Company registration number 06039940 (England and Wales)
SPECIAL NEEDS CARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
SPECIAL NEEDS CARE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
SPECIAL NEEDS CARE LIMITED
COMPANY INFORMATION
Director
Mr B Borbely
Company number
06039940
Registered office
1 Abbey Square
Chester
Cheshire
CH1 2HU
Auditor
Sedulo Audit Limited
605 Albert House
256-260 Old Street
London
United Kingdom
EC1V 9DD
SPECIAL NEEDS CARE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

The director presents the strategic report for the year ended 31 August 2023.

Principal activities

The principal activity of the company continued to be that of the provision of special needs care.

Review of the business

The company is managed as part of an overall group of companies whose ultimate parent company is Assum Limited. The Directors report revenue for the period ended 31 August 2023 of £6,813,826 (2022: £8,192,820) and a profit before tax of £378,529 (2022: £111,918 profit).

Principal risks and uncertainties

Revenues from publicly funded bodies

The majority of the company’s revenues derive from publicly funded bodies such as Local Authorities, Clinical Commissioning Groups (CCGs) and other NHS bodies. Changes in education, health and social care budgets potentially affect the ability of the group's purchasers to fund placements in its services.

 

Credit risk

Credit risk is not considered to be significant given that the majority of revenue is derived from publicly funded bodies.

 

Liquidity risk

The group prepares an annual cash flow forecast which is tracked throughout the year.

 

Directors' statement of compliance with duty to promote the success of the company.

 

The directors have acted in the way they consider, in good faith, promotes the success of the company and the group for the benefit of its members as a whole, and in doing so have given regard to a range of matters when making decisions for the long term.

Key performance indicators

Assum Limited, the company's ultimate parent company, manages its operations on a divisional basis. For this reason, the company's directors believe key performance indicators for the company are not necessary for an understanding of the development, performance or position of the business. The performance of the company is discussed in the ultimate parent company's financial statements, which do not form part of this report.

SPECIAL NEEDS CARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -

Stakeholder Engagement

 

Employees

Our employees contribute to a positive working culture and safe working environment. Employees are key to the success of our business. In addition to aiming to be a responsible employer in our approach to pay and benefits, we continue to engage with our team to ascertain which training and development opportunities should be made available to improve our team's productivity and our individual employees' potential within the business.

 

We continually invest in employee development and wellbeing to create and encourage an inclusive culture within the organisation. Our employee appraisal programme encourages employee feedback and facilities the

opportunity for both employees and managers to set performance goals on an annual basis.

 

Our culture invites different perspectives, new ideas and opportunities for growth. We work hard to ensure employees feel welcome and are valued and recognized for their hard work. All employees receive regular updates on the performance of the company ranging from regular published updates.

 

Customers

Customers are at the centre of our business. Our business development team allied with our customer service teams build lasting relationships with current and potential customers to understand their objectives and requirements. We are in regular contact with customers in order to meet their defined service and reporting requirements. This includes attending monthly and quarterly update calls, face to face meetings (quarterly/bi-annually/annually) depending on customer preferences.

 

On behalf of the board

Mr B Borbely
Director
30 August 2024
SPECIAL NEEDS CARE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 August 2023.

Principal activities

The principal activity of the company continued to be that of the provision of special needs care.

Results and dividends

The results for the year are set out on page 8.

 

During the year, Computer Software totaling £495,713 was fully impaired.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Mr B Borbely
Auditor

The auditor, Sedulo Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 he 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:

 

 

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. He 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 companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

SPECIAL NEEDS CARE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -
On behalf of the board
Mr B Borbely
Director
30 August 2024
SPECIAL NEEDS CARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SPECIAL NEEDS CARE LIMITED
- 5 -
Opinion

We have audited the financial statements of Special Needs Care Limited (the 'company') for the year ended 31 August 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

Basis for opinion

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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The 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:

SPECIAL NEEDS CARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SPECIAL NEEDS CARE LIMITED (CONTINUED)
- 6 -
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:

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was capable of detecting irregularities, including fraud

The primary responsibility for the prevention and detection of fraud rests with directors and management, and we cannot be expected to detect non-compliance with all laws and regulations.

 

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.

 

We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls.

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.

SPECIAL NEEDS CARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SPECIAL NEEDS CARE LIMITED (CONTINUED)
- 7 -

Other matter

In the previous accounting period the director of the company took advantage of audit exemption under S.477 of the Companies Act 2006. Therefore, the prior period financial statements were not subject to audit.

Use of our 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.

Diccon Thornely
Senior Statutory Auditor
For and on behalf of Sedulo Audit Limited
30 August 2024
Chartered Accountants
Statutory Auditor
605 Albert House
256-260 Old Street
London
United Kingdom
EC1V 9DD
SPECIAL NEEDS CARE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
Year
Period
ended
ended
31 August
31 August
2023
2022
as restated
Notes
£
£
Turnover
3
6,813,827
8,192,820
Cost of sales
(5,787,375)
(6,500,784)
Gross profit
1,026,452
1,692,036
Administrative expenses
(1,790,398)
(1,576,845)
Other operating income
-
0
7,471
Operating (loss)/profit
8
(763,946)
122,662
Interest receivable and similar income
6
1,200,533
718
Interest payable and similar expenses
7
(479)
(11,462)
Profit before taxation
436,108
111,918
Tax on profit
9
76,094
-
0
Profit for the financial year
512,202
111,918

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SPECIAL NEEDS CARE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 9 -
Year
Period
ended
ended
2023
2022
as restated
£
£
Profit for the year
512,202
111,918
Other comprehensive income
-
-
Total comprehensive income for the year
512,202
111,918

The notes on pages 12 to 22 form part of these financial statements.

SPECIAL NEEDS CARE LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
-
0
495,714
Tangible assets
12
376,982
443,443
Investments
13
3,500,000
3,500,000
3,876,982
4,439,157
Current assets
Debtors
15
1,525,714
2,610,631
Cash at bank and in hand
2,726
95,288
1,528,440
2,705,919
Creditors: amounts falling due within one year
16
(543,526)
(2,834,921)
Net current assets/(liabilities)
984,914
(129,002)
Total assets less current liabilities
4,861,896
4,310,155
Provisions for liabilities
Deferred tax liability
18
39,539
-
0
(39,539)
-
Net assets
4,822,357
4,310,155
Capital and reserves
Called up share capital
20
4,400,106
4,400,106
Share premium account
1,494
1,494
Profit and loss reserves
420,757
(91,445)
Total equity
4,822,357
4,310,155

The notes on pages 12 to 22 form part of these financial statements.

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 30 August 2024
Mr B Borbely
Director
Company registration number 06039940 (England and Wales)
SPECIAL NEEDS CARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 August 2022:
Balance at 1 August 2021
106
1,494
(168,359)
(166,759)
Effect of change in accounting policy
-
-
0
(35,004)
(35,004)
As restated
106
1,494
(203,363)
(201,763)
Period ended 31 August 2022:
Profit and total comprehensive income
-
-
111,918
111,918
Issue of share capital
20
4,400,000
-
0
-
4,400,000
Balance at 31 August 2022
4,400,106
1,494
(91,445)
4,310,155
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
512,202
512,202
Balance at 31 August 2023
4,400,106
1,494
420,757
4,822,357
SPECIAL NEEDS CARE LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 12 -
1
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

2
Accounting policies
Company information

Special Needs Care Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Abbey Square, Chester, England, CH1 2HU.

2.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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:

 

 

The financial statements of the company are consolidated in the financial statements of Assum Limited. These consolidated financial statements are available from its registered office.

2.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation based on reviewing cash flow forecasts for at least a year from the date of signing that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2
Accounting policies
(Continued)
- 13 -
2.3
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.

2.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

2.5
Intangible fixed assets other than goodwill

These represent capitalised costs directly attributable to the development of a unique and innovative Personal Care Planning Software App.

Scuh costs will be capitalised up to the date of full commercial launch of the App and will be amortised from launch as follows:

Personal Care Plan Software Application
Straight line over 12 years
2.6
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:

Leasehold improvements
Straight line over 15 years
Fixtures and fittings
15% on reducing balance
Computers
33% on reducing balance
Motor vehicles
25% on reducing balance

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.

2.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
2
Accounting policies
(Continued)
- 14 -

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

2.8
Financial instruments
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.

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.

2.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
2
Accounting policies
(Continued)
- 15 -
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.

2.10
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.

2.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.12
Government grants

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

 

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

2.13
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.

SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 16 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Educational services
6,813,827
8,192,820
2023
2022
£
£
Other revenue
Interest income
533
718
Dividends received
1,200,000
-
Grants received
-
7,471
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was: 289

2023
2022
Number
Number
Admin staff
13
25
Care/Support workers
275
297
Directors
1
1
Total
289
323

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,685,651
6,416,164
Social security costs
487,071
533,681
Pension costs
106,735
114,197
6,279,457
7,064,042
5
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
77,500
105,405
Company pension contributions to defined contribution schemes
1,321
1,431
78,821
106,836
SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 17 -
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
533
718
Income from fixed asset investments
Income from shares in group undertakings
1,200,000
-
0
Total income
1,200,533
718
7
Interest payable and similar expenses
2023
2022
£
£
Other interest
479
11,462
8
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
-
0
943
Government grants
-
(7,471)
Depreciation of owned tangible fixed assets
67,859
68,940
Impairment of intangible assets
495,714
-
0
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(115,633)
-
0
Deferred tax
Origination and reversal of timing differences
(35,714)
-
0
Adjustment in respect of prior periods
75,253
-
0
Total deferred tax
39,539
-
0
Total tax credit
(76,094)
-
0

Tax on losses on ordinary activities for the year is at a blended rate of 21.5% as the Corporation Tax rate increased from 19% to 25% on 1 April 2023

SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
9
Taxation
(Continued)
- 18 -

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

2023
2022
£
£
Profit before taxation
436,108
111,918
Expected tax charge based on the standard rate of corporation tax in the UK of 21.50% (2022: 19.00%)
93,763
21,264
Tax effect of expenses that are not deductible in determining taxable profit
963
-
0
Tax effect of income not taxable in determining taxable profit
(258,000)
-
0
Unutilised tax losses carried forward
-
0
(21,264)
Adjustments in respect of prior years
75,253
-
0
Effect of change in corporation tax rate
(5,000)
-
0
Group relief
(65,759)
-
0
Fixed asset differences
106,526
-
0
Brought forward losses recognised
(23,840)
-
0
Taxation credit for the year
(76,094)
-

Factors that may affect future tax charges

 

During the year the Company surrendered current year losses of £231,972 (2022 : £14,589) and brought forward losses of £305,855 (2022 : £506,208) by way of group relief to other group companies on a paid basis. No deferred tax asset was previously recognised on brought forward losses.

 

The Company has recognised a deferred tax asset in respect of carried forward trade losses of £168,463. Management have confirmed that they forecast sufficient profits in the foreseeable future to be offset against these losses.

 

The figures for the current and prior years include the impact on deferred tax on the enacted UK rate change from 19% to 25% with effect from April 2023.

10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Intangible assets
11
495,714
-
0
Recognised in:
Administrative expenses
495,714
-
SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 19 -
11
Intangible fixed assets
Personal Care Plan Software Application
£
Cost
At 1 September 2022 and 31 August 2023
495,714
Amortisation and impairment
At 1 September 2022
-
0
Impairment losses
495,714
At 31 August 2023
495,714
Carrying amount
At 31 August 2023
-
0
At 31 August 2022
495,714

More information on impairment movements in the year is given in note 10.

12
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2022
257,391
526,113
34,895
17,475
835,874
Additions
-
0
-
0
1,398
-
0
1,398
At 31 August 2023
257,391
526,113
36,293
17,475
837,272
Depreciation and impairment
At 1 September 2022
94,158
273,506
14,230
10,537
392,431
Depreciation charged in the year
17,159
41,049
7,772
1,879
67,859
At 31 August 2023
111,317
314,555
22,002
12,416
460,290
Carrying amount
At 31 August 2023
146,074
211,558
14,291
5,059
376,982
At 31 August 2022
163,233
252,607
20,665
6,938
443,443
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
3,500,000
3,500,000
SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 20 -
14
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Essential Property (NW) Limited
1 Abbey Square, Chester CH1 2HU
Ordinary
100.00
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
33,022
155,901
Corporation tax recoverable
115,633
-
0
Amounts owed by group undertakings
1,017,997
2,087,858
Prepayments and accrued income
359,062
366,872
1,525,714
2,610,631
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
2,827
-
0
Trade creditors
4,665
21,098
Amounts owed to group undertakings
-
0
2,096,959
Taxation and social security
470,644
554,933
Other creditors
39,509
137,694
Accruals and deferred income
25,881
24,237
543,526
2,834,921
17
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
2,827
-
0
Payable within one year
2,827
-
0
SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 21 -
18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
69,713
-
Provisions and pensions
(2,453)
-
Other timing difference
(27,721)
-
39,539
-
2023
Movements in the year:
£
Liability at 1 September 2022
-
Charge to profit or loss
39,539
Liability at 31 August 2023
39,539
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
106,735
114,197

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
4,400,106
4,400,106
4,400,106
4,400,106
21
Ultimate controlling party

The ultimate controlling party is Mr B Borbely by virtue of his 100% shareholding in the parent company Assum Limited.

22
Prior period adjustment
SPECIAL NEEDS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
22
Prior period adjustment
(Continued)
- 22 -
Reconciliation of changes in equity
1 August
31 August
2021
2022
£
£
Adjustments to prior year
Understated PAYE
-
(35,004)
Equity as previously reported
(166,759)
4,345,159
Equity as adjusted
(166,759)
4,310,155
Analysis of the effect upon equity
Profit and loss reserves
-
(35,004)
Reconciliation of changes in profit for the previous financial period
2022
£
Total adjustments
-
Profit as previously reported
111,918
Profit as adjusted
111,918
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