REGISTERED NUMBER: 13198974 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 April 2023 |
for |
First City Nursing & Care Ltd |
REGISTERED NUMBER: 13198974 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 April 2023 |
for |
First City Nursing & Care Ltd |
First City Nursing & Care Ltd (Registered number: 13198974) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 April 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
First City Nursing & Care Ltd |
Company Information |
for the Year Ended 30 April 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor, Chartered Certified Accountants |
2 Cricklade Court |
Old Town |
Swindon |
Wiltshire |
SN1 3EY |
First City Nursing & Care Ltd (Registered number: 13198974) |
Group Strategic Report |
for the Year Ended 30 April 2023 |
The directors present their strategic report of the company and the group for the year ended 30 April 2023. |
REVIEW OF BUSINESS |
The principal interests of the company during the period were to provide domiciliary healthcare services as well as agency services to healthcare establishments. During the period the company has continued to work systemwide in partnership with statutory bodies and in particular local authorities and clinical commissioning groups. The company has continued its role as key systemwide partner within the local health and care ecosystem, including helping to facilitate discharges into the community care sector. |
The directors are satisfied with the performance of the company in the 12-month period ended 30 April 2023 This performance has been despite a very challenging environment to the sector, the company and its employees. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The board along with the management team monitor key risks that the company faces on a continual basis. |
The principal risks facing the company relate to the recruitment and retention of healthcare professionals through the current labour market. This issue has been exacerbated by the pressure resulting from competing sectors within the economy. |
Further risks to the business include the continuing inflationary pressures that have manifested themselves in the economy and the continuing risk that the increases are non-transitory and the consequential effect on the company's cost structure. Unlike competing sectors, healthcare providers are unable to fully pass cost increases onto the end customer. |
An additional risk to the business includes the continuing pressures on funding that the sector is currently facing. This includes the adequacy of the funding that is allocated and distributed from central to local government to keep the sector sustainable. |
While the enduring future impact of COVID-19 is uncertain and the lasting impacts across the NHS, Social care and wider socio-economic issues continue to present a risk to the company. Despite this the company is well placed to operate as a prime provider in the developing integrated care systems the future sector will be dependent upon. |
ON BEHALF OF THE BOARD: |
First City Nursing & Care Ltd (Registered number: 13198974) |
Report of the Directors |
for the Year Ended 30 April 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2023. |
DIVIDENDS |
The total distribution of dividends for the period ended 30 April 2023 will be £308,156. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
There have been no political donations made in the current or prior year. |
ENGAGEMENT WITH EMPLOYEES |
The directors promote a company policy of giving full and fair consideration to applications for employment made by disabled persons. Specific training and career development are considered in line with the needs of all employees of the company. |
The necessity for, and importance of, good communication with all employees is well recognised and accepted by the directors. For many years, regular meetings with employees' representatives have been held to keep them informed of developments and to receive their suggestions on various matters including health and safety. |
The Company recognises the valuable contribution made by its employees to the success of the business. Employees are kept informed of the activities of the Company at regular staff liaison meetings. Staff are encouraged to discuss matters directly with management or bring matters to their attention at the staff liaison meeting. The Company always considers matters relating to employment fairly irrespective of race, age, sex, disability, religious beliefs or sexual orientation. The Company supports the ongoing training and development of its staff. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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. |
First City Nursing & Care Ltd (Registered number: 13198974) |
Report of the Directors |
for the Year Ended 30 April 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Morley & Co (UK) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
First City Nursing & Care Ltd |
Opinion |
We have audited the financial statements of First City Nursing & Care Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 April 2023 and of the group's 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 group 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 group's and the parent 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. |
Report of the Independent Auditors to the Members of |
First City Nursing & Care Ltd |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 three and four, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
First City Nursing & Care Ltd |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
a. The nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
b. Enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to: |
b.i. Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
b.ii. Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
b.iii. The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. |
b.iv. Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements, such as provisions of the UK Companies Act, pensions legislation and tax legislation or that had a fundamental effect on the operations of the company, General Data Protection requirements and Anti-bribery and corruption policy. |
In common with all audits under ISAs (UK), we are required to perform specific procedures to respond to the risk of management override. Our procedures to respond to risks identified included the following: |
a. Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
b. Enquiring of management and external legal counsel concerning actual and potential litigation and claims; |
c. Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and |
d. Reading minutes of meetings of those charged with governance and correspondence with regulators. |
Report of the Independent Auditors to the Members of |
First City Nursing & Care Ltd |
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. 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 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. |
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. |
for and on behalf of |
Statutory Auditor, Chartered Certified Accountants |
2 Cricklade Court |
Old Town |
Swindon |
Wiltshire |
SN1 3EY |
First City Nursing & Care Ltd (Registered number: 13198974) |
Consolidated |
Income Statement |
for the Year Ended 30 April 2023 |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
Notes | £ | £ |
TURNOVER | 19,473,009 | 19,160,919 |
Cost of sales | 15,596,807 | 15,506,828 |
GROSS PROFIT | 3,876,202 | 3,654,091 |
Administrative expenses | 2,924,796 | 3,023,756 |
951,406 | 630,335 |
Other operating income | 583,765 | 556,400 |
OPERATING PROFIT | 4 | 1,535,171 | 1,186,735 |
Interest receivable and similar income | - | 471 |
1,535,171 | 1,187,206 |
Interest payable and similar expenses | 5 | 44,724 | 29,409 |
PROFIT BEFORE TAXATION | 1,490,447 | 1,157,797 |
Tax on profit | 6 | 286,436 | (147,743 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,204,011 | 1,305,540 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 30 April 2023 |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,204,011 | 1,305,540 |
OTHER COMPREHENSIVE INCOME |
Revaluation of cryptocurrencies | 3,813 | - |
Income tax relating to other comprehensive income |
(953 |
) |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
2,860 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,206,871 |
1,305,540 |
Total comprehensive income attributable to: |
Owners of the parent | 1,206,871 | 1,305,540 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Consolidated Balance Sheet |
30 April 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 3,017,874 | 2,918,443 |
Tangible assets | 10 | 2,175,501 | 2,167,867 |
Investments | 11 | - | - |
Investment property | 12 | 530,189 | 530,189 |
5,723,564 | 5,616,499 |
CURRENT ASSETS |
Debtors | 13 | 2,959,640 | 2,505,974 |
Cash at bank and in hand | 1,409,157 | 1,510,632 |
4,368,797 | 4,016,606 |
CREDITORS |
Amounts falling due within one year | 14 | 3,646,034 | 3,920,222 |
NET CURRENT ASSETS | 722,763 | 96,384 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,446,327 |
5,712,883 |
CREDITORS |
Amounts falling due after more than one year |
15 |
1,350,331 |
1,515,602 |
NET ASSETS | 5,095,996 | 4,197,281 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 100 | 100 |
Retained earnings | 19 | 5,095,896 | 4,197,181 |
SHAREHOLDERS' FUNDS | 5,095,996 | 4,197,281 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 January 2024 and were signed on its behalf by: |
S J Trowbridge - Director |
First City Nursing & Care Ltd (Registered number: 13198974) |
Company Balance Sheet |
30 April 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 530,791 | 2,320,475 |
The financial statements were approved by the Board of Directors and authorised for issue on |
First City Nursing & Care Ltd (Registered number: 13198974) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 April 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 12 February 2021 | - | 1,446,519 | 1,446,519 |
Changes in equity |
Consolidation adjustments | 100 | 1,796,162 | 1,796,262 |
Dividends | - | (351,040 | ) | (351,040 | ) |
Total comprehensive income | - | 1,305,540 | 1,305,540 |
Balance at 30 April 2022 | 100 | 4,197,181 | 4,197,281 |
Changes in equity |
Dividends | - | (308,156 | ) | (308,156 | ) |
Total comprehensive income | - | 1,206,871 | 1,206,871 |
Balance at 30 April 2023 | 100 | 5,095,896 | 5,095,996 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Company Statement of Changes in Equity |
for the Year Ended 30 April 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Consolidated Cash Flow Statement |
for the Year Ended 30 April 2023 |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 542,109 | 544,198 |
Interest paid | (44,724 | ) | (29,409 | ) |
Government grants | 69,626 | 684,102 |
Tax paid | (38,318 | ) | (5,384 | ) |
Net cash from operating activities | 528,693 | 1,193,507 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (102,415 | ) | (16,000 | ) |
Purchase of tangible fixed assets | (41,654 | ) | (77,155 | ) |
Purchase of investments net of cash acq. | - | (1,365,938 | ) |
Purchase of investment property | - | (1,055,588 | ) |
Sale of tangible fixed assets | - | 12,400 |
Sale of investment property | - | 530,000 |
Dividends received | - | 1,796,162 |
Interest received | - | 471 |
Net cash from investing activities | (144,069 | ) | (175,648 | ) |
Cash flows from financing activities |
Intercompany loans in year | - | 67,405 |
Loan repayments in year | (167,943 | ) | (115,865 | ) |
New loans in year | - | 930,178 |
Amount withdrawn by directors | (10,000 | ) | (38,105 | ) |
Share issue | - | 200 |
Equity dividends paid | (308,156 | ) | (351,040 | ) |
Net cash from financing activities | (486,099 | ) | 492,773 |
(Decrease)/increase in cash and cash equivalents | (101,475 | ) | 1,510,632 |
Cash and cash equivalents at beginning of year |
2 |
1,510,632 |
- |
Cash and cash equivalents at end of year |
2 |
1,409,157 |
1,510,632 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 April 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
£ | £ |
Profit before taxation | 1,490,447 | 1,157,797 |
Depreciation charges | 40,816 | 60,058 |
Profit on disposal of fixed assets | - | (16,243 | ) |
Government grants | (583,098 | ) | (555,910 | ) |
Finance costs | 44,724 | 29,409 |
Finance income | - | (471 | ) |
992,889 | 674,640 |
(Increase)/decrease in trade and other debtors | (678,838 | ) | 86,458 |
Increase/(decrease) in trade and other creditors | 228,058 | (216,900 | ) |
Cash generated from operations | 542,109 | 544,198 |
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 30 April 2023 |
30/4/23 | 1/5/22 |
£ | £ |
Cash and cash equivalents | 1,409,157 | 1,510,632 |
Period ended 30 April 2022 |
30/4/22 | 12/2/21 |
£ | £ |
Cash and cash equivalents | 1,510,632 | - |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 April 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/5/22 | Cash flow | At 30/4/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,510,632 | (101,475 | ) | 1,409,157 |
1,510,632 | (101,475 | ) | 1,409,157 |
Debt |
Debts falling due within 1 year | (188,654 | ) | 2,672 | (185,982 | ) |
Debts falling due after 1 year | (1,515,602 | ) | 165,271 | (1,350,331 | ) |
(1,704,256 | ) | 167,943 | (1,536,313 | ) |
Total | (193,624 | ) | 66,468 | (127,156 | ) |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 April 2023 |
1. | STATUTORY INFORMATION |
First City Nursing & Care Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Subsidiaries exempt from audit and accounts preparation |
The following subsidiaries are exempt from the requirements of the UK Companies Act 2006 relating to the audit of the individual accounts by virtue of S480 of the Act: |
S480 - Island Homecare Ltd (company number 13686556) |
S480 - Stephanie Gibbs Ltd (company number 08851906) |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the company, these being First City Nursing Holdings Ltd, First City Healthcare Ltd and First City Nursing Services Ltd. Uniform accounting policies are adopted throughout the Group. |
The subsidiaries, Island Homecare Ltd and Stephanie Gibbs Ltd, have been excluded from consolidation under S405 of the Companies Act 2006 as their inclusion is not material for the purpose of giving a true and fair view. Both of these companies are dormant with net assets of £nil and profit for the year of £nil. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factor, including expectations of future events that are believed to be reasonable under the circumstances. |
Critical accounting estimates and assumptions: |
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 a 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 life 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 re-assessed 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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date, turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date. Where payments are received from customers in advance of services provided the amounts are recorded as deferred income and included as part of creditors due within one year. |
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 three years. |
Cyrpto currencies |
Crypto currenices are initially measured at cost. After initial recognition, crypto currenices are measured at their current value based on published market prices. Any aggregate surplus or deficit arising from changes in fair value is recognised in other comprehensive income. |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Government grants |
Government grants and furlough support are measured at the fair value of the asset received or receivable, where there is reasonable assurance that the assistance will be received and all the associated conditions met. Amounts are recognised in the profit and loss account over the period in which the costs to which the grants and support are intended to compensate are expensed, and are reported within other operating income. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Basic financial instruments |
Basic financial instruments, including trade and other receivables and payables, cash and bank balances, bank loans and loans to or from other group companies are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
3. | EMPLOYEES AND DIRECTORS |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
£ | £ |
Wages and salaries | 6,225,620 | 5,849,401 |
Social security costs | 501,671 | 497,665 |
Other pension costs | 183,115 | 360,274 |
6,910,406 | 6,707,340 |
The average number of employees during the year was as follows: |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
Employees |
The average number of employees by undertakings that were proportionately consolidated during the year was 336 (2022 - 354 ) . |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
£ | £ |
Directors' remuneration | 12,570 | 12,570 |
Directors' pension contributions to money purchase schemes | 5,377 | 184,371 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
£ | £ |
Depreciation - owned assets | 34,020 | 54,060 |
Profit on disposal of fixed assets | - | (16,243 | ) |
Computer software amortisation | 6,797 | 5,997 |
Auditors' remuneration | 28,352 | 23,290 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
£ | £ |
Bank loan interest | 44,724 | 25,964 |
HMRC interest | - | 2,175 |
Loan | - | 1,270 |
44,724 | 29,409 |
6. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
£ | £ |
Current tax: |
UK corporation tax | 293,310 | 284,368 |
Earlier year under/(over) provision | - | (431,364 | ) |
Total current tax | 293,310 | (146,996 | ) |
Deferred tax | (6,874 | ) | (747 | ) |
Tax on profit | 286,436 | (147,743 | ) |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
6. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of cryptocurrencies | 3,813 | (953 | ) | 2,860 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
Period |
12/2/21 |
Year Ended | to |
30/4/23 | 30/4/22 |
£ | £ |
Ordinary shares of £1 each |
Interim | 308,156 | 351,040 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Crypto | Computer |
Goodwill | currencies | software | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 May 2022 | 2,907,113 | - | 20,366 | 2,927,479 |
Additions | - | 100,015 | 2,400 | 102,415 |
Revaluations | - | 3,813 | - | 3,813 |
At 30 April 2023 | 2,907,113 | 103,828 | 22,766 | 3,033,707 |
AMORTISATION |
At 1 May 2022 | - | - | 9,036 | 9,036 |
Amortisation for year | - | - | 6,797 | 6,797 |
At 30 April 2023 | - | - | 15,833 | 15,833 |
NET BOOK VALUE |
At 30 April 2023 | 2,907,113 | 103,828 | 6,933 | 3,017,874 |
At 30 April 2022 | 2,907,113 | - | 11,330 | 2,918,443 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
9. | INTANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 30 April 2023 is represented by: |
Crypto | Computer |
Goodwill | currencies | software | Totals |
£ | £ | £ | £ |
Valuation in 2023 | - | 3,813 | - | 3,813 |
Cost | 2,907,113 | 100,015 | 22,766 | 3,029,894 |
2,907,113 | 103,828 | 22,766 | 3,033,707 |
Company |
Crypto |
currencies |
£ |
COST OR VALUATION |
Additions |
Revaluations |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
Cost or valuation at 30 April 2023 is represented by: |
Crypto |
currencies |
£ |
Valuation in 2023 | 3,813 |
Cost | 100,015 |
103,828 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 May 2022 | 2,097,046 | 140,342 | 181,355 | 169,812 | 2,588,555 |
Additions | 27,599 | - | - | 14,055 | 41,654 |
At 30 April 2023 | 2,124,645 | 140,342 | 181,355 | 183,867 | 2,630,209 |
DEPRECIATION |
At 1 May 2022 | - | 136,602 | 138,520 | 145,566 | 420,688 |
Charge for year | - | 2,250 | 10,709 | 21,061 | 34,020 |
At 30 April 2023 | - | 138,852 | 149,229 | 166,627 | 454,708 |
NET BOOK VALUE |
At 30 April 2023 | 2,124,645 | 1,490 | 32,126 | 17,240 | 2,175,501 |
At 30 April 2022 | 2,097,046 | 3,740 | 42,835 | 24,246 | 2,167,867 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 May 2022 |
and 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: First City House, Cheney Manor Industrial Estate, Swindon, SN2 2QG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: First City House, Cheney Manor Industrial Estate, Swindon, SN2 2QG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: First City House, Cheney Manor Industrial Estate, Swindon, SN2 2QG |
Nature of business: |
% |
Class of shares: | holding |
The shares in First City Nursing Services Ltd are held by First City Nursing Holdings Ltd, a wholly owned subsidiary of First City Nursing & Care Ltd. |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 May 2022 |
and 30 April 2023 | 530,189 |
NET BOOK VALUE |
At 30 April 2023 | 530,189 |
At 30 April 2022 | 530,189 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 2,119,008 | 1,381,265 |
Other debtors | 11,580 | 26,583 |
Directors' current accounts | 65,043 | 55,043 |
Tax | 190,272 | 431,364 |
Deferred tax asset | 8,523 | 2,603 |
Prepayments and accrued income | 565,214 | 609,116 |
2,959,640 | 2,505,974 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 8,523 | 2,603 | - | - |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 65,982 | 68,654 |
Other loans (see note 16) | 120,000 | 120,000 |
Trade creditors | 1,939,505 | 1,597,716 |
Amounts owed to group undertakings | - | - |
Tax | 290,981 | 277,081 |
Social security and other taxes | 110,900 | 139,135 |
VAT | 122,451 | 117,287 | - | - |
Other creditors | 182,601 | 286,601 |
Accruals and deferred income | 813,614 | 1,313,748 |
3,646,034 | 3,920,222 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 16) | 661,439 | 705,424 |
Other loans (see note 16) | 688,892 | 810,178 |
1,350,331 | 1,515,602 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 65,982 | 68,654 |
Other loans | 120,000 | 120,000 |
185,982 | 188,654 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 69,017 | 70,827 |
Other loans - 1-2 years | 120,000 | 120,000 | 120,000 |
189,017 | 190,827 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 226,687 | 226,218 |
Other loans - 2-5 years | 360,000 | 360,000 |
586,687 | 586,218 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 365,735 | 408,379 | - | - |
Other loans more 5yrs instal | 208,892 | 330,178 | 208,892 | 330,178 |
574,627 | 738,557 | 208,892 | 330,178 |
17. | DEFERRED TAX |
Company |
2023 | 2022 |
£ | £ |
Deferred tax | 953 | - |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
17. | DEFERRED TAX - continued |
Group |
£ |
Balance at 1 May 2022 | (2,603 | ) |
Credit to Income Statement during year | (6,873 | ) |
Charge to OCI | 953 |
Balance at 30 April 2023 | (8,523 | ) |
Company |
£ |
Provided during year |
Balance at 30 April 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 20 | 20 |
Ordinary B | £1 | 60 | 60 |
Ordinary C | £1 | 11 | 11 |
Ordinary D | £1 | 9 | 9 |
100 | 100 |
19. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 May 2022 | 4,197,181 |
Profit for the year | 1,204,011 |
Dividends | (308,156 | ) |
Revaluation of cryptocurrencies | 2,860 |
At 30 April 2023 | 5,095,896 |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
19. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 May 2022 |
Profit for the year |
Dividends | ( |
) |
Revaluation of cryptocurrencies | 2,860 |
At 30 April 2023 |
20. | CONTINGENT LIABILITIES |
Bank loans |
First City Nursing Services Ltd has provided a guarantee of £1,100,000 to National Westminster Bank PLC in respect of a loan owed by First City Healthcare Ltd, both subsidiaries within the group. This guarantee has been enacted by a fixed and floating charge over all of First City Nursing Services Ltd's assets. |
The balance on the loan in First City Healthcare Ltd at 30th April 2023 was £727,421. |
Tax enquiry |
There is an ongoing HMRC enquiry into First City Nursing Services Ltd's R&D tax credit claim for the year ended 30th April 2021. At the reporting date the outcome of the enquiry was uncertain. If the R&D relief is denied, First City Nursing Services Ltd may be liable to repay tax of £431,364 plus interest and potential penalties. |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the year ended 30 April 2023 and the period ended 30 April 2022: |
2023 | 2022 |
£ | £ |
S J Trowbridge |
Balance outstanding at start of year | 55,043 | 16,938 |
Amounts advanced | 289,324 | 50,043 |
Amounts repaid | (279,324 | ) | (11,938 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 65,043 | 55,043 |
Interest is charged at commercial rates on overdrawn balances. |
First City Nursing & Care Ltd (Registered number: 13198974) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
22. | RELATED PARTY DISCLOSURES |
Transactions entered into, and trading balances outstanding at 30 April 2023, are as follows: |
Total |
£ |
Sales to related parties with common control | 31,368 |
Purchases from related parties with common control | 59 |
Related parties with common control included in debtors | 44,007 |
Related parties with common control included in creditors | nil |
Terms and conditions of transactions with related parties |
Sales and purchases are made at normal market prices. Outstanding balances are unsecured, interest free and cash settlement is expected under normal trading terms. |
First City Nursing Services Ltd has provided a guarantee of £1,100,000 to National Westminster Bank PLC in respect of a loan owed by the subsidiary, First City Healthcare Ltd. This guarantee has been enacted by a fixed and floating charge over all of the company's assets. |
The balance on the loan in First City Healthcare Ltd at 30th April 2023 was £727,421. |
23. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is S J Trowbridge. |