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Registration number: 11676654

Homecare Estates Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 November 2023

 

Homecare Estates Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 10

 

Homecare Estates Limited

Company Information

Director

Mr S Babbar

Registered office

39 Sutton Avenue
Langley
Slough
SL3 7AP

Accountants

Aventus Partners Limited
Hygeia Building
Ground Floor
66-68 College Road
Harrow
Middlesex
HA1 1BE

 

Homecare Estates Limited

(Registration number: 11676654)
Balance Sheet as at 30 November 2023

Note

2023
£

2022
£

Fixed assets

 

Investment property

4

2,045,165

1,452,924

Investments

5

50

50

 

2,045,215

1,452,974

Current assets

 

Debtors

6

413,216

581,098

Cash at bank and in hand

 

40,015

39,858

 

453,231

620,956

Creditors: Amounts falling due within one year

7

(951,482)

(952,564)

Net current liabilities

 

(498,251)

(331,608)

Total assets less current liabilities

 

1,546,964

1,121,366

Creditors: Amounts falling due after more than one year

7

(1,525,501)

(1,117,412)

Net assets

 

21,463

3,954

Capital and reserves

 

Called up share capital

10

100

100

Retained earnings

21,363

3,854

Shareholders' funds

 

21,463

3,954

For the financial year ending 30 November 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

The financial statements were approved and authorised for issue by the director on 15 August 2024
 

.........................................
Mr S Babbar
Director

 

Homecare Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
39 Sutton Avenue
Langley
Slough
SL3 7AP
United Kingdom

These financial statements were authorised for issue by the director on 15 August 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are presented in Sterling, which is the functional currency of the company.

Going concern

At the time of approving these financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the forseeable future and is willing to provide the necessary financial support as necessary and accordingly these financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the rental income in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Homecare Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023 (continued)

2

Accounting policies (continued)

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the director. The director uses observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Homecare Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023 (continued)

2

Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Homecare Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023 (continued)

2

Accounting policies (continued)

Financial instruments

Classification
Classification
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans from related parties.


 Recognition and measurement
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method.

Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an out-right short term loan not at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.


 Impairment
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss if recognised in the Profit and loss account.

For financial assets measured as amortised cost, the impairment loss is measured as the difference between an asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate. If a financial asset has a variable interest rate, the discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

3

Staff numbers

The average monthly number of persons employed by the company (including the director) during the year, was 2 (2022: 2).

 

Homecare Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023 (continued)

4

Investment properties

2023
£

At 1 December 2020

1,452,924

Additions

592,241

At 30 November 2021

2,045,165

The fair value of the investment property at the balance sheet date was £2,045,165 (2021: £1,452,924). The fair value of the investment property was assessed internally by the director at the year end.

There has been no valuation of investment property by an independent valuer.

5

Investments

2023
£

2022
£

Investments in subsidiaries

50

50

Subsidiaries

£

Cost or valuation

At 1 December 2022

50

Carrying amount

At 30 November 2023

50

At 30 November 2022

50

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Dreams Estates Limited (Formerly Rightmove Estates Limited)

Hygeia Building, Ground Floor,
66-68 College Road,
Harrow, Middlesex,
United Kingdom,
HA1 1BE

Ordinary shares

50%

50%

 

Homecare Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023 (continued)

6

Debtors

Note

2023
£

2022
£

Trade debtors

 

512

6,100

Amounts owed by group undertakings

11

410,727

394,289

Prepayments

 

1,977

-

Other debtors

 

-

180,709

 

413,216

581,098

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

8

11,233

11,232

Trade creditors

 

60

1,800

Taxation and social security

 

349

348

Other creditors

 

8,935

3,835

Accrued expenses

 

2,400

2,100

Corporation tax payable

 

2,471

-

Directors current account

 

926,034

933,249

 

951,482

952,564

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

1,525,501

1,117,412

 

Homecare Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023 (continued)

8

Loans and borrowings

Note

2023
£

2022
£

Current loans and borrowings

Other borrowings

11,233

11,232

Note

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

1,525,501

1,117,412

Bank borrowings

Bounce back loan interest only loan is denominated in Pound sterling with a nominal fixed interest rate of 2.5% per annum for the first two years and the final instalment is due on 16 May 2026. The carrying amount at the year end is £24,240 (2022 - £35,000).

Bank loans are secured by a charge against the various properties held by the company. The loans are all interest payable only loans.

9

Dividends

2023

2022

£

£

Interim dividend of £10.00 (2022 - £20.00) per ordinary share

1,000

2,000

 

 

10

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       
 

Homecare Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023 (continued)

11

Related party transactions

Summary of transactions with subsidiaries

The company has provided funding to Dreams Estates Limited (Formerly Rightmove Estates Limited), a company incorporated in England and Wales. Mr S Babbar is also company director of Dreams Estates Limited (Formerly Rightmove Estates Limited). At the balance sheet date the amount owed to the company by Dreams Estates Limited (Formerly Rightmove Estates Limited) was £410,727 (2022: £394,289). The loan is interest free, unsecured and with no fixed terms of repayment.

12

Ultimate controlling party

The ultimate controlling party is Mr Sanjay Babbar.