Company registration number 11419595 (England and Wales)
ASHTON CARE (BOGNOR REGIS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
ASHTON CARE (BOGNOR REGIS) LIMITED
COMPANY INFORMATION
Director
Mrs R Newman-Smith
Secretary
Mrs R Newman-Smith
Company number
11419595
Registered office
98-100 Chichester Road
Bognor Regis
West Sussex
England
PO21 5AA
Auditor
James Todd & Co Limited
Drayton House
Drayton Lane
Chichester
West Sussex
England
PO20 2EW
ASHTON CARE (BOGNOR REGIS) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
ASHTON CARE (BOGNOR REGIS) LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 1 -
The director presents the strategic report for the period ended 31 March 2024.
Review of the business
The directors are very pleased with the performance of the company during the year.
Turnover decreased to £3,474,760 from £4,261,112 last year, with a 94% gross profit margin remaining consistent with the 93% achieved in the previous year.
The company has maintained the number of employees, to an annual average of 112. Overall the administrative expenses have decreased compared to the prior year.
The company’s net assets rose to £3,868,526 from £3,699,495 at the start fo the year due to the profit made during the year , with the value of the current assets increasing and the current liabilities decreasing. Debtor days (the average time taken for trade debtors to pay) increased slightly to 35 days from 26 days in the previous year.
.............................................
Mrs R Newman-Smith
Director
Date: .............................................
ASHTON CARE (BOGNOR REGIS) LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -
The director presents her annual report and financial statements for the period ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of residential care homes and of domiciliary care services.
Results and dividends
The results for the period are set out on page 7.
Ordinary dividends were paid amounting to £176,000. The director does not recommend payment of a further dividend.
Director
The director who held office during the period and up to the date of signature of the financial statements was as follows:
Mrs R Newman-Smith
Auditor
James Todd & Co Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
ASHTON CARE (BOGNOR REGIS) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -
On behalf of the board
Mrs R Newman-Smith
Director
7 August 2024
ASHTON CARE (BOGNOR REGIS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ASHTON CARE (BOGNOR REGIS) LIMITED
- 4 -
Opinion
We have audited the financial statements of Ashton Care (Bognor Regis) Limited (the 'company') for the period ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:
the information given in the strategic report and the director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
ASHTON CARE (BOGNOR REGIS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ASHTON CARE (BOGNOR REGIS) LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.
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:
Based on our understanding of the company, we consider those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Financial Reporting Standard 102 (FRS 102) and the Corporation Tax Act 2010. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override, and considered that the principle risk was related to the posting of inappropriate journal entries to improve the performance of the company.
ASHTON CARE (BOGNOR REGIS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ASHTON CARE (BOGNOR REGIS) LIMITED (CONTINUED)
- 6 -
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation and through collusion.
Procedures performed by the audit team included:
Enquiry of management regarding known or suspected instances of non-compliance with laws and regulations;
Evaluation of controls designed to prevent and detect irregularities, particularly in relation to the recording of income;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
Enquiry of management around actual and potential litigation and claims;
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Verification of the existence of employees.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and tractions reflected in the financial statements, the less likely we would become aware of it. As in all our audit engagements, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors and those charged with governance that represented a risk of material misstatement due to fraud.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Kevin Coppard FCA
Senior Statutory Auditor
For and on behalf of James Todd & Co Limited
8 August 2024
Chartered Accountants
Statutory Auditor
Drayton House
Drayton Lane
Chichester
West Sussex
England
PO20 2EW
ASHTON CARE (BOGNOR REGIS) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2024
- 7 -
Period
Year
ended
ended
31 March
30 June
2024
2023
Notes
£
£
Turnover
3,474,760
4,261,112
Cost of sales
(183,525)
(284,402)
Gross profit
3,291,235
3,976,710
Administrative expenses
(2,758,482)
(3,212,638)
Other operating income
16,000
Operating profit
2
532,753
780,072
Interest receivable and similar income
5
3,817
329
Interest payable and similar expenses
(74,275)
(79,694)
Fair value gains and losses on freehold properties
1,060,000
Profit before taxation
462,295
1,760,707
Tax on profit
6
(117,264)
(418,260)
Profit for the financial period
345,031
1,342,447
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ASHTON CARE (BOGNOR REGIS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024
- 8 -
Period
Year
ended
ended
31 March
30 June
2024
2023
£
£
Profit for the period
345,031
1,342,447
Other comprehensive income
-
-
Total comprehensive income for the period
345,031
1,342,447
ASHTON CARE (BOGNOR REGIS) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
31 March 2024
30 June 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
8,061,190
7,982,314
Current assets
Debtors
9
444,894
332,803
Cash at bank and in hand
287,046
241,401
731,940
574,204
Creditors: amounts falling due within one year
10
(3,347,953)
(3,205,628)
Net current liabilities
(2,616,013)
(2,631,424)
Total assets less current liabilities
5,445,177
5,350,890
Creditors: amounts falling due after more than one year
11
(1,261,238)
(1,354,877)
Provisions for liabilities
Deferred tax liability
14
315,413
296,518
(315,413)
(296,518)
Net assets
3,868,526
3,699,495
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
17
3,868,426
3,699,395
Total equity
3,868,526
3,699,495
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 7 August 2024
Mrs R Newman-Smith
Director
Company registration number 11419595 (England and Wales)
ASHTON CARE (BOGNOR REGIS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
100
2,356,948
2,357,048
Year ended 30 June 2023:
Profit and total comprehensive income
-
1,342,447
1,342,447
Balance at 30 June 2023
100
3,699,395
3,699,495
Period ended 31 March 2024:
Profit and total comprehensive income
-
345,031
345,031
Dividends
7
-
(176,000)
(176,000)
Balance at 31 March 2024
100
3,868,426
3,868,526
ASHTON CARE (BOGNOR REGIS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
540,790
378,846
Interest paid
(74,275)
(79,694)
Income taxes paid
(136,884)
(135,307)
Net cash inflow from operating activities
329,631
163,845
Investing activities
Purchase of tangible fixed assets
(138,582)
(133,269)
Repayment of loans
(6,566)
Interest received
3,817
329
Net cash used in investing activities
(141,331)
(132,940)
Financing activities
Repayment of bank loans
(35,804)
6,348
Payment of finance leases obligations
69,149
Dividends paid
(176,000)
Net cash (used in)/generated from financing activities
(142,655)
6,348
Net increase in cash and cash equivalents
45,645
37,253
Cash and cash equivalents at beginning of period
241,401
204,148
Cash and cash equivalents at end of period
287,046
241,401
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
Ashton Care (Bognor Regis) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 98-100 Chichester Road, Bognor Regis, West Sussex, England, PO21 5AA.
1.1
Reporting period
The company has shortened the year-end. This was done to bring the year-end in line with the parent company. As a result, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable. The current period is a 9 month period, compared to a 12 month period in the prior year.
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.
This 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:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of ENS Holdings (West Sussex) Limited. These consolidated financial statements are available from its registered office.
1.3
Going concern
At the time of approving the financial statemments, ttruehe directors have a reasonable expectation that the company 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.
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.4
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 fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
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:
Freehold land and buildings
See below
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
3 years straight line
Motor vehicles
3 years straight line
Freehold land and buildings are not depreciated.
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 credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.7
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.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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 company 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 company 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 company’s contractual obligations expire or are discharged or cancelled.
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax 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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of 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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.14
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.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Government grants
-
(16,000)
Fees payable to the company's auditor for the audit of the company's financial statements
25,035
8,665
Depreciation of owned tangible fixed assets
55,671
52,950
Loss on disposal of tangible fixed assets
4,035
19,441
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Number
Number
Nursing
107
107
Administration
5
5
Total
112
112
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,820,203
2,201,188
Social security costs
149,872
179,497
Pension costs
24,318
35,275
1,994,393
2,415,960
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 18 -
4
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
73,258
Company pension contributions to defined contribution schemes
1,667
-
74,925
5
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,817
5
Other interest income
324
Total income
3,817
329
6
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
98,369
140,793
Deferred tax
Origination and reversal of timing differences
18,895
277,467
Total tax charge
117,264
418,260
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
6
Taxation
(Continued)
- 19 -
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
462,295
1,760,707
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
115,574
440,177
Tax effect of expenses that are not deductible in determining taxable profit
10,300
512
Permanent capital allowances in excess of depreciation
(27,505)
(34,886)
Movement in deferred tax provision
18,895
12,457
Taxation charge for the period
117,264
418,260
7
Dividends
2024
2023
£
£
Final paid
176,000
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 20 -
8
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 July 2023
7,858,417
42,134
72,855
31,619
52,695
8,057,720
Additions
16,457
28,921
7,929
85,274
138,581
Disposals
(1,285)
(1,887)
(2,174)
(5,346)
At 31 March 2024
7,858,417
57,306
99,889
37,374
137,969
8,190,955
Depreciation and impairment
At 1 July 2023
14,650
15,868
14,090
30,798
75,406
Depreciation charged in the period
6,288
13,140
8,113
28,130
55,671
Eliminated in respect of disposals
(270)
(681)
(361)
(1,312)
At 31 March 2024
20,668
28,327
21,842
58,928
129,765
Carrying amount
At 31 March 2024
7,858,417
36,638
71,562
15,532
79,041
8,061,190
At 30 June 2023
7,858,417
27,484
56,987
17,529
21,897
7,982,314
Land and buildings with a carrying amount of £7,858,417 were revalued at 31 May 2023 by Avison Young, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
Freehold land and buildings
2024
2023
£
£
Cost
6,755,424
6,755,424
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
357,728
300,475
Other debtors
12,549
840
Prepayments and accrued income
74,617
31,488
444,894
332,803
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 21 -
10
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
12
162,357
45,122
Obligations under finance leases
13
9,749
Trade creditors
65,191
105,742
Corporation tax
98,369
136,884
Other taxation and social security
101,369
37,834
Deferred income
15
51,921
69,465
Other creditors
2,813,373
2,785,421
Accruals
45,624
25,160
3,347,953
3,205,628
11
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
12
1,201,838
1,354,877
Obligations under finance leases
13
59,400
1,261,238
1,354,877
12
Loans and overdrafts
2024
2023
£
£
Bank loans
1,364,195
1,399,999
Payable within one year
162,357
45,122
Payable after one year
1,201,838
1,354,877
The long-term loans are secured by fixed charges over Abbots Lawn, 104-106 Aldwick Road and 124-128 Aldwick Road.
13
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
9,749
In two to five years
59,400
69,149
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
13
Finance lease obligations
(Continued)
- 22 -
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
50,413
31,518
Revaluations
265,000
265,000
315,413
296,518
2024
Movements in the period:
£
Liability at 1 July 2023
296,518
Charge to profit or loss
18,895
Liability at 31 March 2024
315,413
15
Deferred income
2024
2023
£
£
Other deferred income
51,921
69,465
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary of £1 each
100
100
100
100
Issued and fully paid
Ordinary of £1 each
100
100
100
100
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 23 -
17
Profit and loss reserves
2024
2023
£
£
At the beginning of the period
3,699,395
2,356,948
Profit for the period
345,031
1,342,447
Dividends declared and paid in the period
(176,000)
-
At the end of the period
3,868,426
3,699,395
Included within profit and loss reserves are non-distributable profits, as set out below:
2024
2023
£
£
Non-distributable profits included above
At the beginning of the period
-
-
Non distributable profits in the period
795,000
795,000
At the end of the period
795,000
795,000
Distributable profits
3,073,426
2,904,395
18
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
9,400
9,400
Between two and five years
11,750
18,800
21,150
28,200
19
Related party transactions
Transactions with related parties
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 24 -
20
Directors' transactions
Dividends totalling £0 (2023 - £0) were paid in the period in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Rebecca Nwman-Smith - Advance
-
-
11,450
(4,884)
6,566
-
11,450
(4,884)
6,566
21
Ultimate controlling party
The ultimate parent company is:
ENS Holdings (West Sussex) Limited
98-100 Chichester Road
Bognor Regis
West sussex
PO21 5AA
ENS Holdings (West Sussex) Limited prepares consolidated accounts and is both the smallest and largest group for which consolidated accounts, including Ashton Care (Bognor Regis) Limited, are prepared.
22
Cash generated from operations
2024
2023
£
£
Profit for the period after tax
345,031
1,342,447
Adjustments for:
Taxation charged
117,264
418,260
Finance costs
74,275
79,694
Investment income
(3,817)
(329)
Loss on disposal of tangible fixed assets
4,035
19,441
Fair value gain on investment properties
(1,060,000)
Depreciation and impairment of tangible fixed assets
55,671
52,950
Movements in working capital:
(Increase)/decrease in debtors
(105,525)
113,694
Increase/(decrease) in creditors
71,400
(617,887)
(Decrease)/increase in deferred income
(17,544)
30,576
Cash generated from operations
540,790
378,846
ASHTON CARE (BOGNOR REGIS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 25 -
23
Analysis of changes in net debt
1 July 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
241,401
45,645
287,046
Borrowings excluding overdrafts
(1,399,999)
35,804
(1,364,195)
Obligations under finance leases
-
(69,149)
(69,149)
(1,158,598)
12,300
(1,146,298)
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