Company Registration No. 12238837 (England and Wales)
DRS CARE HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DRS CARE HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mrs R Datoo
Mrs N McDonald
Company number
12238837
Registered office
45 Pembury Road
Tottenham
London
N17 6SS
Auditor
Shaw Gibbs (Audit) Limited
264 Banbury Road
Oxford
OX2 7DY
DRS CARE HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
DRS CARE HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

 

Principal Activity

The principal activity of the company is that of being a holding company. The core principal activity of the company's subsidiaries is the operation of care homes and supported living services. The company and its subsidiaries are domiciled in the UK.

The primary activity of the group is the provision of accommodation with personal care for adults between the ages of 18-65 in care homes. It also provides supported living accommodation for adults to live more independently. Hours of support are provided in supported living services depending on needs.

DRS Care has been operational for 35 years. It currently provides accommodation in the form of 24 residential care beds situated in one of three care homes and 74 supported living beds. The Group’s strategy is focused on continuing growth through new builds and completed the development of a further 15 new supported living beds during the year. The directors are confident in achieving 100% occupancy in the new development by the end of the 2024 financial year.

Fair review of the business

The directors are satisfied with the performance of the group during the year given the impact of the 'cost of living crisis' along with changes in inflation and interest rates. The results for the year are significantly impacted by the decrease in the fair value of the properties with profit before tax decreasing from £210,072 to a loss of £1,365,685. The economic climate is uncertain, but risks are being managed with a focus on increasing our core cost fee, continued expansion of the business and also streamlining our costs.

Despite the above-mentioned challenges, the group remained profitable with a profit before tax of £663,558 (after adjusting for the movement in the fair value of the properties) and gross margin increased from 28% to 36%.

EBITDA (before adjusting for the movement in the fair value of the properties) has increased from £828,009 to £1,666,029.

Relationships with suppliers and customers remained strong throughout the period. As at the balance sheet date the group had a positive cash position of £299,079 which is an increase from our position last year of £222,746 but there was a decrease in net assets from £6,417,401 to £4,251,516 as a result of the change in fair value of the properties.

The net debt position of the Group at year end compromised the following:

Cash at bank and in hand             £299,079

Borrowings excluding overdrafts        (£8,967,633)

Obligation under finance leases        (£118,117)

Total                    (£8,786,671)

DRS CARE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The economic climate is clearly uncertain as a result of a group of factors including changes in inflation and interest rates. The relevant risks are being appropriately managed.

We are committed to providing high quality care. This is monitored through Local Authority inspections, CQC inspections and internal audits. We ensure there is a structure for reporting to senior management and the Board of any potential issues. All action plans are regularly reviewed to ensure implementation.

Risks to Health and Safety are minimised through appropriate staffing and training. We ensure a safe working environment is provided and regular safety audits are completed.

The shortage of staffing across the sector has an impact. We are utilising the government scheme to sponsor staff from abroad to help fill open vacancies.

There are cost pressures with regard to inflation. We are trying to mitigate these risks by using energy efficiently and sourcing food at better prices.

We have a number of open vacancies. We need to grow occupancy levels to ensure viability especially following the completion of the 15 new supported living beds. We are in the process of updating our website and going to other boroughs to place clients.

Development and performance

The board of directors see the following key priorities to develop and drive performance:

  1. Increase core cost rates.

  2. Increase marketing our service to other Local Authorities.

  3. Continued growth and expansion.

  4. Obtaining a 100% occupancy.

Key performance indicators

The board monitor and review all aspects of the business as a matter of course and through monthly board meetings. Turnover, gross margins, EBITDA, cash position and net assets are the key financial performance indicators reviewed by the business. Further analysis is completed on new revenue /​ profit stream growth; services trends and cost base analysis.

The 2023 performance is summarised in the fair review of business section of this report.

On behalf of the board

Mrs R Datoo
Director
12 October 2024
DRS CARE HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company is that of being a holding company. The principal activity of the group continued to be that of owning and operating nursing homes and supported living accommodation units.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs R Datoo
Mrs N McDonald
Auditor

The auditor, Shaw Gibbs (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

DRS CARE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out the company's strategic report information required by Large and Medium-sized Companies and Groups (Accountants and Reports) Regulations 2008, Sch.7 to be contained in the directors' report. It has done so in respect of the director's business review, principal risks and uncertainties faced by the group and future developments.

Going concern

The directors have reviewed the financial performance and position of the group and they are mindful of the net current liabilities of the group totalling £2,369,759. The relevant balance includes £1,300,542 owed to a company director. The relevant director has issued a letter of support to the company stating that repayment of the relevant amount due, which is repayable on demand, will not be requested unless the relevant company has sufficient funds to settle it. In addition to this, the group has prepared detailed cash flow forecasts, taking into consideration all available information, showing that it has and it is expected to generate sufficient funds to meet its liabilities as they fall due.

 

At the time of approving the financial statements, having taken into consideration the current and forecasted performance and position of the group, in combination with the available additional funding should this be considered necessary, the directors have a reasonable expectation that the company and group have adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board
Mrs R Datoo
Mrs N McDonald
Director
Director
12 October 2024
DRS CARE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DRS CARE HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of DRS Care Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

DRS CARE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DRS CARE HOLDINGS LIMITED
- 6 -
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 their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

  1. At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the company and how the management seek to comply with those laws and regulations. This helps us to plan appropriate risk assessments.

  2. During the audit we focus on relevant risk areas and review the compliance with the laws and regulations by making relevant enquiries and undertaking corroboration, for example by reviewing Board Minutes and other documentation. This includes ensuring compliance with the CQC (Care Quality Commission), as independent regulator for some of the group companies.

  3. We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures including:

    1. Reviewing the controls set in place by management;

    2. Making enquiries of management as to whether they consider fraud or other irregularity may have taken place, or where such opportunity might exist;

    3. Challenging management assumptions with regard to accounting estimates; and

    4. Identifying and testing journal entries, particularly those which appear to be unusual by size or nature.

 

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.

DRS CARE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DRS CARE HOLDINGS LIMITED
- 7 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nikolaos Ioannidis (Senior Statutory Auditor)
For and on behalf of Shaw Gibbs (Audit) Limited
14 October 2024
Chartered Certified Accountants
Statutory Auditor
264 Banbury Road
Oxford
OX2 7DY
DRS CARE HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
6,029,679
5,598,767
Cost of sales
(3,846,219)
(4,029,656)
Gross profit
2,183,460
1,569,111
Administrative expenses
(820,073)
(1,025,142)
Other operating income
-
11,898
Impairment of freehold property
(2,009,243)
-
0
Operating (loss)/profit
4
(645,856)
555,867
Interest receivable and similar income
8
1,295
1,370
Interest payable and similar expenses
9
(701,124)
(362,165)
Fair value (loss) / gains on investment properties
12
(20,000)
15,000
(Loss)/profit before taxation
(1,365,685)
210,072
Tax on (loss)/profit
10
(198,176)
(119,524)
(Loss)/profit for the financial year
(1,563,861)
90,548
Other comprehensive (expense) / income
-
-
Revaluation of tangible assets net of deferred tax impact
(602,023)
602,023
Total comprehensive (expense) / income for the year
(2,165,884)
692,571
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income / (expense) for the year is all attributable to the owners of the parent company.

The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

DRS CARE HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
15,061,653
17,153,023
Investment property
12
355,000
375,000
15,416,653
17,528,023
Current assets
Debtors
16
206,912
526,525
Cash at bank and in hand
299,079
222,746
505,991
749,271
Creditors: amounts falling due within one year
17
(2,875,750)
(3,091,572)
Net current liabilities
(2,369,759)
(2,342,301)
Total assets less current liabilities
13,046,894
15,185,722
Creditors: amounts falling due after more than one year
18
(8,728,922)
(8,574,116)
Provisions for liabilities
Deferred tax liability
21
66,456
194,205
(66,456)
(194,205)
Net assets
4,251,516
6,417,401
Capital and reserves
Called up share capital
23
4
4
Revaluation reserve
-
0
602,023
Profit and loss reserves
4,251,512
5,815,374
Total equity
4,251,516
6,417,401

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 12 October 2024 and are signed on its behalf by:
12 October 2024
Mrs R Datoo
Mrs N McDonald
Director
Director
Company registration number 12238837 (England and Wales)
DRS CARE HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
203
203
Current assets
Debtors
16
9,622,876
9,976,091
Cash at bank and in hand
1
1
9,622,877
9,976,092
Creditors: amounts falling due within one year
17
(1,593,385)
(2,132,353)
Net current assets
8,029,492
7,843,739
Total assets less current liabilities
8,029,695
7,843,942
Creditors: amounts falling due after more than one year
18
(8,531,732)
(8,278,663)
Net liabilities
(502,037)
(434,721)
Capital and reserves
Called up share capital
23
4
4
Profit and loss reserves
(502,041)
(434,725)
Total equity
(502,037)
(434,721)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's loss for the year was £67,316 (2022 - £59,719 loss).

The financial statements were approved by the board of directors and authorised for issue on 12 October 2024 and are signed on its behalf by:
12 October 2024
Mrs R Datoo
Mrs N McDonald
Director
Director
Company Registration No. 12238837
DRS CARE HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
4
-
5,661,765
5,661,769
Impact of prior year adjustment
32
-
-
63,061
63,061
As restated
4
-
0
5,724,826
5,724,830
Year ended 31 December 2022:
Profit for the year - as restated
32
-
-
90,548
90,548
Other comprehensive income:
Revaluation of tangible fixed assets
-
602,023
-
602,023
Total comprehensive income for the year
-
602,023
90,548
692,571
Balance at 31 December 2021
4
602,023
5,815,374
6,417,401
Year ended 31 December 2023:
Loss for the year
-
-
(1,563,861)
(1,563,861)
Other comprehensive expense:
Revaluation of tangible fixed assets
-
(602,023)
-
(602,023)
Total comprehensive expense for the year
-
(602,023)
(1,563,861)
(2,165,884)
Balance at 31 December 2023
4
-
0
4,251,512
4,251,516
DRS CARE HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
4
(375,006)
(375,002)
Year ended 31 December 2022:
Loss and total comprehensive expense for the year
-
(59,719)
(59,719)
Balance at 31 December 2022
4
(434,725)
(434,721)
Year ended 31 December 2023:
Loss and total comprehensive expense for the year
-
(67,316)
(67,316)
Balance at 31 December 2023
4
(502,041)
(502,037)
DRS CARE HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
As restated
Cash flows from operating activities
Cash generated from operations
30
2,063,136
1,150,979
Interest paid
(701,124)
(362,165)
Income taxes paid
(59,492)
(52,149)
Net cash inflow from operating activities
1,302,520
736,665
Investing activities
Purchase of tangible fixed assets
(876,462)
(695,870)
Proceeds from disposal of tangible fixed assets
-
16,337
Interest received
1,295
1,370
Net cash used in investing activities
(875,167)
(678,163)
Financing activities
Repayment of directors loan account
(634,864)
(365,984)
Proceeds from new bank loans
1,169,873
744,198
Repayment of bank loans
(857,351)
(207,778)
Payment of finance leases obligations
(28,678)
(37,595)
Net cash (used in)/generated from financing activities
(351,020)
132,841
Net increase in cash and cash equivalents
76,333
191,343
Cash and cash equivalents at beginning of year
222,746
31,403
Cash and cash equivalents at end of year
299,079
222,746
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

DRS Care Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 45 Pembury Road, Tottenham, London, N17 6SS.

 

The group consists of DRS Care Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold and investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

During the 2020 financial period, DRS Care Holdings Limited acquired the shareholdings in each of its subsidiaries from its ultimate owner. This did not result in any change in the ultimate ownership of the group and therefore merger accounting was applied.

 

The consolidated group financial statements consist of the financial statements of the parent company DRS Care Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

The directors have reviewed the financial performance and position of the group and they are mindful of the net current liabilities of the group totalling £2,369,759. The relevant balance includes £1,300,542 owed to a company director. The relevant director has issued a letter of support to the company stating that repayment of the relevant amount due, which is repayable on demand, will not be requested unless the relevant company has sufficient funds to settle it. In addition to this, the group has prepared detailed cash flow forecasts, taking into consideration all available information, showing that it has and it is expected to generate sufficient funds to meet its liabilities as they fall due.

 

At the time of approving the financial statements, having taken into consideration the current and forecasted performance and position of the group, in combination with the available additional funding should this be considered necessary, the directors have a reasonable expectation that the company and group have adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration receivable for services provided in the normal course of business.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
50 years straight line
Leasehold improvements
10% per annum on cost
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance and 20%-25% straight line
Computers
25% straight line
Motor vehicles
25% reducing balance

Freehold land and assets under construction are not depreciated.

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Properties rented to group entities are accounted for as tangible fixed assets.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16

Prior year adjustments

Following a detailed review, the directors have accounted for a number of prior year adjustments. Details of these can be seen in Note 32 of these financial statements.

DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of freehold properties and investment property

The fair values of the relevant properties have been arrived at on the basis of the valuations carried out by Eddisons Real Estate & Business Valuers, who are not connected with the company, as at 3 August 2023 or 12 September 2024 depending on the properties. The valuations were carried out on a market value basis (which is considered to be a true reflection of the fair value) in accordance with the Royal Institute of Chartered Surveyors Valuation - Global Standards 2022 and the UK national supplement. The directors do not believe that there has been a material change in the fair value of the properties between the year end and the valuation dates.

Useful economic life of non-current assets

The useful economic lives of non-current assets have been derived from the judgement of the Directors, using their best estimate of the write-down period.

 

Land which is generally estimated to be 35% of the properties' value is not depreciated.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
As restated
Care home services
2,042,967
1,918,123
Supported living services
3,986,712
3,680,644
6,029,679
5,598,767
2023
2022
£
£
Turnover analysed by geographical market
As restated
United Kingdom
6,029,679
5,598,767
2023
2022
£
£
Other revenue
Interest income
1,295
1,370
Rental income
-
11,898
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
302,642
272,140
Depreciation of tangible fixed assets held under finance leases
40,647
47,017
Profit on disposal of tangible fixed assets
-
(4,794)
Operating lease charges
22,742
-
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,200
4,040
Audit of the financial statements of the company's subsidiaries
20,100
19,060
24,300
23,100
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
92
98
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,018,314
3,073,131
-
0
-
0
Social security costs
315,436
344,462
-
-
Pension costs
56,396
56,904
-
0
-
0
3,390,146
3,474,497
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
111,120
167,787
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,295
1,370
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,295
1,370
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
662,838
340,030
Other finance costs:
Interest on finance leases and hire purchase contracts
7,324
7,519
Other interest
30,962
14,616
Total finance costs
701,124
362,165
10
Taxation
2023
2022
£
£
Current tax
As restated
UK corporation tax on profits for the current period
221,875
110,493
Deferred tax
Origination and reversal of timing differences
(23,699)
9,031
Total tax charge
198,176
119,524
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 22 -

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
As restated
(Loss)/profit before taxation
(1,365,685)
210,072
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(321,209)
38,959
Tax effect of expenses that are not deductible in determining taxable profit
12,003
5,211
Permanent capital allowances in excess of depreciation
32,993
59,567
Increase / (decrease) in fair value of investment property not taxable
474,389
2,850
Adjustment to prior year
-
0
12,937
Taxation charge
198,176
119,524
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
11
Tangible fixed assets
Group
Freehold land & buildings
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
13,805,001
53,600
2,917,810
813,226
283,644
28,333
282,981
18,184,595
Additions
76,340
23,931
722,510
269
52,831
582
-
0
876,463
Transfers
3,640,320
-
0
(3,640,320)
-
0
-
0
-
0
-
0
-
Revaluation
(2,665,191)
-
0
-
0
-
0
-
0
-
0
-
0
(2,665,191)
At 31 December 2023
14,856,470
77,531
-
0
813,495
336,475
28,915
282,981
16,395,867
Depreciation and impairment
At 1 January 2023
2,167
5,360
-
0
739,632
151,317
14,918
118,178
1,031,572
Depreciation charged in the year
181,469
7,753
-
0
18,456
47,116
6,647
41,201
302,642
At 31 December 2023
183,636
13,113
-
0
758,088
198,433
21,565
159,379
1,334,214
Carrying amount
At 31 December 2023
14,672,834
64,418
-
0
55,407
138,042
7,350
123,602
15,061,653
At 31 December 2022
13,802,834
48,240
2,917,810
73,594
132,327
13,415
164,803
17,153,023
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
121,940
162,586
-
0
-
0

The fair value of the freehold properties has been arrived at on the basis of the valuation carried out by Eddisons Real Estate & Business Valuers, who are not connected with the company, as at 3 August 2023 or 12 September 2024 depending on the properties. The valuation was carried out on a market value basis (which is considered to be a true reflection of the fair value) in accordance with the Royal Institute of Chartered Surveyors Valuation - Global Standards 2022 and the UK national supplement. The directors do not believe that there has been a material change in the fair value of the properties between the year end and the valuation date.

 

As at the year end the group completed construction of 15 new supported living facility beds. As such the relevant costs have been transferred from Assets under construction to Freehold buildings.

Freehold land and buildings are carried at valuation. If the relevant assets were measured using the cost model, the carrying amounts would be as follows:

2023
2022
£
£
Group
Cost
17,325,829
13,609,169
Accumulated depreciation
(575,919)
(383,410)
Carrying value
16,749,910
13,225,759
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
375,000
-
Revaluation
(20,000)
-
At 31 December 2023
355,000
-

The fair value of the investment property has been arrived at on the basis of the valuation carried out by Eddisons Real Estate & Business Valuers, who are not connected with the company, as at 3 August 2023. The valuation was carried out on a market value basis (which is considered to be a true reflection of the fair value) in accordance with the Royal Institute of Chartered Surveyors Valuation - Global Standards 2022 and the UK national supplement. The directors do not believe that there has been a material change in the fair value of the property between the year end and the valuation date.

 

The historical cost of the investment property is £105,000.

DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
203
203
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
203
Carrying amount
At 31 December 2023
203
At 31 December 2022
203
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
DRS Housing Ltd
1
Care Homes
Ordinary
100.00
-
DRS Domiciliary Agency Ltd
1
Property
Ordinary
100.00
-
DRS Care Homes Limited
1
Care Homes
Ordinary
100.00
-
DRS Care Home Properties Limited
1
Property
Ordinary
100.00
-
Fusion Flavour Ltd
1
Non-trading
Ordinary
-
100.00

Registered office addresses (all UK unless otherwise indicated):

1
45 Pembury Road, Tottenham, London, N17 6SS

Fusion Flavour Ltd was dissolved on 16 April 2024.

15
Financial instruments
Group
2023
2022
£
£
Carrying amount of financial assets
As restated
Debt instruments measured at amortised cost
455,693
660,214
Carrying amount of financial liabilities
Measured at amortised cost
10,859,069
11,180,266
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
As restated
Trade debtors
67,729
74,595
-
0
-
0
Amounts owed by group undertakings
-
-
9,622,876
9,976,091
Other debtors
4,466
-
-
0
-
0
Prepayments and accrued income
134,717
401,805
-
0
-
0
206,912
476,400
9,622,876
9,976,091
Amounts falling due after more than one year:
Deferred tax asset (note 21)
-
0
50,125
-
0
-
0
Total debtors
206,912
526,525
9,622,876
9,976,091
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
As restated
Bank loans
19
287,781
197,620
257,073
169,933
Obligations under finance leases
20
69,047
30,170
-
0
-
0
Trade creditors
62,196
57,788
18,480
1,576
Corporation tax payable
338,135
169,867
-
0
-
0
Other taxation and social security
407,466
315,554
-
-
Other creditors
1,649,064
2,234,176
1,303,054
1,946,636
Accruals
62,061
86,397
14,778
14,208
2,875,750
3,091,572
1,593,385
2,132,353
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
8,679,852
8,457,491
8,531,732
8,278,663
Obligations under finance leases
20
49,070
116,625
-
0
-
0
8,728,922
8,574,116
8,531,732
8,278,663
Amounts included above which fall due after five years are as follows:
Payable by instalments
7,276,178
5,216,689
7,276,178
5,182,295
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
Loans
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
8,967,633
8,655,111
8,788,805
8,448,596
Payable within one year
287,781
197,620
257,073
169,933
Payable after one year
8,679,852
8,457,491
8,531,732
8,278,663

 

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
69,047
30,170
-
0
-
0
In two to five years
49,070
116,625
-
0
-
0
118,117
146,795
-
-

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average remaining lease term is 2.1 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
66,456
90,155
-
-
Revaluations
-
104,050
-
50,125
66,456
194,205
-
50,125
The company has no deferred tax assets or liabilities.
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Deferred taxation
(Continued)
- 28 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
144,080
-
Credit to profit or loss
(23,699)
-
Credit to other comprehensive income
(53,925)
-
Liability at 31 December 2023
66,456
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,396
56,904

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4
4
4
4
24
Financial commitments, guarantees and contingent liabilities

Triodos Bank UK Limited has a fixed and floating charge over the assets of the company, covering the relevant group borrowings. At the balance sheet date the relevant group borrowings totalled £8,788,804 (2022: £8,448,596).

DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
36,000
-
-
-
Between two and five years
123,000
-
-
-
159,000
-
-
-
26
Events after the reporting date

On 1 May 2024 DRS Care Homes Limited entered into a lease agreement for a term of 5 years with an annual charge of £40,000.

27
Related party transactions

In accordance with Section 33.1A of FRS 102, related party transactions and outstanding balances have not been disclosed with and between wholly owned subsidiaries within the group.

28
Directors' transactions

As at the year end, the company and group owed Mrs R Datoo £1,300,542 (2022: £1,935,556). This loan is interest free, repayable on demand and included in other creditors.

 

The directors have provided a personal guarantee in relation to the company's overdraft facility. The exposure as at the year end is £nil.

29
Controlling party

The ultimate controlling party is Mrs R Datoo.

DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
30
Cash generated from group operations
2023
2022
£
£
As restated
(Loss)/profit for the year after tax
(1,563,861)
90,548
Adjustments for:
Taxation charged
198,176
119,524
Finance costs
701,124
362,165
Investment income
(1,295)
(1,370)
Gain on disposal of tangible fixed assets
-
(4,794)
Fair value loss/(gain) on investment properties
20,000
(15,000)
Depreciation of tangible fixed assets
302,642
319,157
Impairment of freehold properties
2,009,243
-
Movements in working capital:
Decrease in debtors
269,488
53,252
Increase in creditors
127,619
244,832
Decrease in deferred income
-
(17,335)
Cash generated from operations
2,063,136
1,150,979
31
Analysis of changes in net debt - group
1 January 2023
Cash flows
New bank loans
31 December 2023
£
£
£
£
Cash at bank and in hand
222,746
76,333
-
299,079
Borrowings excluding overdrafts
(8,655,111)
857,352
(1,169,873)
(8,967,633)
Obligations under finance leases
(146,795)
28,678
-
(118,117)
(8,579,160)
962,363
(1,169,873)
(8,786,671)
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
32
Prior period adjustment
Changes to the balance sheet - group
As previously reported
Adjustment at 1 Jan 2022
Adjustment at 31 Dec 2022
As restated at 31 Dec 2022
£
£
£
£
Current assets
Debtors due within one year
458,438
63,061
5,026
526,525
Creditors due within one year
Corporation tax
(156,930)
-
(12,937)
(169,867)
Net assets
6,362,251
63,061
(7,911)
6,417,401
Capital and reserves
Profit and loss reserves
5,760,224
63,061
(7,911)
5,815,374
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 December 2022
£
£
£
Turnover
5,673,161
(74,394)
5,598,767
Cost of sales
(4,109,076)
79,420
(4,029,656)
Taxation
(106,587)
(12,937)
(119,524)
Profit after taxation
98,459
(7,911)
90,548
Total comprehensive income
700,482
(7,911)
692,571
Reconciliation of changes in equity - group
1 January
31 December
2022
2022
Notes
£
£
Adjustments to prior year
Accrued income
1
63,061
68,087
Resident contributions
2
-
-
Corporation tax
3
-
(12,937)
Total adjustments
63,061
55,150
Equity as previously reported
5,661,768
6,362,251
Equity as adjusted
5,724,829
6,417,401
Analysis of the effect upon equity
Profit and loss reserves
63,061
55,150
DRS CARE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
32
Prior period adjustment
(Continued)
- 32 -
Reconciliation of changes in profit for the previous financial period
2022
Notes
£
Adjustments to prior year
Accrued income
1
5,026
Resident contributions
2
-
Corporation tax
3
(12,937)
Total adjustments
(7,911)
Profit as previously reported
98,459
Profit as adjusted
90,548
Notes to reconciliation
1) Accrued income

Following a detailed review of the services provided to residents, the directors identified additional services that were being provided to residents and as such additional income of £68,087 has been charged to the council for the period February 2017 to May 2022. Of this balance, £5,026 relates to the 2022 financial year and £63,061 relates to the period before the 2022 financial year.

2) Resident contributions

Following a review of the nominals allocated to turnover, the directors noted income relating to resident contributions which should be netted off against the relevant expense. A prior year adjustment has been processed to reclassify the balance from turnover to cost of sales.

 

3) Tax impact

Being the corporation tax impact of the above adjustments.

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