IRIS Accounts Production v24.2.0.383 05773858 Board of Directors 1.1.23 31.12.23 31.12.23 the provision of residential care services. true false true true false false false true false Auditors Opinion Ordinary 1.00000 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REGISTERED NUMBER: 05773858 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

NORTHGATE HEALTHCARE LIMITED

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


NORTHGATE HEALTHCARE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: A K Haines
K Haines
M K Haines





SECRETARY: K Haines





REGISTERED OFFICE: White Gables
Cross Lane Head
Bridgnorth
Shropshire
WV16 4SJ





REGISTERED NUMBER: 05773858 (England and Wales)





AUDITORS: BSS & Co (Accountancy Services) Limited
(Statutory Auditor)
75 Aston Road
Shifnal
Shropshire
TF11 8DU

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report 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 LIMITED (REGISTERED NUMBER: 05773858)

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:





A K Haines - Director


7 October 2024

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
Interim dividends totalling £5659.3508 per share were paid during the year. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 565,936 .

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.

A K Haines
K Haines
M K Haines

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.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


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 company'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 company'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:





A K Haines - Director


7 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NORTHGATE HEALTHCARE LIMITED

Qualified opinion
We have audited the financial statements of Northgate Healthcare Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 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 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 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 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 LIMITED


Matters on which we are required to report by exception
In the light of the 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 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, 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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 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 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 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.




Taheer Afzal A.C.A. (Senior Statutory Auditor)
for and on behalf of BSS & Co (Accountancy Services) Limited
(Statutory Auditor)
75 Aston Road
Shifnal
Shropshire
TF11 8DU

7 October 2024

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

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 2,094,800 1,958,053
2,340,965 1,018,892

Other operating income 29,970 275,393
OPERATING PROFIT 4 2,370,935 1,294,285

Interest receivable and similar income 8,672 -
2,379,607 1,294,285

Interest payable and similar expenses 5 519,951 262,456
PROFIT BEFORE TAXATION 1,859,656 1,031,829

Tax on profit 6 449,839 358,878
PROFIT FOR THE FINANCIAL YEAR 1,409,817 672,951

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   

PROFIT FOR THE YEAR 1,409,817 672,951


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

1,409,817

1,922,828

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

BALANCE SHEET
31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 81,153 130,306
Tangible assets 9 16,181,757 15,929,813
16,262,910 16,060,119

CURRENT ASSETS
Stocks 10 27,899 25,544
Debtors 11 1,034,671 852,396
Prepayments and accrued income 10,196 27,436
Cash at bank and in hand 1,520,316 1,089,544
2,593,082 1,994,920
CREDITORS
Amounts falling due within one year 12 2,199,702 2,111,150
NET CURRENT ASSETS/(LIABILITIES) 393,380 (116,230 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

16,656,290

15,943,889

CREDITORS
Amounts falling due after more than one
year

13

(6,821,566

)

(7,005,181

)

PROVISIONS FOR LIABILITIES 17 (1,975,598 ) (1,923,463 )
NET ASSETS 7,859,126 7,015,245

CAPITAL AND RESERVES
Called up share capital 18 100 100
Revaluation reserve 19 4,603,097 4,603,097
Retained earnings 19 3,255,929 2,412,048
SHAREHOLDERS' FUNDS 7,859,126 7,015,245

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 LIMITED (REGISTERED NUMBER: 05773858)

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 100 2,206,397 3,353,220 5,559,717

Changes in equity
Dividends - (467,300 ) - (467,300 )
Total comprehensive income - 672,951 1,249,877 1,922,828
Balance at 31 December 2022 100 2,412,048 4,603,097 7,015,245

Changes in equity
Dividends - (565,936 ) - (565,936 )
Total comprehensive income - 1,409,817 - 1,409,817
Balance at 31 December 2023 100 3,255,929 4,603,097 7,859,126

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

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 2,445,232 1,422,217
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 1,586,683 1,172,721

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 9,686 (538 )
Equity dividends paid (565,936 ) (467,300 )
Net cash from financing activities (771,895 ) (926,055 )

Increase in cash and cash equivalents 430,772 50,174
Cash and cash equivalents at beginning of
year

2

1,089,544

1,039,370

Cash and cash equivalents at end of year 2 1,520,316 1,089,544

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE 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 1,859,656 1,031,829
Depreciation charges 189,899 137,321
Finance costs 519,951 262,456
Finance income (8,672 ) -
2,560,834 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 51,788 189,527
Cash generated from operations 2,445,232 1,422,217

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 1,520,316 1,089,544
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,089,544 1,039,370


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 1,089,544 430,772 1,520,316
1,089,544 430,772 1,520,316
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 (6,373,854 ) 646,414 (5,727,440 )

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Northgate Healthcare Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been 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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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 nursing 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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Fixtures fittings & equipment - 10% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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 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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. EMPLOYEES AND DIRECTORS - continued

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
342 327

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
Intellectual property & books amortisation - 1
Auditors' remuneration 8,040 6,600

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

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

UK corporation tax has been charged at 19% .

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

6. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 1,859,656 1,031,829
Profit multiplied by the standard rate of corporation tax in the UK of
23.521% (2022 - 19%)

437,410

196,048

Effects of:
Expenses not deductible for tax purposes 1,203 481
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 17 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. DIVIDENDS
31.12.23 31.12.22
£    £   
Interim 565,936 467,300

8. INTANGIBLE FIXED ASSETS
Intellectual
property
Goodwill & books 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 LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold fittings Motor Computer
property & equipment 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 fittings Motor Computer
property & equipment 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 LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. TANGIBLE FIXED ASSETS - continued

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.

10. STOCKS
31.12.23 31.12.22
£    £   
Stocks - food and medical
supplies 27,899 25,544

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 1,018,076 839,205
Other debtors 16,595 13,191
1,034,671 852,396

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 14) 395,497 453,609
Hire purchase contracts (see note 15) 30,693 4,608
Trade creditors 290,915 298,678
Amounts owed to group undertakings 3,469 6,110
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
Accruals and deferred income 475,147 444,659
2,199,702 2,111,150

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Bank loans (see note 14) 6,662,804 7,000,189
Hire purchase contracts (see note 15) 158,762 4,992
6,821,566 7,005,181

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

14. LOANS

An analysis of the maturity of loans is given below:

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

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

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

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 LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

16. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Bank loans 7,058,301 7,453,798
Hire purchase contracts 189,455 -
7,247,756 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, Staffordshire,White Gables Cross Lane Head, Bridgnorth Shropshire and all other current and future assets exists in respect of secured debts in favour of National Westminster Bank PLC.

17. PROVISIONS FOR LIABILITIES
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

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

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
100 Ordinary £1 100 100

NORTHGATE HEALTHCARE LIMITED (REGISTERED NUMBER: 05773858)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

19. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2023 2,412,048 4,603,097 7,015,145
Profit for the year 1,409,817 1,409,817
Dividends (565,936 ) (565,936 )
At 31 December 2023 3,255,929 4,603,097 7,859,026

The revaluation reserve is solely attributable to the revaluation of freehold property.

20. 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.

K Haines has also given a personal guarantee against the bank loan and overdraft.

21. ULTIMATE CONTROLLING PARTY

The company is controlled by the Haines family, who wholly own and control Northgate Healthcare Holdings Limited, a company which owns 100% of the issued share capital of Northgate Healthcare Limited. Consolidated financial statements, in which this company is included, are publicly available from the Registrar of Companies, Cardiff.