REGISTERED NUMBER: 05655549 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
ADONAI HOLDINGS LIMITED |
REGISTERED NUMBER: 05655549 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
ADONAI HOLDINGS LIMITED |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Contents of the Consolidated Financial Statements |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
ADONAI HOLDINGS LIMITED |
Company Information |
for the year ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Unit 14 |
Hoddesdon Enterprise Centre |
Pindar Road |
Hoddesdon |
Hertfordshire |
EN11 0FJ |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Group Strategic Report |
for the year ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Over the past fiscal year, Adonai Holdings Limited has witnessed significant financial growth and operational achievements. The turnover has shown a notable increase from £5.3m to £6.6m, representing an enhancement that aligns with our broad strategic objectives and market dynamics. This increase in turnover underscores the group’s robust and commendable operational performance. |
A noteworthy highlight is our unwavering commitment to excellence within the care sector, driven by strategic decisions that are not solely revenue-oriented but focused on delivering quality care. The directors are confident that the current structure and strategic approach provide a formidable platform that supports not only compliance with regulatory standards but also fosters potential for sustained growth. |
Financially, the group's health continues its upward trajectory. This year saw an impressive surge in shareholder funds by £865,547, reaching a commendable total of £10,333,328. This considerable augmentation in shareholder funds underscores the group’s solid financial foundation and reinforces the belief in its sustainable future. |
The financial statements reflect a strong balance sheet with total assets less current liabilities amounting to £11,562,925, up from £11,094,186 the previous year. This solid financial position provides a stable base for future business ventures and expansions. |
The group also reported a net profit increase to £1,119,547 from £856,154 the previous year, reflecting effective cost management and revenue growth. |
In conclusion, while there are challenges mirrored by the turnover figures, the directors remain optimistic. The strategic foundation of Adonai Holdings is robust; the commitment to quality care is steadfast, and the financial indicators, especially shareholder funds, demonstrate the potential for future growth |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risk is the continued adherence to the regulations within the care sector. Any significant breaches of such regulations could lead to a care home closure. |
ON BEHALF OF THE BOARD: |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Report of the Directors |
for the year ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of care homes. |
DIVIDENDS |
An interim dividend of £234.00 per share was paid on 31 December 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 December 2023 will be £ 234,000 . |
FUTURE DEVELOPMENTS |
The group's aim is to continue to provide a strong platform to allow for sustained growth whilst adhering to the required regulations within the care sector. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company's and the group's principal financial instruments comprise the bank, bank loans and trade debtors. The main purpose of these instruments is to finance the company and the group's operations. |
In respect of bank balances, the liquidity risk is managed by maintaining a cash balance throughout the year |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts |
presented in the balance sheet are net of allowances for doubtful debtors. |
The liquidity risk in respect of the bank loans is managed by ensuring that there are sufficient funds to meet the repayments. |
The company and the group operate in a highly regulated environment particularly in relation to the Care Quality Commission standards. The company and the group have established an effective system of internal control to ensure compliance with all legal and regulatory requirements. |
DISCLOSURE IN THE STRATEGIC REPORT |
Where the group has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the group's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 it must be stated in the directors' report that it has done so. This includes information that would have been included in the business review and the principal risks and uncertainties. |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Report of the Directors |
for the year ended 31 December 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Trevor Jones & Partners Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Adonai Holdings Limited |
Opinion |
We have audited the financial statements of Adonai Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Adonai Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Adonai Holdings Limited |
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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations; |
We identified the laws and regulations applicable to the company through discussions with directors and other management; |
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013), and health and safety legislation; |
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and |
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
Performed analytical procedures to identify any unusual or unexpected relationships; |
Tested journal entries to identify unusual transactions; |
Assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and |
Investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
Agreeing financial statement disclosures to underlying supporting documentation; |
Enquiring of management as to actual and potential litigation and claims; and |
Report of the Independent Auditors to the Members of |
Adonai Holdings Limited |
Reviewing correspondence with HMRC. |
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. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Unit 14 |
Hoddesdon Enterprise Centre |
Pindar Road |
Hoddesdon |
Hertfordshire |
EN11 0FJ |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Consolidated Income Statement |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 6,646,385 | 5,303,715 |
Cost of sales | 3,643,418 | 2,999,566 |
GROSS PROFIT | 3,002,967 | 2,304,149 |
Administrative expenses | 1,434,124 | 1,170,932 |
1,568,843 | 1,133,217 |
Other operating income | 5,529 | 7,787 |
OPERATING PROFIT | 4 | 1,574,372 | 1,141,004 |
Interest receivable and similar income | 15,595 | 749 |
1,589,967 | 1,141,753 |
Interest payable and similar expenses | 5 | 96,961 | 68,472 |
PROFIT BEFORE TAXATION | 1,493,006 | 1,073,281 |
Tax on profit | 6 | 373,459 | 217,127 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,119,547 | 856,154 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Consolidated Other Comprehensive Income |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,119,547 | 856,154 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,119,547 |
856,154 |
Total comprehensive income attributable to: |
Owners of the parent | 1,119,547 | 856,154 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 2,853,252 | 2,415,852 |
Tangible assets | 10 | 4,378,479 | 4,477,242 |
Investments | 11 | 1,254,679 | 1,722,179 |
8,486,410 | 8,615,273 |
CURRENT ASSETS |
Debtors | 12 | 1,663,721 | 433,710 |
Cash at bank and in hand | 2,592,487 | 2,956,971 |
4,256,208 | 3,390,681 |
CREDITORS |
Amounts falling due within one year | 13 | 1,179,693 | 911,768 |
NET CURRENT ASSETS | 3,076,515 | 2,478,913 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
11,562,925 |
11,094,186 |
CREDITORS |
Amounts falling due after more than one year | 14 | 1,229,597 | 1,646,405 |
NET ASSETS | 10,333,328 | 9,447,781 |
CAPITAL AND RESERVES |
Called up share capital | 16 | 1,000 | 1,000 |
Revaluation reserve | 17 | 632,000 | 632,000 |
Other reserves | 17 | 35,000 | 35,000 |
Retained earnings | 17 | 9,665,328 | 8,779,781 |
SHAREHOLDERS' FUNDS | 10,333,328 | 9,447,781 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by: |
B Oozageer - Director |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's profit for the financial year | 176,231 | 212,800 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Consolidated Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up |
share | Retained | Revaluation | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 1,000 | 8,176,127 | 632,000 | 35,000 | 8,844,127 |
Changes in equity |
Dividends | - | (252,500 | ) | - | - | (252,500 | ) |
Total comprehensive income | - | 856,154 | - | - | 856,154 |
Balance at 31 December 2022 | 1,000 | 8,779,781 | 632,000 | 35,000 | 9,447,781 |
Changes in equity |
Dividends | - | (234,000 | ) | - | - | (234,000 | ) |
Total comprehensive income | - | 1,119,547 | - | - | 1,119,547 |
Balance at 31 December 2023 | 1,000 | 9,665,328 | 632,000 | 35,000 | 10,333,328 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Company Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 | ( |
) | ( |
) |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Consolidated Cash Flow Statement |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,697,510 | 1,064,654 |
Interest paid | (96,961 | ) | (67,780 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
(692 |
) |
Tax paid | (191,728 | ) | (212,255 | ) |
Net cash from operating activities | 1,408,821 | 783,927 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (19,921 | ) | (35,288 | ) |
Sale of tangible fixed assets | - | 1,133 |
Interest received | 15,595 | 749 |
Net cash from investing activities | (4,326 | ) | (33,406 | ) |
Cash flows from financing activities |
Capital repayments in year | (433,523 | ) | (347,418 | ) |
Amount withdrawn by directors | (1,101,456 | ) | (18,650 | ) |
Equity dividends paid | (234,000 | ) | (252,500 | ) |
Net cash from financing activities | (1,768,979 | ) | (618,568 | ) |
(Decrease)/increase in cash and cash equivalents | (364,484 | ) | 131,953 |
Cash and cash equivalents at beginning of year |
2 |
2,956,971 |
2,825,018 |
Cash and cash equivalents at end of year | 2 | 2,592,487 | 2,956,971 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,493,006 | 1,073,281 |
Depreciation charges | 148,684 | 143,701 |
Profit on disposal of fixed assets | - | (184 | ) |
Finance costs | 96,961 | 68,472 |
Finance income | (15,595 | ) | (749 | ) |
1,723,056 | 1,284,521 |
Increase in trade and other debtors | (170,175 | ) | (160,025 | ) |
Increase/(decrease) in trade and other creditors | 144,629 | (59,842 | ) |
Cash generated from operations | 1,697,510 | 1,064,654 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 2,592,487 | 2,956,971 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 2,956,971 | 2,825,018 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,956,971 | (364,484 | ) | 2,592,487 |
2,956,971 | (364,484 | ) | 2,592,487 |
Debt |
Debts falling due within 1 year | (363,207 | ) | 16,815 | (346,392 | ) |
Debts falling due after 1 year | (1,646,405 | ) | 416,808 | (1,229,597 | ) |
(2,009,612 | ) | 433,623 | (1,575,989 | ) |
Total | 947,359 | 69,139 | 1,016,498 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Adonai Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the accounts of Adonai Holdings Limited and all of its subsidiary undertakings made up to 31 December 2021; the group statement of comprehensive income includes the results of all subsidiary undertakings for the period. |
Turnover and profits arising on trading between group companies are excluded. |
Where the group has an investment in an entity which is sufficient to give the group a participating interest, and over which it is in a position to exercise significant influence, the entity is treated as an associated undertaking and is accounted for using the equity method of accounting. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
(i) Useful economic lives of tangible fixed assets |
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets. |
(ii) Useful economic life of intangible fixed asset |
The annual amortisation charge for the intangible fixed asset is sensitive to changes in the estimated useful economic life and residual value of the asset. The useful economic life and residual value is re-assessed annually. It is amended when necessary to reflect current estimates, based on utilisation of the asset. |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts. |
Revenue from the sale of services is recognised when the significant risks and rewards of ownership have transferred to the buyer; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Goodwill |
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. |
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life of twenty years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. |
Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.An increase in the carrying amount of an asset as a result of a revaluation is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 3,385,959 | 2,796,134 |
Other pension costs | 97,009 | 141,668 |
3,482,968 | 2,937,802 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Direct | 129 | 125 |
Directors | 2 | 2 |
The average number of employees by undertakings that were proportionately consolidated during the year was 131 (2022 - 127 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 18,365 | 17,628 |
Directors' pension contributions to money purchase schemes | 60,000 | 104,632 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 69,578 | 52,543 |
Depreciation - owned assets | 118,684 | 113,701 |
Profit on disposal of fixed assets | - | (184 | ) |
Goodwill amortisation | 30,000 | 30,000 |
Auditors' remuneration | 20,820 | 17,700 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 94,604 | 65,663 |
Bank loan interest | 2,357 | 2,117 |
Hire purchase | - | 692 |
96,961 | 68,472 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 373,459 | 217,127 |
Tax on profit | 373,459 | 217,127 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 234,000 | 252,500 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 | 3,120,357 |
Additions | 467,400 |
At 31 December 2023 | 3,587,757 |
AMORTISATION |
At 1 January 2023 | 704,505 |
Amortisation for year | 30,000 |
At 31 December 2023 | 734,505 |
NET BOOK VALUE |
At 31 December 2023 | 2,853,252 |
At 31 December 2022 | 2,415,852 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 | 4,923,945 | 22,377 | 1,149,904 |
Additions | - | - | 17,521 |
At 31 December 2023 | 4,923,945 | 22,377 | 1,167,425 |
DEPRECIATION |
At 1 January 2023 | 871,700 | 1,908 | 769,919 |
Charge for year | 54,984 | 192 | 57,828 |
At 31 December 2023 | 926,684 | 2,100 | 827,747 |
NET BOOK VALUE |
At 31 December 2023 | 3,997,261 | 20,277 | 339,678 |
At 31 December 2022 | 4,052,245 | 20,469 | 379,985 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 107,932 | 12,384 | 6,216,542 |
Additions | 2,400 | - | 19,921 |
At 31 December 2023 | 110,332 | 12,384 | 6,236,463 |
DEPRECIATION |
At 1 January 2023 | 85,264 | 10,509 | 1,739,300 |
Charge for year | 5,672 | 8 | 118,684 |
At 31 December 2023 | 90,936 | 10,517 | 1,857,984 |
NET BOOK VALUE |
At 31 December 2023 | 19,396 | 1,867 | 4,378,479 |
At 31 December 2022 | 22,668 | 1,875 | 4,477,242 |
Company |
Freehold |
property |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 1,254,679 |
NET BOOK VALUE |
At 31 December 2023 | 1,254,679 |
At 31 December 2022 | 1,254,679 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Genesis Residential Homes Ltd |
Registered office: England |
Nature of business: Care home |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 714,811 | 695,619 |
Profit for the year | 31,192 | 50,206 |
Hatherley Care Home Limited |
Registered office: England |
Nature of business: Care home |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 4,740,394 | 4,437,718 |
Profit for the year | 367,676 | 320,529 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Rosewood & Brook House Ltd |
Registered office: England |
Nature of business: Care Home |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 1,026,456 | 1,005,190 |
Profit for the year | 21,266 | 47,858 |
Belmont Grange Ltd |
Registered office: England |
Nature of business: Care Home |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 1,256,575 | 1,083,839 |
Profit for the year | 239,836 | 216,690 |
Deverill Holdings Limited |
Registered office: England |
Nature of business: Holding company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Preference | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 542,490 | 542,490 |
Profit for the year | 62,000 | 63,500 |
Deverill Estates Limited |
Registered office: England |
Nature of business: Care home |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 2,732,546 | 2,349,459 |
Profit for the year | 445,087 | 260,570 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Genesis Residential Home (Spalding) Limited |
Registered office: England |
Nature of business: Care Home |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 164,952 | 120,693 |
Profit for the year | 72,259 | 47,978 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 317,004 | 121,262 |
Other debtors | 1,312,554 | 247,343 |
Tax | - | 42,399 |
Prepayments and accrued income | 34,163 | 22,706 |
1,663,721 | 433,710 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 346,392 | 363,207 |
Trade creditors | 14,842 | 13,714 |
Amounts owed to group undertakings | - | - |
Tax | 432,599 | 293,267 |
Social security and other taxes | 106,768 | 69,933 |
Other creditors | 219,030 | 129,093 |
Directors' current accounts | 2,898 | 2,119 | - | - |
Accrued expenses | 57,164 | 40,435 |
1,179,693 | 911,768 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 15) | 1,229,597 | 1,646,405 |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 346,392 | 363,207 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 228,783 | 259,098 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,000,814 | 1,387,307 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
17. | RESERVES |
Group |
Retained | Revaluation | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 8,779,781 | 632,000 | 35,000 | 9,446,781 |
Profit for the year | 1,119,547 | 1,119,547 |
Dividends | (234,000 | ) | (234,000 | ) |
At 31 December 2023 | 9,665,328 | 632,000 | 35,000 | 10,332,328 |
18. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £234,000 were paid to the directors . |
ADONAI HOLDINGS LIMITED (REGISTERED NUMBER: 05655549) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
18. | RELATED PARTY DISCLOSURES - continued |
During the period, Adonai Holdings Limited engaged in intercompany transactions with its subsidiaries as follows: |
Adonai Holdings Limited had the following year-end balances with its subsidiaries: |
Deverill Estates Limited is owed £2,129,582 from Adonai Holdings Limited . |
Genesis Residential Homes Ltd owed Adonai Holdings Limited £24,838. |
Rosewood and Brookhouse Ltd is owed £357,837 from Adonai Holdings Limited . |
Belmont Grange Ltd owed Adonai Holdings Limited £366,713. |
Genesis Residential Home (Spalding) Limited had a credit balance of £40,000 with Adonai Holdings |
Limited. |
Deverill Holdings Limited owed Adonai Holdings Limited £246,925. |
Hatherley Care Home Limited is owed £2,400 from Adonai Holdings Limited |
The movements during the year between Adonai Holdings Limited and its subsidiaries included: |
A further transfer of £320,692 from Deverill Estates Limited to Adonai Holdings Limited. |
A further transfer of 106,042 from Rosewood and Brookhouse Ltd to Adonai Holdings Limited. |
These transactions are eliminated on consolidation and are disclosed in line with financial reporting requirements governing related party disclosures. |