REGISTERED NUMBER: 07260218 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
NORTHGATE HEALTHCARE HOLDINGS LIMITED |
REGISTERED NUMBER: 07260218 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
NORTHGATE HEALTHCARE HOLDINGS LIMITED |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
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 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
(Statutory Auditor) |
75 Aston Road |
Shifnal |
Shropshire |
TF11 8DU |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
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. |
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. |
REVIEW OF BUSINESS |
We are a provider of residential care homes for the elderly and currently own and operate four homes in the Midlands. We assess the performance for each home separately. |
We pride ourselves on the quality of our homes and care we provide. Within our group of four homes we now provide nursing care in addition to specialist dementia care. Nursing care is provided solely at Autumn House which also provides some specialist dementia care along with our other three homes. |
Following the issues that the Covid-19 pandemic caused in the care industry over the last few years 2023 saw the last of the end to longstanding problems this had caused and meant that the business could concentrate on growing the business and continuing the deliver the first class care expected for all of our residents. Bed occupancy rates were slightly down on 2022 figures but overall income was up. |
The homes had a small amount of grant funding for the start of 2023 to assist with the additional costs regarding the impact of Covid-19 including the additional PPE, staffing and other costs which have had to be incurred to ensure care homes can operate in a safe, structured and efficient manner so as to assist as much we can with the fight against Covid-19. This has continued to ensure the homes have been run in a safe and Covid-19 secure manner to help with the reduction in infections both within the industry and the wider area. |
All of our homes have been profitable for 2023 and continue to be profitable in 2024. We have seen an increase in total turnover overall from 2022, this is a combination of increased fees and increased occupancy. The largest rise again is in our specialist nursing care home, Autumn House with increased occupancy and an increase in nursing care residents with this home looking to reach its full potential during 2024. |
We have continued with the on-going program of repairs to all homes to ensure they are kept to the high standards which we continue to meet for all of our service users. This again has resulted in a higher than average spend on repairs and maintenance with The Firs going through a refurbishment during the year and the continued refurbishment of Autumn House to ensure it continues to meet the high standards expected across the Northgate group. The major refurbishment of both of these homes expect to be finished during 2024 when we expect overall maintenance expenditure to decrease apart from the usual cyclical refurbishment programme. |
As the group now also provides nursing care with Autumn House, this enables the company to increase the range of care available to residents. Residential nursing care is a growing sector of our industry and the directors are satisfied that including this service is worthwhile to the Northgate Healthcare group. This will ensure Northgate Healthcare can continue to provide the high quality care their residents need when nursing care is required. |
We consider the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being average occupancy rates, gross profit margin and earnings before interest, tax, depreciation and amortisation (EBITDA). |
Occupancy rates for 2023 overall have dropped slightly from 2022 but have increased again in 2024 and we are confident that this trend will continue during 2024 across all four of our homes. We continue to have high resident retention and satisfaction across all homes in the group. |
The gross profit margin for the company as a whole has increased again to 38.07% over the 2022 figure of 30.93% for 2023. This is higher than the margins being achieved prior to the Covid-19 pandemic and is testament to both high standards of the homes but also the care provided to our residents. |
Following the new measures introduced during the latter part of 2022 and which has continued during 2023 to assist with achieving both higher occupancy rates and better profitability across all homes in the group, although occupancy rates have fallen slightly profitability has increased overall. |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
A number of risk factors continue to potentially impact the operating and financial performance of the company. These being: |
- The effects of a further economic downturn which could lead to further pressures on margins |
- Changes in the availability of public sector funding. A number of users of the company's care homes rely on government funding to assist with fees |
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control. |
FINANCIAL RISK MANAGEMENT |
The company's credit risk is low, being primarily attributed to its trade debtors. All credit risk both publicly and privately funded is managed by monitoring payments against contractual agreements. The increased interest rates have continued during 2023 but although has impacted profitability, other measures put in place have outweighed this impact and is continuing to be managed by the directors to ensure continued profitability moving forward. |
The company faces financial risk from the inflationary pressures from staff costs. Any future changes in the National Living Wage will have significant impact on labour costs in the care sector as a whole. The company reviews upcoming changes to the National Living Wage and currently pay above this rate to ensure good quality care staff. The company plans future wage increases to ensure financial stability of the company going forward and to ensure these increases do not overly impact cashflow and profitability. |
ON BEHALF OF THE BOARD: |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
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. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
A Ordinary £1 | - | £4364.9333 |
B Ordinary £1 | - | £8900 |
C Ordinary £1 | - | £4364.93 |
D Ordinary £1 | - | £9050 |
E Ordinary £1 | - £3113.4776 |
F Ordinary £1 | - £3113.4776 |
The total distribution of dividends for the year ended 31 December 2023 will be £ 565,935 . |
FUTURE DEVELOPMENTS |
The directors are confident about the continuing financial performance of the business and continue to seek opportunities to develop the business further. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
OUR PEOPLE |
The company provides employees with information on matters of concern to them, consulting them regularly so that their views can be taken into account when making decisions that are likely to affect their interests. |
Disabled employees |
The company is committed to a policy of recruitment and promotion based on the basis of aptitude and ability without discrimination of any kind. Particular attention is given to the training and promotion of disabled employees to ensure that their career development is not unfairly restricted by their disability, or perceptions to it. |
The HR procedures make clear that full and fair consideration must be given to applications made by and the promotion of disabled persons. Where an employee becomes disabled whilst employed by the company, the HR procedures also require that reasonable effort is made to ensure they have the opportunity for continued employment within the company. Retaining of employees who become disabled whilst employed by the company is offered where appropriate. |
DISCLOSURE IN THE STRATEGIC REPORT |
A review of the business, principle risks and uncertainties and financial risk management are included in the Strategic Report. |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
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 he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, BSS & Co (Accountancy Services) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NORTHGATE HEALTHCARE HOLDINGS LIMITED |
Qualified opinion |
We have audited the financial statements of Northgate 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
- Give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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 qualified opinion |
The directors have not undertaken a formal assessment of property values at the balance sheet date to support their assertion that the values have not changed materially since previous revaluations and acquisitions. We were unable to satisfy ourselves by alternative means concerning property carrying values as at 31st December 2023, which are included in the balance sheet heading freehold property totalling £15,286,530 by using other audit procedures. Consequently, we were unable to determine whether any adjustment to the amounts were necessary. |
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 |
NORTHGATE 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 five, 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 |
NORTHGATE 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: |
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards). |
We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting, taxation legislation, data protection, employment and health and safety legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items. |
With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to making enquiries of management and inspecting legal correspondence. |
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
· Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
· Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
· Performed analytical procedures to identify any unusual or unexpected relationships |
· Tested the appropriateness of journal entries and other adjustments |
· Assessed whether the judgements made in making accounting estimates were indicative of a potential bias |
· Evaluated the business rationale of any significant transactions that were unusual or outside the normal course of business. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
· Agreeing financial statement disclosures to underlying supporting documentation |
· Enquiring of management as to actual and potential litigation and claims; and |
· Reviewing correspondence with HMRC and any other relevant regulators as required. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 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 |
NORTHGATE 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 |
(Statutory Auditor) |
75 Aston Road |
Shifnal |
Shropshire |
TF11 8DU |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 11,651,744 | 9,624,243 |
Cost of sales | 7,215,979 | 6,647,298 |
GROSS PROFIT | 4,435,765 | 2,976,945 |
Administrative expenses | 2,094,802 | 1,958,053 |
2,340,963 | 1,018,892 |
Other operating income | 29,970 | 275,393 |
OPERATING PROFIT | 4 | 2,370,933 | 1,294,285 |
Interest receivable and similar income | 8,672 | - |
2,379,605 | 1,294,285 |
Interest payable and similar expenses | 5 | 519,951 | 262,456 |
PROFIT BEFORE TAXATION | 1,859,654 | 1,031,829 |
Tax on profit | 6 | 449,839 | 358,878 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,409,815 | 672,951 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,409,815 | 672,951 |
OTHER COMPREHENSIVE INCOME |
Revaluation surplus | - | 1,249,877 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
1,249,877 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,409,815 |
1,922,828 |
Total comprehensive income attributable to: |
Owners of the parent | 1,409,815 | 1,922,828 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 81,153 | 130,306 |
Tangible assets | 10 | 16,181,757 | 15,929,813 |
Investments | 11 | - | - |
16,262,910 | 16,060,119 |
CURRENT ASSETS |
Stocks | 12 | 27,899 | 25,544 |
Debtors | 13 | 1,034,671 | 852,396 |
Prepayments and accrued income | 10,196 | 27,436 |
Cash at bank and in hand | 1,520,366 | 1,089,593 |
2,593,132 | 1,994,969 |
CREDITORS |
Amounts falling due within one year | 14 | 2,196,233 | 2,107,679 |
NET CURRENT ASSETS/(LIABILITIES) | 396,899 | (112,710 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
16,659,809 |
15,947,409 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(6,821,566 |
) |
(7,005,181 |
) |
PROVISIONS FOR LIABILITIES | 19 | (1,975,598 | ) | (1,923,463 | ) |
NET ASSETS | 7,862,645 | 7,018,765 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 120 | 120 |
Revaluation reserve | 21 | 4,603,097 | 4,603,097 |
Retained earnings | 21 | 3,259,428 | 2,415,548 |
SHAREHOLDERS' FUNDS | 7,862,645 | 7,018,765 |
The financial statements were approved by the Board of Directors and authorised for issue on 7 October 2024 and were signed on its behalf by: |
A K Haines - Director |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 565,935 | 467,300 |
The financial statements were approved by the Board of Directors and authorised for issue on |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 120 | 2,209,897 | 3,353,220 | 5,563,237 |
Changes in equity |
Dividends | - | (467,300 | ) | - | (467,300 | ) |
Total comprehensive income | - | 672,951 | 1,249,877 | 1,922,828 |
Balance at 31 December 2022 | 120 | 2,415,548 | 4,603,097 | 7,018,765 |
Changes in equity |
Dividends | - | (565,935 | ) | - | (565,935 | ) |
Total comprehensive income | - | 1,409,815 | - | 1,409,815 |
Balance at 31 December 2023 | 120 | 3,259,428 | 4,603,097 | 7,862,645 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,445,231 | 1,422,216 |
Interest paid | (509,471 | ) | (262,456 | ) |
Interest element of hire purchase payments paid |
(10,480 |
) |
- |
Tax paid | (338,598 | ) | 12,960 |
Net cash from operating activities | 1,586,682 | 1,172,720 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (392,688 | ) | (196,492 | ) |
Interest received | 8,672 | - |
Net cash from investing activities | (384,016 | ) | (196,492 | ) |
Cash flows from financing activities |
Loan repayments in year | (395,500 | ) | (453,609 | ) |
Capital repayments in year | 179,855 | (4,608 | ) |
Amount withdrawn by directors | 9,687 | (538 | ) |
Equity dividends paid | (565,935 | ) | (467,300 | ) |
Net cash from financing activities | (771,893 | ) | (926,055 | ) |
Increase in cash and cash equivalents | 430,773 | 50,173 |
Cash and cash equivalents at beginning of year |
2 |
1,089,593 |
1,039,420 |
Cash and cash equivalents at end of year | 2 | 1,520,366 | 1,089,593 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 1,859,654 | 1,031,829 |
Depreciation charges | 189,899 | 137,321 |
Finance costs | 519,951 | 262,456 |
Finance income | (8,672 | ) | - |
2,560,832 | 1,431,606 |
Increase in stocks | (2,355 | ) | (2,152 | ) |
Increase in trade and other debtors | (165,035 | ) | (196,764 | ) |
Increase in trade and other creditors | 51,789 | 189,526 |
Cash generated from operations | 2,445,231 | 1,422,216 |
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 | 1,520,366 | 1,089,593 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,089,593 | 1,039,420 |
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 | 1,089,593 | 430,773 | 1,520,366 |
1,089,593 | 430,773 | 1,520,366 |
Debt |
Finance leases | (9,600 | ) | (179,855 | ) | (189,455 | ) |
Debts falling due within 1 year | (453,609 | ) | 58,112 | (395,497 | ) |
Debts falling due after 1 year | (7,000,189 | ) | 337,385 | (6,662,804 | ) |
(7,463,398 | ) | 215,642 | (7,247,756 | ) |
Total | (6,373,805 | ) | 646,415 | (5,727,390 | ) |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Northgate Healthcare Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
Critical accounting judgements and key sources of estimation uncertainty |
In order to properly apply the company's accounting policies, as described in note 1 above, the directors are required to make judgements and estimates in respect of carrying values of assets and liabilities which may not be apparent from other sources of information. The directors base these critical accounting judgements and estimations on previous historical experience and other factors which the directors judge to be relevant. Judgements and estimates will invariably differ from actual results and hence such judgements and estimates are reviewed by the directors on an ongoing basis. |
Key sources of estimation uncertainty |
The key sources of estimation uncertainty which have a significant effect on the amounts recognised in the financial statements are described below: |
Property valuation |
The care homes owned by the company have been revalued on a regular basis, the latest of these being based on professional valuations prepared in 2022 on two of the homes with the remaining two being in 2017. These have been reviewed each year by the directors. Although this complies with the relevant accounting standards there is a possibility that the realisable value of the homes may differ to the values used in the event of a sale. |
Turnover |
Turnover represents the fees derived from the provision of care services to residents during the year. Income is recognised on a daily basis for the provision of care services. |
Goodwill |
Goodwill, being the amount paid in connection with acquisition of care homes in 2007, 2010, 2015 and 2017 is being amortised evenly over its estimated useful economic life of 10 years. |
Intangible assets |
Intellectual property rights and books of account, being the amount paid in connection with the acquisition of a care home in 2010, are is being amortised evenly over its estimated useful economic life of 10 years. |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
i) Cash and cash Equivalents |
Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks, and bank overdrafts. |
(ii) Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are stated at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
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. |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 6,223,123 | 5,802,900 |
Social security costs | 393,523 | 347,218 |
Other pension costs | 200,726 | 171,228 |
6,817,372 | 6,321,346 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Lane House | 50 | 49 |
The Firs | 96 | 94 |
Meadowfields | 82 | 83 |
Autumn House | 114 | 101 |
The average number of employees by undertakings that were proportionately consolidated during the year was 342 (2022 - 327 ) . |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 22,125 | 24,855 |
Directors' pension contributions to money purchase schemes | 100,000 | 100,000 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Hire of plant and machinery | 69,643 | 84,533 |
Other operating leases | 3,600 | 3,600 |
Depreciation - owned assets | 140,744 | 88,167 |
Goodwill amortisation | 49,153 | 49,153 |
Patents and licences amortisation | - | 1 |
Auditors' remuneration | 8,040 | 8,040 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank loan interest | 497,096 | 262,456 |
Other interest | 12,375 | - |
Hire purchase | 10,480 | - |
519,951 | 262,456 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 397,704 | 170,300 |
Deferred tax | 52,135 | 188,578 |
Tax on profit | 449,839 | 358,878 |
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: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 1,859,654 | 1,031,829 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.521 % (2022 - 19 %) |
437,409 |
196,048 |
Effects of: |
Expenses not deductible for tax purposes | 1,204 | 481 |
Capital allowances in excess of depreciation | (49,334 | ) | (26,229 | ) |
Adjustments to tax charge in respect of previous periods | 8,425 | - |
Deferred tax movement per note 19 | 52,135 | 188,578 |
Total tax charge | 449,839 | 358,878 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 December 2023. |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation surplus | 1,249,877 | - | 1,249,877 |
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. |
The parent company's profit for the financial year was £1,410,449 (2022 - £672,951) |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
A Ordinary shares of £1 each |
Interim | 130,948 | 110,448 |
B Ordinary shares of £1 each |
Interim | 89,000 | 83,000 |
C Ordinary shares of £1 each |
Interim | 130,948 | 110,448 |
D Ordinary shares of £1 each |
Interim | 90,500 | 81,000 |
E Ordinary shares of £1 each |
Interim | 93,404 | 61,803 |
F Ordinary shares of £1 each |
Interim | 31,135 | 20,601 |
565,935 | 467,300 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 1,484,026 | 12,507 | 1,496,533 |
AMORTISATION |
At 1 January 2023 | 1,353,721 | 12,506 | 1,366,227 |
Amortisation for year | 49,153 | - | 49,153 |
At 31 December 2023 | 1,402,874 | 12,506 | 1,415,380 |
NET BOOK VALUE |
At 31 December 2023 | 81,152 | 1 | 81,153 |
At 31 December 2022 | 130,305 | 1 | 130,306 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 15,182,639 | 1,335,793 | 48,420 | 19,202 | 16,586,054 |
Additions | 103,891 | 64,312 | 222,702 | 1,783 | 392,688 |
At 31 December 2023 | 15,286,530 | 1,400,105 | 271,122 | 20,985 | 16,978,742 |
DEPRECIATION |
At 1 January 2023 | - | 611,787 | 30,663 | 13,791 | 656,241 |
Charge for year | - | 78,831 | 60,115 | 1,798 | 140,744 |
At 31 December 2023 | - | 690,618 | 90,778 | 15,589 | 796,985 |
NET BOOK VALUE |
At 31 December 2023 | 15,286,530 | 709,487 | 180,344 | 5,396 | 16,181,757 |
At 31 December 2022 | 15,182,639 | 724,006 | 17,757 | 5,411 | 15,929,813 |
Cost or valuation at 31 December 2023 is represented by: |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2010 | 672,989 | - | - | - | 672,989 |
Valuation in 2013 | 979,584 | - | - | - | 979,584 |
Valuation in 2016 | 2,271,396 | - | - | - | 2,271,396 |
Valuation in 2022 | 1,906,817 | - | - | - | 1,906,817 |
Cost | 9,455,744 | 1,400,105 | 271,122 | 20,985 | 11,147,956 |
15,286,530 | 1,400,105 | 271,122 | 20,985 | 16,978,742 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
31.12.23 | 31.12.22 |
£ | £ |
Cost | 9,455,744 | 9,351,853 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Lane House Residential Care Home was revalued on an open market basis on 2 September 2014 by Knight Frank LLP. |
The Firs Residential Care Home was revalued on an open market basis on 20 March 2017 by Knight Frank LLP. |
Meadowfields Residential Care Home and Autumn House Nursing Home were revalued on 7th October 2022 by Colliers International Valuation UK LLP |
The freehold properties were valued as fully equipped operational entities, having regard to their trading potential. |
The property values were reviewed by the Directors as at 31 December 2023. The Directors have many years experience in the care home industry and therefore consider themselves in a proper position to make this review. In their opinion the market value of the all properties above has not materially altered since the date of the independent valuations. |
11. | FIXED ASSET INVESTMENTS |
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 |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office address is the same as the parent company : White Gables Cross Lane Head Bridgnorth Shropshire WV16 4SJ |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Registered office address is the same as the parent company : White Gables Cross Lane Head Bridgnorth Shropshire WV16 4SJ |
12. | STOCKS |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Stocks | 27,899 | 25,544 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 1,018,076 | 839,205 |
Amounts owed by group undertakings | - | - |
Other debtors | 16,595 | 13,191 |
1,034,671 | 852,396 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 395,497 | 453,609 |
Hire purchase contracts (see note 17) | 30,693 | 4,608 |
Trade creditors | 290,916 | 298,676 |
Tax | 389,279 | 330,173 |
Social security and other taxes | 101,540 | 79,711 |
Other creditors | 502,244 | 492,370 |
Directors' current accounts | 10,918 | 1,232 | - | - |
Accrued expenses | 475,146 | 447,300 |
2,196,233 | 2,107,679 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 16) | 6,662,804 | 7,000,189 |
Hire purchase contracts (see note 17) | 158,762 | 4,992 |
6,821,566 | 7,005,181 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 395,497 | 453,609 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 395,497 | 453,609 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 6,267,307 | 6,546,580 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year | 30,693 | 4,608 |
Between one and five years | 158,762 | 4,992 |
189,455 | 9,600 |
Group |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year | 23,666 | 20,773 |
Between one and five years | 41,466 | 58,453 |
65,132 | 79,226 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans | 7,058,301 | 7,453,798 |
A first legal charge and debenture on freehold property known as Lane House, Lichfield Road, Tamworth, Staffordshire, The Firs, Wodehouse Lane, Sedgley, West Midlands, Meadowfields Residential Care Home, Great Haywood, Stafford and land on the north west and south east side of Pasturefields Lane, Great Haywood, Autumn House and Manor House, Stafford Road, Stone, White Gables Cross Lane Head, Bridgnorth and all other current and future assets exists in respect of secured debts in favour of National Westminster Bank PLC. |
19. | PROVISIONS FOR LIABILITIES |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 747,910 | 695,775 |
On revaluation of properties | 1,227,688 | 1,227,688 |
1,975,598 | 1,923,463 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 1,923,463 |
Accelerated capital allowances | 52,135 |
On revaluation of properties |
Balance at 31 December 2023 | 1,975,598 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
A Ordinary | £1 | 30 | 30 |
B Ordinary | £1 | 10 | 10 |
C Ordinary | £1 | 30 | 30 |
D Ordinary | £1 | 10 | 10 |
30 | E Ordinary | £1 | 30 | 30 |
10 | F Ordinary | £1 | 10 | 10 |
120 | 120 |
NORTHGATE HEALTHCARE HOLDINGS LIMITED (REGISTERED NUMBER: 07260218) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 2,415,548 | 4,603,097 | 7,018,645 |
Profit for the year | 1,409,815 | 1,409,815 |
Dividends | (565,935 | ) | (565,935 | ) |
At 31 December 2023 | 3,259,428 | 4,603,097 | 7,862,525 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
The revaluation reserve is solely attributable to the revaluation of freehold property. |
22. | RELATED PARTY DISCLOSURES |
A first legal charge exists in respect of the secured debts in favour of National Westminster Bank PLC on certain property held by K Haines (Director) |
K Haines (Director) has also given a personal guarantee against the bank loan and overdraft. |
Dividends totalling £565,935 (2022: £467,300) have been declared in respect of shares held by directors and their close family members. |
23. | ULTIMATE CONTROLLING PARTY |
The company is jointly controlled by K Haines, A K Haines and M K Haines. |