Key Healthcare (Operations) Limited 04321969 false 2022-10-01 2023-03-31 2023-03-31 The principal activity of the company is the running of nursing homes for the elderly. Digita Accounts Production Advanced 6.30.9574.0 true true 04321969 2022-10-01 2023-03-31 04321969 2023-03-31 04321969 core:CurrentFinancialInstruments 2023-03-31 04321969 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 04321969 core:Non-currentFinancialInstruments 2023-03-31 04321969 core:Non-currentFinancialInstruments core:AfterOneYear 2023-03-31 04321969 core:FurnitureFittingsToolsEquipment 2023-03-31 04321969 core:LandBuildings 2023-03-31 04321969 bus:SmallEntities 2022-10-01 2023-03-31 04321969 bus:AuditExemptWithAccountantsReport 2022-10-01 2023-03-31 04321969 bus:FullAccounts 2022-10-01 2023-03-31 04321969 bus:SmallCompaniesRegimeForAccounts 2022-10-01 2023-03-31 04321969 bus:RegisteredOffice 2022-10-01 2023-03-31 04321969 bus:CompanySecretary1 2022-10-01 2023-03-31 04321969 bus:Director2 2022-10-01 2023-03-31 04321969 bus:PrivateLimitedCompanyLtd 2022-10-01 2023-03-31 04321969 bus:Agent3 2022-10-01 2023-03-31 04321969 core:FurnitureFittingsToolsEquipment 2022-10-01 2023-03-31 04321969 core:LandBuildings 2022-10-01 2023-03-31 04321969 core:PlantMachinery 2022-10-01 2023-03-31 04321969 countries:EnglandWales 2022-10-01 2023-03-31 04321969 2022-09-30 04321969 core:FurnitureFittingsToolsEquipment 2022-09-30 04321969 core:LandBuildings 2022-09-30 04321969 2021-10-01 2022-09-30 04321969 2022-09-30 04321969 core:CurrentFinancialInstruments 2022-09-30 04321969 core:CurrentFinancialInstruments core:WithinOneYear 2022-09-30 04321969 core:Non-currentFinancialInstruments 2022-09-30 04321969 core:Non-currentFinancialInstruments core:AfterOneYear 2022-09-30 04321969 core:FurnitureFittingsToolsEquipment 2022-09-30 04321969 core:LandBuildings 2022-09-30 iso4217:GBP xbrli:pure

Registration number: 04321969

Prepared for the registrar

Key Healthcare (Operations) Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 October 2022 to 31 March 2023

 

Key Healthcare (Operations) Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 8

 

Key Healthcare (Operations) Limited

Company Information

Director

R D Keyes

Company secretary

E J Keyes

Registered office

Colton Lodge
Colton Lane
Colton
Tadcaster
LS24 8EL

Bankers

HSBC UK Bank plc
PO Box 105
33 Park Row
Leeds
LS1 1LD

 

Key Healthcare (Operations) Limited

(Registration number: 04321969)
Balance Sheet as at 31 March 2023

Note

30 March 2023
£

(As restated)
30 September 2022
£

Fixed assets

 

Tangible assets

4

3,026,378

2,502,635

Current assets

 

Stocks

6,435

6,435

Debtors

5

1,332,378

1,451,690

Cash at bank and in hand

 

13,888

557,294

 

1,352,701

2,015,419

Creditors: Amounts falling due within one year

6

(7,169,162)

(1,576,828)

Net current (liabilities)/assets

 

(5,816,461)

438,591

Total assets less current liabilities

 

(2,790,083)

2,941,226

Creditors: Amounts falling due after more than one year

6

-

(5,129,795)

Deferred tax liabilities

 

(146,168)

(199,556)

Net liabilities

 

(2,936,251)

(2,388,125)

Capital and reserves

 

Called up share capital

1

1

Profit and loss account

(2,936,252)

(2,388,126)

Shareholders' deficit

 

(2,936,251)

(2,388,125)

For the financial period ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 13 September 2024
 


R D Keyes
Director

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Period from 1 October 2022 to 31 March 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Colton Lodge
Colton Lane
Colton
Tadcaster
LS24 8EL

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Prior period errors

During the period, the director became aware that the carrying value of the properties at the previous balance sheet date did not represent the recoverable amounts of these assets as at that date and that the value should have been impaired. As such, a reversal of the prior period revaluation has been processed in respect of the freehold properties, representing the anticipated recoverable value which should have been recorded at that date. The excess impairment has been processed as an impairment through the profit and loss account, which should have been recorded at that date The adjustments and the impact on the current and comparative periods results in these financial statements are summarised below:

 

Relating to the current period disclosed in these financial statements
£

Relating to the prior period disclosed in these financial statements
£

Relating to periods before the prior period disclosed in these financial statements
£

Decrease in fixed assets

-

5,065,931

-

Decrease in revaluation reserve

-

250,767

-

Impairment recorded in the profit and loss account

-

4,815,164

-

    

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Period from 1 October 2022 to 31 March 2023

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

These financial statements do not contain any significant judgements or estimation uncertainty.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover represents the amounts receivable during the year for the provision of care services. Where the amount received relates to a period which covers the balance sheet date, that amount is apportioned over the period to which it relates.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets is stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

Nil

Furniture, fittings and equipment

15% straight line

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Period from 1 October 2022 to 31 March 2023

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due.

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Period from 1 October 2022 to 31 March 2023

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.


 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Period from 1 October 2022 to 31 March 2023

 

3

Staff numbers

The average number of persons employed by the company (including the director) during the period, was as follows:

1 October 2022 to 31 March 2023
 No.

Year ended 30 September 2022
 No.

Average number of employees

171

171

 

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost

At 1 October 2022 (As restated)

2,300,000

1,353,928

3,653,928

Additions

509,117

46,597

555,714

At 31 March 2023

2,809,117

1,400,525

4,209,642

Depreciation

At 1 October 2022 (As restated)

-

1,151,293

1,151,293

Charge for the year

-

31,971

31,971

At 31 March 2023

-

1,183,264

1,183,264

Carrying amount

At 31 March 2023

2,809,117

217,261

3,026,378

At 30 September 2022 (As restated)

2,300,000

202,635

2,502,635

Included within the net book value of land and buildings above is £2,809,117 (2022 - £2,300,000) in respect of freehold land and buildings.

The company restated the opening cost of land and buildings to £2,300,000 to reflect a perceived impairment to the market value as at that date. Further details of the prior year adjustment impact are disclosed in note 2 of these financial statements.
 

 

5

Debtors

31 March 2023
 £

30 September 2022
 £

Trade debtors

-

175,623

Amounts owed by related parties

300,794

177,170

Other debtors

868,180

837,150

Prepayments

29,052

28,057

Accrued income

134,352

233,690

 

1,332,378

1,451,690

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Period from 1 October 2022 to 31 March 2023

 

6

Creditors

Note

31 March 2023
 £

30 September 2022
 £

Due within one year

 

Loans and borrowings

7

5,902,794

346,482

Trade creditors

 

306,966

190,166

Social security and other taxes

 

197,544

91,963

Other creditors

 

302,357

601,606

Accrued expenses

 

344,399

152,894

Corporation tax liability

115,102

193,717

 

7,169,162

1,576,828

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

7

-

5,129,795

 

7

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

5,574,098

346,482

Bank overdrafts

328,696

-

5,902,794

346,482

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

-

5,129,795

 

8

Parent and ultimate parent undertaking

The ultimate controlling party is R D Keyes, the director of the company.

 

9

Disclosure under Section 444(5B) CA 2006

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. These accounts are unaudited