REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 August 2023 |
for |
Avon Lodge UK Limited |
REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 August 2023 |
for |
Avon Lodge UK Limited |
Avon Lodge UK Limited (Registered number: 05209947) |
Contents of the Financial Statements |
for the Year Ended 31 August 2023 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 | to | 3 |
Notes to the Financial Statements | 4 | to | 11 |
Avon Lodge UK Limited |
Company Information |
for the Year Ended 31 August 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
1 Beauchamp Court |
10 Victors Way |
Barnet |
Hertfordshire |
EN5 5TZ |
Avon Lodge UK Limited (Registered number: 05209947) |
Statement of Financial Position |
31 August 2023 |
31.8.23 | 31.8.22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
Investment Properties | 6 |
CURRENT ASSETS |
Stocks | 7 |
Debtors | 8 |
Prepayments and accrued income |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 9 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
10 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 13 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
Avon Lodge UK Limited (Registered number: 05209947) |
Statement of Financial Position - continued |
31 August 2023 |
The financial statements were approved by the director and authorised for issue on |
Avon Lodge UK Limited (Registered number: 05209947) |
Notes to the Financial Statements |
for the Year Ended 31 August 2023 |
1. | STATUTORY INFORMATION |
Avon Lodge UK Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. |
Turnover and other income |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. |
Turnover represents the fee income relating to the provision of care services. Fee income comprises care home fees which are recognised when the delivery of the service is completed. Fees invoiced in advance are included in deferred income until the service is completed. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - Over 300 years |
Fixtures and fittings | - 25% on reducing balance |
Motor vehicle | - 25% on reducing balance |
Computer equipment | - 20% on cost |
The company does not provide for depreciation on its freehold property and improvements to the property as the amounts considered to be immaterial and will not have any influence on the financial statements. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Avon Lodge UK Limited (Registered number: 05209947) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. |
Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
Investment properties |
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
Avon Lodge UK Limited (Registered number: 05209947) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
2. | ACCOUNTING POLICIES - continued |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model. |
Employee benefits |
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
Leases |
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 September 2022 |
and 31 August 2023 |
AMORTISATION |
At 1 September 2022 |
Amortisation for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
Avon Lodge UK Limited (Registered number: 05209947) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
5. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
Freehold | to | and |
property | properties | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 September 2022 |
Additions |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 September 2022 |
Additions |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
Cost or valuation at 31 August 2023 is represented by: |
Improvements | Fixtures |
Freehold | to | and |
property | properties | fittings |
£ | £ | £ |
Valuation in 2022 | 2,155,879 | - | - |
Cost | 2,844,121 | 24,300 | 354,676 |
5,000,000 | 24,300 | 354,676 |
Avon Lodge UK Limited (Registered number: 05209947) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
5. | TANGIBLE FIXED ASSETS - continued |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2022 | - | - | 2,155,879 |
Cost | 52,459 | 1,233 | 3,276,789 |
52,459 | 1,233 | 5,432,668 |
6. | INVESTMENT PROPERTIES |
Total |
£ |
FAIR VALUE |
At 1 September 2022 |
and 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
The Investment property was valued by the director who is a professionally qualified valuer and has recent experience in the location and class of investment property being revalued. |
Fair value at 31 August 2023 is represented by: |
£ |
Valuation in 2017 | 138,894 |
Valuation in 2021 | 81,399 |
Valuation in 2022 | 81,000 |
Cost | 1,158,947 |
1,460,240 |
7. | STOCKS |
31.8.23 | 31.8.22 |
£ | £ |
Food and Consumables |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Trade debtors |
Other debtors |
Directors' loan accounts | - | 85,000 |
Avon Lodge UK Limited (Registered number: 05209947) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Bank loans and overdrafts (see note 11) |
Hire purchase contracts |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
10. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Bank loans (see note 11) |
Hire purchase contracts |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Bank Loan 51301466 |
Repayable by instalments |
Bank Loan 45054312 | 188,751 | 307,736 |
Bank Loan 47112336 | 143,031 | 177,610 |
Bank Loan 51264404 | 102,088 | 123,104 |
433,870 | 608,450 |
11. | LOANS |
An analysis of the maturity of loans is given below: |
31.8.23 | 31.8.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Long Term Loan | 343,540 | 389,379 |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Bank Loan 51301466 | 287,977 | 305,438 |
Avon Lodge UK Limited (Registered number: 05209947) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
11. | LOANS - continued |
31.8.23 | 31.8.22 |
£ | £ |
Repayable by instalments |
Bank Loan 45054312 | 188,751 | 307,736 |
Bank Loan 47112336 | 143,031 | 177,610 |
Bank Loan 51264404 | 102,088 | 123,104 |
433,870 | 608,450 |
12. | SECURED DEBTS |
The loans have been secured by National Westminster Bank Plc by registering legal charges over all of the property and undertakings of the company and also by registering a fixed and floating charges including negative pledges over the following properties; |
33 Bridgend Road London EN1 4PD |
403 Bowes Road London N11 1AB |
129 Latymer Road London N9 9PN |
13. | PROVISIONS FOR LIABILITIES |
31.8.23 | 31.8.22 |
£ | £ |
Deferred tax | 625,712 | 627,574 |
Deferred |
tax |
£ |
Balance at 1 September 2022 |
Provided during year | ( |
) |
Balance at 31 August 2023 |
14. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 31.8.23 | 31.8.22 |
value: | £ | £ |
Share capital 1 | £1 | 1,000 | 1,000 |
15. | RESERVES |
Includes within the retained earnings of £6,683,025 is £2,457,172 considered non-distributable due to the unrealised gains on the upliftment of the investment property. |
16. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
Avon Lodge UK Limited (Registered number: 05209947) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
17. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 August 2023 and 31 August 2022: |
31.8.23 | 31.8.22 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | (78,270 | ) |
Amounts waived | - | - |
Balance outstanding at end of year |
18. | RELATED PARTY DISCLOSURES |
Included within other debtors is £884,320 (2022: £884,320) being amounts owed by Avon Lake Holdings Limited a company controlled by the director Mr M Gunputh. |
Also included within other debtors is £466,429 (2022: £466,429) and £71,218 (2022: £71,218) being owed by A R Properties Ltd and A R Waterfalls Properties Ltd, respectively. Both the companies re under the control of the director Mr M Gunputh. |
Included within other debtors is £13,500 (2022: £13,500) being amounts owed by Camden Lodge Residential Care Home, an entity controlled by the director Mr M Gunputh. |
Included within other creditors is £85,179 (2022: £113,005) being amounts owed to St. Michaels Manor Ltd, a company controlled by the director Mr M Gunputh. |
Company secretarial charges amounting to £4,500 (2022: £34,795) was paid to a connected person of the director Mr M Gunputh. |
Rent amounting to £23,000 (2022: £23,000) is being paid on office premises owned directly by the director to Mr M Gunputh. |
During the period, the company made a short-term loan to a director amounting to £nil (2022: £85,000). |