Company registration number 07920772 (England and Wales)
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
AS Ladhar
M Ladhar
(Appointed 23 July 2023)
Company number
07920772
Registered office
Earl Grey Properties
2nd Floor
Adelphi Chambers
20 Shakespeare Street
Newcastle Upon Tyne
Tyne and Wear
NE1 6AQ
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 24
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -
The directors present the strategic report for the year ended 31 October 2023.
Review of the business
Flexible Support Options Holdings Limited is a holding company based in the North of England. The company heads a family owned group of companies providing supported living services to anyone who has an identified support need relating to a learning disability, mental health issue, forensic histories, physical disability, sensory disability, autism, Aspergers Syndrome, behavioral challenges, acquired brain injury or other complex care or support need.
The group operates small residential care services providing specialist support.
Performance
For the year ended 31 October 2023, turnover increased by 12.6% from £14,327,953 to £16,139,240.
Principal risks and uncertainties
Risk management
The director continually analyses the key risk to the business.
Reputational risk
The group aims to maintain its reputation as the premier provider of supported living services in the areas it operates in. The group ensures it follows all Care Quality Commission (CQC) regulations, including local authority and clinical commissioning group contractual requirements, with senior operations team members attending appropriate courses and conferences to make sure the group is always fully up to date with anticipated updates or changes.
Health and safety
Maintaining the safety of staff, residents, visitors and any other outside professionals / contractors is critical to the group. The group has a dedicated Health & Safety Manager, who overseas the monitoring and compliance of all Health & Safety issues. All group staff are given the necessary training and equipment to ensure they carry out their duties accordingly to maintain and promote safety at all times.
Financial risks
Whilst Local Authority fee levels increased in 2022/23, they are under pressure and as a result the group struggles to increase fees in line with costs, resulting in lower margins. Lack of growth in fees represents a financial risk to the group although the director believes that the group is well structured and positioned to manage this risk.
Key performance indicators
The director considers the following to be the key performance indicators of the group:
The director is pleased with the performance of the group for the year ended 31 October 2023 and expects continued growth in revenue and profitability in the coming year.
The group is committed to continue a programme of substantial investment in staff training and new development in order to deliver the highest standard of care that is thoughtfully tailored to individual needs.
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
AS Ladhar
Director
11 July 2024
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 October 2023.
Principal activities
The principal activity of the company and group continued to be that of a holding company. The principal activity of the group is that of providing supported living services to individuals with learning difficulties, development disorders and disabilities.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
AS Ladhar
M Ladhar
(Appointed 23 July 2023)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
AS Ladhar
Director
11 July 2024
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
- 5 -
Opinion
We have audited the financial statements of Flexible Support Options Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
- 6 -
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 their 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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit be performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework, in which the company operates and how the company complies with that legal and regulatory framework
inquired with management and those charged with governance about their own identification and assessment of the risks of irregularities, including any know actual, suspected or alleged instances of fraud
discussed with management and those charged with governance any non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud.
The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
- 7 -
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Moran
(Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited
11 July 2024
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
2
16,139,240
14,327,953
Cost of sales
(12,485,806)
(11,183,596)
Gross profit
3,653,434
3,144,357
Administrative expenses
(1,030,563)
(970,663)
Other operating income
2,720
485,378
Operating profit
3
2,625,591
2,659,072
Tax on profit
6
(661,258)
(561,063)
Profit for the financial year
1,964,333
2,098,009
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
7
1,722,573
1,947,256
Other intangible assets
7
614,867
695,067
Total intangible assets
2,337,440
2,642,323
Tangible assets
8
96,170
91,886
2,433,610
2,734,209
Current assets
Debtors
11
10,301,675
8,475,051
Cash at bank and in hand
3,319,153
2,942,280
13,620,828
11,417,331
Creditors: amounts falling due within one year
12
(1,733,561)
(1,784,352)
Net current assets
11,887,267
9,632,979
Total assets less current liabilities
14,320,877
12,367,188
Creditors: amounts falling due after more than one year
13
(14,726)
(25,370)
Provisions for liabilities
Deferred tax liability
15
204,559
204,559
(204,559)
(204,559)
Net assets
14,101,592
12,137,259
Capital and reserves
Called up share capital
17
6
6
Profit and loss reserves
14,101,586
12,137,253
Total equity
14,101,592
12,137,259
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 11 July 2024 and are signed on its behalf by:
11 July 2024
AS Ladhar
Director
Company registration number 07920772 (England and Wales)
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
9
3,017,266
3,017,266
Current assets
Debtors
11
5,482,740
2,102,687
Creditors: amounts falling due within one year
12
-
(119,947)
Net current assets
5,482,740
1,982,740
Net assets
8,500,006
5,000,006
Capital and reserves
Called up share capital
17
6
6
Profit and loss reserves
8,500,000
5,000,000
Total equity
8,500,006
5,000,006
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,500,000 (2022 - £0 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 11 July 2024 and are signed on its behalf by:
11 July 2024
AS Ladhar
Director
Company registration number 07920772 (England and Wales)
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2021
6
10,039,244
10,039,250
Year ended 31 October 2022:
Profit and total comprehensive income
-
2,098,009
2,098,009
Balance at 31 October 2022
6
12,137,253
12,137,259
Year ended 31 October 2023:
Profit and total comprehensive income
-
1,964,333
1,964,333
Balance at 31 October 2023
6
14,101,586
14,101,592
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2021
6
5,000,000
5,000,006
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
Balance at 31 October 2022
6
5,000,000
5,000,006
Year ended 31 October 2023:
Profit and total comprehensive income
-
3,500,000
3,500,000
Balance at 31 October 2023
6
8,500,000
8,500,006
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
1,307,703
2,838,310
Income taxes paid
(899,506)
(603,188)
Net cash inflow from operating activities
408,197
2,235,122
Investing activities
Purchase of tangible fixed assets
(20,676)
(21,485)
Net cash used in investing activities
(20,676)
(21,485)
Financing activities
Repayment of bank loans
(10,648)
(10,649)
Net cash used in financing activities
(10,648)
(10,649)
Net increase in cash and cash equivalents
376,873
2,202,988
Cash and cash equivalents at beginning of year
2,942,280
739,292
Cash and cash equivalents at end of year
3,319,153
2,942,280
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
1
Accounting policies
Company information
Flexible Support Options Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Earl Grey Properties, 2nd Floor, Adelphi Chambers, 20 Shakespeare Street, Newcastle Upon Tyne, Tyne and Wear, NE1 6AQ.
The group consists of Flexible Support Options Holdings Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Flexible Support Options Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 October 2023.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Contracts
10 years
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
15% reducing balance
Computers
15% reducing balnce
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Support services
16,139,240
14,327,953
2023
2022
£
£
Other revenue
Grants received
1,825
485,378
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(1,825)
(485,378)
Depreciation of owned tangible fixed assets
16,392
16,976
(Profit)/loss on disposal of tangible fixed assets
-
1,843
Amortisation of intangible assets
304,883
304,883
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,730
-
Audit of the financial statements of the company's subsidiaries
11,700
30,240
14,430
30,240
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
8
7
-
-
Administrative and support
494
464
-
-
Total
502
471
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
11,424,901
10,115,691
Social security costs
634,683
605,406
-
-
Pension costs
208,077
199,097
12,267,661
10,920,194
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
661,258
561,063
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
2,625,591
2,659,072
Expected tax charge based on the standard rate of corporation tax in the UK of 22.50% (2022: 19.00%)
590,758
505,224
Tax effect of expenses that are not deductible in determining taxable profit
68,599
57,928
Effect of change in corporation tax rate
2,673
-
Permanent capital allowances in excess of depreciation
(772)
(2,089)
Taxation charge
661,258
561,063
7
Intangible fixed assets
Group
Goodwill
Contracts
Total
£
£
£
Cost
At 1 November 2022 and 31 October 2023
2,246,833
802,000
3,048,833
Amortisation and impairment
At 1 November 2022
299,577
106,933
406,510
Amortisation charged for the year
224,683
80,200
304,883
At 31 October 2023
524,260
187,133
711,393
Carrying amount
At 31 October 2023
1,722,573
614,867
2,337,440
At 31 October 2022
1,947,256
695,067
2,642,323
The company had no intangible fixed assets at 31 October 2023 or 31 October 2022.
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
8
Tangible fixed assets
Group
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2022
196,628
4,866
22,385
223,879
Additions
20,676
20,676
At 31 October 2023
217,304
4,866
22,385
244,555
Depreciation and impairment
At 1 November 2022
112,908
300
18,785
131,993
Depreciation charged in the year
14,339
2,053
16,392
At 31 October 2023
127,247
300
20,838
148,385
Carrying amount
At 31 October 2023
90,057
4,566
1,547
96,170
At 31 October 2022
83,720
4,566
3,600
91,886
The company had no tangible fixed assets at 31 October 2023 or 31 October 2022.
9
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
10
3,017,266
3,017,266
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022 and 31 October 2023
3,017,266
Carrying amount
At 31 October 2023
3,017,266
At 31 October 2022
3,017,266
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
10
Subsidiaries
Details of the company's subsidiaries at 31 October 2023 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Flexible Support Options Limited
1
Providing supported living services for people with disabilities
Ordinary
100.00
-
Flexible Support Options (UK North East) Limited
1
Dormant
Ordinary
-
100.00
Interactive Developments Support Limited
1
Providing support to adults with learning disabilities, supported living and homecare for adults
Ordinary
100.00
-
Registered office addresses (all UK unless otherwise indicated):
1
C/O Earl Grey Properties Ltd, 2nd Floor Adelphi Chambers. 20 Shakespeare Street, Newcastle upon Tyne, NE1 6AQ
11
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,648,807
2,370,332
Amounts owed by group undertakings
-
-
5,482,734
2,102,681
Other debtors
8,599,241
6,056,593
6
6
Prepayments and accrued income
52,116
46,615
10,300,164
8,473,540
5,482,740
2,102,687
Deferred tax asset (note 15)
1,511
1,511
10,301,675
8,475,051
5,482,740
2,102,687
12
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
14
10,644
10,648
Trade creditors
186,714
290,111
Amounts owed to group undertakings
119,947
Corporation tax payable
319,259
557,507
Other taxation and social security
200,754
184,936
-
-
Other creditors
377,200
375,757
Accruals and deferred income
638,990
365,393
1,733,561
1,784,352
119,947
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
13
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
14
14,726
25,370
14
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
25,370
36,018
Payable within one year
10,644
10,648
Payable after one year
14,726
25,370
The bank loan is denominated and repaid in pounds sterling. The bank loan is repayable in 2026.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
12,930
12,930
(444)
(444)
Short term timing differences
(2,188)
(2,188)
1,955
1,955
Intangible assets recognised in business combination
193,817
193,817
-
-
204,559
204,559
1,511
1,511
The company has no deferred tax assets or liabilities.
There were no deferred tax movements in the year.
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
208,077
199,097
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
16
Retirement benefit schemes
(Continued)
- 23 -
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
17
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
6
6
6
6
18
Related party transactions
Transactions with related parties
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
7,918,591
5,608,591
19
Controlling party
In the opinion of the director, the company and group is controlled by the Ladhar family by virtue of their ownership of the share capital, though no individual is able to control the company by virtue of their shareholding.
20
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,964,333
2,098,009
Adjustments for:
Taxation charged
661,258
561,063
(Gain)/loss on disposal of tangible fixed assets
-
1,843
Amortisation and impairment of intangible assets
304,883
304,883
Depreciation and impairment of tangible fixed assets
16,392
16,976
Movements in working capital:
Increase in debtors
(1,826,624)
(121,497)
Increase/(decrease) in creditors
187,461
(22,967)
Cash generated from operations
1,307,703
2,838,310
FLEXIBLE SUPPORT OPTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
21
Analysis of changes in net funds - group
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
2,942,280
376,873
3,319,153
Borrowings excluding overdrafts
(36,018)
10,648
(25,370)
2,906,262
387,521
3,293,783
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