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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 MARCH 2024

FOR

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 30 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED

COMPANY INFORMATION
for the year ended 30 March 2024







DIRECTORS: B M Blackburn
I T Coldrick





SECRETARY: I T Coldrick





REGISTERED OFFICE: Suite 6A The Willows
Ransom Wood Business Park
Southwell Road
Mansfield
Nottinghamshire
NG21 0HJ





REGISTERED NUMBER: 08098223 (England and Wales)





AUDITORS: Hewitt Card Limited
Statutory Auditors
70-72 Nottingham Road
Mansfield
Nottinghamshire
NG18 1BN

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

STRATEGIC REPORT
for the year ended 30 March 2024

The directors present their strategic report for the year ended 30 March 2024.

REVIEW OF BUSINESS AND KEY PERFORMANCE INDICATORS
Creative Care (East Midlands) Holdings Limited is part of the Creative Care Options Limited Group and acts as an intermediary holding company and owns all the freehold property used by the group. The business operates a portfolio of ten homes, providing accommodation for 67 supported individuals with autistic spectrum disorders (ASD), severe learning disabilities with associated behavioural problems, or mental health conditions.

During the year, the company achieved a loss after taxation of £35k (2023: profit of £20k), with net assets as at 31 March 2024 of £1.39m compared to £1.43m in the previous year, representing a decrease of £0.04m.

The Creative Care Options Limited Group reported a turnover of £10.7m (2023: £9.3m) and an operating profit before depreciation, amortisation, exceptional items, interest, and bank charges of £931k (2023: £564k) for the year ended 31 March 2024.

The company achieved an impressive 98.4% occupancy rate by optimizing its staffing model, a strategic initiative aimed at enhancing care quality while maintaining operational efficiency.

To ensure the highest standards of service, key performance indicators (KPIs) such as staff retention rates, occupancy levels, and care quality scores are rigorously monitored. These KPIs, along with comprehensive audits, are reviewed monthly by the board and Non-Executive Directors (NED) to guide strategic decision-making.

Moreover, the company's rigorous recruitment process and robust retention strategy have resulted in a 35% reduction in staff turnover. Management recognises the dedication required to deliver exceptional care and has cultivated a supportive organisational culture, reflected in improved staff benefits, communication, and cultural initiatives. This has led to an outstanding staff engagement rate of 87%.

PRINCIPAL RISKS AND UNCERTAINTIES
The primary objective of the group is to deliver high-quality care through a skilled and stable workforce. Despite challenges, such as the reliance on agency staff, the company has successfully reduced this dependency to just 3.2% by implementing effective recruitment strategies to meet its staffing needs.

The company faced difficulties in securing additional funding for growth during the year but remains focused on expanding into supported living plus and residential single-occupancy apartments to meet local demand from commissioners. This expansion includes developing a property previously acquired for supported living.

To enhance management oversight, the company continues to digitalise its operations by implementing electronic audit risk management tools and electronic care records. Additionally, it is in the process of rolling out an electronic rostering and attendance system for payroll.

FINANCIAL RISK MANAGEMENT
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.

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.

The company adopts a risk-averse position concerning changes in interest rates. Its borrowings consist of bank loans with fixed interest rates of 3.5%, subject only to changes in the Bank of England's Base Rate. Additionally, the loan notes incur a fixed rate of interest at 4%. As a result, the group's interest rate risk is limited to changes in the Base Rate on its bank loan facilities.


CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

STRATEGIC REPORT
for the year ended 30 March 2024

GOING CONCERN
The group has bank loans and loan notes secured until 2026 and the option to increasing the available facilities to support future growth. The operational running and performance of the business were impacted by inflationary increases, utility cost hikes, and staff turnover. However, the group is strategically positioned to meet the strong demand for referrals, particularly in the transforming care agenda and provision of single occupancy apartments, through the development of new services.

The directors have prepared financial forecasts for a period exceeding 12 months, considering current trading conditions, the impact of inflation, and future growth plans. Based on this analysis, they are satisfied that the going concern basis of preparation is appropriate.

FUTURE DEVELOPMENTS
In the short to medium term, the strategy is to continue expanding Creative Care's existing services within Nottinghamshire and neighbouring areas. We are working closely with local authorities and Integrated Care Systems (ICS) commissioners to develop services in partnership that align with the transforming care agenda. Consequently, any additional capacity created has been swiftly utilised to meet the growing demand for single-occupancy apartments.
Long-term, the focus will shift to identifying opportunities and securing funding for growth beyond our current geographical reach, enabling the expansion of the group in both Residential and Supported Living.

ON BEHALF OF THE BOARD:





I T Coldrick - Director


13 September 2024

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

REPORT OF THE DIRECTORS
for the year ended 30 March 2024

The directors present their report with the financial statements of the company for the year ended 30 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of acting as a holding company and property rental.

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.

B M Blackburn
I T Coldrick

ACCOUNTING REFERENCE DATE
The company's accounting reference date is 30 March. The company draws up its 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.

STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company'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.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company'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 company's auditors are aware of that information.

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

REPORT OF THE DIRECTORS
for the year ended 30 March 2024


AUDITORS
The auditors, Hewitt Card Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





I T Coldrick - Director


13 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED

Opinion
We have audited the financial statements of Creative Care (East Midlands) Holdings Limited (the 'company') for the year ended 30 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 30 March 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED


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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 (EAST MIDLANDS) HOLDINGS
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.




Mr James Timothy Card FCCA (Senior Statutory Auditor)
for and on behalf of Hewitt Card Limited
Statutory Auditors
70-72 Nottingham Road
Mansfield
Nottinghamshire
NG18 1BN

16 September 2024

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

STATEMENT OF COMPREHENSIVE
INCOME
for the year ended 30 March 2024

30.3.24 30.3.23
Notes £    £   

TURNOVER - -

Administrative expenses 127,861 104,730
(127,861 ) (104,730 )

Other operating income 444,672 329,040
OPERATING PROFIT 4 316,811 224,310


Interest payable and similar expenses 5 352,047 204,004
(LOSS)/PROFIT BEFORE TAXATION (35,236 ) 20,306

Tax on (loss)/profit 6 - -
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (35,236 ) 20,306

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

(35,236

)

20,306

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

BALANCE SHEET
30 March 2024

30.3.24 30.3.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 4,332,791 4,440,753
Investments 8 2,477,813 2,477,813
6,810,604 6,918,566

CURRENT ASSETS
Debtors 9 148,074 194,198
Cash at bank 87 39,909
148,161 234,107
CREDITORS
Amounts falling due within one year 10 2,410,307 2,282,979
NET CURRENT LIABILITIES (2,262,146 ) (2,048,872 )
TOTAL ASSETS LESS CURRENT LIABILITIES 4,548,458 4,869,694

CREDITORS
Amounts falling due after more than one year 11 3,154,000 3,440,000
NET ASSETS 1,394,458 1,429,694

CAPITAL AND RESERVES
Called up share capital 13 1,180,000 1,180,000
Retained earnings 214,458 249,694
SHAREHOLDERS' FUNDS 1,394,458 1,429,694

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 (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

STATEMENT OF CHANGES IN EQUITY
for the year ended 30 March 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 31 March 2022 1,180,000 229,388 1,409,388

Changes in equity
Total comprehensive income - 20,306 20,306
Balance at 30 March 2023 1,180,000 249,694 1,429,694

Changes in equity
Total comprehensive income - (35,236 ) (35,236 )
Balance at 30 March 2024 1,180,000 214,458 1,394,458

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 March 2024

1. STATUTORY INFORMATION

Creative Care (East Midlands) Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 33 'Related Party Disclosures' - Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Creative Care Options Limited. These consolidated financial statements are available from Companies House.

Preparation of consolidated financial statements
The financial statements contain information about Creative Care (East Midlands) Holdings Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Creative Care Options Limited, Suite 6A The Willows, Ransom Wood Business Park, Southwell Road, Mansfield, Nottinghamshire NG21 0HJ.

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 March 2024

2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
In the application of the company'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:

Impairment of fixed assets
Determining whether 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 of tangible fixed assets at the balance sheet date was £4,214,517 (2023: £4,440,753).

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 company expects to consume the future economic benefits embodied in the assets. Depreciation charged for the year was £241,883 (2023: £99,220).

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 March 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 25% on cost and 2% on cost
Plant and machinery - 25% on reducing balance

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 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. Any 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) prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Investments in subsidiaries
Investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

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 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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 other creditors, bank loans, and amounts owed to group undertakings, 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 company's contractual obligations are discharged, cancelled, or they expire.

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.


CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

NOTES TO THE 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 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.

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. EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 30 March 2024 nor for the year ended 30 March 2023.

The average number of employees during the year was as follows:
30.3.24 30.3.23

Directors 2 2

The directors did not receive any remuneration from the company during the current or prior year. In total, the directors received remuneration from subsidiary companies of £287,631 (2023: £283,481) and company pension contributions to money purchase schemes of £10,208 (2023: £9,316) were paid.

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 March 2024

3. EMPLOYEES AND DIRECTORS - continued

30.3.24 30.3.23
£    £   
Directors' remuneration - -

4. OPERATING PROFIT

The operating profit is stated after charging:

30.3.24 30.3.23
£    £   
Depreciation - owned assets 123,609 99,220

The audit fees of the company have been borne by its subsidiary, Creative Care (East Midlands) Limited.

5. 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
352,047 204,004

6. TAXATION

Analysis of the tax charge
No liability to UK corporation tax arose for the year ended 30 March 2024 nor for the year ended 30 March 2023.

Reconciliation of total tax charge 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)/profit before tax (35,236 ) 20,306
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

(8,809

)

3,858

Effects of:
Expenses not deductible for tax purposes 725 801
Depreciation in excess of capital allowances 28,545 13,268
deferred tax assets
Group relief (20,461 ) (17,927 )
Total tax charge - -

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 March 2024

7. TANGIBLE FIXED ASSETS
Freehold Plant and
property machinery Totals
£    £    £   
COST
At 31 March 2023 4,798,053 176,019 4,974,072
Additions 15,647 - 15,647
At 30 March 2024 4,813,700 176,019 4,989,719
DEPRECIATION
At 31 March 2023 357,300 176,019 533,319
Charge for year 123,609 - 123,609
At 30 March 2024 480,909 176,019 656,928
NET BOOK VALUE
At 30 March 2024 4,332,791 - 4,332,791
At 30 March 2023 4,440,753 - 4,440,753

Included in cost of land and buildings is freehold land of £ 975,014 (2023 - £ 975,014 ) which is not depreciated.

All freehold property above is rented to a group company.

8. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 31 March 2023
and 30 March 2024 2,477,813
NET BOOK VALUE
At 30 March 2024 2,477,813
At 30 March 2023 2,477,813

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

Creative Care (East Midlands) Limited
Registered office: Suite 6A The Willows, Ransom Wood Business Park, Southwell Road, Southwell Road, Mansfield, Nottinghamshire, NG21 0HJ
Nature of business: Provision of residential care
%
Class of shares: holding
Ordinary 100.00

Notts Outreach Limited
Registered office: As above
Nature of business: Dormant company
%
Class of shares: holding
Ordinary 100.00

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 March 2024

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.3.24 30.3.23
£    £   
Prepayments and accrued income 148,074 194,198

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.3.24 30.3.23
£    £   
Bank loans and overdrafts (see note 12) 240,000 240,000
Amounts owed to group undertakings 2,166,200 2,036,660
Accruals and deferred income 4,107 6,319
2,410,307 2,282,979

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
30.3.24 30.3.23
£    £   
Bank loans (see note 12) 3,154,000 3,440,000

12. LOANS

An analysis of the maturity of loans is given below:

30.3.24 30.3.23
£    £   
Amounts falling due within one year or on demand:
Bank loans 240,000 240,000

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

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 company refinanced its existing loans, that were in place at 30 March 2021, totalling £3,562,776 into a single loan. The loan is repayable in 20 quarterly instalments and a lump sum repayment in December 2026. Interest is charged at LIBOR plus 3.5%. Repayments for £980k of the loans are interest free for the first year. The loan is secured by a fixed and floating charge over the assets of the company and it's subsidiary undertakings, plus a cross party guarantee from all group companies.

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.3.24 30.3.23
value: £    £   
1,180,000 Ordinary £1 1,180,000 1,180,000

The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.

CREATIVE CARE (EAST MIDLANDS) HOLDINGS
LIMITED (REGISTERED NUMBER: 08098223)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 March 2024

14. 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 £2,522,011 of accrued interest.

15. ULTIMATE CONTROLLING PARTY

The immediate and ultimate parent undertaking is Creative Care Options Limited, a company 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.