REGISTERED NUMBER: 11885403 (England and Wales) |
UNITED HEALTH GROUP 2 LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
REGISTERED NUMBER: 11885403 (England and Wales) |
UNITED HEALTH GROUP 2 LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 | to | 8 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 | to | 26 |
UNITED HEALTH GROUP 2 LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Timothy Godson FCA |
AUDITORS: |
4 Henley Way |
Doddington Road |
Lincoln |
Lincolnshire |
LN6 3QR |
BANKERS: | HSBC Bank Plc |
221 High Street |
Lincoln |
Lincolnshire |
LN1 1TS |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their strategic report of the company and the group for the year ended 31 January 2024. |
REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of our group business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties that we face. |
We still consider the key performance indicators of the group to be those that communicate the financial performance and strength of the group as a whole, these being turnover, profits before tax and net assets. |
The current economic conditions continue to provide an element of uncertainty over the level of funding available for the types of services provided by the majority of the group. |
In our opinion, the group will have sufficient resources available to manage its business risks and we expect that the present level of activity will be sustained for the foreseeable future. |
Position at the financial reporting date |
The directors consider the group to be in a solid financial position at the financial position date, with accumulated distributable reserves of approximately £4,095,000 (2023 - £2,912,000). |
Management remains mindful of the competitive environment in which the group operates and the need to maintain close control over the group's working capital and financial position. |
Borrowings and Risk Management |
The group's principal financial instruments comprise bank balances, bank loans, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the group operations and capital investment. The group's approach to managing other risks applicable to the financial instruments minimised the risk to a level that the Directors consider acceptable. |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group is affected by a number of factors, the principal ones of which are: |
- The group is exposed to the risk of negative developments in financial markets and the sectors in which it operates, either directly or through the impact on the group's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, restrictions in the availability of credit, impact on demand from customers, problems in the supplier base, increases in financing costs or in the cost of utilities. Such developments might increase operating costs, reduce revenues, lower asset values or result in the businesses being unable to meet in full its strategic objectives. |
- The group operates in a competitive market, and failure to compete effectively in terms of price and quality can have an adverse effect on demand and / or margins. |
The group mitigates risk in several ways: |
- The group has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance. |
- Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible, whilst maintaining long term working relationships, innovation and good lines of communication. |
- The group operates a recruitment and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs, and to operate in line with the group's corporate objectives. |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
FUTURE DEVELOPMENT |
The group's strategy is to continue organic growth using the existing business model. |
ON BEHALF OF THE BOARD: |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the provision of residential therapeutic and educational services for children with emotional and behavioural difficulties. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 January 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this 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. |
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 he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
UNITED HEALTH GROUP 2 LIMITED |
Opinion |
We have audited the financial statements of United Health Group 2 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 January 2024 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
UNITED HEALTH GROUP 2 LIMITED |
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 |
UNITED HEALTH GROUP 2 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. |
The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements, (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimate and judgemental areas of the financial statements such as depreciation of tangible fixed asset, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in preparation of the financial statements. |
Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified compliance with Ofsted regulations as most likely to have such an effect. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. We inspected the latest Ofsted inspection reports from visits in the year for any instances of non-compliance and discussed with management the impact of the outcomes of these visits on operations of the children's homes. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. |
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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 |
UNITED HEALTH GROUP 2 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. |
for and on behalf of |
4 Henley Way |
Doddington Road |
Lincoln |
Lincolnshire |
LN6 3QR |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 5,628,517 | 4,579,050 |
Cost of sales | 2,669,177 | 2,362,921 |
GROSS PROFIT | 2,959,340 | 2,216,129 |
Administrative expenses | 1,205,638 | 1,411,852 |
1,753,702 | 804,277 |
Other operating income | - | 15,377 |
OPERATING PROFIT | 4 | 1,753,702 | 819,654 |
Interest payable and similar expenses | 5 | 317,306 | 185,762 |
PROFIT BEFORE TAXATION | 1,436,396 | 633,892 |
Tax on profit | 6 | 308,137 | 130,795 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,128,259 | 503,097 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,128,259 | 503,097 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,128,259 | 503,097 |
Total comprehensive income attributable to: |
Owners of the parent | 1,128,259 | 503,097 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | (1,373,096 | ) | (1,626,590 | ) |
Tangible assets | 9 | 7,212,008 | 6,795,250 |
Investments | 10 | - | - |
5,838,912 | 5,168,660 |
CURRENT ASSETS |
Debtors | 11 | 12,444,952 | 10,884,759 |
Cash at bank and in hand | 320,353 | 1,169,221 |
12,765,305 | 12,053,980 |
CREDITORS |
Amounts falling due within one year | 12 | 10,503,124 | 9,808,080 |
NET CURRENT ASSETS | 2,262,181 | 2,245,900 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 8,101,093 | 7,414,560 |
CREDITORS |
Amounts falling due after more than one year | 13 | (3,915,068 | ) | (4,347,750 | ) |
PROVISIONS FOR LIABILITIES | 16 | (50,714 | ) | (59,758 | ) |
NET ASSETS | 4,135,311 | 3,007,052 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 47,380 | 47,380 |
Capital redemption reserve | 18 | 47,380 | 47,380 |
Retained earnings | 18 | 4,040,551 | 2,912,292 |
SHAREHOLDERS' FUNDS | 4,135,311 | 3,007,052 |
The financial statements were approved by the Board of Directors and authorised for issue on 5 September 2024 and were signed on its behalf by: |
P J Pearson - Director |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 13 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year | 123,846 | (59,064 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 | 47,380 | 2,409,195 | 47,380 | 2,503,955 |
Changes in equity |
Total comprehensive income | - | 503,097 | - | 503,097 |
Balance at 31 January 2023 | 47,380 | 2,912,292 | 47,380 | 3,007,052 |
Changes in equity |
Total comprehensive income | - | 1,128,259 | - | 1,128,259 |
Balance at 31 January 2024 | 47,380 | 4,040,551 | 47,380 | 4,135,311 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 January 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 January 2024 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 236,351 | 798,942 |
Interest paid | (317,306 | ) | (185,762 | ) |
Tax paid | (89,360 | ) | (185,895 | ) |
Net cash from operating activities | (170,315 | ) | 427,285 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (604,001 | ) | (490,188 | ) |
Sale of tangible fixed assets | 271,656 | 5,858 |
Net cash from investing activities | (332,345 | ) | (484,330 | ) |
Cash flows from financing activities |
Loan repayments in year | (341,583 | ) | (382,900 | ) |
Amount withdrawn by directors | (4,625 | ) | (73,927 | ) |
Net cash from financing activities | (346,208 | ) | (456,827 | ) |
Decrease in cash and cash equivalents | (848,868 | ) | (513,872 | ) |
Cash and cash equivalents at beginning of year | 2 | 1,169,221 | 1,683,093 |
Cash and cash equivalents at end of year | 2 | 320,353 | 1,169,221 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,436,396 | 633,892 |
Depreciation charges | (83,600 | ) | (92,509 | ) |
Profit on disposal of fixed assets | (254,307 | ) | (3,797 | ) |
Finance costs | 317,306 | 185,762 |
1,415,795 | 723,348 |
(Increase)/decrease in trade and other debtors | (1,338,983 | ) | 123,866 |
Increase/(decrease) in trade and other creditors | 159,539 | (48,272 | ) |
Cash generated from operations | 236,351 | 798,942 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 320,353 | 1,169,221 |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 1,169,221 | 1,683,093 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.2.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,169,221 | (848,868 | ) | 320,353 |
1,169,221 | (848,868 | ) | 320,353 |
Debt |
Debts falling due within 1 year | (466,811 | ) | (91,098 | ) | (557,909 | ) |
Debts falling due after 1 year | (4,347,750 | ) | 432,682 | (3,915,068 | ) |
(4,814,561 | ) | 341,584 | (4,472,977 | ) |
Total | (3,645,340 | ) | (507,284 | ) | (4,152,624 | ) |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | STATUTORY INFORMATION |
United Health Group 2 Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of United Health Group 2 Limited and the entities it controls (its subsidiaries) drawn up to 31 January each year. Control comprises the power to govern the financial and operating policies of the investee via control of the issued share capital of those companies. |
Subsidiaries are consolidated from the date of their acquisition, being the date on which the group obtains control, and continue to be consolidated until the date that such control ceases. |
The financial statements of subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting policies. |
Subsidiaries acquired during the year are consolidated under the acquisition method of accounting, whereby underlying assets and liabilities, and the consideration paid, are recorded at their fair values. The deficit of the fair value of consideration paid less than the fair value of net assets acquired is presented as negative consolidation goodwill. |
Intercompany balances and transactions, including unrealised profits arising from intragroup transactions, have been eliminated. |
Significant judgements and estimates |
In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis and are covered within the accounting policies: |
(i) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for the carrying amount of the property plant and equipment, and accounting policy note for the usual economic lives of each class of assets. |
(ii) The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, ageing profile of debtors and historical experience. See note 11 for the net carrying amount of the debtors and associated impairment provision. |
(iii) The group has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the statement of financial position. The assumptions reflect historical experience and current trends. See note 20 for the disclosures relating to the defined contribution pension scheme. |
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects. |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered in the provision of care and education. |
Turnover is recognised in the period in which the services are provided and comprises residents' fees, educational fees and other ancillary services. |
Goodwill |
Negative goodwill arising on consolidation has been capitalised and released over a period of ten years. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
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. |
For the purpose of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, as estimate is made of the recoverable amount of the cash- generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that included the asset and generates cash inflows that largely independent of the cash inflows from other assets or group assets. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate. |
Leasing commitments |
Lease payments are recognised as an expense over the lease term on a straight-line basis. |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the income statement. |
Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,390,377 | 2,152,202 |
Social security costs | 224,931 | 206,673 |
Other pension costs | 52,885 | 39,871 |
2,668,193 | 2,398,746 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Head office | 13 | 13 |
Children's services | 37 | 38 |
Education services | 30 | 24 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 222,000 | 222,000 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 116,000 | 116,000 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 169,894 | 160,985 |
Profit on disposal of fixed assets | (254,307 | ) | (3,797 | ) |
Goodwill amortisation | (253,494 | ) | (253,494 | ) |
Auditors' remuneration | 25,612 | 25,032 |
Operating leases | 18,000 | 18,000 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 317,613 | 186,184 |
HMRC interest | (307 | ) | (422 | ) |
317,306 | 185,762 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 298,847 | 71,037 |
Adjustment re previous years | 18,335 | - |
Total current tax | 317,182 | 71,037 |
Deferred tax | (9,045 | ) | 59,758 |
Tax on profit | 308,137 | 130,795 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 1,436,396 | 633,892 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
359,099 |
120,439 |
Effects of: |
Expenses not deductible for tax purposes | 8,849 | 92 |
Capital allowances in excess of depreciation | (112,361 | ) | (49,494 | ) |
Deferred tax | (9,045 | ) | 59,758 |
Chargeable gains | 55,322 | - |
Prior year corporation tax adjustment | 18,335 | - |
adjustment |
Change in tax rate | (12,062 | ) | - |
Total tax charge | 308,137 | 130,795 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 | (2,534,944 | ) |
AMORTISATION |
At 1 February 2023 | (908,354 | ) |
Amortisation for year | (253,494 | ) |
At 31 January 2024 | (1,161,848 | ) |
NET BOOK VALUE |
At 31 January 2024 | (1,373,096 | ) |
At 31 January 2023 | (1,626,590 | ) |
Negative goodwilll arose on the purchase of United Children's Services Limited due to the net assets acquired being in excess of the consideration given. |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 February 2023 | 6,691,642 | 861,867 | 225,347 | 7,778,856 |
Additions | 536,568 | 50,238 | 17,195 | 604,001 |
Disposals | - | - | (40,039 | ) | (40,039 | ) |
At 31 January 2024 | 7,228,210 | 912,105 | 202,503 | 8,342,818 |
DEPRECIATION |
At 1 February 2023 | 86,813 | 725,158 | 171,635 | 983,606 |
Charge for year | 91,384 | 58,978 | 19,532 | 169,894 |
Eliminated on disposal | - | - | (22,690 | ) | (22,690 | ) |
At 31 January 2024 | 178,197 | 784,136 | 168,477 | 1,130,810 |
NET BOOK VALUE |
At 31 January 2024 | 7,050,013 | 127,969 | 34,026 | 7,212,008 |
At 31 January 2023 | 6,604,829 | 136,709 | 53,712 | 6,795,250 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 February 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 January 2024 |
DEPRECIATION |
At 1 February 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
Included in cost of land and buildings is freehold land of £ 2,075,000 (2023 - £ 2,075,000 ) which is not depreciated. |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: The Old Coach House, Gainsborough Road, Drinsey Nook, Lincoln LN1 2JJ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
United Children's Services Limited owns 100% of the share capital of United Education Services Limited. |
Registered office: The Old Coach House, Gainsborough Road, Drinsey Nook, Lincoln LN1 2JJ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,380,986 | 193,472 |
Amounts owed by group undertakings | 10,000 | 10,000 |
Other debtors | 10,998,916 | 10,681,287 |
Prepayments and accrued income | 55,050 | - |
12,444,952 | 10,884,759 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 14) | 557,909 | 466,811 |
Trade creditors | 134,579 | 114,944 |
Amounts owed to group undertakings | - | - |
Taxation | 298,859 | 71,037 |
Other taxes and social security | 61,161 | 53,657 |
Other creditors | 371,515 | 353,355 |
Directors' current accounts | 8,103,095 | 8,107,870 | 8,103,095 | 8,107,870 |
Accruals and deferred income | 976,006 | 640,406 |
10,503,124 | 9,808,080 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 14) | 3,915,068 | 4,347,750 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 557,909 | 466,811 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 3,915,068 | 4,347,750 |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 4,472,977 | 4,814,561 |
HSBC UK Bank Plc holds a fixed and floating charge over all the assets of the parent and one of the subsidiaries. |
16. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 50,714 | 59,758 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
16. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 February 2023 | 59,758 |
Charge to Income Statement during year | 25,317 |
Prior year adjustment | (34,361 | ) |
Balance at 31 January 2024 | 50,714 |
Company |
Deferred |
tax |
£ |
Balance at 1 February 2023 |
Charge to Income Statement during year |
Prior year adjustment | (34,361 | ) |
Balance at 31 January 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £0.50 | 47,380 | 47,380 |
18. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 2,912,292 | 47,380 | 2,959,672 |
Profit for the year | 1,128,259 | 1,128,259 |
At 31 January 2024 | 4,040,551 | 47,380 | 4,087,931 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 1,153,961 |
Profit for the year |
At 31 January 2024 | 1,277,807 |
UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
18. | RESERVES - continued |
Retained earnings |
Includes all current and prior period retained profits and losses less dividends paid. All amounts are distributable. |
Capital redemption reserve |
This reserve arose on the purchase of the parent's own Ordinary B shares. |
19. | PENSION COMMITMENTS |
Assets of the group's pension scheme are held separately in an independently administered fund. At the financial reporting date the group had pension commitments of £12,026 (2023 - £9,144). |
20. | CONTINGENT LIABILITIES |
The group is a party to a composite cross guarantee given to the HSBC Bank Plc between Manor Homes (Yorkshire) Limited, United Health Group Limited, Barford Children's Services Limited, Creative Care & Therapy Limited, United Children's Services Limited, United Education Services Limited, United Health Group 2 Limited and Manor Homes Property Company Limited. |
21. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
2024 | 2023 |
£ | £ |
Amount due to related party | 8,307,471 | 8,312,246 |
Other related parties |
2024 | 2023 |
£ | £ |
Amount due from related party | 10,998,654 | 10,681,287 |
During the year, a total of key management personnel compensation of £ 222,000 (2023 - £ 222,000 ) was paid. |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is P J Pearson. |