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Registered number: 09521668










ROTHERWOOD HEALTHCARE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
COMPANY INFORMATION


Directors
R Claridge 
J Fennell 




Registered number
09521668



Registered office
11 Merus Court

Meridian Business Park

Leicester

LE19 1RJ




Independent auditors
MHA
Chartered Accountants & Statutory Auditors

11 Merus Court

Meridian Business Park

Leicester

LE19 1RJ





 
ROTHERWOOD HEALTHCARE LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1
Directors' Report
 
 
2 - 3
Independent Auditors' Report
 
 
4 - 7
Statement of Comprehensive Income
 
 
8
Balance Sheet
 
 
9 - 10
Statement of Changes in Equity
 
 
11
Notes to the Financial Statements
 
 
12 - 26


 
ROTHERWOOD HEALTHCARE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The principal activity of the Company during the year continued to be that of a property management company.

Business review
 
The Company has delivered a satisfactory result for the current period. The Company continues its capital investment programme to ensure it can maintain value for service users. 

Principal risks and uncertainties
 
The management of the business and the execution of the Company's strategy are subject to a number of risks. Risks are formally reviewed by the board and appropriate processes are put in place to monitor and mitigate them. 
The key business risks affecting the Company are set out below: 
Credit Risk 
New credit service users are only accepted after they have been approved by the credit controller. The Company undertakes perpetual review processes to make sure debts are collected in a timely manner. 
Liquidity Risk 
The Company is currently financed with short-term finance. The parent company has appropriate long-term finance to provide the support required necessary to match the needs of the business.

Financial key performance indicators
 
Key performance indicators used by the Company are as follows:
- Turnover;
- Gross profit margin; and 
- Profit on ordinary activities before taxation.
During the year turnover has increased by £124,579 (123%) to £225,562 compared to £100,983 in 2022.
During the year gross loss has increased by £283,950 (100%) to (£567,550) compared to (£283,600) in 2022.
During the year profit before tax decreased by £6,031,500 (95%) to £1,553,436 compared to £7,584,936 in 2022. The comparative profit before tax figure included fair value gains of £7,165,645. 


This report was approved by the board and signed on its behalf.



................................................
J Fennell
Director

Date: 28 March 2024

Page 1

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors

The directors who served during the year were:

R Claridge 
J Fennell 

Results and dividends

The profit for the year, after taxation, amounted to £1,552,153 (2022 - £7,515,474).

Dividends amounting to £1,200,000 (2022 - £250,000) were paid in the year.

Future developments

Going forward the directors aim to continue to grow the business whilst keeping a tight control over costs.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Following a rebranding exercise on 15 May 2023 the trading name of the Company's independent auditor changed from MHA MacIntyre Hudson to MHA. The auditors, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 2

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

This report was approved by the board and signed on its behalf.
 





................................................
J Fennell
Director

Date: 28 March 2024
11 Merus Court
Meridian Business Park
Leicester
LE19 1RJ

Page 3

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROTHERWOOD HEALTHCARE LIMITED
 

Opinion


We have audited the financial statements of Rotherwood Healthcare Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROTHERWOOD HEALTHCARE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion 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 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 or the Directors' Report.


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


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 Directors' Responsibilities Statement set out on page 3, 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.


Page 5

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROTHERWOOD HEALTHCARE LIMITED (CONTINUED)


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.
Enquiry of entity staff in tax and compliance functions and external advisors to identify any instances of non- compliance with laws and regulations. 
Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. 
Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. 
Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.
 
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.


Page 6

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROTHERWOOD HEALTHCARE LIMITED (CONTINUED)





Shelley Harvey FCCA (Senior Statutory Auditor)
  
for and on behalf of MHA, Statutory Auditor

 


Leicester
United Kingdom
 

2 April 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 7

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
 £
£

  

Turnover
 4 
225,562
100,983

Cost of sales
  
(793,112)
(384,583)

Gross loss
  
(567,550)
(283,600)

Administrative expenses
  
(565,207)
(356,157)

Other operating income
 5 
1,488,268
1,275,180

Fair value movements
 15 
-
7,165,645

Operating profit
 6 
355,511
7,801,068

Income from group undertakings
 9 
1,200,000
-

Interest payable and similar expenses
 10 
(2,075)
(216,132)

Profit before tax
  
1,553,436
7,584,936

Tax on profit
 11 
(1,283)
(69,462)

Profit for the financial year
  
1,552,153
7,515,474

There were no recognised gains and losses for 2023 or 2022 other than those included in the Statement of Comprehensive Income.

There was no other comprehensive income for 2023 (2022: £NIL).

The notes on pages 12 to 26 form part of these financial statements.

Page 8

 
ROTHERWOOD HEALTHCARE LIMITED
REGISTERED NUMBER: 09521668

BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
649,978
837,367

Investments
 14 
1,160,160
1,160,161

Investment property
 15 
26,980,471
26,761,754

  
28,790,609
28,759,282

Current assets
  

Stocks
 16 
37,679
37,679

Debtors: amounts falling due within one year
 17 
3,987,357
2,435,716

Cash at bank and in hand
 18 
75
24,709

  
4,025,111
2,498,104

Creditors: amounts falling due within one year
 19 
(20,089,039)
(18,855,062)

Net current liabilities
  
 
 
(16,063,928)
 
 
(16,356,958)

Total assets less current liabilities
  
12,726,681
12,402,324

Creditors: amounts falling due after more than one year
 20 
(43,595)
(34,624)

Provisions for liabilities
  

Deferred tax
 21 
(68,634)
(105,401)

  
 
 
(68,634)
 
 
(105,401)

Net assets
  
12,614,452
12,262,299


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
  
12,614,352
12,262,199

  
12,614,452
12,262,299


Page 9

 
ROTHERWOOD HEALTHCARE LIMITED
REGISTERED NUMBER: 09521668
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
J Fennell
Director

Date: 28 March 2024

The notes on pages 12 to 26 form part of these financial statements.

Page 10

 
ROTHERWOOD HEALTHCARE LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021
100
4,996,725
4,996,825


Comprehensive income for the year

Profit for the year
-
7,515,474
7,515,474

Dividends: Equity capital
-
(250,000)
(250,000)



At 1 April 2022
100
12,262,199
12,262,299


Comprehensive income for the year

Profit for the year
-
1,552,153
1,552,153


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,200,000)
(1,200,000)


At 31 March 2023
100
12,614,352
12,614,452


Profit and loss account
Includes all current and prior year retained profits and losses. All amounts are distributable.
 
The notes on pages 12 to 26 form part of these financial statements.

Page 11

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Rotherwood Healthcare Limited is a private company, limited by shares, domiciled in England and Wales, registration number 09521668. The registered office is 11 Merus Court, Meridian Business Park, Leicester, LE19 1RJ.
The principal activity of the Company during the year continued to be that of a property management company. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
After reviewing the Company's projections, the directors have a reasonable expectation that the Company has adequate resources and support to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial information. Post year end the Company has traded profitably.
The Company's functional and presentational currency is British Pound Sterling (£).

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:
 

  
2.2

Financial reporting standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); and
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Rotherwood Group Limited, registration number 09519658, as at 31 March 2023 and these financial statements may be obtained from 11 Merus Court, Meridian Business Park, Leicester, LE19 1RJ.

Page 12

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Leased assets: the Company as lessor

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Comprehensive Income so as to produce a constant periodic rate of charge on the net obligation outstanding in each year.
 
 
2.6

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 13

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of Comprehensive Income during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Motor vehicles
-
25%
straight line
Fixtures and fittings
-
20%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

 
2.10

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

Page 15

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.17

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at transaction price, net of transaction costs, and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
Page 16

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)


For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
 
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:
 
i) Useful economic lives of tangible assets 
 
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. 
 
ii) Impairment of assets 
 
The Company makes an estimate of the recoverable value of assets. When assessing impairment of assets, management considers factors including the current credit rating of the debtor, the ageing profile of the debtors and historical experience. 

Page 17

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Rental income
225,562
100,983

225,562
100,983


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Net rents receivable
48,268
15,180

Fees receivable
1,440,000
1,260,000

1,488,268
1,275,180



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation - assets owned by the Company
200,539
49,196

Depreciation - assets held under hire purchase agreements
14,690
10,766

Page 18

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
752,103
377,558

Cost of defined contribution scheme
11,791
7,025

763,894
384,583


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administrative
15
8


8.


Directors' remuneration



During the year, no director received any emoluments.


9.


Income from group undertakings

2023
2022
£
£

Dividend received
1,200,000
-

1,200,000
-







10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
-
214,715

Finance leases and hire purchase contracts
2,075
1,417

2,075
216,132

Page 19

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
98,945
60,895

Adjustments in respect of previous periods
(60,895)
(28,500)


Total current tax
38,050
32,395

Deferred tax


Origination and reversal of timing differences
(36,767)
37,067

Total deferred tax
(36,767)
37,067


Taxation on profit on ordinary activities
1,283
69,462

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,553,436
7,584,936


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
295,153
1,441,138

Effects of:


Capital allowances for year in excess of depreciation
(4,975)
18,157

Adjustments to tax charge in respect of prior periods
(60,895)
(28,500)

Non-taxable movements in fair values
-
(1,361,333)

Dividends from UK companies
(228,000)
-

Total tax charge for the year
1,283
69,462


Factors that may affect future tax charges

From 1 April 2023, the Corporation Tax main rate increased to 25% for profits over £250,000. A small profits rate has also to be introduced for profits of £50,000 or less, charging Corporation Tax at 19%. Profits between £50,000 and £250,000 would be taxed at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate. Deferred Tax has been calculated at 25%.

Page 20

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

12.


Dividends

2023
2022
£
£


Ordinary shares
1,200,000
250,000

1,200,000
250,000


13.


Tangible fixed assets





Motor vehicles
Fixtures and fittings
Total

£
£
£



Cost or valuation


At 1 April 2022
227,777
809,578
1,037,355


Additions
16,949
16,213
33,162


Disposals
(13,436)
-
(13,436)



At 31 March 2023

231,290
825,791
1,057,081



Depreciation


At 1 April 2022
69,558
130,430
199,988


Charge for the year
19,155
173,150
192,305


Charge for the year on financed assets
22,924
-
22,924


Disposals
(8,114)
-
(8,114)



At 31 March 2023

103,523
303,580
407,103



Net book value



At 31 March 2023
127,767
522,211
649,978



At 31 March 2022
158,219
679,148
837,367

Page 21

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

           13.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
58,759
43,527

58,759
43,527


14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2022
1,160,161


Disposals
(1)



At 31 March 2023
1,160,160





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal Activity

Class of shares

Holding

Rotherwood Healthcare (Lynhales Hall) Limited
Care to the elderly and mentally infirm
Ordinary
100%
Rotherwood Healthcare (Hampton Grange) Limited
Care to the elderly and mentally infirm
Ordinary
100%
Rotherwood Healthcare (Dorset House) Limited
Care to the elderly and mentally infirm
Ordinary
100%
Rotherwood Healthcare (St Georges Park) Limited
Care to the elderly and mentally infirm
Ordinary
100%
Rotherwood Healthcare (Waterside) Limited
Dormant
Ordinary
100%

On the 30 August 2022, 100% of the share capital of Rotherwood Healthcare (Roden Hall) Limited was disposed of for a consideration of £3,000. 

Page 22

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Investment property


Freehold investment property

£



Valuation


At 1 April 2022
26,761,754


Additions at cost
218,717



At 31 March 2023
26,980,471

Freehold investment properties were revalued on 22 April 2021. The valuation was completed by Cushman & Wakefield. 

The directors have deemed that there is no change in the valuation as at 31 March 2023.



If the investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
16,406,441
16,187,725

16,406,441
16,187,725


16.


Stocks

2023
2022
£
£

Raw materials and consumables
37,679
37,679

37,679
37,679



17.


Debtors

2023
2022
£
£


Amounts owed by Group undertakings
3,959,502
2,407,514

Other debtors
14,379
13,065

Prepayments and accrued income
13,476
15,137

3,987,357
2,435,716


Page 23

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
75
24,709

75
24,709



19.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
92,701
69,410

Amounts owed to Group undertakings
19,440,087
17,279,766

Corporation tax
98,945
60,895

Obligations under finance lease and hire purchase contracts
22,588
60,460

Other creditors
434,718
1,381,470

Accruals and deferred income
-
3,061

20,089,039
18,855,062


Barclays Bank PLC and HSBC UK Bank PLC hold a fixed charge and floating charge over all property and undertakings of the Company.
Net obligations under hire purchase contracts of £22,588 (2022 - £10,984) are secured against the assets of the Company.


20.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
43,595
34,624

43,595
34,624


Barclays Bank PLC and HSBC UK Bank PLC holds a fixed charge and floating charge over all property and undertakings of the Company.
Net obligations under hire purchase contracts of £43,595 (2022 - £34,624) are secured against the assets of the Company.

Page 24

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

21.


Deferred taxation




2023


£






At beginning of year
105,401


Charged to profit or loss
(36,767)



At end of year
68,634

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
68,634
105,401

68,634
105,401


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary A shares of £1.00 each
100
100


Each ordinary share has equal voting and distribution rights, including repayment of capital in the event of winding up.


23.Transactions with directors

At the year end the Company owed the directors £425,135 (2022 - £1,334,643) in the form of a director's loan account. The loan is interest free and has no fixed repayment terms.

Page 25

 
ROTHERWOOD HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

24.


Related party transactions

During the year, the Company purchased services amounting to £208,800 (2022 - £208,690) from other related parties.
Amounts owed to other related parties at the year end totalled £495,405 (2022 - £55,628). Amounts owed from other related parties at the year end totalled £23,516 (2022 - £516). 
The wholly owned subsidiaries of the other members of the Group are exempt from the requirements of Financial Reporting Standard 102, section 33.1A to disclose transactions.
No other transactions with related parties were undertaken such as are required to be disclosed under Financial Report Standard 102, section 33.
All transactions are considered to be arms length.


25.


Controlling party

The parent preparing consolidated accounts for the smallest and largest Group of which the Company is a member is Rotherwood Group Limited. The registered office is 11 Merus Court, Meridian Business Park, Leicester, LE19 1RJ.

 
Page 26