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Registration number: 04909187

Brandon Care Limited

Annual Report and Financial Statements

for the Year Ended 31 October 2023

 

Brandon Care Limited
(Registration number: 04909187)

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 29

 

Brandon Care Limited
(Registration number: 04909187)

Company Information

Directors

W P Marsh

J H Marsh

D H Marsh

W J Marsh

Company secretary

J H Marsh

Registered office

29 Douglas Avenue
Exmouth
Devon
EX8 2HE

Solicitors

Vine Orchards
Trinity Chambers
49 Rolle Street
Exmouth
EX8 2RS

Auditors

Thompson Jenner LLP
Chartered Accountants and Statutory Auditors
1 Colleton Crescent
Exeter
Devon
EX2 4DG

 

Brandon Care Limited
(Registration number: 04909187)

Strategic Report for the Year Ended 31 October 2023

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

Principal activity

The principal activity of the company is the provision of residential care.

Fair review of the business

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and profit before tax.

Overall the directors are satisfied with the profitability of the company, which can only be achieved as a result of the ongoing high level of service and care provided to the residents by the company and its staff.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

3,825,330

3,378,484

Turnover growth

%

13

10

Profit before tax

£

821,710

725,501

At the end of the year, the net assets totalled £4,694,061 (2022 - £4,131,964).

We consider our key non financial performance indicator to be the ratings awarded to each home by the Care Quality Commission, an independent regulator which monitors, inspects and regulates health and social care services. The three homes were assessed in prior financial years, with one achieving an "outstanding" overall rating and the other two achieving "good" ratings.

Principal risks and uncertainties

The board of directors undertake a regular review of the company and the board of directors have identified that the principal risks faced by Brandon Care Limited relates to competition within the local area, increased interest rates and recruitment of staff.

Approved by the Board on 29 July 2024 and signed on its behalf by:


J H Marsh
Company secretary and director

 

Brandon Care Limited
(Registration number: 04909187)

Directors' Report for the Year Ended 31 October 2023

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

Directors of the company

The directors who held office during the year were as follows:

W P Marsh

J H Marsh - Company secretary and director

D H Marsh

W J Marsh

Financial instruments

Objectives and policies

The company's principal financial instruments comprise the bank balance, trade creditors, trade debtors, hire purchase agreements and bank loans. The main purpose of these instruments is to raise funds for the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respesct of bank balances, the liquidity risk is managed by maintaining a balance which is more than sufficient to cover current liabilities. All of the company's cash balances are held in such a way that achieves a competitive rate of interest.

Trade debtors are managed in respect of credit and cash flow by policies concerning the credit offered to residents and the monitoring of amounts outstanding.

The hire purchase agreements are provided by financial institutions at fixed rates of interest. The company ensures there are sufficient funds to meet these requirements.

Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.

Loans comprise loans from financial institutions. The interest rates and monthly payments are variable. The business manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

Future developments

The directors do not envisage the business of the company changing in the foreseeable future.

 

Brandon Care Limited
(Registration number: 04909187)

Directors' Report for the Year Ended 31 October 2023

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 29 July 2024 and signed on its behalf by:


J H Marsh
Company secretary and director

 

Brandon Care Limited
(Registration number: 04909187)

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 and in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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.

 

Brandon Care Limited
(Registration number: 04909187)

Independent Auditor's Report to the Members of Brandon Care Limited

Opinion

We have audited the financial statements of Brandon Care Limited (the 'company') for the year ended 31 October 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 October 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.

 

Brandon Care Limited
(Registration number: 04909187)

Independent Auditor's Report to the Members of Brandon Care Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters 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 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

 

Brandon Care Limited
(Registration number: 04909187)

Independent Auditor's Report to the Members of Brandon Care Limited

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 telecommunications sector;

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 and data protection, anti-bribery, employment, environmental and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with industry regulators, 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;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

 

Brandon Care Limited
(Registration number: 04909187)

Independent Auditor's Report to the Members of Brandon Care Limited

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;

reading the minutes of meetings of those charged with governance;

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

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

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 auditor's report.

Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.





David Tucker (Senior Statutory Auditor)
For and on behalf of Thompson Jenner LLP, Statutory Auditor

1 Colleton Crescent
Exeter
Devon
EX2 4DG

29 July 2024

 

Brandon Care Limited
(Registration number: 04909187)

Profit and Loss Account for the Year Ended 31 October 2023

Note

2023
£

2022
£

Turnover

3

3,825,330

3,378,484

Cost of sales

 

(287,185)

(259,990)

Gross profit

 

3,538,145

3,118,494

Administrative expenses

 

(2,507,285)

(2,350,445)

Other operating income

4

4,003

80,799

Operating profit

5

1,034,863

848,848

Other interest receivable and similar income

7

8,445

674

Interest payable and similar expenses

8

(221,598)

(124,021)

Profit before tax

 

821,710

725,501

Taxation

12

(194,613)

(144,341)

Profit for the financial year

 

627,097

581,160

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Statement of Comprehensive Income for Year Ended 31 October 2023

2023
£

2022
£

Profit for the year

627,097

581,160

Total comprehensive income for the year

627,097

581,160

 

Brandon Care Limited
(Registration number: 04909187)

Balance Sheet as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

14

6,931,311

6,970,490

Current assets

 

Debtors

15

156,907

155,255

Cash at bank and in hand

 

1,825,109

1,705,625

 

1,982,016

1,860,880

Creditors: Amounts falling due within one year

17

(1,178,944)

(1,567,572)

Net current assets

 

803,072

293,308

Total assets less current liabilities

 

7,734,383

7,263,798

Creditors: Amounts falling due after more than one year

17

(2,843,630)

(2,942,852)

Provisions for liabilities

18

(196,692)

(188,982)

Net assets

 

4,694,061

4,131,964

Capital and reserves

 

Called up share capital

20

100

100

Profit and loss account

21

4,693,961

4,131,864

Total equity

 

4,694,061

4,131,964

Approved and authorised by the Board on 29 July 2024 and signed on its behalf by:
 

......................................
J H Marsh
Company secretary and director

 

Brandon Care Limited
(Registration number: 04909187)

Statement of Changes in Equity for the Year Ended 31 October 2023

Share capital
£

Retained earnings
£

Total
£

At 1 November 2022

100

4,131,864

4,131,964

Profit for the year

-

627,097

627,097

Dividends

-

(65,000)

(65,000)

At 31 October 2023

100

4,693,961

4,694,061

Share capital
£

Retained earnings
£

Total
£

At 1 November 2021

100

3,618,204

3,618,304

Profit for the year

-

581,160

581,160

Dividends

-

(67,500)

(67,500)

At 31 October 2022

100

4,131,864

4,131,964

 

Brandon Care Limited
(Registration number: 04909187)

Statement of Cash Flows for the Year Ended 31 October 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

627,097

581,160

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

157,495

156,819

Finance income

7

(8,445)

(674)

Finance costs

8

221,598

124,021

Income tax expense

12

194,613

144,341

 

1,192,358

1,005,667

Working capital adjustments

 

(Increase)/decrease in trade debtors

15

(1,652)

26,578

(Decrease)/increase in trade creditors

17

(390,175)

395,004

Cash generated from operations

 

800,531

1,427,249

Income taxes paid

12

(128,873)

(159,091)

Net cash flow from operating activities

 

671,658

1,268,158

Cash flows from investing activities

 

Interest received

7

8,445

674

Acquisitions of tangible assets

(118,316)

(684,984)

Net cash flows from investing activities

 

(109,871)

(684,310)

Cash flows from financing activities

 

Interest paid

8

(221,598)

(124,021)

Repayment of bank borrowing

 

(145,082)

(175,417)

Payments to finance lease creditors

 

(10,623)

(16,552)

Dividends paid

24

(65,000)

(67,500)

Net cash flows from financing activities

 

(442,303)

(383,490)

Net increase in cash and cash equivalents

 

119,484

200,358

Cash and cash equivalents at 1 November

 

1,705,625

1,505,267

Cash and cash equivalents at 31 October

 

1,825,109

1,705,625

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
29 Douglas Avenue
Exmouth
Devon
EX8 2HE

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

Over 100 years

Fixtures and fittings

10% straight line

Motor vehicles

25% straight line

Computer equipment

33% straight line

Furniture and fittings

15% straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Written off over 5 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Rendering of services

3,825,330

3,378,484

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

80,799

Miscellaneous other operating income

4,003

-

4,003

80,799

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

157,495

156,819

Operating lease expense - plant and machinery

14,135

10,469

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

6

Government grants

Covid related grants have been credited to other income and have been recognised using the accruals model.
The amount of grants recognised in the financial statements was £Nil (2022 - £80,799).

7

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

8,445

674

8

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

218,714

120,679

Interest on obligations under finance leases and hire purchase contracts

2,884

3,342

221,598

124,021

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,610,737

1,549,106

Social security costs

125,584

109,782

Other short-term employee benefits

1,943

412

Pension costs, defined contribution scheme

63,808

72,822

Other employee expense

43,790

23,315

1,845,862

1,755,437

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

8

8

Care providers

73

68

81

76

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

118,332

117,331

Contributions paid to money purchase schemes

28,008

27,110

146,340

144,441

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

4

4

11

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

4,620

4,410


 

12

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

186,724

128,874

UK corporation tax adjustment to prior periods

179

(181)

186,903

128,693

Deferred taxation

Arising from origination and reversal of timing differences

7,710

15,648

Tax expense in the income statement

194,613

144,341

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 22.52% (2022 - 19%).

The differences are reconciled below:

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

2023
£

2022
£

Profit before tax

821,710

725,501

Corporation tax at standard rate

185,049

137,845

Effect of expense not deductible in determining taxable profit (tax loss)

(4,677)

4,796

Deferred tax expense from unrecognised temporary difference from a prior period

7,710

15,648

Increase/(decrease) in UK and foreign current tax from adjustment for prior periods

179

(181)

Tax increase/(decrease) from effect of capital allowances and depreciation

6,352

(13,767)

Total tax charge

194,613

144,341

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%. As the company’s
financial year straddles this date, a blended corporation tax rate of 22.52% has been applied which is
calculated by apportioning the two tax rates on a weighted basis for the proportion of the financial
year for which each main tax rate was applicable.

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation, amortisation and capital allowances

194,239

194,239

2022

Liability
£

Difference between accumulated depreciation, amortisation and capital allowances

188,982

188,982

13

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 November 2022

60,000

60,000

At 31 October 2023

60,000

60,000

Amortisation

At 1 November 2022

60,000

60,000

At 31 October 2023

60,000

60,000

Carrying amount

At 31 October 2023

-

-

At 31 October 2022

-

-

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

14

Tangible assets

Land and buildings
£

Fixtures and fittings
 £

Motor vehicles
 £

Computer equipment
 £

Furniture and fittings
£

Total
£

Cost or valuation

At 1 November 2022

6,794,630

679,369

131,999

45,744

267,670

7,919,412

Additions

61,709

26,133

-

16,453

14,021

118,316

Disposals

-

(136,351)

(540)

(9,881)

(125,818)

(272,590)

At 31 October 2023

6,856,339

569,151

131,459

52,316

155,873

7,765,138

Depreciation

At 1 November 2022

193,069

454,725

55,997

31,443

213,688

948,922

Charge for the year

46,524

50,852

31,942

12,945

15,232

157,495

Eliminated on disposal

-

(136,351)

(540)

(9,881)

(125,818)

(272,590)

At 31 October 2023

239,593

369,226

87,399

34,507

103,102

833,827

Carrying amount

At 31 October 2023

6,616,746

199,925

44,060

17,809

52,771

6,931,311

At 31 October 2022

6,601,561

224,644

76,002

14,301

53,982

6,970,490

Included within the net book value of land and buildings above is £6,616,746 (2022 - £6,601,561) in respect of freehold land and buildings.
 

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Motor vehicles

41,248

66,673

     

Restriction on title and pledged as security

Land and buildings with a carrying amount of £6,622,769 (2022 - £6,601,561) has been pledged as security for bank loans.

15

Debtors

2023
£

2022
£

Trade debtors

77,796

80,498

Other debtors

3,925

1,700

Prepayments and accrued income

75,186

73,057

Total current trade and other debtors

156,907

155,255

16

Cash and cash equivalents

2023
£

2022
£

Cash on hand

202

40

Cash at bank

1,824,907

1,705,585

1,825,109

1,705,625

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

17

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

22

125,071

181,554

Trade creditors

 

23,796

23,683

Social security and other taxes

 

24,212

16,561

Outstanding defined contribution pension costs

19

9,782

30,468

Other creditors

 

761,185

1,155,350

Accruals

 

48,175

31,263

Corporation tax liability

12

186,723

128,693

 

1,178,944

1,567,572

Due after one year

 

Loans and borrowings

22

2,843,630

2,942,852

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 November 2022

188,982

188,982

Increase (decrease) in existing provisions

7,710

7,710

At 31 October 2023

196,692

196,692

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £63,808 (2022 - £72,822).

Contributions totalling £9,782 (2022 - £30,468) were payable to the scheme at the end of the year and are included in creditors.

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
There are no restrictions on the distribution of dividends and the repayment of capital.

21

Reserves

Called up share capital

Called up share capital represents the nominal value of the shares issued.

Profit and loss account

Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

22

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

90,130

170,929

Hire purchase contracts

34,941

10,625

125,071

181,554

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

2,827,763

2,892,046

Hire purchase contracts

15,867

50,806

2,843,630

2,942,852

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

Bank borrowings

The variable rate secured loan facility is denominated in £ with a nominal interest rate of 2.85% above base rate, and the final instalment is due on 24 September 2036. The carrying amount at year end is £2,917,892 (2022 - £3,062,975).

The loan is secured by way of a fixed and floating charges over the undertaking and all property and assets present and future of the company.

The loan is repayable by monthly instalments.

Included in the loans and borrowings are the following amounts due after more than five years:

2023
£

2022
£

After more than five years by instalments

2,384,824

2,114,309

-

-

23

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

36,857

13,512

Later than one year and not later than five years

17,493

54,348

54,350

67,860

Less: finance charges allocated to future periods

(3,542)

(6,429)

 

50,808

61,431

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

8,133

10,156

Later than one year and not later than five years

6,623

1,510

Later than five years

6,071

-

20,827

11,666

The amount of non-cancellable operating lease payments recognised as an expense during the year was £14,135 (2022 - £10,719).

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

24

Dividends

   

2023

 

2022

   

£

 

£

Final dividend of £700.00 (2022 - £730.00) per ordinary share

 

65,000

 

67,500

         

25

Analysis of changes in net debt

At 1 November 2022
£

Financing cash flows
£

At 31 October 2023
£

Cash and cash equivalents

Cash

1,705,625

122,668

1,828,293

Borrowings

Long term borrowings

(2,942,852)

99,222

(2,843,630)

Short term borrowings

(181,554)

56,483

(125,071)

(3,124,406)

155,705

(2,968,701)

 

(1,418,781)

278,373

(1,140,408)

 

Brandon Care Limited
(Registration number: 04909187)

Notes to the Financial Statements for the Year Ended 31 October 2023

26

Related party transactions

Transactions with directors

2023

At 1 November 2022
£

Advances to director
£

Repayments by director
£

At 31 October 2023
£

Director 1 Interest free loan due from the company

569,062

35,262

(245,038)

359,286

         

Director 2 Interest free loan due from the company

569,062

35,262

(245,038)

359,286

         

Director 3 Interest free loan due from the company

397

-

(397)

-

         

2022

At 1 November 2021
£

Advances to director
£

Repayments by director
£

At 31 October 2022
£

Director 1 Interest free loan due from the company

391,583

285,438

(107,959)

569,062

         
       

Director 2 Interest free loan due from the company

391,583

285,438

(107,959)

569,062

         
       

Director 3 Interest free loan due from the company

397

-

-

397

         
       

 

Loans from related parties

Terms of loans from related parties

The above interest free loans were due to directors and are repayable on demand.