in future changes to the appropriate rate of depreciation.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Core business
6,249,812
5,943,157
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
6,249,812
5,943,157
2023
2022
£
£
Other revenue
Interest income
11,009
693
Grants received
-
193,495
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,440
8,400
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 19 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
2
2
Care Staff
103
98
House Managers
9
9
Head of Support Services
1
1
Finance & HR
8
7
Builders
5
10
Total
128
127
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,608,937
2,406,334
Social security costs
190,565
177,541
Pension costs
49,744
44,434
2,849,246
2,628,309
6
Directors' remuneration
2023
2022
£
£
Remuneration paid to directors
24,163
19,326
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
359,827
344,487
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
7
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
(14,123)
51,835
Total tax charge
345,704
396,322
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:
2023
2022
£
£
Profit before taxation
1,761,966
1,990,324
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
440,492
378,162
Tax effect of expenses that are not deductible in determining taxable profit
(8,042)
9,473
Tax effect of income not taxable in determining taxable profit
(38,000)
Effect of change in corporation tax rate
(78,608)
Permanent capital allowances in excess of depreciation
(8,138)
46,687
Taxation charge for the year
345,704
396,322
8
Dividends
2023
2022
£
£
Interim paid
504,365
131,942
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
9
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2022
918,934
215,594
130,492
1,265,020
Additions
104,376
2,868
4,200
111,444
At 30 June 2023
1,023,310
218,462
134,692
1,376,464
Depreciation and impairment
At 1 July 2022
315,525
199,084
84,863
599,472
Depreciation charged in the year
20,466
2,168
25,884
48,518
At 30 June 2023
335,991
201,252
110,747
647,990
Carrying amount
At 30 June 2023
687,319
17,210
23,945
728,474
At 30 June 2022
603,409
16,510
45,629
665,548
Barclays Bank Plc have a legal charge over freehold land and buidlings with a cost of £687,319 (2022 £603,409).
10
Investment property
2023
£
Fair value
At 1 July 2022
3,890,988
Additions
345,893
Transfers
(445,419)
Revaluations
(52,374)
At 30 June 2023
3,739,088
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Investment property
(Continued)
- 22 -
Investment property comprises of leasehold and freehold properties, including land. The fair value of investment property has been arrived at on the basis of a valuation carried out at 30 June 2023 by the Directors, who have experience in this industry. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties and this is reflected in the year end balance.
The fair value of the investment properties at 30 June 2023 of £3,739,088 is represented by cost of £2,225,777 and unrealised gains on revaluation of £1,513,311.
Barclays Bank Plc have a legal charge over investment properties with a valuation of £3,739,088 (2022 - £3,890,988).
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
596,795
661,915
Other debtors
6,590,545
4,641,170
7,187,340
5,303,085
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
37,013
35,984
Total debtors
7,224,353
5,339,069
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
378,562
296,228
Corporation tax
359,827
372,915
Other taxation and social security
48,124
53,216
Other creditors
90,803
167,456
877,316
889,815
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
-
-
37,013
35,984
Revaluations
378,327
391,421
-
-
378,327
391,421
37,013
35,984
2023
Movements in the year:
£
Liability at 1 July 2022
355,437
Credit to profit or loss
(14,123)
Liability at 30 June 2023
341,314
The deferred tax asset set out above is not expected to reverse within 12 months as it relates to the capital allowances on fixed assets and will therefore reduce over a period of years until the assets are fully depreciated. The deferred tax liability relates to the fair value revaluation of investment properties and therefore will only reverse on sale of the properties when the profits are realised.
14
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
9,937,869
8,475,809
Profit for the year
1,416,262
1,594,002
Dividends declared and paid in the year
(504,365)
(131,942)
At the end of the year
10,849,766
9,937,869
SUPPORTED INDEPENDENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
14
Profit and loss reserves
(Continued)
- 24 -
Included within profit and loss reserves are non-distributable profits, as set out below:
2023
2022
£
£
Non-distributable profits included above
At the beginning of the year
1,174,264
1,024,264
Non distributable profits in the year
(39,280)
150,000
At the end of the year
1,134,984
1,174,264
Distributable profits
9,714,782
8,763,605
Non-distributable profits relate to the revaluation of investment property at fair value net of deferred tax.
15
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
151,921
209,325
16
Directors' transactions
During the year the directors continued to rent out personal investment properties to the company for use by the business. The rent charged for the year totalled £174,000 (2022 - £144,000).
17
Parent company
Supported Independence Holdings Limited is the parent company of Supported Independence Limited.
The ultimate controlling parties are the directors by virtue of their controlling shareholding in Supported Independence Holdings Limited.
Consolidated financial statements of Supported Independence Holdings Limited are available from its registered office, 27-29 Ashley Road, Bristol, BS6 5NJ.
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