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Registration number: 01903864

Ruddington Homes Limited

Strategic Report, Report of the Director

and Audited Financial Statements


for the Year Ended 31 December 2023

 

Ruddington Homes Limited

Contents

Company Information

1

Strategic Report

2 to 4

Director's Report

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 20

 

Ruddington Homes Limited

Company Information

Director

Mr Paul Hearn

Registered office

2 Cheapside
Derby
Derbyshire
DE1 1BR

Accountants

The TAX Partnership
2 Cheapside
Derby
Derbyshire
DE1 1BR

Auditors

Just Audit Limited
 Chartered Accountants & Statutory Auditors
Strelley Hall
Main Street
Strelley
Nottinghamshire
NG8 6PE

 

Ruddington Homes Limited

Strategic Report for the Year Ended 31 December 2023

The director presents his strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is Care Home provider.

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

The company continues to operate three separate care homes for the elderly:

- Orchard House - Ruddington, Nottingham
- Balmore Country House - Ruddington, Nottingham
- St Peters - Ruddington, Nottingham

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being occupancy levels, turnover and direct wage costs of the business.

The company's key financial and other performance indicators during the year were as follows:

31 December

31 December

Unit

2023

2022

Turnover

£

5,729,453

5,594,515

Average number of residents

121

123

Average weekly fee

£

910

875

Direct wages and national insurance

£

3,178,163

2,610,979

Wages as a percentage of turnover

%

55

46

The above indicators show a 2.4% increase in turnover for the year to 31 December 2023, there was a 4% increase in average weekly fees and a 1.6% decrease in average number of residents.

The decrease in average number of residents has not had a major impact on the financial stability of the company, and all 3 homes have maintained a steady flow of residents throughout the year, and operation at an average of 87% occupancy, an increase of 4% from the previous year.

The company was charged a management fee of £1,200,000 during the year, which had a large impact on the results for the year. See note 16 exceptional items for more details.

A provision of £60,005 was included for protentional bad debts.

When analysing the profitability of the company we use the earnings before interest, taxation, depreciation and amortisation (EBITDA) as the key indicator and also ignoring any management charges. Using this method, the profitability of the company was as follows:

 

Ruddington Homes Limited

Strategic Report for the Year Ended 31 December 2023

31 December 2023
£

31 December 2022
£

(Loss)/Profit before tax

(243,619)

1,684,966

Depreciation

386,476

332,736

142,857

2,017,702

Management fees - exceptional items

1,200,000

-

EBITDA

1,342,857

2,017,702

The balance sheet on page 11 of the financial statements shows that the net assets of the company have decreased slightly to £8,789,822 from £9,031,072.

Principal risks and uncertainties

Financial risk includes credit risk and cashflow management. The company closely monitors its debtors to ensure credit risk is mitigated; in addition, the company monitors its cash reserves closely to ensure it is able to meet its commitments.

The government announced the introduction of the National Living Wage during 2016, with the intention of increasing this to £9.00 per hour for anyone over the age of 25. In 2019 it was recommended that workers should become entitled to the National Living Wage at the age of 21 instead of 25. In April 2021, the age of entitlement was lowered to 23. The increase has been staggered over the last few years with the rate at the year end being £10.42 for employees over the age of 23, from 1 April 2024 the National Living Wage will increase to £11.44 for employees over the age of 21. To minimise the impact of this increase a full review of staffing is continuously carried out with the aim of removing duplication of duties whilst ensuring the efficient operation of the homes. It is believed that by implementing the recommendations of this review there will be little overall impact on the key performance indicators.

Following the UK's Exit from the EU, there were changes to immigration rules, with a points-based system being introduced. The company does not employ any EU resident care workers and, whilst some nursing staff are recruited from the EU, these are all qualified to the required level and their pay is above the general salary threshold.

In February 2022, Russia invaded Ukraine, this caused a shortage in imported gas supplies, resulting in the price of gas becoming considerably more volatile, and supplies limited. During 2022 the cost of gas rose by over 50%. Ofgem set a price cap for domestic customers but no price cap on business energy, this had a large financial impact on the costs during the prior year. Even though prices did fall during 2023, they remained above pre-crisis levels.

Fluctuating price inflation is a risk. The annual rate of inflation peaked at 11.1% in October 2022 and this had a knock-on effect on prices in 2023, however, the annual rate of inflation has since decreased to 7.3% for 2023.

The company has a normal level of exposure to price, credit and liquidity risk arising from its trading activities which are only conducted in sterling.
 

 

Ruddington Homes Limited

Strategic Report for the Year Ended 31 December 2023

Approved by the director on 25 September 2024

.........................................
Mr Paul Hearn
Director

 

Ruddington Homes Limited

Director's Report for the Year Ended 31 December 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director of the company

The director who held office during the year was as follows:

Mr Paul Hearn

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

select suitable accounting policies and 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 financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

Disclosure of information to the auditors

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Disclosure of information in the strategic report

The company has chosen, in accordance with Section 414C (11) of the Companies Act 2006 to include certain matters in its strategic report that would otherwise be required to be disclosed in this Director's Report. The Strategic Report can be found on page 2 of these accounts.

Approved by the director on 25 September 2024

.........................................
Mr Paul Hearn
Director

 

Ruddington Homes Limited

Independent Auditor's Report to the Members of Ruddington Homes Limited

Qualified opinion

We have audited the financial statements of Ruddington Homes Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and 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, except for the possible effects of the matter described in the Basis for qualified opinion on the financial statements section of our report, the accompanying financial statements:

give a true and fair view of the state of affairs of the company as at 31 December 2023, and of its loss 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 qualified opinion on the financial statements

The audit evidence available to us in respect of the fixed assets was limited because when we were first
appointed as auditors to the company for the year ended 30 June 2011 the corresponding figures for that year
had been unaudited and the records relating to the historical cost of the land and buildings maintained by
previous management of the company in the years preceding that date were not sufficiently detailed.

On transition to FRS 102, the company opted to carry the revalued fixed assets at deemed cost. As explained in
the previous paragraph, the audit evidence with respect to fixed assets held at the transition date of 1 January
2014, before any transitional adjustments for the implementation of FRS 102, with a cost of £1,864,367 and a
net book value of £1,254,702 was limited; as a consequence, on the transition to FRS 102, the audit evidence
available in respect of the historic cost used to determine the revaluation reserve as at 1 January 2014 of
£1,254,702 was also limited. We were unable to satisfy ourselves by alternative means by using other audit
procedures. Consequently, we were unable to determine whether any adjustment to the revaluation reserve
was necessary. The fact that we were unable to obtain sufficient appropriate audit evidence regarding the cost
of these fixed assets for the year ended 30 June 2011 and subsequent years and also regarding the revaluation
reserve created when the company opted to carry fixed assets at deemed cost on transition to FRS 102 caused
us to qualify our audit opinion on the financial statements relating to the year ended 30 June 2011 and
subsequent years.

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 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 qualified opinion.

 

Ruddington Homes Limited

Independent Auditor's Report to the Members of Ruddington Homes Limited

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director’s 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information included in the Director's Report and Strategic Report, other than the financial statements and our auditor’s report 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 Companies Act 2006

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

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

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, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

 

Ruddington Homes Limited

Independent Auditor's Report to the Members of Ruddington Homes Limited

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 5], the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising 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 by, for example, forgery or intentional misrepresentations, or through collusion. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and Care Quality Commission regulation, recognising the regulated nature of the Company's activities. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the director that represented a risk of material misstatement due to fraud.

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

 

Ruddington Homes Limited

Independent Auditor's Report to the Members of Ruddington Homes 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 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.

......................................
David Fletcher BA BFP FCA (Senior Statutory Auditor)
For and on behalf of Just Audit Limited,
Chartered Accountants & Statutory Auditors
Strelley Hall
Main Street
Strelley
Nottinghamshire
NG8 6PE

25 September 2024

 

Ruddington Homes Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

5,729,453

5,594,515

Cost of sales

 

(182,435)

(164,851)

Gross profit

 

5,547,018

5,429,664

Administrative expenses

 

(4,590,771)

(3,837,586)

Other operating income

-

92,851

Operating profit

956,247

1,684,929

Other interest receivable and similar income

134

80

Interest payable and similar expenses

-

(43)

Exceptional items

 

Management fees

16

1,200,000

-

   

(1,199,866)

37

(Loss)/profit before tax

 

(243,619)

1,684,966

Tax on (loss)/profit

7

2,369

(317,906)

(Loss)/profit for the financial year

 

(241,250)

1,367,060

The above results were derived from continuing operations.

 

Ruddington Homes Limited

(Registration number: 01903864)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

9

8,021,186

8,305,963

Current assets

 

Stocks

10

600

600

Debtors

11

7,411,010

7,102,365

Cash at bank and in hand

 

147,278

182,321

 

7,558,888

7,285,286

Creditors: Amounts falling due within one year

12

(6,509,227)

(6,249,808)

Net current assets

 

1,049,661

1,035,478

Total assets less current liabilities

 

9,070,847

9,341,441

Provisions for liabilities

13

(281,025)

(310,369)

Net assets

 

8,789,822

9,031,072

Capital and reserves

 

Called up share capital

15

25,000

25,000

Share premium reserve

1,980,000

1,980,000

Revaluation reserve

4,602,880

4,589,465

Profit and loss account

2,181,942

2,436,607

Shareholders' funds

 

8,789,822

9,031,072

Approved and authorised by the director on 25 September 2024
 

.........................................
Mr Paul Hearn
Director

 

Ruddington Homes Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Share premium
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 January 2023

25,000

1,980,000

4,589,465

2,436,607

9,031,072

Loss for the year

-

-

-

(241,250)

(241,250)

Transfer between reserves

-

-

13,415

(13,415)

-

Total comprehensive income

-

-

13,415

(254,665)

(241,250)

At 31 December 2023

25,000

1,980,000

4,602,880

2,181,942

8,789,822

Share capital
£

Share premium
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 January 2022

25,000

1,980,000

4,627,327

6,531,685

13,164,012

Profit for the year

-

-

-

1,367,060

1,367,060

Transfer between reserves

-

-

(37,862)

37,862

-

Total comprehensive income

-

-

(37,862)

1,404,922

1,367,060

Dividends

-

-

-

(5,500,000)

(5,500,000)

At 31 December 2022

25,000

1,980,000

4,589,465

2,436,607

9,031,072

The revaluation reserve, which is non distributable, represents the cumulative effect of the revaluation of the freehold land and buildings up to the date of transition to FRS 102, after which the company has adopted a deemed cost accounting policy.

The share premium reserve represents the amount above the nominal value received for shares sold, less transactions costs.

The profit and loss account records retained earnings and accumulated losses.

 

Ruddington Homes Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.
Company Number 01903864

The address of its registered office is:
2 Cheapside
Derby
Derbyshire
DE1 1BR
England

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention, as modified by the revaluation of certain fixed assets.

Summary of disclosure exemptions

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the
parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemption from the following disclosure requirement:

Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes
and disclosures.

Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future due to the fact that the company has continued to trade well. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

 

Ruddington Homes Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Judgements
In preparing these financial statements, the director has made the following judgements:
 

Determined whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic conditions and estimated market values of the assets.

Key sources of estimation uncertainty

Freehold properties, included at deemed cost and other tangible fixed assets included at cost, are depreciated over their useful lives taking into account residual values, where appropriate. The land value, the estimated lives of the assets and their residual values are assessed annually and may vary depending on a number of factors. In addition, deferred tax is provided on the difference between the deemed cost and the indexed cost of the properties.

Turnover

Turnover represents the amount chargeable during the period in respect of the provision of care services.
The company recognises revenue when it can be reliably measured and it is probable that future economic benefit will flow to the entity.

Tax

The tax credit for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income or directly in equity respectively.

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except,

- the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of the deferred tax liabilities or other future taxable profits;
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Tangible fixed assets and depreciation

Freehold properties are measured at deemed cost less accumulated depreciation and any accumulated impairment losses. Other assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of the assets less their residual value over their estimated useful lives.

Asset class

Depreciation method and rate

Buildings

4% on deemed cost

Furniture, fittings and equipment

25% on reducing balance

Motor vehicles

25% on reducing balance

Other property, plant and equipment

25% on reducing balance

Stocks

Stock is valued at the lower of cost and net realisable value.

 

Ruddington Homes Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Dividends

Dividend distribution to the company’s shareholder is recognised in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

The pension costs charged in the financial statements are in relation to the defined contribution money purchase pension scheme operated by the company and represent the contributions payable during the period.

Functional currency and presentation currency

Items included in the financial statements are measured in sterling, the functional currency of the company.

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Rendering of services

5,729,453

5,594,515

All of which arose in the United Kingdom

4

Operating profit

Arrived at after charging

2023
 £

2022
 £

Auditors' remuneration

22,800

21,420

Depreciation

386,476

332,736

5

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

2,994,444

2,461,367

Social security costs

183,719

149,612

Pension costs, defined contribution scheme

38,285

30,597

Other employee expense

43,487

28,892

3,259,935

2,670,468

 

Ruddington Homes Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2023
No.

2022
No.

Nurses, care and general staff

121

111

121

111

6

Director's remuneration

The director's remuneration for the year was as follows:

2023
 £

2022
 £

Director's Remuneration

-

-

Director's pension contributions

-

-

-

-

7

Taxation

Tax (credited)/charged in the profit and loss account

2023
 £

2022
 £

Current taxation

UK corporation tax

26,975

326,755

Deferred taxation

Arising from origination and reversal of timing differences

(29,344)

(8,849)

Tax (credit)/expense in the profit and loss account

(2,369)

317,906

The tax on (loss)/profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
 £

2022
 £

(Loss)/profit before tax

(243,619)

1,684,966

Corporation tax at standard rate

(57,299)

320,144

Effect of expense not deductible in determining taxable profit (tax loss)

14,113

-

Deferred tax expense relating to changes in tax rates or laws

(29,344)

(8,849)

Tax increase (decrease) from effect of capital allowances and depreciation

70,161

6,611

Total tax (credit)/charge

(2,369)

317,906

 

Ruddington Homes Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

From 1 April 2023, the Corporation Tax main rate for non-ring-fenced profits has been increased to 25%, applying to profits over £250,000.

8

Intangible assets

Goodwill
 £

Total
£

Cost

At 1 January 2023

502,000

502,000

At 31 December 2023

502,000

502,000

Amortisation

At 1 January 2023

502,000

502,000

At 31 December 2023

502,000

502,000

Carrying amount

At 31 December 2023 and 31 December 2022

-

-

9

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2023

9,470,446

1,509,358

35,984

405,085

11,420,873

Additions

27,500

58,230

-

15,968

101,698

At 31 December 2023

9,497,946

1,567,588

35,984

421,053

11,522,571

Depreciation

At 1 January 2023

1,609,118

1,170,509

24,483

310,800

3,114,910

Charge for the year

256,768

99,269

2,875

27,563

386,475

At 31 December 2023

1,865,886

1,269,778

27,358

338,363

3,501,385

Carrying amount

At 31 December 2023

7,632,060

297,810

8,626

82,690

8,021,186

At 31 December 2022

7,861,328

338,849

11,501

94,285

8,305,963

Included in deemed cost of the land and buildings is the estimated cost of freehold land of £1,332,500 (31 December 2022 - £1,332,500) which is not depreciated.
 

 

Ruddington Homes Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

10

Stocks

2023
 £

2022
 £

Other inventories

600

600

11

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

415,779

471,500

Amounts owed by related parties

17

6,968,040

6,569,546

Other debtors

 

2,645

2,648

Prepayments

 

24,546

58,671

   

7,411,010

7,102,365

12

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

235,413

214,885

Amounts due to related parties

17

5,874,037

5,389,867

Social security and other taxes

 

70,660

346,277

Outstanding defined contribution pension costs

 

10,826

8,905

Other payables

 

14,086

9,849

Deferred income

 

158,184

156,122

Accrued expenses

 

146,021

123,903

 

6,509,227

6,249,808

 

Ruddington Homes Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Deferred tax and other provisions

Deferred tax
£

Total
£

At 1 January 2023

310,369

310,369

Decrease in provision

(29,344)

(29,344)

At 31 December 2023

281,025

281,025

Included in the above is a deferred tax liability of £74,012 (31 December 2022 - £150,921) in respect of freehold properties which the company is not currently intending to sell but for which provision has been made in compliance with FRS 102.

14

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £38,285 (2022 - £30,597).

Contributions totalling £10,826 (2022 - £8,905) were payable to the scheme at the end of the year and are included in creditors.

15

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

25,000

25,000

25,000

25,000

         

16

Exceptional items

During the year, Ruddington Homes Limited was charged a management fee by a company under common control of £1,200,000.

 

Ruddington Homes Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

17

Related party transactions

Loans to related parties

Included in debtors are the following amounts owing from related companies under common control:

2023

Associates
£

At start of period

6,569,546

Advanced

1,612,325

Repaid

(1,213,832)

At end of period

6,968,039

2022

Associates
£

At start of period

5,284,342

Advanced

1,404,800

Repaid

(119,596)

At end of period

6,569,546

Loans from related parties

Included in creditors are the following amounts owing to related companies under common control:

2023

Associates
£

At start of period

5,389,867

Advanced

484,168

At end of period

5,874,035

2022

Associates
£

At start of period

45,000

Advanced

5,420,416

Repaid

(75,549)

At end of period

5,389,867

Loan accounts between the company and other related companies are all interest free and repayable on demand.
 

18

Parent and ultimate controlling party

The parent company is Ruddington (Holdings) Limited. Copies of the group accounts can be obtained from Companies House or from the company's registered office at 2 Cheapside, Derby, DE1 1BR.
The ultimate controlling party is Mr Paul Hearn.