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REGISTERED NUMBER: 13341371 (England and Wales)










KTN Group Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2023






KTN Group Limited (Registered number: 13341371)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Income Statement 10

Consolidated Other Comprehensive Income 11

Consolidated Balance Sheet 12

Company Balance Sheet 13

Consolidated Statement of Changes in Equity 15

Company Statement of Changes in Equity 16

Consolidated Cash Flow Statement 17

Notes to the Consolidated Cash Flow Statement 18

Notes to the Consolidated Financial Statements 20


KTN Group Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: T Nagendran
D Leonard





REGISTERED OFFICE: 61 Cambridge Park
Wanstead
London
E11 2PR





REGISTERED NUMBER: 13341371 (England and Wales)





AUDITORS: SKS Audit LLP
3 Sheen Road
Richmond Upon Thames
TW9 1AD

KTN Group Limited (Registered number: 13341371)

Group Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
There were no acquisitions during the year. The business was consolidating after the acquisition took place in previous year and results of that business and its subsidiaries have been incorporated into these accounts.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the group are reviewed in detail by the directors and no material additional risk or uncertainty has been identified other than those detailed below. These risks are broadly accompanied with competitive, operational and financial risks. The directors risk management objectives consist of identifying and monitoring those risks which could have an adverse impact on the company assets, profitability or cash flows.

The group is exposed to financial risks including credit risk and liquidity risk, arising from the group's normal business activities. These risks and the group's approach to dealing with them are discussed below.

Competitive risk

The group operates in the providing nursing care services. The markets remain competitive with price and margin fluctuation, which are dependent on relationships with residents.

Operational risk

The main operational risk relating to the company's operations of nursing care services are through relationships with the customers and compliance with CQC regulations. The overall risk is mitigated by ensuring that better quality nursing care services are provided and in compliance to regulations in place, to enable operations to grow.

Price risk

The group faces uncertainties in relation to average weekly fee increases for the provision of care services in the care homes operated by Care Ltd and Cambridge nursing home Ltd. The average weekly fee rates are also given by the number of residence funded by local authorities and by private fees payers.

Credit risk

The group's principal financial assets are bank balances, trade and other receivables. The group's credit risk is primarily attributable to its trade receivables and balances from the related parties. The group gives significant attention to credit risk and manages the risk though credit control procedures to ensure that credit risk is at an acceptable level for its future operations.

Liquidity risk

Liquidity risk is the risk that insufficient working capital will be generated by the group's business activities and that in this event suitable sources of funding may not be available. The group has a facility arrangement which is secured and guaranteed against the assets of the subsidiaries. The group ensures that sufficient cash is available to fund on- going operations and has sufficient cash reserves for its operations. The group controls this risk by maintaining prudent liquidity management policies that include regular cash flow forecasts to monitor liquidity and compliance to the facility. Strong working relationships are maintained with a banking partner to facility the regular provision of compliance, reporting and oversight of key issues impacting the business.

FINANCIAL INSTRUMENTS
The group only has basic financial instruments and does not enter into any foreign currency forward contracts or formal hedging activities.


KTN Group Limited (Registered number: 13341371)

Group Strategic Report
for the Year Ended 31 December 2023

KEY PERFORMANCE INDICATORS
The directors of the group use a variety of financial performance indicators, including turnover, total operating profit, profit/(loss) after tax and shareholders funds. These are reviewed and assessed quarterly by the board and appropriate action taken to ensure growth targets are being achieved. The group's key financial and non-performance indicator for the year are as follows:


2023 2022
£ £
Turnover 6,243,340 5,371,334
Operating profit 1,239,069 731,308
Profit/(loss) after tax 347,878 (783,276 )
Shareholders funds 1,468,995 1,201,177

ON BEHALF OF THE BOARD:





T Nagendran - Director


3 September 2024

KTN Group Limited (Registered number: 13341371)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The company's principal activity during the year is that of running a Care Home.

DIVIDENDS
The directors declared dividend of £80,000 for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

T Nagendran
D Leonard

Other changes in directors holding office are as follows:

J Leonard ceased to be a director after 31 December 2023 but prior to the date of this report.

GOING CONCERN
The directors have, at the time of approving the financial statements, reasonable expectation that the company has adequate resources to continue operational existence for the foreseeable future. The directors have made this assessment for a period at least one year from the date of approving of these financial statements. In particular, the directors have considered, the companies forecast and projections and accordingly they continue to adopt the going concern basis in preparing annual report and financial financial statement.

DISCLOSURE IN THE STRATEGIC REPORT
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors ' report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

KTN Group Limited (Registered number: 13341371)

Report of the Directors
for the Year Ended 31 December 2023



STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, SKS Audit LLP, were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed has been approved by the Board.

ON BEHALF OF THE BOARD:





T Nagendran - Director


3 September 2024

Report of the Independent Auditors to the Members of
KTN Group Limited

Opinion
We have audited the financial statements of KTN Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Report of the Independent Auditors to the Members of
KTN Group Limited


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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

Report of the Independent Auditors to the Members of
KTN Group Limited


Auditors' 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 a Report of the Auditors 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:

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

-Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

-It is considered that non-compliance of Health & Safety laws and Care Quality Commission regulations may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
KTN Group Limited


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 a Report of the Auditors 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.




Paul Craggs (Senior Statutory Auditor)
for and on behalf of SKS Audit LLP
3 Sheen Road
Richmond Upon Thames
TW9 1AD

4 September 2024

KTN Group Limited (Registered number: 13341371)

Consolidated
Income Statement
for the Year Ended 31 December 2023

Period
13.1.22
Year ended to
31.12.23 31.12.22
Notes £    £   

TURNOVER 6,243,340 5,371,334

Cost of sales (3,302,910 ) (2,717,987 )
GROSS PROFIT 2,940,430 2,653,347

Administrative expenses (1,732,326 ) (1,987,429 )
1,208,104 665,918

Other operating income 30,965 65,390
OPERATING PROFIT 3 1,239,069 731,308

Impairment to freehold
property 4 - (1,045,329 )
1,239,069 (314,021 )


Interest payable and similar expenses 5 (606,624 ) (377,288 )
PROFIT/(LOSS) BEFORE TAXATION 632,445 (691,309 )

Tax on profit/(loss) 6 (284,567 ) (91,967 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

347,878

(783,276

)
Profit/(loss) attributable to:
Owners of the parent 347,878 (783,276 )

KTN Group Limited (Registered number: 13341371)

Consolidated
Other Comprehensive Income
for the Year Ended 31 December 2023

Period
13.1.22
Year ended to
31.12.23 31.12.22
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 347,878 (783,276 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

347,878

(783,276

)

Total comprehensive income attributable to:
Owners of the parent 347,878 (783,276 )

KTN Group Limited (Registered number: 13341371)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 9 106,380 112,290
Tangible assets 10 9,117,308 9,219,686
Investments 11 - -
9,223,688 9,331,976

CURRENT ASSETS
Stocks 12 9,500 9,500
Debtors 13 607,460 560,236
Cash at bank and in hand 1,350,765 555,579
1,967,725 1,125,315
CREDITORS
Amounts falling due within one year 14 (2,222,664 ) (1,316,285 )
NET CURRENT LIABILITIES (254,939 ) (190,970 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,968,749

9,141,006

CREDITORS
Amounts falling due after more than one
year

15

(7,401,006

)

(7,885,347

)

PROVISIONS FOR LIABILITIES 18 (98,748 ) (54,542 )
NET ASSETS 1,468,995 1,201,117

CAPITAL AND RESERVES
Called up share capital 19 200 200
Capital redemption reserve 20 1,432,177 1,432,177
Merger relief reserve 20 552,266 552,266
Retained earnings 20 (515,648 ) (783,526 )
SHAREHOLDERS' FUNDS 1,468,995 1,201,117

The financial statements were approved by the Board of Directors and authorised for issue on 3 September 2024 and were signed on its behalf by:





T Nagendran - Director


KTN Group Limited (Registered number: 13341371)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 20,985 25,592
Investments 11 552,464 552,464
573,449 578,056

CURRENT ASSETS
Debtors 13 8,379,658 7,873,020
Cash at bank and in hand 877,857 233,401
9,257,515 8,106,421
CREDITORS
Amounts falling due within one year 14 (1,701,021 ) (796,716 )
NET CURRENT ASSETS 7,556,494 7,309,705
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,129,943

7,887,761

CREDITORS
Amounts falling due after more than one
year

15

(7,401,006

)

(7,885,347

)

PROVISIONS FOR LIABILITIES 18 (5,191 ) (4,862 )
NET ASSETS/(LIABILITIES) 723,746 (2,448 )

CAPITAL AND RESERVES
Called up share capital 19 200 200
Merger relief reserve 20 552,266 552,266
Retained earnings 20 171,280 (554,914 )
SHAREHOLDERS' FUNDS 723,746 (2,448 )

Company's profit/(loss) for the financial
year

806,194

(554,664

)

KTN Group Limited (Registered number: 13341371)

Company Balance Sheet - continued
31 December 2023


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 3 September 2024 and were signed on its behalf by:





T Nagendran - Director


KTN Group Limited (Registered number: 13341371)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up Capital Merger
share Retained redemption relief Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 13 January 2022 - (250 ) - - (250 )

Changes in equity
Issue of share capital 200 - - - 200
Total comprehensive income - (783,276 ) - - (783,276 )
Movement during the year - - 1,432,177 552,266 1,984,443
Balance at 31 December 2022 200 (783,526 ) 1,432,177 552,266 1,201,117

Changes in equity
Dividends - (80,000 ) - - (80,000 )
Total comprehensive income - 347,878 - - 347,878
Balance at 31 December 2023 200 (515,648 ) 1,432,177 552,266 1,468,995

KTN Group Limited (Registered number: 13341371)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up Merger
share Retained relief Total
capital earnings reserve equity
£    £    £    £   
Balance at 13 January 2022 - (250 ) - (250 )

Changes in equity
Issue of share capital 200 - - 200
Total comprehensive income - (554,664 ) - (554,664 )
Movement during the year - - 552,266 552,266
Balance at 31 December 2022 200 (554,914 ) 552,266 (2,448 )

Changes in equity
Dividends - (80,000 ) - (80,000 )
Total comprehensive income - 806,194 - 806,194
Balance at 31 December 2023 200 171,280 552,266 723,746

KTN Group Limited (Registered number: 13341371)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

Period
13.1.22
Year ended to
31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,440,112 2,437,887
Interest paid (606,624 ) (335,672 )
Tax paid (206,480 ) (97,044 )
Net cash from operating activities 1,627,008 2,005,171

Cash flows from investing activities
Purchase of intangible fixed assets - (118,200 )
Purchase of tangible fixed assets (218,489 ) (8,858,580 )
Consolidated cash adjustment - 60,522
Net cash from investing activities (218,489 ) (8,916,258 )

Cash flows from financing activities
New loans in the year - 7,466,666
Loan repayments in the year (533,333 ) -
Equity dividends paid (80,000 ) -
Net cash from financing activities (613,333 ) 7,466,666

Increase in cash and cash equivalents 795,186 555,579
Cash and cash equivalents at
beginning of year

2

555,579

-

Cash and cash equivalents at end of
year

2

1,350,765

555,579

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
Period
13.1.22
Year ended to
31.12.23 31.12.22
£    £   
Profit/(loss) before taxation 632,445 (691,309 )
Depreciation charges 320,455 339,451
Loss on disposal of fixed assets 6,322 -
Impairment expense - 1,045,329
Finance costs 606,624 377,288
1,565,846 1,070,759
Increase in stocks - (3,000 )
Decrease/(increase) in trade and other debtors 23,668 (68,465 )
Increase in trade and other creditors 850,598 1,438,593
Cash generated from operations 2,440,112 2,437,887

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,350,765 555,579
Period ended 31 December 2022
31.12.22 13.1.22
£    £   
Cash and cash equivalents 555,579 -


KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 555,579 795,186 1,350,765
555,579 795,186 1,350,765
Debt
Debts falling due within 1 year (533,333 ) - (533,333 )
Debts falling due after 1 year (6,933,333 ) 533,333 (6,400,000 )
(7,466,666 ) 533,333 (6,933,333 )
Total (6,911,087 ) 1,328,519 (5,582,568 )

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES

STATUTORY INFORMATION
KTN Group Limited is private company limited by shares incorporated in England and Wales. The registered office is 61 Cambridge Park, Wanstead, London, England, E11 2PR.

The group consists of KTN Group Limited and all of its subsidiaries.

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (d) No disclosure has been given for the aggregate remuneration of key management personnel.

BASIS OF CONSOLIDATION
The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between the group companies are therefore eliminated in full.

The consolidated financial statements incorporate those of KTN Group Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the acquisition method. Their results are incorporated from the date that control passes.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, net of discounts, in the normal course of business.

Turnover includes revenue earned from rendering of nursing care services and is recognised when the services have been provided.

INTANGIBLE FIXED ASSET
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.

Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES - continued

TANGIBLE FIXED ASSET
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Land and building 2% Straight line method
Plant and machinery 25% Reducing balance
Motor vehicle 25% Reducing balance
Fixtures, fittings, tools and equipment 33% Straight line method
Computer equipment 33% Straight line method

FIXED ASSET INVESTMENTS
In the parent company financial statements, investments in subsidiaries 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 are recognised immediately in profit or loss.

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

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.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

STOCKS
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

TRADE AND OTHER DEBTORS
Trade and other debtors 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.

FINANCIAL INSTRUMENTS

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES - continued
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.

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.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loan from group companies that are classified as debt, are initially recognised at a transaction price, unless the arrangement constitutes of financial transaction where the debt instrument is measured at the present value of the future payments, discount of 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.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

TRADE AND OTHER CREDITORS

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES - continued
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.





GOVERNMENT GRANTS
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES - continued

GOING CONCERN
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

TAXATION
Currrent 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.

PROVISIONS
Provisions (i.e liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

LEASES
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. The amount charged to the profit and loss account represents the contributions payable to the scheme in respect of the accounting period.

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.

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. EMPLOYEES AND DIRECTORS
Period
13.1.22
Year ended to
31.12.23 31.12.22
£    £   
Wages and salaries 3,180,203 2,717,142
Social security costs 299,171 247,687
Other pension costs 67,756 60,718
3,547,130 3,025,547

The average number of employees during the year was as follows:
Period
13.1.22
Year ended to
31.12.23 31.12.22

Staff 119 99
Directors 3 3
122 102

Period
13.1.22
Year ended to
31.12.23 31.12.22
£    £   
Directors' remuneration 112,000 107,608

3. OPERATING PROFIT

The operating profit is stated after charging:

Period
13.1.22
Year ended to
31.12.23 31.12.22
£    £   
Hire of plant and machinery - 2,817
Depreciation - owned assets 314,545 263,538
Loss on disposal of fixed assets 6,322 -
Goodwill amortisation 5,910 75,912
Auditors' remuneration 28,360 37,000

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

4. EXCEPTIONAL ITEMS
Period
13.1.22
Year ended to
31.12.23 31.12.22
£    £   
Impairment to freehold
property - (1,045,329 )

5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
13.1.22
Year ended to
31.12.23 31.12.22
£    £   
Bank interest 554,875 377,288
Other loan interest 51,223 -
PAYE interest 526 -
606,624 377,288

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
Period
13.1.22
Year ended to
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 131,773 73,573
Over/ Under provision of tax 108,588 -
Total current tax 240,361 73,573

Deferred tax 44,206 18,394
Tax on profit/(loss) 284,567 91,967

7. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by S408 Companies Act 2006, the company has not presented its own profit and loss
account and related notes.

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

8. DIVIDENDS
Period
13.1.22
Year ended to
31.12.23 31.12.22
£    £   
Ordinary shares of £1 each
Final 80,000 -

9. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 1,518,200
AMORTISATION
At 1 January 2023 1,405,910
Amortisation for year 5,910
At 31 December 2023 1,411,820
NET BOOK VALUE
At 31 December 2023 106,380
At 31 December 2022 112,290

Goodwill represents the excess of cost paid over the fair value of the net assets acquired in respect of a care home business to expand its operations.

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

10. TANGIBLE FIXED ASSETS

Group
Fixtures
Land and Plant and and
building machinery fittings
£    £    £   
COST
At 1 January 2023 9,042,960 888,528 24,404
Additions 18,000 66,638 125,466
Disposals - - -
At 31 December 2023 9,060,960 955,166 149,870
DEPRECIATION
At 1 January 2023 174,057 593,974 2,197
Charge for year 180,949 80,723 37,773
Eliminated on disposal - - -
At 31 December 2023 355,006 674,697 39,970
NET BOOK VALUE
At 31 December 2023 8,705,954 280,469 109,900
At 31 December 2022 8,868,903 294,554 22,207

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 14,986 34,489 10,005,367
Additions - 8,385 218,489
Disposals (14,986 ) - (14,986 )
At 31 December 2023 - 42,874 10,208,870
DEPRECIATION
At 1 January 2023 6,556 8,897 785,681
Charge for year 2,108 12,992 314,545
Eliminated on disposal (8,664 ) - (8,664 )
At 31 December 2023 - 21,889 1,091,562
NET BOOK VALUE
At 31 December 2023 - 20,985 9,117,308
At 31 December 2022 8,430 25,592 9,219,686

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

10. TANGIBLE FIXED ASSETS - continued

Company
Computer
equipment
£   
COST
At 1 January 2023 34,489
Additions 8,385
At 31 December 2023 42,874
DEPRECIATION
At 1 January 2023 8,897
Charge for year 12,992
At 31 December 2023 21,889
NET BOOK VALUE
At 31 December 2023 20,985
At 31 December 2022 25,592

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 552,464
NET BOOK VALUE
At 31 December 2023 552,464
At 31 December 2022 552,464

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

11. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

SUBSIDIARIES

Rochemont Care Limited (Direct Subsidiary)
Registered office: 61 Cambridge Park, Wanstead, London, England, E11 2PR.
Nature of business: Care Home Business
%
Class of shares: holding
Ordinary shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 743,058 846,379
Profit for the year/period 946,679 293,915

Cambridge Nursing Home Limited (Indirect Subsidiary)
Registered office: 61 Cambridge Park, Wanstead, London, England, E11 2PR.
Nature of business: Care Home Business
%
Class of shares: holding
Ordinary shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 1,106,818 1,349,140
Profit/(loss) for the year/period 457,478 (635,001 )


12. STOCKS

Group
2023 2022
£    £   
Stocks 9,500 9,500

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

13. DEBTORS

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year:
Trade debtors 201,492 177,058 - -
Amounts owed by group undertakings - - 1,050,000 -
Amounts owed by associates 191,699 193,930 - -
Other debtors 61,775 79,304 12,051 -
Tax 73,123 - - -
Accrued income 64,710 85,684 - -
Prepayments 14,661 24,260 724 -
607,460 560,236 1,062,775 -

Amounts falling due after more than one year:
Trade debtors - - 116,550 23,310
Amounts owed by group undertakings - - 7,200,333 7,849,710
- - 7,316,883 7,873,020

Aggregate amounts 607,460 560,236 8,379,658 7,873,020

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 16) 533,333 533,333 533,333 533,333
Trade creditors 41,150 40,691 - 3,516
Amounts owed to group undertakings - - 80,000 -
Amounts owed to associates - - 29,575 27,344
Corporation tax 180,577 73,573 - -
Social security and other tax 97,008 53,319 8,487 9,625
Other creditors 1,061,656 242,074 1,000,928 201,398
Accruals 286,662 284,044 48,698 21,500
Deferred income 22,278 89,251 - -
2,222,664 1,316,285 1,701,021 796,716

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 16) 6,400,000 6,933,333 6,400,000 6,933,333
Other creditors 1,001,006 952,014 1,001,006 952,014
7,401,006 7,885,347 7,401,006 7,885,347

16. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans 533,333 533,333 533,333 533,333
Amounts falling due between one and two years:
Bank loans - 1-2 years 533,333 533,333 533,333 533,333
Amounts falling due between two and five years:
Bank loans - 2-5 years 5,866,667 6,400,000 5,866,667 6,400,000

The parent company has a bank loan with Barclays Bank PLC, which is secured on freehold property and other assets of the group companies. The subsidiaries have both given debenture and guarantee in respect of bank borrowings of the parent company.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 54,019 54,019
Between one and five years 162,056 216,075
216,075 270,094

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

18. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax 98,748 54,542 5,191 4,862

Group
Deferred
tax
£   
Balance at 1 January 2023 54,542
Provided during year 44,206
Balance at 31 December 2023 98,748

Company
Deferred
tax
£   
Balance at 1 January 2023 4,862
Provided during year 329
Provided during year
Balance at 31 December 2023 5,191

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:


Number:

Class:
Nominal
value:

2023


2022
£ £
200 Ordinary shares 1 200 200
200 200

20. RESERVES

Group
Capital Merger
Retained redemption relief
earnings reserve reserve Totals
£    £    £    £   

At 1 January 2023 (783,526 ) 1,432,177 552,266 1,200,917
Profit for the year 347,878 347,878
Dividends (80,000 ) (80,000 )
At 31 December 2023 (515,648 ) 1,432,177 552,266 1,468,795

KTN Group Limited (Registered number: 13341371)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

20. RESERVES - continued

Company
Merger
Retained relief
earnings reserve Totals
£    £    £   

At 1 January 2023 (554,914 ) 552,266 (2,648 )
Profit for the year 806,194 806,194
Dividends (80,000 ) (80,000 )
At 31 December 2023 171,280 552,266 723,546

The reserves are as follows:

Capital reserve
Capital reserve arose as a part of business acquisition that is accounted for as an excess of net assets acquired against the investment value, in accordance with UK GAAP, during the previous year.

Merger relief reserve
Merger reserve arose as a part of business combination that is accounted for as a merger in accordance with UK GAAP as applied in previous year.

Retained earnings
Retained earnings represents cumulative profits or losses net of dividends paid and other adjustments.

21. RELATED PARTY TRANSACTIONS

Group
KTN Holdings SA
(Major shareholder)
At the balance sheet date, other creditors includes amount of £1,001,006 (2022 - £952,014) due to parent company, payable in more than one year.

KTN Investments Limited
(Common control)
At the balance sheet date, amounts owed to associates includes amount of £191,699 due to related party (2022 - £193,930 due from related party), payable in less than one year.

Krishnan Nagendran
(Director of KTN Holdings SA)
At the balance sheet date, other creditors includes amount of £199,993 (2022 - £199,993) due to related party , payable in less than one year.

22. CONTROLLING PARTY

The ultimate controlling parties of the company is KTN Holdings SA and Tayvanie Nagendran by
virtue of their majority shareholdings.