Company registration number 14128512 (England and Wales)
HALLIWELL CARE HOLDING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023
HALLIWELL CARE HOLDING LIMITED
COMPANY INFORMATION
Directors
Mr Paul Bliss
(Appointed 24 May 2022)
Mr M Hargreaves
(Appointed 24 May 2022)
Dr Fenella Quinn
(Appointed 24 May 2022)
Mr Robert McKay
(Appointed 17 November 2023)
Company number
14128512
Registered office
Pearce House
80 Cawdor Street
Eccles
Manchester
M30 0QF
Auditor
Geens Limited
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
HALLIWELL CARE HOLDING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
HALLIWELL CARE HOLDING LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2023
- 1 -

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

Review of the business

The Halliwell Group of companies offers "clinically informed practice" through the medium of education, fostering and residential care. Our objective is to enhance the psychological health of children within the care system. Our Restorative Parenting® Recovery Programme is a therapeutic re-parenting programme which focuses on addressing the emotional, behavioural, social, and developmental needs of the child.  Our approach sets us apart from standard residential childcare providers in that it is clinically informed in every aspect of the child’s lived therapeutic experience with the specific aim of helping traumatised children achieve psychological wellbeing.

The Restorative Parenting® Recovery Programme operates on an environmental, interpersonal, and individual level. Psychological growth and recovery are facilitated through the applied understanding of childhood trauma and attachment needs, Positive Behaviour Support and a focus on engagement and achievement through active participation in education and a wide range of activities. Our practice is guided by knowledge and experience of the power of the narrative and reframing, solution focused approaches and is responsive, consistent, and attuned to the child’s needs.

The progress of Individual children is monitored monthly through the Restorative Parenting Recovery Index and using additional normed psychological scales where appropriate. Detailed discussion of children’s progress takes place at monthly consultations with a psychologist and additional input is provided on a flexible basis by Halliwell’s clinical team, which includes Psychiatry and Clinical Psychology.

We operate 4 homes in the Northwest of England alongside our sister company Halliwell Home (Midlands Division) who operate 2 in the Midlands area with ambitions for more homes in that region in the future.

Results for the period ended 31st August 2023

The directors are pleased to report a successful financial period to 31st August 2023. Halliwell Homes Limited achieved high levels of occupancy, stable staff teams with reducing agency costs and a good, consistent level of service quality. We are also pleased to continue to report successful outcomes for the children placed with us. We have an average programme completion rate of more than 85%, meaning that more than 4 out of five of the children we care for move out of our programme and into a foster family, meeting the objectives of our Restorative Parenting Programme.

 

HALLIWELL CARE HOLDING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 2 -
Key performance indicators

Adjusted EBITDA for the period was £1,243k and 9 children made a successful transition from the programme having sufficiently recovered from childhood trauma whilst placed with Halliwell. 96% Staffing was also achieved by the end of the period.

 

Principal Risks and Uncertainties

 

The Board of Directors expect the business to run at >90% total occupancy in the future given the large number of children in the looked after sector that require a specialist placement.

The primary risk for the business in the upcoming period is the ongoing staffing shortage within the sector. In order achieve the expected outcomes for the children on the programme, a stable team of highly qualified and experienced practitioners is required. The sector has historically had a high staff turnover due to the relatively low wages, requirement to work unsociable hours and the impact of working with children suffering complex trauma who can sometimes exhibit challenging behaviours.

The Halliwell Group that Halliwell Homes Limited is part of have and will continue to invest significantly in the recruitment, development and retention of the staff team to ensure this risk is mitigated. Our in-house clinical and Learning and Development teams provide an extensive and in-depth programme of continuous professional development for our practitioners as well as clinical oversight and support. This has enabled Halliwell to achieve >95% staffing during this period and to support significant positive outcomes for the children in the looked after system. We intend to continue and build on our focus and investment in the development of our practitioners in the coming year with the goal of achieving and maintaining full staffing and continuing to improve the length of time that they stay with the company.

The restructuring of Halliwell to become an Employee Ownership Trust during the previous financial year has had a positive effect on staff recruitment and retention with Halliwell achieving staffing capacity well above the average in sector which will support achieving and maintaining high occupancy levels in the coming year. It will also enable Halliwell to offer greater engagement opportunities for all employees in the development of the organisation going forward as well as greater benefits and rewards when the business performs well.

This structure allows Halliwell to most closely align the best interests of the children in its care, our local authority customers and our skilled and committed staff team, meaning the business is well placed to deliver its service objectives and perform successfully financially.

All other risks are managed day to day in the normal course of business.

 

On behalf of the board

Mr M Hargreaves
Director
6 August 2024
2024-08-06
HALLIWELL CARE HOLDING LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 AUGUST 2023
- 3 -

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

Principal activities

The principal activity of the Halliwell Care Holding Limited Group is that of education, fostering and residential care.

Results and dividends

The results for the period are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr Paul Bliss
(Appointed 24 May 2022)
Mr M Hargreaves
(Appointed 24 May 2022)
Dr Fenella Quinn
(Appointed 24 May 2022)
Mr David Sheffield
(Appointed 24 May 2022 and resigned 17 November 2023)
Mr Robert McKay
(Appointed 17 November 2023)
Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

HALLIWELL CARE HOLDING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 4 -
On behalf of the board
Mr M Hargreaves
Director
6 August 2024
HALLIWELL CARE HOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HALLIWELL CARE HOLDING LIMITED
- 5 -
Opinion

We have audited the financial statements of Halliwell Care Holding Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 August 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

HALLIWELL CARE HOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HALLIWELL CARE HOLDING LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

HALLIWELL CARE HOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HALLIWELL CARE HOLDING LIMITED
- 7 -

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

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

Karen Staley FCA BSc (Hons) (Senior Statutory Auditor)
For and on behalf of Geens Limited
6 August 2024
Chartered Accountants
Statutory Auditor
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
HALLIWELL CARE HOLDING LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2023
- 8 -
Period
ended
31 August
2023
Notes
£
Turnover
3
15,484,668
Cost of sales
(10,446,085)
Gross profit
5,038,583
Administrative expenses
(6,245,057)
Other operating expenses
(449)
Operating loss
4
(1,206,923)
Interest receivable and similar income
8
623
Interest payable and similar expenses
9
(1,124,904)
Loss before taxation
(2,331,204)
Tax on loss
10
(97,433)
Loss for the financial period
21
(2,428,637)
(Loss)/profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
HALLIWELL CARE HOLDING LIMITED
GROUP BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
2023-08-31
- 9 -
2023
Notes
£
£
Fixed assets
Goodwill
11
15,117,089
Tangible assets
12
4,236,607
19,353,696
Current assets
Debtors
15
3,114,650
Cash at bank and in hand
828,279
3,942,929
Creditors: amounts falling due within one year
16
(4,238,010)
Net current liabilities
(295,081)
Total assets less current liabilities
19,058,615
Creditors: amounts falling due after more than one year
17
(9,444,444)
Net assets
9,614,171
Capital and reserves
Called up share capital
20
3,585
Profit and loss reserves
21
9,610,586
Total equity
9,614,171

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on
6 August 2024
06 August 2024
and are signed on its behalf by:
Mr M Hargreaves
Director
Company registration number 14128512 (England and Wales)
HALLIWELL CARE HOLDING LIMITED
COMPANY BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 10 -
2023
Notes
£
£
Fixed assets
Investments
13
18,727,471
Current assets
Debtors
15
2,073,770
Creditors: amounts falling due within one year
16
(585,969)
Net current assets
1,487,801
Total assets less current liabilities
20,215,272
Creditors: amounts falling due after more than one year
17
(9,444,444)
Net assets
10,770,828
Capital and reserves
Called up share capital
20
3,585
Profit and loss reserves
21
10,767,243
Total equity
10,770,828

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,271,980.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 6 August 2024 and are signed on its behalf by:
Mr M Hargreaves
Director
Company registration number 14128512 (England and Wales)
HALLIWELL CARE HOLDING LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 24 May 2022
-
-
-
Period ended 31 August 2023:
Loss and total comprehensive income
-
(2,428,637)
(2,428,637)
Issue of share capital
20
18,296,756
-
18,296,756
Contributions to Employer Ownership Trust
-
(6,253,948)
(6,253,948)
Reduction of shares
20
(18,293,171)
18,293,171
-
0
Balance at 31 August 2023
3,585
9,610,586
9,614,171
HALLIWELL CARE HOLDING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 24 May 2022
-
-
-
Period ended 31 August 2023:
Profit and total comprehensive income
-
(1,271,980)
(1,271,980)
Issue of share capital
20
18,296,756
-
18,296,756
Contributions to Employer Ownership Trust
-
(6,253,948)
(6,253,948)
Reduction of shares
20
(18,293,171)
18,293,171
-
0
Balance at 31 August 2023
3,585
10,767,243
10,770,828
HALLIWELL CARE HOLDING LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2023
- 13 -
2023
Notes
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(2,195,124)
Interest paid
(1,124,904)
Net cash outflow from operating activities
(3,320,028)
Investing activities
Purchase of business
728,586
Purchase of tangible fixed assets
(166,741)
Proceeds from disposal of tangible fixed assets
6,817
Interest received
613
Dividends received
10
Net cash generated from/(used in) investing activities
569,285
Financing activities
Repayment of borrowings
(48,225)
Proceeds from new bank loans
10,000,000
Repayment of bank loans
(104,167)
Payment of finance leases obligations
(14,638)
Contibutions to Employer Ownership Trust
(6,253,948)
Net cash generated from/(used in) financing activities
3,579,022
Net increase in cash and cash equivalents
828,279
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
828,279
HALLIWELL CARE HOLDING LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2023
- 14 -
2023
Notes
£
£
Cash flows from operating activities
Cash absorbed by operations
29
(2,526,620)
Interest paid
(1,115,275)
Net cash outflow from operating activities
(3,641,895)
Investing activities
Dividends received
10
Net cash generated from/(used in) investing activities
10
Financing activities
Proceeds from new bank loans
10,000,000
Repayment of bank loans
(104,167)
Contributions to Employee Ownership Trust
(6,253,948)
Net cash generated from/(used in) financing activities
3,641,885
Net increase in cash and cash equivalents
-
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
-
0
HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023
- 15 -
1
Accounting policies
Company information

Halliwell Care Holding Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Pearce House, 80 Cawdor Street, Eccles, Manchester, M30 0QF.

 

The group consists of Halliwell Care Holding Limited and its subidiary companies Halliwell Homes Limited and Halliwell Homes (Midlands Division) Limited.

1.1
Reporting period

The company was incorporated 24th May 2022 and its first period of account is a 15 month period to 31st August 2023. The accounting reference date is 31st August to be coterminous with its subsidiary companies.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Halliwell Care Holding Limited together with its subsidiaries Halliwell Homes Limited and Halliwell Homes (Midlands Division) Limited.

 

All financial statements are made up to 31 August 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and not less than one year from the date of approval. The directors of the company regularly monitor profit and loss and cash flow forecasts and monitor actual and forecast compliance with bank covenants. Under all scenarios reviewed the group has sufficient cash flow to enable it to continue as a going concern and for this reason the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

The company recognises revenue when the amount of revenue can be measured reliably and when it is probable future economic benefits will flow to the entity.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Tangible fixed assets

Tangible fixed assets 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:

Land and buildings
2% straight line
Leasehold improvements
Over the period of the lease
Equipment
25% reducing balance
Motor vehicles
25% reducing balance

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 profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 17 -

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

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 group’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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 profit and loss account, 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 if, and only if, there is 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.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 20 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of land and buildings

As described in note 12 to the financial statements, land and buildings are stated at fair value based on the valuation performed by an independent professional valuer Christie & Co as at 31st August 2021. The valuer used observable market prices adjusted as necessary for any difference in the location or condition of the specific asset. However, the rise in interest rates and inflation has caused significant disruption and uncertainty in the UK property market which has inevitably increased the degree of judgement involved in the property valuation.

Estimate of useful economic life

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of fixed assets, and note 1.7 for the useful economic lives for each class of assets.

Recoverability of trade debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers each balance on a line by line basis. See note 15 for the net carrying amount of the debtors and associated impairment provision.

3
Turnover and other revenue
2023
£
Turnover analysed by geographical market
United Kingdom
15,484,668
2023
£
Other revenue
Interest income
613
Dividends received
10
4
Operating loss
2023
£
Operating loss for the period is stated after charging:
Fees payable to the group's auditor for the audit of the group's financial statements
6,000
Depreciation of owned tangible fixed assets
284,168
Loss on disposal of tangible fixed assets
6,692
Amortisation of intangible assets
2,159,587
Operating lease charges
75,661
HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 21 -
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
6,000
Audit of the financial statements of the company's subsidiaries
25,700
31,700
6
Employees

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

Group
Company
2023
2023
Number
Number
4
4
11
-
182
-
Total
197
4

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
9,009,839
-
0
Social security costs
818,697
-
Pension costs
223,115
-
0
10,051,651
-
0
7
Directors' remuneration
2023
£
Remuneration for qualifying services
596,580
Company pension contributions to defined contribution schemes
6,608
603,188
HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
7
Directors' remuneration
(Continued)
- 22 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
£
Remuneration for qualifying services
151,262
Company pension contributions to defined contribution schemes
1,652
8
Interest receivable and similar income
2023
£
Interest income
Interest on bank deposits
613
Income from fixed asset investments
Income from shares in group undertakings
10
Total income
623
2023
Investment income includes the following:
£
Interest on financial assets not measured at fair value through profit or loss
613
9
Interest payable and similar expenses
2023
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,115,275
Other interest on financial liabilities
5,266
1,120,541
Other finance costs:
Interest on finance leases and hire purchase contracts
3,000
Other interest
1,363
Total finance costs
1,124,904
10
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
97,433
HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
10
Taxation
(Continued)
- 23 -

The actual charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

2023
£
Loss before taxation
(2,331,204)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00%
(582,801)
Tax effect of expenses that are not deductible in determining taxable profit
494
Unutilised tax losses carried forward
132,168
Permanent capital allowances in excess of depreciation
(1,963)
Depreciation on assets not qualifying for tax allowances
26,595
Amortisation on assets not qualifying for tax allowances
539,897
Deferred tax adjustments in respect of prior years
15,177
Tax charged at lower rates (19%)
(32,134)
Taxation charge
97,433
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 24 May 2022
-
0
Additions
17,276,676
At 31 August 2023
17,276,676
Amortisation and impairment
At 24 May 2022
-
0
Amortisation charged for the period
2,159,587
At 31 August 2023
2,159,587
Carrying amount
At 31 August 2023
15,117,089
The company had no intangible fixed assets at 31 August 2023.
HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 24 -
12
Tangible fixed assets
Group
Land and buildings
Leasehold improvements
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 24 May 2022
-
0
-
0
-
0
-
0
-
0
Additions
23,562
-
0
104,440
38,739
166,741
Business combinations
4,591,072
42,854
567,880
238,741
5,440,547
Disposals
-
0
-
0
-
0
(31,212)
(31,212)
At 31 August 2023
4,614,634
42,854
672,320
246,268
5,576,076
Depreciation and impairment
At 24 May 2022
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
115,073
17,855
112,531
38,709
284,168
Eliminated in respect of disposals
-
0
-
0
-
0
(17,705)
(17,705)
Business combinations
618,177
22,011
298,019
134,799
1,073,006
At 31 August 2023
733,250
39,866
410,550
155,803
1,339,469
Carrying amount
At 31 August 2023
3,881,384
2,988
261,770
90,465
4,236,607
The company had no tangible fixed assets at 31 August 2023.

Land and buildings with a carrying amount of £ 3,881,384 have been pledged to secure borrowings of Halliwell Care Holding Limited. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Land and buildings were revalued at 31st August 2021 by Christie & Co, who are independent valuers, not connected with the company, on the basis of fair value. The valuation was undertaken in accordance with the Royal Institute of Chartered Surveyors Valuation Standards and was based on recent market transactions on arms length terms for similar properties.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2023
£
Group
Cost
4,096,299
Accumulated depreciation
(475,184)
Carrying value
3,621,115
HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 25 -
13
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
14
-
0
18,727,471
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 24 May 2022
-
Additions
18,727,471
At 31 August 2023
18,727,471
Carrying amount
At 31 August 2023
18,727,471
14
Subsidiaries

Details of the company's subsidiaries at 31 August 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Halliwell Homes Limited
England
Education, fostering and residential care.
Ordinary shares
100.00
Halliwell Homes (Midlands Division) Limited
England
Education, fostering and residential care.
Ordinary shares
100.00
15
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
2,986,548
-
0
Amounts owed by group undertakings
-
2,072,012
Other debtors
17,100
1,758
Prepayments and accrued income
111,002
-
0
3,114,650
2,073,770

Amounts owed by group undertakings are shown as being due within one year as there is no set repayment date and there is no formal agreement in place. Commercially there are no plans for these amounts to be recalled in the next 12 months.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 26 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Bank loans
18
451,389
451,389
Trade creditors
437,298
-
0
Corporation tax payable
126,461
-
0
Other taxation and social security
210,971
-
Deferred income
662,602
-
0
Other creditors
1,590,907
-
0
Accruals and deferred income
758,382
134,580
4,238,010
585,969
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Bank loans and overdrafts
18
9,444,444
9,444,444
18
Loans and overdrafts
Group
Company
2023
2023
£
£
Bank loans
9,895,833
9,895,833
Payable within one year
451,389
451,389
Payable after one year
9,444,444
9,444,444

The company has a loan with Shawbrook Bank, which is repayable by instalments over 20 years. The interest rate on the loan is SONIA + 5.685%.

The bank loan is secured by a fixed and floating charge over all the assets of the group including (without limitation) a legal mortgage on all freehold land and buildings and a floating charge on all other assets in the group.

19
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
223,115

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 27 -
20
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary A of 0.01p each
18,295,000
1,829
Ordinary B of £1 each
1,756
1,756
18,296,756
3,585

On incorporation the company issued 2 Ordinary A shares at par value of £1 per share.

 

On 25th May 2022 the company issued £1,829,4998 Ordinary A shares at par value of £1 per share.

 

On 30th May 2022 a capital reduction was undertaken and the nominal value of each Ordinary A share was reduced by £0.9999 to £0.0001 per share.

 

On 31st May the company issued 1,756 Ordinary B shares at a par value of £1 per share.

21
Profit and loss reserves
Group
Company
2023
2023
£
£
At the beginning of the period
-
-
Loss for the period
(2,428,637)
(1,271,980)
Share redemption or reduction
18,293,171
18,293,171
Contribution to Halliwell Homes EOT
(6,253,948)
(6,253,948)
At the end of the period
9,610,586
10,767,243

The contribution to Halliwell Homes EOT represents contributions paid to the Employee Ownership Trust to enable it to fund the initial consideration to purchase shares.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 28 -
22
Acquisition of a business

On 30 May 2022 Halliwell Care Holding Limited acquired 100 percent of the issued share capital of Halliwell Homes Limited in a share for share exchange. The principal activity of Halliwell Homes Limited is that of education, fostering and residential care.

 

The acquisition has been accounted for under the acquisition method. It has been determined by the company directors that the book value of assets and liabilities acquired materially agrees to fair value.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
3,064,748
-
3,064,748
Trade and other receivables
4,229,729
-
4,229,729
Cash and cash equivalents
400,112
-
400,112
Borrowings
(48,225)
-
(48,225)
Obligations under finance leases
(14,638)
-
(14,638)
Trade and other payables
(5,410,082)
-
(5,410,082)
Tax liabilities
(32,062)
-
(32,062)
Total identifiable net assets
2,189,582
-
2,189,582
Goodwill
16,537,879
Total consideration
18,727,461
The consideration was satisfied by:
£
Issue of shares
18,727,461
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
10,209,718
Profit after tax
731,587
HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
22
Acquisition of a business
(Continued)
- 29 -

On 30 May 2022 the group acquired 100 percent of the issued capital of Halliwell Homes (Midlands Division) Limited. The principal activity is that of education, fostering and residential care.

 

The acquisition has been accounted for under the acquisition method. It has been determined by the company directors that the book value of assets and liabilities acquired materially agrees to fair value.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
1,302,794
-
1,302,794
Trade and other receivables
933,874
-
933,874
Cash and cash equivalents
328,474
-
328,474
Trade and other payables
(3,268,425)
-
(3,268,425)
Tax liabilities
(35,505)
-
(35,505)
Total identifiable net assets
(738,788)
-
(738,788)
Goodwill
738,798
Total consideration
10
The consideration was satisfied by:
£
Dividend in specie
10
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
5,274,950
Profit after tax
377,789
23
Contingent liabilities

Deferred Consideration

On 31st May 2022 the previous shareholders of the Halliwell Homes Group transferred their shares to Halliwell Homes Employee Ownership Trust. Halliwell Care Holdings Limited made a contribution to the Trust to fund the initial consideration. The company and its subsidiaries Halliwell Homes Limited and Halliwell Homes Midlands Division Limited are committed to funding quarterly contributions to cover deferred consideration and accrued interest to former shareholders. As at 31 August 2023 the amount of deferred consideration due was £12.4m plus accrued interest.

 

Bank loans

The company has charges over its assets in the form of debentures as senior first-ranking security for the bank loans of £9,895,833. These bank loans are secured on all the assets of the group including (without limitation) a legal charge on land and buildings with a value of £3,881,384 and a floating charge over all other assets.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 30 -
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2023
£
£
Within one year
261,007
-
Between two and five years
682,726
-
In over five years
69,684
-
1,013,417
-
25
Going Concern

The group is reporting not insignificant losses brought about by high interest charges on restructuring loans and large amortisation charges against goodwill. EBITDA for the group is £1,243,000 and is a key performance indicator. Bank covenants are carefully monitored. As explained in note 23, the founders are due deferred consideration from the Employee Ownership Trust which is funded by the group. The Founders have agreed in writing not to jeopardise the liquidity and going concern basis of the group should their deferred payments be delayed and any interest accrued would not be demanded until a time when the group can manage the cashflow sucessfully.

26
Related party transactions

The group as taken advantage of the exemption provided in Financial Reporting Standards 102. Disclosures need not be given of transactions entered in to between two or members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

27
Controlling party

The ultimate controlling party is Halliwell Homes Employee Ownership Trust by virtue of a controlling shareholding in Halliwell Care Holding Limited.

HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 31 -
28
Cash absorbed by group operations
2023
£
Loss for the period after tax
(2,428,637)
Adjustments for:
Taxation charged
97,433
Finance costs
1,124,904
Investment income
(623)
Loss on disposal of tangible fixed assets
6,692
Amortisation and impairment of intangible assets
2,159,587
Depreciation and impairment of tangible fixed assets
284,168
Movements in working capital:
Decrease in debtors
2,050,709
Decrease in creditors
(6,151,959)
Increase in deferred income
662,602
Cash absorbed by operations
(2,195,124)
29
Cash absorbed by operations - company
2023
£
Loss for the period after tax
(1,271,980)
Adjustments for:
Finance costs
1,115,275
Investment income
(10)
Movements in working capital:
Increase in debtors
(2,072,014)
Decrease in creditors
(297,891)
Cash absorbed by operations
(2,526,620)
30
Analysis of changes in net debt - group
24 May 2022
Cash flows
31 August 2023
£
£
£
Cash at bank and in hand
-
828,279
828,279
Borrowings excluding overdrafts
-
(9,895,833)
(9,895,833)
-
(9,067,554)
(9,067,554)
HALLIWELL CARE HOLDING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 32 -
31
Analysis of changes in net debt - company
24 May 2022
Cash flows
31 August 2023
£
£
£
Borrowings excluding overdrafts
-
(9,895,833)
(9,895,833)
2023-08-312022-05-24falseCCH SoftwareCCH Accounts Production 2024.100Mr Paul BlissMr M HargreavesDr Fenella QuinnMr David SheffieldMr Robert McKayMr David SheffieldMr Matthew Hargreavesfalsefalse14128512bus:Consolidated2022-05-242023-08-31141285122022-05-242023-08-3114128512bus:Director12022-05-242023-08-3114128512bus:Director22022-05-242023-08-3114128512bus:Director32022-05-242023-08-3114128512bus:Director52022-05-242023-08-3114128512bus:Director42022-05-242023-08-3114128512bus:Director62022-05-242023-08-3114128512bus:Director72022-05-242023-08-3114128512bus:RegisteredOffice2022-05-242023-08-3114128512bus:Consolidated2023-08-31141285122023-08-3114128512core:Goodwillbus:Consolidated2023-08-3114128512core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-08-3114128512core:LeaseholdImprovementsbus:Consolidated2023-08-3114128512core:PlantMachinerybus:Consolidated2023-08-3114128512core:MotorVehiclesbus:Consolidated2023-08-3114128512core:ShareCapitalbus:Consolidated2023-08-3114128512core:ShareCapital2023-08-3114128512core:RetainedEarningsAccumulatedLosses2023-08-3114128512core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-08-3114128512core:ShareCapitalbus:Consolidated2022-05-242023-08-3114128512core:ShareCapital2022-05-242023-08-3114128512core:Goodwill2022-05-242023-08-3114128512core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-242023-08-3114128512core:LeaseholdImprovements2022-05-242023-08-3114128512core:PlantMachinery2022-05-242023-08-3114128512core:MotorVehicles2022-05-242023-08-3114128512core:UKTaxbus:Consolidated2022-05-242023-08-3114128512bus:Consolidated12022-05-242023-08-3114128512bus:Consolidated22022-05-242023-08-3114128512core:Goodwillbus:Consolidated2022-05-2314128512core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-05-242023-08-3114128512core:Goodwillbus:Consolidated2022-05-242023-08-3114128512core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-05-2314128512core:LeaseholdImprovementsbus:Consolidated2022-05-2314128512core:PlantMachinerybus:Consolidated2022-05-2314128512core:MotorVehiclesbus:Consolidated2022-05-2314128512bus:Consolidated2022-05-2314128512core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-05-242023-08-3114128512core:LeaseholdImprovementsbus:Consolidated2022-05-242023-08-3114128512core:PlantMachinerybus:Consolidated2022-05-242023-08-3114128512core:MotorVehiclesbus:Consolidated2022-05-242023-08-3114128512core:CurrentFinancialInstruments2023-08-3114128512core:CurrentFinancialInstrumentsbus:Consolidated2023-08-3114128512core:WithinOneYearbus:Consolidated2023-08-3114128512core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3114128512core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-08-3114128512core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3114128512core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-08-3114128512bus:PrivateLimitedCompanyLtd2022-05-242023-08-3114128512bus:FRS1022022-05-242023-08-3114128512bus:Audited2022-05-242023-08-3114128512bus:ConsolidatedGroupCompanyAccounts2022-05-242023-08-3114128512bus:FullAccounts2022-05-242023-08-31xbrli:purexbrli:sharesiso4217:GBP