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Registration number: 02336513

Osborne Care Homes Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2024

 

Osborne Care Homes Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 26

 

Osborne Care Homes Limited

Company Information

Directors

Mr M B Slator

Mr J A Slator

Registered office

Withey House
26 Withey Close West
Bristol
BS9 3SX

Auditors

Milsted Langdon LLP
Chartered Accountants and Statutory Auditors
Freshford House
Redcliffe Way
Bristol
BS1 6NL

 

Osborne Care Homes Limited

Strategic Report for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

Principal activity

The principal activity of the company is the operation of care homes for the elderly

Fair review of the business

Turnover for the year has increased by 14.1% (2023 increase of 18.9%) to £5,412,118 from £4,744,932. Profit before tax during the period has increased to £554,580 (2023 - £357,605).

The directors continue to closely monitor occupancy levels at Ysguborwen House and Osborne House and continue to invest in capital infrastructure.

The nature of the revenue received by the company is variable, but a high proportion of costs are linked to this. There remains a number of fixed overheads which are monitored monthly against budgets and where it is thought necessary, measures are taken to control costs. However high levels of inflation have an on-going impact on overhead costs.

Non-financial information

Outlook

The directors do not foresee any material changes in the principal activities of the company.

Staff recruitment and retention continues to be a major problem for the sector with cost push impacting fee setting for both private and local authority placements. The company is a Real Living Wage employer across both homes for all front line care staff.

The company continues to make significant investment in its staff and in the physical buildings and environment of its homes and expects increases in occupancy to enable the company to maintain profitability for the foreseeable future.

Approved and authorised by the Board on 21 August 2024 and signed on its behalf by:
 

.........................................
Mr J A Slator
Director

 

Osborne Care Homes Limited

Directors' Report for the Year Ended 31 March 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr M B Slator

Mr J A Slator

Financial instruments

Objectives and policies

The company is exposed to price risk, credit risk, liquidity and cashflow risk. Appropriate policies have been developed and implemented to identify, evaluate and manage key risks and the directors review risk management strategies regularly.

The company is constantly looking for ways to improve its facilities and occupancy rates and strives to ensure the care homes provide the highest level of care by working closely with regulators, local authorities and family members. The directors believe this will put the company well placed to be the favoured care home when the need for the facilities it offers arises.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk - the company is exposed to price risk as a result of its operations in the private sector. However, care fees are reviewed regularly against other providers and the facilities offered to ensure care facilities offered by the company represent value for money.

Credit risk - fees for residents funded by the public sector are remitted by local authorities both in advance and arrears and the risk arising from these as such is considered low. Fees for private residents are invoiced in advance and in line with industry commercial practice.

Liquidity and cash flow risk - the company's exposure to liquidity risk is minimal as the company has adequate net current assets.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Milsted Langdon LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 21 August 2024 and signed on its behalf by:

Mr J A Slator
Director

   
     
 

Osborne Care Homes Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

 

Osborne Care Homes Limited

Independent Auditor's Report to the Members of Osborne Care Homes Limited

Qualified opinion

We have audited the financial statements of Osborne Care Homes Limited (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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 possible effects of the matter described in the basis for qualified opinion section of our report, 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 year 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.

Basis for qualified opinion on financial statements

We were unable to obtain sufficient and appropriate audit evidence to support the value of freehold land and buildings for the year ended 31 March 2024, totaling £6,880,000. As detailed in Note 12, the directors based their valuation on information they were aware of, which was not prepared for use within the financial statements and had not been authorised to be used within the financial statements by an external party. We were therefore unable to obtain reasonable assurance over the carrying value of the freehold land and buildings as at the balance sheet date, in line with the requirements of Financial Reporting Standards 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements were 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.

 

Osborne Care Homes Limited

Independent Auditor's Report to the Members of Osborne Care Homes Limited

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 4, 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 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 company or to cease operations, or have no realistic alternative but to do so.

 

Osborne Care Homes Limited

Independent Auditor's Report to the Members of Osborne Care Homes Limited

Auditor 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud;

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
D S Jacobs (Senior Statutory Auditor)
For and on behalf of Milsted Langdon LLP, Statutory Auditor
Freshford House
Redcliffe Way
Bristol
BS1 6NL

23 August 2024

 

Osborne Care Homes Limited

Profit and Loss Account for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

3

5,412,118

4,744,932

Cost of sales

 

(3,971,901)

(3,677,035)

Gross profit

 

1,440,217

1,067,897

Administrative expenses

 

(777,525)

(601,514)

Other operating income

4

27,174

21,845

Operating profit

5

689,866

488,228

Other interest receivable and similar income

6

25,189

20,427

Interest payable and similar expenses

7

(236,868)

(151,050)

   

(211,679)

(130,623)

Profit before tax

 

478,187

357,605

Tax on profit

11

(126,153)

(88,972)

Profit for the financial year

 

352,034

268,633

The above results were derived from continuing operations.

 

Osborne Care Homes Limited

Statement of Comprehensive Income for the Year Ended 31 March 2024

2024
£

2023
£

Profit for the year

352,034

268,633

Surplus on freehold land and buildings revaluation

1,682,275

-

Total comprehensive income for the year

2,034,309

268,633

 

Osborne Care Homes Limited

(Registration number: 02336513)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

7,083,797

4,865,857

Investment property

13

201,500

201,500

 

7,285,297

5,067,357

Current assets

 

Stocks

14

21,426

22,763

Debtors

15

1,802,821

1,795,522

Cash at bank and in hand

 

248,440

22,278

 

2,072,687

1,840,563

Creditors: Amounts falling due within one year

17

(1,439,361)

(877,595)

Net current assets

 

633,326

962,968

Total assets less current liabilities

 

7,918,623

6,030,325

Creditors: Amounts falling due after more than one year

17

(2,098,509)

(2,698,553)

Provisions for liabilities

18

(698,962)

(217,929)

Net assets

 

5,121,152

3,113,843

Capital and reserves

 

Called up share capital

15,000

15,000

Retained earnings

5,106,152

3,098,843

Shareholders' funds

 

5,121,152

3,113,843

Approved and authorised by the Board on 21 August 2024 and signed on its behalf by:
 

Mr J A Slator
Director

   
     
 

Osborne Care Homes Limited

Statement of Changes in Equity for the Year Ended 31 March 2024

Share capital
£

Retained earnings
£

Total
£

At 1 April 2023

15,000

3,098,843

3,113,843

Profit for the year

-

352,034

352,034

Other comprehensive income

-

1,682,275

1,682,275

Total comprehensive income

-

2,034,309

2,034,309

Dividends

-

(27,000)

(27,000)

At 31 March 2024

15,000

5,106,152

5,121,152

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

15,000

2,857,210

2,872,210

Profit for the year

-

268,633

268,633

Dividends

-

(27,000)

(27,000)

At 31 March 2023

15,000

3,098,843

3,113,843

 

Osborne Care Homes Limited

Statement of Cash Flows for the Year Ended 31 March 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

352,034

268,633

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

96,150

98,204

Finance income

6

(25,189)

(20,427)

Finance costs

7

236,868

151,050

Income tax expense

11

126,153

88,972

 

786,016

586,432

Working capital adjustments

 

Decrease/(increase) in stocks

14

1,337

(9,037)

Increase in trade debtors

15

(7,299)

(16,967)

Increase in trade creditors

17

184,773

23,482

Cash generated from operations

 

964,827

583,910

Income taxes paid

11

(113,511)

(15,032)

Net cash flow from operating activities

 

851,316

568,878

Cash flows from investing activities

 

Interest received

6

25,189

20,427

Acquisitions of tangible assets

(169,673)

(533,156)

Net cash flows from investing activities

 

(144,484)

(512,729)

Cash flows from financing activities

 

Interest paid

7

(236,868)

(151,050)

Proceeds from bank borrowing draw downs

 

(195,071)

(190,051)

Repayment of other borrowing

 

(21,731)

136,167

Dividends paid

23

(27,000)

(27,000)

Net cash flows from financing activities

 

(480,670)

(231,934)

Net increase/(decrease) in cash and cash equivalents

 

226,162

(175,785)

Cash and cash equivalents at 1 April

 

22,278

198,063

Cash and cash equivalents at 31 March

 

248,440

22,278

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in the United Kingdom.

The address of its registered office is:
Withey House
26 Withey Close West
Bristol
BS9 3SX

The principal place of business is:
Ysguborwen House
Llwydcoed
Aberdare
Rhondda Cynon Taff
CF44 0AX
Wales

These financial statements were authorised for issue by the Board on 21 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 The Financial Reporting Standard (FRS) 102 Section - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest pound.

Going concern

The directors have reviewed the company’s supply chains, key customers, capital resources and continues to operate within its budgets and forecasts following the year end.

The company made a profit before tax of £554,580 (2023 - £357,605) and had a bank balance of £248,440 (2023 – £22,278) at the year ended 31 March 2024.

Based on information available to the directors at the date of approval of these accounts the company has adopted the going concern basis when preparing these financial statements. The company has adequate resources to continue to trade for the foreseeable future for at least 12 months from the date of adoption of these financial statements.

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Key sources of estimation uncertainty

In the application of the company'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.

The estimates and assumptions which are considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities arise in respect of the valuation of the freehold land & buildings and investment property, for which management are of the opinion require no impairment and hold at their market value. The carrying amount of freehold land & buildings is £6,880,000 (2023 - £4,669,320) and the carrying amount of investment property is £201,500 (2023 - £201,500).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities.

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;
- specific criteria have been met for each of the company's activities;
- the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
- the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Government grants

Government grants are recognised using the accrual model. Where the costs have already been incurred then the grant is credited to other operating income in the profit and loss account.

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Finance income and costs policy

Interest income and expenses are recognised using the effective interest rate method.

Tax

The tax expense for the period comprises current and deferred 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.

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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses, except for Freehold property, which is held at valuation.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Any revaluation increase arising on the revaluation is credited to the revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in which case the increase is credited to the income statement to the extent of the decrease previously expensed. A decrease in carrying amount arising on the revaluation is charged as an expense to the extent that it exceeds the balance, if any, held in the revaluation reserve relating to a previous revaluation of that asset.

On the subsequent sale or scrappage of a revalued asset, the attributable revaluation surplus remaining in the revaluation reserve is transferred directly to retained earnings.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

nil

Fixtures, fittings and equipment

20% straight line

Motor vehicles

25% reducing balance

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

No depreciation is provided on freehold land and buildings which is a departure from the requirements of the Companies Act 2006. These properties are held solely for the trade of the company and in the opinion of the directors, their fair value significantly exceeds their book value, although the assets continue to be held at historic cost. Any measure of consumption to depreciate them is therefore not considered to be true and fair reflection of the asset held.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate.The directors are the valuers, who use 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.

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.

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.

Stocks

Stocks are stated at the lower of cost and estimated cost of usage within the business. Cost is determined using the first-in, first-out (FIFO) method.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its cost of usage within the business; the impairment loss is recognised immediately in the profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

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.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Financial instruments

Recognition and measurement
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments.
 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of care services

5,412,118

4,744,932

All income recognised in the current and preceding year arose from services provided in the United Kingdom.

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Local Authority grants

15,330

1,159

Sub lease rental income

11,669

20,331

Miscellaneous other operating income

175

355

27,174

21,845

5

Operating profit

Arrived at after charging/(crediting):

2024
£

2023
£

Depreciation expense

96,150

98,204

6

Other interest receivable and similar income

2024
£

2023
£

Other finance income

25,189

20,427

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

231,634

150,374

Other interest expense

5,234

676

236,868

151,050

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

3,060,096

2,715,780

Social security costs

235,536

237,456

Pension costs

54,036

56,050

Agency costs

55,740

133,082

3,405,408

3,142,368

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Directors

2

2

Care and support

128

137

Administration

6

6

136

145

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

75,000

35,000

Contributions paid to money purchase schemes

1,245

863

76,245

35,863

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under defined benefit pension scheme

1

1

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

10

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

9,900

9,600

Other fees to auditors

All other non-audit services

8,052

5,160


 

11

Taxation

Tax charged/(credited) in the income statement:

2024
£

2023
£

Current taxation

UK corporation tax

107,262

5,437

UK corporation tax adjustment to prior periods

-

1,839

107,262

7,276

Deferred taxation

Arising from origination and reversal of timing differences

18,891

81,696

Tax expense in the income statement

126,153

88,972

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

478,187

357,605

Corporation tax at standard rate

119,547

67,945

Decrease in UK and foreign current tax from adjustment for prior periods

-

(14,954)

Tax increase from effect of capital allowances and depreciation

-

49,419

Tax decrease from other short-term timing differences

-

(1,581)

Effect of expense not deductible in determining taxable profit (tax loss)

6,606

79

Other tax effects for reconciliation between accounting profit and tax expense (income)

-

(11,936)

Total tax charge

126,153

88,972

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

12

Tangible assets

Freehold land and buildings
 £

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2023

4,965,171

610,103

56,867

5,632,141

Revaluations

1,848,566

-

-

1,848,566

Additions

66,263

103,410

-

169,673

Disposals

-

(108,536)

-

(108,536)

At 31 March 2024

6,880,000

604,977

56,867

7,541,844

Depreciation

At 1 April 2023

295,851

425,918

44,515

766,284

Charge for the year

-

93,062

3,088

96,150

Eliminated on disposal

-

(108,536)

-

(108,536)

Eliminated on revaluation

(295,851)

-

-

(295,851)

At 31 March 2024

-

410,444

47,603

458,047

Carrying amount

At 31 March 2024

6,880,000

194,533

9,264

7,083,797

At 31 March 2023

4,669,320

184,185

12,352

4,865,857

Revaluation

The fair value of the company's Freehold land and buildings was revalued on 30 January 2024 by the directors based on information they were aware of, which was not prepared for use within the financial statements and had not been authorised to be used within the financial statements by an external party.
The directors valuation followed an appropriate valuation methodology based on profits.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £4,811,976 (2023 - £4,669,320).

13

Investment properties

2024
£

At 1 April 2023 and 31 March 2024

201,500


Investment property comprises of a holiday home in Cornwall. It is included in the balance sheet at the fair value as at 31 March 2024. The fair value of the property is that determined by an external valuation undertaken for the directors by Knight Frank in April 2015 and the directors considered this to still be equal to its carrying value.

The directors consider that there has been no material change in the value of the property in the year ended 31 March 2024.

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

14

Stocks

2024
£

2023
£

Stocks

21,426

22,763

Impairment of stocks

The amount of reversal of impairment recognised in profit or loss is £Nil (2023 - £Nil).

15

Debtors

Current

2024
£

2023
£

Trade debtors

58,922

118,576

Other debtors

1,737,169

1,656,353

Prepayments

6,730

20,593

 

1,802,821

1,795,522

Trade debtors are stated after the provision for impairment of £Nil (2023 - £Nil)

16

Cash and cash equivalents

2024
£

2023
£

Cash at bank

248,440

22,278

17

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

21

661,902

278,660

Trade creditors

 

75,046

71,220

Social security and other taxes

 

58,930

47,706

Outstanding defined contribution pension costs

 

31,735

10,232

Other creditors

 

270,185

210,231

Accruals and deferred income

 

221,290

133,024

Corporation tax liability

 

120,273

126,522

 

1,439,361

877,595

Due after one year

 

Loans and borrowings

21

2,098,509

2,698,553

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Bank loans are denominated in GBP with interest payable at a fixed amount over the Bank of England base rate.

The bank has the following charges over the company and security therefrom:
- Fixed and floating charge over all assets and property of the company;
- Fixed charge over Ysguborwen House, Llwydcoed, Aberdare, CF44 0AX;
- Fixed charge over Osborne House, 16 Bay Road, Clevedon, Bristol, BS21 7BT; and
- Fixed and floating charge over Flat 4, The Ridges, Maenporth, Falmouth, TR11 5HN;
 

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2023

217,929

217,929

Additional provisions

481,033

481,033

At 31 March 2024

698,962

698,962

Provisions for liabilities were in respect of accelerated capital allowances and other short term timing differences in the current and preceding year.

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £54,036 (2023 - £56,050).

Contributions totalling £31,735 (2023 - £10,232) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

15,000

15,000

15,000

15,000

       

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
Ordinary shares carry one voting right per share and the right to dividends.

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

21

Loans and borrowings

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

2,009,582

2,584,117

Other borrowings

88,927

114,436

2,098,509

2,698,553

Current loans and borrowings

2024
£

2023
£

Bank borrowings

636,393

256,929

Other borrowings

25,509

21,731

661,902

278,660

22

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

2,306

3,115

Later than one year and not later than five years

5,342

5,589

7,648

8,704

The amount of non-cancellable operating lease payments recognised as an expense during the year was £2,855 (2023 - £3,115).

23

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend of £1.80 per each ordinary share

27,000

27,000

 

 

24

Commitments

Other financial commitments

An unlimited cross-company composite guarantee is in force with related companies Osborne Care Holdings Limited and Worcester Garden (No. 1) Limited as security for bank borrowings.
The total amount of other financial commitments not provided in the financial statements was £1,624,000 (2023 - £1,624,000).

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

25

Related party transactions

Transactions with directors

2024

At 1 April 2023
£

Advances to director
£

Repayments by director
£

At 31 March 2024
£

Mr M B Slator

1,116,097

59,263

(28,768)

1,146,592

85,747

25,057

-

110,804

1,201,844

84,320

(28,768)

1,257,396

Mr J A Slator

5,085

10,000

-

15,085

-

132

-

132

5,085

10,132

-

15,217

2023

At 1 April 2022
£

Advances to director
£

Repayments by director
£

At 31 March 2023
£

Mr M B Slator

1,079,572

73,981

(37,456)

1,116,097

85,496

20,427

(20,176)

85,747

1,165,068

94,408

(57,632)

1,201,844

Mr J A Slator

5,085

-

-

5,085

5,085

-

-

5,085

Loans to directors are repayable on demand and interest is charged at the official HMRC rate where applicable.

Expenditure with and payables to related parties

2024

Key management
£

Dividends

27,000

2023

Key management
£

Dividends

27,000

 

Osborne Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Loans to related parties

2024

Other related parties
£

Total
£

At start of period

81,699

81,699

Advanced

407,575

407,575

Repaid

(430,370)

(430,370)

At end of period

58,904

58,904

2023

Other related parties
£

Total
£

At start of period

108,513

108,513

Advanced

224,161

224,161

Repaid

(250,975)

(250,975)

At end of period

81,699

81,699

Terms of loans to related parties

Loans to other related parties are interest free and repayable on demand

26

Financial instruments

Categorisation of financial instruments

2024
 £

2023
 £

Financial assets measured at fair value through profit or loss

1,796,091

1,774,929

Financial liabilities measured at fair value through profit or loss

435,896

339,389