Company registration number 10969094 (England and Wales)
DALTON CARE SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
DALTON CARE SERVICES LIMITED
COMPANY INFORMATION
Directors
Mrs C N Desilva-Murugupillai
Mr R D Murugupillai
Company number
10969094
Registered office
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Auditor
RDP Newmans LLP
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Business address
Hays House
Sedgehill
Shaftesbury
SP7 9JR
DALTON CARE SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
DALTON CARE SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

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

Principal activities

The principal activity of the company and group continued to be that of providing residential nursing care facilities.

Review of the business

The results for the year and the financial position at the year end were considered satisfactory by the directors who expect performance to remain stable in the foreseeable future. The business overall continues to demonstrate resilience and has managed to uphold financial performance as well as regulatory standards despite the challenges.

 

Turnover and net profit have both increased during the year due to an acquisition of a new care home during the financial period.

 

The group remains in a strong financial position at the balance sheet date with net assets being £1.04m (2022: £0.24m).

Principal risks and uncertainties

The directors believe that the key business risks are in respect of costs anticipated to increase at a rate far higher than revenue is expected to keep pace with. This will squeeze margins at a time when the group is also experiencing the longer term effect of the coronavirus pandemic in terms of staff well-being and regulatory adjustments. In view of these risks and uncertainties the directors regularly review their operations to mitigate the impact of such risks and uncertainties.

 

The principal risks and uncertainties facing the group are:

 

Financial instruments

The group's principal financial instruments comprise trade creditors and bank loans. The main purpose of these financial instruments is to raise finance for the group's operations. The group has various other financial assets such as trade debtors which arise directly from its operations.

 

The main risks arising from the group's financial instruments are credit and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.

 

Credit risk

The company performs ongoing credit evaluations of its customers and to date has rarely experienced any material loss. The company works primarily with Council bodies and local healthcare districts which are funded by the NHS.


All residents who are admitted pay on a timely basis. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

 

Liquidity risk

Liquidity risk arises in relation to the group's management of working capital and the risk that the group will encounter difficulties in meeting financial obligations as and when they fall due. The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

 

Interest rate risk

The group is exposed to cash flow interest rate risk on floating rate bank overdrafts and loans. The company does not use interest rate derivatives to manage the mix of fixed and variable rate debts.

Development and performance

This year has been another challenging one in regards to above average inflationary pressure on costs. Due to these challenges combined with higher tax rates, the group's current ratio has fallen from 1.21 to 0.98.

 

Despite the above, compliance requirements continue to be met and operationally the business remains sound. The group profitability has improved during the year and the net balance sheet position is stronger. All things considered, the directors are exploring alternative ways to bolster revenue outside of inflationary growth.

DALTON CARE SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
Key performance indicators

The Key Performance Indicators of the group over the last two periods are detailed below:

               2023         2022

Turnover (GBP £'000)        6,864        4,927

Gross profit %            39.70%        36.28%

Net profit after tax %        11.72%        8.03%

Interest cover            3.45        13.66

 

The turnover has increased by 39% during the year due to acquisition of a new care home during the financial period. The directors are monitoring the costs continually due to inflationary rises of costs and food. The gross profit and net profit margins have improved during the year as a result of this.

 

The interest cover ratio has reduced significantly this year due to restructuring of loans taken this year to fund the acquisition of the new care home. The lending rates are significantly higher as the base rate has increased from the previous year, resulting in additional interest charges.

On behalf of the board

Mr R D Murugupillai
Director
9 August 2024
DALTON CARE SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -

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 9.

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

Directors

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

Mrs C N Desilva-Murugupillai
Mr R D Murugupillai
Future developments

The directors are confident that by pursing the management policies the group will achieve continued success in the years ahead.

Auditor

RDP Newmans LLP were appointed as auditor to the company on 29 May 2024 and in accordance with section 485 of the Companies Act 2006 and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
Mr R D Murugupillai
Director
9 August 2024
2024-08-09
DALTON CARE SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -

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.

DALTON CARE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALTON CARE SERVICES LIMITED
- 5 -

Qualified opinion

We have audited the financial statements of Dalton Care Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year 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 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion - opening balances

The evidence available to us was limited because we were appointed as auditors on 29 May 2024 and we have been unable to carry out auditing procedures necessary to obtain adequate assurance regarding the opening balances and comparative figures as the financial statements for the year ended 31 August 2022 were unaudited. Any adjustments to the opening balances would have a consequential effect on the profit for the year. In addition, the amounts shown as corresponding amounts for the year ended 31 August 2022 may not be comparable with the figures for the current period.

 

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 qualified 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.

DALTON CARE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALTON CARE SERVICES LIMITED
- 6 -

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.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the opening balances at 1 September 2022 and therefore have concluded that opening balances would have an impact on related balances in the financial statements.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to opening balances, described above:

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and the subsidiary 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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

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:

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:

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

DALTON CARE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALTON CARE SERVICES LIMITED
- 8 -

Other matters

The financial statements of the group and subsidiary company for the year ended 31 August 2022 were unaudited.

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.

Paresh Radia FCA (Senior Statutory Auditor)
For and on behalf of RDP Newmans LLP
9 August 2024
Chartered Accountants
Statutory Auditor
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
DALTON CARE SERVICES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
6,863,555
4,927,385
Cost of sales
(4,138,767)
(3,139,618)
Gross profit
2,724,788
1,787,767
Administrative expenses
(1,501,740)
(1,295,227)
Other operating income
85,595
161,281
Operating profit
4
1,308,643
653,821
Interest receivable and similar income
8
2,037
-
0
Interest payable and similar expenses
9
(315,813)
(109,672)
Profit before taxation
994,867
544,149
Tax on profit
10
(190,400)
(148,639)
Profit for the financial year
24
804,467
395,510
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
DALTON CARE SERVICES LIMITED
GROUP BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
278,947
387,412
Tangible assets
12
6,140,006
3,473,847
6,418,953
3,861,259
Current assets
Stocks
16
210,019
210,019
Debtors
17
217,699
99,980
Cash at bank and in hand
1,462,084
1,627,301
1,889,802
1,937,300
Creditors: amounts falling due within one year
18
(1,928,597)
(1,605,649)
Net current (liabilities)/assets
(38,795)
331,651
Total assets less current liabilities
6,380,158
4,192,910
Creditors: amounts falling due after more than one year
19
(5,138,284)
(3,762,438)
Provisions for liabilities
Deferred tax liability
21
197,769
190,834
(197,769)
(190,834)
Net assets
1,044,105
239,638
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
24
1,044,005
239,538
Total equity
1,044,105
239,638

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 9 August 2024 and are signed on its behalf by:
09 August 2024
Mr R D Murugupillai
Director
Company registration number 10969094 (England and Wales)
DALTON CARE SERVICES LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023
31 August 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
3,037,222
3,037,222
Current assets
Cash at bank and in hand
1,082
5,625
Creditors: amounts falling due within one year
18
(3,562,628)
(1,581,532)
Net current liabilities
(3,561,546)
(1,575,907)
Total assets less current liabilities
(524,324)
1,461,315
Creditors: amounts falling due after more than one year
19
-
(1,898,688)
Net liabilities
(524,324)
(437,373)
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
24
(524,424)
(437,473)
Total equity
(524,324)
(437,373)

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 £86,951 (2022 - £83,573 loss).

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 9 August 2024 and are signed on its behalf by:
09 August 2024
Mr R D Murugupillai
Director
Company registration number 10969094 (England and Wales)
DALTON CARE SERVICES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 September 2021
100
(155,972)
(155,872)
Year ended 31 August 2022:
Profit and total comprehensive income
-
395,510
395,510
Balance at 31 August 2022
100
239,538
239,638
Year ended 31 August 2023:
Profit and total comprehensive income
-
804,467
804,467
Balance at 31 August 2023
100
1,044,005
1,044,105
DALTON CARE SERVICES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 September 2021
100
(353,900)
(353,800)
Year ended 31 August 2022:
Loss and total comprehensive income for the year
-
(83,573)
(83,573)
Balance at 31 August 2022
100
(437,473)
(437,373)
Year ended 31 August 2023:
Profit and total comprehensive income
-
(86,951)
(86,951)
Balance at 31 August 2023
100
(524,424)
(524,324)
DALTON CARE SERVICES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,583,327
1,297,801
Interest paid
(315,813)
(109,672)
Income taxes refunded/(paid)
6,583
(13,162)
Net cash inflow from operating activities
1,274,097
1,174,967
Investing activities
Purchase of tangible fixed assets
(2,815,214)
(198,001)
Interest received
2,037
-
0
Net cash used in investing activities
(2,813,177)
(198,001)
Financing activities
Repayment of bank loans
1,373,863
(197,638)
Net cash generated from/(used in) financing activities
1,373,863
(197,638)
Net (decrease)/increase in cash and cash equivalents
(165,217)
779,328
Cash and cash equivalents at beginning of year
1,627,301
847,973
Cash and cash equivalents at end of year
1,462,084
1,627,301
DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 15 -
1
Accounting policies
Company information

Dalton Care Services Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Lynwood House, 373-375 Station Road, Harrow, Middlesex, HA1 2AW.

 

The group consists of Dalton Care Services Limited and all of its subsidiaries.

1.1
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. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
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.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Dalton Care Services Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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.

1.4
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The parent undertaking has confirmed its support of the group through the next 12 months from the date of signing of the accounts.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for residential and care services provided in the normal course of business.

 

Revenue from the provision of residential and care services is recognised in the period in which the services were performed.

Rent receivable is recognised in the period to which the rent relates.

 

Other income

 

Non-domestic renewable heat incentive receivable is recognised in the period to which it relates to.

1.6
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 7 & 20 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.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
50 years straight line (property improvements only)
Plant and equipment
10% straight line
Fixtures and fittings
7 years straight line
Motor vehicles
33% reducing balance
Biomass boiler
20 years 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 profit and loss account.

1.8
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.

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.

1.9
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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 18 -
1.10
Stocks

Flats held for sale are included at the lower of cost and net realisable value.

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.

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.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 19 -
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.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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.

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.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 20 -
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, unless those costs are required to be recognised as part of the cost of stock or fixed 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.

1.16
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.

1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
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.

Accruals and provisions

Management review the accruals and provisions of costs and overheads at each reporting date so as to allocate the costs against the correct financial period.

Depreciation rates and estimated economic useful life of tangible fixed assets

Management review the useful economic lives of depreciable assets at each reporting date so as to allocate the costs of assets, less their residual value, over the estimated useful lives. Uncertainties in these estimates relate to the actual life of the tangible fixed assets.

Goodwill

The group amortises goodwill over its estimated useful life. The estimation of the useful life is based on performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by the directors.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Care fees
6,820,599
4,902,483
Rental income
42,956
24,902
6,863,555
4,927,385
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
6,863,555
4,927,385
2023
2022
£
£
Other revenue
Interest income
2,037
-
Grants received
51,267
127,029
Renewable heat incentive recieved
34,328
34,252
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(51,267)
(127,029)
Depreciation of owned tangible fixed assets
149,055
141,917
Amortisation of intangible assets
108,465
108,465
DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 22 -
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 group and company
6,000
-
Audit of the financial statements of the company's subsidiaries
17,500
-
23,500
-
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
2
2
2
2
Administration
3
3
-
-
Nursing and care home staff
148
117
-
-
Total
153
122
2
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,418,614
2,508,896
-
0
-
0
Social security costs
276,012
181,726
-
-
Pension costs
56,795
47,582
-
0
-
0
3,751,421
2,738,204
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
26,497
-
Company pension contributions to defined contribution schemes
608
-
27,105
-

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 23 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,037
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,037
-
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
313,462
109,672
Other finance costs:
Other interest
2,351
-
Total finance costs
315,813
109,672
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
183,465
88,068
Deferred tax
Origination and reversal of timing differences
6,935
60,571
Total tax charge
190,400
148,639

The corporation tax rate has increased from 19% to 25% from 1 April 2023. The effective tax rate for the year ended 31 August 2023 was 7 months at 19% and 5 months at 25%.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
10
Taxation
(Continued)
- 24 -

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

2023
2022
£
£
Profit before taxation
994,867
544,149
Expected tax charge based on the standard rate of corporation tax in the UK of 21.52% (2022: 19.00%)
214,046
103,388
Tax effect of expenses that are not deductible in determining taxable profit
34,377
28,391
Tax effect of utilisation of tax losses not previously recognised
-
0
(14,607)
Amortisation on assets not qualifying for tax allowances
21,722
19,183
Capital allowances
(86,680)
(48,288)
Deferred tax movement
6,935
60,572
Taxation charge
190,400
148,639
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 September 2022 and 31 August 2023
856,755
Amortisation and impairment
At 1 September 2022
469,343
Amortisation charged for the year
108,465
At 31 August 2023
577,808
Carrying amount
At 31 August 2023
278,947
At 31 August 2022
387,412
The company had no intangible fixed assets at 31 August 2023 or 31 August 2022.
DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 25 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Biomass boiler
Total
£
£
£
£
£
£
Cost
At 1 September 2022
3,124,849
331,685
908,585
-
0
283,899
4,649,018
Additions
2,642,887
11,004
151,783
9,540
-
0
2,815,214
At 31 August 2023
5,767,736
342,689
1,060,368
9,540
283,899
7,464,232
Depreciation and impairment
At 1 September 2022
415,151
120,747
526,827
-
0
112,446
1,175,171
Depreciation charged in the year
4,417
30,103
97,192
3,148
14,195
149,055
At 31 August 2023
419,568
150,850
624,019
3,148
126,641
1,324,226
Carrying amount
At 31 August 2023
5,348,168
191,839
436,349
6,392
157,258
6,140,006
At 31 August 2022
2,709,698
210,938
381,758
-
0
171,453
3,473,847
The company had no tangible fixed assets at 31 August 2023 or 31 August 2022.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
3,037,222
3,037,222
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2022 and 31 August 2023
3,037,222
Carrying amount
At 31 August 2023
3,037,222
At 31 August 2022
3,037,222
14
Subsidiaries

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

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
14
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Park Healthcare Limited
England & Wales
Ordinary
100.00
15
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
194,202
72,642
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
6,694,377
5,236,058
n/a
n/a

Financial assets measured at amortised cost comprise trade debtors and other debtors.

 

Financial liabilities measured at amortised cost comprise bank loans, trade creditors, amounts owed to group undertakings, other creditors and accruals.

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Flats held for resale
210,019
210,019
-
0
-
0
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
193,777
72,642
-
0
-
0
Corporation tax recoverable
-
0
4,105
-
0
-
0
Other debtors
425
-
-
0
-
0
Prepayments and accrued income
23,497
23,233
-
0
-
0
217,699
99,980
-
-
DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 27 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
195,654
197,637
-
0
92,637
Trade creditors
490,193
462,134
1,980
1,920
Amounts owed to group undertakings
-
0
-
0
3,540,983
1,471,110
Corporation tax payable
274,011
88,068
-
0
-
0
Other taxation and social security
98,493
43,961
-
-
Other creditors
415,281
261,421
13,665
13,665
Accruals and deferred income
454,965
552,428
6,000
2,200
1,928,597
1,605,649
3,562,628
1,581,532
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
5,138,284
3,762,438
-
0
1,898,688
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
5,333,938
3,960,075
-
0
1,991,325
Payable within one year
195,654
197,637
-
0
92,637
Payable after one year
5,138,284
3,762,438
-
0
1,898,688

Bank loans and overdrafts amounting to £5,333,938 (2022: £3,960,075) have been secured by way of fixed and floating charges over all property and undertakings of the company.

 

There is a cross guarantee between Park Healthcare Limited and Dalton Care Services Limited, in respect of any amounts due on loans. Park Healthcare Limited is a wholly owned subsidiary of Dalton Care Services Limited.

The company has loans in place which are repayable in monthly instalments until April 2028. The loans have a variable interest rate of 2.8% above the Bank of England base rate.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 28 -
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
197,769
190,834
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 September 2022
190,834
-
Charge to profit or loss
6,935
-
Liability at 31 August 2023
197,769
-

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within 12 months.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,795
47,582

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. The outstanding contributions at the reporting date are £16,109 (2022: £8,609).

 

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
100 ordinary shares of £1 each
100
100
100
100
24
Profit and loss reserves

The reserve is the accumulated retained profit.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 29 -
25
Financial commitments, guarantees and contingent liabilities

The company has provided a number of commitments in relation to some leasehold life time occupancy tenants, regarding the flats sold by the company. The company has agreed to repurchase the flats once the tenant has vacated the property at an agreed price. The total commitments are £150,000 as at 31 August 2023 (2022: £150,000). The directors consider that the company would be able to resell the leases at amounts not significantly below the agreed price but this is subject to prevailing market conditions in the future, the timing of which is not certain.

26
Operating lease commitments

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
2022
2023
2022
£
£
£
£
Within one year
3,888
11,668
-
-
Between two and five years
4,866
-
-
-
8,754
11,668
-
-
27
Related party transactions
Remuneration of key management personnel

The group's key management personnel are considered to be the directors. Their remuneration during the year is shown in note 7.

Other information

The group has taken advantage of the exemption available in FRS 102 Section 33 whereby it has not disclosed transactions between the parent company and its subsidiary undertaking.

28
Directors' transactions

Included within other creditors is an amount of £87,010 (2022: £78,080) due to directors of the group. No interest was charged on this loan.

29
Controlling party

The ultimate controlling party is Mr R D Murugupillai.

DALTON CARE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 30 -
30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
804,467
395,510
Adjustments for:
Taxation charged
190,400
148,639
Finance costs
315,813
109,672
Investment income
(2,037)
-
0
Amortisation and impairment of intangible assets
108,465
108,465
Depreciation and impairment of tangible fixed assets
149,055
141,917
Movements in working capital:
(Increase)/decrease in debtors
(121,824)
22,238
Increase in creditors
138,988
371,360
Cash generated from operations
1,583,327
1,297,801
31
Analysis of changes in net debt - group
1 September 2022
Cash flows
31 August 2023
£
£
£
Cash at bank and in hand
1,627,301
(165,217)
1,462,084
Borrowings excluding overdrafts
(3,960,075)
(1,373,863)
(5,333,938)
(2,332,774)
(1,539,080)
(3,871,854)
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