Company registration number 02288951 (England and Wales)
ASKHAM VILLAGE COMMUNITY LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
ASKHAM VILLAGE COMMUNITY LIMITED
COMPANY INFORMATION
Directors
Mr S P Giga
Mrs S S Giga
Mrs A Begum-Nasser
Secretary
Mrs S S Giga
Company number
02288951
Registered office
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Auditor
RDP Newmans LLP
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Business address
13 Benwick Road
Doddington
March
CAmbridgeshire
PE15 0TX
Bankers
Natwest Bank Plc
March Branch
18 Broad Street
March
Cambs
PE15 8TN
HSBC
City Corporate Banking Centre
60 Queen Victoria Street
London
EC4N 4TR
Barclays Bank Plc
1 Churchill Place
London
E14 5HP
ASKHAM VILLAGE COMMUNITY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
ASKHAM VILLAGE COMMUNITY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 September 2023.
The principal activity of the company and group continued to be that of operating care homes providing nursing and residential care and rehabilitation for the elderly and young physically disabled.
Review of the business
This year has been a challenging year with the continuing pressure on costs. The business overall continues to demonstrate resilience and has managed to uphold financial performance as well as regulatory standards despite the challenges.
Although the turnover has increased by 8.66%, gross margins have decreased from 33.26% to 28.21% due to a larger increase in cost of sales expenditure. More specifically this increase in cost of sales is driven by increases in staff costs. Net profit before tax has decreased by £457,087 due to a combination of the increase in cost of sales as explained above and a decrease in operating income.
The group remains in a strong financial position at the balance sheet date with net assets being £12,232,513 (2022: £12,445,522).
Principal risks and uncertainties
The directors believe that the key business risks are in respect of costs anticipated to increase at a rate far higher than revenue is expected to keep pace with. This will squeeze margins at a time when the business is also experiencing the longer term effect of the coronavirus pandemic in terms of staff well-being and regulatory adjustments. In view of these risks and uncertainties the directors regularly review their operations to mitigate the impact of such risks and uncertainties.
Treasury operations and financial instruments:
The company operates a treasury function which is responsible for managing the liquidity and interest risks associated with the company’s activities.
Liquidity risk:
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk:
The company is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company does not use interest rate derivatives to manage the mix of fixed and variable rate debts.
Foreign currency risk:
The company does not deal in foreign currencies and hence there is no such exposure.
Credit risk:
Investments of cash surpluses and borrowings are made through banks which must fulfil credit rating criteria approved by the Board.
All residents who are admitted pay on a timely basis. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Development and performance
This year has been another challenging one in regards to above average inflationary pressure on costs. As a result of these challenges, the business has experienced a slight decline in performance. Despite this, compliance requirements continue to be met and operationally the business remains sound. All things considered, the directors are exploring alternative ways to bolster revenue outside of inflationary growth.
ASKHAM VILLAGE COMMUNITY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Key performance indicators
The Key Performance Indicators for the group over the period are detailed below:
2023 2022
Turnover (GBP £'000) 9,331 8,587
Gross profit margin % 28.21 33.26
Operating profit margin % 9.33 13.89
Interest cover 2.04 5.89
Mrs S S Giga
Director
7 September 2024
2024-09-07
ASKHAM VILLAGE COMMUNITY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £52,800 (2022: £48,000). The directors do not recommend payment of a further 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 S P Giga
Mrs S S Giga
Mrs A Begum-Nasser
Financial instruments
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. To minimise this risk the directors regularly monitor group liquidity and ongoing working capital requirements.
Interest rate risk
The business is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group does not use interest rate derivatives to manage the mix of fixed and variable rate debts but does closely monitor its interest cover ratio.
Credit risk
All residents who are admitted, pay on a timely basis. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Research and development
The business is continually undertaking research and development to improve its range of services and facilities.
Future developments
The directors anticipate the business environment will remain competitive. The company is in a good financial position and the risks that have been identified are well managed. The directors are confident in the company's ability to maintain and build on it's position within the industry.
Auditor
RDP Newmans LLP are deemed to be re-appointed under section 487(2) of the Companies Act 2006.
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 group 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 group is aware of that information.
ASKHAM VILLAGE COMMUNITY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
On behalf of the board
Mrs S S Giga
Director
7 September 2024
ASKHAM VILLAGE COMMUNITY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
ASKHAM VILLAGE COMMUNITY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASKHAM VILLAGE COMMUNITY LIMITED
- 6 -
Opinion
We have audited the financial statements of Askham Village Community Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
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.
ASKHAM VILLAGE COMMUNITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASKHAM VILLAGE COMMUNITY 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:
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 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 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.
The extent to which the audit was considered capable of detecting irregularities including fraud
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 group through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
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 group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and Care Quality Comission;
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 group’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.
ASKHAM VILLAGE COMMUNITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASKHAM VILLAGE COMMUNITY LIMITED
- 8 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
reviewed and tested journal entries to identify unusual transactions and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; 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:
reviewing and agreeing financial statement disclosures and testing to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence with HMRC and bankers; and
reviewing Care Quality Commission inspection reports.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. 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 enquiry 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 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.
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.
A R Gangola FCA (Senior Statutory Auditor)
For and on behalf of RDP Newmans LLP
13 September 2024
Chartered Accountants
Statutory Auditor
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
ASKHAM VILLAGE COMMUNITY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
9,331,244
8,587,200
Cost of sales
(6,698,984)
(5,731,237)
Gross profit
2,632,260
2,855,963
Administrative expenses
(1,817,069)
(1,801,793)
Other operating income
55,659
138,576
Operating profit
4
870,850
1,192,746
Interest receivable and similar income
7
78,592
13,908
Interest payable and similar expenses
8
(402,397)
(202,522)
Profit before taxation
547,045
1,004,132
Tax on profit
9
(234,277)
(233,118)
Profit for the financial year
24
312,768
771,014
Other comprehensive income
Tax relating to other comprehensive income
(472,977)
Total comprehensive income for the year
(160,209)
771,014
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ASKHAM VILLAGE COMMUNITY LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
16,615,632
17,013,952
Investments
13
1,000
1,000
16,616,632
17,014,952
Current assets
Stocks
15
20,000
16,000
Debtors falling due after more than one year
16
162,525
162,525
Debtors falling due within one year
16
2,390,144
1,244,774
Cash at bank and in hand
3,050,260
3,745,108
5,622,929
5,168,407
Creditors: amounts falling due within one year
17
(1,934,182)
(1,625,629)
Net current assets
3,688,747
3,542,778
Total assets less current liabilities
20,305,379
20,557,730
Creditors: amounts falling due after more than one year
18
(5,876,667)
(6,450,000)
Provisions for liabilities
Deferred tax liability
20
2,196,199
1,662,208
(2,196,199)
(1,662,208)
Net assets
12,232,513
12,445,522
Capital and reserves
Called up share capital
22
8,000
8,000
Revaluation reserve
23
6,768,755
7,370,037
Profit and loss reserves
24
5,455,758
5,067,485
Total equity
12,232,513
12,445,522
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 7 September 2024 and are signed on its behalf by:
07 September 2024
Mrs S S Giga
Director
Company registration number 02288951 (England and Wales)
ASKHAM VILLAGE COMMUNITY LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
16,615,632
17,013,952
Investments
13
1,100
1,100
16,616,732
17,015,052
Current assets
Stocks
15
20,000
16,000
Debtors falling due after more than one year
16
162,525
162,525
Debtors falling due within one year
16
2,249,158
1,160,332
Cash at bank and in hand
2,615,615
3,473,382
5,047,298
4,812,239
Creditors: amounts falling due within one year
17
(2,089,002)
(1,747,890)
Net current assets
2,958,296
3,064,349
Total assets less current liabilities
19,575,028
20,079,401
Creditors: amounts falling due after more than one year
18
(5,876,667)
(6,450,000)
Provisions for liabilities
Deferred tax liability
20
2,196,199
1,662,208
(2,196,199)
(1,662,208)
Net assets
11,502,162
11,967,193
Capital and reserves
Called up share capital
22
8,000
8,000
Revaluation reserve
23
6,768,755
7,370,037
Profit and loss reserves
24
4,725,407
4,589,156
Total equity
11,502,162
11,967,193
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 £60,746 (2022: £529,300).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
ASKHAM VILLAGE COMMUNITY LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023
30 September 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 7 September 2024 and are signed on its behalf by:
07 September 2024
Mrs S S Giga
Director
Company registration number 02288951 (England and Wales)
ASKHAM VILLAGE COMMUNITY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
8,000
7,498,342
4,216,166
11,722,508
Year ended 30 September 2022:
Profit and total comprehensive income
-
-
771,014
771,014
Dividends
10
-
-
(48,000)
(48,000)
Transfers
-
(128,305)
128,305
-
Balance at 30 September 2022
8,000
7,370,037
5,067,485
12,445,522
Year ended 30 September 2023:
Profit for the year
-
-
312,768
312,768
Other comprehensive income:
Tax relating to other comprehensive income
-
(472,977)
(472,977)
Total comprehensive income
-
(472,977)
312,768
(160,209)
Dividends
10
-
-
(52,800)
(52,800)
Transfers
-
(128,305)
128,305
-
Balance at 30 September 2023
8,000
6,768,755
5,455,758
12,232,513
ASKHAM VILLAGE COMMUNITY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
8,000
7,498,342
3,979,551
11,485,893
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
529,300
529,300
Dividends
10
-
-
(48,000)
(48,000)
Transfers
-
(128,305)
128,305
-
Balance at 30 September 2022
8,000
7,370,037
4,589,156
11,967,193
Year ended 30 September 2023:
Profit for the year
-
-
60,746
60,746
Other comprehensive income:
Tax relating to other comprehensive income
-
(472,977)
(472,977)
Total comprehensive income
-
(472,977)
60,746
(412,231)
Dividends
10
-
-
(52,800)
(52,800)
Transfers
-
(128,305)
128,305
-
Balance at 30 September 2023
8,000
6,768,755
4,725,407
11,502,162
ASKHAM VILLAGE COMMUNITY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
664,223
1,823,918
Interest paid
(402,397)
(202,522)
Income taxes paid
(326,260)
(569,499)
Net cash (outflow)/inflow from operating activities
(64,434)
1,051,897
Investing activities
Purchase of tangible fixed assets
(125,394)
(85,008)
Repayment of loans
42,521
(213,946)
Interest received
78,592
13,908
Net cash used in investing activities
(4,281)
(285,046)
Financing activities
Repayment of bank loans
(573,333)
(573,333)
Dividends paid to equity shareholders
(52,800)
(48,000)
Net cash used in financing activities
(626,133)
(621,333)
Net (decrease)/increase in cash and cash equivalents
(694,848)
145,518
Cash and cash equivalents at beginning of year
3,745,108
3,599,590
Cash and cash equivalents at end of year
3,050,260
3,745,108
ASKHAM VILLAGE COMMUNITY LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
456,663
1,782,156
Interest paid
(402,397)
(202,522)
Income taxes paid
(269,562)
(513,997)
Net cash (outflow)/inflow from operating activities
(215,296)
1,065,637
Investing activities
Purchase of tangible fixed assets
(125,394)
(85,008)
Repayment of loans
42,521
(213,946)
Interest received
66,535
13,908
Net cash used in investing activities
(16,338)
(285,046)
Financing activities
Repayment of bank loans
(573,333)
(573,333)
Dividends paid to equity shareholders
(52,800)
(48,000)
Net cash used in financing activities
(626,133)
(621,333)
Net (decrease)/increase in cash and cash equivalents
(857,767)
159,258
Cash and cash equivalents at beginning of year
3,473,382
3,314,124
Cash and cash equivalents at end of year
2,615,615
3,473,382
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 17 -
1
Accounting policies
Company information
Askham Village Community Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is Lynwood House, 373-375 Station Road, Harrow, Middlesex, HA1 2AW.
The group consists of Askham Village Community 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 land and buildings at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
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.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Askham Village Community 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 30 September 2023. 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for residential and care services provided in the normal course of business.
Revenue from the provision of residential and care services is recognised in the period in which the services were performed.
1.6
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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line (building element only)
Plant and equipment
10% - 20% reducing balance
Fixtures, fittings and equipment
25% reducing balance
Motor vehicles
25% reducing balance
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.
1.7
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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.
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.
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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
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.
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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.
1.13
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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 group’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.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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.
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Determining residual values of useful economic lives of property, plant and equipment
The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by the directors. The actual lives of these assets can vary depending on a variety of a factors, including technological innovation, product life cycles, and maintenance programmes.
Judgement is applied by the directors when determining the residual values for plant, machinery and equipment. When determining the residual value, the directors aim to assess the amount that the group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Residential and care services
9,331,244
8,587,200
2023
2022
£
£
Other revenue
Interest income
78,592
13,908
Grants received
33,640
107,685
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(33,640)
(107,685)
Fees payable to the group's auditor for the audit of the group's financial statements
12,000
16,500
Depreciation of owned tangible fixed assets
523,714
546,424
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
3
3
3
3
Administration
15
11
15
11
Nurses and carers
213
188
213
188
Total
231
202
231
202
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,103,694
4,190,904
5,103,694
4,190,904
Social security costs
422,570
345,553
422,570
345,553
Pension costs
153,500
143,810
153,500
143,810
5,679,764
4,680,267
5,679,764
4,680,267
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
106,500
106,500
Company pension contributions to defined contribution schemes
80,000
80,000
186,500
186,500
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
64,671
6,962
Other interest income
13,921
6,946
Total income
78,592
13,908
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
7
Interest receivable and similar income
(Continued)
- 24 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
64,671
6,962
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
402,397
202,522
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
173,263
235,805
Deferred tax
Origination and reversal of timing differences
61,014
(2,687)
Total tax charge
234,277
233,118
As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%. As the company’s financial year straddles this date, a blended corporation tax rate of 22% has been applied which is calculated by apportioning the two tax rates on a weighted basis for the proportion of the financial year for which each main tax rate was applicable.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
547,045
1,004,132
Expected tax charge based on the standard rate of corporation tax in the UK of 22.00% (2022: 19.00%)
120,350
190,785
Tax effect of expenses that are not deductible in determining taxable profit
1,458
133
Effect of change in corporation tax rate
26
-
Permanent capital allowances in excess of depreciation
(2,606)
(58,934)
Depreciation on assets not qualifying for tax allowances
54,035
103,821
Deferred tax movements
61,014
(2,687)
Taxation charge
234,277
233,118
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
9
Taxation
(Continued)
- 25 -
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:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
472,977
-
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
52,800
48,000
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2022 and 30 September 2023
180,000
Amortisation and impairment
At 1 October 2022 and 30 September 2023
180,000
Carrying amount
At 30 September 2023
At 30 September 2022
Company
Goodwill
£
Cost
At 1 October 2022 and 30 September 2023
180,000
Amortisation and impairment
At 1 October 2022 and 30 September 2023
180,000
Carrying amount
At 30 September 2023
At 30 September 2022
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 October 2022
15,696,726
4,694,787
1,112,109
39,675
21,543,297
Additions
8,466
78,505
38,423
125,394
At 30 September 2023
15,705,192
4,773,292
1,150,532
39,675
21,668,691
Depreciation and impairment
At 1 October 2022
981,788
2,600,700
908,823
38,034
4,529,345
Depreciation charged in the year
245,615
217,260
60,429
410
523,714
At 30 September 2023
1,227,403
2,817,960
969,252
38,444
5,053,059
Carrying amount
At 30 September 2023
14,477,789
1,955,332
181,280
1,231
16,615,632
At 30 September 2022
14,714,938
2,094,087
203,286
1,641
17,013,952
Company
Freehold land and buildings
Plant and equipment
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 October 2022
15,696,726
4,694,787
1,112,109
39,675
21,543,297
Additions
8,466
78,505
38,423
125,394
At 30 September 2023
15,705,192
4,773,292
1,150,532
39,675
21,668,691
Depreciation and impairment
At 1 October 2022
981,788
2,600,700
908,823
38,034
4,529,345
Depreciation charged in the year
245,615
217,260
60,429
410
523,714
At 30 September 2023
1,227,403
2,817,960
969,252
38,444
5,053,059
Carrying amount
At 30 September 2023
14,477,789
1,955,332
181,280
1,231
16,615,632
At 30 September 2022
14,714,938
2,094,087
203,286
1,641
17,013,952
Freehold land and buildings were revalued on 21 November 2019 by Jones Lang LaSalle, an independent expert firm of property and business valuers.
Land and buildings are carried at valuation. If land and buildings were measured using the historical cost model, the carrying amounts for the group would have been as follows:
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
12
Tangible fixed assets
(Continued)
- 27 -
2023
2022
£
£
Group
Cost
7,813,478
7,813,478
Accumulated depreciation
(1,577,818)
(1,421,548)
Carrying value
6,235,660
6,391,930
Company
Cost
7,813,478
7,813,478
Accumulated depreciation
(1,577,818)
(1,421,548)
Carrying value
6,235,660
6,391,930
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
100
100
Unlisted investments
1,000
1,000
1,000
1,000
1,000
1,000
1,100
1,100
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 October 2022 and 30 September 2023
1,000
Carrying amount
At 30 September 2023
1,000
At 30 September 2022
1,000
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 October 2022 and 30 September 2023
100
1,000
1,100
Carrying amount
At 30 September 2023
100
1,000
1,100
At 30 September 2022
100
1,000
1,100
14
Subsidiaries
Details of the company's subsidiaries at 30 September 2023 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Askham Services Limited (Company registration no 12952258)
1
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Lynwood House, 373-375 Station Road, Harrow, HA1 2AW
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
For the financial year ended 30 September 2023 Askham Services Limited was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies. Askham Village Community Limited guarantees the liabilities of the Askham Services Limited under section 479C of the Companies Act 2006 in respect of the year ended 30 September 2023.
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
20,000
16,000
20,000
16,000
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 29 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
772,948
651,527
323,678
286,441
Corporation tax recoverable
79,037
79,037
Amounts owed by group undertakings
-
-
308,284
280,644
Other debtors
1,472,170
534,633
1,472,170
534,633
Prepayments and accrued income
65,989
58,614
65,989
58,614
2,390,144
1,244,774
2,249,158
1,160,332
Amounts falling due after more than one year:
Corporation tax recoverable
162,525
162,525
162,525
162,525
Total debtors
2,552,669
1,407,299
2,411,683
1,322,857
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
573,333
573,333
573,333
573,333
Trade creditors
289,178
244,618
286,886
244,618
Amounts owed to group undertakings
460,146
313,473
Corporation tax payable
71,117
145,077
88,379
Other taxation and social security
254,443
170,234
82,717
59,516
Other creditors
383,510
298,254
383,510
298,254
Accruals and deferred income
362,601
194,113
302,410
170,317
1,934,182
1,625,629
2,089,002
1,747,890
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
5,876,667
6,450,000
5,876,667
6,450,000
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 30 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
6,450,000
7,023,333
6,450,000
7,023,333
Payable within one year
573,333
573,333
573,333
573,333
Payable after one year
5,876,667
6,450,000
5,876,667
6,450,000
The bank loans are secured by fixed and floating charges over the group's assets.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
255,227
194,213
Revaluations
1,940,972
1,467,995
2,196,199
1,662,208
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
255,227
194,213
Revaluations
1,940,972
1,467,995
2,196,199
1,662,208
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 October 2022
1,662,208
1,662,208
Charge to profit or loss
61,014
61,014
Charge to other comprehensive income
472,977
472,977
Liability at 30 September 2023
2,196,199
2,196,199
The deferred tax liability set out above in respect of capital allowances is expected to reverse.
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 31 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
153,500
143,810
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
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8,000
8,000
8,000
8,000
23
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
7,370,037
7,498,342
7,370,037
7,498,342
Deferred tax on revaluation of tangible assets
(472,977)
-
(472,977)
-
Transfer to retained earnings
(128,305)
(128,305)
(128,305)
(128,305)
At the end of the year
6,768,755
7,370,037
6,768,755
7,370,037
24
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
5,067,485
4,216,166
4,589,156
3,979,551
Profit for the year
312,768
771,014
60,746
529,300
Dividends
(52,800)
(48,000)
(52,800)
(48,000)
Transfer from revaluation reserve
128,305
128,305
128,305
128,305
At the end of the year
5,455,758
5,067,485
4,725,407
4,589,156
25
Financial commitments, guarantees and contingent liabilities
The parent company Askham Village Community Limited and its subsidiary, Askham Services Limited, have entered into an intragroup guarantee in favour of Barclays Bank PLC in respect of amounts borrowed by Askham Village Community Limited. The balance of the loan within Askham Village Community Limited at the year-end was £6,250,000 (2022: £7,023,333).
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 32 -
26
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
17,012
17,531
17,012
17,531
Between two and five years
-
12,369
-
12,369
17,012
29,900
17,012
29,900
27
Related party transactions
Transactions with related parties
The company has taken advantage of the exemption available in FRS102 Section 33 whereby it has not disclosed transactions with group companies.
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities with common directorship
981,000
-
Other related parties
15,000
15,000
Company
Entities with common directorship
981,000
-
Other related parties
15,000
15,000
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 33 -
28
Directors' transactions
Dividends totalling £52,800 (2022 - £48,000) were paid in the year in respect of shares held by the company's directors.
Loans have been granted by the group to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
2.25
76,908
20,093
632
(173,292)
(75,659)
2.25
414,940
100,000
10,046
-
524,986
491,848
120,093
10,678
(173,292)
449,327
29
Controlling party
The ultimate controlling interest is held by Mr Salim Giga and Mrs Salma Giga, who are directors and majority shareholders of the company.
30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
312,768
771,014
Adjustments for:
Taxation charged
234,277
233,118
Finance costs
402,397
202,522
Investment income
(78,592)
(13,908)
Depreciation and impairment of tangible fixed assets
523,714
546,424
Movements in working capital:
Increase in stocks
(4,000)
-
(Increase)/decrease in debtors
(1,108,854)
58,190
Increase in creditors
382,513
26,558
Cash generated from operations
664,223
1,823,918
ASKHAM VILLAGE COMMUNITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 34 -
31
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
60,746
529,300
Adjustments for:
Taxation charged
163,160
176,420
Finance costs
402,397
202,522
Investment income
(66,535)
(13,908)
Depreciation and impairment of tangible fixed assets
523,714
546,424
Movements in working capital:
Increase in stocks
(4,000)
-
(Increase)/decrease in debtors
(1,052,309)
138,939
Increase in creditors
429,490
202,459
Cash generated from operations
456,663
1,782,156
32
Analysis of changes in net debt - group
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
3,745,108
(694,848)
3,050,260
Borrowings excluding overdrafts
(7,023,333)
573,333
(6,450,000)
(3,278,225)
(121,515)
(3,399,740)
33
Analysis of changes in net debt - company
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
3,473,382
(857,767)
2,615,615
Borrowings excluding overdrafts
(7,023,333)
573,333
(6,450,000)
(3,549,951)
(284,434)
(3,834,385)
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