Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31truetruetruetruetruetrueNo description of principal activitytruetruetruetruetruetruetruetruetruetruefalse2023-01-01265245 04584055 2023-01-01 2023-12-31 04584055 2022-01-01 2022-12-31 04584055 2023-12-31 04584055 2022-12-31 04584055 2022-01-01 04584055 c:Director1 2023-01-01 2023-12-31 04584055 c:Director2 2023-01-01 2023-12-31 04584055 c:Director3 2023-01-01 2023-12-31 04584055 c:Director3 2023-12-31 04584055 c:Director4 2023-01-01 2023-12-31 04584055 c:Director5 2023-01-01 2023-12-31 04584055 c:Director5 2023-12-31 04584055 c:Director6 2023-01-01 2023-12-31 04584055 c:Director6 2023-12-31 04584055 c:RegisteredOffice 2023-01-01 2023-12-31 04584055 d:PlantMachinery 2023-01-01 2023-12-31 04584055 d:PlantMachinery 2023-12-31 04584055 d:PlantMachinery 2022-12-31 04584055 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04584055 d:MotorVehicles 2023-01-01 2023-12-31 04584055 d:MotorVehicles 2023-12-31 04584055 d:MotorVehicles 2022-12-31 04584055 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04584055 d:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 04584055 d:OtherPropertyPlantEquipment 2023-12-31 04584055 d:OtherPropertyPlantEquipment 2022-12-31 04584055 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04584055 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04584055 d:CurrentFinancialInstruments 2023-12-31 04584055 d:CurrentFinancialInstruments 2022-12-31 04584055 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 04584055 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 04584055 d:ReportableOperatingSegment1 2023-01-01 2023-12-31 04584055 d:ReportableOperatingSegment1 2022-01-01 2022-12-31 04584055 d:UKTax 2023-01-01 2023-12-31 04584055 d:UKTax 2022-01-01 2022-12-31 04584055 d:ShareCapital 2023-12-31 04584055 d:ShareCapital 2022-12-31 04584055 d:ShareCapital 2022-01-01 04584055 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 04584055 d:RetainedEarningsAccumulatedLosses 2023-12-31 04584055 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 04584055 d:RetainedEarningsAccumulatedLosses 2022-12-31 04584055 d:RetainedEarningsAccumulatedLosses 2022-01-01 04584055 c:OrdinaryShareClass1 2023-01-01 2023-12-31 04584055 c:OrdinaryShareClass1 2023-12-31 04584055 c:OrdinaryShareClass1 2022-12-31 04584055 c:FRS101 2023-01-01 2023-12-31 04584055 c:Audited 2023-01-01 2023-12-31 04584055 c:FullAccounts 2023-01-01 2023-12-31 04584055 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 04584055







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


MILEWOOD HEALTHCARE LTD






































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MILEWOOD HEALTHCARE LTD
 


 
COMPANY INFORMATION


Directors
H K Arora 
A R Carpentier De Changy 
C P Hartshorne (resigned 4 January 2023)
M Lefebvre 
S T Foxall-Smith (appointed 4 January 2023)
M Heginbotham (appointed 17 November 2023)




Registered number
04584055



Registered office
1st Floor
1 Lakeside Headlands Business Park

Salisbury Road

Blashford Ringwood

United Kingdom

BH24 3PB




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

3000a Parkway

Whiteley

Hampshire

PO15 7FX





 


MILEWOOD HEALTHCARE LTD
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 21


 


MILEWOOD HEALTHCARE LTD
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review
 
The directors are satisfied with the results for the period, which have been achieved in a challenging world. The directors aim to provide a balanced and comprehensive review of the development and performance of the business, which despite market pressure has seen the company continue to build its residential home and supported living units principally in the north of England as supported by the financial statements for the year.

Principal risks and uncertainties
 
Financial
The company is exposed to risks arising from economic, political, and legislative changes, in particular to changes in the National Living Wage. Although the company is clearly not able to influence changes in interest rates, inflation and other economic factors, the directors closely monitor performance in all key areas and adapt policy decision accordingly.   
The company realises that its relationships with its suppliers and customers is key to its success and as such works closely with them to build long lasting business relationships. 
Staff recruitment 
The company’s success is dependent on its staff and the ability to recruit and maintain good quality staff. The company invests in training and through induction and aims to provide a safe and secure workplace for all individuals.
Occupancy 
The company’s occupancy levels are key to its continued success and any significant reduction would have an adverse effect on the results of the company. Occupancy levels are maintained through continued close working with the local authorities.
Legislation and regulation 
The company’s care home activities are monitored by the Care Quality Commission (CQC). The company takes its responsibility seriously and puts into place the necessary checks and monitoring to ensure compliance and is always willing to work with the CQC to maintain and improve standards.
Community and environment
The company understands how important friendship and interaction with others are as part of life in the community. Therefore, we create an environment that encourages this to happen naturally. It's why you'll see excellent interaction between staff and service users in each of our homes, with close friendships also developing between the service users themselves. We acknowledge that the care homes are deeply within communities and all efforts are made to blend in and respect all parties concerned. 

Page 1

 


MILEWOOD HEALTHCARE LTD
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The company monitors non-financial indictors in striving to provide a high standard of care and to improving service user lives and continue to receive positive feedback from service user and their families through the continued Quality assurance procedures.
The company also constantly reviews Key Performance Indicators (KPI’s) that include fees received, payroll costs and operating profit which are detailed in the financial statements, some of these are detailed below:

2023
2022
        £
        £
Revenue

14,649,456

14,323,474
 
Operating Profit

111,425

1,456,461
 
Property, plant & equipment values

1,628,556

954,144
 
Net assets

16,241,728

16,105,806
 


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


................................................
H K Arora
Director

Date: 22 July 2024

Page 2

 


MILEWOOD HEALTHCARE LTD
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £135,922 (2022 - £1,502,206).

Directors

The directors who served during the year were:

H K Arora 
A R Carpentier De Changy 
C P Hartshorne (resigned 4 January 2023)
M Lefebvre 
S T Foxall-Smith (appointed 4 January 2023)
M Heginbotham (appointed 17 November 2023)

Disclosure of information to auditors

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

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

Post balance sheet events

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

Page 3

 


MILEWOOD HEALTHCARE LTD
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





................................................
H K Arora
Director

Date: 22 July 2024

Page 4

 


MILEWOOD HEALTHCARE LTD
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MILEWOOD HEALTHCARE LTD

Opinion


We have audited the financial statements of Milewood Healthcare Ltd (the 'company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (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 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 


MILEWOOD HEALTHCARE LTD


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MILEWOOD HEALTHCARE LTD (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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

 
Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 6

 


MILEWOOD HEALTHCARE LTD


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MILEWOOD HEALTHCARE LTD (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

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


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

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety. Compliance with CQC regulations and reviews are also key
requirements on the Company and Group that may impact the Financial Statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with the legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area. 
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
-  Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
-  Challenging assumptions and judgments made by management in its significant accounting estimates; and
-  Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
-  Posting of unusual journals and complex transactions. 
-  Misappropriation of funds through fraudulent purchase ledger.
-  Manipulation of amounts subject to significant judgment or estimate.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
 


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


Page 7

 


MILEWOOD HEALTHCARE LTD


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MILEWOOD HEALTHCARE LTD (CONTINUED)

Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Andrew Galliers FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
3000a Parkway
Whiteley
Hampshire
PO15 7FX

23 July 2024
Page 8

 


MILEWOOD HEALTHCARE LTD
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
14,649,456
14,323,474

Cost of sales
  
(8,116,430)
(7,218,762)

Gross profit
  
6,533,026
7,104,712

Administrative expenses
  
(6,421,601)
(5,648,251)

Operating profit
 5 
111,425
1,456,461

Tax on profit
 8 
24,497
45,745

Profit for the financial year
  
135,922
1,502,206

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

The notes on pages 12 to 21 form part of these financial statements.

Page 9

 


MILEWOOD HEALTHCARE LTD
REGISTERED NUMBER:04584055



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 9 
1,628,556
954,143

  
1,628,556
954,143

Current assets
  

Debtors: amounts falling due within one year
 10 
13,958,525
12,620,152

Cash at bank and in hand
  
1,365,258
3,057,955

  
15,323,783
15,678,107

Creditors: amounts falling due within one year
 11 
(710,611)
(526,444)

Net current assets
  
 
 
14,613,172
 
 
15,151,663

Total assets less current liabilities
  
16,241,728
16,105,806

  

Net assets
  
16,241,728
16,105,806


Capital and reserves
  

Called up share capital 
 12 
5,000
5,000

Profit and loss account
 13 
16,236,728
16,100,806

  
16,241,728
16,105,806


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




................................................
H K Arora
Director

Date: 22 July 2024

The notes on pages 12 to 21 form part of these financial statements.

Page 10

 


MILEWOOD HEALTHCARE LTD
 



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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
5,000
14,598,600
14,603,600


Comprehensive income for the year

Profit for the year
-
1,502,206
1,502,206



At 1 January 2023
5,000
16,100,806
16,105,806


Comprehensive income for the year

Profit for the year
-
135,922
135,922


At 31 December 2023
5,000
16,236,728
16,241,728


The notes on pages 12 to 21 form part of these financial statements.

Page 11

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Milewood Healthcare Ltd 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 principal activity of the Company in the year under review was that of the operation of care home facilities for the disabled and infirmed in the U.K.
The presentational & functional currency of the financial statements is the Pound Sterling (£).
The accounts reflect a 12 month reporting period for the current and prior year.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations
the requirements of paragraph 33(c) of IFRS 5 Non Current Assets Held For Sale and Discontinued Operations
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 79(a)(iv) of IAS 1;
 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
 - paragraph 118(e) of IAS 38 Intangible Assets;
 - paragraphs 76 and 79(d) of IAS 40 Investment Property; and
 - paragraph 50 of IAS 41 Agriculture
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
Page 12

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.2
Financial Reporting Standard 101 - reduced disclosure exemptions (continued)

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
the requirements of paragraph 74A(b) of IAS 16
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

This information is included in the consolidated financial statements of Care Tree Holding Ltd as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
The company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the company does not adjust any of the transaction prices for the time value of money.

Rendering of services

Turnover from providing services is recognised in the accounting period in which the services are rendered.

For fixed-price contracts, turnover is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.

 
2.4

Leases

Amounts designated as rents paid in the statement of comprehensive income represent amounts payable to the parent company who own the properties used for trading purposes. The payments are not subject to a formal lease agreement but have been calculated making reference to a long term loan facility to represent the amounts required to service the loan facility and associated interest charges of the ultimate holding company. The amounts payable therefore do not represent a right to use asset under the definitions of IFRS 16.

Page 13

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

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

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

 
2.6

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
25%
on reducing balance
Motor vehicles
-
25%
on reducing balance
Improvements to property
-
20%
on cost

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.7

Financial instruments

The company recognises financial instruments when it becomes a party to the contractual arrangements of the
instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
All of the company's financial assets are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.
Impairment of financial assets
The company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.
Financial liabilities
Fair value through profit or loss
Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship.
At amortised cost
Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.

Page 15

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Management make estimates and assumptions concerning the future The resulting accounting estimates and judgements by definition, seldom equal the actual results. There are no estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial period. 
In particular management have considered the impact of IFRS16 Leases regarding motor vehicles. Management are of the opinion that monthly rentals be charged to the statement of comprehensive income as they are due and have not recognised a "right to use" asset on the basis any adjustment for this financial period and prior periods would be immaterial. 


4.


Turnover

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


2023
2022
£
£

Care home services
14,649,456
14,323,474

14,649,456
14,323,474


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
23,997
22,207


6.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
10,500
10,000

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 16

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
6,693,460
5,984,954

Social security costs
548,312
489,008

Cost of defined contribution scheme
121,790
104,224

7,363,562
6,578,186


The Directors do not receive remuneration from the Company.

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


        2023
        2022
            No.
            No.







Care home staff
265
245

Page 17

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
49,301

Adjustments in respect of previous periods
(24,497)
(95,046)


Total current tax
(24,497)
(45,745)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
111,425
1,456,461


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
26,207
276,728

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(30,339)
5,499

Over provision of tax in the prior year
(24,497)
(95,047)

Group relief
4,132
(232,925)

Total tax charge for the year
(24,497)
(45,745)

Page 18

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Tangible fixed assets





Plant and machinery
Motor vehicles
Improvement to property
Total

£
£
£
£



Cost or valuation


At 1 January 2023
38,514
165,071
2,878,662
3,082,247


Additions
-
26,271
1,087,783
1,114,054


Disposals
-
(6,585)
-
(6,585)



At 31 December 2023

38,514
184,757
3,966,445
4,189,716



Depreciation


At 1 January 2023
33,864
92,331
2,001,909
2,128,104


Charge for the year on owned assets
1,208
21,843
415,766
438,817


Disposals
-
(5,761)
-
(5,761)



At 31 December 2023

35,072
108,413
2,417,675
2,561,160



Net book value



At 31 December 2023
3,442
76,344
1,548,770
1,628,556



At 31 December 2022
4,650
72,740
876,753
954,143


10.


Debtors

2023
2022
£
£


Trade debtors
598,263
640,941

Amounts owed by group undertakings
13,213,129
11,832,737

Other debtors
119,634
146,474

Prepayments and accrued income
27,499
-

13,958,525
12,620,152


Balances with group undertakings carry no interest and are repayable on demand

Page 19

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
346,518
182,239

Amounts owed to group undertakings
88,714
-

Corporation tax
-
77,091

Other taxation and social security
132,657
97,030

Other creditors
122,994
153,284

Accruals and deferred income
19,728
16,800

710,611
526,444


Balances with group undertakings carry no interest and are repayable on demand


12.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



5,000 (2022 - 5,000) Ordinary A shares of £1.00 each
5,000
5,000


The company has one class of ordinary shares, which carry no right to fixed income. 



13.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.


14.


Pension commitments

The company operates a defined contribution scheme. The pension charge for the period represents contributions
payable by the company to the scheme and amounted to £121,790 (2022 - £104,224). At the balance sheet date there were contributions outstanding of £Nil (2022 - £22,562).


15.


Controlling party

The company's immediate parent undertaking is Milewood (Holdings) Ltd.
The company's ultimate parent undertaking is Care Tree Holding Ltd, a company incorporated in England and Wales and whose registered office is 1st Floor, 1 Lakeside Headlands Business Park, Salisbury Road, Blashford Ringwood, United Kingdom, BH23 3PB. Copies of group financial statements may be obtained from the Registrar of Companies for England & Wales.

Page 20

 


MILEWOOD HEALTHCARE LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Contingent liabilities

The company has given a cross guarantee with other group members, Care Network Solutions Limited, Milewood (Holdings) Ltd, Care Tree Invest Ltd and Care Tree Holding Ltd over all assets of the respective companies. 
 
Page 21