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Registered number: 08126756









Regal Care Trading Ltd









Annual report and financial statements

For the Period Ended 31 October 2023

 
Regal Care Trading Ltd
 
 
Company Information


Directors
Kanagaratnam Rajakanthan 
Dr. Charles Nicholas Rajakanthan 
Alexandra Thurlby 




Registered number
08126756



Registered office
30 Station Road
Orpington, Kent

BR6 0SA




Independent auditors
Mantax Lynton
Chatered Accountants & Statutory Auditors

2nd Floor Equitable House

7 General Gordon Square

London

United Kingdom

SE18 6FH





 
Regal Care Trading Ltd
 

Contents



Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Analysis of net debt
14
Notes to the financial statements
15 - 27

 
Regal Care Trading Ltd
 
 
Strategic report
For the Period Ended 31 October 2023

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

Business review
 
The Company has completed another successful year of trading. Despite difficult trading conditions across the care industry, the Company's turnover for the period ending 31 October 2023 increased to £21 million from £18 million in 2022. During the year, the Company has extended its accounting period from 30 September 2023 to 31 October 2023 hence the financial statements show the results of 13 months where as the comparatives show the results of 12 months. Despite increase in turnover by £3 million, due to rising costs specially in wages, rent and utilities, operating profits have slightly decreased from £1.2 million in 2022 to £1.1 million in the current year. Net assets of the business at 31 October 2023 have increased to £4.3 million from £3.4 million at 30 September 2022. The directors are pleased with the performance of the Company and believe that the Company will be able to maintain steady growth in sales and operating profits in the foreseeable future.
Quality : An established and family orientated provider our Company Ethos is reflected in all areas of the services we offer. All our homes and their teams strive to lead the field in their professions ensuring person-centred care of a high standard to our residents.
Enhanced environment : The Company has continued to improve the internal environment and external appearance in the homes. We have enhanced communal areas and created cafes and improved garden areas for our residents to use.
I
mproved training: Regal Care Trading prides itself on the high standards of training for not only our Nursing and Care teams, but also other personnel in Domestic, Kitchen, Maintenance and Leisure and Lifestyle departments.
The Company is investing in training in order to improve the employees' skill and enhance the customer service. The key to our success is our highly motivated, trained and dedicated staff team. We continue working as a team, supporting and training on each other to ensure that our resident's needs are met within a safe environment.
The Company is an equal opportunity employer and gives full and fair consideration to applications for employment made by disabled persons, having regard to their aptitudes and abilities.
New Technology: To keep in step with the world around us, we believe it is important to provide access to new technology.
 

Page 1

 
Regal Care Trading Ltd
 

Strategic report (continued)
For the Period Ended 31 October 2023

Principal risks and uncertainties
 
Principal risks include non-compliance with regulation, fee income not rising in line with the cost of providing care, lack of nursing resources and general increase in costs.
Also, the Company's activities expose it to a number of financial risks as summarised below:
Credit risk
The Company 's principal financial assets are bank balances, trade and other receivables.
The Company's credit risk is primarily attributable to its trade receivables. The major proportion of the business' receivables are from Local Authorities and Health Authorities. The amounts presented in the balance sheet are net of allowances for doubtful receivables.
It is Company policy to ensure that where a resident is privately funded, the immediate next of kin are required to sign the resident's contract. Where a resident's property is being sold to pay for their care fees the Company may require them to accept a charge on the property to secure any debt for care fees.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations the Company manages its cash flow from operations.
Insurance risk
The Company is exposed to potential claims from employees and from residents and their next of kin. In order to protect the Company from these risks the Board has put in place comprehensive cover with reputable insurers.
Future Prospects
The Company continues to improve its operating performance. The Company is well placed to grow revenue and operating profits and there are a number of opportunities to expand.
Employees
The company is an equal opportunities employer and gives full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities. Where people become disabled during the course of their employment, every effort is made to retain their services and to provide retraining, if necessary. All employees are eligible for consideration for appropriate training, career development and promotional opportunities: disabled employees are not treated differently in this respect. The company has established the practice of keeping employees informed of maters affecting them as employees and of the financial and economic factors affecting the performance of the company.
 
Page 2

 
Regal Care Trading Ltd
 

Strategic report (continued)
For the Period Ended 31 October 2023

Financial key performance indicators
 
Turnover, operating profits and net assets are considered to be financial key performance indicators for the business. 

Other key performance indicators
 
Occupancy, CQC ratings and quality of care delivered are considered to be non financial key performance indicators for the business. 


This report was approved by the board on 30 July 2024 and signed on its behalf.





................................................
Kanagaratnam Rajakanthan
Director
Page 3

 
Regal Care Trading Ltd
 
 
 
Directors' report
For the Period Ended 31 October 2023

The directors present their report and the financial statements for the period ended 31 October 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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.

Principal activity

The principal activity of the company during the year continued to be that of provision of residential care services.  The Company  provides long term nursing or residential care for mainly elderly residents. Also, the company  operates one learning disability home.

Results and dividends

The profit for the period, after taxation, amounted to £882,206 (2022 - £1,011,713).

The directors do not recommend the payment of a dividend for the year ended 31 October 2023..

Directors

The directors who served during the period were:

Kanagaratnam Rajakanthan 
Dr. Charles Nicholas Rajakanthan 
Alexandra Thurlby 

Future developments

The Company will continue on consolidating its operations and enhancing its attention on monitoring the quality of care delivered. Internal policies, procedures and systems will continued to be  enhanced and strengthened in line with the demands of the marketplace.

Page 4

 
Regal Care Trading Ltd
 
 
 
Directors' report (continued)
For the Period Ended 31 October 2023

Engagement with employees

The company's policy is to have regular staff meetings and carry out supervision and appraisals to identify matters likely affect employees interests.
All employees are eligible for consideration for appropriate training, career development and promotional opportunities; disabled people are not treated differently in this respect.
The Company has established the practice of keeping employees informed of matters affecting them as employees and of the financial and economic factors affecting the performance of the Company.

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.

Auditors

The auditorsMantax Lyntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 30 July 2024 and signed on its behalf.
 





................................................
Kanagaratnam Rajakanthan
Director
Page 5

 
Regal Care Trading Ltd
 
 
 
Independent auditors' report to the members of Regal Care Trading Ltd
 

Opinion


We have audited the financial statements of Regal Care Trading Ltd (the 'Company') for the period ended 31 October 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, 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 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 period 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.


Page 6

 
Regal Care Trading Ltd
 
 
 
Independent auditors' report to the members of Regal Care Trading Ltd (continued)


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.


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 period 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:


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 Directors' responsibilities statement set out on page 4, 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 7

 
Regal Care Trading Ltd
 
 
 
Independent auditors' report to the members of Regal Care Trading 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:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, FRS 102, relevant taxation legislation and CQC regulations.
 
We identified the greatest risks of material impact on the financial statements from irregularities, including fraud, to be override of controls by management, inappropriate revenue recognition and going concern. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, reviewing accounting estimates for biases corroborating revenue recognised by the company through agreements to supporting documentation and ensuring accounting policies are appropriate under United Kingdom Generally Accepted Accounting Practice and applicable law.
 
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
 
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.


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 8

 
Regal Care Trading Ltd
 
 
 
Independent auditors' report to the members of Regal Care Trading 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.





Janak Raj Pokhrel (Senior statutory auditor)
  
for and on behalf of
Mantax Lynton
 
Chatered Accountants & Statutory Auditors
  
2nd Floor Equitable House
7 General Gordon Square
London
United Kingdom
SE18 6FH

30 July 2024
Page 9

 
Regal Care Trading Ltd
 
 
Statement of comprehensive income
For the Period Ended 31 October 2023

2023
2022
Note
£
£

  

Turnover
 4 
21,202,239
18,017,272

Cost of sales
  
(14,016,064)
(12,381,295)

Gross profit
  
7,186,175
5,635,977

Administrative expenses
  
(6,979,532)
(6,150,306)

Other operating income
 5 
903,882
1,752,469

Operating profit
 6 
1,110,525
1,238,140

Tax on profit
 9 
(228,319)
(226,427)

Profit for the financial period
  
882,206
1,011,713

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

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

The notes on pages 15 to 27 form part of these financial statements.
Page 10

 
Regal Care Trading Ltd
Registered number: 08126756

Statement of financial position
As at 31 October 2023

31 October
30 September
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
237,991
199,926

  
237,991
199,926

Current assets
  

Debtors: amounts falling due within one year
 11 
8,146,758
7,929,675

Cash at bank and in hand
 12 
545,535
492,120

  
8,692,293
8,421,795

Creditors: amounts falling due within one year
 13 
(4,595,778)
(5,169,421)

Net current assets
  
 
 
4,096,515
 
 
3,252,374

Total assets less current liabilities
  
4,334,506
3,452,300

  

Net assets
  
4,334,506
3,452,300


Capital and reserves
  

Called up share capital 
 15 
1
1

Profit and loss account
  
4,334,505
3,452,299

  
4,334,506
3,452,300


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 July 2024.




................................................
Kanagaratnam Rajakanthan
Director

The notes on pages 15 to 27 form part of these financial statements.
Page 11

 
Regal Care Trading Ltd
 

Statement of changes in equity
For the Period Ended 31 October 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 October 2021
1
2,440,586
2,440,587


Comprehensive income for the year

Profit for the year

-
1,011,713
1,011,713


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,011,713
1,011,713


Total transactions with owners
-
-
-



At 1 October 2022
1
3,452,299
3,452,300


Comprehensive income for the period

Profit for the period

-
882,206
882,206


Other comprehensive income for the period
-
-
-


Total comprehensive income for the period
-
882,206
882,206


Total transactions with owners
-
-
-


At 31 October 2023
1
4,334,505
4,334,506


The notes on pages 15 to 27 form part of these financial statements.
Page 12

 
Regal Care Trading Ltd
 

Statement of cash flows
For the Period Ended 31 October 2023

31 October
30 September
2023
2022
£
£

Cash flows from operating activities

Profit for the financial period
1,110,525
1,238,140

Adjustments for:

Depreciation of tangible assets
105,158
133,883

Loss on disposal of tangible assets
-
(8,000)

Government grants
(903,882)
-

(Increase) in debtors
(230,483)
(1,105,691)

(Decrease)/increase in creditors
(594,232)
188,030

Corporation tax (paid)
(194,330)
(209,419)

Net cash generated from operating activities

(707,244)
236,943


Cash flows from investing activities

Purchase of tangible fixed assets
(143,223)
(150,580)

Sale of tangible fixed assets
-
8,000

Government grants received
903,882
-

Net cash from investing activities

760,659
(142,580)


Net increase in cash and cash equivalents
53,415
94,363

Cash and cash equivalents at beginning of period
492,120
397,757

Cash and cash equivalents at the end of period
545,535
492,120


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
545,535
492,120

545,535
492,120


The notes on pages 15 to 27 form part of these financial statements.

Page 13

 
Regal Care Trading Ltd
 

Analysis of Net Debt
For the Period Ended 31 October 2023




At 1 October 2022
Cash flows
At 31 October 2023
£

£

£

Cash at bank and in hand

492,120

53,415

545,535

Debt due within 1 year

(24,806)

7,201

(17,605)


467,314
60,616
527,930

The notes on pages 15 to 27 form part of these financial statements.
Page 14

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

1.


General information

Regal Care Trading Limited is a private company  limited by  shares  incorporated  in England  and Wales. The company's registration number and address of the registered office is given in the company information page of these financial statements. 

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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The presentation currency of the financial statements is the Pound Sterling, rounded to the nearest pound.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. It is derived entirely from the company's principal activities that are exempt from VAT.
Revenue earned but not invoiced during the year is recognised as revenue and included in accrued income. Similarly, amounts received in advance are deferred to next year and included in "accruals and deferred income".  
The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 15

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

2.Accounting policies (continued)

 
2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.4

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 16

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

2.Accounting policies (continued)

 
2.6

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. 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.

 
2.7

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, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
20% straight line basis
Fixtures and fittings
-
33% straight line basis
Computer equipment
-
33% straight line basis

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 17

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

2.Accounting policies (continued)

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.12

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 18

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

2.Accounting policies (continued)


2.12
Financial instruments (continued)

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management are required to make estimates and judgments which may materially affect reported income, expenses, assets, liabilities or disclosure of contingent assets and liabilities, and the valuation of investment properties, which were based on open market transactions. The estimates and assumptions are reviewed on an on-going basis and are based on historical experience and other factors that are considered to be relevant. Revision to accounting estimates are recognised in the period in which the estimate is revised.

Page 19

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

4.


Turnover

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


2023
2022
£
£

Provision of elderly care services
21,202,239
18,017,272

21,202,239
18,017,272


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
21,202,239
18,017,272

21,202,239
18,017,272



5.


Other operating income

2023
2022
£
£

Government grants receivable
903,882
1,752,469

903,882
1,752,469



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
3,100,980
2,981,154


7.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
18,000
18,000
Page 20

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
10,664,316
8,290,213

Social security costs
814,122
649,908

Cost of defined contribution scheme
152,906
122,102

11,631,344
9,062,223


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


        2023
        2022
            No.
            No.







Managers
15
18



Administrative staff
16
16



All other staff
478
435

509
469


9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
214,919
194,331


214,919
194,331


Total current tax
214,919
194,331

Deferred tax


Origination and reversal of timing differences
13,400
32,096

Total deferred tax
13,400
32,096


Taxation on profit on ordinary activities
228,319
226,427
Page 21

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023
 
9.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period/year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% upto 31 March 2023 and 25% thereafter (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,110,525
1,238,140


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
249,154
235,247

Effects of:


Capital allowances for period/year in excess of depreciation
(32,633)
(37,287)

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
(1,602)
(2,109)

Short-term timing difference leading to an increase (decrease) in taxation
13,400
32,096

Book profit on chargeable assets
-
(1,520)

Total tax charge for the period/year
228,319
226,427


Factors that may affect future tax charges

There were no factors that may affect future tax charges.



Page 22

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

10.


Tangible fixed assets







Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 October 2022
1,014,445
1,064,969
197,871
2,277,285


Additions
19,927
123,296
-
143,223



At 31 October 2023

1,034,372
1,188,265
197,871
2,420,508



Depreciation


At 1 October 2022
949,917
947,057
180,385
2,077,359


Charge for the period on owned assets
27,188
73,994
3,976
105,158



At 31 October 2023

977,105
1,021,051
184,361
2,182,517



Net book value



At 31 October 2023
57,267
167,214
13,510
237,991



At 30 September 2022
64,528
117,912
17,486
199,926

There were no capital commitments at the balance sheet date.


11.


Debtors

31 October
30 September
2023
2022
£
£


Trade debtors
1,050,161
1,350,703

Other debtors
6,878,703
6,235,198

Prepayments and accrued income
166,527
279,007

Deferred taxation
51,367
64,767

8,146,758
7,929,675


Page 23

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

12.


Cash and cash equivalents

31 October
30 September
2023
2022
£
£

Cash at bank and in hand
545,535
492,120

545,535
492,120



13.


Creditors: Amounts falling due within one year

31 October
30 September
2023
2022
£
£

Trade creditors
2,044,692
1,703,477

Corporation tax
214,919
194,330

Other taxation and social security
292,869
241,375

Other creditors
1,081,464
2,030,924

Accruals and deferred income
961,834
999,315

4,595,778
5,169,421


Page 24

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

14.


Deferred taxation






2023


£






At beginning of year
64,767


Charged to profit or loss
(13,400)



At end of year
51,367

The deferred tax asset is made up as follows:

31 October
30 September
2023
2022
£
£


Depreciation in excess of capital allowances
51,367
64,767

51,367
64,767

Page 25

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

15.


Share capital

31 October
30 September
2023
2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary shares share of £1.00
1
1



16.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £152,906 (2022 - £122,102). Contributions totaling £17,605 (2022 - £24,806) were payable to the fund at the reporting date and are included in creditors.


17.


Commitments under operating leases

At 31 October 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

31 October
30 September
2023
2022
£
£


Not later than 1 year
2,862,444
2,981,154

2,862,444
2,981,154

Page 26

 
Regal Care Trading Ltd
 
 
 
Notes to the financial statements
For the Period Ended 31 October 2023

18.


Related party transactions

During the year, the company advanced £3,402,322 (2022: £710,722) and received £1,123,028 from  Canterbury Homes Ltd, a company under common control.  Also, during the year, Canterbury Homes Limited charged rent to the Company totaling £1,483,677 (2022: £1,369,534). At balance sheet date,  Canterbury Homes Ltd owes £2,126,084 (2022: £1,330,467) to the Company which is included in other debtors. This  is unsecured and  interest free advance which is repayable on demand.
During the year, the Company advanced £268,034 (2022: £3,252,924) and received £125,000 (2022: £Nil) from Regal Trading Ltd, a company under common control.  Also, during the year, Regal Trading Ltd charged rent of £1,617,304 (2022: £1,611,619) to the company. At balance sheet date, Regal Trading Ltd owes £3,414,111 (2022: £4,888,381) to the Company which is included in other debtors. This  is unsecured and  interest free advance which is repayable on demand.
During the year, the Company repaid £1,051,048 (2022: £Nil) and received £265,202 (2022: £1,154,061) from Nicholas James Care Homes Limited, a company under the common control. At balance sheet date, amount owed to Nicholas James Care Homes Ltd was £3,597 (2022: £789,516) which is included in other creditors. This  is unsecured and interest free advance which is repayable on demand.
During the year, the Company repaid the advances received from a connected company of £334,803 in full. Amount owed to the company under common control at the year end was £Nil (2022: £334,803).  


19.


Controlling party

The company is controlled by Mr K Rajakanthan.


20.


Comparatives

During the year, the Company has extended its accounting period from 30 September 2023 to 31 October 2023, hence the financial statements show the results of 13 months ending on 31 October 2023 where as the comparatives show the results of 12 months ending on 30 September 2022.
 
Page 27