REGISTERED NUMBER: 06500143 (England and Wales) |
3AB CARE LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
REGISTERED NUMBER: 06500143 (England and Wales) |
3AB CARE LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 |
3AB CARE LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
In the year to 31st March 2024, the group saw an increase in turnover of 15.2% and an increase in gross profit of 15.3%. |
Taking each group company in turn: |
3ab Care Limited: The ultimate parent company does not trade as such but received some management fees, dividends from subsidiaries and paid admin salaries and some overheads, resulting in a profit before taxation for the year of £769,544. |
Acacia Care Limited: Turnover decreased to £1,683,143 from £1,739,527 with a decrease in the gross profit to £518,515 from £676,663. Strong occupancy figures were achieved during the year and the Home is rated 'outstanding' by the Care Quality Commission. A pre-tax profit of £180,100 was reported. |
Brookhouse Care Home Limited: Turnover increased to £2,201,944 from £2,085,185 with a decrease in the gross profit percentage to 37.3% from 40.4%. A profit before taxation for the year of £334,810 was reported. |
Harley House Care Home Limited: Turnover increased to £2,126,732 from £1,697,393, a significant improvement from previous year. A gross profit percentage of 39.4% (2023: 38.3%) was achieved. A profit for the year before taxation of £427,991 was reported.` |
Westcroft Nursing Home Limited: Turnover for the year increased to £1,704,721 from £1,440,412 with an increased gross profit percentage of 35.7% from 31.4%. A profit before taxation of £235,536 was reported. |
Ambourne House Limited: This company runs a day nursery and increased turnover to £970,456 from £902,468. The gross profit percentage was down to 30.5% from 34.4%. The company generated a profit before taxation for the year of £89,379. |
Painswick Road Care Home Ltd: Income of £2,144,952 was generated in the year, up from £1,691,807 in the previous year. A gross profit of £793,525 was achieved, up from £451,843. A pre-tax profit of £248,180 has been reported. |
The Willows Care Home (Shepshed) Ltd: Turnover increased to £3,623,589 up from £2,986,587, with occupancy continuing to be at an acceptable level. This company reported a gross profit percentage of 41.2% down from 41.6% and a profit before taxation of £728,283. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group is aware of the importance of sustaining high occupancy rates to maintain profits and management are very focused on ensuring that occupancy is reviewed on a daily basis and that each company's reputation maintains strong. This includes reviewing all operations of the business on a regular basis including staffing, properties, legal obligations and financing. The nature of the groups activities are such that they are somewhat protected from any economic downturn although management remain vigilant to this threat and will take any action which may be needed. |
The group is exposed to the usual credit and cash flow risk where selling on credit is concerned and manages this through credit control procedures. Short term bank deposits are only placed with reputable blue chip banks. A number of bank loans are held within the group which use the bank base rates to determine the interest payable. This variable rate of interest does create some risk should the interest rates rise significantly. |
KEY PERFORMANCE INDICATORS |
The group's key performance indicators are revenue, gross profit margin, occupancy rates and charge rates. |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
DEVELOPMENT AND PERFORMANCE |
The directors consider the operating profit achieved, the state of affairs of the group and company at the year end and its prospects for the future to be satisfactory and are pleased with the performance of the group. The directors are pleased to report that trading since the year end is showing continued improvements. |
ON BEHALF OF THE BOARD: |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company is the provision of management services. The principle activities of the group are running nursing homes and a day nursery. |
DIVIDENDS |
An interim dividend of £100 per share on the Ordinary £1 shares was paid on 5 July 2023. The directors recommend that no final dividend be paid on these shares. |
No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 31 March 2024 will be £92,600. |
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 April 2023 to the date of this report. |
DISABLED PERSONS |
The group's policy is to give equal consideration to all applicants for employment including disabled people. Career development and training are available to all employees and those who become disabled are afforded every assistance to enable them to continue in their career including retraining where necessary. |
ENGAGEMENT WITH EMPLOYEES |
The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings and through regular communication. |
DISCLOSURE IN THE STRATEGIC REPORT |
Identification of the information for which the group has chosen, in accordance with s414C(11) of the Companies Act, to set out in the group's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report. |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
DJH Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
3AB CARE LIMITED |
Opinion |
We have audited the financial statements of 3ab Care Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 March 2024 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
3AB CARE LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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: |
As part of our planning process: |
- | We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud. |
- | We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety at Work 1974, Employment Act 2002 and General Data Protection Regulations (GDPR). |
- | We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
- | Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
3AB CARE LIMITED |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- | Identifying and testing journal entries, in particular those that were significant and unusual. |
- | Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
- | Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to the calculation of depreciation. |
- | Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entity's ability to continue in operation. |
- | Testing key revenue lines, in particular cut-off, for evidence of management bias. |
- | Performing a physical verification of key assets. |
- | Obtaining third-party confirmation of material bank and loan balances. |
- | Documenting and verifying all significant related party and consolidated balances and transactions. |
- | Testing all material consolidation adjustments. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors. |
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. |
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 |
Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
REVENUE | 3 | 14,455,538 | 12,543,378 |
Cost of sales | (9,113,654 | ) | (7,916,136 | ) |
GROSS PROFIT | 5,341,884 | 4,627,242 |
Administrative expenses | (3,273,598 | ) | (2,893,069 | ) |
2,068,286 | 1,734,173 |
Other operating income | - | 615 |
OPERATING PROFIT | 5 | 2,068,286 | 1,734,788 |
Interest receivable and similar income | 36,856 | 6,818 |
2,105,142 | 1,741,606 |
Interest payable and similar expenses | 6 | (391,035 | ) | (214,345 | ) |
PROFIT BEFORE TAXATION | 1,714,107 | 1,527,261 |
Tax on profit | 7 | (463,721 | ) | (308,237 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,250,386 | 1,219,024 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,250,386 | 1,219,024 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,250,386 |
1,219,024 |
Total comprehensive income attributable to: |
Owners of the parent | 1,250,386 | 1,219,024 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Property, plant and equipment | 11 | 5,199,738 | 7,348,007 |
Investments | 12 | - | - |
5,199,738 | 7,348,007 |
CURRENT ASSETS |
Debtors | 13 | 528,859 | 667,708 |
Cash at bank and in hand | 3,123,522 | 2,859,627 |
3,652,381 | 3,527,335 |
CREDITORS |
Amounts falling due within one year | 14 | (2,720,970 | ) | (2,500,894 | ) |
NET CURRENT ASSETS | 931,411 | 1,026,441 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,131,149 |
8,374,448 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(3,338,295 |
) |
(5,722,768 |
) |
PROVISIONS FOR LIABILITIES | 19 | (58,484 | ) | (53,936 | ) |
NET ASSETS | 2,734,370 | 2,597,744 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,166 | 1,226 |
Capital redemption reserve | 21 | 134 | 74 |
Retained earnings | 21 | 2,733,070 | 2,596,444 |
SHAREHOLDERS' FUNDS | 2,734,370 | 2,597,744 |
The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2024 and were signed on its behalf by: |
Hitan Patel - Director |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Property, plant and equipment | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 767,576 | 1,519,949 |
The financial statements were approved by the Board of Directors and authorised for issue on |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 | 1,300 | 2,743,150 | - | 2,744,450 |
Changes in equity |
Purchase of own shares | (74 | ) | (1,265,730 | ) | 74 | (1,265,730 | ) |
Dividends | - | (100,000 | ) | - | (100,000 | ) |
Total comprehensive income | - | 1,219,024 | - | 1,219,024 |
Balance at 31 March 2023 | 1,226 | 2,596,444 | 74 | 2,597,744 |
Changes in equity |
Purchase of own shares | (60 | ) | (1,021,160 | ) | 60 | (1,021,160 | ) |
Dividends | - | (92,600 | ) | - | (92,600 | ) |
Total comprehensive income | - | 1,250,386 | - | 1,250,386 |
Balance at 31 March 2024 | 1,166 | 2,733,070 | 134 | 2,734,370 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Purchase of own shares | (74 | ) | (1,265,730 | ) | 74 | (1,265,730 | ) |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Purchase of own shares | (60 | ) | (1,021,160 | ) | 60 | (1,021,160 | ) |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,547,179 | 2,521,443 |
Interest paid | (391,035 | ) | (214,345 | ) |
Tax paid | (423,951 | ) | (297,128 | ) |
Net cash from operating activities | 1,732,193 | 2,009,970 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (135,301 | ) | (2,375,193 | ) |
Sale of tangible fixed assets | 2,000,000 | - |
Interest received | 36,856 | 6,818 |
Net cash from investing activities | 1,901,555 | (2,368,375 | ) |
Cash flows from financing activities |
New loans in year | - | 6,200,000 |
Loan repayments in year | (2,256,093 | ) | (4,233,252 | ) |
Share buyback | (1,021,160 | ) | (1,265,730 | ) |
Equity dividends paid | (92,600 | ) | (100,000 | ) |
Net cash from financing activities | (3,369,853 | ) | 601,018 |
Increase in cash and cash equivalents | 263,895 | 242,613 |
Cash and cash equivalents at beginning of year |
2 |
2,859,627 |
2,617,014 |
Cash and cash equivalents at end of year | 2 | 3,123,522 | 2,859,627 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,714,107 | 1,527,261 |
Depreciation charges | 194,070 | 227,673 |
Loss on disposal of fixed assets | 89,500 | - |
Finance costs | 391,035 | 214,345 |
Finance income | (36,856 | ) | (6,818 | ) |
2,351,856 | 1,962,461 |
Decrease/(increase) in trade and other debtors | 135,974 | (38,292 | ) |
Increase in trade and other creditors | 59,349 | 597,274 |
Cash generated from operations | 2,547,179 | 2,521,443 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 3,123,522 | 2,859,627 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 2,859,627 | 2,617,014 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,859,627 | 263,895 | 3,123,522 |
2,859,627 | 263,895 | 3,123,522 |
Debt |
Debts falling due within 1 year | (274,293 | ) | (128,380 | ) | (402,673 | ) |
Debts falling due after 1 year | (5,722,768 | ) | 2,384,473 | (3,338,295 | ) |
(5,997,061 | ) | 2,256,093 | (3,740,968 | ) |
Total | (3,137,434 | ) | 2,519,988 | (617,446 | ) |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
3AB Care Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 06500143 and its registered office address is The Heathers, Quarry Road, Chipping Sodbury, Bristol, BS37 6AX. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The directors have reviewed the activities of the company and its subsidiaries and have a reasonable expectation that the company and group have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Basis of consolidation |
The consolidated financial statements incorporate the results of 3ab Care Limited and all of its material subsidiary undertakings as at 31 March 2024 using the acquisition method of accounting. The results of subsidiary undertakings are included from the date of acquisition. |
A subsidiary is no longer consolidated when control is lost. The difference between any disposal proceeds and the carrying amount of the subsidiary's net assets (including related goodwill) is recognised in the income statement as a gain or loss on disposal. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates. |
The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. |
Estimating the useful economic life of an asset and the anticipated residual value are considered the key judgement in calculating an appropriate depreciation and amortisation charge. |
Making judgement based on historical experience on the level of provision required for bad debts. Further information received after the statement of financial position date may impact on the level of provision required. |
Revenue |
Revenue is recognised at the fair value of the consideration received or receivable for services |
provided in the normal course of business. Revenue comprises the invoiced value of services supplied by the group. The invoices are raised to residents, service users and some councils for care home services supplied. |
Revenue is recognised as those services are provided. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of businesses, is being amortised evenly over its estimated useful life of ten years. |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Property, plant and equipment |
Freehold property | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises. |
Land is not depreciated. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. |
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 income statement. |
Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 the income statement on a straight-line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less impairment. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the group. |
An analysis of revenue by class of business is given below: |
2024 | 2023 |
£ | £ |
Care homes | 13,485,082 | 11,640,910 |
Day nursery | 970,456 | 902,468 |
14,455,538 | 12,543,378 |
All income is generated in the UK. |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 8,755,337 | 7,529,288 |
Social security costs | 722,241 | 626,468 |
Other pension costs | 152,930 | 135,653 |
9,630,508 | 8,291,409 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 3 | 3 |
Administration | 2 | 2 |
Care home | 303 | 286 |
Nursery | 24 | 27 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 248,385 | 210,912 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 103,984 | 82,500 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Other operating leases | 17,091 | 51,872 |
Depreciation - owned assets | 194,070 | 204,402 |
Loss on disposal of fixed assets | 89,500 | - |
Goodwill amortisation | - | 23,271 |
Auditors' remuneration | 23,000 | 20,700 |
Auditors' remuneration for non audit work | 18,811 | 16,186 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 391,035 | 214,345 |
391,035 | 214,345 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 466,471 | 286,372 |
Under/(over) provision | (7,393 | ) | 124 |
Total current tax | 459,078 | 286,496 |
Deferred tax | 4,643 | 21,741 |
Tax on profit | 463,721 | 308,237 |
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: |
2024 | 2023 |
£ | £ |
Profit before tax | 1,714,107 | 1,527,261 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
428,527 |
290,180 |
Effects of: |
Expenses not deductible for tax purposes | 1,925 | 7,647 |
Income not taxable for tax purposes | (2,244 | ) | - |
Capital allowances in excess of depreciation | - | (3,822 | ) |
Depreciation in excess of capital allowances | 35,513 | - |
Adjustments to tax charge in respect of previous periods | - | 124 |
differences |
Effect of change in tax rate | - | 14,108 |
Total tax charge | 463,721 | 308,237 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 92,600 | 100,000 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
and 31 March 2024 | 465,514 | 12,816 | 478,330 |
AMORTISATION |
At 1 April 2023 |
and 31 March 2024 | 465,514 | 12,816 | 478,330 |
NET BOOK VALUE |
At 31 March 2024 | - | - | - |
At 31 March 2023 | - | - | - |
Company |
Development |
costs |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 April 2023 | 8,294,436 | 202,153 | 2,276,742 |
Additions | - | - | 125,602 |
Disposals | (2,089,500 | ) | - | - |
At 31 March 2024 | 6,204,936 | 202,153 | 2,402,344 |
DEPRECIATION |
At 1 April 2023 | 1,362,214 | 153,361 | 2,017,738 |
Charge for year | - | 10,172 | 160,074 |
At 31 March 2024 | 1,362,214 | 163,533 | 2,177,812 |
NET BOOK VALUE |
At 31 March 2024 | 4,842,722 | 38,620 | 224,532 |
At 31 March 2023 | 6,932,222 | 48,792 | 259,004 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 103,770 | 151,160 | 11,028,261 |
Additions | 9,699 | - | 135,301 |
Disposals | - | - | (2,089,500 | ) |
At 31 March 2024 | 113,469 | 151,160 | 9,074,062 |
DEPRECIATION |
At 1 April 2023 | 92,876 | 54,065 | 3,680,254 |
Charge for year | 10,608 | 13,216 | 194,070 |
At 31 March 2024 | 103,484 | 67,281 | 3,874,324 |
NET BOOK VALUE |
At 31 March 2024 | 9,985 | 83,879 | 5,199,738 |
At 31 March 2023 | 10,894 | 97,095 | 7,348,007 |
No depreciation has been charged on freehold property as residual value is not considered to be materially different from net book value. |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
11. | PROPERTY, PLANT AND EQUIPMENT - continued |
Company |
Freehold |
property |
£ |
COST |
At 1 April 2023 |
Disposals | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
Disposals | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Subsidiary undertakings |
Name | Registered office | Holding | Nature of business |
Ambourne House Limited | England | 100% ordinary | Day nursery |
Brookhouse Care Home Limited | England | 100% ordinary | Care home |
Harley House Care Home Limited | England | 100% ordinary | Care home |
Painswick Road Care Home Ltd | England | 100% ordinary | Care home |
The Willows Care Home (Shepshed) Ltd | England | 100% ordinary | Care home |
Westcroft Nursing Home Limited | England | 100% ordinary | Care home |
Acacia Care Limited | England | 100% ordinary | Care home |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 490,014 | 529,055 |
Amounts owed by group undertakings | - | - |
Other debtors | 20,546 | 458 |
Corporation tax | - | 2,875 |
Deferred tax asset | - | - | 11,900 | 13,868 |
Prepayments and accrued income | 18,299 | 135,320 |
528,859 | 667,708 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 402,673 | 274,293 |
Trade creditors | 150,541 | 173,862 |
Amounts owed to group undertakings | - | - |
Corporation tax | 195,767 | 163,420 |
Social security and other taxes | 175,467 | 145,003 |
Other creditors | 175,974 | 262,856 |
Accruals and deferred income | 1,620,548 | 1,481,460 |
2,720,970 | 2,500,894 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 16) | 3,338,295 | 5,722,768 |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 402,673 | 274,293 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 437,706 | 291,037 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,480,059 | 984,113 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 1,420,530 | 4,447,618 | 1,420,530 | 4,447,618 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 2,905 | 2,905 |
Between one and five years | 4,354 | 7,258 |
7,259 | 10,163 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 3,740,968 | 5,997,061 |
Bank loans are secured by way of a debenture over the group's assets as well as a charge over the properties and an unlimited inter-company guarantee. |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
19. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 58,484 | 53,936 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 53,936 |
Provided during year | 4,548 |
Balance at 31 March 2024 | 58,484 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2023 | ( |
) |
Provided during year |
Balance at 31 March 2024 | ( |
) |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 866 | 926 |
Ordinary B | £1 | 300 | 300 |
1,166 | 1,226 |
The Ordinary B shares rank after the Ordinary shares. The Ordinary B shares do not hold voting rights. |
During the year, 60 ordinary shares were repurchased for £1,021,160. |
21. | RESERVES |
The following describes the nature and purpose of each reserve within equity: |
Retained earnings |
All other net gains and losses and transactions with owners not recognised elsewhere. |
Capital redemption reserve |
This reserve records the nominal value of shares repurchased by the company. |
3AB CARE LIMITED (REGISTERED NUMBER: 06500143) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
22. | RELATED PARTY DISCLOSURES |
During the year the group was charged rent of £2,295 (2023: £34,028) by the group pension scheme. |
23. | POST BALANCE SHEET EVENTS |
50 C shares were issued in May 2024. |
24. | ULTIMATE CONTROLLING PARTY |
issued share capital of the group. |