Company registration number 02148444 (England and Wales)
MIDDLEPATCH LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MIDDLEPATCH LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
MIDDLEPATCH LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
950,749
976,358
Current assets
Stocks
3,460
3,460
Debtors
7
3,224,076
2,976,012
Cash at bank and in hand
196,709
347,865
3,424,245
3,327,337
Creditors: amounts falling due within one year
8
(359,577)
(146,131)
Net current assets
3,064,668
3,181,206
Total assets less current liabilities
4,015,417
4,157,564
Provisions for liabilities
(13,483)
(21,470)
Net assets
4,001,934
4,136,094
Capital and reserves
Called up share capital
227,111
227,111
Revaluation reserve
9
656,288
656,288
Profit and loss reserves
3,118,535
3,252,695
Total equity
4,001,934
4,136,094

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
Mr J George
Director
Company registration number 02148444 (England and Wales)
MIDDLEPATCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Middlepatch Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Meadow View Court, Sully, Penarth, CF64 5AY.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover represents consideration received from the provision of care home and associated services. Revenue is recognised to the extent that it is probable that the economic benefits will follow to the company and the revenue can be reliably measured.

 

Revenue is measured at the fair value of the consideration received or receivable, net of discounts.

1.3
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Development costs
50% straight line
1.4
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 buildings
2% straight line
Plant and equipment
15% straight line

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 credited or charged to profit or loss.

MIDDLEPATCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
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.

1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

MIDDLEPATCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.

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 company after deducting all of its liabilities.

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.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MIDDLEPATCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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 when the company has 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.

1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
106
100
MIDDLEPATCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
57,806
Deferred tax
Origination and reversal of timing differences
(7,987)
(46,913)
Total tax (credit)/charge
(7,987)
10,893
5
Intangible fixed assets
Other
£
Cost
At 1 January 2023 and 31 December 2023
17,889
Amortisation and impairment
At 1 January 2023 and 31 December 2023
17,889
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
1,313,871
531,911
1,845,782
Additions
7,150
84,469
91,619
At 31 December 2023
1,321,021
616,380
1,937,401
Depreciation and impairment
At 1 January 2023
414,817
454,607
869,424
Depreciation charged in the year
26,421
90,807
117,228
At 31 December 2023
441,238
545,414
986,652
Carrying amount
At 31 December 2023
879,783
70,966
950,749
At 31 December 2022
899,054
77,304
976,358
MIDDLEPATCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
39,524
66,404
Amounts owed by group undertakings
3,159,828
2,892,804
Other debtors
24,724
16,804
3,224,076
2,976,012
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
44,204
20,340
Corporation tax
57,790
57,790
Other taxation and social security
81,164
26,187
Other creditors
176,419
41,814
359,577
146,131
9
Revaluation reserve
2023
2022
£
£
At the beginning and end of the year
656,288
656,288
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Indra Raj Giri ACA, FCCA
Statutory Auditor:
Makesworth Audit Services Ltd
11
Related party transactions
MIDDLEPATCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Related party transactions
(Continued)
- 8 -

During the year the Bellavista Care Centre Limited has charged £248,000 (2022: £60,000) as a service fee to the company. The fee was charged under normal commercial terms.

 

Included within debtors are the amounts of £563,565 (2022: £563,565) owed by MK Penmark Limited and £2,596,263 (2022: £2,329,239) owed by Bellavista Care Centre Limited.

 

MK Penmark Limited is the company's immediate parent company and Bellavista Care Centre Limited is the company's ultimate parent company.

 

Included within creditors is an amount of £110,025 (2022: £15,870) owed to Bellavista Care (Cardiff) Limited, a company controlled by the directors.

 

During the year the company was charged staff costs of £96,870 by Bellavista Care (Cardiff) Limited.

12
Parent company

The company's immediate parent company is MK Penmark Limited and the ultimate parent company is Bellavista Care Centre Limited, a company registered in the UK. The consolidated financial statements of the group can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

On 30 September 2022, Bellavista Care Centre Limited acquired both MK Penmark Limited and Middlepatch Limited.

13
Charges

The freehold property at Rushmoor House, St. Mary Church, Cowbridge, CF71 7LT has been given as a first charge to Barclays Bank Plc towards the associated borrowing in respect of the acquisition of this business by the parent company Bellavista Care Centre Limited.

 

In addition, there are fixed and floating charges to Barclays Bank Plc against the properties or undertakings of the company.

2023-12-312023-01-01false24 September 2024CCH SoftwareCCH Accounts Production 2023.200No description of principal activityThis audit opinion is unqualifiedMr J GeorgeMrs B Jacob021484442023-01-012023-12-31021484442023-12-31021484442022-12-3102148444core:LandBuildings2023-12-3102148444core:OtherPropertyPlantEquipment2023-12-3102148444core:LandBuildings2022-12-3102148444core:OtherPropertyPlantEquipment2022-12-3102148444core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3102148444core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3102148444core:CurrentFinancialInstruments2023-12-3102148444core:CurrentFinancialInstruments2022-12-3102148444core:ShareCapital2023-12-3102148444core:ShareCapital2022-12-3102148444core:RevaluationReserve2023-12-3102148444core:RevaluationReserve2022-12-3102148444core:RetainedEarningsAccumulatedLosses2023-12-3102148444core:RetainedEarningsAccumulatedLosses2022-12-3102148444bus:Director12023-01-012023-12-3102148444core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3102148444core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3102148444core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3102148444core:PlantMachinery2023-01-012023-12-31021484442022-01-012022-12-3102148444core:UKTax2023-01-012023-12-3102148444core:UKTax2022-01-012022-12-3102148444core:IntangibleAssetsOtherThanGoodwill2022-12-3102148444core:IntangibleAssetsOtherThanGoodwill2023-12-3102148444core:IntangibleAssetsOtherThanGoodwill2022-12-3102148444core:LandBuildings2022-12-3102148444core:OtherPropertyPlantEquipment2022-12-31021484442022-12-3102148444core:LandBuildings2023-01-012023-12-3102148444core:OtherPropertyPlantEquipment2023-01-012023-12-3102148444core:WithinOneYear2023-12-3102148444core:WithinOneYear2022-12-3102148444bus:PrivateLimitedCompanyLtd2023-01-012023-12-3102148444bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3102148444bus:FRS1022023-01-012023-12-3102148444bus:Audited2023-01-012023-12-3102148444bus:Director22023-01-012023-12-3102148444bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP