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Registered number: 06971934










ST. MATTHEWS (NORTH) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

 
ST. MATTHEWS (NORTH) LIMITED
 
 
COMPANY INFORMATION


Directors
K K Sandhu 
N S Sidhu Brar 




Registered number
06971934



Registered office
Boughton House Broomhill
Holdenby Road

Spratton

Northampton

NN6 8LD




Independent auditors
MHA

Century House

The Lakes

Northampton

NN4 7HD





 
ST. MATTHEWS (NORTH) LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 5
Independent Auditors' Report
 
6 - 9
Statement of Comprehensive Income
 
10
Balance Sheet
 
11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 25


 
ST. MATTHEWS (NORTH) LIMITED
 
 
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 Company continued to be that of owning and operating nursing homes and mental health care facilities.
Following the opening of the new care facility in Corby (Willowbrook House) in August 22, the company was able to commence its provision for the ‘multi-disciplinary team (mtd)’ model that has worked well at the related Group’s location in Coventry.  Following the CQC inspection the unit has been able to end the year with an average of 24 patients and a utilization of 55%.
Broomhill continued to be central to, and operate within, the wider group, the circular care pathway; allowing for improved rehabilitation for patients.  The unit has been able to end the year with an average of 88 patients and a utilisation of 89%.

Principal risks and uncertainties
 
Commissioners
The principal risks and uncertainties for the business relate to the large proportion of revenue derived from public bodies such as Local Authorities, ICB's (Integrated Care Boards) and other NHS (National Health Service) Trusts. 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 Company. Also, in common with the majority of government-funded service providers, most of the Company'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 Company's revenue. These factors are to a great extent, beyond the control of the Company although it manages its risk by spreading its customer base and maintaining good relationships with the commissioners.
Regulators
The company'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 company's operations. The Company 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 Company to cure any defect noted in an inspection, could result in the revocation of the Company's registration. The Company conducts regular internal audits of safety and compliance with regulatory requirements.
Finance
The company’s main financial composition of cash, trade debtors and trade creditors as well as its debt are well managed. These financial instruments provide the company 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 company’s position is stable and that the demand for their care pathways will not diminish. However, the directors are in constant communication with the company’s stakeholders to ensure that actions are taken in pre-emption of any possible unwillingness by funders to adjust fees in line with inflation.
 
Page 1

 
ST. MATTHEWS (NORTH) LIMITED
 

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

The majority of the Company's debt is in relation to fixed term loans with High Street lenders with pre-agreed terms and specified loan interest margins. The Company monitors interest rate movements and would review its gearing levels should rates rise significantly.

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 £18,426,297 (2022 - £10,836,656). The increase is as a result of a full year of Willowbrook House and increased rates from funders.
Operating loss for the year is £1,690,123 (2022 profit - £703,800).
The bed occupancy rate percentage for the year is 79% (2022 - 69%).

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
 
It is expected that Willowbrook House (Corby) will continue to admit residents and support further the innovative model being practiced. A review of the service provision within Broomhill will continue to be undertaken to ensure that the requirements of our stakeholders are supported. The medium-term strategy remains to ensure the relevance of any services being provided to the needs of the care sector. Should any directional change be required to support the sector, the Directors will seek to review and change accordingly.


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



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

Date: 1 October 2024

Page 2

 
ST. MATTHEWS (NORTH) 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 Strategic Report, the Directors' Report 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 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 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 for the Company'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 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 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 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 £2,233,823 (2022 - profit £436,683).

Dividends of £Nil (2022- £Nil) were paid in the year. 

Directors

The directors who served during the year were:

K K Sandhu 
N S Sidhu Brar 

Page 3

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Financial instruments

The Company has various financial assets and liabilities such as trade receivables and trade payables arising directly from its operations. In addition the Company has other financial instruments including loans and overdrafts. 
i) Liquidity risk 
The Company manages its cash and borrowing requirements to optimise interest income and minimise expense, whilst ensuring that the Company has sufficient liquid resources to meet the operating needs of its business.
ii) Interest rate risk 
The Company 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 Company 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

Disabled employees

The Company 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.

Matters covered in the 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

Auditors

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

Page 4

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

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





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

Date: 1 October 2024


Page 5

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST. MATTHEWS (NORTH) LIMITED
 

Opinion


We have audited the financial statements of St. Matthews (North) Limited (the 'Company') for the year ended 31 August 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of 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 Company's affairs as at 31 August 2023 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company 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 other ethical responsibilities in accordance with these 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 company, 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 6

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST. MATTHEWS (NORTH) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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 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 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 Directors' Responsibilities Statement set out on page 3, 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 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.


Page 7

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST. MATTHEWS (NORTH) LIMITED (CONTINUED)


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 an Auditors' 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 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 Auditors' Report.


Page 8

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST. MATTHEWS (NORTH) LIMITED (CONTINUED)


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 Auditors' 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 Auditors
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 9

 
ST. MATTHEWS (NORTH) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023

2023
2022
Note
£
£

  

Turnover
 4 
18,426,297
10,836,656

Cost of sales
  
(13,604,184)
(9,740,128)

Gross profit
  
4,822,113
1,096,528

Administrative expenses
  
(6,512,236)
(5,483,951)

Exceptional administrative expenses
 11 
-
5,091,223

Operating (loss)/profit
 5 
(1,690,123)
703,800

Interest payable and similar expenses
 9 
(526,350)
(207,476)

(Loss)/profit before tax
  
(2,216,473)
496,324

Tax on (loss)/profit
 10 
(17,350)
(59,641)

(Loss)/profit for the financial year
  
(2,233,823)
436,683

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

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

The notes on pages 13 to 25 form part of these financial statements.

Page 10

 
ST. MATTHEWS (NORTH) LIMITED
REGISTERED NUMBER: 06971934

BALANCE SHEET
AS AT 31 AUGUST 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
13,582,169
14,050,000

Current assets
  

Stocks
 13 
30,980
10,750

Debtors: amounts falling due within one year
 14 
3,968,253
2,965,221

Cash at bank and in hand
 15 
198,703
15,673

  
4,197,936
2,991,644

Creditors: amounts falling due within one year
 16 
(15,327,285)
(12,372,351)

Net current liabilities
  
 
 
(11,129,349)
 
 
(9,380,707)

Total assets less current liabilities
  
2,452,820
4,669,293

Provisions for liabilities
  

Deferred tax
 17 
(1,029,958)
(1,012,608)

Net assets
  
1,422,862
3,656,685


Capital and reserves
  

Called up share capital 
 18 
1
1

Profit and loss account
 19 
1,422,861
3,656,684

  
1,422,862
3,656,685


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




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

Date: 1 October 2024

The notes on pages 13 to 25 form part of these financial statements.

Page 11

 
ST. MATTHEWS (NORTH) LIMITED
 

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
1
3,220,001
3,220,002


Comprehensive income for the year

Profit for the year
-
436,683
436,683
Total comprehensive income for the year
-
436,683
436,683



At 1 September 2022
1
3,656,684
3,656,685


Comprehensive income for the year

Loss for the year
-
(2,233,823)
(2,233,823)
Total comprehensive income for the year
-
(2,233,823)
(2,233,823)


At 31 August 2023
1
1,422,861
1,422,862


The notes on pages 13 to 25 form part of these financial statements.

Page 12

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

1.


General information

St. Matthews (North) Limited is a private company limited by shares, incorporated in England and Wales, registered number 06971934. The registered office is at Boughton House Broomhill, Holdenby Road, Spratton, Northampton, NN6 8LD.
The principal place of business is Broomhill, Holdenby Road, Spratton, NN6 8LD.
The functional and presentational currency of the Company 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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Seebeck 122 Limited as at 31 August 2023 and these financial statements may be obtained from Companies House.

Page 13

 
ST. MATTHEWS (NORTH) 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 Company 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 company 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 14

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessee

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

 
2.6

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.

 
2.7

Borrowing costs

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

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

 
2.9

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 operates and generates 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

Page 15

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.10

Exceptional items

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

 
2.11

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 Company 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.

Depreciation 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.

  
2.12

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.

 
2.13

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 16

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.14

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.

 
2.15

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.

 
2.16

Financial instruments

The Company 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 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 Company 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 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.

Page 17

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The following are the critical estimations that the directors have made in the process of applying the
Company's accounting policies and that have the most significant effect on the amounts recognised in
the financial statements.
Key source of estimation uncertainty - Determining the residual values and useful economic lives
of property, plant and equipment
The Company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore
requires estimates and assumptions to be applied by management. The actual lives of these assets can
vary depending on a variety of factors, including technological innovation, product life cycles and
maintenace programmes.
Judgment is applied by management when determining the residual values for plant, machinery and
equipment. When determining the residual value, management aim to assess the amount that the
Company would currently obtain for the disposal of the asset, if it were already of the condition expected
at the end of its useful economic life. Where possible this is done with reference to external market
prices.


4.


Turnover

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

All turnover arose within the United Kingdom.


5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
42,074
17,067

Depreciation of tangible fixed assets
614,494
499,520

Profit on sale of tangible assets
-
(8,982)


6.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
20,000
19,000
The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 18

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

7.


Employees

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


2023
2022
£
£

Wages and salaries
14,477,853
11,339,355

Social security costs
870,202
723,396

Cost of defined contribution scheme
142,208
120,949

15,490,263
12,183,700


Included within Wages and Salaries is agency staff costs of £5,644,278 (2022: £3,575,679).

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


        2023
        2022
            No.
            No.







Managers
17
14



Nurses and care workers
244
222



Kitchen
16
19



Administration and others
67
55

344
310


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
18,200
18,798



9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
516,376
202,405

Other interest payable
9,974
5,071

526,350
207,476

Page 19

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

10.


Taxation


2023
2022
£
£

Total current tax
 
-
 
-

Deferred tax


Origination and reversal of timing differences
17,350
59,641

Total deferred tax
17,350
59,641


Tax on (loss)/profit
17,350
59,641

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:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(2,216,473)
496,324


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
(554,118)
94,302

Effects of:


Non-tax deductible amortisation of goodwill and impairment
153,624
-

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
11,752
64,079

Short-term timing difference leading to an increase (decrease) in taxation
(5,118)
47,198

Unrelieved tax losses carried forward
411,210
487,819

Other tax charge (relief) on exceptional items
-
(967,332)

Group relief
-
333,575

Total tax charge for the year
17,350
59,641


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

11.


Exceptional items

2023
2022
£
£


Intercompany loan write-off
-
(5,091,223)

The exceptional item for the year ended 31 August 2022 was in relation to the write-off of an intercompany loan with St Matthews Limited. The directors agreed to waive the loan between the two companies and a formal deed was sought. 


12.


Tangible fixed assets





Freehold property
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost


At 1 September 2022
14,685,945
66,237
1,852,777
162,290
16,767,249


Additions
-
-
113,076
33,587
146,663



At 31 August 2023

14,685,945
66,237
1,965,853
195,877
16,913,912



Depreciation


At 1 September 2022
1,557,646
33,116
1,044,698
81,789
2,717,249


Charge for the year on owned assets
247,815
14,038
307,941
44,700
614,494



At 31 August 2023

1,805,461
47,154
1,352,639
126,489
3,331,743



Net book value



At 31 August 2023
12,880,484
19,083
613,214
69,388
13,582,169



At 31 August 2022
13,128,299
33,121
808,079
80,501
14,050,000

Included in freehold property is land valued at £754,897 which has not been depreciated.


13.


Stocks

2023
2022
£
£

Consumables
30,980
10,750


Page 21

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

14.


Debtors

2023
2022
£
£


Trade debtors
1,493,494
787,790

Other debtors
958,569
1,095,892

Prepayments and accrued income
1,141,796
728,496

Tax recoverable
374,394
353,043

3,968,253
2,965,221


Trade debtors are stated after provision for impairment of £152,260 (2022 - £55,882).


15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
198,703
15,673

Less: bank overdrafts
(458,375)
(46,598)

(259,672)
(30,925)


Page 22

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
458,375
46,598

Bank loans
6,822,945
7,026,750

Trade creditors
705,647
1,362,131

Amounts owed to group undertakings
1,604,988
763,652

Amounts owed to joint ventures and associated undertakings
3,267,970
2,137,293

Corporation tax
107,644
-

Other taxation and social security
725,816
373,615

Other creditors
90,174
32,971

Accruals and deferred income
1,543,726
629,341

15,327,285
12,372,351


Bank loans are secured by way of legal charges over the assets of the business.
Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.
Amounts owed to joint ventures and associated undertakings are unsercured, interest free and are repayable on demand.


17.


Deferred taxation




2023
2022


£

£






At beginning of year
(1,012,608)
(952,967)


Charged to profit or loss
(17,350)
(59,641)



At end of year
(1,029,958)
(1,012,608)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
1,033,235
1,020,774

Other timing differences
(3,277)
(8,166)

1,029,958
1,012,608

Page 23

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary share of £1.00
1
1



19.


Reserves

Profit and loss account

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


20.


Contingent liabilities

The company is a party to a composite bank gurantee in respect of all borrowing of the Seebeck 122 group (compromising St Matthew Holdings Limited, St Matthews Limited, St Matthews (West) Limited and St Matthews (North) Limited) advanced by Santander bank. At the balance sheet date such borrowing amounted to £15,474,505 (2022 - £22,700,00).


21.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totalling £53,184 (2022 - £32,662) were payable to the fund at the balance sheet date and are included in other creditors.


22.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
41,259
17,112

Later than 1 year and not later than 5 years
9,176
19,519

50,435
36,631

Page 24

 
ST. MATTHEWS (NORTH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

23.


Transactions with directors

During the year the Company advanced £nil (2022 - £140,000) and was repaid £65,500 (2022 - £nil) to/from a director of the Company. At 31 August 2023 amounts owed to the Company from this director totalled £415,071 (2022 - £480,571). No interest is charged on this advance and the amount is due on demand.
During the year the Company advanced £nil (2022 - £171,608) and was repaid £61,673 (2022 - £nil) to/from a director of the Company. At 31 August 2023 amounts owed to the Company from this director totalled £542,662 (2022 - £604,335). No interest is charged on this advance and the amount is due on demand.





24.


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.
The company owed £3,584,010 to companies with common directors (2022 - £2,137,293)


25.


Controlling party

The parent undertaking is St Matthews Holdings Limited, a limited liability company registered in England and Wales.
The ultimate parent undertaking is Seebeck 122 Limited, a limited liability company registered in England and Wales. This ultimate parent company heads both the smalles and largest group for which consolidated financial statements containing the results and position of the Company are prepared and copies of these can be obtained from Seebeck 122 Limited's registered office at Boughton House, Holdenby Road, Spratton, Northampton, NN6 8LD.
In the opinion of the director, there is no ultimate controlling party of St Matthews (North) Limited.

 
Page 25