FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
FOR |
CREATIVE CARE (EAST MIDLANDS) LIMITED |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
FOR |
CREATIVE CARE (EAST MIDLANDS) LIMITED |
CREATIVE CARE (EAST MIDLANDS) LIMITED (REGISTERED NUMBER: 05522412) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 30 March 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
CREATIVE CARE (EAST MIDLANDS) 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 (EAST MIDLANDS) LIMITED (REGISTERED NUMBER: 05522412) |
BALANCE SHEET |
30 March 2024 |
30.3.24 | 30.3.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 7 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
CREATIVE CARE (EAST MIDLANDS) LIMITED (REGISTERED NUMBER: 05522412) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 30 March 2024 |
1. | STATUTORY INFORMATION |
Creative Care (East Midlands) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Reporting period |
The company's accounting reference date is 30 March, however the company has 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. |
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. |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses. |
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 end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
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 (EAST MIDLANDS) LIMITED (REGISTERED NUMBER: 05522412) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include 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. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including amounts owed to group undertakings, trade and other creditors, 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. |
Equity instruments |
Equity instruments issued by the company 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 company. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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. |
CREATIVE CARE (EAST MIDLANDS) LIMITED (REGISTERED NUMBER: 05522412) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Hire purchase and leasing commitments |
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 leases asset are consumed. |
Retirement benefits |
For defined contribution schemes 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 (EAST MIDLANDS) LIMITED (REGISTERED NUMBER: 05522412) |
NOTES TO THE 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 come close to breaching one of its banking covenants and could breach in the future. The bank has been and remains supportive, historically 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. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 31 March 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 30 March 2024 |
DEPRECIATION |
At 31 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 30 March 2024 |
NET BOOK VALUE |
At 30 March 2024 |
At 30 March 2023 |
CREATIVE CARE (EAST MIDLANDS) LIMITED (REGISTERED NUMBER: 05522412) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
4. | TANGIBLE FIXED ASSETS - continued |
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 |
DEPRECIATION |
At 31 March 2023 |
Charge for year |
At 30 March 2024 |
NET BOOK VALUE |
At 30 March 2024 |
At 30 March 2023 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.3.24 | 30.3.23 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.3.24 | 30.3.23 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts (see note 8) |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.3.24 | 30.3.23 |
£ | £ |
Hire purchase contracts (see note 8) |
CREATIVE CARE (EAST MIDLANDS) LIMITED (REGISTERED NUMBER: 05522412) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
8. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.3.24 | 30.3.23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
30.3.24 | 30.3.23 |
£ | £ |
Within one year |
Between one and five years |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.3.24 | 30.3.23 |
£ | £ |
Bank overdrafts |
The bank overdraft of £289,763 (2023: £332,473) is secured by a fixed and floating charge over the assets of the company and it's parent undertaking. |
10. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.3.24 | 30.3.23 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
12. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |
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). |
CREATIVE CARE (EAST MIDLANDS) LIMITED (REGISTERED NUMBER: 05522412) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 March 2024 |
13. | FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES |
The company is part of a cross party guarantee in relation to loan notes issued to Creative Care Options Limited, its ultimate parent undertaking, by virtue of a fixed and floating charge over the assets of the company. At the year end the liability in relation to these loan notes was £8,417,073 including £2,587,074 of accrued interest. |
The company is also part of a cross party guarantee in relation to bank loans issued to Creative Care (East Midlands) Holdings Limited, its immediate parent undertaking, by virtue of a fixed and floating charge over the assets of the company. At the year end the liability in relation to these loans was £3,394,000 (2023: £3,680,000). |
14. | RELATED PARTY DISCLOSURES |
In the year, Creative Care East Midlands Limited paid rent of £90,866 (2023: £84,213) to GDN House Propco Ltd, a company in which John Hudson is a director. |
15. | PARENT COMPANY |
The immediate parent company is Creative Care (East Midlands) Holdings Limited, and the ultimate parent undertaking is Creative Care Options Limited. Both companies are registered in England and Wales. |
Copies of the financial statements of Creative Care Options Limited, the smallest and largest group which include the results of the company, are available from Companies House. The registered office of Creative Care Options Limited is Suite 6A The Willows, Ransom Wood Business Park, Southwell Road, Mansfield, Nottinghamshire NG21 0HJ. |
The company is controlled by Spring Ventures LLP by virtue of their majority shareholding in the ultimate parent undertaking. |
The ultimate controlling party is P W Hallett by virtue of his control of Spring Ventures LLP. |