IRIS Accounts Production v23.1.5.20 06975066 Board of Directors 1.8.22 31.7.23 31.7.23 the provision of care. true false true true false false true false Ordinary Share Capital 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure069750662022-07-31069750662023-07-31069750662022-08-012023-07-31069750662021-07-31069750662021-08-012022-07-31069750662022-07-3106975066ns16:EnglandWales2022-08-012023-07-3106975066ns15:PoundSterling2022-08-012023-07-3106975066ns11:Director12022-08-012023-07-3106975066ns11:PrivateLimitedCompanyLtd2022-08-012023-07-3106975066ns11:FRS1022022-08-012023-07-3106975066ns11:Audited2022-08-012023-07-3106975066ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-08-012023-07-3106975066ns11:LargeMedium-sizedCompaniesRegimeForAccounts2022-08-012023-07-3106975066ns11:FullAccounts2022-08-012023-07-3106975066ns11:OrdinaryShareClass12022-08-012023-07-3106975066ns11:Director22022-08-012023-07-3106975066ns11:RegisteredOffice2022-08-012023-07-3106975066ns6:CurrentFinancialInstruments2023-07-3106975066ns6:CurrentFinancialInstruments2022-07-3106975066ns6:Non-currentFinancialInstruments2023-07-3106975066ns6:Non-currentFinancialInstruments2022-07-3106975066ns6:ShareCapital2023-07-3106975066ns6:ShareCapital2022-07-3106975066ns6:RetainedEarningsAccumulatedLosses2023-07-3106975066ns6:RetainedEarningsAccumulatedLosses2022-07-3106975066ns6:ShareCapital2021-07-3106975066ns6:RetainedEarningsAccumulatedLosses2021-07-3106975066ns6:RetainedEarningsAccumulatedLosses2021-08-012022-07-3106975066ns6:RetainedEarningsAccumulatedLosses2022-08-012023-07-310697506612022-08-012023-07-3106975066ns6:OwnedAssets2022-08-012023-07-3106975066ns6:OwnedAssets2021-08-012022-07-3106975066ns6:FurnitureFittings2022-07-3106975066ns6:FurnitureFittings2022-08-012023-07-3106975066ns6:FurnitureFittings2023-07-3106975066ns6:FurnitureFittings2022-07-3106975066ns6:CostValuation2022-07-3106975066ns6:WithinOneYearns6:CurrentFinancialInstruments2023-07-3106975066ns6:WithinOneYearns6:CurrentFinancialInstruments2022-07-3106975066ns6:CurrentFinancialInstruments2022-08-012023-07-3106975066ns6:Non-currentFinancialInstruments2022-08-012023-07-3106975066ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2023-07-3106975066ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2022-07-3106975066ns6:WithinOneYear2023-07-3106975066ns6:WithinOneYear2022-07-3106975066ns6:BetweenOneFiveYears2023-07-3106975066ns6:BetweenOneFiveYears2022-07-3106975066ns6:MoreThanFiveYears2023-07-3106975066ns6:MoreThanFiveYears2022-07-3106975066ns6:AllPeriods2023-07-3106975066ns6:AllPeriods2022-07-3106975066ns6:DeferredTaxation2022-07-3106975066ns6:DeferredTaxation2022-08-012023-07-3106975066ns6:DeferredTaxation2023-07-3106975066ns11:OrdinaryShareClass12023-07-3106975066ns6:RetainedEarningsAccumulatedLosses2022-07-31
REGISTERED NUMBER: 06975066 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

FOR

H & H CARE HOMES LIMITED

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 July 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


H & H CARE HOMES LIMITED

COMPANY INFORMATION
for the year ended 31 July 2023







DIRECTORS: B B Sodha
B C Sodha





REGISTERED OFFICE: 3rd Floor Westbury House
23-25 Bridge Street
Pinner
Middlesex
HA5 3HR





REGISTERED NUMBER: 06975066 (England and Wales)





AUDITORS: Accumen Business Consultancy Limited
Coventry University
Technology Park
Puma Way
Coventry
CV1 2TT

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

STRATEGIC REPORT
for the year ended 31 July 2023


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

REVIEW OF BUSINESS
The company has been trading within the healthcare sector providing care home services.

Key performance indicators are turnover, gross profit margin and costs.

During the year, the company has continued to consolidate in different aspects of its main strategic objectives which
includes to continue to increase profits.

The turnover of the company decreased by 19.0% to £2,408,771 (2022: £ 2,971,951). This is due to the occupancy levels reducing this year. One of the units had to be closed due to a roof repair, so occupancy levels had to be lowered temporarily.

The gross profit margin for the year decreased to 17.3% (2022 - 31.1%) This was as a result of the above. There was a reduction in turnover due to a decrease in occupancy rates.

Operating profit/(loss) went down to a loss of (£1,474,344) (2022 - profit of £191,560).

As at the year end, the company is in a net liability position of (£450,686) (2022 - net asset position of £1,023,921).

The directors consider that despite the challenging trading circumstances, the results are reasonable and together with the reduction in trading competition, result in them to look forward to the future.

The main elements of the company's strategy are as follows:
(a) Manage the principal risks and uncertainties facing the business.
(b) Maintaining existing client relationship and develop new businesses by improving on the full range of services
to ensure future growth.
(c) Providing enhanced responsive services and seek new contracts through established contacts and marketing.

IMPACT OF THE CORONAVIRUS PANDEMIC ON THE COMPANY
The company has been very pro-active and taken the necessary measures to prevent cases of Covid-19 in all their care homes especially in providing personal protective equipment (PPE) to all their staff and ensuring the care homes are kept free of the virus as much as possible by the infection control measures undertaken and obtaining access to Covid-19 testing for all their staff and residents.

Where possible, cohorted units have been created to isolate those with Covid-19 symptoms and to create a safe and sustainable admissions process.

In our opinion there is no significant financial or other impact on the business due to the pandemic during the year ended 31 July 2023, although uncertainties exist post year end.


H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

STRATEGIC REPORT
for the year ended 31 July 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties of the company are summarised below. The board has reviewed and agreed policies for managing each of the risks.

Financial risk exposure
The company's financial instruments comprised of borrowing and cash that arise directly from its operation. The main
purpose of these financial instruments was to fund the company's operations as well as to manage working capital,
liquidity and invest surplus funds.

Interest rate risk
The company continues to finance its operations from bank loans. Accordingly, borrowings, up until repayment, are at variable interest rates which are subject to fluctuations in the base rates.

Liquidity risk
The company continuously monitors its liquid assets to ensure it has sufficient cash and cash equivalents to meet its
operational requirements.

Credit risk
The company has no significant concertation of credit risk. The company has policies in place to ensure that sales are made to customers with an appropriate credit history.

Management of risks
The directors continue to assess the risks facing the company which are - The unforeseen economic and other conditions and the market in which the company operates. The risk of losing key customers is low due to continuous nurturing of relationships. The company has continued to develop and maintain contacts with the local authorities.

ON BEHALF OF THE BOARD:





B C Sodha - Director


24 April 2024

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

REPORT OF THE DIRECTORS
for the year ended 31 July 2023


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

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

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

B B Sodha
B C Sodha

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

AUDITORS
The auditors, Accumen Business Consultancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





B C Sodha - Director


24 April 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H & H CARE HOMES LIMITED


Opinion
We have audited the financial statements of H & H Care Homes Limited (the 'company') for the year ended 31 July 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 July 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H & H CARE HOMES LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H & H CARE HOMES LIMITED


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, environmental and health and safety legislation;

- we assessed th extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in the Accounting Policies were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H & H CARE HOMES LIMITED


There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.




Tejinder Saran (Senior Statutory Auditor)
for and on behalf of Accumen Business Consultancy Limited
Coventry University
Technology Park
Puma Way
Coventry
CV1 2TT

24 April 2024

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

INCOME STATEMENT
for the year ended 31 July 2023

31.7.23 31.7.22
Notes £    £   

TURNOVER 5 2,408,771 2,971,951

Cost of sales 1,993,299 2,047,451
GROSS PROFIT 415,472 924,500

Administrative expenses 1,889,816 732,940
OPERATING (LOSS)/PROFIT 7 (1,474,344 ) 191,560


Interest payable and similar expenses 8 - 595
(LOSS)/PROFIT BEFORE TAXATION (1,474,344 ) 190,965

Tax on (loss)/profit 9 263 745
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (1,474,607 ) 190,220

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

OTHER COMPREHENSIVE INCOME
for the year ended 31 July 2023

31.7.23 31.7.22
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (1,474,607 ) 190,220


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(1,474,607

)

190,220

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

BALANCE SHEET
31 July 2023

31.7.23 31.7.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 62,685 61,300
Investments 11 1,331,308 1,331,308
1,393,993 1,392,608

CURRENT ASSETS
Debtors 12 14,560,380 16,645,644
Cash at bank and in hand 80,018 368,806
14,640,398 17,014,450
CREDITORS
Amounts falling due within one year 13 1,632,542 1,568,365
NET CURRENT ASSETS 13,007,856 15,446,085
TOTAL ASSETS LESS CURRENT
LIABILITIES

14,401,849

16,838,693

CREDITORS
Amounts falling due after more than one year 14 (14,840,625 ) (15,803,125 )

PROVISIONS FOR LIABILITIES 17 (11,910 ) (11,647 )
NET (LIABILITIES)/ASSETS (450,686 ) 1,023,921

CAPITAL AND RESERVES
Called up share capital 18 100 100
Retained earnings 19 (450,786 ) 1,023,821
SHAREHOLDERS' FUNDS (450,686 ) 1,023,921

The financial statements were approved by the Board of Directors and authorised for issue on 24 April 2024 and were signed on its behalf by:





B C Sodha - Director


H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 July 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 August 2021 100 833,601 833,701

Changes in equity
Total comprehensive income - 190,220 190,220
Balance at 31 July 2022 100 1,023,821 1,023,921

Changes in equity
Total comprehensive income - (1,474,607 ) (1,474,607 )
Balance at 31 July 2023 100 (450,786 ) (450,686 )

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 July 2023


1. STATUTORY INFORMATION

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

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


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

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

the requirements of Section 7 Statement of Cash Flows.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 15% reducing balance

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


3. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors, cash and cash equivalents, trade and other payables, and loans and borrowings.

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value.

Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments.

Trade and other debtors
Trade and other debtors are initially recognised at fair value at their nominal amount less impairment losses if due in less than 12 months. Subsequent to initial recognition, trade and other receivables are valued at amortised cost less impairment losses.

Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. The cash and cash equivalents are stated at their nominal values, as this approximates to amortised cost.

Other financial liabilities
Other financial liabilities are subsequently measured at amortised cost using the effective interest method.

Loans and borrowings
These are initially recognised at fair value, based upon the nominal amount outstanding. Subsequent to initial recognition, they are recorded at amortised cost.

Borrowing costs arising on bank borrowings are expensed as incurred within financial expense using the effective interest method.

Trade and other payables
Trade and other payables are initially recognised at fair value, based upon the nominal amount outstanding. Subsequent to initial recognition, they are recorded at amortised cost.

Impairment of financial assets
For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of estimated future cash flows.

Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


3. ACCOUNTING POLICIES - continued

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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

Employee benefits
Payments to defined contribution plans are recognised as an expense when employees have rendered service entitling them to the contributions.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, the aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis over the lease period.

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

No significant judgements have been made by management in preparing these financial statements.

The director has made the following key assumptions in determining the carrying amount of balances receivable from group undertaking is determined after giving consideration to past experience of collecting payments and the financial position of the relevant group undertaking. A different assessment of these considerations may result in different values being determined.

5. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


6. EMPLOYEES AND DIRECTORS
31.7.23 31.7.22
£    £   
Wages and salaries 1,366,640 1,445,196
Social security costs 107,853 110,527
Other pension costs 23,195 25,519
1,497,688 1,581,242

The average number of employees during the year was as follows:
31.7.23 31.7.22

Employees 61 80

31.7.23 31.7.22
£    £   
Directors' remuneration - -

7. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging:

31.7.23 31.7.22
£    £   
Other operating leases 454,167 447,907
Depreciation - owned assets 11,062 10,817
Auditors' remuneration 1,200 1,200

8. INTEREST PAYABLE AND SIMILAR EXPENSES
31.7.23 31.7.22
£    £   
Interest payable - 595

9. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
31.7.23 31.7.22
£    £   
Current tax:
UK corporation tax - (1 )

Deferred tax 263 746
Tax on (loss)/profit 263 745

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


9. TAXATION - continued

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

31.7.23 31.7.22
£    £   
(Loss)/profit before tax (1,474,344 ) 190,965
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

(280,125

)

36,283

Effects of:
Utilisation of tax losses 280,125 (36,283 )
Deferred tax 263 745
Total tax charge 263 745

10. TANGIBLE FIXED ASSETS
Fixtures
and
fittings
£   
COST
At 1 August 2022 120,725
Additions 12,447
At 31 July 2023 133,172
DEPRECIATION
At 1 August 2022 59,425
Charge for year 11,062
At 31 July 2023 70,487
NET BOOK VALUE
At 31 July 2023 62,685
At 31 July 2022 61,300



H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


11. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 August 2022
and 31 July 2023 1,331,308
NET BOOK VALUE
At 31 July 2023 1,331,308
At 31 July 2022 1,331,308

The company acquired the entire shareholdings of GJP Alexandria Limited and Balquhidder Care Limited on 24th February 2020, a freehold property owning company and a care home operating company. Loans amounting to £6,500,00 were borrowed to fund the acquisitions.

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Trade debtors 168,950 217,188
Amounts owed by group undertakings 14,380,035 16,400,140
Other debtors 9,031 23,557
Prepayments 2,364 4,759
14,560,380 16,645,644

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Bank loans and overdrafts (see note 15) 962,500 962,500
Trade creditors 117,420 142,627
Tax - 46,404
Social security and other taxes 21,336 17,965
Pension 7,262 5,834
Other creditors 266,060 157,701
Accruals and deferred income 257,964 235,334
1,632,542 1,568,365

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

The bank loans are secured by a fixed and floating charge on the assets and undertakings of the company.

The bank loans are also secured by a fixed charge over the properties owned by fellow subsidiary companies; namely Caledonia Care Home, 7 Sidney Street, Saltcoats, KA21 5DB, Westerfield Care Home, 30 High Calside, Paisley, PA2 6BE, Treelands Care Home, Westerhill Road, Fitton Hill, Oldham, OL8 2QH, Balquhidder House Care Home, 1 Charleston Way, Alexandria, G83 0TD, and Swn-Y-Mor Care Centre, Scarlet Avenue, Port Talbot, SA12 7PH.

They are also secured by a fixed charge over the shares in the company held by the parent company, Handsale Limited.

The bank loan interest is charged at LIBOR plus a margin of 2.55% per annum. The bank loan is repayable on quarterly average instalments of £240,625 (2022 - £240,625).

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.7.23 31.7.22
£    £   
Bank loans (see note 15) 14,840,625 15,803,125

The bank loans are secured by a fixed and floating charge on the assets and undertakings of the company.

The bank loans are also secured by a fixed charge over the properties owned by fellow subsidiary companies; namely Caledonia Care Home, 7 Sidney Street, Saltcoats, KA21 5DB, Westerfield Care Home, 30 High Calside, Paisley, PA2 6BE, Treelands Care Home, Westerhill Road, Fitton Hill, Oldham, OL8 2QH, Balquhidder House Care Home, 1 Charleston Way, Alexandria, G83 0TD, and Swn-Y-Mor Care Centre, Scarlet Avenue, Port Talbot, SA12 7PH.

They are also secured by a fixed charge over the shares in the company held by the parent company, Handsale Limited.

The bank loan interest is charged at LIBOR plus a margin of 2.55% per annum. The bank loan is repayable on quarterly average instalments of £240,625 (2022 - £240,625).

15. LOANS

An analysis of the maturity of loans is given below:

31.7.23 31.7.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 962,500 962,500

Amounts falling due between two and five years:
Bank loans - 2-5 years 14,840,625 15,803,125

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.7.23 31.7.22
£    £   
Within one year 365,541 365,541
Between one and five years 1,462,164 1,462,164
In more than five years 3,381,254 3,746,795
5,208,959 5,574,500

17. PROVISIONS FOR LIABILITIES
31.7.23 31.7.22
£    £   
Deferred tax 11,910 11,647

Deferred
tax
£   
Balance at 1 August 2022 11,647
Provided during year 263
Balance at 31 July 2023 11,910

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.7.23 31.7.22
value: £    £   
100 Ordinary Share Capital 1 100 100

19. RESERVES
Retained
earnings
£   

At 1 August 2022 1,023,821
Deficit for the year (1,474,607 )
At 31 July 2023 (450,786 )

H & H CARE HOMES LIMITED (REGISTERED NUMBER: 06975066)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


20. RELATED PARTY DISCLOSURES

The company is a wholly owned subsidiary undertaking of Handsale Limited. Handsale Limited has provided a fixed and floating charge on the shares held of the company as security to support the bank loan and overdraft facility under a debenture dated 24th February 2020. H & H Care Homes Investments Limited, Baron Healthcare (Saltcoats) Limited, Postgrad Limited, GJP Alexandria Limited and Speed 9395 Limited have provided security over its care home properties in respect of the bank loans. These companies are wholly owned subsidiary undertakings of Handsale Limited and are controlled by the director, Bharat C Sodha and his family.

The company is registered to provide care services at Caledonia Care Home and under an agreement between the company and Baron Healthcare (Saltcoats) Limited, all trading operations of Caledonia Care Home are for the benefit of Baron Healthcare (Saltcoats) Limited. The company and Baron Healthcare (Saltcoats) Limited are members of the same group controlled by the director Bharat C Sodha and his family.

Westerfield Care Home is owned by H&H Care Home Investment Limited, a company which is also a member of the same group controlled by the director, Bharat C Sodha and his family.

21. ULTIMATE CONTROLLING PARTY

The controlling party is B C Sodha.

The ultimate controlling party is B C Sodha.

The ultimate controlling party is B C Sodha and his family.

The ultimate parent company is Handsale Limited, a company incorporated in England and Wales.

The entity's place of business is 30 High Calside, Paisley, Scotland PA2 6BY.

Group accounts are prepared for Handsale Limited and are available from the registered office at -
3rd Floor Westbury House
23-25 Bridge Street
Pinner
Middlesex
England
HA5 3HR