Company registration number 07093184 (England and Wales)
THE GOOD CARE GROUP LONDON LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
THE GOOD CARE GROUP LONDON LTD
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
07093184
Registered office
120 Leman Street
London
E1 8EU
Auditor
KPMG LLP
1 St. Peter's Square
Manchester
M2 3AE
THE GOOD CARE GROUP LONDON LTD
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Directors' responsibilities statement
7
Independent auditor's report to the members of The Good Care Group London Ltd
8 - 11
Statement of comprehensive income
12
Statement of financial position
13 - 14
Statement of changes in equity
15
Notes to the financial statements
16 - 29
THE GOOD CARE GROUP LONDON LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

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

Principal activity

The principal activity of the company continued to be the provision of live in care to elderly clients throughout England and Scotland.

Business Review

 

Recruitment

Given the well documented "Cost Of Living Crisis" in 2023, and National Minimum Wage increases of 10% in 2023, we have found it increasingly expensive to hire carers. Whilst The Good Care Group London continues to invest in pay and benefits, to stay competitive, resourcing continues to be as difficult as it has been in recent years. We believe the intended changes to the ability to bring in carers workers from overseas will have a detrimental impact on the sector in 2024. At The Good Care Group London, we have never used this option, but it will inevitably squeeze the market further.

 

Client Needs

The same "Cost Of Living Crisis" that makes hiring carers more expensive, also impacted on the cost of providing services and the renewal of contracts we have with suppliers, driving up the cost of providing care. The combined impact of clients having their finances squeezed and the increased cost of care has led to people choosing to delay the decision to start care until later. We continue to react to the changing needs of our client base to counter this.

 

KPIs

Revenue grew by £1,581,377 driven primarily from increased charge rates on the back of large increases in statutory pay rates, with underlying volumes slightly down year on year. Gross profit grew by £688,351 to 37.4% gross profit margin, an increase of 0.4% on 2022, having absorbed the continued investment in our carer pay. We continue to carefully control administrative expenses which increased by £375,478 reflecting the impact of inflation but fell to 35.2% of revenues compared to 36.0% in 2022. Both the benefits in GP and administrative expenses flowed through to an improved operating profit which grew by £312,873.

 

 

2022-23

2021-22

Change

Revenue

£25,768,209

£24,186,832

+6.5%

Gross Profit

£9,646,469

£8,958,118

+7.7%

Administrative exp

£9,072,711

£8,697,233

+4.3%

Operating Profit

£573,758

£260,885

+119.9%

 

Future developments & risk management

Health, Safety and Wellbeing

We will continue to put the health, safety and wellbeing of our clients and professional carers first in everything we do.

 

Pricing

We continue to work closely with our funders and clients to ensure we deliver the very best care at a competitive price which reflects the investment we continue to make in our workforce and the inflationary environment in which the company is operating.

 

Pay

We will continue to invest in pay and benefits to ensure that our professional carers and support teams are fairly rewarded for the outstanding job that they do, and will continue to scale up our recruitment activity in order to return the business to growth.

Principal risks and uncertainties

The external economic environment and continued cost pressures present a risk for the business as we balance the costs of running the business with pricing that presents value for money to our clients.

THE GOOD CARE GROUP LONDON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -

The Good Care Group London provides a high quality of care to its clients, rated as Excellent by the Care Quality Commission and Care Inspectorate. Deterioration in the standard of care leading to reputational damage is a principal risk. This will be managed through maintaining rigorous internal controls, staff training and a strong compliance programme.

Equally maintaining adequate staffing levels is key to providing quality care. We manage this risk by providing competitive pay and benefits to carers along with well developed training and support. There is also a continual focus on recruitment within the business.

Changes to government policy affecting the care industry could present a significant risk, however the company believes it is suitably equipped to mitigate such risks and uncertainties.

 

Future developments

The Good Care Group London will continue to focus on delivering the highest quality care for our clients. Maintaining the level of care is central to our plans as we expand geographic coverage and look to strengthen our range of services throughout the UK, enabling our clients to live in the comfort of their own homes for as long as possible.

 

Directors' statement of compliance with duty to promote the success of the Company

 

We describe in this section of the report how the directors have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006. In particular, the section outlines how the directors have acted in a way which is most likely to promote the success of the Company for the benefit of the members as a whole and in doing so having regard for stakeholders’ interests.

 

The following paragraphs summarise how the Directors’ fulfil their duties and engage with each of the key stakeholder groups.

 

We take the opportunity here to explain how both:

 

- The directors have regard to section 172(1) of the Companies Act 2006 in respect of the interests of the Company’s employees; and

 

- The directors have engaged with employees and the effect of this engagement on principal decisions of the Company.

 

Employees

The Board recognises that, as a leading provider of care services, its professional carers and support teams are key to the Company´s strength and success. The Board is committed to ensuring:

 

•    Health & Safety

•    Ongoing support to all employees

•    High levels of employee engagement, wellbeing and communications

•    A diverse and inclusive workforce and culture.

 

Health & Safety

The Company is committed to ensuring a safe and healthy working environment for all its employees, contractors and visitors. Through suitable and sufficient risk assessment and the creation of resulting safe systems of work, the Company provides employees with information, training and instruction to enable them to work safely and to protect the safety and health of those who may be affected by its activities. Compliance with legislative requirements underpins its purpose. The Company tests and challenges itself to continually improve and to engage with its people to ensure everyone has a voice and is properly informed.


The Company believes that health and safety is everyone’s responsibility and through strong leadership, supervision and holding each other to account, health and safety can become a way of life that adds value and drives improved performance. Management and monitoring of performance is achieved through robust reporting, strong audit and monitoring regimes.

THE GOOD CARE GROUP LONDON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -

Employee engagement

We measure the effectiveness Employee Value Proposition (EVP) by conducting annual employee engagement surveys and ad hoc surveys to address specific areas of concern. The data is thematically and statistically analysed to distil an action plan to address the points raised through the survey.

 

We monitor attrition rates, feedback from exit interviews, and absenteeism levels in an effort to identify emerging people risks, trends, and to ensure appropriate action is taken to address these. Emerging people risks and trends are highlighted to the Board together with proposed action plans.


The Company continues to provide ongoing support to all employees and provides a confidential route (‘Speak-Up’) for staff to raise concerns

 

The Company is proud of all of its teams and their dedication and agility as our client and business needs continue to evolve.

 

Clients

We recognise that client retention is the first step to growth. We provide the best possible care to our clients and carefully monitor and act on their feedback.

 

Suppliers

The Company manages their end-to-end supply chain to meet legislative requirements, mitigate risks and satisfy customer demands for supply chain transparency. All suppliers of goods and services to the Company are prequalified to ensure they are capable and competent to deliver the goods or carry out the work they are being contracted to supply. Vendors are assessed against the Company’s Supplier Code of Conduct. The level of initial assessment and ongoing monitoring relates directly to the services/products provided or to be performed and the associated risk.


The Company is committed to ensuring that slavery and human trafficking is not taking place in any of its supply chains or any part of its business and has in place measures to manage this risk.

 

Shareholder

The Board of the Company duly considers the views of its ultimate shareholder, the Halifax Group, and the interests of the Group as a whole as part of any major decisions and transactions undertaken by the Company. The Chair and the Board members provide the channel of communication between the Company and its shareholder.

Long-term decision making

The directors continue to review the Company’s organisational structure, cost base, service offers, investments and other business plans to ensure all are optimal as our environment evolves.

Standards of business conduct

The Company’s Code of Ethics applies to all Directors and employees of the Company, and it embodies the Group´s commitment to maintaining the highest standards of ethical business conduct and integrity. This is underpinned through regular training and an embedded ethical culture. The Company has implemented a Whistleblower facility whereby staff can raise issues that could be misconduct. Regular mandatory training for staff on the principles of Responsible Business Conduct is in place and completion rates are monitored.


The Ethics & Compliance Committee receives, considers, and manages concerns raised under the Code of Ethics, Anti Bribery Policy, Gifts & Hospitality Policy and Whistleblower Policy (including any allegations of bribery and corruption), conducts investigations, takes appropriate action, monitors and reviews incidents and training, measures trends and reports appropriately to the Board. The Committee maintains an incident log.

 

The Company shares the same ethical principles as those set out in the Modern Slavery Act, 2015. We believe in the elimination of all forms of compulsory labour and work to ensure slavery and human trafficking do not take place within any part of our business supply chain.

 

 

THE GOOD CARE GROUP LONDON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -

On behalf of the board

Mr A J Richards
Director
2 August 2024
THE GOOD CARE GROUP LONDON LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 5 -

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

Results and dividends

The results for the year are set out on page 12. The company's profit after tax for the year was £619,235 (2022: £201,962) and net assets as at 31 August 2023 were £7,017,781 (2022: £6,398,546).

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 which were made during the year and 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:

Trade creditors of the company at the year end were equivalent to 9 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.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees any matters likely to affect employees' interests.

 

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company’s performance.

THE GOOD CARE GROUP LONDON LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 6 -
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.

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. On completion of the sale of the business to The Halifax Group, the inter-company loans and other payables to the Sodexo Group, as shown in the financial statements, were fully repaid and sufficient funding strategies put in place by the new owners.

 

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 LONDON LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -

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 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:

 

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 LONDON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE GOOD CARE GROUP LONDON LTD
- 8 -
Opinion

We have audited the financial statements of The Good Care Group London Ltd (the 'Company') for the year ended 31 August 2023 which comprise the Statement of Comprehensive Income, 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:

Basis for opinion

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.

Going concern

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:

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:

 

THE GOOD CARE GROUP LONDON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE GOOD CARE GROUP LONDON LTD
- 9 -

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 LONDON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE GOOD CARE GROUP LONDON LTD
- 10 -

Strategic report and directors' report

The directors are responsible for the strategic report and 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:

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

 

 

We have nothing to report in these respects.

Director's responsibilities

As explained more fully in their statement set out on page 7, 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 LONDON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE GOOD CARE GROUP LONDON LTD
- 11 -

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 LONDON LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 12 -
2023
2022
Notes
£
£
Revenue
3
25,768,209
24,186,832
Cost of sales
(16,121,740)
(15,228,714)
Gross profit
9,646,469
8,958,118
Administrative expenses
(9,072,711)
(8,697,233)
Operating profit
4
573,758
260,885
Interest receivable and similar income
7
63,490
-
Interest payable and similar expense
8
(18,359)
(10,321)
Profit before taxation
618,889
250,564
Tax on profit
9
346
(48,602)
Profit and total comprehensive income for the financial year
619,235
201,962

All amounts above relate to continuing operations. The notes on pages 16 to 29 form part of these financial statements.

THE GOOD CARE GROUP LONDON LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2023
31 August 2023
- 13 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
10
649,269
1,008,510
Investments
11
1,551,769
1,551,769
Deferred tax asset
17
28,844
-
2,229,882
2,560,279
Current assets
Trade and other receivables
13
3,592,817
3,225,861
Current tax recoverable
344,774
157,201
Cash and cash equivalents
4,281,755
4,236,404
8,219,346
7,619,466
Total assets
10,449,228
10,179,745
Current liabilities
Trade and other payables
15
2,828,514
2,929,473
Lease liabilities
16
247,389
249,903
3,075,903
3,179,376
Net current assets
5,143,443
4,440,090
Non-current liabilities
Lease liabilities
16
206,444
452,723
Provisions
18
149,100
149,100
355,544
601,823
Total liabilities
3,431,447
3,781,199
Net assets
7,017,781
6,398,546
Equity
Called up share capital
20
37,547
37,547
Share premium account
21
2,837,053
2,837,053
Retained earnings
4,143,181
3,523,946
Total equity
7,017,781
6,398,546
THE GOOD CARE GROUP LONDON LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 AUGUST 2023
31 August 2023
- 14 -
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 No. 07093184
THE GOOD CARE GROUP LONDON LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 15 -
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
Balance at 1 September 2021
37,547
2,837,053
3,321,984
6,196,584
Year ended 31 August 2022:
Profit and total comprehensive income
-
-
201,962
201,962
Balance at 31 August 2022
37,547
2,837,053
3,523,946
6,398,546
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
619,235
619,235
Balance at 31 August 2023
37,547
2,837,053
4,143,181
7,017,781

The notes on pages 16 to 29 form part of these financial statements.

THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 16 -
1
Accounting policies
Company information

The Good Care Group London Ltd is a private company limited by shares incorporated and domiciled in England and Wales. The registered number is 07093184 and the registered office is 120 Leman Street, London, E1 8EU. The company's principal activities and nature of its operations are disclosed in the strategic 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:

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.

Judgements made by the directors, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 2.

THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 17 -
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. On completion of the sale of the business to The Halifax Group, the inter-company loans and other payables to the Sodexo Group, as shown in the financial statements, were fully repaid and sufficient funding strategies put in place by the new owners.

 

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.

 

An Inter-Company Services Agreement between The Good Care Group Scotland Ltd (TGCGSL) and its parent company, The Good Care Group London Ltd (TGCGLL), took effect on 1 September 2021. Under the terms of this agreement, TGCGLL provides a range of services to TGCGSL to enable it to serve its clients in Scotland. TGCGSL are responsible for the quality of the service and compliance with all relevant legislation. In return for providing TGCGSL with these services, TGCGLL receives a fee equivalent to 95% of the revenue billed to clients in Scotland. Previously, TGCGLL recognised all of the revenues attributable to Scottish clients.

 

THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 18 -
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:

Leasehold land and buildings
Straight line over the term of the lease
Leasehold improvements
Straight line over the term of the lease
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.

1.5
Non-current investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
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.

1.7
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.

THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 19 -
1.8
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.

1.9
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.

1.10
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.

1.11
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.

THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 20 -
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.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.13
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.

1.14
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.

THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 21 -
1.15
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received. The discount rates used corresponds to the incremental borrowing rate, calculated over the initial term of each lease.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 22 -
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 judgments in applying the Company's accounting policies.

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Care services billed to clients in England
22,057,591
20,422,133
Services provided to TGCGSL
3,710,618
3,764,699
25,768,209
24,186,832

Revenue in the current and prior period is entirely generated in the UK.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of property, plant and equipment
387,435
388,158
5
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
47,700
38,330
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Carers
677
756
Office staff
115
110
Total
792
866
THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
18,364,272
16,906,305
Social security costs
1,695,986
1,567,412
Pension costs
376,370
377,830
20,436,628
18,851,547

Directors received no remuneration from The Good Care Group London Ltd during the year. Directors receive remuneration from another of the Sodexo group companies.

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
63,490
-
0

Total interest income for financial assets that are not held at fair value through profit or loss is £63,490 (2022 - £nil).

8
Interest payable and similar expense
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
18,359
10,321
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
(23,726)
Adjustments in respect of prior periods
-
(34,147)
Total UK current tax
-
0
(57,873)
Deferred tax
Origination and reversal of temporary differences
(346)
80,921
Changes in tax rates
-
0
25,554
(346)
106,475
Total tax charge/(credit)
(346)
48,602
THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
9
Taxation
(Continued)
- 24 -

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
618,889
250,564
Expected tax charge based on a corporation tax rate of 21.52% (2022: 19.00%)
133,185
47,607
Non-deductible expenses
59,968
9,588
Adjustment in respect of prior years
-
0
(34,147)
Group relief
(193,153)
-
0
Other non-reversing timing differences
(346)
-
Tax at marginal rate
-
25,554
Taxation (credit)/charge for the year
(346)
48,602
10
Property, plant and equipment
Leasehold land and buildings
Leasehold improvements
Computers
Total
£
£
£
£
Cost
At 1 September 2022
1,151,795
525,568
568,081
2,245,444
Additions
10,056
-
0
18,138
28,194
At 31 August 2023
1,161,851
525,568
586,219
2,273,638
Accumulated depreciation and impairment
At 1 September 2022
582,363
245,901
408,670
1,236,934
Charge for the year
211,908
98,706
76,821
387,435
At 31 August 2023
794,271
344,607
485,491
1,624,369
Carrying amount
At 31 August 2023
367,580
180,961
100,728
649,269
At 31 August 2022
569,432
279,667
159,411
1,008,510
THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
10
Property, plant and equipment
(Continued)
- 25 -

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2023
2022
£
£
Net values at the year end
Property
367,580
569,432
Total additions in the year
10,056
-
Depreciation charge for the year
Property
211,908
183,062

These Right of Use Assets are included within the leasehold land and buildings caption in the table above.

11
Investments
Non-current
2023
2022
£
£
Investments in subsidiaries
1,551,769
1,551,769

The company has not designated any financial assets that are not classified as held for trading as financial assets at fair value through profit or loss.

Fair value of financial assets carried at amortised cost

The directors have considered the carrying amounts of financial assets in the financial statements for impairments. No impairment has been necessary.

12
Subsidiaries

Details of the company's subsidiaries at 31 August 2023 are as follows. All shares held are 'Ordinary'.

Name of undertaking
Address
Class of
% Held
shares held
Direct
Oxford Aunts Ltd
1
Ordinary
100
The Good Care Group Scotland Ltd
1
Ordinary
100
The Good Care Group at Riverstone Ltd
1
Ordinary
100
The Good Care Group At Riverstone Assessment Company Ltd
1
Ordinary
100

Registered office addresses (all UK unless otherwise indicated):

1
120 Leman Street, London, E1 8EU
THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 26 -
13
Trade and other receivables
2023
2022
£
£
Trade receivables
396,669
326,448
Corporation tax recoverable
344,774
157,201
Amount owed by parent undertaking
2,373,074
2,373,074
Amounts owed by subsidiary undertakings
273,303
64,512
Other receivables
87,509
137,374
Prepayments and accrued income
462,262
295,955
3,937,591
3,354,564

Trade receivables disclosed above are classified as receivables and are therefore measured at amortised cost. Amounts receivable from group undertakings are repayable on demand and interest free.

14
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£
£
£
£
Trade and other payables
15
2,322,500
2,492,752
-
0
-
0
Taxation and social security
506,014
436,721
-
-
Lease liabilities
16
247,389
249,903
206,444
452,723
3,075,903
3,179,376
206,444
452,723
15
Trade and other payables
2023
2022
£
£
Trade payables
401,307
450,538
Amounts owed to subsidiary undertakings
437,098
242,302
Amounts owed to fellow group undertakings
38,650
38,650
Accruals and deferred income
1,259,818
1,550,808
Other payables
185,627
210,454
2,322,500
2,492,752

Amounts payable to group undertakings are repayable on demand and interest free.

 

 

 

 

 

 

 

 

 

 

THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 27 -
16
Lease liabilities

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
247,389
249,903
Non-current liabilities
206,444
452,723
453,833
702,626
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
18,359
10,321

The fair value of the company's lease obligations is approximately equal to their carrying amount.

 

See note 10 for further details of depreciation on right of use assets recognised in the profit or loss.

17
Deferred taxation
Assets
2023
2022
£
£
Deferred tax balances
28,844
28,498
Deferred tax assets are expected to be recovered within one year.
THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
17
Deferred taxation
(Continued)
- 28 -

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

ACAs
Provisions
Total
£
£
£
Liability at 1 September 2021
(6,421)
-
(6,421)
Asset at 1 September 2021
-
0
141,394
141,394
Deferred tax movements in prior year
Credit/(charge) to profit or loss
6,007
(86,928)
(80,921)
Effect of change in tax rate - profit or loss
1,897
(27,451)
(25,554)
Asset at 1 September 2022
1,483
27,015
28,498
Deferred tax movements in current year
Credit/(charge) to profit or loss
10,728
(10,382)
346
Asset at 31 August 2023
12,211
16,633
28,844

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

18
Provisions for liabilities
2023
2022
£
£
Dilapidations
149,100
149,100

Provisions relate to dilapidations of the leasehold property.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
376,370
377,830

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.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
3,754,753
3,754,753
37,547
37,547
THE GOOD CARE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 29 -
21
Share premium account
2023
2022
£
£
At the beginning and end of the year
2,837,053
2,837,053
22
Capital commitments

There were no capital commitments in place as at 31 August 2023 (2022: £nil).

23
Controlling party

The company's immediate parent company is GCG Intermediate 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.

24
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.

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