245 true false false false true true false false false false false false true false false No description of principal activity 2023-01-01 Sage Accounts Production Advanced 2023 - FRS102_2023 760,737 9,089 10 2 20 2,507,295 2,507,295 2,415,680 2,415,680 1 1 1 xbrli:pure xbrli:shares iso4217:GBP 06712858 2023-01-01 2023-12-31 06712858 2023-12-31 06712858 2022-12-31 06712858 2022-01-01 2022-12-31 06712858 2022-12-31 06712858 2021-12-31 06712858 bus:Consolidated 2023-01-01 2023-12-31 06712858 core:NetGoodwill 2023-01-01 2023-12-31 06712858 bus:Consolidated core:NetGoodwill 2023-01-01 2023-12-31 06712858 bus:Consolidated core:Subsidiary1 2023-01-01 2023-12-31 06712858 bus:Consolidated core:Subsidiary2 2023-01-01 2023-12-31 06712858 bus:Consolidated core:Subsidiary3 2023-01-01 2023-12-31 06712858 bus:Consolidated core:Subsidiary4 2023-01-01 2023-12-31 06712858 core:LandBuildings core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06712858 bus:Consolidated core:LandBuildings core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06712858 core:FurnitureFittings 2023-01-01 2023-12-31 06712858 bus:Consolidated core:FurnitureFittings 2023-01-01 2023-12-31 06712858 bus:RegisteredOffice 2023-01-01 2023-12-31 06712858 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 06712858 bus:Consolidated bus:OrdinaryShareClass1 2023-01-01 2023-12-31 06712858 bus:LeadAgentIfApplicable 2023-01-01 2023-12-31 06712858 bus:Consolidated bus:LeadAgentIfApplicable 2023-01-01 2023-12-31 06712858 bus:Director2 2023-01-01 2023-12-31 06712858 bus:Director3 2023-01-01 2023-12-31 06712858 bus:Consolidated bus:Director1 2023-01-01 2023-12-31 06712858 bus:Consolidated 2023-12-31 06712858 bus:Consolidated core:WithinOneYear 2023-12-31 06712858 bus:Consolidated core:WithinOneYear 2022-12-31 06712858 core:WithinOneYear 2023-12-31 06712858 core:WithinOneYear 2022-12-31 06712858 bus:Consolidated core:NetGoodwill 2023-12-31 06712858 bus:Consolidated core:LandBuildings core:OwnedOrFreeholdAssets 2022-12-31 06712858 bus:Consolidated core:FurnitureFittings 2022-12-31 06712858 bus:Consolidated 2022-12-31 06712858 bus:Consolidated core:LandBuildings core:OwnedOrFreeholdAssets 2023-12-31 06712858 bus:Consolidated core:FurnitureFittings 2023-12-31 06712858 bus:Consolidated 2022-01-01 2022-12-31 06712858 bus:Consolidated 2022-12-31 06712858 core:RetainedEarningsAccumulatedLosses 2022-12-31 06712858 core:RetainedEarningsAccumulatedLosses 2021-12-31 06712858 core:RetainedEarningsAccumulatedLosses 2023-12-31 06712858 core:RetainedEarningsAccumulatedLosses 2022-12-31 06712858 bus:Consolidated core:ShareCapital 2023-12-31 06712858 bus:Consolidated core:ShareCapital 2022-12-31 06712858 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2023-12-31 06712858 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2022-12-31 06712858 core:ShareCapital 2023-12-31 06712858 core:ShareCapital 2022-12-31 06712858 bus:Consolidated core:UKTax 2023-01-01 2023-12-31 06712858 core:CostValuation core:Non-currentFinancialInstruments 2023-12-31 06712858 core:Non-currentFinancialInstruments core:ProvisionsForImpairmentInvestments 2023-12-31 06712858 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 06712858 core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 06712858 bus:Consolidated core:LandBuildings core:OwnedOrFreeholdAssets 2022-12-31 06712858 bus:Consolidated core:FurnitureFittings 2022-12-31 06712858 bus:Consolidated bus:LeadAgentIfApplicable 2022-01-01 2022-12-31 06712858 bus:Consolidated bus:Director1 2022-12-31 06712858 bus:Consolidated bus:Director1 2022-01-01 2022-12-31 06712858 bus:SmallEntities 2023-01-01 2023-12-31 06712858 bus:Audited 2023-01-01 2023-12-31 06712858 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 06712858 bus:FullAccounts 2023-01-01 2023-12-31 06712858 bus:OrdinaryShareClass1 2023-12-31 06712858 bus:Consolidated bus:OrdinaryShareClass1 2023-12-31 06712858 bus:OrdinaryShareClass1 2022-12-31 06712858 bus:Consolidated bus:OrdinaryShareClass1 2022-12-31 06712858 bus:Consolidated core:Exceptional 2023-01-01 2023-12-31 06712858 core:Exceptional 2023-01-01 2023-12-31 06712858 1 bus:Consolidated 2023-01-01 2023-12-31 06712858 core:Exceptional 1 bus:Consolidated 2023-01-01 2023-12-31 06712858 core:Exceptional 1 2023-01-01 2023-12-31
COMPANY REGISTRATION NUMBER: 06712858
Abbey Healthcare (Festival) Limited
Financial Statements
For the year ended
31 December 2023
Abbey Healthcare (Festival) Limited
Strategic Report
Year ended 31 December 2023
The directors present the strategic report and the financial statements for the year ended 31 December 2023. Business review Abbey Healthcare (Festival) Limited owns Festival Care Limited (which in turn owns Applecroft Care Home Limited and Barleycroft Care Home Limited), and Elmcroft Limited. These companies own and operate care homes in England. Revenue increased in the year from £9,681,000 to £11,446,000. As part of the UK government's response to the pandemic, the group received grants and income totalling £nil (2022 - £151,000), to cover the additional costs incurred in relation to PPE and increased staff costs. This translated into a profit before tax of £786,000 (2022 - £9,000 loss). Principal risks and uncertainties Management monitors risks on a weekly and monthly basis. The primary concern of the management is the quality of care. There are dedicated regional managers and Operational Directors responsible for supporting the Home in provision of high quality care services. The major financial risk to the company is the increase in its cost base, primarily relating to the National Living Wage. The group is exposed to credit risk with its customers, albeit major customers are public sector, and therefore with limited credit risk. Pricing risk is limited to the risk associated with negotiating annual price increases. Liquidity and cashflow risk could arise in the event of a downturn in trading. However, in this event, sister companies in the group can provide liquidity if required. The group is exposed to finance risk due to its exposure to third party lenders and borrowings in the Company. Staffing remains a key risk as there is a nationwide shortage of nurses and care staff. Cost inflation also remains a risk for the business. Financial and other key performance indicators The key financial and operational performance indicators monitored by management include regulatory reviews,internal quality reviews, occupancy ratios, average weekly fees and cost to revenue ratios.
This report was approved by the board of directors on 10 September 2024 and signed on behalf of the board by:
A Taylor
Director
Registered office:
Sutherland House
70-78 West Hendon Broadway
London
NW9 7BT
Abbey Healthcare (Festival) Limited
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the group for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
A Taylor
M Cloonan
Dividends
The directors do not recommend the payment of a dividend.
Employment of disabled persons
We aim to:- (a) give full and fair consideration to applications for employment by the company made by disabled persons, having regard to their particular aptitudes and abilities, (b) continue the employment of, and for arranging appropriate training for, employees of the company who have become disabled persons during the period when they were employed by the company, and (c) otherwise for the training, career development and promotion of disabled persons employed by the company.
Employee involvement
We aim to:- (a) provide employees systematically with information on matters of concern to them as employees, (b) consult employees or their representatives on a regular basis so that the views of employees can be taken into account in making decisions which are likely to affect their interests, (c) encourage the involvement of employees in the company’s performance (d) achieve a common awareness on the part of all employees of the financial and economic factors affecting the performance of the company.
Disclosure of information in the strategic report
The company has chosen to include several items in the strategic report which would otherwise be required to be disclosed in the directors report. These include information on the exposure to financial risk, price risk, credit risk, liquidity risk and cash flow risk and an indication of the likely future developments in the business of the company.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 the company and 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 judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.
This report was approved by the board of directors on 10 September 2024 and signed on behalf of the board by:
A Taylor
Director
Registered office:
Sutherland House
70-78 West Hendon Broadway
London
NW9 7BT
Abbey Healthcare (Festival) Limited
Independent Auditor's Report to the Members of Abbey Healthcare (Festival) Limited
Year ended 31 December 2023
Opinion
We have audited the financial statements of Abbey Healthcare (Festival) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the consolidated statement of comprehensive income, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes, 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 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: - give a true and fair view of the state of the group's and of the parent company's 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; - 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 auditor's 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 or 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 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its 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: - 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 directors' responsibilities statement, 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 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, and from our commercial knowledge and experience of the company and sector in which it operates; - 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 and taxation legislation, Care Home legislation 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; - reading the minutes of meetings of those charged with governance; - inquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 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 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.
Jonathan Day
(Senior Statutory Auditor)
For and on behalf of
Streets Audit LLP
Chartered accountants & statutory auditor
Enterprise House
38 Tyndall Court
Commerce Road
Lynch Wood
Peterborough
Cambridgeshire
PE2 6LR
25 September 2024
Abbey Healthcare (Festival) Limited
Consolidated Statement of Comprehensive Income
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
11,445,942
9,681,295
Cost of sales
7,476,570
6,894,324
-------------
------------
Gross profit
3,969,372
2,786,971
Administrative expenses
2,390,991
2,000,601
Other operating income
5
13,824
171,958
Exceptional item
( 325,097)
------------
------------
Operating profit
6
1,917,302
958,328
Other interest receivable and similar income
11
12,120
9,803
Interest payable and similar expenses
12
1,143,381
977,220
------------
------------
Profit/(loss) before taxation
786,041
( 9,089)
Tax on profit/(loss)
13
25,304
---------
-------
Profit/(loss) for the financial year and total comprehensive income
760,737
( 9,089)
---------
-------
All the activities of the group are from continuing operations.
Abbey Healthcare (Festival) Limited
Company Statement of Income and Retained Earnings
Year ended 31 December 2023
2023
2022
Note
£
£
Profit/(loss) for the financial year and total comprehensive income
( 150,605)
( 194,278)
Retained losses at the start of the year
( 5,849,980)
( 5,655,702)
------------
------------
Retained losses at the end of the year
( 6,000,585)
( 5,849,980)
------------
------------
Abbey Healthcare (Festival) Limited
Consolidated Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
15
9,814,570
9,874,449
Current assets
Debtors
17
22,056,700
17,796,965
Cash at bank and in hand
631,249
2,473,784
-------------
-------------
22,687,949
20,270,749
Creditors: amounts falling due within one year
18
41,247,248
39,647,955
-------------
-------------
Net current liabilities
18,559,299
19,377,206
-------------
-------------
Total assets less current liabilities
( 8,744,729)
( 9,502,757)
Provisions
19
2,709
------------
------------
Net liabilities
( 8,744,729)
( 9,505,466)
------------
------------
Capital and reserves
Called up share capital
22
1
1
Profit and loss account
23
( 8,744,730)
( 9,505,467)
------------
------------
Shareholders deficit
( 8,744,729)
( 9,505,466)
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 10 September 2024 , and are signed on behalf of the board by:
A Taylor
Director
Company registration number: 06712858
Abbey Healthcare (Festival) Limited
Company Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Current assets
Debtors
17
5,759,069
5,100,897
Cash at bank and in hand
3,145
3,145
------------
------------
5,762,214
5,104,042
Creditors: amounts falling due within one year
18
11,762,798
10,954,021
-------------
-------------
Net current liabilities
6,000,584
5,849,979
------------
------------
Total assets less current liabilities
( 6,000,584)
( 5,849,979)
------------
------------
Capital and reserves
Called up share capital
22
1
1
Profit and loss account
23
( 6,000,585)
( 5,849,980)
------------
------------
Shareholders deficit
( 6,000,584)
( 5,849,979)
------------
------------
The loss for the financial year of the parent company was £ 150,605 (2022: £ 194,278 ).
These financial statements were approved by the board of directors and authorised for issue on 10 September 2024 , and are signed on behalf of the board by:
A Taylor
Director
Company registration number: 06712858
Abbey Healthcare (Festival) Limited
Consolidated Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit/(loss) for the financial year
760,737
( 9,089)
Adjustments for:
Depreciation of tangible assets
685,216
522,622
Government grant income
( 151,999)
Other interest receivable and similar income
( 12,120)
( 9,803)
Interest payable and similar expenses
1,143,381
977,220
Tax on loss
25,304
Accrued expenses
224,430
191,800
Changes in:
Trade and other debtors
( 4,259,735)
( 737,759)
Trade and other creditors
( 380,044)
393,729
Provisions and employee benefits
( 2,709)
------------
------------
Cash generated from operations
( 1,815,540)
1,176,721
Interest paid
( 1,143,381)
( 977,220)
Interest received
12,120
9,803
Tax paid
( 25,304)
------------
------------
Net cash (used in)/from operating activities
( 2,972,105)
209,304
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 625,337)
( 892,272)
Proceeds from sale of tangible assets
271
------------
------------
Net cash used in investing activities
( 625,337)
( 892,001)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
1,875,688
( 165,927)
Proceeds from loans from group undertakings
( 120,781)
( 656,786)
Government grant income
151,999
------------
------------
Net cash from/(used in) financing activities
1,754,907
( 670,714)
------------
------------
Net decrease in cash and cash equivalents
( 1,842,535)
( 1,353,411)
Cash and cash equivalents at beginning of year
2,473,784
3,827,195
------------
------------
Cash and cash equivalents at end of year
631,249
2,473,784
------------
------------
Abbey Healthcare (Festival) Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Sutherland House, 70-78 West Hendon Broadway, London, NW9 7BT.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.The financial statements are prepared in sterling, which is the functional currency of the entity. Going concern The group has made a profit for the year and has net liabilities at the statement of financial position date but does have group support accordingly the financial statements have been prepared on a going concern basis. The directors are satisfied that the company has group support and that group can provide that support such that it has the ability to meet its financial obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements. Disclosure exemptions The group is not entitled to disclosure exemptions as defined in FRS102. Consolidation The financial statements consolidate the financial statements of Abbey Healthcare (Festival) Limited and all of its subsidiary undertakings. The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes. The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In preparing these financial statements, the directors have made the following judgements:- 1 Determine whether there are indicators of impairment of the tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. Other key sources of estimation uncertainty:- 1 Tangible fixed assets Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Revenue recognition Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered. Exceptional items Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount. Income tax The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. 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. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years. Amortisation Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill - 10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates. Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - 2% straight line
Fixtures and fittings - 20% straight line
Investments Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Impairment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
The group holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the group and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
11,445,942
9,681,295
-------------
------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Government grant income
151,999
Other operating income
13,824
19,959
--------
---------
13,824
171,958
--------
---------
6. Operating loss
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
685,216
522,622
Impairment of trade debtors
(48,817)
18,275
---------
---------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
14,100
12,000
--------
--------
8. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
245
431
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
6,247,733
5,871,738
Social security costs
562,688
460,806
Other pension costs
15,167
17,204
------------
------------
6,825,588
6,349,748
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
46,840
67,405
--------
--------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
2
2
----
----
10. Exceptional items
Group
Company
2023
2022
2023
2022
£
£
£
£
Labour cost
325,097
325,097
---------
----
---------
----
The directors have released a previous labour cost creditor as this is no longer considered to be liability of the company.
11. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
1,121
Interest from group undertakings
10,999
9,803
--------
-------
12,120
9,803
--------
-------
12. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
1,030,897
553,634
Interest on obligations under finance leases and hire purchase contracts
1,827
3,700
Interest due to group undertakings
64,726
180,759
Other interest payable and similar charges
45,931
239,127
------------
---------
1,143,381
977,220
------------
---------
13. Tax on loss
Major components of tax income
2023
2022
£
£
Current tax:
Adjustments in respect of prior periods
25,304
Tax on loss
25,304
--------
----
Reconciliation of tax expense
The tax assessed on the profit/(loss) on ordinary activities for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 70.50 % (2022: 57 %).
2023
2022
£
£
Profit/(loss) on ordinary activities before taxation
786,041
( 9,089)
---------
-------
Profit/(loss) on ordinary activities by rate of tax
234,758
68,151
Adjustment to tax charge in respect of prior periods
25,304
Effect of revenue exempt from tax
( 3)
Utilisation of tax losses
( 234,755)
( 68,151)
---------
--------
Tax on loss
25,304
---------
--------
14. Intangible assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
2,507,295
------------
Amortisation
At 1 January 2023 and 31 December 2023
2,507,295
------------
Carrying amount
At 1 January 2023 and 31 December 2023
------------
At 31 December 2022
------------
The company has no intangible assets.
15. Tangible assets
Group
Freehold property
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023
10,269,643
2,166,717
12,436,360
Additions
625,337
625,337
-------------
------------
-------------
At 31 December 2023
10,269,643
2,792,054
13,061,697
-------------
------------
-------------
Depreciation
At 1 January 2023
1,852,450
709,461
2,561,911
Charge for the year
181,811
503,405
685,216
-------------
------------
-------------
At 31 December 2023
2,034,261
1,212,866
3,247,127
-------------
------------
-------------
Carrying amount
At 31 December 2023
8,235,382
1,579,188
9,814,570
-------------
------------
-------------
At 31 December 2022
8,417,193
1,457,256
9,874,449
-------------
------------
-------------
The company has no tangible assets.
16. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 January 2023 and 31 December 2023
2,415,680
------------
Impairment
At 1 January 2023 and 31 December 2023
2,415,680
------------
Carrying amount
At 1 January 2023 and 31 December 2023
------------
At 31 December 2022
------------
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
Applecroft Care Home Limited
Ordinary
100
Barleycroft Care Home Limited
Ordinary
100
Elmcroft Care Home Limited
Ordinary
100
Festival Care Homes Limited
Ordinary
100
17. Debtors
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
800,288
717,909
Amounts owed by group undertakings
20,521,749
16,640,714
5,758,969
5,100,797
Prepayments and accrued income
331,038
435,592
Other debtors
403,625
2,750
100
100
-------------
-------------
------------
------------
22,056,700
17,796,965
5,759,069
5,100,897
-------------
-------------
------------
------------
Included in debtors above are balances owed to other group companies which do not form part of the consolidated group and which do not need to be removed on consolidation.
18. Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
9,163,219
7,287,531
Trade creditors
890,558
1,182,717
Amounts owed to group undertakings
29,599,043
29,719,824
11,762,792
10,954,015
Accruals and deferred income
1,232,513
1,008,083
Social security and other taxes
351,785
111,528
Other creditors
10,130
338,272
6
6
-------------
-------------
-------------
-------------
41,247,248
39,647,955
11,762,798
10,954,021
-------------
-------------
-------------
-------------
Bank loans are secured by a fixed and floating charge over all of the group's assets.
Included in creditors above are balances owed to other group companies which do not form part of the consolidated group and which do not need to be removed on consolidation.
19. Provisions
Group
Provision
£
At 1 January 2023
2,709
Charge against provision
( 2,709)
-------
At 31 December 2023
-------
The company does not have any provisions.
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 15,167 (2022: £ 17,204 ).
21. Government grants
The amounts recognised in the financial statements for government grants are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Recognised in other operating income:
Government grants recognised directly in income
151,999
----
---------
----
----
22. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
1
1
1
1
----
----
----
----
23. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
2,473,784
(1,842,535)
631,249
Debt due within one year
(37,007,355)
(1,754,907)
(38,762,262)
-------------
------------
-------------
( 34,533,571)
( 3,597,442)
( 38,131,013)
-------------
------------
-------------
25. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company and its subsidiary undertakings:
2023
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
P Sodhi
----
----
----
2022
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
P Sodhi
690
690
----
----
----
Abbey Healthcare (Festival) Limited
Notes to the Financial Statements (continued)
Year ended 31 December 2023
26. Related party transactions
Company
No key management remuneration was paid by the company. Group The group paid key management remuneration totalling £34,738 (2022 - £67,405). The company and group has taken exemption under FRS102 from disclosing transactions with wholly owned members of the same group.