REGISTERED NUMBER: 08751823 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Lindisfarne Healthcare(Holdings) Limited |
REGISTERED NUMBER: 08751823 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Lindisfarne Healthcare(Holdings) Limited |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
Lindisfarne Healthcare(Holdings) Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Stephen Horrigan FCA |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
110 Whitchurch Road |
Cardiff |
CF14 3LY |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The group results for the financial year are set out in the attached profit & loss account and the balance sheet set's out the position of the group as at 31 December 2023. |
At the start of the year the shareholder and founder of the business died after a long illness having been cared for by her family for some years.This was a source of great sadness to the family and staff and had an impact upon the operations of the group during the grieving process.The family continue that legacy and have implemented improved working practices they are confident will maintain the high standards of care the business is known for and improve efficiencies without comprising standards. |
The group continues to operate a Nursing and Care home specializing in the care of the elderly and mentally informed ( EMI ). Turnover and underlying trading profitability increased during the year including the gross margins achieved. |
The directors in recent years have undertaken a programme of repairs and maintenance necessary to maintain the fabric of the buildings and equipment owned and operated by a subsidiary company which are now considered by the directors to be in good condition.. |
Having regard to the comments made above the directors considers the results for the year to be satisfactory and are confident that underlying profitability will improve in the forthcoming financial year as the company continues to maintain and consolidate it's position in a competitive market. |
As disclosed elsewhere in the accounts fixed assets held in a subsidiary which are stated at cost. In May 2015 a valuation was carried out which confirmed that the open market value of the underlying business is significantly in excess of the amounts at which it is stated in the group accounts. |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The director undertakes periodic reviews of the operating risks facing the group. |
The company and it's subsidiary are exposed to certain financial risks and the directors have developed and evaluated strategies and programmes on internal controls to address the principal risks identified. Those identified are controlled as follows : |
Credit Risk : The company's principal assets comprise investment in a subsidiary company and amounts due from that company. Provisions are made if required for irrecoverable amounts and impairment provision made where a loss event is identifiable and which could give rise to a reduction in the recoverability of cash flows. |
Liquidity Risk : In order to maintain liquidity to ensure that there are sufficient funds available for ongoing operations and future developments the company uses a mixture of long and short term debt finance. |
Cash Flow Risk : The trading activities of the company and it's subsidiary are all within the United Kingdom and therefore it is not expected to be exposed to exchange rate fluctuations and is also not concerned as to any impact the effects that Brexit might have. |
Interest rate risk: The subsidiary company has bank borrowings that are linked to bank base rate and costs have increased as a result of rise in the rates. The directors implemented a strategy of efficiencies designed to result in savings to meet these additional costs and have a strategy in place if this becomes unmanageable. |
Regular management accounts are prepared and reviewed by the director and trends and variances considered and investigated as to any impact upon the business and it's cash flow.Because of the straightforward nature of the trading operations in the directors analysis using Key Performance Indicators ( KPI'S ) is not necessary for an understanding of the development, performance or position of the business. |
Exposure to adverse movements in interest rates is not considered by the directors to be a significant risk as it is manageable within existing trading operations . |
FINANCIAL KEY PERFORMANCE INDICATORS |
One of the groups key indicators is wage costs expressed as a percentage of turnover. This information is confidential and regarded as commercially sensitive. However, the directors are of the view that the percentages achieved by the group are at an acceptable level particularly when increased costs as a result of the introduction of Auto Enrolment are taken into account. |
Given the straightforward nature of the business of the group the directors are of the opinion that analysis of performance using key performance indicators is not necessary for an understanding of the development, performance or position of the business of the group. |
ON BEHALF OF THE BOARD: |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the operation of a high quality Nursing and Care Home providing general nursing care but specialising particularly in the care of the elderly and mentally infirmed care users. (EMI) |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
Under section 487(2) of the Companies Act 2006, DHB Accountants Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the financial statements with the registrar whichever is the earlier. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Lindisfarne Healthcare(Holdings) Limited |
Opinion |
We have audited the financial statements of Lindisfarne Healthcare(Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Lindisfarne Healthcare(Holdings) Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Lindisfarne Healthcare(Holdings) Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of planning our audit, we determined materiality and assessed the risks of material misstatement in the financial statement's, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures , opportunity and motivations for fraud. As part of this discussion we identified the internal controls to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management. |
We gained an understanding of the legal and regulatory frameworks that are applicable to the company and the industry in which it operates, drawing on our wide experience, and considered whether there had been any acts by the company that may have been contrary to these laws and regulations, including fraud. We focused on laws and regulations that could give rise to material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and relevant local laws and regulations. We made enquiries of management with regards to compliance with the above laws and regulations and corroborated where necessary to other necessary evidence. |
Our audit tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management and identifying and testing journal entries |
We did not identify any key audit matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override on internal controls including testing journals and evaluation of whether there was any evidence of bias by management that represented a risk of material misstatement due to fraud. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, for example, forgery, misrepresentation or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statement's, the less likely we are to become aware of it. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Lindisfarne Healthcare(Holdings) Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
110 Whitchurch Road |
Cardiff |
CF14 3LY |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 5,970,525 | 5,462,012 |
Cost of sales | 559,611 | 578,163 |
GROSS PROFIT | 5,410,914 | 4,883,849 |
Administrative expenses | 4,849,596 | 4,741,782 |
561,318 | 142,067 |
Other operating income | - | 5,631 |
OPERATING PROFIT | 4 | 561,318 | 147,698 |
Interest payable and similar expenses | 5 | 343,781 | 171,686 |
PROFIT/(LOSS) BEFORE TAXATION | 217,537 | (23,988 | ) |
Tax on profit/(loss) | 6 | 138,590 | 117,289 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 78,947 | (141,277 | ) |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 78,947 | (141,277 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
78,947 |
(141,277 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 78,947 | (141,277 | ) |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | - | 33,000 |
Tangible assets | 9 | 5,261,031 | 5,346,511 |
Investments | 10 | 3,667,923 | 3,667,923 |
8,928,954 | 9,047,434 |
CURRENT ASSETS |
Stocks | 11 | 35,000 | 35,000 |
Debtors | 12 | 2,307,262 | 2,286,519 |
Cash at bank and in hand | 20,986 | 2,001 |
2,363,248 | 2,323,520 |
CREDITORS |
Amounts falling due within one year | 13 | 1,173,817 | 1,277,713 |
NET CURRENT ASSETS | 1,189,431 | 1,045,807 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,118,385 |
10,093,241 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(4,536,847 |
) |
(4,647,169 |
) |
PROVISIONS FOR LIABILITIES | 17 | (403,657 | ) | (347,138 | ) |
NET ASSETS | 5,177,881 | 5,098,934 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 2 | 2 |
Share premium | 19 | 1,549,998 | 1,549,998 |
Retained earnings | 19 | 3,627,881 | 3,548,934 |
SHAREHOLDERS' FUNDS | 5,177,881 | 5,098,934 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by: |
A Cornford - Director |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 2 | 3,690,211 | 1,549,998 | 5,240,211 |
Changes in equity |
Total comprehensive income | - | (141,277 | ) | - | (141,277 | ) |
Balance at 31 December 2022 | 2 | 3,548,934 | 1,549,998 | 5,098,934 |
Changes in equity |
Total comprehensive income | - | 78,947 | - | 78,947 |
Balance at 31 December 2023 | 2 | 3,627,881 | 1,549,998 | 5,177,881 |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Balance at 31 December 2022 |
Changes in equity |
Balance at 31 December 2023 |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 647,806 | (238,165 | ) |
Interest paid | (343,781 | ) | (169,018 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
(2,668 |
) |
Tax paid | (99,884 | ) | (13,825 | ) |
Net cash from operating activities | 204,141 | (423,676 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (11,000 | ) | (116,172 | ) |
Sale of intangible fixed assets | - | 5,631 |
Net cash from investing activities | (11,000 | ) | (110,541 | ) |
Cash flows from financing activities |
New loans in year | 250,000 | (403,265 | ) |
Loan repayments in period | (360,322 | ) | - |
Capital repayments in year | - | (21,380 | ) |
Net cash from financing activities | (110,322 | ) | (424,645 | ) |
Increase/(decrease) in cash and cash equivalents | 82,819 | (958,862 | ) |
Cash and cash equivalents at beginning of year |
2 |
(129,413 |
) |
829,449 |
Cash and cash equivalents at end of year |
2 |
(46,594 |
) |
(129,413 |
) |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit/(loss) before taxation | 217,537 | (23,988 | ) |
Depreciation charges | 129,480 | 150,199 |
Profit on disposal of fixed assets | - | (5,631 | ) |
Finance costs | 343,781 | 171,686 |
690,798 | 292,266 |
Increase in stocks | - | (7,500 | ) |
Increase in trade and other debtors | (20,743 | ) | (122,228 | ) |
Decrease in trade and other creditors | (22,249 | ) | (400,703 | ) |
Cash generated from operations | 647,806 | (238,165 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 20,986 | 2,001 |
Bank overdrafts | (67,580 | ) | (131,414 | ) |
(46,594 | ) | (129,413 | ) |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 2,001 | 829,449 |
Bank overdrafts | (131,414 | ) | - |
(129,413 | ) | 829,449 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,001 | 18,985 | 20,986 |
Bank overdrafts | (131,414 | ) | 63,834 | (67,580 | ) |
(129,413 | ) | 82,819 | (46,594 | ) |
Debt |
Debts falling due within 1 year | (429,996 | ) | - | (429,996 | ) |
Debts falling due after 1 year | (4,647,169 | ) | 110,322 | (4,536,847 | ) |
(5,077,165 | ) | 110,322 | (4,966,843 | ) |
Total | (5,206,578 | ) | 193,141 | (5,013,437 | ) |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Lindisfarne Healthcare(Holdings) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in pounds sterling. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and it's subsidiary undertakings as at 31 December 2022. Uniform accounting policies are in place across the group and intercompany transactions and balances are eliminated on consolidation |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover represents the invoiced value of services provided to care users. The activities of the group are exempt from value added tax. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and that the revenue can be reliable measured. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,008,229 | 3,331,877 |
Other pension costs | 142,345 | 157,098 |
4,150,574 | 3,488,975 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 3 |
Management, Financial and Administrative | 6 | 6 |
Nursing & Carers | 118 | 129 |
Kitchen & Domestics | 19 | 19 |
Maintenance & Activities | 6 | 7 |
Wage & Salary costs for the year ended 31 December 2023 includes £272,794 (2022 £294,930) in respect of Social Security costs represented by Employers National Insurance Contributions. |
2023 | 2022 |
£ | £ |
Directors' remuneration | 383,291 | 442,234 |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 194,985 | 164,430 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 35,542 | 59,038 |
Depreciation - owned assets | 96,480 | 117,199 |
Profit on disposal of fixed assets | - | (5,631 | ) |
Goodwill amortisation | 33,000 | 33,000 |
Auditors' remuneration | 5,000 | 5,000 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 15,846 | - |
Interest payable | 327,935 | 169,018 |
Hire purchase | - | 2,668 |
343,781 | 171,686 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 82,071 | 62,045 |
Deferred tax | 56,519 | 55,244 |
Tax on profit/(loss) | 138,590 | 117,289 |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit/(loss) before tax | 217,537 | (23,988 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
54,384 |
(4,558 |
) |
Effects of: |
Expenses not deductible for tax purposes | 32,385 | 63,552 |
Depreciation in excess of capital allowances | 51,821 | 3,051 |
Deferred Tax | - | 55,244 |
Total tax charge | 138,590 | 117,289 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 330,000 |
AMORTISATION |
At 1 January 2023 | 297,000 |
Amortisation for year | 33,000 |
At 31 December 2023 | 330,000 |
NET BOOK VALUE |
At 31 December 2023 | - |
At 31 December 2022 | 33,000 |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 4,189,018 | 947,489 | 1,564,063 | 6,700,570 |
Additions | - | - | 11,000 | 11,000 |
At 31 December 2023 | 4,189,018 | 947,489 | 1,575,063 | 6,711,570 |
DEPRECIATION |
At 1 January 2023 | 555,100 | 246,330 | 552,629 | 1,354,059 |
Charge for year | 38,448 | 16,872 | 41,160 | 96,480 |
At 31 December 2023 | 593,548 | 263,202 | 593,789 | 1,450,539 |
NET BOOK VALUE |
At 31 December 2023 | 3,595,470 | 684,287 | 981,274 | 5,261,031 |
At 31 December 2022 | 3,633,918 | 701,159 | 1,011,434 | 5,346,511 |
Long leasehold property incudes an interest in land based upon a lease of 125 years at a peppercorn rent from January 2007. |
The business was revalued for loan security purposes in May 2015 by Andrew Forbes, Chartered Valuation Surveyors, in accordance with the RCIS Valuation - Professional Standards January 2014 (Red Book) guidelines.. They were of the opinion that the market value of the long leasehold interest in the care home on the assumption it is a fully operational and equipped entity and having regard to trading potential, free from encumbrance and as described in their report can be fairly stated as £11,150,000 as at that date. The surplus arising on revaluation is not reflected in the accounts nor are any associated tax liabilities which would arise on the surplus over and above the amounts at which the fixed assets are stated in the accounts. |
10. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 3,667,923 |
NET BOOK VALUE |
At 31 December 2023 | 3,667,923 |
At 31 December 2022 | 3,667,923 |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Amos Nursing Homes Limited |
Registered office: United Kingdom |
Nature of business: Operation of a care home |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 1,659,957 | 1,581,009 |
Profit for the year | 78,948 | 188,770 |
The shares in Amos Nursing Homes Limited are owned 100% by Lindisfarne Healthcare Limited which is not required to prepare consolidated accounts as it is a 100% subsidiary itself of Lindisfarne Healthcare (Holdings) Limited whose accounts consolidate the results of it's subsidiary and sub-subsidiary. |
Lindisfarne Healthcare Limited |
Registered office: United Kingdom |
Nature of business: Intermediate Holding Company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 1,973,540 | 1,973,540 |
Loss for the year | - | (330,047 | ) |
11. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 35,000 | 35,000 |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 365,518 | 194,191 |
Other debtors | 1,198,428 | 1,267,916 |
Due from related company | 418,687 | 504,325 |
Tax | 296,258 | 296,258 |
Prepayments and accrued income | 28,371 | 23,829 |
2,307,262 | 2,286,519 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 497,576 | 561,410 |
Trade creditors | 89,957 | 140,522 |
Amounts owed to group undertakings | - | - |
Tax | 175,137 | 192,950 |
Social security and other taxes | 293,713 | 214,994 |
Accruals and deferred income | 117,434 | 167,837 |
1,173,817 | 1,277,713 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) | 4,536,847 | 4,647,169 |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 67,580 | 131,414 |
Bank loans | 429,996 | 429,996 |
497,576 | 561,410 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 1,574,010 | 1,629,171 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 2,962,837 | 3,017,998 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 4,966,843 | 5,077,165 |
Bank and other loans are secured by a formal debenture over the assets of the companies in the group and by a fixed legal charge over the long leasehold property included in the accounts of a subsidiary company as described in these accounts. Cross guarantees also exist between the group companies in accordance with normal practice. |
17. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 403,657 | 347,138 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 347,138 |
Provided during year | 56,519 |
Accelerated capital allowance |
Balance at 31 December 2023 | 403,657 |
Lindisfarne Healthcare(Holdings) Limited (Registered number: 08751823) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 2 | 2 |
19. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | 3,548,934 | 1,549,998 | 5,098,932 |
Profit for the year | 78,947 | 78,947 |
At 31 December 2023 | 3,627,881 | 1,549,998 | 5,177,879 |
20. | RELATED PARTY DISCLOSURES |
As at 31 December 2023 an amount of £1,128,648 is due from directors of the company. Other debtors also includes £504,325 (2021 :£260,000) due from a company under common control. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties of the company are the directors acting jointly in their capacity of executors of the estate of the late Mrs A F Kelly. |