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REGISTERED NUMBER: 11176393 (England and Wales)















SAFFRONLAND INVESTMENTS LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023






SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Income Statement 7

Consolidated Other Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 15


SAFFRONLAND INVESTMENTS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2023







DIRECTORS: Mr A M Lakhani
Mr A D Lakhani





REGISTERED OFFICE: Maple House
121B Winchester Road
Chandlers Ford
Eastleigh
Hampshire
SO53 2DR





REGISTERED NUMBER: 11176393 (England and Wales)





AUDITORS: Rothmans Audit LLP
Statutory Auditors
Chartered Accountants
Fryern House
125 Winchester Road
Chandlers Ford
Hampshire
SO53 2DR

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023


The directors present their strategic report of the company and the group for the year ended 31 July 2023.

REVIEW OF BUSINESS
The care homes continue to provide qualitative services as verified by independent regulatory authority checks.

There has been a focus on pivoting the Group’s activities incrementally into provision of complex care including conversion of buildings/facilities into accomodation that is more suitably aligned to the needs to such service users, the emphasis being an offering both on qualitative care and accomodation.

As noted in the prior year, the directors had anticipated some contraction in revenue to accommodate the process of buildings' conversion and build-up of appropriate referrals for the complex care facilities, which is reflected in the current year turnover. Due to this ongoing strategy one home closed during the period, with another closing post year end.

The Group has also been dealing with a challenging year given the UK economic conditions, with impacts from rising costs across the board, particularly in energy costs. The transition period to more complex care services, combined with these difficult conditions, have lead to decrease in the results.

However the directors are confident of sustained incremental revenue and margin contribution as the re-provisioned facilities mature given the limited provision of such facilities nationally.

Turnover for the year ended 31 July 2023 totalled £14,322,631 (2022: £15,042,582), with a gross profit of £2,904,684 (2022: £3,730,688).

The average occupancy rate during the year was 84% (2022: 77%).

FUTURE DEVELOPMENTS
The site based in Redhill, Surrey has now opened and is operational having been converted and registered for complex care provision. In addition several elderly care services have been decanted and closed pending conversion into complex care facilities for people with Acquired Brain Injuries and Mental Health related needs. It is anticipated these will take the form of specialist care apartments, similar to the Redhill site. The form of building conversion will also ensure the facilities are person centred and exceed current and possibly future regulatory requirements.

PRINCIPAL RISKS AND UNCERTAINTIES
The key business risks and uncertainties relate to the current economic climate and possible cut backs by the referring agencies in terms of care purchasing. The Group has taken measures to refine its services provision and reconfigure its care categories with a view to targeting new sustainable income streams.

FINANCIAL RISK MANAGEMENT
The Group recognises the potential of financial risks given the current economic climates and is active in managing such risks.

LIQUIDITY RISKS
The directors recognise the importance of funding and liquidity under the current economic climate and will continue to monitor the Group's financial resources to ensure that the Group is able to support its activities and future growth.

INTEREST RATE AND CASH FLOW RISKS
The Group has interest bearing liabilities such as bank loans which attracts interest at variable SONIA rates. The Group manages the liquidity risk by ensuring there are sufficient funds to meet amounts due.

ON BEHALF OF THE BOARD:





Mr A M Lakhani - Director


27 June 2024

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023


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

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

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

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

Mr A M Lakhani
Mr A D Lakhani

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

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

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

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

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

AUDITORS
The auditors, Rothmans Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr A M Lakhani - Director


27 June 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SAFFRONLAND INVESTMENTS LIMITED


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

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

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

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

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

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

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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SAFFRONLAND INVESTMENTS LIMITED


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

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

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

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

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

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

We obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect of the operations of the Group. The key laws and relations we considered in this context included the UK Companies Act and the Care Quality Commission (CQC) regulations.

Discussions were held within the engagement team regarding how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential risk areas such as the completeness of revenue and liabilities. Audit procedures were designed to ensure all of the risks were addressed.

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

o enquiring of management as to actual and potential litigation and claims;
o reviewing any correspondence with regulators and the Group's legal advisors; and
o reviewing reports from CQC inspections and action plans.

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

o performed analytical procedures to identify any unusual or unexpected relationships; and
o tested journal entries to identify unusual transactions and bias.

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 director and other management and the inspection of regulatory and legal correspondence, if any.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SAFFRONLAND INVESTMENTS LIMITED


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




Liz Martyn ACA (Senior Statutory Auditor)
for and on behalf of Rothmans Audit LLP
Statutory Auditors
Chartered Accountants
Fryern House
125 Winchester Road
Chandlers Ford
Hampshire
SO53 2DR

28 June 2024

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Notes £ £

TURNOVER 3 14,322,631 15,042,582

Cost of sales 11,417,947 11,311,894
GROSS PROFIT 2,904,684 3,730,688

Administrative expenses 2,580,775 2,156,004
323,909 1,574,684

Other operating income 4 43,639 494,359
OPERATING PROFIT 6 367,548 2,069,043

Interest receivable and similar income 2,770 1,693
370,318 2,070,736

Interest payable and similar expenses 7 803,048 880,620
(LOSS)/PROFIT BEFORE TAXATION (432,730 ) 1,190,116

Tax on (loss)/profit 8 (275,222 ) 307,131
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (157,508 ) 882,985
(Loss)/profit attributable to:
Owners of the parent (157,508 ) 882,985

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Notes £ £

(LOSS)/PROFIT FOR THE YEAR (157,508 ) 882,985


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(157,508

)

882,985

Total comprehensive income attributable to:
Owners of the parent (157,508 ) 882,985

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

CONSOLIDATED BALANCE SHEET
31 JULY 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible assets 10 39,457,391 39,670,579
Investments 11 - -
39,457,391 39,670,579

CURRENT ASSETS
Stocks 12 960,550 960,550
Debtors 13 1,131,007 1,443,605
Cash at bank 116,883 1,351,740
2,208,440 3,755,895
CREDITORS
Amounts falling due within one year 14 22,442,318 8,237,222
NET CURRENT LIABILITIES (20,233,878 ) (4,481,327 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

19,223,513

35,189,252

CREDITORS
Amounts falling due after more than one
year

15

-

(15,950,496

)

PROVISIONS FOR LIABILITIES 18 (197,178 ) (54,912 )
NET ASSETS 19,026,335 19,183,844

CAPITAL AND RESERVES
Called up share capital 19 200 200
Merger reserve 20 15,000,222 15,000,222
Retained earnings 20 4,025,913 4,183,422
SHAREHOLDERS' FUNDS 19,026,335 19,183,844

The financial statements were approved by the Board of Directors and authorised for issue on 27 June 2024 and were signed on its behalf by:





Mr A M Lakhani - Director


SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

COMPANY BALANCE SHEET
31 JULY 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible assets 10 - -
Investments 11 15,000,422 15,000,422
15,000,422 15,000,422

CURRENT ASSETS
Debtors 13 4,278,737 4,880,120

CREDITORS
Amounts falling due within one year 14 2,992,856 3,594,239
NET CURRENT ASSETS 1,285,881 1,285,881
TOTAL ASSETS LESS CURRENT
LIABILITIES

16,286,303

16,286,303

CAPITAL AND RESERVES
Called up share capital 19 200 200
Merger reserve 20 15,000,222 15,000,222
Retained earnings 20 1,285,881 1,285,881
SHAREHOLDERS' FUNDS 16,286,303 16,286,303

Company's loss for the financial year - (222,000 )

The financial statements were approved by the Board of Directors and authorised for issue on 27 June 2024 and were signed on its behalf by:





Mr A M Lakhani - Director


SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023

Called up
share Retained Merger Total
capital earnings reserve equity
£ £ £ £
Balance at 1 August 2021 200 3,300,437 15,000,222 18,300,859

Changes in equity
Total comprehensive income - 882,985 - 882,985
Balance at 31 July 2022 200 4,183,422 15,000,222 19,183,844

Changes in equity
Total comprehensive income - (157,508 ) - (157,508 )
Balance at 31 July 2023 200 4,025,914 15,000,222 19,026,336

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023

Called up
share Retained Merger Total
capital earnings reserve equity
£ £ £ £
Balance at 1 August 2021 200 1,507,881 15,000,222 16,508,303

Changes in equity
Total comprehensive income - (222,000 ) - (222,000 )
Balance at 31 July 2022 200 1,285,881 15,000,222 16,286,303

Changes in equity
Balance at 31 July 2023 200 1,285,881 15,000,222 16,286,303

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 943,184 2,407,129
Interest paid (917,795 ) (589,508 )
Tax paid (212,681 ) (55,073 )
Taxation refund - 137,046
Net cash from operating activities (187,292 ) 1,899,594

Cash flows from investing activities
Purchase of tangible fixed assets (225,703 ) (131,627 )
Interest received 2,770 369
Net cash from investing activities (222,933 ) (131,258 )

Cash flows from financing activities
Loan repayments in year (346,000 ) (1,210,780 )
Amount withdrawn by directors (478,632 ) (802,609 )
Net cash from financing activities (824,632 ) (2,013,389 )

Decrease in cash and cash equivalents (1,234,857 ) (245,053 )
Cash and cash equivalents at beginning
of year

2

1,351,740

1,596,793

Cash and cash equivalents at end of year 2 116,883 1,351,740

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023


1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£ £
(Loss)/profit before taxation (432,730 ) 1,190,116
Depreciation charges 438,890 411,485
Finance costs 803,048 880,620
Finance income (2,770 ) (1,693 )
806,438 2,480,528
Decrease/(increase) in trade and other debtors 312,598 (598,911 )
(Decrease)/increase in trade and other creditors (175,852 ) 525,512
Cash generated from operations 943,184 2,407,129

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2023
31/7/23 1/8/22
£ £
Cash and cash equivalents 116,883 1,351,740
Year ended 31 July 2022
31/7/22 1/8/21
£ £
Cash and cash equivalents 1,351,740 1,596,793


3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1/8/22 Cash flow changes At 31/7/23
£ £ £ £
Net cash
Cash at bank 1,351,740 (1,234,857 ) 116,883
1,351,740 (1,234,857 ) 116,883
Debt
Debts falling due
within 1 year (1,068,251 ) 346,000 (15,835,749 ) (16,558,000 )
Debts falling due
after 1 year (15,950,496 ) - 15,950,496 -
(17,018,747 ) 346,000 114,747 (16,558,000 )
Total (15,667,007 ) (888,857 ) 114,747 (16,441,117 )

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023


1. STATUTORY INFORMATION

Saffronland Investments Limited was incorporated on 30 January 2018 under the Companies Act 2006 as a private limited company and is registered in England and Wales. The Company is a holding company and the Group's principal activity is that of residential care facilities. The address of its registered office is 121B Winchester Road, Chandlers Ford, Eastleigh, Hampshire, SO53 2DR.

2. ACCOUNTING POLICIES

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

The presentation currency is £ sterling.

Going concern
The financial statements have been prepared on the going concern basis.

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

- the requirements of Section 7 Statement of Cash Flows;
- the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a),
11.48(b) and 11.48(c);
- the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method. The results of companies acquired or disposed of are included in the consolidated Income Statement after or up to the date that control passes respectively. As a consolidated Group Income Statement is published, a separate Income Statement for the parent company is omitted from the Group financial statements by virtue of section 408 of the Companies Act 2006.

Related party disclosures
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of assets
Management use their judgement to determine if there are any indicators of impairment.

Classification of freehold properties
Management use their judgment to determine the use of properties and to determine that these are correctly classified.

Other key sources of estimation uncertainty;

Tangible fixed assets
Management estimate the useful life and residual value of tangible assets based on market information and their knowledge of the business, the remaining life of the asset and projected disposal value.

Turnover
Turnover is generated from the provision of residential care services.

Turnover is recognised based on the occupation of the residential care homes and adjusted for accrued and deferred income where necessary.

Turnover is exempt from Value Added Tax.

Tangible fixed assets
All fixed assets are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

The cost of fixed assets initially recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Freehold propertyStraight line over 120 - 150 years
Plant and machinery25% reducing balance
Fixtures and fittings25% reducing balance
Motor vehicles25% reducing balance
Computer equipment25% reducing balance

Freehold land is not depreciated.

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Consolidated Income Statement.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Net realisable value is based on estimated selling price less additional costs to completion and disposal.


SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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

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

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

Investments
Investments in subsidiaries are stated at cost less provision for impairment.

Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remaining with the lessor are charged to the Consolidated Income Statement on a straight line basis over the period of the lease.

Financial instruments
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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the Consolidated Income Statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Finance costs
Finance costs are charged to the Consolidated Income Statement over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction on the proceeds of the associated capital instrument.

Pension costs and other post-retirement benefits
The Group operates a defined contribution pension scheme. Contributions payable to the Group's pension scheme are charged to the Consolidated Income Statement in the period to which they relate.

Government grants
Grants of a revenue nature are credited to the Consolidated Income Statement in the period which they relate in accordance with the terms of the grant, on an accruals basis. Any accrued or deferred element of the grant is included in debtors or creditors as applicable. All grants received in both the current and prior period relate to COVID-19 support.

3. TURNOVER

The turnover and profits before taxation are attributable to one principal activity of the group and all arose in the United Kingdom.

The turnover is generated from the provision of residential care services.

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


4. OTHER OPERATING INCOME
2023 2022
£ £
Sundry receipts - 2,302
Government grants 43,639 492,057
43,639 494,359

5. EMPLOYEES AND DIRECTORS
2023 2022
£ £
Wages and salaries 9,999,320 9,996,330
Social security costs 422,165 361,535
Other pension costs 103,844 88,914
10,525,329 10,446,779

The average number of employees during the year was as follows:
2023 2022

Nursing and catering - full time 171 171
Nursing and catering - part time 53 69
224 240

2023 2022
£ £
Directors' remuneration - -

6. OPERATING PROFIT

The Group operating profit is stated after charging/(crediting):

2023 2022
£ £

Depreciation - owned assets 438,740 411,485
Hire of plant and machinery 28,983 40,568
Operating lease payments 29,400 33,600

Fees payable to the company's auditor for:
Audit of the company's annual accounts 4,500 3,600

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£ £
Other interest 29,950 116,061
Bank interest 769,592 737,248
Other similar charges 3,506 27,311
803,048 880,620

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


8. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax (44,979 ) 295,000
Over/under provision in prior
year (372,510 ) (42,781 )
Total current tax (417,489 ) 252,219

Deferred tax 142,267 54,912
Tax on (loss)/profit (275,222 ) 307,131

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

2023 2022
£ £
(Loss)/profit before tax (432,730 ) 1,190,116
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25 % (2022 - 19 %)

(108,183

)

226,122

Effects of:
Expenses not deductible for tax purposes 82,091 68,996
Adjustments to tax charge in respect of previous periods (372,510 ) (42,781 )
Movement in deferred tax unprovided (280 ) 48,191
Movement in deferred tax - changes in tax rates 187 13,178
Impact of super deduction (4,814 ) (6,575 )
Differences in tax rates on losses carried back 14,204 -
Provision for deferred tax on capital allowance claim 114,083 -
Total tax (credit)/charge (275,222 ) 307,131

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


10. TANGIBLE FIXED ASSETS

Group
Fixtures
Freehold Plant and and
property machinery fittings
£ £ £
COST
At 1 August 2022 40,547,649 23,744 622,661
Additions 55,261 - 161,786
Disposals - (15,342 ) (77,446 )
At 31 July 2023 40,602,910 8,402 707,001
DEPRECIATION
At 1 August 2022 1,147,538 19,856 375,402
Charge for year 340,820 1,248 88,226
Eliminated on disposal - (15,342 ) (77,446 )
At 31 July 2023 1,488,358 5,762 386,182
NET BOOK VALUE
At 31 July 2023 39,114,552 2,640 320,819
At 31 July 2022 39,400,111 3,888 247,259

Motor Computer
vehicles equipment Totals
£ £ £
COST
At 1 August 2022 9,095 40,817 41,243,966
Additions - 8,656 225,703
Disposals - (9,237 ) (102,025 )
At 31 July 2023 9,095 40,236 41,367,644
DEPRECIATION
At 1 August 2022 8,881 21,711 1,573,388
Charge for year 214 8,382 438,890
Eliminated on disposal - (9,237 ) (102,025 )
At 31 July 2023 9,095 20,856 1,910,253
NET BOOK VALUE
At 31 July 2023 - 19,380 39,457,391
At 31 July 2022 214 19,106 39,670,578

Included in cost of land and buildings is freehold land of £2,060,000 (2022: £2,060,000) which is not depreciated.

The freehold properties are secured against the groups bank loan.

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£
COST
At 1 August 2022
and 31 July 2023 15,000,422
NET BOOK VALUE
At 31 July 2023 15,000,422
At 31 July 2022 15,000,422


The principal undertakings in which the Company had an interest at the year end are as follows:



Subsidiary undertakings



Class of share
capital held
Proportion of
share capital
held


Nature of business
Saffronland Group Limited Ordinary 100% Holding company
Saffronland Homes 1 Limited * Ordinary 100% Nursing & residential care homes
Saffronland Homes 2 Limited * Ordinary 100% Nursing & residential care homes
Saffronland Homes 3 Limited * Ordinary 100% Nursing & residential care homes
Saffronland Care Limited * Ordinary 100% Holding company
Homebeech Limited * Ordinary 100% Nursing & residential care homes

* - subsidiaries indirectly held by Saffronland Investments Limited.

All of the above companies are incorporated in England and Wales, and their registered office address is 121B Winchester Road, Chandlers Ford, Eastleigh, Hampshire, SO53 2DR.

12. STOCKS

Group
2023 2022
£ £
Stocks 960,550 960,550

The carrying value of stock includes £910,000 (2022: £910,000) pledged as security against the groups bank loan.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£ £ £ £
Trade debtors 939,304 1,182,312 - -
Amounts owed by group undertakings - - 4,278,737 4,880,120
Other debtors 32,950 9,609 - -
Prepayments and accrued income 158,753 251,684 - -
1,131,007 1,443,605 4,278,737 4,880,120

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£ £ £ £
Bank loans and overdrafts (see note 16) 16,558,000 1,068,251 - -
Trade creditors 1,659,366 1,668,562 - -
Corporation tax 523,791 1,153,960 - -
Social security and other taxes 35,952 27,437 - -
Other creditors 610,723 696,810 155,000 277,751
Director's current account 2,837,856 3,316,488 2,837,856 3,316,488
Accruals and deferred income 216,630 305,714 - -
22,442,318 8,237,222 2,992,856 3,594,239

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2023 2022
£ £
Bank loans (see note 16) - 15,950,496

16. LOANS

An analysis of the maturity of loans for the Group is given below:

2023 2022
£    £   

Amounts falling due within one year 16,558,000 1,034,223
Amounts falling due between one and two years - 15,948,160
16,558,000 16,982,383

The above represents the liability at the year end, before amortised cost adjustments.

The Group's loans are with Coutts & Company.

The loan facilities are due for repayment in full before 20 August 2023. Capital and interest payments are paid quarterly. Until August 2021, interest was charged on the loans at variable LIBOR plus 2.55% until termination of the loans. From August 2021, interest is charged on the loans at variable SONIA plus 2.55% until termination of the loans.

The loans are secured by way of legal charge on the following:

a) Freehold properties of the subsidiary companies of Saffronland Group Limited - Saffronland Homes 1
Limited, Saffronland Homes 2 Limited, Saffronland Homes 3 Limited and Homebeech Limited.
b) Unlimited cross guarantee from all subsidiaries of Saffronland Investments Limited.
c) Fixed floating debenture over the assets and undertakings of all subsidiaries of Saffronland Investments
Limited.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


Group
Non-cancellable
operating leases
2023 2022
£ £
Within one year 37,855 38,411
Between one and five years 158,904 7,253
In more than five years 86,250 -
283,009 45,664

18. PROVISIONS FOR LIABILITIES

Group
2023 2022
£ £
Deferred tax 197,178 54,912

Group
Deferred tax
£
Balance at 1 August 2022 54,912
Charge to Income Statement during year 142,266
Balance at 31 July 2023 197,178

The deferred tax liability relates solely to accelerated capital allowances.

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
200 Ordinary £1 200 200

Shares rank equally for voting purposes. On a show of hands each member shall have one vote and on a poll each member shall have one vote per share. The voting rights are more particularly described in the articles of association.

20. RESERVES

Group
Retained Merger
earnings reserve Totals
£ £ £

At 1 August 2022 4,183,421 15,000,222 19,183,643
Deficit for the year (157,508 ) (157,508 )
At 31 July 2023 4,025,913 15,000,222 19,026,135

SAFFRONLAND INVESTMENTS LIMITED (REGISTERED NUMBER: 11176393)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


20. RESERVES - continued

Company
Retained Merger
earnings reserve Totals
£ £ £

At 1 August 2022 1,285,881 15,000,222 16,286,103
Profit for the year - -
At 31 July 2023 1,285,881 15,000,222 16,286,103

Retained earnings includes all current and prior period retained profits.

On 26 July 2018 Saffronland Investments Limited acquired Saffronland Group Limited via a share for share exchange. At the same time, Saffronland Group Limited acquired Saffronland Homes 1 Limited, Saffronland Homes 2 Limited and Saffronland Homes 3 Limited through a share for share exchange. The consideration was the issue by the two holding companies of 100 ordinary share of £1 each. The investments acquired have been recognised at fair value, resulting in a merger reserve on acquisition.

21. RELATED PARTY DISCLOSURES

At the balance sheet date the Group owed Mr A M Lakhani £2,837,856 (2022: £3,316,488) in the form of a Director's loan. During the year interest of £Nil (2022: £125,000) was charged to the Consolidated Income Statement in relation to this loan.

Associated entities which have common control with the group have outstanding balances at the period end. At the period end there is £Nil (2022: £Nil) included within other debtors and £130,000 (2022: £130,000) included within other creditors. During the year £nil was charged from associated entities (2022: £130,000).

22. POST BALANCE SHEET EVENTS

On 18 March 2024 the company renewed its loan facility with Coutts bank. The facility totalled £17m with a margin of 2.55% over base rate. The facility is in place for 5 years.

Sandmartins care home closed in August 2023, with a view to redevelop the property to maximise its potential for complex care provision.

23. ULTIMATE CONTROLLING PARTY

Mr A M Lakhani is the ultimate controlling party of the Company by virtue of his majority shareholding.