Company Registration No. 13552822 (England and Wales)
MORNINGTON CARE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
MORNINGTON CARE LTD
COMPANY INFORMATION
Directors
Mr Nilesh Jamnadas Lukka
Miss Diane Jureidin
Mr Birju Lukka
Secretary
Mr Birju Lukka
Company number
13552822
Registered office
Macneil House
9-17 Lodge Lane
London
N12 8JH
Auditor
HW Fisher LLP
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Bankers
Royal Bank of Scotland
5-10 Great Tower Street
London
EC3P 3HX
MORNINGTON CARE LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
MORNINGTON CARE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 November 2023.
Fair review of the business
The principal activity of the company continues to be the provision of nursing home facilities for the elderly.
The company made a pre-tax profit of £259,955 (2022: £90,246) for the year on a turnover of £2,983,791 (2022: £1,844,169).
At 30 November 2023 the company had net assets of £260,484 (2022: £89,595).
Principal risks and uncertainties
The directors recognise that within the business there are a number of risks which may affect the performance of the company. These risks are subject to regular review and, where appropriate, processes are established to minimise the level of exposure.
Regulatory - the company's nursing home is regulated by the Care Quality Commission and is exposed to adverse findings that the Commission may raise. The company ensures that the nursing home is run to a high standard and to-date no such adverse findings have been reported.
Financial risk - the company is exposed to financial risk through its assets and liabilities. The key financial risk is that, in the current climate, the proceeds from its assets may not be sufficient to fund the obligations from liabilities as they fall due. The most important components of financial risk are:
1) Credit risk - the company continues to minimise commercial credit risk and has not suffered unduly from bad debts.
2) Interest rate risk - the company's borrowings are on a variable rate basis and the company is exposed to potential increases in interest rates. The company continues to monitor its interest obligations and its investment portfolio to ensure that future increases in interest rates will not unduly affect the performance of the business.
Key performance indicators
In the opinion of the directors, occupancy percentage and average fee per resident are considered key performance indicators when assessing business performance and is reviewed monthly by the management team, with both having remained in line with the directors' expectations, in the current climate.
EBITDA is also considered a key performance indicator and is reviewed on a monthly basis, by the management team.
Mr Nilesh Jamnadas Lukka
Director
29 August 2024
MORNINGTON CARE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 November 2023.
Principal activities
The principal activity of the company continued to be that of provision of nursing home facilities for the elderly.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Nilesh Jamnadas Lukka
Miss Diane Jureidin
Mr Birju Lukka
Auditor
HW Fisher LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of 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.
On behalf of the board
Mr Nilesh Jamnadas Lukka
Director
29 August 2024
MORNINGTON CARE LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
The directors are responsible 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 then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The 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.
MORNINGTON CARE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MORNINGTON CARE LTD
- 4 -
Opinion
We have audited the financial statements of Mornington Care Ltd (the 'company') for the year ended 30 November 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 November 2023 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.
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 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 are 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MORNINGTON CARE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MORNINGTON CARE LTD
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report 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 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 directors' responsibilities statement, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of our planning process:
We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and CQC compliance.
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to property valuations.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
Testing key revenue lines, in particular cut-off, for evidence of management bias.
Verifying the existence of key assets.
Obtaining third-party confirmation of material bank and loan balances.
Documenting and verifying all significant related party balances and transactions.
MORNINGTON CARE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MORNINGTON CARE LTD
- 6 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's 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.
Gilles Siow (Senior Statutory Auditor)
For and on behalf of HW Fisher LLP
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
29 August 2024
MORNINGTON CARE LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
2,983,791
1,844,169
Cost of sales
(2,014,988)
(1,288,852)
Gross profit
968,803
555,317
Administrative expenses
(334,211)
(291,943)
Other operating income
44,551
Operating profit
4
634,592
307,925
Interest payable and similar expenses
6
(374,637)
(175,351)
Profit before taxation
259,955
132,574
Tax on profit
7
(89,066)
(42,328)
Profit for the financial year
170,889
90,246
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MORNINGTON CARE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
170,889
90,246
Other comprehensive income
-
-
Total comprehensive income for the year
170,889
90,246
MORNINGTON CARE LTD
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
9,264,791
9,377,959
Current assets
Debtors
9
479,663
355,811
Cash at bank and in hand
412,612
135,956
892,275
491,767
Creditors: amounts falling due within one year
10
(4,479,106)
(4,173,427)
Net current liabilities
(3,586,831)
(3,681,660)
Total assets less current liabilities
5,677,960
5,696,299
Creditors: amounts falling due after more than one year
11
(5,417,476)
(5,606,704)
Net assets
260,484
89,595
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
260,384
89,495
Total equity
260,484
89,595
The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
Mr Nilesh Jamnadas Lukka
Director
Company Registration No. 13552822
MORNINGTON CARE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
90,246
90,246
Balance at 30 November 2022
100
89,495
89,595
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
170,889
170,889
Balance at 30 November 2023
100
260,384
260,484
MORNINGTON CARE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
15
978,350
4,118,041
Interest paid
(374,637)
(175,351)
Income taxes paid
(42,328)
Net cash inflow from operating activities
561,385
3,942,690
Investing activities
Purchase of tangible fixed assets
(62,040)
(9,537,321)
Receipts arising from loans made
100
(100)
Net cash used in investing activities
(61,940)
(9,537,421)
Financing activities
Repayment of bank loans
(222,789)
5,704,708
Net cash (used in)/generated from financing activities
(222,789)
5,704,708
Net increase in cash and cash equivalents
276,656
109,977
Cash and cash equivalents at beginning of year
135,956
25,979
Cash and cash equivalents at end of year
412,612
135,956
MORNINGTON CARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
1
Accounting policies
Company information
Mornington Care Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Macneil House, 9-17 Lodge Lane, London, N12 8JH.
1.1
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, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The truedirectors have considered the effect of the on-going Covid-19 pandemic. As the company operates in the care sector, the pandemic caused some disruption to the company’s business. However with tighter operational controls, accompanied by various government grants and financial assistance, the directors have been able to mitigate the Covid-19 impact on the business such that it has continued to trade and generate positive cash flows throughout the pandemic.
Accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.
Revenue for the provision of nursing home services is recognised by reference to the occupation and use of the facilities of the nursing home.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line (excluding land)
Plant and equipment
15% 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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
MORNINGTON CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
MORNINGTON CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Government grants
Government grants are recognised at the fair value of the grant 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 ore receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and 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.
MORNINGTON CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation of land and buildings
The company carries its property used in the business at fair value, with changes in fair value being recognised through other comprehensive income. The company has consulted with external valuers to ascertain the fair value of the land and buildings. The valuation of the company’s land and buildings is inherently subjective due to, among other factors, the individual nature, location and condition of the nursing home premises. The land element of the land and buildings is also a subjective judgement. As a result the valuation is subject to a degree of uncertainty.
The most recent external valuation took place in August 2021. Since then the Directors have assessed the market value of the property each year and deem the net book value to be materially in line with the market value at the year-end date.
Deferred tax is recognised on revalued property, based on the estimated fair value at the year-end date.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Nursing home fees
2,983,791
1,844,169
2023
2022
£
£
Other significant revenue
Grants received
-
44,551
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
2,983,791
1,844,169
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(44,551)
Fees payable to the company's auditor for the audit of the company's financial statements
10,715
Depreciation of owned tangible fixed assets
175,208
159,362
MORNINGTON CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
5
Employees
The average monthly number of persons employed by the company during the year was:
2023
2022
Number
Number
68
62
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,564,241
998,208
Social security costs
130,743
81,090
Pension costs
25,482
17,099
1,720,466
1,096,397
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
374,637
175,351
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
89,066
42,328
MORNINGTON CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
7
Taxation
(Continued)
- 17 -
The actual 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
259,955
132,574
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
59,816
25,189
Tax effect of expenses that are not deductible in determining taxable profit
191
549
Other non-reversing timing differences
(482)
Depreciation add back
40,315
30,137
Capital allowances
(10,774)
(13,547)
Taxation charge for the year
89,066
42,328
8
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 December 2022
9,472,024
65,297
9,537,321
Additions
25,455
36,585
62,040
At 30 November 2023
9,497,479
101,882
9,599,361
Depreciation and impairment
At 1 December 2022
151,200
8,162
159,362
Depreciation charged in the year
161,150
14,058
175,208
At 30 November 2023
312,350
22,220
334,570
Carrying amount
At 30 November 2023
9,185,129
79,662
9,264,791
At 30 November 2022
9,320,824
57,135
9,377,959
MORNINGTON CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
146,383
86,058
Amounts owed by companies under common control
310,000
200,000
Other debtors
3,439
600
Prepayments and accrued income
19,841
69,153
479,663
355,811
10
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
12
64,443
98,004
Trade creditors
316,065
108,183
Amounts owed to companies under common control
3,849,900
3,800,262
Corporation tax
89,066
42,328
Other taxation and social security
31,234
27,309
Other creditors
19,465
23,299
Accruals and deferred income
108,933
74,042
4,479,106
4,173,427
11
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
12
5,417,476
5,606,704
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
5,332,084
12
Loans and overdrafts
2023
2022
£
£
Bank loans
5,481,919
5,704,708
Payable within one year
64,443
98,004
Payable after one year
5,417,476
5,606,704
The bank loan is secured by a legal charge over the freehold property and a debenture over the assets of the company, as well as by a cross-guarantee given by other companies under common control.
MORNINGTON CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
12
Loans and overdrafts
(Continued)
- 19 -
The loan is for a term of 15 years, repayable in monthly instalments of capital and interest at 2.25% per annum over Base Rate.
At 30 November 2023, the net bank loans subject to the cross guarantee amounted to £19,621,785 (2022: £19,546,814)
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
25,482
17,099
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.
14
Related party transactions
At 30 November 2023, the company was owed £310,000 (2022: £200,000) by companies under common control. The company charged no interest on this balance.
At 30 November 2023, the company owed £3,849,900 (2022: £3,800,262) to companies under common control. The company was charged no interest on this balance in the current or prior year.
All of the above companies are related parties by virtue of the significant interest in the share capital of each by Mr N J Lukka and members of his close family, and the balances arose from loans made to/ received from the above companies.
15
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
170,889
90,246
Adjustments for:
Taxation charged
89,066
42,328
Finance costs
374,637
175,351
Depreciation and impairment of tangible fixed assets
175,208
159,362
Movements in working capital:
(Increase)/decrease in debtors
(123,952)
573,580
Increase in creditors
292,502
3,077,174
Cash generated from operations
978,350
4,118,041
MORNINGTON CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
16
Analysis of changes in net debt
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
135,956
276,656
412,612
Borrowings excluding overdrafts
(5,704,708)
222,789
(5,481,919)
(5,568,752)
499,445
(5,069,307)
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