REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 October 2023 |
for |
New Horizons (NW) Ltd |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 October 2023 |
for |
New Horizons (NW) Ltd |
New Horizons (NW) Ltd (Registered number: 08724981) |
Contents of the Financial Statements |
for the Year Ended 31 October 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Profit and Loss Account | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
New Horizons (NW) Ltd |
Company Information |
for the Year Ended 31 October 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Ebenezer House |
Ryecroft |
Newcastle |
Staffordshire |
ST5 2BE |
New Horizons (NW) Ltd (Registered number: 08724981) |
Strategic Report |
for the Year Ended 31 October 2023 |
The directors present their strategic report for the year ended 31 October 2023. |
REVIEW OF BUSINESS |
New Horizons continues to concentrate on the core business of supplying services for vulnerable children across the North West. |
Performance for the year saw an increase in turnover of 21.5%, increasing to £8.4m from £6.9m in 2022. |
The increase in turnover can be attributed to a growth of available bed due to the acquisition of new properties and improved occupancy throughout the homes. Uplifts have also had an impact |
Gross profit margin decreased during the period from 95.5% in 2022 to 94.8% in 2023. Predominantly this is due to the increased expenses of our YP. We took our YP abroad for their summer holiday for first time as well as increasing the budget for our annual fun day activities at both summer and Easter. |
It is a fundamental objective to maintain a sustainable growth plan, and the company took the time during the year to focus on a wider spread of market sectors. |
KEY PERFORMANCE INDICATORS |
The key performance indicator detailed above is recognised as an integral part of monitoring the business, along with gross margin and net margin. |
2023 | 2022 |
Turnover growth | 21.5% | 20.0% |
Gross profit | 94.8% | 95.5% |
Net profit | 22.0% | 27.7% |
It is the responsibility of the commercial team to regularly monitor and review these figures and report the results and any corrective actions to the board. |
The directors are happy with the company's performance against those indicators, especially during the challenges presented during the height of the pandemic. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are certain risks, which could materially and adversely impact the company's results compared to expectation. A summary of the key risks is set out below. This is not an exhaustive list of the factors that could adversely impact company profitability. |
FINANCIAL INSTRUMENTS |
The company uses various financial instruments; these include cash and various items, such as trade debtors and trade creditors, that arise directly from its operations. |
The existence of these financial instruments exposes the company to several financial risks which are described in more detail below. |
The main risks arising from the company's financial instruments are categorised as market risk, credit risk, liquidity risk and COVID-19 risk. The directors review and agree policies for managing these risks and they are summarised below. |
CREDIT RISK |
To counteract the risk of bad debts the business has increased the use of credit checking and monitoring facilities to assess the risk to the company. If a significant risk is identified then a further review is made and where appropriate protective actions are undertaken. |
LIQUIDITY RISK |
The business has a very strong relationship with its bank. The company has the facilities available to meet its needs on an ongoing basis. These facilities are reviewed on a regular basis, by both the bank and the management, and are in accordance with the needs of the company. |
New Horizons (NW) Ltd (Registered number: 08724981) |
Strategic Report |
for the Year Ended 31 October 2023 |
FUTURE DEVELOPMENTS |
The directors are keen to expand the core business, through organic sustainable growth, supply chain partnerships, and through strategic acquisition opportunities. |
The business has a continued re-investment programme replacing production equipment with newer technology to enable the company to compete in increasingly competitive markets, which is constantly reviewed in line with business opportunities. |
Since the year end, the company has purchased a further 2 properties and an offer has been accepted on another property. This will significant boost income and profitability once the homes are in use. |
ON BEHALF OF THE BOARD: |
New Horizons (NW) Ltd (Registered number: 08724981) |
Report of the Directors |
for the Year Ended 31 October 2023 |
The directors present their report with the financial statements of the company for the year ended 31 October 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31st October 2023 will be £515,556 (2022: £411,379). |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Thompson Wright Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
New Horizons (NW) Ltd |
Opinion |
We have audited the financial statements of New Horizons (NW) Ltd (the 'company') for the year ended 31 October 2023 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for 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 UK, including the FRC'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. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
New Horizons (NW) Ltd |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
New Horizons (NW) Ltd |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the care services sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental consumer rights act, other industry specific accreditations and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Report of the Independent Auditors to the Members of |
New Horizons (NW) Ltd |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Other matters which we are required to address |
In the previous accounting period the directors of the company took advantage of audit exemption under s477 of the Companies Act. Therefore the prior period financial statements were not subject to audit. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Ebenezer House |
Ryecroft |
Newcastle |
Staffordshire |
ST5 2BE |
New Horizons (NW) Ltd (Registered number: 08724981) |
Profit and Loss Account |
for the Year Ended 31 October 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
2,107,142 | 1,987,923 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
New Horizons (NW) Ltd (Registered number: 08724981) |
Other Comprehensive Income |
for the Year Ended 31 October 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Note |
Prior year adjustment | 9 | ( |
) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
523,614 |
New Horizons (NW) Ltd (Registered number: 08724981) |
Balance Sheet |
31 October 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 13 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 | 2,514,157 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
New Horizons (NW) Ltd (Registered number: 08724981) |
Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2022 |
Prior year adjustment | - | ( |
) | ( |
) |
As restated |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2023 |
New Horizons (NW) Ltd (Registered number: 08724981) |
Cash Flow Statement |
for the Year Ended 31 October 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 955,399 |
Cash and cash equivalents at end of year | 2 | 1,239,350 | 1,258,113 |
New Horizons (NW) Ltd (Registered number: 08724981) |
Notes to the Cash Flow Statement |
for the Year Ended 31 October 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
as restated |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 267,853 | 83,921 |
Finance income | (18,381 | ) | (2,584 | ) |
2,292,818 | 2,133,251 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 1,239,350 | 1,258,113 |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
as restated |
£ | £ |
Cash and cash equivalents | 1,258,113 | 955,399 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.11.22 | Cash flow | changes | At 31.10.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 1,258,113 | (18,763 | ) | 1,239,350 |
1,258,113 | ( |
) | 1,239,350 |
Debt |
Debts falling due |
within 1 year | (113,362 | ) | 7,433 | - | (105,929 | ) |
Debts falling due |
after 1 year | (1,611,760 | ) | (633,858 | ) | 593,391 | (1,571,293 | ) |
(1,725,122 | ) | (626,425 | ) | 593,391 | (1,677,222 | ) |
Total | (467,009 | ) | (645,188 | ) | 593,391 | (437,872 | ) |
New Horizons (NW) Ltd (Registered number: 08724981) |
Notes to the Financial Statements |
for the Year Ended 31 October 2023 |
1. | STATUTORY INFORMATION |
New Horizons (NW) Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Critical accounting judgements and key sources of estimation uncertainty |
The critical judgments that the directors have made in the process of applying the company's accounting policies and key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below. |
Key judgements |
Determining residual values of tangible assets |
Judgement is applied by management when determining the residual values for fixed assets. 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. |
Assessing indicators of impairment |
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year. |
Key sources of estimation uncertainty |
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. |
Recoverability of trade debtors |
The company establishes a provision for trade debtors that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the aging of the trade debtors, past experience of recoverability and the credit profile of individual or groups of customers. |
Estimated useful life of tangible assets |
The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents gross invoiced sales of services. Revenue is recognised as the company becomes entitled to consideration for the services supplied. |
All turnover is derived in the UK. |
New Horizons (NW) Ltd (Registered number: 08724981) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
as restated |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
New Horizons (NW) Ltd (Registered number: 08724981) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
as restated |
Directors | 4 | 4 |
Administration staff | 7 | 7 |
Care staff | 136 | 122 |
2023 | 2022 |
as restated |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The highest paid director received emoluments totalling £100,000 and pension contributions of £2,978 (2022 - £100,000 & £2,978). |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
as restated |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
£ | £ |
Bank loan interest |
Interest payable |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Prior year overprovision | 5,746 | - |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
New Horizons (NW) Ltd (Registered number: 08724981) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods |
Other tax differences (Change in tax rate) | 74,200 | - |
Capital allowances (change in tax rate) | (8,962 | ) | - |
Other tax differences | - | (10,226 | ) |
Total tax charge | 414,798 | 475,104 |
8. | DIVIDENDS |
2023 | 2022 |
as restated |
£ | £ |
Ordinary shares of 1 each |
Interim |
9. | PRIOR YEAR ADJUSTMENT |
Material errors have been identified in the prior year's financial statements, for which prior year adjustments are required. |
It was identified that depreciation had not been previously charged on freehold property. Therefore, depreciation of £45,669 has been retrospectively adjusted in the year ended 31st October 2022, leading to a decrease in profit after tax and decrease in the net book value of tangible assets in the prior year. Prior year adjustments have been made as far back as 2019, with further depreciation adjustments of £74,086 affecting the net book value of freehold property and retained earnings. |
Depreciation of leasehold property had also not been provided in previous years. Therefore, depreciation of £5,283 has been retrospectively adjusted in the year ended 31st October 2022, leading to a decrease in profit after tax and decrease in the net book value of tangible assets in that year. Prior year adjustments have been made as far back as 2019, with further depreciation adjustments of £15,848 affecting the opening position being made. |
In the prior year, it was identified that deferred tax in respect of accelerated capital allowances had not been provided. Therefore, a prior year adjustment of £136,315 has been adjusted resulting in a reduction in profit after tax and increase in provision for liabilities of that amount. |
Errors were identified in relation to the provision of the corporation tax liability in prior years. Therefore, a £338,540 increase in the corporation tax provision for the financial year ended 31st October 2022 and a £285,136 increase in the 2021 financial year end have been posted. This has resulted in a decrease in profit after tax and an increase in the corporation tax liability at each of the year ends. |
The accumulated affect of these errors have resulted in a reduction of net assets by £900,877 in 2022. |
New Horizons (NW) Ltd (Registered number: 08724981) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
10. | TANGIBLE FIXED ASSETS |
Freehold property | Long leasehold property | Improvements to property |
£ | £ | £ |
Cost |
At 1 November 2022 | 2,283,445 | 264,139 | 35,571 |
Additions | 574,548 | - | - |
Disposals | - | - | - |
At 31 October 2023 | 2,857,993 | 264,139 | 35,571 |
Depreciation |
At 1 November 2022 - As restated | 119,755 | 21,131 | 16,683 |
Charge for year | 57,159 | 5,283 | 3,777 |
Eliminated on disposal | - | - | - |
At 31 October 2023 | 176,914 | 26,414 | 20,460 |
NET BOOK VALUE |
At 31 October 2023 | 2,681,079 | 237,725 | 15,111 |
At 31 October 2022 | 2,163,690 | 243,008 | 18,888 |
Plant and machinery | Fixtures and fittings | Motor vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 November 2022 | 46,995 | 506,786 | 46,145 | 3,183,081 |
Additions | - | 247,452 | 36,340 | 858,340 |
Disposals | - | (17,429 | ) | (5,500 | ) | (22,929 | ) |
At 31 October 2023 | 46,995 | 736,809 | 76,985 | 4,018,492 |
Depreciation |
At 1 November 2022 - As restated | 16,918 | 192,080 | 15,377 | 381,944 |
Charge for the year | 6,016 | 112,298 | 12,852 | 197,385 |
Eliminated on disposal | - | (13,041 | ) | (2,667 | ) | (15,708 | ) |
At October 2023 | 22,934 | 291,337 | 25,562 | 563,621 |
NET BOOK VALUE |
At 31 October 2023 | 24,061 | 445,472 | 51,423 | 3,454,871 |
At 31 October 2022 | 30,077 | 314,706 | 30,768 | 2,801,137 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
New Horizons (NW) Ltd (Registered number: 08724981) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Bank loans (see note 14) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
as restated |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 1,379,300 | 1,364,458 |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
as restated |
£ | £ |
Within one year |
Between one and five years |
New Horizons (NW) Ltd (Registered number: 08724981) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
as restated |
£ | £ |
Bank loans | 1,649,723 | 1,687,622 |
Bank loans are secured by a first legal charge on the company's freehold land and buildings. |
The company maintains a factoring account with eCapital Commercial Finance (North) Limited, which holds a first fixed and floating charge over all company assets. At both the current and prior year end, there were no amounts owed to the factoring provider. |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 127,775 | 136,315 |
Deferred tax |
£ |
Balance at 1 November 2022 - As restated | 136,315 |
Provided for during the year | (8,540 | ) |
Balance at 31 October 2023 | 127,775 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary | 1 | 100 | 100 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 November 2022 |
Prior year adjustment | ( |
) |
Profit for the year |
Dividends | ( |
) |
At 31 October 2023 |
20. | RELATED PARTY DISCLOSURES |
During the financial year, the company made payments of £142,000 to a company which is controlled by the shareholders of this company. The loan has been repaid in full since the year end. |
Related party loans are repayable on demand and are charged at a nominal rate of interest below market value. |
New Horizons (NW) Ltd (Registered number: 08724981) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
21. | POST BALANCE SHEET EVENTS |
After the year end, the company purchased in cash for a further two properties for a purchase price of £418,762. The company has also had an offer accepted on a third property for £380,000 on 13th September 2024. |
22. | ULTIMATE CONTROLLING PARTY |
The company is controlled by the directors, who are the majority shareholders. |