Company registration number 12453821 (England and Wales)
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
COMPANY INFORMATION
Directors
Mr A J Richards
(Appointed 31 October 2023)
Mr D K Kennedy
(Appointed 24 April 2024)
Mr A S McNutt
(Appointed 24 April 2024)
Company number
12453821
Registered office
120 Leman Street
London
E1 8EU
Auditor
KPMG LLP
1 St. Peter's Square
Manchester
M2 3AE
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report to the members of The Good Care Group at Riverstone Limited
4 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 18
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 August 2023.
Principal activities
The company was established to provide high quality care to the residents of luxury retirement communities owned and operated by the Riverstone Group of companies.
Results and dividends
The results for the year are set out on page 8. The company's profit after tax for the year was £159,335 (2022: £10,340) and net assets as at 31 August 2023 were £169,775 (2022: £10,440).
No ordinary dividends were paid (2022: £nil). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S Mistry
(Resigned 31 October 2023)
Mrs J M Renton
(Resigned 31 October 2023)
Mr D J B Sandoz
(Resigned 31 October 2023)
Mrs V Sapojnic
(Resigned 31 October 2023)
Mr A J Richards
(Appointed 31 October 2023)
Mr D K Kennedy
(Appointed 24 April 2024)
Mr A S McNutt
(Appointed 24 April 2024)
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 1 day's purchases, based on the average daily amount invoiced by suppliers during the year.
Political donations
Neither the company nor any of its subsidiaries made any political donations or incurred any political expenditure during the year.
Auditor
Following the change in ownership of the Company, KPMG LLP will not be seeking reappointment as the Company auditor and a new auditor will be appointed.
Energy and carbon report
The company does not qualify as a large company under the Streamlined Energy and Carbon Reporting (SECR) regulations and is not required to report on its emissions, energy consumption or energy efficiency activities in this reporting period.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going concern
The directors continue to adopt the going concern basis in the preparation of the financial statements.
As at 31st October 2023, the shareholders of GCG Holdings Limited agreed to sell all their shares to Elevate Care International Limited, a newly created entity under the ownership of The Halifax Group a mid-tier US private equity firm.
The new shareholders have a strong belief in the future success of the Company, due to the essential nature of the service it provides and can see opportunities for organic growth provided we can continue to attract, recruit and retain professional carers in an increasingly tight labour market.
As inflationary pressures continue, we work with our clients to ensure we receive a fair price for the services that we provide, so that we can continue to invest in our workforce. Agility, good commercial management, and careful cost control continue to be critical to our ongoing success.
To inform the basis of preparation of these accounts, the directors have performed a going concern assessment to consider cash and profit scenarios for forward trade over the next 12 months. The directors manage cash requirements across the Good Care Group headed by The Good Care Group London Limited with routine peaks in cash requirements during the trading cycle funded from the cash balance the of the Company / The Good Care Group of companies. The Good Care Group of companies have indicated their intention to continue make available such funds as are needed by the Company, through the Good Care Group cash pool, during the going concern assessment period. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
Based on these analyses and facts, the directors believe that the Company will be able to continue to meet its liabilities as they fall due for at least the next 12 months and therefore have prepared the financial statements on a going concern basis.
On behalf of the board
Mr A J Richards
Director
2 August 2024
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -
The directors are responsible for preparing 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 UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 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;
assess the company's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE GOOD CARE GROUP AT RIVERSTONE LIMITED
- 4 -
Opinion
We have audited the financial statements of The Good Care Group at Riverstone Limited (the 'Company') for the year ended 31 August 2023 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and related notes, including the accounting policies in note 1.
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 2023 and of its profit for the year then ended;
have been properly prepared in accordance with UK accounting standards, including FRS 101 and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
In our evaluation of the directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.
Our conclusions based on this work:
we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;
we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.
Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
Enquiring of directors and inspection of policy documentation as to the Company’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.
Reading Board minutes.
Considering remuneration incentive schemes and performance targets for management and directors.
Using analytical procedures to identify any unusual or unexpected relationships.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE GOOD CARE GROUP AT RIVERSTONE LIMITED
- 5 -
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
As required by auditing standards, and taking into account possible pressures to meet profit targets, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because there is no material judgement or estimation and, given the low value and high-volume nature of transactions, limited opportunity for recording material fraudulent accounting entries.
We did not identify any additional fraud risks.
We performed procedures including identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted to unusual accounts.
Identifying and responding to risks of material misstatement related to compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors and others management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. As the Company is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with regulatory requirements.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and social care act, health and safety, data protection laws, anti-bribery and employment law. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
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. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE GOOD CARE GROUP AT RIVERSTONE LIMITED
- 6 -
The directors are responsible for the directors’ report. Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon.
Our responsibility is to read the strategic report and the directors’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:
we have not identified material misstatements in the directors’ report;
in our opinion the information given in those reports for the financial year is consistent with the financial statements; and
in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit
the directors were not entitled to take advantage of the small companies exemption from requirement to prepare a strategic report.
We have nothing to report in these respects.
Director's responsibilities
As explained more fully in their 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; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities
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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE GOOD CARE GROUP AT RIVERSTONE LIMITED
- 7 -
The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
Daniel Crighton (Senior Statutory Auditor)
For and on behalf of KPMG LLP, Statutory Auditor
2 August 2024
Chartered Accountants
1 St. Peter's Square
Manchester
M2 3AE
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
2023
2022
Notes
£
£
Revenue
3
469,858
68,673
Cost of sales
(68,705)
(860)
Gross profit
401,153
67,813
Administrative expenses
(198,297)
(55,047)
Operating profit
202,856
12,766
Tax on profit
6
(43,521)
(2,426)
Profit and total comprehensive income for the financial year
159,335
10,340
All amounts above relate to continuing operations. The notes on pages 11 to 18 form part of these financial statements.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2023
31 August 2023
- 9 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
7
575
-
Current assets
Trade and other receivables
8
62,519
3,657
Cash and cash equivalents
480,397
138,084
542,916
141,741
Current liabilities
Trade and other payables
10
327,769
128,875
Current tax liabilities
45,947
2,426
373,716
131,301
Net current assets
169,200
10,440
Net assets
169,775
10,440
Equity
Called up share capital
12
100
100
Retained earnings
169,675
10,340
Total equity
169,775
10,440
The notes on pages 11 to 18 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
Mr A J Richards
Director
Company registration number 12453821
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 September 2021
100
100
Year ended 31 August 2022:
Profit and total comprehensive income
-
10,340
10,340
Balance at 31 August 2022
100
10,340
10,440
Year ended 31 August 2023:
Profit and total comprehensive income
-
159,335
159,335
Balance at 31 August 2023
100
169,675
169,775
The notes on pages 11 to 18 form part of these financial statements.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
1
Accounting policies
Company information
The Good Care Group at Riverstone Limited is a private company limited by shares incorporated in England and Wales. The registered office is 120 Leman Street, London, E1 8EU. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework ("FRS 101"). In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted international accounting standards (“UK-adopted IFRS”), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below and have been applied consistently to all periods presented in the financial statements, unless otherwise stated.
In these financial statements, the Company has applied the exemptions available under FRS 101 in respect of the following disclosures:
Cash Flow Statement and related notes;
Certain disclosures regarding revenue;
Certain disclosures regarding leases;
Comparative period reconciliations for share capital and tangible fixed assets;
Disclosures in respect of transactions with wholly owned subsidiaries; and
Disclosures in respect of the compensation of Key Management Personnel;
The Company’s ultimate parent undertaking at 31 August 2023, Sodexo S.A. includes the Company in its consolidated financial statements. The consolidated financial statements of Sodexo S.A. are prepared in accordance with International Financial Reporting Standards and are available to the public and are published on the company's website at www.sodexo.com.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern
The directors continue to adopt the going concern basis in the preparation of the financial statements.true
As at 31st October 2023, the shareholders of GCG Holdings Limited agreed to sell all their shares to Elevate Care International Limited, a newly created entity under the ownership of The Halifax Group a mid-tier US private equity firm.
The new shareholders have a strong belief in the future success of the Company, due to the essential nature of the service it provides and can see opportunities for organic growth provided we can continue to attract, recruit and retain professional carers in an increasingly tight labour market.
As inflationary pressures continue, we work with our clients to ensure we receive a fair price for the services that we provide, so that we can continue to invest in our workforce. Agility, good commercial management, and careful cost control continue to be critical to our ongoing success.
To inform the basis of preparation of these accounts, the directors have performed a going concern assessment to consider cash and profit scenarios for forward trade over the next 12 months. The directors manage cash requirements across the Good Care Group headed by The Good Care Group London Limited with routine peaks in cash requirements during the trading cycle funded from the cash balance the of the Company / The Good Care Group of companies. The Good Care Group of companies have indicated their intention to continue make available such funds as are needed by the Company, through the Good Care Group cash pool, during the going concern assessment period. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
Based on these analyses and facts, the directors believe that the Company will be able to continue to meet its liabilities as they fall due for at least the next 12 months and therefore have prepared the financial statements on a going concern basis.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for the provision of live in care, and is shown net of VAT and other sales related taxes.
Revenue from contracts for the provision of care services are recognised when the service has been provided and is based on time spent by staff during the period.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Obligations for contributions to the schemes are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.
2
Critical accounting estimates and judgements
The preparation of financial statements requires the management to make estimates and judgements which affect the amounts reported for assets, liabilities and contingent liabilities as of the date of preparation of the financial statements, and for revenues and expenses for the period.
Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
There are no critical estimates or judgements in applying the Company's accounting policies
3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Care services
469,858
68,673
Revenue in the current and prior period is entirely generated in the UK.
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
25,400
5,750
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Carers
2
1
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
64,951
860
Social security costs
1,202
-
Pension costs
417
66,570
860
Directors received no remuneration from The Good Care Group at Riverstone Limited during the year. Directors receive remuneration from another of the Sodexo group companies.
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
43,521
2,426
On 1 April 2023, the standard rate of corporation tax changed from 19% to 25% for companies with profits of over £250,000. For the purpose of the company accounts to 31 August 2023, a blended rate of 21.52% corporation tax has been applied.
The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%).
The charge for the year can be reconciled to the profit per the income statement as follows:
2023
2022
£
£
Profit before taxation
202,856
12,766
Expected tax charge based on a corporation tax rate of 21.52% (2022: 19.00%)
43,655
2,426
Non-deductible expenses
(134)
Taxation charge for the year
43,521
2,426
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 17 -
7
Property, plant and equipment
Computers
£
Cost
At 1 September 2022
Additions
575
At 31 August 2023
575
Accumulated depreciation and impairment
At 1 September 2022
At 31 August 2023
Carrying amount
At 31 August 2023
575
8
Trade and other receivables
2023
2022
£
£
Trade receivables
271
3,557
Amount owed by parent undertaking
100
100
Prepayments and accrued income
62,148
62,519
3,657
Trade receivables disclosed above are classified as receivables and are therefore measured at amortised cost. Amounts receivable from parent undertakings are repayable on demand and interest free.
9
Liabilities
2023
2022
Notes
£
£
Trade and other payables
10
302,929
106,788
Corporation tax
45,947
2,426
Other taxation and social security
24,840
22,087
373,716
131,301
THE GOOD CARE GROUP AT RIVERSTONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 18 -
10
Trade and other payables
2023
2022
£
£
Trade payables
25,003
Amount owed to parent undertaking
271,755
64,512
Amounts owed to fellow group undertakings
2,964
2,964
Accruals and deferred income
3,207
Other payables
-
39,312
302,929
106,788
Amounts payable to group undertakings are repayable on demand and interest free.
11
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
417
-
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
12
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
13
Controlling party
The company's immediate parent company is The Good Care Group London Ltd, registered in England and Wales. The registered office is 120 Leman Street, London, E1 8EU.
At 31 August 2023, the ultimate controlling party is Sodexo SA and its registered office is 255 quai de la Bataille de Stalingrad, 92130 Issy les Mounlineaux, France.
14
Post balance sheet event
As at 31 October 2023, the shareholders of GCG Holdings Limited agreed to sell all their shares to Elevate Care International Limited, a newly created entity under the ownership of The Halifax Group a mid-tier US private equity firm.
On completion of the sale of the business to The Halifax Group, the inter-company loans and other payables to Sodexo Limited, as shown in the financial statements, were fully repaid and sufficient funding strategies put in place by the new owners.
From 31 October 2023, the ultimate controlling party is HCP V CK LP.
2023-08-312022-09-01Mr S MistryMrs J M RentonMr D J B SandozMrs V SapojnicMr A J RichardsMr D K KennedyMr A S McNuttfalseCCH SoftwareiXBRL Review & Tag 2022.2124538212022-09-012023-08-3112453821bus:Director52022-09-012023-08-3112453821bus:Director62022-09-012023-08-3112453821bus:Director72022-09-012023-08-3112453821bus:Director12022-09-012023-08-3112453821bus:Director22022-09-012023-08-3112453821bus:Director32022-09-012023-08-3112453821bus:Director42022-09-012023-08-3112453821bus:RegisteredOffice2022-09-012023-08-31124538212023-08-31124538212021-09-012022-08-3112453821core:ContinuingOperations2022-09-012023-08-3112453821core:RetainedEarningsAccumulatedLosses2022-09-012023-08-3112453821core:RetainedEarningsAccumulatedLosses2021-09-012022-08-31124538212022-08-3112453821core:ShareCapital2023-08-3112453821core:ShareCapital2022-08-3112453821core:RetainedEarningsAccumulatedLosses2023-08-3112453821core:RetainedEarningsAccumulatedLosses2022-08-3112453821core:ShareCapital2021-08-3112453821core:RetainedEarningsAccumulatedLosses2021-08-31124538212021-08-3112453821core:ComputerEquipment2022-08-3112453821core:ComputerEquipment2023-08-3112453821core:ComputerEquipment2022-09-012023-08-3112453821core:CurrentFinancialInstruments2023-08-3112453821core:CurrentFinancialInstruments2022-08-3112453821core:WithinOneYear2023-08-3112453821core:WithinOneYear2022-08-3112453821bus:PrivateLimitedCompanyLtd2022-09-012023-08-3112453821bus:FRS1012022-09-012023-08-3112453821bus:Audited2022-09-012023-08-3112453821bus:FullAccounts2022-09-012023-08-31xbrli:purexbrli:sharesiso4217:GBP