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Registered number: SC096630










ADVANCED SPECIALIST CARE LIMITED
DIRECTOR'S REPORT AND FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

 
ADVANCED SPECIALIST CARE LIMITED
 

COMPANY INFORMATION


Directors
Mr A R Banks (resigned 9 March 2023)
Mrs J Kerr (resigned 1 February 2023)
Mr L Baten (resigned 13 August 2024)
Mr P A Cott 




Registered number
SC096630



Registered office
Balhousie Care Group
Earn House

Lamberkine Drive

Perth

PH1 1RA




Independent auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

14 City Quay

Dundee

DD1 3JA





 
ADVANCED SPECIALIST CARE LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Director's Report
3 - 4
Independent Auditors' Report
5 - 7
Statement of Comprehensive Income
8
Statement of Financial Position
9
Statement of Changes in Equity
10
Analysis of Net Debt
11
Notes to the Financial Statements
12 - 23

 
ADVANCED SPECIALIST CARE LIMITED
 

STRATEGIC REPORT
For the Year Ended 30 September 2023

Introduction
 
The director, in preparing this strategic report, has complied with s414C of the Companies Act 2006.
Principal activity
The principal activity of the Company is the provision of care services including residential care for adults with learning disabilities, nursing care for elderly, dementia care, palliative care and Huntington’s care.
The Company is a wholly owned subsidiary of Balhousie Holdings Limited ("The Group").

Results

The Company recorded a profit before tax of £2,805k (2022: £2,933k).
 
A more detailed analysis of the performance of the Company is provided in the Business Review below.

Business review
 
The Company has experienced a 2.8% increase in turnover from 2022, largely reflecting increased fee rates. Recruitment and retention of staff remain critical to the delivery of quality care, and the care sector as a whole continues to face challenges attracting and retaining high quality staff.  The use of agency staff and increases to staff wages has put pressure on margins. Steps to mitigate agency use were implemented within the year and this has resulted in agency costs decreasing against 2022. Administration costs are closely monitored, however, our utility contract ended in September 2022 and our new contract saw a significant increase in cost across our homes.   

Financial key performance indicators
 
The Group has assessed their KPIs as:
Occupancy Rates
Average Fee Income per bed
Care Quality Grades
EBITDA % of Turnover
Wages & Salaries % of Income
Staff Turnover

In relation to KPIs, the Group is performing at or above regional sector averages when benchmarked to the sector.

Page 1

 
ADVANCED SPECIALIST CARE LIMITED
 

STRATEGIC REPORT (CONTINUED)
For the Year Ended 30 September 2023

Principal risks and uncertainties
 
The directors are responsible for risk assessment and management within the Group. The main risks associated with the Group’s financial assets and liabilities are set out below: 
Financial Risks
As part of the acquisition by Selba Care Limited, the Balhousie Care Limited and Advanced Specialist Care Limited bank debt was repaid in its entirety. 
This was replaced by a group liability for the financial liabilities of the parent company. The parent company has a single investment in the Balhousie Group.  The senior / junior lenders have first / second ranked security over the assets. 
Credit risk is managed by invoicing private residents in advance and ensuring that all sales invoices are raised timeously. Appropriate credit control procedures are followed for all operations. Credit risk is also reduced by being in the advantageous position of having a significant level of income generated through local government across a variety of local authorities.  
Operational risks
The Group’s services are regulated by the Care Inspectorate which has significant enforcement powers against operators who do not comply with statutory requirements. Operational risk is managed by care home managers and the Group’s Operational Support Team. This is monitored internally by management, internal quality controls and externally by regular unannounced inspections by the Care Inspectorate. 
Corporate governance
The Group operates Care Governance and Audit & Remuneration Committees that provide oversight on key care quality, remuneration and audit issues impacting on the business.


This report was approved by the board on 17 September 2024 and signed on its behalf.



Mr P A Cott
Director
Page 2

 
ADVANCED SPECIALIST CARE LIMITED
 

 
DIRECTOR'S REPORT
For the Year Ended 30 September 2023

The director presents his report and the financial statements for the year ended 30 September 2023.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,781k (2022 - £2,249k).

A dividend of £1,481k was paid during the year to Balhousie Holdings Limited (2021: £400k)

Directors

The directors who served during the year were:

Mr A R Banks (appointed 14 January 2005, resigned 9 March 2023)
Mrs J Kerr (appointed 12 September 2019, resigned 1 February 2023)
Mr L Baten (appointed 23 September 2022, resigned 13 August 2024)
Mr P A Cott 

Future developments

The Group is undertaking a program of investment in their current facilities to future proof them. Thereafter looking at growth opportunities within their current geographical area of operations.
Page 3

 
ADVANCED SPECIALIST CARE LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
For the Year Ended 30 September 2023


Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsSumer Auditco Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 17 September 2024 and signed on its behalf.
 





Mr P A Cott
Director
Page 4

 
ADVANCED SPECIALIST CARE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADVANCED SPECIALIST CARE LIMITED
 

Opinion


We have audited the financial statements of Advanced Specialist Care Limited (the 'Company') for the year ended 30 September 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 September 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Material uncertainty related to going concern


We draw attention to note 2.3 in the financial statements, which indicates that there is a material uncertainty relating to going concern due to the continued breaches of loan covenants in the Group. The Group relies on these loans to allow them to continue to operate. As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.


In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the director's assessment of the Group's ability to continue to adopt the going concern basis of accounting included consideration of post year end trading, and the director's proposed solution to resolve the covenant breaches.


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


Page 5

 
ADVANCED SPECIALIST CARE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADVANCED SPECIALIST CARE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report 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 Director's Report.


We have nothing to report in respect of the following matters in relation to which 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 director's 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 Director's Responsibilities Statement set out on page 3, the director is 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 director determines is 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
ADVANCED SPECIALIST CARE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADVANCED SPECIALIST CARE LIMITED (CONTINUED)


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 an Auditors' Report 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 Auditors' Report.


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 2006Our 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 an Auditors' Report 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.





Douglas Rae (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants & Statutory Auditors
  
14 City Quay
Dundee
DD1 3JA

20 September 2024
Page 7

 
ADVANCED SPECIALIST CARE LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
For the Year Ended 30 September 2023

2023
2022
£000
£000

  

Turnover
 4 
12,429
12,093

Cost of sales
  
(7,472)
(6,575)

Gross profit
  
4,957
5,518

Administrative expenses
  
(2,126)
(1,860)

Exceptional administrative expenses
  
(29)
(321)

Operating profit
 5 
2,802
3,337

Interest receivable and similar income
 8 
3
1

Interest payable and similar expenses
 9 
-
(405)

Profit before tax
  
2,805
2,933

Tax on profit
 10 
(24)
(684)

Profit for the financial year
  
2,781
2,249

Other comprehensive income for the year
  

Unrealised surplus on revaluation of tangible fixed assets
  
-
7,736

Deferred tax on revaluation
  
-
(2,681)

Other comprehensive income for the year
  
-
5,055

Total comprehensive income for the year
  
2,781
7,304

The notes on pages 12 to 23 form part of these financial statements.
Page 8

 
ADVANCED SPECIALIST CARE LIMITED
Registered number: SC096630

STATEMENT OF FINANCIAL POSITION
As at 30 September 2023

2023
2022
£000
£000

Fixed assets
  

Tangible fixed assets
  
30,775
30,726

  
30,775
30,726

Current assets
  

Stocks
 14 
7
5

Debtors: amounts falling due within one year
 15 
1,676
938

Cash at bank and in hand
  
388
806

  
2,071
1,749

Creditors: amounts falling due within one year
 16 
(2,562)
(2,732)

Net current liabilities
  
 
 
(491)
 
 
(983)

Total assets less current liabilities
  
30,284
29,743

Provisions for liabilities
  

Deferred tax
 18 
(4,645)
(4,621)

  
 
 
(4,645)
 
 
(4,621)

Net assets
  
25,639
25,122


Capital and reserves
  

Called up share capital 
 19 
50
50

Revaluation reserve
 20 
11,954
11,954

Profit and loss account
 20 
13,635
13,118

  
25,639
25,122


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 September 2024.




Mr P A Cott
Director

The notes on pages 12 to 23 form part of these financial statements.
Page 9

 
ADVANCED SPECIALIST CARE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 September 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 October 2021
50
6,899
11,269
18,218


Comprehensive income for the year

Profit for the year
-
-
2,249
2,249

Surplus on revaluation of freehold property
-
7,736
-
7,736

Deferred tax on revalued properties
-
(2,681)
-
(2,681)

Dividends: Equity capital
-
-
(400)
(400)



At 1 October 2022
50
11,954
13,118
25,122


Comprehensive income for the year

Profit for the year
-
-
2,781
2,781

Dividends: Equity capital
-
-
(2,264)
(2,264)


At 30 September 2023
50
11,954
13,635
25,639


The notes on pages 12 to 23 form part of these financial statements.
Page 10

 
ADVANCED SPECIALIST CARE LIMITED
 

ANALYSIS OF NET DEBT
For the Year Ended 30 September 2023




At 1 October 2022
Cash flows
At 30 September 2023
£000

£000

£000

Cash at bank and in hand

806

(418)

388

Debt due within 1 year

(18)

(8)

(26)


788
(426)
362

The notes on pages 12 to 23 form part of these financial statements.
Page 11

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

1.


General information

Advanced Specialist Care Limited is a limited company incorporated in Scotland. The registered office is
located at Earn House, Lamberkine Drive, Perth, PH1 1RA.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The functional and presentational currency of the Company is GBP sterling (£). The balances
reported in the financial statements have been rounded to the nearest thousand.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Financial reporting standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these
financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in
the UK and Republic of Ireland".
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Balhousie Holdings Limited and Selba Ventures Ltd as at 30 September 2023 and these financial statements may be obtained from Companies House

 
2.3

Going concern

Due to continued breaches of loan covenants in Group companies, the director acknowledges the material uncertainty regarding the going concern of the Group. At the date of signing the financial statements, despite not having a confirmed agreement in place, the director has a proposed solution and is confident that this will be agreed and resolve the current covenant breaches going forward. 
Page 12

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

2.Accounting policies (continued)

  
2.4

Turnover

Turnover represents fee income receivable from care services provided. Turnover is recognised in
the year in which the Company obtains the right to consideration as the services provided under
contracts have been delivered and is recorded at the value of the consideration due. Where
payments are received from customers in advance of services provided, the amounts are recorded
as deferred income and included as part of the Creditors due within one year. Turnover is measured
as the fair value of the consideration received or receivable, excluding discounts, rebates, value
added tax and other sales taxes.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

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

The current income 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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property
-
Not depreciated
Motor vehicles
-
20%-25% reducing balance
Fixtures and fittings
-
12.5%-33% straight line or 20%-25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

No depreciation is provided on freehold property in the current or prior year. The director considers
that this accounting policy, which represents a departure from the statutory accounting rules, is
necessary to provide a true and fair view as permitted under FRS 102.
The Group has a policy and practice of regular maintenance and repairs (charges for which are
recognised in the profit and loss account) such that the freehold property is kept to its previously
assessed standards of performance. As a result the property maintains a high residual value and any
depreciation is not considered material.

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.13

Stocks

Stocks are stated at cost. Cost is based on the cost of purchase on a first in, first out basis.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced. The impairment loss is recognised immediately in profit or loss.

Page 15

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

2.Accounting policies (continued)

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position 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.

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Tangible Fixed Assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where
appropriate. The actual lives of the assets and residual values are assessed annually and may vary
depending on a number of factors. In re-assessing asset lives, factors such as technological innovation,
asset life cycles and maintenance programmes are taken into account. Residual value assessments
consider issues such as future market conditions, the remaining life of the asset and projected disposal
values.
Assets are considered for indications of impairment, if required an impairment review will be carried out
and a decision made on possible impairment. Factors taken into consideration in reaching such a decision
include the economic viability and expected future financial performance of the asset and where it is a
component of a larger cash generating unit, the viability and expected future performance of that unit.
Recoverability of debtors
Bad debts are provided where, in the opinion of the directors, there is objective evidence of the need for a
provision.

Page 16

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

4.


Turnover

The whole of the turnover and profit before taxation relates to continuing activities and is attributable to the
provision of care facilities for the elderly and infirm.

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£000
£000

Depreciation of tangible fixed assets owned by the company
200
181

Other operating lease rentals
166
144


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£000
£000

Fees payable to the Company's auditors for the audit of the Company's financial statements
10
12

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

Staff costs were as follows:


2023
2022
£000
£000

Wages and salaries
5,479
4,483

Social security costs
463
378

Cost of defined contribution scheme
111
91

6,053
4,952


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Care home staff
215
201

Page 17

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

8.


Interest receivable

2023
2022
£000
£000


Other interest receivable
3
1

3
1


9.


Interest payable and similar expenses

2023
2022
£000
£000


Bank interest payable
-
403

Other loan interest payable
-
2

-
405


10.


Taxation


2023
2022
£000
£000

Corporation tax


Current tax on profits for the year
-
592

Adjustments in respect of previous periods
-
(5)


Total current tax

-
587

Deferred tax


Origination and reversal of timing differences
24
7

Changes to tax rates
-
90

Total deferred tax
24
97

Taxation on profit on ordinary activities
 
24
 
684
Page 18

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 22% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Profit on ordinary activities before tax
2,805
2,933


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22% (2022 - 19%)
617
557

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3
69

Capital allowances for year in excess of depreciation
(25)
(20)

Adjustments to tax charge in respect of prior periods
-
(5)

Short term timing difference leading to an increase (decrease) in taxation
24
97

Group relief
(595)
(14)

Total tax charge for the year
24
684

The corporation tax rate increased from 19% to 25% with effect from 1 April 2023.


Factors that may affect future tax charges

The only factors affecting future tax charges are those imposed by HMRC.


11.


Dividends

2023
2022
£000
£000


Dividends paid
2,264
400

2,264
400


12.


Exceptional items

2023
2022
£000
£000


Exceptional costs
29
321

29
321
Page 19

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

13.


Tangible fixed assets





Freehold property
Motor vehicles
Fixtures and fittings
Total

£000
£000
£000
£000



Cost or valuation


At 1 October 2022
29,923
27
2,131
32,081


Additions
-
-
249
249



At 30 September 2023

29,923
27
2,380
32,330



Depreciation


At 1 October 2022
-
26
1,329
1,355


Charge for the year on owned assets
-
-
200
200



At 30 September 2023

-
26
1,529
1,555



Net book value



At 30 September 2023
29,923
1
851
30,775



At 30 September 2022
29,923
1
802
30,726

Cost or valuation at 30 September 2023 is as follows:

Land and buildings
£000


At cost
14,599
At valuation:

Revaluation June 2022
15,324



29,923

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£000
£000



Cost
14,599
14,599

Net book value
14,599
14,599

Page 20

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

14.


Stocks

2023
2022
£000
£000

Care home consumables
7
5

7
5



15.


Debtors

2023
2022
£000
£000


Trade debtors
464
440

Other debtors
219
-

Prepayments and accrued income
993
498

1,676
938



16.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Amounts owed to group undertakings
1,465
1,275

Corporation tax
-
415

Other taxation and social security
118
81

Other creditors
642
595

Accruals and deferred income
337
366

2,562
2,732



17.


Securities

National Westminster Bank Plc and Kroll Trustee Services Limited, via intercreditor agreement, hold a
fixed standard security over the fixed asset properties, and a floating charge over the assets of the
company in respect of the bank loan held within Selba Care Ltd and loans held within Selba Ventures Ltd,
both parent companies in the group.
Page 21

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

18.


Deferred taxation




2023
2022


£000

£000






At beginning of year
(4,621)
(1,843)


Charged to profit or loss
(24)
(97)


Charged to other comprehensive income
-
(2,681)



At end of year
(4,645)
(4,621)

The provision for deferred taxation is made up as follows:

2023
2022
£000
£000


Accelerated capital allowances
(417)
(392)

Short term timing differences
12
11

Capital gains
(4,240)
(4,240)

(4,645)
(4,621)


19.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



50,000 (2022 - 50,000) Ordinary shares of £1.00 each
50
50



20.


Reserves

Revaluation reserve

This reserve comprises revaluations to freehold properties.

Profit and loss account

Includes all current and prior period retained profits and losses.


21.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held
separately from those of the company in an independently administered fund. The pension cost charge
represents contributions payable by the company to the fund and amounted to £111k (
2022 - £91k).
Contributions totalling £26k (
2022 - £18k) were payable to the fund at the balance sheet date and are
included in creditors.

Page 22

 
ADVANCED SPECIALIST CARE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023

22.


Commitments under operating leases

At 30 September 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£000
£000

Land & buildings


Not later than 1 year
41
39

Later than 1 year and not later than 5 years
164
158

Later than 5 years
4,254
4,128

4,459
4,325

2023
2022

£000
£000

Other fixed assets


Not later than 1 year
18
21

Later than 1 year and not later than 5 years
9
18

27
39


23.


Related party transactions

The Company is a wholly owned subsidiary of Selba Ventures Ltd, the consolidated accounts of which are publicly available from the Registrar of Companies. Accordingly, the Company has taken advantage of the exemption in FRS 102 Section 33.1A  from disclosing transactions with wholly owned members of the Group.


24.


Controlling party

The immediate parent undertaking is Balhousie Holdings Limited, a company registered in Scotland. The results of Advanced Specialist Care Limited are included within the consolidated financial statements of Balhousie Holdings Limited for the year ended 30 September 2023. Copies of the Balhousie Holdings Limited financial statements can be obtained from Balhousie Care Group, Earn House, Lamberkine Drive, Perth, PH1 1RA and are publicly available on Companies House. The ultimate parent undertaking is Zamoli Ventures AG, a company incorporated in Leichtenstein.
The parent undertaking of the largest group to consolidate these financial statements is Selba Ventures Ltd, a company incorporated in the United Kingdom. Copies of the Selba Ventures Ltd financial statements can be obtained from 84 Brook Street, London, England, W1K 5EH  and are publicly available on Companies House. 
The ultimate controlling party is The Olivetree Foundation, by virtue of the share ownership held in Zamoli Ventures AG. The registered address of The Olivetree Foundation is Bangarten 10, FL-9490 Vaduz, Leichtenstein.

Page 23