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Registered number: 09515922










SEEBECK 122 LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

 
SEEBECK 122 LIMITED
 
 
COMPANY INFORMATION


Directors
K K Sandhu 
N S Sidhu Brar 




Registered number
09515922



Registered office
Boughton House Broomhill
Holdenby Road

Spratton

Northampton

NN6 8LD




Independent auditor
MHA

Century House

The Lakes

Northampton

NN4 7HD





 
SEEBECK 122 LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 7
Independent Auditor's Report
 
8 - 10
Consolidated Statement of 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 Statement of Cash Flows
 
16 - 17
Consolidated Analysis of Net Debt
 
18
Notes to the Financial Statements
 
19 - 37


 
SEEBECK 122 LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023

Introduction
 
The Directors present the Strategic Report and financial statements for the year ended 31 August 2023.

Business review
 
The principal activity of the Group continued to be that of owning and operating nursing homes and private hospital facilities in support of mental health services.

Principal risks and uncertainties
 
Commissioners
A substantial proportion of the Group's revenue derives from public funded bodies such as Local Authorities, ICB's (Integrated Care Boards, formerly Clinical Commissioning Group) and other NHS (National Health Service) Trusts, although it should be noted that the Group is a specialist provider of nursing and hospital services. The directors are aware that pressure on fees and volume of placements could cause such publicly funded bodies to allocate less money to the types of services provided by the Group. Also, in common with the majority of government-funded service providers, most of the Group's price changes take effect annually on 1 April, and are linked to general inflation indices such as the Retail Price Index ("RPI"). Such changes could have a material impact on the Group's revenue. These factors are to a great extent, beyond the control of the Group although it manages its risk by spreading its customer base and maintaining good relationships with the commissioners.
Regulators
All of the Group's services are subject to a high level of regulation by various regulatory bodies. New regulations may be introduced that could impose increased costs on the Group's operations. The Group is unable to predict the content of new legislation and regulations and their effect on its business.
Inspections are carried out by regulators on both an announced and unannounced basis. The failure to comply with Government Regulations, the receipt of a negative report that leads to a finding of non-compliance, or the failure of the Group to cure any defect noted in an inspection, could result in the revocation of the Group's registration. The Group conducts regular internal audits of safety and compliance with regulatory requirements.
Finance
The Group’s main financial composition of cash, trade debtors and trade creditors as well as its debt are well managed. These financial instruments provide the Group with the necessary funding to undertake its activities. Their risks are managed through robust policies and procedures as well as key performance indicators that are monitored monthly. In the current high inflationary environment, strong cost control and strategies to deal with price risks are mitigated to manage some of the impact. As a specialist niche provider, the directors believe that the Group’s position is stable and that the demand for their care pathways will not diminish.  However, the directors are in constant communication with the Group’s stakeholders to ensure that actions are taken in pre-emption of any possible unwillingness by funders to adjust fees in line with inflation.
The majority of the Group's debt is in relation to fixed term loans with High Street lenders with pre-agreed terms and specified loan interest margins. The Group monitors interest rate movements and would review its gearing levels should rates rise significantly.

Page 1

 
SEEBECK 122 LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Financial and non financial key performance indicators
 
The directors monitor progress on the overall strategy and the individual elements by reference to the following key performance indicators:
Turnover for the year is £33,895,535 (2022 - £24,915,458)
Operating loss for the year is £4,937,922 (2022 - £4,866,461)
The bed occupancy rate percentage for the year is 85% (2022 - 79%).

Going concern

The financial statements have been prepared on a going concern basis. The Directors have a reasonable expectation and consider that the Group has sufficient resources to continue in operations for the foreseeable future.  The directors do, however, acknowledge that uncertainty around the timing of re-admissions due to the delayed rating report of The Broomhill Hospital (caused by internal IT technical issues within CQC) and the maturity of the loan liabilities falling due within one year, may be perceived as material uncertainties that may cast some doubt on the ability of the group to continue as a going concern.  Further details of this assessment can be found in note 2.3 of the financial statements.

Future developments

The directors intend for the Group to continue its strategy of organic growth. During 2024, the directors are keen to consolidate the progress made in 2023 and create a robust foundation for future growth.

Directors' statement of compliance with duty to promote the success of the Group
 
Section 172(1) Statement
The directors always considers that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, having regard to the stakeholders and matters set out in s172(1) (a) - (f) of the Companies Act 2006, in the decisions taken during the year ended 31 August 2023.
The Group’s strategy, was formally presented to the whole Organisation.  It is designed to have a long term beneficial impact on the group and to contribute to its success in delivering a high quality of service across all of the business divisions.
  
The Group believes that the embedding of the values with the purpose as its foundation, the culture of St Matthews will reflect honesty and openness where speaking up is supported and development is through learning.
Our employees remain fundamental to the delivery of this strategy. We aim to be a responsible employer in our approach to the pay and benefits that our employees receive. The health, safety and well-being of our team members is one of our primary considerations in the way we conduct our business.  To this end we have introduced a number of new features that reinforce our core values.  The Group introduced the first step(s) of its Fairness Campaign by reviewing all of the banding and point structure of pay.  Additionally, new healthcare benefits were announced to the workforce.  Further steps are planned to enhance the offering to the workforce and embed the value of People First.
Engagement with our stakeholders continues to be the Groups focus. We meet with our major partners regularly throughout the year and take the appropriate action, when necessary, to prevent involvement in modern slavery, corruption, bribery and breaches of competition law.
 
Page 2

 
SEEBECK 122 LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023


Our strategy considers the impact of the Group’s operations on the community, the environment and our wider social responsibilities; in particular how we comply with environmental legislation and pursue waste saving opportunities and react promptly to local concerns.
The directors' intention is to behave in a responsible manner, operating within the high standards of business conduct and good governance expected for a Group such as ours and in doing so, the directors believe it will contribute to the delivery of the strategy. The intention is to nurture our reputation, through both the construction and delivery of our plan, that reflects our values, beliefs and culture.


This report was approved by the board and signed on its behalf.





................................................
K K Sandhu
Director

Date: 1 October 2024

Page 3

 
SEEBECK 122 LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023

The directors present their report and the financial statements for the year ended 31 August 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to £6,537,157 (2022 - loss £5,459,388).

Directors

The directors who served during the year were:

K K Sandhu 
N S Sidhu Brar 

Page 4

 
SEEBECK 122 LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Financial instruments

The Group has various financial assets and liabilities such as trade receivables and trade payables arising
directly from its operations. In addition the Group has other financial instruments including loans and
overdrafts. 
i) Liquidity risk 
The Group manages its cash and borrowing requirements to optimise interest income and minimise expense,
whilst ensuring that the Group has sufficient liquid resources to meet the operating needs of its business.
ii) Interest rate risk 
The Group is exposed to interest rate risk on various credit facilities. 
iii) Credit risk 
Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary

Engagement with employees

The Group communicates to employees in the following ways:
•  Quarterly newsletter
•  Annual update session for all staff that gives updates about the Company in general (including finances)
•  A monthly learning alert which details any incidents that other staff should learn from
•  A monthly training newsletter detailing when training is being held
•  A monthly management meeting – minutes are put online
•  An annual satisfaction survey for staff to feed into
•  The latest CQC report is kept in reception for employees to review
•  A comments/suggestion/employee award box is in each unit for staff to feed into
•  A quarterly carer forum for patients/family/managers – minutes are sent to all units
• A bi-monthly ‘reg-17’ visit where a director walks around each unit – a report is given to units

Engagement with suppliers, customers and others

The Group strives to provide a high quality service to both our service users and funders.  This is delivered through the comprehensive and extensive quality management systems that support all aspects of the Group's delivery.  The recruitment, retention and training processes are designed to ensure our staff are equipped to provide the highest quality of  service to support the needs of our service users.  The Group consults regularly with its customers through surveys as well as receiving feedback directly from communications with our employees.
Our suppliers are fundamental to our ability to deliver safe and quality care.  The Group aims to develop open and honest communication with its key suppliers to ensure the relationships are mutually beneficial and support the needs of our service users.

Page 5

 
SEEBECK 122 LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Disabled employees

The Group gives full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities.
The directors endeavour to ensure that as far as possible the training, career development and promotion of disabled persons is the same as for other employees. Should employees become disabled, every effort is made to ensure that their employment continues and appropriate retraining is received.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group has used the year to 31 August 2023, (with year ending 31 August 2022 as its benchmark year) to calculate the emission of the following tonnes of CO2e, in undertaking its business activities.
Energy consumption:       FY23            FY22
          KWh              KWh
Electricity         948,546  990,532
Gas          2,584,748  3,251,108
Aggregate of energy consumption in the year    3,533,294  4,241,640
Emission of CO2 equivalent      FY23   FY22
          Metric tonnes Metric tonnes
Scope 1 – Gas        472   593
Scope 2 - Electricity       183   192
Aggregate of energy consumption in the year    655   785

Intensity ratio (per bed)       FY23   FY22
Kg Co2 per bed (capacity)      1,956   2,343
Kg Co2 per bed (occupied)      2,307   3,355
Quantification and reporting methodology
The consumption has been collected from the energy bills from our suppliers.  The emissions have been calculated from KWh using the conversion factors published by BEIS in June 2022.
Intensity measurement
In selecting the intensity factor that would give the best indication of our energy efficiency overall it was noted that the majority of our emissions are from gas and electricity (being 27% electricity and 73% gas).  To normalise the emissions from each unit, it was decided to use a simple measurement of beds in total across the group.  Two indicators have been used to determine efficiency, capacity beds (ie total number in each unit) and occupied beds (ie average number of service users throughout the year) to provide an indication of impact of occupancy on the intensity of usage and efficiency.



Matters covered in the Group Strategic Report

In accordance with Section 414c (ii) of the Companies Act 2006, the Directors have chosen to include the following items in the Company Strategic report:
- Future Developments

Page 6

 
SEEBECK 122 LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Auditor

The auditor, MHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
K K Sandhu
Director

Date: 1 October 2024

Boughton House Broomhill
Holdenby Road
Spratton
Northampton
NN6 8LD

Page 7

 
SEEBECK 122 LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEEBECK 122 LIMITED
 

Opinion


We have audited the financial statements of Seebeck 122 Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2023, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group and Company Statement of Changes in Equity and the Group Statement of Cash Flows. and the notes to the financial statements, including significant accounting policiesThe 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, the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 August 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Material uncertainty related to going concern


We draw attention to Note 2.2 in the financial statements, which indicates that the group received an Inadequate Care Quality Commission rating in February 2024, resulting in the inactivity of admissions for the largest care facility. This note also refers to the bank loan facility terms which extend to a period of fewer than twelve months.
As stated in Note 2.2, these events or conditions, along with other matters as set forth in Note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.


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. 


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 8

 
SEEBECK 122 LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEEBECK 122 LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditor's Report thereon.  The directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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 Directors' Responsibilities Statement set out on page 4, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the 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.


Page 9

 
SEEBECK 122 LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEEBECK 122 LIMITED (CONTINUED)


Auditor responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management around actual and potential litigation and claims;
- Enquiry of staff to identify any instances of non-compliance with laws and regulations;
-  Performing audit work over the risk of management override of controls, including testing of journal    entries and other adjustments for appropriateness and review of accounting estimates for bias;
- Reviewing financial statement disclosures and testing supporting documentation to assess compliance    with applicable laws and regulations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's Report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Rebecca Hughes BSc (Hons) FCCA (Senior Statutory Auditor)
for and on behalf of
MHA
Statutory Auditor
Northampton, United Kingdom

 
Date: 
3 October 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Page 10

 
SEEBECK 122 LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
33,895,535
24,915,458

Cost of sales
  
(24,452,324)
(19,727,959)

Gross profit
  
9,443,211
5,187,499

Administrative expenses
  
(11,324,572)
(10,228,930)

Exceptional administrative expenses
 6 
(3,056,561)
-

Other operating income
 5 
-
174,970

Operating loss
 7 
(4,937,922)
(4,866,461)

Interest receivable and similar income
 11 
1,579
-

Interest payable and similar expenses
 12 
(1,715,671)
(697,208)

Loss before taxation
  
(6,652,014)
(5,563,669)

Tax on loss
 13 
114,857
104,281

Loss for the financial year
  
(6,537,157)
(5,459,388)

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 19 to 37 form part of these financial statements.

All activities derive from continuing operations

Page 11

 
SEEBECK 122 LIMITED
REGISTERED NUMBER: 09515922

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
13,554,410
15,475,233

Tangible assets
 15 
49,559,931
50,895,354

  
63,114,341
66,370,587

Current assets
  

Stocks
 17 
55,436
24,950

Debtors: amounts falling due within one year
 18 
18,174,050
19,948,373

Cash at bank and in hand
 19 
434,924
200,586

  
18,664,410
20,173,909

Creditors: amounts falling due within one year
 20 
(31,261,205)
(29,375,984)

Net current liabilities
  
 
 
(12,596,795)
 
 
(9,202,075)

Total assets less current liabilities
  
50,517,546
57,168,512

Provisions for liabilities
  

Deferred taxation
 21 
(8,208,766)
(8,322,575)

Net assets
  
42,308,780
48,845,937


Capital and reserves
  

Called up share capital 
 22 
58,000,000
58,000,000

Profit and loss account
 23 
(15,691,220)
(9,154,063)

  
42,308,780
48,845,937


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
N S Sidhu Brar
Director

Date: 1 October 2024

The notes on pages 19 to 37 form part of these financial statements.

Page 12

 
SEEBECK 122 LIMITED
REGISTERED NUMBER: 09515922

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 16 
57,999,998
57,999,998

Current assets
  

Cash at bank and in hand
 19 
2
2

Total assets less current liabilities
  
 
 
58,000,000
 
 
58,000,000

  

  

Net assets
  
58,000,000
58,000,000


Capital and reserves
  

Called up share capital 
 22 
58,000,000
58,000,000


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
N S Sidhu Brar
Director

Date: 1 October 2024

The notes on pages 19 to 37 form part of these financial statements.

Page 13

 
SEEBECK 122 LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 September 2021
58,000,000
(3,694,675)
54,305,325


Comprehensive income for the year

Loss for the year
-
(5,459,388)
(5,459,388)



At 1 September 2022 (as previously stated)
58,000,000
(8,719,373)
49,280,627

Prior year adjustment - correction of error
-
(579,587)
(579,587)

Prior year adjustment - change in accounting policy
-
144,897
144,897


At 1 September 2022 (as restated)
58,000,000
(9,154,063)
48,845,937


Comprehensive income for the year

Loss for the year
-
(6,537,157)
(6,537,157)


At 31 August 2023
58,000,000
(15,691,220)
42,308,780


Page 14

 
SEEBECK 122 LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023


Called up share capital
Total equity

£
£


At 1 September 2021
58,000,000
58,000,000



At 1 September 2022
58,000,000
58,000,000


At 31 August 2023
58,000,000
58,000,000


The notes on pages 19 to 37 form part of these financial statements.

Page 15

 
SEEBECK 122 LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023

As restated
2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(6,537,157)
(5,459,388)

Adjustments for:

Amortisation of intangible assets
1,920,823
1,920,823

Depreciation of tangible assets
1,662,561
1,008,429

Loss on disposal of tangible assets
-
(11,612)

Government grants
-
(174,970)

Interest paid
1,715,671
697,208

Interest received
(1,579)
-

Taxation charge
(114,857)
40,616

(Increase)/decrease in stocks
(30,486)
-

(Increase) in debtors
(1,535,564)
(790,723)

Decrease in amounts owed by associates
3,104,028
39,661

Increase in creditors
675,649
2,053,705

Increase in amounts owed to associates
1,163,747
2,157,293

Corporation tax received
314,551
149,025

Prior year adjustment for depreciation on revaluation
-
579,587

Prior year adjustment for tax adjustment on additional depreciation
-
(144,897)

Net cash generated from operating activities

2,337,387
2,064,757


Cash flows from investing activities

Purchase of tangible fixed assets
(327,138)
(822,048)

Sale of tangible fixed assets
-
11,612

Government grants received
-
174,970

Interest received
1,579
-

Net cash from investing activities

(325,559)
(635,466)
Page 16

 
SEEBECK 122 LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

As restated

2023
2022

£
£



Cash flows from financing activities

Repayment of loans
(441,854)
(1,103,436)

Interest paid
(1,715,671)
(697,208)

Net cash used in financing activities
(2,157,525)
(1,800,644)

Net (decrease) in cash and cash equivalents
(145,697)
(371,353)

Cash and cash equivalents at beginning of year
122,246
493,599

Cash and cash equivalents at the end of year
(23,451)
122,246


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
434,924
200,586

Bank overdrafts
(458,375)
(78,340)

(23,451)
122,246


The notes on pages 19 to 37 form part of these financial statements.

Page 17

 
SEEBECK 122 LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2023




At 1 September 2022
Cash flows
At 31 August 2023
£

£

£

Cash at bank and in hand

200,586

234,338

434,924

Bank overdrafts

(78,340)

78,340

-

Debt due within 1 year

(22,739,304)

(16,521)

(22,755,825)


(22,617,058)
296,157
(22,320,901)

The notes on pages 19 to 37 form part of these financial statements.

Page 18

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

1.


General information

Seebeck 122 Limited is a private Company limited by shares, incorporated in England and Wales, registered number 09515922. The registered office is at Boughton House, Holdenby Road, Spratton, Northampton, NN6 8LD.
The functional and presentational currency of the Company and the Group is pounds sterling (£) and rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 19

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. The Directors have a reasonable expectation and consider that the Group has sufficient resources to continue in operations for the foreseeable future.  To support this consideration, the Directors have prepared budgets for the coming 12 months as well as forecasts of future performance (which include future cash flows). These budgets and forecast have reflected not only the increased occupancy anticipated but also other regulatory and governmental challenges as well as staff investment needed to meet the expected growth of occupancy. The mitigating actions being undertaken in response to Care Quality Commission (CQC) and local Integrated Care Board (ICB) inspections, have been critical in the assumptions used in the evaluation of future occupancy and therefore performance.  In particular, the Directors have assessed, conservatively, the growth in occupancy of its largest hospital facility, The Broomhill Hospital, following its re-rating by CQC to “Requires Improvement”. 
Despite the current actions being taken and the comments below, the directors do, however, acknowledge that uncertainty around the timing of re-admissions due to the delayed rating report of The Broomhill Hospital (caused by internal IT technical issues within CQC) and the maturity of the loan liabilities falling due within one year, may be perceived as material uncertainties that may cast some doubt on the ability of the group   to continue as a going concern. However, the Directors believe strongly that there is sufficient evidence to support their confidence that these challenges can be met.
(i) The Directors have an expectation to see admissions commence following the circulation of an open letter from the Chief Nursing Officer of the local ICB to all stakeholders.  They have confirmed the unexpected serious IT challenges being faced by CQC (who acknowledged this occurrence and impact) in publishing the new report on their portal.  This communication intervention has not only seen an increase in discussions about referral of new cases for Broomhill but also paved a pathway for long term strategic collaborative partnerships. New placements are now being approved for admission by the respective funders.  Furthermore, a clear timeline and phases of admissions was identified by them, confirming the importance of this hospital to the ICB and their continued support of Broomhill.   
(ii) With the backing from and relationship with their banks, the Directors strongly believe that these facilities will be renegotiated to beyond the current terms and point to a number of important key factors: (a) the support being provided by the banks in refinancing its facilities over the last few years and (b) the continued support being provided as evidenced in the latest agreed refinancing of the existing facility agreement, provided to align with the Group’s current needs.
On this basis, and having given due regards to the main issues, the Directors continue to believe that the going concern basis of accounting in preparing the financial statements remains appropriate. 

 
2.4

Revenue

Turnover represents amounts receivable for services for long term residential contracts. Revenue is recognised when the company's contractual obligation is fulfilled, that is typically when the service user has received care services from the company, which is usually provided on a weekly basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and rebates.

Page 20

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.13

Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of income and retained earnings over its useful economic life.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following basis:
  Goodwill    -   10 years straight line

Page 22

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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

Depreciation is provided on the following basis:

Freehold property
-
2%
Motor vehicles
-
25%
Fixtures and fittings
-
25%
Office equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 23

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when
Page 24

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Group’s accounting policies, which are described above, management have been required to make estimates and assumptions. These estimates which relate to the carrying values of assets and liabilities, where not readily available from other sources, are based on underlying assumptions and experience. Actual results may differ from these estimates. These estimates and assumptions are reviewed on an on-going basis. Key policies include assessing amortisation for Goodwill or depreciation for tangible fixed assets. 


4.


Turnover

The whole of the turnover is attributable to the principal activity of the Group.

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
-
174,970



6.


Exceptional items

2023
2022
£
£


Impairment of amounts owed by joint ventures and associated undertakings
3,056,561
-

Page 25

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

7.


Operating loss

The operating loss is stated after charging:

As restated
2023
2022
£
£

Depreciation of tangible fixed assets
1,082,974
1,588,016

Amortisation of intangible assets
1,920,823
1,920,823

Other operating lease rentals
52,670
53,970

Impairment of amounts owed by joint ventures and associated undertakings
3,056,561
-

For details of the prior year adjustment see note 23.


8.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor and its associates:


2023
2022
£
£

Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent Company's financial statements
51,300
48,558

Fees payable to the Company's auditor and its associates in respect of:

Taxation compliance services
-
42,000

All other services

-
136,000

51,300
226,558

Page 26

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

9.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
23,593,371
19,907,641
-
-

Social security costs
1,504,570
1,330,887
-
-

Cost of defined contribution scheme
273,213
243,772
-
-

25,371,154
21,482,300
-
-


Included within Wages and Salaries is agency staff costs of £7,860,981 (2022: £5,372,243).

The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Managers
27
19
2
2



Nurses and care workers
512
502
-
-



Kitchen
46
43
-
-



Administration and others
74
59
-
-

659
623
2
2


10.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
18,200
18,798



11.


Interest receivable

2023
2022
£
£


Other interest receivable
1,579
-

Page 27

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

12.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
1,703,226
688,102

Other loan interest payable
2,471
4,035

Other interest payable
9,974
5,071

1,715,671
697,208


13.


Taxation


As restated
2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
(1,048)
(19,969)


Total current tax
(1,048)
(19,969)

Deferred tax


Origination and reversal of timing differences
(113,809)
(84,312)

Total deferred tax
(113,809)
(84,312)


Taxation on loss on ordinary activities
(114,857)
(104,281)
Page 28

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

As restated
2023
2022
£
£


Loss on ordinary activities before tax
(6,652,014)
(5,563,669)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
(1,663,004)
(946,975)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
297,061
364,957

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,299
61,732

Adjustments to tax charge in respect of prior periods
(1,048)
(19,969)

Short-term timing difference leading to an increase (decrease) in taxation
(9,585)
94,967

Changes in provisions leading to an increase (decrease) in the tax charge
1,122,008
(146,812)

Unrelieved tax losses carried forward
411,210
487,819

Group relief
(247,741)
-

Difference due to change in tax rate in the year
(27,057)
-

Total tax charge for the year
(114,857)
(104,281)

For details of the prior year adjustment see note 23


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 29

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

14.


Intangible assets

Group





Goodwill

£



Cost


At 1 September 2022
25,448,650



At 31 August 2023

25,448,650



Amortisation


At 1 September 2022
9,973,417


Charge for the year on owned assets
1,920,823



At 31 August 2023

11,894,240



Net book value



At 31 August 2023
13,554,410



At 31 August 2022
15,475,233



Page 30

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

15.


Tangible fixed assets

Group






Freehold property
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost


At 1 September 2022
54,339,910
102,840
3,984,881
185,844
58,613,475


Additions
-
-
288,772
38,366
327,138



At 31 August 2023

54,339,910
102,840
4,273,653
224,210
58,940,613



Depreciation


At 1 September 2022 (as previously stated)
4,436,425
69,719
2,529,096
103,294
7,138,534


Prior Year Adjustment
579,587
-
-
-
579,587


At 1 September 2022 (as restated)
5,016,012
69,719
2,529,096
103,294
7,718,121


Charge for the year on owned assets
1,007,245
14,038
593,936
47,342
1,662,561



At 31 August 2023

6,023,257
83,757
3,123,032
150,636
9,380,682



Net book value



At 31 August 2023
48,316,653
19,083
1,150,621
73,574
49,559,931



At 31 August 2022 (as restated)
49,323,898
33,121
1,455,785
82,550
50,895,354

For details of the prior year adjustment see note 23.

Page 31

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2022
57,999,998



At 31 August 2023
57,999,998






Net book value



At 31 August 2023
57,999,998



At 31 August 2022
57,999,998


The following were subsidiary undertakings of the Company:
St Matthews Holdings Limited, registered office address Boughton House Broomhill, Holdenby Road, Spratton, Northampton, NN6 8LD. The Company owns 100% of the ordinary share capital of this subsidiary.
St Matthews Limited, registered office address Boughton House Broomhill, Holdenby Road, Spratton, Northampton, NN6 8LD. St Matthews Holdings Limited owns 100% of the ordinary share capital of this subsidiary.
St Matthews (North) Limited, registered office address Boughton House Broomhill, Holdenby Road, Spratton, Northampton, NN6 8LD. St Matthews Holdings Limited owns 100% of the ordinary share capital of this subsidiary.
St Matthews (West) Limited, registered office address Boughton House Broomhill, Holdenby Road, Spratton, Northampton, NN6 8LD. St Matthews Holdings Limited owns 100% of the ordinary share capital of this subsidiary.


17.


Stocks

Group
Group
2023
2022
£
£

Consumables
55,436
24,950


Page 32

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

18.


Debtors

Group

Group
As restated
2023
2022
£
£


Trade debtors
2,737,124
1,500,912

Amounts owed by joint ventures and associated undertakings
10,919,083
14,023,111

Other debtors
2,373,417
2,579,276

Prepayments and accrued income
1,371,144
1,100,357

Tax recoverable
773,282
744,717

18,174,050
19,948,373


Amounts owed by joint ventures and associated undertakings are unsecured, interest free, have no fixed
date of repayment and are repayable on demand. This is stated after a provisison for impairment of £3,056,561 (2022 - £nil). 
Trade debtors are stated after provision for impairment of £213,035 (2022: £180,790).
For details of the prior year adjustment see note 23.


19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
434,924
200,586
2
2

Less: bank overdrafts
(458,375)
(78,340)
-
-

(23,451)
122,246
2
2


Page 33

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

20.


Creditors: Amounts falling due within one year

Group

Group
As restated
2023
2022
£
£

Bank overdrafts
458,375
78,340

Bank loans
22,297,450
22,739,304

Trade creditors
1,239,560
2,398,355

Amounts owed to associates
3,321,040
2,157,293

Corporation tax
107,644
-

Other taxation and social security
1,061,071
638,464

Other creditors
169,417
72,206

Accruals and deferred income
2,606,648
1,292,022

31,261,205
29,375,984


Bank loans are secured by way of legal charges over the assets of the business.
Amounts owed to group associates are unsecured, interest free, have no fixed date of repayment and
are repayable on demand. 
For details of the prior year adjustment see note 23.

Page 34

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

21.


Deferred taxation


Group



2023
As restated
2022


£

£






At beginning of year
(8,322,575)
(8,406,887)


Charged to profit or loss
113,809
84,312



At end of year
(8,208,766)
(8,322,575)

Group

Group
As restated
2023
2022
£
£

Accelerated capital allowances
(8,215,703)
(8,485,306)

Other timing differences
6,937
162,731

(8,208,766)
(8,322,575)

For details of the prior year adjustment see note 24.


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



58,000,000 (2022 - 58,000,000) Ordinary shares of £1.00 each
58,000,000
58,000,000



23.


Reserves

Profit and loss account

The profit and loss account reserve includes all current and prior period retained profits and losses.

Page 35

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

24.


Prior year adjustment

As at 31 August 2022 there was a group balance of £5,091,223 in both debtors and creditors that was not eliminated on consolidation. This has been adjusted in the current year, please refer to note 17 and note 19.
As at 31 August 2022 no depreciation was charged on the revalued portion of freehold property. As at 31 October 2023 this has been corrected to £579,587, please refer to note 14.
The impact of this prior year adjustment has been to increase the loss before tax by £579,587, reduce the deferred tax provision by £144,897 and reduce reserves by £434,690.


25.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Contributions totalling £273,213 (2022 - £71,335) were payable to the fund at the balance sheet date and are included in creditors.


26.


Commitments under operating leases

At 31 August 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
46,624
-

Later than 1 year and not later than 5 years
10,070
-

56,694
-

27.


Transactions with directors

During the year the Group advanced £9,775 (2022 - £151,600) and was repaid £65,500 (2022 - £Nil) to/from a director of the Company. At 31 August 2023 amounts owed to the Group from this director totalled £1,423,816 (2022 - £1,479,541). No interest is charged on this advance and the amount is due on demand.
During the year the Group advanced £Nil (2022 - £171,607) and was repaid £61,673 (2022 - £Nil) to/from a director of the Group. At 31 August 2023 amounts owed to the Group from this director totalled £747,127 (2022 - £808,880). No interest is charged on this advance and the amount is due on demand.

Page 36

 
SEEBECK 122 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

28.


Related party transactions

The Company has taken advantage of the provisions available under FRS102 section 33.1A not to report
transactions with fellow group members wholly owned by the ultimate parent undertaking.
At the year end, the Group was owed £10,919,083 (2022 - £14,023,111) from companies under common control. This is stated after a provision for impairment of £3,056,536 (2022- £nil).
At the year end, the Group owed £3,584,064 (2022 - £2,157,293) to companies under common control.


29.


Controlling party

In the opinion of the directors there is no ultimate controlling party.

Page 37