Tanglewood Care Services Limited 09618366 false 2023-02-01 2024-01-31 2024-01-31 The principal activity of the company is the provision of residential nursing care facilities. Digita Accounts Production Advanced 6.30.9574.0 true true true true 09618366 2023-02-01 2024-01-31 09618366 2024-01-31 09618366 bus:Director1 2024-01-31 09618366 bus:OrdinaryShareClass1 2024-01-31 09618366 bus:Consolidated 2024-01-31 09618366 core:AcceleratedTaxDepreciationDeferredTax 2024-01-31 09618366 core:ProvisionsDeferredTax 2024-01-31 09618366 core:RevaluationPropertyDeferredTax 2024-01-31 09618366 core:RetainedEarningsAccumulatedLosses 2024-01-31 09618366 core:RevaluationReserve 2024-01-31 09618366 core:ShareCapital 2024-01-31 09618366 core:CurrentFinancialInstruments 2024-01-31 09618366 core:CurrentFinancialInstruments core:WithinOneYear 2024-01-31 09618366 core:Non-currentFinancialInstruments 2024-01-31 09618366 core:Non-currentFinancialInstruments core:AfterOneYear 2024-01-31 09618366 core:BetweenTwoFiveYears 2024-01-31 09618366 core:MoreThanFiveYears 2024-01-31 09618366 core:WithinOneYear 2024-01-31 09618366 core:FurnitureFittingsToolsEquipment 2024-01-31 09618366 core:LandBuildings 2024-01-31 09618366 core:MotorVehicles 2024-01-31 09618366 bus:FRS102 2023-02-01 2024-01-31 09618366 bus:Audited 2023-02-01 2024-01-31 09618366 bus:FullAccounts 2023-02-01 2024-01-31 09618366 bus:RegisteredOffice 2023-02-01 2024-01-31 09618366 bus:Director1 2023-02-01 2024-01-31 09618366 bus:Director2 2023-02-01 2024-01-31 09618366 bus:OrdinaryShareClass1 2023-02-01 2024-01-31 09618366 bus:Consolidated 2023-02-01 2024-01-31 09618366 bus:PrivateLimitedCompanyLtd 2023-02-01 2024-01-31 09618366 core:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 09618366 core:RevaluationReserve 2023-02-01 2024-01-31 09618366 core:RevaluationReserve core:LandBuildings 2023-02-01 2024-01-31 09618366 core:ShareCapital 2023-02-01 2024-01-31 09618366 core:LandBuildingsUnderOperatingLeases 2023-02-01 2024-01-31 09618366 core:FurnitureFittings 2023-02-01 2024-01-31 09618366 core:FurnitureFittingsToolsEquipment 2023-02-01 2024-01-31 09618366 core:LandBuildings 2023-02-01 2024-01-31 09618366 core:MotorVehicles 2023-02-01 2024-01-31 09618366 core:Vehicles 2023-02-01 2024-01-31 09618366 core:AllSubsidiaries 2023-02-01 2024-01-31 09618366 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-02-01 2024-01-31 09618366 core:OtherRelatedParties 2023-02-01 2024-01-31 09618366 core:UKTax 2023-02-01 2024-01-31 09618366 countries:EnglandWales 2023-02-01 2024-01-31 09618366 2023-01-31 09618366 core:RetainedEarningsAccumulatedLosses 2023-01-31 09618366 core:RevaluationReserve 2023-01-31 09618366 core:ShareCapital 2023-01-31 09618366 core:FurnitureFittingsToolsEquipment 2023-01-31 09618366 core:LandBuildings 2023-01-31 09618366 core:MotorVehicles 2023-01-31 09618366 2022-02-01 2023-01-31 09618366 2023-01-31 09618366 bus:OrdinaryShareClass1 2023-01-31 09618366 core:AcceleratedTaxDepreciationDeferredTax 2023-01-31 09618366 core:ProvisionsDeferredTax 2023-01-31 09618366 core:RevaluationPropertyDeferredTax 2023-01-31 09618366 core:RetainedEarningsAccumulatedLosses 2023-01-31 09618366 core:RevaluationReserve 2023-01-31 09618366 core:ShareCapital 2023-01-31 09618366 core:CurrentFinancialInstruments 2023-01-31 09618366 core:CurrentFinancialInstruments core:WithinOneYear 2023-01-31 09618366 core:Non-currentFinancialInstruments 2023-01-31 09618366 core:Non-currentFinancialInstruments core:AfterOneYear 2023-01-31 09618366 core:BetweenTwoFiveYears 2023-01-31 09618366 core:MoreThanFiveYears 2023-01-31 09618366 core:WithinOneYear 2023-01-31 09618366 core:FurnitureFittingsToolsEquipment 2023-01-31 09618366 core:LandBuildings 2023-01-31 09618366 core:MotorVehicles 2023-01-31 09618366 core:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 09618366 core:RevaluationReserve 2022-02-01 2023-01-31 09618366 core:ShareCapital 2022-02-01 2023-01-31 09618366 core:LandBuildingsUnderOperatingLeases 2022-02-01 2023-01-31 09618366 core:UKTax 2022-02-01 2023-01-31 09618366 2022-01-31 09618366 core:RetainedEarningsAccumulatedLosses 2022-01-31 09618366 core:RevaluationReserve 2022-01-31 09618366 core:ShareCapital 2022-01-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 09618366

Tanglewood Care Services Limited

Annual Report and Financial Statements

for the Year Ended 31 January 2024

 

Tanglewood Care Services Limited

Contents

Company Information

1

Strategic Report

2

Director's Report

3

Statement of Director's Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12 to 20

 

Tanglewood Care Services Limited

Company Information

Director

M J Whitehead

Registered office

2 Endeavour Park
Boston
Licolnshire
PE21 7TQ

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Tanglewood Care Services Limited

Strategic Report for the Year Ended 31 January 2024

The director presents his strategic report for the year ended 31 January 2024.

Principal activity

The principal activity of the company is the provision of residential nursing care facilities.

Fair review of the business

The results for the year, which are set out in the profit and loss account, show turnover of £24,483,845 (2023 - £21,521,313) and an operating loss of £396,431 (2023 - loss of £99,356). At 31 January 2024, the company had net assets of £8,414,685 (2023 - £6,216,669). The directors consider the performance for the year and the financial position at the year end to be satisfactory.

Principal risks and uncertainties

Details of future developments, principal risks and uncertainties and key performance indicators are disclosed in the group financial statements of the company's ultimate parent company, Tanglewood Shared Services Limited.

Approved by the director on 30 October 2024 and signed on its behalf by:


M J Whitehead
Director

 

Tanglewood Care Services Limited

Director's Report for the Year Ended 31 January 2024

The director presents his report and the financial statements for the year ended 31 January 2024.

Directors of the company

The directors who held office during the year were as follows:

G J Reid (resigned 9 May 2024)

M J Whitehead

Financial instruments

Objectives and policies

The directors constantly monitor the company's trading results and revised projections as appropriate to ensure that the company can meet its future obligations as they fall due.

Price risk, credit risk, liquidity risk and cash flow risk

The company is exposed to the usual credit and cash flow risks associated with selling on credit and manage through credit control procedures. The company's loan financing is subject to price and liquidity risks as disclosed in note 14 to the financial statements.

The company has sufficient resources available and the directors have prepared forecasts for the next 12 months that indicate that this will continue to be the case and that these cashflows will be sufficient for the company to meet its financing commitments as they fall due. The directors therefore have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Employment of disabled persons

The company’s policy is to consider the recruitment of disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Employee involvement

The company encourages the involvement of employees in its management through regular departmental meetings.

Disclosure of information to the auditors

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the director on 30 October 2024 and signed on its behalf by:


M J Whitehead
Director

 

Tanglewood Care Services Limited

Statement of Director's Responsibilities

The director is responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Tanglewood Care Services Limited

Independent Auditor's Report to the Members of Tanglewood Care Services Limited

Opinion

We have audited the financial statements of Tanglewood Care Services Limited (the 'company') for the year ended 31 January 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Tanglewood Care Services Limited

Independent Auditor's Report to the Members of Tanglewood Care Services Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities set out on page 4, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

Tanglewood Care Services Limited

Independent Auditor's Report to the Members of Tanglewood Care Services Limited

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.





Simon Worsley (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

30 October 2024

 

Tanglewood Care Services Limited

Profit and Loss Account for the Year Ended 31 January 2024

Note

2024
 £

2023
 £

Turnover

3

24,483,845

21,521,313

Cost of sales

 

(10,370,200)

(10,326,047)

Gross profit

 

14,113,645

11,195,266

Administrative expenses

 

(14,510,076)

(11,294,622)

Operating loss

4

(396,431)

(99,356)

Other interest receivable and similar income

5

7,937

-

Interest payable and similar charges

6

(240,000)

(249,205)

Loss before tax

 

(628,494)

(348,561)

Taxation

10

86,510

(50,595)

Loss for the financial year

 

(541,984)

(399,156)

The above results were derived from continuing operations.

 

Tanglewood Care Services Limited

Statement of Comprehensive Income for the Year Ended 31 January 2024

2024
£

2023
£

Loss for the year

(541,984)

(399,156)

Surplus on property plant and equipment revaluation

3,535,000

-

Movement in deferred tax relating to revaluation reserve

(795,000)

88,750

Total comprehensive income for the year

2,198,016

(310,406)

 

Tanglewood Care Services Limited

(Registration number: 09618366)
Balance Sheet as at 31 January 2024

Note

2024
 £

2023
 £

Fixed assets

 

Tangible assets

11

7,924,442

5,164,675

Current assets

 

Stocks

12

-

12,149

Debtors

13

5,621,303

5,937,129

Cash at bank and in hand

 

1,325,684

1,195,528

 

6,946,987

7,144,806

Creditors: Amounts falling due within one year

14

(4,648,503)

(2,993,061)

Net current assets

 

2,298,484

4,151,745

Total assets less current liabilities

 

10,222,926

9,316,420

Creditors: Amounts falling due after more than one year

14

-

(2,000,000)

Provisions for liabilities

10

(1,808,241)

(1,099,751)

Net assets

 

8,414,685

6,216,669

Capital and reserves

 

Called up share capital

 

1,182,266

1,182,266

Revaluation reserve

18

5,580,000

3,195,000

Profit and loss account

 

1,652,419

1,839,403

Total equity

 

8,414,685

6,216,669

Approved and authorised by the director on 30 October 2024
 


M J Whitehead
Director

 

Tanglewood Care Services Limited

Statement of Changes in Equity for the Year Ended 31 January 2024

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 February 2023

1,182,266

3,195,000

1,839,403

6,216,669

Loss for the year

-

-

(541,984)

(541,984)

Other comprehensive income

-

2,740,000

-

2,740,000

Transfers

-

(355,000)

355,000

-

At 31 January 2024

1,182,266

5,580,000

1,652,419

8,414,685

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 February 2022

1,182,266

3,461,250

1,883,559

6,527,075

Loss for the year

-

-

(399,156)

(399,156)

Other comprehensive income

-

88,750

-

88,750

Transfers

-

(355,000)

355,000

-

At 31 January 2023

1,182,266

3,195,000

1,839,403

6,216,669

 

Tanglewood Care Services Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
2 Endeavour Park
Boston
Licolnshire
PE21 7TQ

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

The company has not presented a cash flow statement on the grounds that the company is consolidated and a cash flow statement included in the financial statements of the ultimate parent company.

Name of parent of group

These financial statements are consolidated in the financial statements of Tanglewood Shared Services Limited.

The financial statements of Tanglewood Shared Services Limited may be obtained from Companies House.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of discounts. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

 

Tanglewood Care Services Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

Tax

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

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax creditors in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture and fittings

Straight line over 5 years

Motor vehicles

Straight line over 5 years

Leasehold property

Over the term of the lease

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

 

Tanglewood Care Services Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid, the company has no further payment obligations.

Contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in other creditors as a liability in the balance sheet. The assets of the plan are held separately from the company in a independently administered fund.


Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Tanglewood Care Services Limited

Notes to the Financial Statements for the Year Ended 31 January 2024


Financial instruments (continued)

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

 

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of services

15,786,633

12,897,555

Management charge receivable

8,548,527

8,311,029

Grants received

148,685

312,729

24,483,845

21,521,313

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.
 

 

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

835,790

828,262

Operating lease expense - property

3,613,548

3,555,850

 

Tanglewood Care Services Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

 

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on investments

7,937

-

 

6

Interest payable and similar expenses

2024
£

2023
£

Interest expense on other finance liabilities

240,000

249,205

 

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
 £

2023
 £

Wages and salaries

8,441,147

7,183,541

Social security costs

603,273

472,918

Pension costs, defined contribution scheme

136,552

110,450

9,180,972

7,766,909

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2024
 No.

2023
 No.

Administration and support

2

2

Care staff

451

444

453

446

 

8

Director's remuneration

In the current and prior years, directors' remuneration was borne by the ultimate parent undertaking.
 

 

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

-

10,500

Other fees to auditors

All other non-audit services

4,800

3,900

 

Tanglewood Care Services Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

 

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax adjustment to prior periods

-

100,629

Deferred taxation

Arising from origination and reversal of timing differences

(86,510)

(50,034)

Tax (receipt)/expense in the income statement

(86,510)

50,595

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 24% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Loss before tax

(628,494)

(348,561)

Corporation tax at standard rate

(150,839)

(66,227)

Effect of expense not deductible in determining taxable profit (tax loss)

-

12,382

Deferred tax (credit)/expense relating to changes in tax rates or laws

(2,970)

3,767

Deferred tax credit from unrecognised temporary difference from a prior period

(9,961)

(12,912)

Increase in UK and foreign current tax from adjustment for prior periods

-

100,629

Tax increase from effect of capital allowances and depreciation

104,434

73,560

Tax decrease from other short-term timing differences

-

(5,450)

Tax decrease arising from group relief

(27,174)

(55,154)

Total tax (credit)/charge

(86,510)

50,595

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Fixed asset timing differences

(35,448)

Short-term timing differences

(16,311)

Revaluation of leasehold property

1,860,000

1,808,241

2023

Liability
£

Fixed asset timing differences

47,556

Short-term timing differences

(12,805)

Revaluation of leasehold property

1,065,000

1,099,751

 

Tanglewood Care Services Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

 

11

Tangible assets

Leasehold land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 February 2023

4,970,000

2,363,511

14,384

7,347,895

Revaluations

3,535,000

-

-

3,535,000

Additions

-

60,557

-

60,557

At 31 January 2024

8,505,000

2,424,068

14,384

10,943,452

Depreciation

At 1 February 2023

710,000

1,465,308

7,912

2,183,220

Charge for the year

355,000

477,913

2,877

835,790

At 31 January 2024

1,065,000

1,943,221

10,789

3,019,010

Carrying amount

At 31 January 2024

7,440,000

480,847

3,595

7,924,442

At 31 January 2023

4,260,000

898,203

6,472

5,164,675


Revaluation
The fair value of the company's leasehold property was revalued on 31 January 2024 by an internal, qualified valuer. The basis of the valuation was business use with regard to full trading potential.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £Nil (2023 - £Nil).

 

12

Stocks

2024
£

2023
£

Inventory

-

12,149

 

13

Debtors

Note

2024
 £

2023
 £

Trade debtors

 

717,751

678,063

Amounts owed by group undertakings

 

3,774,220

4,584,994

Other debtors

 

14,896

10,504

Prepayments

 

453,891

445,713

Accrued income

 

165,490

217,855

Amounts owed by related parties

20

495,055

-

   

5,621,303

5,937,129

 

Tanglewood Care Services Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

 

14

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

15

2,000,000

-

Trade creditors

 

1,045,104

1,503,140

Social security and other taxes

 

200,778

134,039

Outstanding defined contribution pension costs

 

39,217

30,354

Other creditors

 

343,837

295,123

Accrued expenses

 

646,379

610,695

Corporation tax liability

 

85,316

165,316

Deferred income

 

287,872

254,394

 

4,648,503

2,993,061

Due after one year

 

Loans and borrowings

15

-

2,000,000

 

15

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Other borrowings

2,000,000

-

2024
£

2023
£

Non-current loans and borrowings

Other borrowings

-

2,000,000

Other borrowings relate to an unsecured loan of £2,000,000 which is due for repayment in December 2024. The loan attracts interest of 12% per annum and is owed to an entity connected to a minority shareholder of the company's immediate parent company, Tanglewood Holding Company Limited.

 

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £136,552 (2023 - £110,450).

Contributions totalling £39,217 (2023 - £30,354) were payable to the scheme at the end of the year and are included in creditors.

 

17

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £1 each

1,182,266

1,182,266

1,182,266

1,182,266

         
 

Tanglewood Care Services Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

 

18

Reserves

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

Revaluation reserve
£

Surplus on property revaluation

2,740,000

 

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

3,660,801

3,599,503

Later than one year and not later than five years

14,616,505

14,384,168

Later than five years

21,583,675

24,546,422

39,860,981

42,530,093

 

20

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 8 to the financial statements.

Summary of transactions with subsidiaries

At 31 January 2024, the company owed £734,400 (2023 - £1,440,515) to 5 (2023 - 1) fellow subsidiaries within the group headed by its ultimate parent undertaking, Tanglewood Shared Services Limited, none of which are wholly owned. These balances are interest free with no fixed repayment terms.

Summary of transactions with other related parties

At 31 January 2024, the company was owed £241,357 from companies of which M J Whitehead is also a shareholder and director of.
 

 

21

Parent and ultimate parent undertaking

The company's immediate parent is Tanglewood Holding Company Limited, incorporated in England and Wales.

 The ultimate parent is Tanglewood Shared Services Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Tanglewood Shared Services Limited. These financial statements are available upon request from Companies House.

 Up to 9 May 2024, Tanglewood Shared Services Limited was jointly controlled by G J Reid and M J Whitehead. Since this date, the ultimate controlling party is M J Whitehead.