Company registration number SC111827 (Scotland)
RANDOLPH HILL NURSING HOMES GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
RANDOLPH HILL NURSING HOMES GROUP LIMITED
COMPANY INFORMATION
Directors
Mr P McCormick FCCA
Miss K Wood RGN RM BSC MSC
Mrs C Allen RGN RMA
Company number
SC111827
Registered office
2nd Floor
6 Redheughs Rigg
South Gyle
Edinburgh
EH12 9DQ
Auditor
Thomson Cooper
22 Stafford Street
Edinburgh
EH3 7BD
Bankers
HSBC Bank plc
76 Hanover Street
Edinburgh
EH2 1HQ
RANDOLPH HILL NURSING HOMES GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
RANDOLPH HILL NURSING HOMES GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024. The group trades through a single subsidiary Randolph Hill Nursing Homes (Scotland) Limited.

Review of the business

The directors believe the trading performance of the group continues to be a good level in the current market conditions. Turnover has increased from the previous year because fees continue to rise in both public sector and privately funded fees and pay increases mirrored that. Our new care home at Livingston continues to establish itself. Last year we reported that we expected to see the full effects in this Financial Year. Our 2024 accounts show this, and the home has experienced strong occupancy levels though Agency costs continued to be high with difficulty filling all vacancies in the current care home jobs market. While agency levels have remained high, the directors believe that their policy on staff remuneration has kept these levels well below industry averages.

 

While all Directors and Staff remain mindful of the Coronavirus Pandemic, there were no homes closed to admissions in the year. The procedures from the pandemic around Personal Protective Equipment, Cleaning, Infection Control, Medical, covering COVID Staff sickness and absence, etc. remain in place and are now seen as normal practice across the group.

 

Profits for the year are higher than the previous years as Kirk Lane report similar occupancy levels as to the other homes across the group.

 

Despite the significant changes and challenges affecting the whole care sector, the directors expect underlying profit of the seven nursing homes to be maintained, if not bettered next year as our seven homes report high levels of occupancy.

 

While we note that the tax charge is substantially higher this year than last, this was to be expected. The chargeable rate of corporation tax for the year has increased as announced in the budget of Spring 2021.

 

The directors continue to investigate new sites and we are progressing planning for a new 20 bed care home at one of our nursing homes. The Directors are hopeful of achieving planning by the end of this Financial Year. Should planning be achieved the Directors will then work towards appointing a contractor to carry out works on the new property.

 

Management and directors have regular meetings with employees and meetings with residents and their relatives.

 

The company has processes in place to meet the various environmental requirements. In this year. The company continues to follow the plan to achieve a reduction in carbon use and look at ways to generate our own electricity to use at our properties throughout the Group.

Principal risks and uncertainties

The directors have an appropriate risk management structure in place to identify and manage and mitigate business risk. Risk evaluation is carried out throughout the year and the directors are not aware of any such matters which may have a material impact on the group's financial position.

 

The group operates within a highly regulated environment and changes to the many regulations that apply may have a future impact on performance.

The Scottish Government have previously initiated a review of the care sector. This review is still ongoing. A National Care Service Bill has progressed to the second stage in the Scottish Parliament. However, at today’s date there is no further detail on the Governments plans, or if the National Care Service will be implemented.

 

Again, this year, there continues to be a shortage of Qualified nursing staff across the industry. The Directors continue to monitor the situation and take steps to migrate the risk. While agency use has increased over the years our staff retention and recruitment as well as the use of the Home Office Sponsorship Licence to recruit nurses form abroad allows us to limit the use of agency staff.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators

The key performance indicators for the company are:

 

 

2024

2023

 

£

£

 

Turnover

29,802,155

24,892,970

 

 

 

Profit before Taxation

(excluding Exceptional Item)

 

3,273,383

1,541,111

 

Section 172 (1) statement

As Directors of the Group we have acted, and continue to act, in a way that we consider to be most likely to promote the continuing success of the Group for the benefits of its members. In doing so we have had regard, amongst other matters, to:

  1. The likely consequences of any decision in the long term; The directors strive to balance social, economic and environmental factors when making decisions. An emphasis is placed upon safety, ethical practice and sustainable working practices to promote the success of the group in the long term.

  2. The interests of the Group’s employees; The directors are committed to providing an engaging and inclusive environment and a thriving, happy workforce who are positive advocates of the group. Our staff policies reflect the changing needs of our employees with a range of flexible options to ensure our employees can balance their work and home lives.

  3. The need for engagement with the regulators; In addition to the group’s internal governance framework, there is a robust external governance framework in the form of The Care Act 2014 and the Care Inspectorate. The directors continue to foster strong working relationships with the regulators, driving the best quality of care.

  4. The need to foster the Group’s business relationships with suppliers, customers and others; The Group’s relationships with customers and suppliers are critical to maintaining high-quality standards that the Group prides itself on. The directors and management regularly engage with our residents and relatives to ask for feedback, which we use to develop action plans for continuous improvement.

  5. The impact of the Group’s operations on the community; The Group is committed to engaging with all the communities within which it operates. It has a long history of investing in those communities and commits funds each year to support local good causes.

  6. The desirability of the Group maintaining a reputation for high standards of business conduct; The directors meet regularly to review feedback from residents and relatives and have a robust staff training regime to ensure the highest standards of resident care. The Directors continuously review quality and safety in the workplace and ensure compliance with all regulatory requirements.

  7. The need to act fairly as between members of the group; The Board of Directors meet quarterly during which key strategic, operational and business risks are discussed. In addition, the Executive team meet bi-weekly to discuss and plan for key strategic and operational activities of the business.

On behalf of the board

Mr P McCormick FCCA
Director
11 September 2024
RANDOLPH HILL NURSING HOMES GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the group continued to be that of the provision of nursing home accommodation and care services.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P McCormick FCCA
Miss K Wood RGN RM BSC MSC
Mrs C Allen RGN RMA
Disabled persons

The group has continued its policy regarding the employment of disabled persons. Full and fair consideration is given to applications for employment made by disabled persons having regard to their particular aptitudes and abilities. Appropriate training is arranged for disabled persons, including retraining for alternative work for employees who become disabled, to promote their career development within the organisation.

Employee involvement

Regular staff meetings are held within each home at which staff are able to discuss the group's affairs with management.

Auditor

The auditor, Thomson Cooper, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Energy and carbon report

 

 

2024

2023

UK energy Use Kwh

4,859,143

4,724,290

Associated Greenhouse gas emissions Tonnes CO2 equivalent

931.42

884.06

Intensity ratio Emissions per £M

164,974

190,009

 

Compliance Overview

This report covers Randolph Hill for the financial year 1 April 2023 to 31 March 2024. The report details annual GHG emissions (Scope 1 & 2) from activities for which the company is directly responsible. Having considered the production metrics within the business, we have concluded that Annual Turnover (£M) is the most appropriate to achieve a benchmark which aligns with the carbon reduction policy and methodology that Randolph Hill are currently working towards. The facilities owned by Randolph Hill comprises of Offices and Nursing Homes where client needs are managed and delivered. There is a fleet of company vehicles. The key environmental risks identified include waste management and provision of utilities. The management recognise their responsibility to monitor and control the impact of these risks.

Methodology and Estimates

The methodology used to calculate total energy consumption and carbon emissions has been through the extraction of consumption data from invoices and meter reads for the financial years stated. Where data was not available, estimates have been calculated using historical profiles and details kept in the client's evidence pack. Energy and fuel consumption has been converted to carbon (TCO2e) using 2023 DEFRA published conversion factors. Fuel for Transportation has been converted using statistical data sets published by Department of Transport (www.gov.uk/government/statistical-datasets/energy-and-environment-data-tables-env).

Energy Performance Benchmarking

Randolph Hill seek to minimise the detrimental impact of our operations on the environment. Due to the size and nature of the Group, an external environmental audit is not required. This area will be reassessed as the Group grows in conjunction with any new legislative developments. The Group's Environmental Policy aims to reduce the energy our business uses by:

• Conserving energy and other natural resources and improving efficient use of those resources

• Improving the efficiency of materials used

• Reducing waste and increasing reuse and recycling wherever possible

• Reducing the need for travel and encouraging the use of alternative means of transport, for example, public transport, cycle to work schemes and car sharing

• Promoting flexible working to reduce the impact on local infrastructures

• Providing all colleagues with relevant environmental training and guidance

 

Energy Efficiency Action Taken

We have already taken the necessary steps to show our commitment to reducing GHG emissions and continue to

undertake measures that can reduce our carbon footprint further, examples are smart lighting, water reduction (auto taps etc).

RANDOLPH HILL NURSING HOMES GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr P McCormick FCCA
Director
11 September 2024
RANDOLPH HILL NURSING HOMES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RANDOLPH HILL NURSING HOMES GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Randolph Hill Nursing Homes Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group balance sheet, the parent company balance sheet, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

RANDOLPH HILL NURSING HOMES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RANDOLPH HILL NURSING HOMES GROUP LIMITED
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, set out on page 5, 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 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 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.

Auditor's 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 auditor's 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was capable of detecting irregularities, including fraud

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income, posting of unusual journals along with complex transactions and manipulating the Group’s key performance indicators to meet targets. We discussed these risks with client management, designed audit procedures to test the timing of revenue, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias to address these risks.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).

We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the group.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RANDOLPH HILL NURSING HOMES GROUP LIMITED
- 8 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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 an auditor's 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.

Andrew Croxford (Senior Statutory Auditor)
For and on behalf of Thomson Cooper, Statutory Auditor
Dunfermline
Date: 11 September 2024
RANDOLPH HILL NURSING HOMES GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
4
29,802,155
24,892,970
Cost of sales
(20,012,285)
(17,987,203)
Gross profit
9,789,870
6,905,767
Administrative expenses
(5,141,723)
(4,740,525)
Other operating income
-
337,467
Exceptional item
3
(6,212,377)
-
0
Operating (loss)/profit
5
(1,564,230)
2,502,709
Interest receivable and similar income
7
1,348
1,498
Interest payable and similar expenses
9
(1,376,112)
(963,096)
(Loss)/profit before taxation
(2,938,994)
1,541,111
Tax on (loss)/profit
10
43,210
(613,667)
(Loss)/profit for the financial year
(2,895,784)
927,444
(Loss)/profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
£
£
(Loss)/profit for the year
(2,895,784)
927,444
Other comprehensive income
Interest rate swaps (loss)/gain arising in the year
(338,379)
2,030,713
Change in deferred tax rate
-
(684,067)
Total comprehensive income for the year
(3,234,163)
2,274,090
Total comprehensive income for the year is all attributable to the owners of the parent company.
RANDOLPH HILL NURSING HOMES GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
65,882,069
65,593,152
Current assets
Stocks
14
18,800
13,520
Debtors
16
2,550,358
4,166,976
Cash at bank and in hand
1,505,489
479,762
4,074,647
4,660,258
Creditors: amounts falling due within one year
17
(8,891,507)
(5,242,951)
Net current liabilities
(4,816,860)
(582,693)
Total assets less current liabilities
61,065,209
65,010,459
Creditors: amounts falling due after more than one year
18
(26,624,884)
(26,580,614)
Provisions for liabilities
Deferred tax liability
22
3,306,926
4,062,283
(3,306,926)
(4,062,283)
Net assets
31,133,399
34,367,562
Capital and reserves
Called up share capital
23
11,483,286
11,483,286
Revaluation reserve
11,461,160
11,461,160
Interest rate swap reserve
1,692,334
2,030,713
Profit and loss reserves
6,496,619
9,392,403
Total equity
31,133,399
34,367,562
The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
11 September 2024
Mr P McCormick FCCA
Director
Company registration number SC111827 (Scotland)
RANDOLPH HILL NURSING HOMES GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
11
-
0
2
Current assets
Debtors
16
37,018,250
37,197,157
Creditors: amounts falling due within one year
17
(2,430,009)
(2,330,010)
Net current assets
34,588,241
34,867,147
Total assets less current liabilities
34,588,241
34,867,149
Creditors: amounts falling due after more than one year
18
(26,624,884)
(26,565,413)
Net assets
7,963,357
8,301,736
Capital and reserves
Called up share capital
23
11,483,286
11,483,286
Interest rate swap reserve
1,692,334
2,030,713
Profit and loss reserves
(5,212,263)
(5,212,263)
Total equity
7,963,357
8,301,736

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £0)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
11 September 2024
Mr P McCormick FCCA
Director
Company registration number SC111827 (Scotland)
RANDOLPH HILL NURSING HOMES GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Revaluation reserve
Interest rate swap reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2022
11,483,286
12,145,227
-
8,464,959
32,093,472
Year ended 31 March 2023:
Profit for the year
-
-
-
927,444
927,444
Other comprehensive income:
Cash flow hedges gains arising in the year
-
-
2,030,713
-
2,030,713
Tax relating to other comprehensive income
-
(684,067)
-
0
-
0
(684,067)
Total comprehensive income for the year
-
(684,067)
2,030,713
927,444
2,274,090
Balance at 31 March 2023
11,483,286
11,461,160
2,030,713
9,392,403
34,367,562
Year ended 31 March 2024:
Loss for the year
-
-
-
(2,895,784)
(2,895,784)
Other comprehensive income:
Cash flow hedges gains arising in the year
-
-
(338,379)
-
(338,379)
Total comprehensive income for the year
-
-
(338,379)
(2,895,784)
(3,234,163)
Balance at 31 March 2024
11,483,286
11,461,160
1,692,334
6,496,619
31,133,399
RANDOLPH HILL NURSING HOMES GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
392,910
3,281,700
Interest paid
(1,376,112)
(963,096)
Income taxes (paid)/refunded
(115,114)
192,236
Net cash (outflow)/inflow from operating activities
(1,098,316)
2,510,840
Investing activities
Purchase of tangible fixed assets
(1,055,090)
(1,271,013)
Interest received
1,348
1,498
Net cash used in investing activities
(1,053,742)
(1,269,515)
Financing activities
Shareholder loans
3,046,334
-
Proceeds from new bank loans
1,000,000
-
Repayment of bank loans
(840,530)
(1,050,718)
Payment of finance leases obligations
(28,019)
(28,909)
Net cash generated from/(used in) financing activities
3,177,785
(1,079,627)
Net increase in cash and cash equivalents
1,025,727
161,698
Cash and cash equivalents at beginning of year
479,762
318,064
Cash and cash equivalents at end of year
1,505,489
479,762
RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information

Randolph Hill Nursing Homes Group Limited (“the company”) is a limited company domiciled and incorporated in Scotland. The registered office is 2nd Floor, 6 Redheughs Rigg, South Gyle, Edinburgh, EH12 9DQ.

 

The group consists of Randolph Hill Nursing Homes Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £0)

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Randolph Hill Nursing Homes Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Going concern

At the balance sheet date, the group had net current liabilities of £4,816,265. This includes £3,046,334 due to the shareholders and will not be repaid unless the financial position of the company permits. Based on the current financial projections the directors are satisfied the group has sufficient sources of current and future funding for the group's needs, and that it is therefore appropriate for the financial statements to be prepared on a going concern basis. The directors have considered a period of at least twelve months from the date of approval of the accounts.

1.4
Turnover

Turnover represents amounts chargeable in respect of the provision of nursing services and residential care. The total turnover of the group for the year has been derived from the United Kingdom.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

No depreciation is provided on freehold land. Freehold properties are not depreciated where the Directors are of the opinion that the buildings concerned are currently sufficiently well maintained to ensure that the residual values of such properties, which are appraised on the basis of prices prevailing at the times of acquisition or subsequent valuation, are not less than the carrying values and accordingly annual depreciation would not be material to the financial statements. Carrying values are reviewed for impairment annually. The directors have adopted an accounting policy of obtaining a professional revaluation of the properties every three years. In addition, the company has a policy and practice of regular maintenance and repair (charges for which are recognised in the profit and loss account) such that the asset is kept to its previously assessed standard.

 

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life. No depreciation is charged in the year of acquisition and a full year of depreciation is charged in the year of disposal. Annual depreciation rates are as follows:

Land and buildings Freehold
nil
Fixtures, fittings & equipment
4-25% Straight Line
Motor vehicles
20% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and net realisable value.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

For derivatives that are designated and qualify as cash flow hedges, the effective portion of changes in the fair value of the hedge is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

 

Any gain or loss previously recognised in other comprehensive income is reclassified to profit or loss when the hedge relationship ends. This occurs when the hedging instrument expires or no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised, or the hedging instrument is terminated.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

The group operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

No depreciation is provided on freehold land. Freehold properties are not depreciated where the directors are of the opinion that the buildings concerned are currently sufficiently well maintained to ensure the residual value of such properties, which are appraised on the basis of prices prevailing at the times of acquisition or subsequent valuation, are not less than the carrying values and accordingly annual depreciation would not be material to the financial statements. Carrying values are reviewed for impairment annually.

 

Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Exceptional item
2024
2023
£
£
Loan written off
Reversal of Shareholder Loans written off on consolidation
6,212,377
-
RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Exceptional item
(Continued)
- 21 -

Liabilities due to the Estate of Elliot Nichol, which had previously been written off on consolidation have been reinstated as liabilities. These liabilities have been charged to the profit and loss account in the current year to reflect the liabilities which are now payable.

4
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Nursing home fees
29,802,155
24,892,970
2024
2023
£
£
Other significant revenue
Interest income
1,348
1,498
Coronavirus support grants
-
337,467
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
29,802,155
24,892,970
5
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Government grants
-
(337,467)
Depreciation of owned tangible fixed assets
728,125
659,788
Depreciation of tangible fixed assets held under finance leases
30,338
30,151
Loss on disposal of tangible fixed assets
7,710
-
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
20,500
18,500
RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,348
1,498
8
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

2024
2023
Number
Number
Admin and support
23
22
Other departments
629
591
652
613

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
16,185,506
14,139,197
Social security costs
1,481,494
1,322,375
Pension costs
499,015
458,006
18,166,015
15,919,578
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,372,620
959,469
Other finance costs:
Interest on finance leases and hire purchase contracts
3,492
3,627
Total finance costs
1,376,112
963,096
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
712,148
114,911
Adjustments in respect of prior periods
-
0
(20,172)
Total current tax
712,148
94,739
RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 23 -
Deferred tax
Origination and reversal of timing differences
115,791
260,663
Changes in tax rates
-
0
258,265
Adjustment in respect of prior periods
(871,149)
-
0
Total deferred tax
(755,358)
518,928
Total tax (credit)/charge for the year
(43,210)
613,667

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(2,938,994)
1,541,111
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(734,749)
292,811
Tax effect of expenses that are not deductible in determining taxable profit
2,902
-
0
Adjustments in respect of prior years
-
0
(20,172)
Depreciation on assets not qualifying for tax allowances
4,086
-
0
Other non-reversing timing differences
2,606
(551)
Other permanent differences
-
0
(34,295)
Deferred tax adjustments in respect of prior years
(871,149)
38,829
Enhanced capital allowances
-
0
(32,200)
Tax effect of Exceptional Item (note 3)
1,553,094
-
0
-
0
369,245
Taxation (credit)/charge for the year
(43,210)
613,667

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Change in deferred tax rate
-
684,067
Total tax recognised in other comprehensive income
-
0
684,067
RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
-
0
2
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
2
Disposals
(2)
At 31 March 2024
-
Carrying amount
At 31 March 2024
-
At 31 March 2023
2
12
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Randolph Hill Limited
Scotland
Ordinary
100.00
Randolph Hill Nursing Homes (Scotland) Limited
Scotland
Ordinary
100.00
Randolph Hill Nursing Homes Limited
Scotland
Ordinary
100.00
RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
13
Tangible fixed assets
Group
Land and buildings Freehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 April 2023
61,574,261
7,359,051
299,830
69,233,142
Additions
284,732
770,358
-
0
1,055,090
Disposals
-
0
(346,974)
-
0
(346,974)
At 31 March 2024
61,858,993
7,782,435
299,830
69,941,258
Depreciation and impairment
At 1 April 2023
-
0
3,390,175
249,815
3,639,990
Depreciation charged in the year
-
0
727,900
30,563
758,463
Eliminated in respect of disposals
-
0
(339,264)
-
0
(339,264)
At 31 March 2024
-
0
3,778,811
280,378
4,059,189
Carrying amount
At 31 March 2024
61,858,993
4,003,624
19,452
65,882,069
At 31 March 2023
61,574,261
3,968,876
50,015
65,593,152
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
19,452
49,790
-
0
-
0

The properties were revalued on 24 March 2022. The valuation was undertaken by Coldwell Banker Richard Ellis, Chartered Surveyors, who are external to the group. The basis of the valuation was as fully equipped operational entities having regard to trading potential. As such, the valuation included the fixtures, fittings and equipment held within each of these homes at that date. For the purpose of the table above, fixtures, fittings and equipment have been included at depreciated historic cost and the balance of the valuation has been attributed to the freehold land and buildings.

 

 

 

RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Tangible fixed assets
(Continued)
- 26 -
2024
2023
£
£
Group
Cost and carrying value
48,350,009
48,089,039
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
18,800
13,520
-
-
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,692,334
2,030,713
1,692,334
2,030,713

The group has entered into three interest rate swaps as detailed below:

 

Principal Amount        Fixed Rate    Cessation Date        Fair Value

 

£8,613,222        0.86920%    25/06/2029        £782,217

£8,660,000        1.19510%    17/05/2029        £570,325

£7,000,000        1.27998%    11/09/2025        £339,792

 

The interest rate swap instrument is used to hedge the group's exposure to interest rate movements on the loan facility. The fair value of the interest rate swap is £1,692,334 (2023 £2,030,713)

16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
784,859
738,310
-
0
-
0
Amounts owed by group undertakings
-
-
35,325,916
35,166,444
Interest rate swap measured at fair value
1,692,334
2,030,713
1,692,334
2,030,713
Loans to related parties
-
1,267,598
-
0
-
0
Prepayments and accrued income
73,165
130,355
-
0
-
0
2,550,358
4,166,976
37,018,250
37,197,157
RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
2,430,009
2,330,010
2,430,009
2,330,010
Obligations under finance leases
20
15,297
28,115
-
0
-
0
Shareholder loans
19
3,046,334
-
0
-
0
-
0
Trade creditors
1,080,037
1,193,500
-
0
-
0
Corporation tax payable
712,148
115,115
-
0
-
0
Other taxation and social security
326,124
282,303
-
-
Accruals and deferred income
1,281,558
1,293,908
-
0
-
0
8,891,507
5,242,951
2,430,009
2,330,010
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
26,624,884
26,565,413
26,624,884
26,565,413
Obligations under finance leases
20
-
0
15,201
-
0
-
0
26,624,884
26,580,614
26,624,884
26,565,413
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
29,054,893
28,895,423
29,054,893
28,895,423
Shareholder loans (note 24)
3,046,334
-
0
-
0
-
0
32,101,227
28,895,423
29,054,893
28,895,423
Payable within one year
5,476,343
2,330,010
2,430,009
2,330,010
Payable after one year
26,624,884
26,565,413
26,624,884
26,565,413

The long-term loans are secured by standard securities over the group's land and buildings, together with floating charges over all remaining assets.

Borrowing at 31 March 2024 consists of three term loans. Term loan A has a balance of £19,970,180 and is repayable over a remaining term of 11 years at an interest rate of 1.75% above base rate. Term loan B has a balance of £8,101,381 and is repayable over the remaining term of 2 years at an interest rate of 2% above base rate. At the end of 2 years, Term loan B will be subject to a new financing arrangement. Term loan C was drawn down in the year and has a balance of £983,333 and is repayable over the remaining term of 12 months at an interest rate of 2.25% above base rate. At the end of 12 months, term loan C will be subject to a new financing arrangement.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
15,297
28,115
-
0
-
0
In two to five years
-
0
15,201
-
0
-
0
15,297
43,316
-
-

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
499,015
458,006

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
581,411
1,336,768
Revaluation of properties
2,725,515
2,725,515
3,306,926
4,062,283
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
4,062,283
-
Charge to profit or loss
(755,357)
-
Liability at 31 March 2024
3,306,926
-
RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Deferred taxation
(Continued)
- 29 -

The deferred tax liability in relation to accelerated capital allowances set out above is expected to reverse within 3 years. The deferred tax which relates to the revaluation of properties will reverse when the properties are sold.

 

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8,483,286
11,483,286
8,483,286
11,483,286
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
3,000,000
-
3,000,000
-
Preference shares classified as equity
3,000,000
-
Total equity share capital
11,483,286
11,483,286

On 28 March 2024, by Ordinary Resolution, the company converted 3,000,000 Ordinary Shares of £1 each, into 3,000,000 Preference Shares of £1 each. The Preference Shares of £1 each are entitled to a fixed cumulative, non-compounding, preferential dividend at the rate of 8% per annum.

24
Events after the reporting date

On 3 April 2024, by Special Resolution, the company cancelled in full 7,483,286 Ordinary Shares of £1 each and crediting the amount by which the share capital is so reduced to distributable reserves.

 

On 23 April 2024, the company entered into a Deed of Waiver of the outstanding loan due from subsidiary company Randolph Hill Nursing Homes Limited. This amount had been fully provided against in previous years. Following the waiver an application to strike off Randolph Hill Nursing Homes Limited was submitted to Companies House. The striking off was completed on 30 June 2024.

25
Related party transactions

Included in creditors are amounts due of £3,046,334 at the balance sheet date, to the Elliot S Nichol's Estate, which are now shareholder loans.

 

The company has taken advantage of the exemption in s33.1A of FRS 102 from the requirement to disclose transactions with wholly owned group companies.

RANDOLPH HILL NURSING HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
26
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(2,895,784)
927,444
Adjustments for:
Taxation (credited)/charged
(43,210)
613,667
Finance costs
1,376,112
963,096
Investment income
(1,348)
(1,498)
Loss on disposal of tangible fixed assets
7,710
-
Depreciation and impairment of tangible fixed assets
758,463
285,361
Movements in working capital:
(Increase)/decrease in stocks
(5,280)
261
Decrease/(increase) in debtors
1,278,239
(85,667)
(Decrease)/increase in creditors
(81,992)
174,458
Cash generated from operations
392,910
2,877,122
Difference
-
404,578
Per cash flow statement page
392,910
3,281,700
27
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
479,762
1,025,727
1,505,489
Borrowings excluding overdrafts
(28,895,423)
(3,205,804)
(32,101,227)
Obligations under finance leases
(43,316)
28,019
(15,297)
(28,458,977)
(2,152,058)
(30,611,035)
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