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COMPANY REGISTRATION NUMBER: 06679336
Action For Care Limited
Financial Statements
31 August 2023
Action For Care Limited
Financial Statements
Year Ended 31 August 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
10
Statement of financial position
11
Notes to the financial statements
12
Action For Care Limited
Officers and Professional Advisers
The board of directors
Mr R Hadfield
Mrs K Jackson (Resigned 19 December 2023)
Mrs J Kennedy
Registered office
91-97 Saltergate
Chesterfield
Derbyshire
S40 1LA
Auditor
MCABA Limited t/a Mitchells
Chartered Accountants & Statutory Auditor
91-97 Saltergate
Chesterfield
Derbyshire
S40 1LA
Bankers
Triodos Bank
Deanery Road
Bristol
BS1 5AS
Royal Bank of Scotland
5 Church Street
Sheffield
S1 1HF
Action For Care Limited
Strategic Report
Year Ended 31 August 2023
The directors present their strategic report on the company for the year ended 31 August 2023.
Review of the business The principal activity of the company during the year was the operation of homes catering for residents with learning disabilities.
Results and performance The results of the company for the year show an increase in turnover of 11.9% and a profit on ordinary activities before taxation of £450,992 (2022: £593,585). The directors, and the industry as a whole, however, place more reliance on Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), which is £1,150,745 (2022: £1,101,448). The company continues to see high demand for the services being provided and has sought to consolidate its position within the market during the period. The directors have great faith in seeing growth in both revenue and profit in the coming years as the care environment continues to evolve following the COVID-19 pandemic and other social-economic changes.
Key performance indicators The directors monitor the progress of the company by reference to key performance indicators. The key performance indicators for the company are those that communicate the financial performance and strength of the company as a whole, being turnover, gross profit margin and wages as a percentage of fees. Factors such as the rise in minimum wage, pension auto enrolment contributions, the nationwide shortage of healthcare staff and pressures facing local authorities in resident's fees all impact the performance of the company and are constantly monitored by the directors and senior management. The gross profit margin for the company is 26.9% (2022: 28.1%), with a gross profit of £2,709,510 (2022: £2,521,457). Wages as a proportion of fees is 69.8% (2022: 69.1%); this is slightly above the industry benchmarks and is an indication of the supply and demand issues within the care sector. The company prides itself on the standard of care it offers and strives to ensure standards are met. The company is in regular contact with both local authorities and the CQC in an effort to maintain standards in an ever more challenging environment.
Principal risks and uncertainties The directors and senior management team meet regularly to consider the risks that face the company and how established processes and controls are used to manage these risks. Key risks and uncertainties are outlined below: Cost of living crisis The impact of significant inflation had an effect on the company throughout the year. The directors and management team made efforts to minimise costs without reducing service levels whilst also seeking increases in funding from local authorities. The combined effect of these have ensured the company is able to continue as a going concern. Market risk The market is currently under pressure regarding costs and quality standards. The company regularly monitors quality standards in all of its homes and produces detailed interim financial information which enables them to react quickly to any issues. Legislative and regulatory risk All of the company's services are monitored by the Care Quality Commission (CQC) and local authorities. The company has internal systems in place to monitor the standards in each of its homes and has excellent, open relationships with the CQC and local authorities. At the present time eight out of the nine homes within the company have a grading of at least "good" with the CQC; it is the company's ambition to maintain this level of service and improve the rating of the remaining home. Labour and recruitment There is no specific impact of Brexit from a customer perspective. However, as there is already a shortage of labour in the care industry any barriers to employing EU care staff are likely to make competition for employment more intense. The company remains proactive in its ability to recruit and retain high quality staff. Minimum wage increases and auto-enrolment contributions continue to impact the company moving forward. Financial risks The company has outstanding bank loans. The company has an excellent, open relationship with the bank and provides quarterly and annual financial information to them.
This report was approved by the board of directors on 29 August 2024 and signed on behalf of the board by:
Mr R Hadfield
Director
Action For Care Limited
Directors' Report
Year Ended 31 August 2023
The directors present their report and the financial statements of the company for the year ended 31 August 2023 .
Directors
The directors who served the company during the year were as follows:
Mr R Hadfield
Mrs K Jackson
Mrs J Kennedy
Mrs K Jackson resigned as a director after the year end, on 19 December 2023.
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Future developments
The company continues to look at improving the operations of its existing homes and seek out opportunities for growth where they are available and fit with the current services.
Financial instruments
Financial risk management objectives and policies
The directors have reviewed the financial risks facing the company and have devised systems and controls to mitigate these risks.
Interest rate risk
The company is exposed to volatility in interest rate movements on its debt. With interest rates remaining high at present, the company continues to review the bank debt on an ongoing basis and revises its performance targets when changes occur.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 judgments 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 29 August 2024 and signed on behalf of the board by:
Mr R Hadfield
Director
Action For Care Limited
Independent Auditor's Report to the Members of Action For Care Limited
Year Ended 31 August 2023
Opinion
We have audited the financial statements of Action For Care Limited (the 'company') for the year ended 31 August 2023 which comprise the statement of income and retained earnings, statement of financial position and the related notes, 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 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 31 August 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
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 directors are responsible for the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the 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.
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 directors' 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: - 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 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 my 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 in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at https: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Auditor's responsibilities for detecting irregularities, including fraud The objectives of our audit are: to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: - We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant; the Companies Act 2006, UK corporate taxation laws, employment law, health and safety laws, the Health and Social Care Act 2012 and the Care Quality Commission (Registration) Regulations 2009. - We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to relevant members of the management team. We corroborated our inquiries though our review and inquiry into legal fees incurred in the year. - We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: - Identifying the controls management has in place to prevent and detect fraud and assessing the operation of these controls - Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process - Identifying and testing journal entries, in particular any journal entries that were large or unusual in nature - Assessing the extent of compliance with the relevant laws and regulations governing the company and the sector it operates within. This included a review of any potential breaches during and since the year end; and - Challenging assumptions and judgements made by management in its significant accounting estimates. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentations or collusion.
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.
David Waining FCA
(Senior Statutory Auditor)
For and on behalf of
MCABA Limited t/a Mitchells
Chartered Accountants & Statutory Auditor
91-97 Saltergate
Chesterfield
Derbyshire
S40 1LA
29 August 2024
Action For Care Limited
Statement of Income and Retained Earnings
Year Ended 31 August 2023
2023
2022
Note
£
£
Turnover
4
10,057,679
8,986,861
Cost of sales
7,348,169
6,465,404
-------------
------------
Gross Profit
2,709,510
2,521,457
Administrative expenses
1,701,892
1,795,782
Other operating income
5
291
178,181
------------
------------
Operating Profit
6
1,007,909
903,856
Other interest receivable and similar income
10
291
Interest payable and similar expenses
11
556,917
310,562
------------
------------
Profit Before Taxation
450,992
593,585
Tax on profit
12
161,838
87,529
---------
---------
Profit for the Financial Year and Total Comprehensive Income
289,154
506,056
---------
---------
Dividends paid and payable
13
( 51,000)
Retained Earnings at the Start of the Year
3,328,479
2,822,423
------------
------------
Retained Earnings at the End of the Year
3,566,633
3,328,479
------------
------------
All the activities of the company are from continuing operations.
Action For Care Limited
Statement of Financial Position
31 August 2023
2023
2022
Note
£
£
£
Fixed Assets
Intangible assets
14
17,533
20,627
Tangible assets
15
11,881,185
11,953,925
Investments
16
680,451
680,451
-------------
-------------
12,579,169
12,655,003
Current Assets
Stocks
17
3,000
3,000
Debtors
18
2,540,622
1,281,722
Cash at bank and in hand
743,532
729,239
------------
------------
3,287,154
2,013,961
Creditors: amounts falling due within one year
19
2,297,352
1,671,939
------------
------------
Net Current Assets
989,802
342,022
-------------
-------------
Total Assets Less Current Liabilities
13,568,971
12,997,025
Creditors: amounts falling due after more than one year
20
9,781,737
9,504,445
Provisions
Taxation including deferred tax
21
220,500
164,000
-------------
-------------
Net Assets
3,566,734
3,328,580
-------------
-------------
Capital and Reserves
Called up share capital
24
101
101
Profit and loss account
25
3,566,633
3,328,479
------------
------------
Shareholders Funds
3,566,734
3,328,580
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 29 August 2024 , and are signed on behalf of the board by:
Mr R Hadfield
Director
Company registration number: 06679336
Action For Care Limited
Notes to the Financial Statements
Year Ended 31 August 2023
(continued)
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 91-97 Saltergate, Chesterfield, Derbyshire, S40 1LA. The company's place of business is Unit 4, Courtyard, 8 Market Place, Belper, DE56 1FZ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historic cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Hadfield Group Limited which can be obtained from the Registrar of Companies (England and Wales). As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The entity has taken advantage of the exemption from preparing consolidated financial statements contained in Section 400 of the Companies Act 2006 on the basis that it is a subsidiary undertaking and its immediate parent undertaking is established under UK law.
Judgements and key sources of estimation uncertainty
In the process of applying the company's accounting policies, the directors are required to make certain estimates, judgements and assumptions that they believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The estimate and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Useful life and residual values Intangible assets The charge in respect of amortisation is derived after determining an estimate of the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as expected use of the acquired business, the expected useful life of the cash generating unit to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit the useful life and assumptions that market participants would consider in respect of similar businesses. Tangible assets The charge in respect of depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of the company's assets may vary depending on several factors such as, technological innovation, maintenance programmes and future market conditions. They are determined by management at the time the asset is acquired and reviewed annually for appropriateness. Depreciation of freehold property There is no charge in respect of depreciation on freehold buildings for the period. In determining the residual value of freehold buildings, the directors have considered the amount they would currently obtain from disposal of the asset if the asset were already of the age and condition expected at the end of its useful life, having regard to the factors mentioned above. As a result, the directors estimate any depreciation charge to be immaterial and as such the depreciation charge is nil for the period. Recoverability of trade debtors The directors make provisions for doubtful debts based on an assessment of the recoverability of trade debtors. Provisions are applied to trade debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. This methodology is applied on a resident by resident basis. Leases Determining whether leases entered into by the company as a lessee are operating or finance leases requires judgement. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee based on the evaluation of the terms and conditions of the arrangements on a lease by lease basis .
Government grants
Government and local authority grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accruals model.
Financing costs
Bank fees incurred regarding the arrangement of long term loans are amortised over the term of the loans.
Revenue recognition
The turnover shown in the profit and loss account represents residents' fees earned during the year.
Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed five years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
5 years straight line
Other intangibles
-
15% reducing balance
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
All fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
-
15% reducing balance
Motor vehicles
-
33% reducing balance
Depreciation has not been provided for on freehold property. More information is given on this in the judgements and key sources of estimation uncertainty accounting policy shown above.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell.
Financial instruments
Debtors and creditors with no stated interest rate and receivable 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.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
10,057,679
8,986,861
-------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023 2022
£ £
Coronavirus grant income 291 178,181
---- ---------
6. Operating profit
Operating profit or loss is stated after charging:
2023
2022
£
£
Amortisation of intangible assets
3,094
3,640
Depreciation of tangible assets
131,245
154,828
Loss on disposal of tangible assets
8,497
8,037
Loss on disposal of intangible assets
31,087
Impairment of trade debtors
55,376
---------
---------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
16,150
12,800
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Nursing and administration staff (including directors)
246
232
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
6,708,073
5,900,050
Social security costs
465,817
452,084
Other pension costs
126,649
152,992
------------
------------
7,300,539
6,505,126
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
246,946
240,477
Company contributions to defined contribution pension plans
27,287
57,812
---------
---------
274,233
298,289
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
2
2
----
----
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
142,472
133,207
Company contributions to defined contribution pension plans
25,966
56,491
---------
---------
168,438
189,698
---------
---------
10. Other interest receivable and similar income
2023
2022
£
£
Other interest receivable and similar income
291
----
----
11. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
555,056
310,562
Interest due to group undertakings
1,861
---------
---------
556,917
310,562
---------
---------
12. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
105,223
102,352
Adjustments in respect of prior periods
115
( 17,823)
---------
---------
Total current tax
105,338
84,529
---------
---------
Deferred tax:
Origination and reversal of timing differences
56,500
3,000
---------
--------
Tax on profit
161,838
87,529
---------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 21.50 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
450,992
593,585
---------
---------
Profit on ordinary activities by rate of tax
97,052
112,781
Adjustment to tax charge in respect of prior periods
115
( 17,823)
Effect of expenses not deductible for tax purposes
8,911
4,360
Effect of capital allowances and depreciation
1,027
4,549
Utilisation of tax losses
( 1,767)
( 19,338)
Movement of deferred tax provision
56,500
3,000
---------
---------
Tax on profit
161,838
87,529
---------
---------
13. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
51,000
--------
----
14. Intangible assets
Goodwill
Other intangible assets
Total
£
£
£
Cost
At 1 September 2022 and 31 August 2023
3,299,997
29,135
3,329,132
------------
--------
------------
Amortisation
At 1 September 2022
3,299,997
8,508
3,308,505
Charge for the year
3,094
3,094
------------
--------
------------
At 31 August 2023
3,299,997
11,602
3,311,599
------------
--------
------------
Carrying amount
At 31 August 2023
17,533
17,533
------------
--------
------------
At 31 August 2022
20,627
20,627
------------
--------
------------
15. Tangible assets
Freehold property
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2022
11,348,393
1,019,819
545,275
12,913,487
Additions
8,074
58,928
67,002
Disposals
( 14,176)
( 14,176)
-------------
------------
---------
-------------
At 31 August 2023
11,356,467
1,064,571
545,275
12,966,313
-------------
------------
---------
-------------
Depreciation
At 1 September 2022
591,412
368,150
959,562
Charge for the year
72,793
58,452
131,245
Disposals
( 5,679)
( 5,679)
-------------
------------
---------
-------------
At 31 August 2023
658,526
426,602
1,085,128
-------------
------------
---------
-------------
Carrying amount
At 31 August 2023
11,356,467
406,045
118,673
11,881,185
-------------
------------
---------
-------------
At 31 August 2022
11,348,393
428,407
177,125
11,953,925
-------------
------------
---------
-------------
16. Investments
Shares in group undertakings
£
Cost
At 1 September 2022 and 31 August 2023
680,451
---------
Impairment
At 1 September 2022 and 31 August 2023
---------
Carrying amount
At 31 August 2023
680,451
---------
At 31 August 2022
680,451
---------
Subsidiaries, associates and other investments
Registered office
Class of share
Percentage of shares held
Subsidiary undertakings
Four Care Plus Limited
91-97 Saltergate, Chesterfield, S40 1LA
Ordinary
100
17. Stocks
2023
2022
£
£
Finished goods
3,000
3,000
-------
-------
18. Debtors
2023
2022
£
£
Trade debtors
451,645
361,868
Amounts owed by group undertakings
724,728
240,301
Prepayments and accrued income
269,154
239,978
Other debtors
1,095,095
439,575
------------
------------
2,540,622
1,281,722
------------
------------
19. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
327,601
297,352
Trade creditors
401,610
287,929
Amounts owed to group undertakings
304,682
Accruals and deferred income
378,319
319,921
Corporation tax
209,436
49,792
Social security and other taxes
123,291
112,856
Director loan accounts
300,000
300,000
Other creditors
252,413
304,089
------------
------------
2,297,352
1,671,939
------------
------------
Total liabilities disclosed under creditors falling due within one year secured by the company are £317,538 (2022: £287,537).
20. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
9,037,096
9,364,660
Director loan accounts
744,641
139,785
------------
------------
9,781,737
9,504,445
------------
------------
Triodos Bank holds a fixed and floating charge over the undertaking and all the property and assets of the company.
Total liabilities disclosed under creditors falling due in more than one year secured by the company are £9,020,517 (2022: £9,337,397).
Included within creditors amounts falling due after more than one year is an amount of £7,096,234 (2022: £7,938,288) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The bank loan is repayable over 20 years at an interest rate of 2.15%.
21. Provisions
Deferred tax (note 22)
£
At 1 September 2022
164,000
Additions
56,500
---------
At 31 August 2023
220,500
---------
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 21)
220,500
164,000
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
220,500
164,000
---------
---------
23. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 126,649 (2022: £ 152,992 ).
24. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
101
101
101
101
----
----
----
----
25. Reserves
Called up share capital - this represents the nominal value of the shares that have been issued. Profit and loss account - this reserve records retained earnings and accumulated losses.
26. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
8,384
9,909
Later than 1 year and not later than 5 years
3,646
11,509
--------
--------
12,030
21,418
--------
--------
27. Directors' advances, credits and guarantees
There were no advances, credits or guarantees requiring disclosure during the current or preceeding year. There is a loan amounting to £1,044,641 (2022: £439,785) due to R Hadfield from the company.
28. Related party transactions
During the year the company provided and received loans from related parties. The balances outstanding due to related parties at the year end were as follows:
20232022
££
Amounts owed by group companies724,728240,301
Amounts owed by related parties1,076,228290,878
Amounts owed to group companies(304,682)
All loans are unsecured, interest free and repayable on demand.
29. Controlling party
The directors consider the ultimate parent undertaking to be Hadfield Group Limited, a company registered in England and Wales. Consolidated financial statements can be obtained from the company's registered address; 91-97 Saltergate, Chesterfield, Derbyshire, S40 1LA.