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Registration number: 04531226

Hearn Care Homes Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Hearn Care Homes Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 10

 

Hearn Care Homes Limited

Company Information



 

Director

Mr Paul Hearn

Registered office

The TAX Partnership
2 Cheapside
Derby
Derbyshire
DE1 1BR

Accountants

The TAX Partnership
2 Cheapside
Derby
Derbyshire
DE1 1BR

 

Hearn Care Homes Limited

(Registration number: 04531226)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

4,340,732

4,398,598

Current assets

 

Stocks

1,890

1,890

Debtors

6

2,763,970

2,889,359

Cash at bank and in hand

 

57,291

49,598

 

2,823,151

2,940,847

Creditors: Amounts falling due within one year

7

(1,245,062)

(986,016)

Net current assets

 

1,578,089

1,954,831

Total assets less current liabilities

 

5,918,821

6,353,429

Creditors: Amounts falling due after more than one year

7

(2,868,074)

(3,049,952)

Provisions for liabilities

(33,192)

(33,192)

Net assets

 

3,017,555

3,270,285

Capital and reserves

 

Called up share capital

8

1

1

Revaluation reserve

2,291,040

2,291,040

Retained earnings

726,514

979,244

Shareholders' funds

 

3,017,555

3,270,285

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

 

Hearn Care Homes Limited

(Registration number: 04531226)
Balance Sheet as at 31 December 2023

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 25 September 2024
 

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

 

Hearn Care 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.

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

The principal place of businesses is:
Ashton Court
56 Three Tuns Road,
Eastwood
Nottingham
NG16 3EJ

Edward House
175 Nottingham Road
Eastwood
Nottingham
NG16 3GS

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

 

Hearn Care Homes Limited

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and building

2% on cost

Furniture, fittings and equipment

15% and 25% on reducing balance

Other property, plant and equipment

25% on reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Hearn Care Homes Limited

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

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

15 years

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 87 (2022 - 75).

 

Hearn Care Homes Limited

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

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2023

100,000

100,000

At 31 December 2023

100,000

100,000

Amortisation

At 1 January 2023

100,000

100,000

At 31 December 2023

100,000

100,000

Carrying amount

At 31 December 2023

-

-

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2023

4,647,514

472,993

133,321

5,253,828

Additions

-

24,271

7,099

31,370

At 31 December 2023

4,647,514

497,264

140,420

5,285,198

Depreciation

At 1 January 2023

453,767

316,447

85,016

855,230

Charge for the year

56,988

20,233

12,015

89,236

At 31 December 2023

510,755

336,680

97,031

944,466

Carrying amount

At 31 December 2023

4,136,759

160,584

43,389

4,340,732

At 31 December 2022

4,193,747

156,546

48,305

4,398,598

6

Debtors

 

Hearn Care Homes Limited

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

Current

Note

2023
£

2022
£

Trade debtors

 

177,458

275,530

Amounts owed by related parties

10

2,532,523

2,562,975

Prepayments

 

39,536

36,399

Other debtors

 

14,453

14,455

   

2,763,970

2,889,359

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

167,887

153,897

Trade creditors

 

84,983

37,412

Amounts owed to group undertakings and undertakings in which the company has a participating interest

10

855,926

641,258

Taxation and social security

 

15,255

11,594

Accruals and deferred income

 

113,365

134,591

Other creditors

 

7,646

7,264

 

1,245,062

986,016

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

2,868,074

3,049,952

 

Hearn Care Homes Limited

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

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary share of £1 each

1

1

1

1

         

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

2,868,074

3,049,952

2023
£

2022
£

Current loans and borrowings

Bank borrowings

167,887

153,897

10

Related party transactions

Loans from related parties

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

2023

Other related parties
£

Total
£

At start of period

641,258

641,258

Advanced

245,120

245,120

Repaid

(30,452)

(30,452)

At end of period

855,926

855,926

2022

Other related parties
£

Total
£

At start of period

440,258

440,258

Advanced

231,000

231,000

Repaid

(30,000)

(30,000)

At end of period

641,258

641,258

 

Hearn Care Homes Limited

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

Loans to related parties

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

2023

Other related parties
£

Total
£

At start of period

2,562,975

2,562,975

Repaid

(30,452)

(30,452)

At end of period

2,532,523

2,532,523

2022

Other related parties
£

Total
£

At start of period

396,534

396,534

Advanced

2,266,729

2,266,729

Repaid

(100,288)

(100,288)

At end of period

2,562,975

2,562,975

Terms of loans to related parties

The loans are interest free and repayable on demand.