GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
FOR |
CREATIVE CARE OPTIONS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
FOR |
CREATIVE CARE OPTIONS LIMITED |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 30 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
CREATIVE CARE OPTIONS LIMITED |
COMPANY INFORMATION |
for the year ended 30 March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
70-72 Nottingham Road |
Mansfield |
Nottinghamshire |
NG18 1BN |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
GROUP STRATEGIC REPORT |
for the year ended 30 March 2024 |
The directors present their strategic report of the company and the group for the year ended 30 March 2024. |
FAIR REVIEW OF THE BUSINESS AND KEY PERFORMANCE INDICATORS |
The business operates a portfolio of ten homes capable of accommodating 67 service users with autistic spectrum disorders (ASD), severe learning disabilities with associated behavioural problems or mental health. |
Year ended 31 March 2024 |
Year ended 31 March 2023 |
£ | £ |
Turnover | 10,718,307 | 9,284,161 |
Gross profit | 2,575,121 | 2,050,075 |
Operating profit before depreciation, amortisation, exceptional items, interest and bank charges |
930,741 |
564,181 |
During the financial year, the group successfully maintained eight homes with "Good" or "Outstanding" ratings from the Care Quality Commission (CQC). Our commitment to continuous improvement was demonstrated through ongoing investments in the development of our services and the enhancement of living environments for those we support. The leadership's strategic focus on operational excellence has ensured the business sustains its competitive edge in the marketplace. |
The company achieved a noteworthy 98.4% occupancy rate, attributed to an optimized staffing model that enhances care quality while maintaining operational efficiency. This strategic initiative has been instrumental in achieving these high occupancy levels and maintaining the quality of care. |
Looking forward, the group has identified opportunities for expansion, with plans underway to acquire and develop an additional home dedicated to single-occupancy apartments. These developments are supported by commissioner backing, aligning with the transforming care agenda for individuals with learning disabilities. |
Key performance indicators (KPIs), such as staff retention rates, occupancy levels, and care quality scores, are rigorously monitored. These KPIs, together with comprehensive audit processes, are reviewed monthly by the board and Non-Executive Directors (NEDs) to guide strategic decision-making and ensure that we continue to deliver high-quality care. |
The group has secured bank loans and loan notes until 2026, with options to expand these facilities to support future growth initiatives. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's primary objective is to deliver high-quality care through a stable and skilled workforce. While challenges such as reliance on agency staff were significant, the company successfully reduced this dependency to just 3.2% by implementing robust recruitment strategies. These efforts have ensured that staffing needs are met effectively, thereby maintaining the quality of care. |
Securing additional funding for growth has proven challenging; however, the company remains committed to expanding its services into supported living plus and residential single-occupancy apartments. These expansions are driven by local demand from commissioners and include the development of properties previously acquired for supported living. |
To further enhance management oversight and operational efficiency, the company continues to digitalise its operations. This includes the implementation of electronic audit risk management tools, electronic care records, and the ongoing rollout of an electronic rostering and attendance system for payroll. |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
GROUP STRATEGIC REPORT |
for the year ended 30 March 2024 |
FINANCIAL RISK MANAGEMENT |
Given the nature of the company's business and its asset and liability base, the directors consider cash flow and interest rate risk as the only relevant financial risks. The company regularly reviews financial projections to ensure that cash flows are adequate to meet financial obligations and bank repayments on time. |
Liquidity risk |
At the balance sheet date, the group had net liabilities of £5,074,589. The directors have prepared forecasts and projections taking account of reasonably foreseeable changes in trading performance to ensure there is adequate financing available to cover such risks. The group aims to manage its financial risk by providing sufficient available resources to deal with any short-term fluctuations in cash flow. |
Interest rate risk |
The group adopts a risk averse position with respect to changes in interest rates. The group's borrowings comprise bank loan and loan notes which were refinanced during the previous financial year. The new bank loan facilities have fixed interest at a rate of 3.5% subject only to changes in Bank of England's Base Rate. The loan notes incur a fixed rate of interest at 4%. The group's interest rate risk is therefore limited to changes in Base Rate on its bank loan facilities. |
GOING CONCERN |
The group has secured bank loans and loan notes through until 2026 with the options to increase these facilities to support future growth. While inflationary pressures, rising utility costs, and staff turnover have impacted the business, the group is strategically positioned to meet the strong demand for services, particularly in the provision of single-occupancy apartments and other transforming care initiatives. |
The directors have prepared financial forecasts for a period exceeding 12 months, considering current trading conditions, inflationary impacts, and future growth plans. Based on this analysis, the directors are satisfied that the going concern basis of preparation remains appropriate. |
FUTURE DEVELOPMENTS |
In the short to medium term, the group's strategy is focused on expanding existing services within Nottinghamshire and neighbouring areas. By working closely with local authorities and Integrated Care Systems (ICS) commissioners, we aim to develop services that align with the transforming care agenda. Consequently, any additional capacity created has been quickly filled to meet the growing demand for single-occupancy apartments. |
Looking towards the long term, the focus will shift towards identifying new opportunities and securing funding to support growth beyond our current geographical footprint. This expansion will encompass both Residential and Supported Living services, ensuring that Creative Care Options Limited continues to lead in providing high-quality, person-centred care. |
ON BEHALF OF THE BOARD: |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
REPORT OF THE DIRECTORS |
for the year ended 30 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company continued to be that of a holding company. The principal activity of the group continued to be that of providing residential care for individuals with autistic spectrum disorders, severe learning disabilities and associated behavioural problems. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 31 March 2023 to the date of this report. |
ACCOUNTING REFERENCE DATE |
The group's and company's accounting reference date is 30 March. The group and company draw up their accounts for the year ended 31 March, in line with company law allowing accounts to be drawn up to within 7 days of the accounting reference date. |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date. |
Disabled persons |
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
EMPLOYEE INVOLVEMENT |
The group's policy is to consult and discuss with employees, through staff councils (Your Voice) and at meetings, matters likely to affect employees' interests. |
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance. We provide "you said we did" updates to staff. |
The people and culture team and the operational management team regularly visit our homes to meet with staff and the people we support. |
ENGAGEMENT WITH EMPLOYEES |
Creative Care has continued to engage with employee by undertaking an annual employee satisfaction survey which demonstrated a positive 89% of staff were engaged and enjoyed working for the company. The business engages with staff through the "Your Voice" forum and other listening groups with staff. A range of employee rewards and benefits are provided including long service, employee recognition awards and refer a friend. |
STRATEGIC REPORT |
The company, and 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. It has done so in respect of a review of the business, its principal risks, financial risks and future developments. |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
REPORT OF THE DIRECTORS |
for the year ended 30 March 2024 |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Hewitt Card Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CREATIVE CARE OPTIONS LIMITED |
Opinion |
We have audited the financial statements of Creative Care Options Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 March 2024 which comprise the Consolidated Statement of 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 30 March 2024 and of the group's loss 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 |
CREATIVE CARE OPTIONS 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 five, 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. |
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 adopted a risk based approach based upon analytical procedures and knowledge of the clients systems and environment it operates in. |
This enables us to design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for the audit opinion. |
To obtain an understanding of internal control where relevant to the audit to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the companys internal control. |
To evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. |
To conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. |
The likelihood of detecting irregularities is inherently difficult and we have designed our tests and procedures to reduce this risk. |
- We have enquired of management and the company's solicitors around actual and potential litigation and claims. |
- Review of company minutes of meetings of those charged with governance. |
- Reviewing financial statements disclosure and testing supporting documentation to assess compliance with applicable laws and regulations |
- Review and testing of management override of controls, including through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions. |
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 |
CREATIVE CARE OPTIONS 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 |
Statutory Auditors |
70-72 Nottingham Road |
Mansfield |
Nottinghamshire |
NG18 1BN |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the year ended 30 March 2024 |
30.3.24 | 30.3.23 |
Notes | £ | £ |
TURNOVER | 10,718,307 | 9,284,161 |
Cost of sales | 8,143,186 | 7,234,086 |
GROSS PROFIT | 2,575,121 | 2,050,075 |
Administrative expenses | 2,366,028 | 2,234,900 |
209,093 | (184,825 | ) |
Other operating income | 42,752 | 107,660 |
OPERATING PROFIT/(LOSS) | 5 | 251,845 | (77,165 | ) |
Interest receivable and similar income | 4 | 3 |
251,849 | (77,162 | ) |
Interest payable and similar expenses | 7 | 680,628 | 509,617 |
LOSS BEFORE TAXATION | (428,779 | ) | (586,779 | ) |
Tax on loss | 8 | - | (17,970 | ) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(428,779 |
) |
(568,809 |
) |
Loss attributable to: |
Owners of the parent | (428,779 | ) | (568,809 | ) |
Total comprehensive income attributable to: |
Owners of the parent | (428,779 | ) | (568,809 | ) |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
CONSOLIDATED BALANCE SHEET |
30 March 2024 |
30.3.24 | 30.3.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 27,910 | 105,083 |
Tangible assets | 11 | 8,358,863 | 8,723,248 |
Investments | 12 | - | - |
8,386,773 | 8,828,331 |
CURRENT ASSETS |
Debtors | 13 | 573,461 | 629,073 |
Cash in hand | 5,846 | 9,821 |
579,307 | 638,894 |
CREDITORS |
Amounts falling due within one year | 14 | 10,238,877 | 10,015,934 |
NET CURRENT LIABILITIES | (9,659,570 | ) | (9,377,040 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | (1,272,797 | ) | (548,709 | ) |
CREDITORS |
Amounts falling due after more than one year | 15 | (3,165,746 | ) | (3,461,055 | ) |
PROVISIONS FOR LIABILITIES | 19 | (636,046 | ) | (636,046 | ) |
NET LIABILITIES | (5,074,589 | ) | (4,645,810 | ) |
CAPITAL AND RESERVES |
Called up share capital | 20 | 25 | 25 |
Share premium | 145,493 | 145,493 |
Retained earnings | (5,220,107 | ) | (4,791,328 | ) |
SHAREHOLDERS' FUNDS | (5,074,589 | ) | (4,645,810 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2024 and were signed on its behalf by: |
I T Coldrick - Director |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
COMPANY BALANCE SHEET |
30 March 2024 |
30.3.24 | 30.3.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
Company's loss for the financial year | (375,714 | ) | (344,830 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 30 March 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 31 March 2022 | 25 | (4,222,519 | ) | 145,493 | (4,077,001 | ) |
Changes in equity |
Total comprehensive income | - | (568,809 | ) | - | (568,809 | ) |
Balance at 30 March 2023 | 25 | (4,791,328 | ) | 145,493 | (4,645,810 | ) |
Changes in equity |
Total comprehensive income | - | (428,779 | ) | - | (428,779 | ) |
Balance at 30 March 2024 | 25 | (5,220,107 | ) | 145,493 | (5,074,589 | ) |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 30 March 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 31 March 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 March 2023 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 March 2024 | ( |
) | ( |
) |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 30 March 2024 |
30.3.24 | 30.3.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 857,190 | 1,181,005 |
Interest paid | (679,761 | ) | (508,834 | ) |
Interest element of hire purchase payments paid |
(867 |
) |
(783 |
) |
Net cash from operating activities | 176,562 | 671,388 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (211,824 | ) | (1,608,036 | ) |
Sale of tangible fixed assets | 1,767 | 525 |
Interest received | 4 | 3 |
Net cash from investing activities | (210,053 | ) | (1,607,508 | ) |
Cash flows from financing activities |
New loans in year | 327,713 | 200,000 |
Loan repayments in year | (286,000 | ) | (60,000 | ) |
Capital repayments in year | (9,307 | ) | 25,991 |
Net cash from financing activities | 32,406 | 165,991 |
Decrease in cash and cash equivalents | (1,085 | ) | (770,129 | ) |
Cash and cash equivalents at beginning of year |
2 |
(282,745 |
) |
487,384 |
Cash and cash equivalents at end of year | 2 | (283,830 | ) | (282,745 | ) |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 30 March 2024 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.3.24 | 30.3.23 |
£ | £ |
Loss before taxation | (428,779 | ) | (586,779 | ) |
Depreciation charges | 652,840 | 616,784 |
(Profit)/loss on disposal of fixed assets | (1,223 | ) | 3,845 |
Finance costs | 680,628 | 509,617 |
Finance income | (4 | ) | (3 | ) |
903,462 | 543,464 |
Decrease/(increase) in trade and other debtors | 55,611 | (1,266,702 | ) |
(Decrease)/increase in trade and other creditors | (101,883 | ) | 1,904,243 |
Cash generated from operations | 857,190 | 1,181,005 |
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 30 March 2024 |
30.3.24 | 31.3.23 |
£ | £ |
Cash and cash equivalents | 5,846 | 9,821 |
Bank overdrafts | (289,676 | ) | (292,566 | ) |
(283,830 | ) | (282,745 | ) |
Year ended 30 March 2023 |
30.3.23 | 31.3.22 |
£ | £ |
Cash and cash equivalents | 9,821 | 487,384 |
Bank overdrafts | (292,566 | ) | - |
(282,745 | ) | 487,384 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 31.3.23 | Cash flow | At 30.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 9,821 | (3,975 | ) | 5,846 |
Bank overdrafts | (292,566 | ) | 2,890 | (289,676 | ) |
(282,745 | ) | (1,085 | ) | (283,830 | ) |
Debt |
Finance leases | (30,361 | ) | 9,307 | (21,054 | ) |
Debts falling due within 1 year | (8,329,359 | ) | (327,714 | ) | (8,657,073 | ) |
Debts falling due after 1 year | (3,440,000 | ) | 286,000 | (3,154,000 | ) |
(11,799,720 | ) | (32,407 | ) | (11,832,127 | ) |
Total | (12,082,465 | ) | (33,492 | ) | (12,115,957 | ) |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 30 March 2024 |
1. | STATUTORY INFORMATION |
Creative Care Options Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company is a qualifying entity for the purposes of FRS 102. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements: |
- Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures; |
- Section 33 'Related Party Disclosures' - Compensation for key management personnel. |
The company is consolidated in these financial statements. |
Basis of consolidation |
The consolidated financial statements incorporate those of Creative Care Options 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 purchase method. Their results are incorporated from the date that control passes. |
All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. |
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. |
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill. |
Reporting period |
The group's and company's accounting reference date is 30 March, however the group and company have drawn up the accounts for both periods for the year ended 31 March, in line with company law allowing accounts to be drawn up to within 7 days of the accounting reference date, and as such all figures are comparable unless specifically stated otherwise. |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents revenue earned under agreements to provide residential care to individuals. Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these agreements. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including any expenses, but excluding value added tax. |
Goodwill |
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life. The group has determined the goodwill acquired related to the fair value of the freehold properties, and as such the goodwill is being written back over 10 years. |
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses. Cost represents purchase price together with any incidental costs of acquisition. |
Freehold land is not depreciated. |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
Impairment of fixed assets |
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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. |
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
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. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group 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 when the group becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset and 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 amounts owed by group undertakings, trade and other 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
Impairment of financial assets |
Financial assets 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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans and loan notes, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the group's contractual obligations are discharged, cancelled, or they expire. |
Equity instruments |
Equity instruments issued by the group are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group. |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Leases |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. |
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
Retirement benefits |
The group operates a defined contribution scheme for the benefit of its employees. The amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments. |
Exceptional items |
Exceptional items are items of income or expense of significant materiality due to their size and/or nature such that they merit separate disclosure in the statement of comprehensive income. |
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. |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The company and group has a robust business plan and has a positive relationship with existing investors. During the prior year, the group successfully refinanced the bank loans and loan notes for a further five years and increased the facilities available to enable the business to focus on future growth. |
The pipeline of referrals, particularly for the transforming care agenda and provision of single occupancy apartments care. will continue to increase for the people the business supports, and the directors assess they are in a strong strategic position to meet this demand. |
Cash is managed on a group wide basis; the company is therefore reliant on its fellow group members. To assist the directors in their assessment of going concern the parent company has provided them with a letter of support. In assessing going concern, management have assessed the future projections of the business for at least 12 months from approval of the financial statements. The directors have reviewed the detailed budgets and forecasts covering the period to 31 March 2026 which models expected trading results, cash flows and the level of facilities the group requires on a month by month basis. The forecasts show that the group has sufficient headroom to meet its liabilities as they fall due. However, the group has breached one of its banking covenants during the year and could breach again in the future. The bank has been and remains supportive, waiving the covenant breaches and has indicated to management that they will continue to do so. |
In considering the forecasts and cashflows for the business, the directors have assessed the level of uncertainty and the contingency plans which would mitigate liquidity risks that the business could face in the forthcoming 12 months. Based on this assessment, and the fact that the bank is expected to continue waving covenant breaches, and the group is willing and able to provide support, the directors consider that the going concern basis remains appropriate. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Fixed asset valuation |
The property fair values measured on acquisition and adopted as deemed cost in the group were subject to a valuation methodology at the time and on an ongoing basis in respect of any impairment reviews. These were prepared on a consistent basis by external experts but involve a degree of assumption in respect of operational earnings and the evaluation of derived market values. The carrying value of property at the reporting date was £8,327,768 (2023: £8,312,121). |
Depreciation |
The assessment of the useful economic lives and the method of depreciating fixed assets requires judgement. Depreciation is charged to the income statement based on the useful economic life selected, which requires an estimation of the period and profile over which the group expects to consume the future economic benefits embodied in the assets. The carrying value of tangible fixed assets at the reporting date was £8,358,863 (2023: £8,723,248), and depreciation charged for the year was £575,665 (2034: £539,613). |
Impairment of goodwill and fixed assets |
Determining whether goodwill and tangible fixed assets are impaired requires an estimation of the value in use of the cash generating units to which these assets have been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. The carrying value at the reporting date of goodwill was £27,910 (2023: £105,083) and of tangible assets was £8,240,589 (2023: £8,723,248). |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
4. | EMPLOYEES AND DIRECTORS |
30.3.24 | 30.3.23 |
£ | £ |
Wages and salaries | 6,582,818 | 5,843,041 |
Social security costs | 619,700 | 557,911 |
Other pension costs | 128,552 | 107,712 |
7,331,070 | 6,508,664 |
The average number of employees during the year was as follows: |
30.3.24 | 30.3.23 |
Care home and support staff | 281 | 285 |
Central administration staff | 19 | 19 |
Directors | 4 | 4 |
In addition to the above are staff settlement costs of £8,925 (2023: £7,615) shown as exceptional costs. |
The directors did not receive any remuneration from the company during the current or prior year, as they are remunerated through the subsidiary company, Creative Care (East Midlands) Limited as per below. |
30.3.24 | 30.3.23 |
£ | £ |
Directors' remuneration | 254,992 | 250,205 |
Directors' pension contributions to money purchase schemes | 10,208 | 9,316 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
30.3.24 | 30.3.23 |
£ | £ |
Emoluments etc | 172,992 | 167,705 |
Pension contributions to money purchase schemes | 8,887 | 7,995 |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging/(crediting): |
30.3.24 | 30.3.23 |
£ | £ |
Hire of plant and machinery | 90,839 | 78,740 |
Other operating leases | 235,075 | 265,944 |
Depreciation - owned assets | 566,329 | 520,663 |
Depreciation - assets on hire purchase contracts | 9,336 | 18,950 |
(Profit)/loss on disposal of fixed assets | (1,223 | ) | 3,845 |
Goodwill amortisation | 77,173 | 77,173 |
Auditors' remuneration | 21,300 | 20,000 |
Auditors' remuneration for non audit work | 5,500 | 5,000 |
Government grants | - | (107,660 | ) |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
5. | OPERATING PROFIT/(LOSS) - continued |
Government grants includes £nil (2023: £12,909) relating to amounts received from the Adult Social Care Infection Control Fund and similar funding initiatives. A further £nil (2023: £94,751) relating to amounts received from local authorities. These funds were utilised to contribute towards incremental costs of staff wages incurred as a result of Covid-19 requirements. |
In addition, the group received £42,752 (2023: £nil) from local authorities which was used to offset the increasing gas & electric prices seen across the economy as a whole. |
6. | EXCEPTIONAL ITEMS |
30.3.24 | 30.3.23 |
£ | £ |
Exceptional items | (13,003 | ) | (7,615 | ) |
The exceptional items for the current years relate to fire proofing of all homes, previous year staff settlement costs. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.3.24 | 30.3.23 |
£ | £ |
Bank loan interest | 302,330 | 196,436 |
Amortisation of finance issue |
costs | 49,717 | 7,568 |
Loan note interest | 327,714 | 304,830 |
Hire purchase | 867 | 783 |
680,628 | 509,617 |
8. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
30.3.24 | 30.3.23 |
£ | £ |
Deferred tax | - | (17,970 | ) |
Tax on loss | - | (17,970 | ) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
30.3.24 | 30.3.23 |
£ | £ |
Loss before tax | (428,779 | ) | (586,779 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
(107,195 |
) |
(111,488 |
) |
Effects of: |
Expenses not deductible for tax purposes | 51,672 | 90,707 |
Income not taxable for tax purposes | (4,256 | ) | - |
Depreciation in excess of capital allowances | 89,410 | 74,496 |
Utilisation of tax losses | (29,631 | ) | - |
Movement in unrecognised deferred tax assets | - | (53,715 | ) |
Effect of deferred tax on fair value uplift | - | (17,970 | ) |
Total tax credit | - | (17,970 | ) |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
8. | TAXATION - continued |
The group has unutilised tax losses of £1,421,344 (2023: £1,443,995) (company of £902,046 (2023: |
£560,295 which can be offset against future tax charges. Deferred tax is not recognised in respect of these tax losses as it is not probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits. |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 31 March 2023 |
and 30 March 2024 | 771,731 |
AMORTISATION |
At 31 March 2023 | 666,648 |
Amortisation for year | 77,173 |
At 30 March 2024 | 743,821 |
NET BOOK VALUE |
At 30 March 2024 | 27,910 |
At 30 March 2023 | 105,083 |
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023. |
The amortisation charge for the year is included within administrative expenses. |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 31 March 2023 | 8,312,121 | 1,058,655 | 176,019 |
Additions | 15,647 | 129,139 | - |
Disposals | - | (140,174 | ) | - |
At 30 March 2024 | 8,327,768 | 1,047,620 | 176,019 |
DEPRECIATION |
At 31 March 2023 | 501,058 | 557,217 | 176,019 |
Charge for year | 195,488 | 212,544 | - |
Eliminated on disposal | - | (140,174 | ) | - |
At 30 March 2024 | 696,546 | 629,587 | 176,019 |
NET BOOK VALUE |
At 30 March 2024 | 7,631,222 | 418,033 | - |
At 30 March 2023 | 7,811,063 | 501,438 | - |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 31 March 2023 | 453,714 | 179,201 | 145,478 | 10,325,188 |
Additions | 52,066 | - | 14,972 | 211,824 |
Disposals | (58,648 | ) | (9,399 | ) | (34,155 | ) | (242,376 | ) |
At 30 March 2024 | 447,132 | 169,802 | 126,295 | 10,294,636 |
DEPRECIATION |
At 31 March 2023 | 214,434 | 71,186 | 82,026 | 1,601,940 |
Charge for year | 101,384 | 37,552 | 28,697 | 575,665 |
Eliminated on disposal | (58,648 | ) | (8,855 | ) | (34,155 | ) | (241,832 | ) |
At 30 March 2024 | 257,170 | 99,883 | 76,568 | 1,935,773 |
NET BOOK VALUE |
At 30 March 2024 | 189,962 | 69,919 | 49,727 | 8,358,863 |
At 30 March 2023 | 239,280 | 108,015 | 63,452 | 8,723,248 |
The value of land included within freehold property above, which is not depreciated, is £1,348,840 (2023: £1,348,840). |
The company had no tangible fixed assets at 31 March 2024 or 30 March 2023. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 31 March 2023 |
and 30 March 2024 | 37,344 |
DEPRECIATION |
At 31 March 2023 | 7,002 |
Charge for year | 9,336 |
At 30 March 2024 | 16,338 |
NET BOOK VALUE |
At 30 March 2024 | 21,006 |
At 30 March 2023 | 30,342 |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 31 March 2023 |
and 30 March 2024 |
NET BOOK VALUE |
At 30 March 2024 |
At 30 March 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Suite 6A The Willows, Ransom Wood Business Park, Southwell Road, Mansfield, Nottinghamshire, NG21 0HJ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Suite 6A The Willows, Ransom Wood Business Park, Southwell Road, Mansfield, Nottinghamshire, NG21 0HJ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Suite 6A The Willows, Ransom Wood Business Park, Southwell Road, Mansfield, Nottinghamshire, NG21 0HJ |
Nature of business: |
% |
Class of shares: | holding |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.3.24 | 30.3.23 | 30.3.24 | 30.3.23 |
£ | £ | £ | £ |
Trade debtors | 154,744 | 228,633 |
Amounts owed by group undertakings | - | - |
Other debtors | 27,758 | 20,459 |
Prepayments and accrued income | 390,959 | 379,981 |
573,461 | 629,073 |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.3.24 | 30.3.23 | 30.3.24 | 30.3.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 529,676 | 532,566 |
Other loans (see note 16) | 8,417,073 | 8,089,359 |
Hire purchase contracts (see note 17) | 9,308 | 9,306 |
Trade creditors | 657,085 | 474,790 |
Social security and other taxes | 175,011 | 512,349 |
Other creditors | 18,054 | 31,638 |
Accruals and deferred income | 432,670 | 365,926 |
10,238,877 | 10,015,934 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
30.3.24 | 30.3.23 |
£ | £ |
Bank loans (see note 16) | 3,154,000 | 3,440,000 |
Hire purchase contracts (see note 17) | 11,746 | 21,055 |
3,165,746 | 3,461,055 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
30.3.24 | 30.3.23 | 30.3.24 | 30.3.23 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 289,676 | 292,566 |
Bank loans | 240,000 | 240,000 |
Other loans | 8,417,073 | 8,089,359 |
8,946,749 | 8,621,925 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 240,000 | 240,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 2,914,000 | 3,200,000 |
The bank overdraft of £289,763 (2023: £332,476) is secured by a fixed and floating charge over the assets of the company and its subsidiary undertakings. . |
The bank loans and loan notes are secured. The loan notes (being other loans) amount due in less than one year relates to capital of £5,820,062 (2023: £5,820,062) and accrued interest of £2,587,074 (2023: £2,259,360). |
The loan notes are subordinated to the bank debt such that they cannot be repaid until the bank debt is repaid, which is not due for repayment fully until December 2026 as set out in in note 18. |
The obligations under finance leases are secured on the assets to which they relate. |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.3.24 | 30.3.23 |
£ | £ |
Net obligations repayable: |
Within one year | 9,308 | 9,306 |
Between one and five years | 11,746 | 21,055 |
21,054 | 30,361 |
Group |
Non-cancellable operating | leases |
30.3.24 | 30.3.23 |
£ | £ |
Within one year | 314,973 | 302,672 |
Between one and five years | 523,265 | 534,925 |
838,238 | 837,597 |
Hire purchase contract payments represent rentals payable by the group for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets.The average lease term is 3 years. All leases are on a fixed repayment basis with interest charged at 4.5% per annum and no arrangements have been entered into for contingent rental payments. |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
30.3.24 | 30.3.23 |
£ | £ |
Bank overdraft | 289,676 | 292,566 |
Bank loans | 3,394,000 | 3,680,000 |
Other loans | 8,417,073 | 8,089,359 |
12,100,749 | 12,061,925 |
Group and company |
The other loans are £5,820,062 (2023: £5,820,062) loan notes that are due to be repaid in a lump sum repayment. Interest is charged at a fixed rate of 4% but was formally waived for the year ended 31 March 2021. Interest has been rolled up on the loan notes, which is repayable on demand of £2,587,074 (2023: £2,259,360). The loan notes are secured by a fixed and floating charge over the assets of the company and it's subsidiary undertakings. |
Group |
Borrowings are denominated and repaid in pounds sterling, have contractual interest rates that are either fixed rates or variable rates linked to LIBOR that are not leveraged, and do not contain conditional returns or repayment provisions other than to protect the lender against credit deterioration or changes in relevant legislation or taxation. |
In December 2021 the group refinanced its existing loans, that were in place at 30 March 2021, totalling |
£3,562,776 into a single loan. The new loan of £4.58m is repayable in 20 quarterly instalments and a lump sum repayment in December 2026. Interest is charged at LIBOR plus 3.5%. The loan is secured by a fixed and floating charge over the assets of the group. |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
19. | PROVISIONS FOR LIABILITIES |
Group |
30.3.24 | 30.3.23 |
£ | £ |
Deferred tax | 636,046 | 636,046 |
Group |
Deferred |
tax |
£ |
Balance at 31 March 2023 | 636,046 |
Balance at 30 March 2024 | 636,046 |
The deferred tax liability set out above relates to the effect of a fair value adjustment on acquisition of the properties of the group. |
The company has no deferred tax assets or liabilities. |
20. | CALLED UP SHARE CAPITAL |
Group and Company |
2024 | 2023 | 2024 | 2023 |
Number | Number | £ | £ |
Ordinary share capitalIssued and fully paid |
Ordinary A of 0.25p each | 6,400 | 6,400 | 16.0000 | 16.0000 |
Ordinary B of 0.25p each | 1,600 | 1,600 | 4.0000 | 4.0000 |
Ordinary C of 0.25p each | 1,950 | 1,950 | 4.8750 | 4.8750 |
Ordinary D of 0.025p each | 1,950 | 1,950 | 0.4875 | 0.4875 |
Ordinary E of 0.25p each | 50 | 50 | 0.1250 | 0.1250 |
11,950 | 11,950 | 25.4875 | 25.4875 |
The company's ordinary A, B, C and E shares rank pari passu in respect of dividend rights and on return of capital. The ordinary A and B shares rank pari passu in respect of voting rights, and the ordinary C and E shares have full voting rights but these rights can be restricted in certain circumstances. |
The company's ordinary D shares carry no dividend or voting rights, but entitle the holder to a return of their subscription price paid for the shares on a return of capital. |
All company shares are non-redeemable. |
21. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |
The charge to the profit or loss in the year end respect of defined contribution schemes was £128,552 (2023: £107,712). |
At the year end contribution outstanding to the fund was £25,543 (2023: £25,139). |
22. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
30.3.24 | 30.3.23 |
£ | £ |
Management fees | 48,000 | 40,000 |
Amount due to related party | 8,417,073 | 8,089,359 |
CREATIVE CARE OPTIONS LIMITED (REGISTERED NUMBER: 08983297) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
22. | RELATED PARTY DISCLOSURES - continued |
During the year, a total of key management personnel compensation of £ 297,598 (2023 - £ 314,552 ) was paid. |
23. | CONTROLLING PARTY |
The company is controlled by Spring Ventures LLP by virtue of their majority shareholding in the voting share capital of the company. |
The ultimate controlling party is P W Hallett by virtue of his control of Spring Ventures LLP. |