Registration number:
(FORMERLY LITTLE BIG FEET LIMITED)
for the
Year Ended 31 January 2024
Tanglewood Shared Services Limited
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Tanglewood Shared Services Limited
Company Information
Director |
M J Whitehead |
Registered office |
|
Auditors |
|
Tanglewood Shared 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 management services to the group. The principal activity of the group 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 £40,244,594 (2023 - £38,037,571) and an operating loss of £2,585,164 (2023 - £183,915). At 31 January 2024 the group had net assets of £6,657,848 (2023 - £3,450,929). The directors consider the performance for the year and the financial position of the group and the company at the year end to be satisfactory.
Given the nature of the business, the directors are of the opinion that key performance indicators are important. The group uses a number of indicators to monitor and improve the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. The directors do not consider the inclusion of an analysis using key performance indicators to be necessary to assist users of the financial statements in their understanding of the financial performance or position of the group.
Principal risks and uncertainties
The management of the business and the execution of the strategy of the group are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to competition from other providers of residential nursing care facilities.
Approved by the
Director
Tanglewood Shared Services Limited
Director's Report for the Year Ended 31 January 2024
The director presents his report and the for the year ended 31 January 2024.
Change of company name
The company changed its name from
Directors of the company
The directors who held office during the year were as follows:
Employment of disabled persons
All our team members are trained in Equality and Diversity. The Company's policy in relation to people with health conditions, both visible and non-visible, is that they should have full and fair consideration for all vacanies.The Company has a commitment to interviewing those applicants with disabilities who fulfil the minimum criteria and endeavouring to retain employees in the workforce if they become disabled during employment. The Company will actively retrain and adjust employees' environments where possible to allow them to maximise their potential.
Employee involvement
Employee engagement is fundamental to the Group's success. Regular meetings are held between management and employees across all levels of the organisation. Regular company communications provide employees with relevant information, training and support.
Financial instruments
Objectives and policies
The directors constantly monitor the group's trading results and revised projections as appropriate to ensure that the group can meet its future obligations as they fall due.
Price risk, credit risk, liquidity risk and cash flow risk
The group is exposed to the usual credit and cashflow risks associated with selling on credit and manage this through credit control procedures. The group's loan financing is subject to price and liquidity risks as disclosed in note 19 to the financial statements.
The group 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 group 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.
Future developments
The external environment is expected to remain competitive going forward, however, the directors are confident that the group will continue to improve the current level of performance in the future.
Disclosure of information to the auditor
The director has taken the 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 auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Tanglewood Shared 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 group and company and of the profit or loss of the group 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 have 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Tanglewood Shared Services Limited
Independent Auditor's Report to the Members of Tanglewood Shared Services Limited
Opinion
We have audited the financial statements of Tanglewood Shared Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 group's and the parent company's affairs as at 31 January 2024 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's 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.
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.
Tanglewood Shared Services Limited
Independent Auditor's Report to the Members of Tanglewood Shared Services Limited
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of 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 group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or 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.
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 group’s industry and its control environment and reviewed the group’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 group 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 group’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.
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 judgements 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. |
Tanglewood Shared Services Limited
Independent Auditor's Report to the Members of Tanglewood Shared Services Limited
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.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Tanglewood Shared Services Limited
Consolidated Profit and Loss Account for the Year Ended 31 January 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating loss |
( |
( |
|
Loss on disposal of investments |
( |
( |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
Loss before tax |
( |
( |
|
Taxation |
|
( |
|
Loss for the financial year |
( |
( |
|
Profit/(loss) attributable to: |
|||
Owners of the company |
( |
|
|
Minority interests |
( |
( |
|
( |
( |
The above results were derived from continuing operations.
Tanglewood Shared Services Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 January 2024
2024 |
2023 |
|
Loss for the year |
( |
( |
Surplus/deficit on property, plant and equipment revaluation |
|
- |
Movement in deferred tax relating to revaluation reserve |
(1,730,000) |
88,750 |
Total comprehensive income for the year |
|
( |
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Minority interests |
( |
( |
|
( |
Tanglewood Shared Services Limited
(Registration number: 09300482)
Consolidated Balance Sheet as at 31 January 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
( |
( |
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
- |
|
|
Debtors |
|
|
|
Cash at bank and in hand |
1,328,322 |
1,935,267 |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current (liabilities)/assets |
( |
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Revaluation reserve |
|
|
|
Profit and loss account |
( |
|
|
Equity attributable to owners of the company |
|
|
|
Minority interests |
( |
( |
|
Total equity |
|
|
Approved and authorised by the
Director
Tanglewood Shared Services Limited
(Registration number: 09300482)
Balance Sheet as at 31 January 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
493 |
2,558 |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
- |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial year of £176,889 (2023 - profit of £1,249,019).
Approved and authorised by the
Director
Tanglewood Shared Services Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 January 2024
Equity attributable to the parent company
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 February 2023 |
|
|
|
|
( |
|
Loss for the year |
- |
- |
( |
( |
( |
( |
Other comprehensive income |
- |
|
- |
|
- |
|
Total comprehensive income |
- |
|
( |
|
( |
|
Dividends |
- |
- |
( |
( |
- |
( |
Transfers |
- |
(355,000) |
284,000 |
(71,000) |
71,000 |
- |
At 31 January 2024 |
|
|
( |
|
( |
|
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 February 2022 |
|
|
|
|
|
|
Profit/(loss) for the year |
- |
- |
|
|
( |
( |
Other comprehensive income |
- |
|
- |
|
- |
|
Total comprehensive income |
- |
|
|
|
( |
( |
Dividends |
- |
- |
( |
( |
- |
( |
New share capital subscribed |
|
- |
- |
|
- |
|
Transfers |
- |
(355,000) |
355,000 |
- |
- |
- |
At 31 January 2023 |
|
|
|
|
( |
|
Tanglewood Shared Services Limited
Statement of Changes in Equity for the Year Ended 31 January 2024
Share capital |
Profit and loss account |
Total |
|
At 1 February 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 January 2024 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 February 2022 |
|
( |
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 January 2023 |
|
|
|
Tanglewood Shared Services Limited
Consolidated Statement of Cash Flows for the Year Ended 31 January 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss from disposals of investments |
92,818 |
31,583 |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
( |
|
||
Working capital adjustments |
|||
Decrease in stocks |
|
|
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Increase in deferred income, including government grants |
|
- |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Acquisition of investments in joint ventures and associates |
- |
( |
|
Proceeds from disposal of other investments |
- |
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 February |
|
|
|
Cash and cash equivalents at 31 January |
1,328,322 |
1,935,267 |
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The company was formerly known as Little Big Feet Limited.
The address of its registered office is:
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.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 January 2024.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £176,889 (2023 - £1,249,019).
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
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.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
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 group’s activities. Turnover is shown net of sales/value added tax and discounts and after eliminating sales within the group. The group 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 group'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.
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 group 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.
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
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 |
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Straight line over 5 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
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 group 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 group 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 Shared 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 group 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.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
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 an independently administered fund.
Financial instruments
Classification
Recognition and measurement
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Financial instruments (continued)
Impairment
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.
Revenue |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Income from property developments |
|
|
Provision of care |
|
|
Grants received |
|
|
|
|
The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Income from property developments |
|
|
Management charges receivable |
8,334 |
- |
|
|
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2024 |
2023 |
|
Loss on disposal of subsidiaries |
(92,818) |
(31,583) |
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
( |
( |
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
- |
|
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
- |
Interest expense on other finance liabilities |
|
|
|
|
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
Care |
|
|
Directors |
|
|
|
|
Company
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
2024 |
2023 |
|
Average number of employees |
|
|
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Director's remuneration |
The director's remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
18,372 |
96,107 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
31,650 |
40,680 |
Other fees to auditors |
||
All other non-audit services |
|
|
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax adjustment to prior periods |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Tax (receipt)/expense in the income statement |
( |
|
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
The differences are reconciled below:
2024 |
2023 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Effect of revenues exempt from taxation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
- |
|
Deferred tax expense/(credit) relating to changes in tax rates or laws |
|
( |
Decrease from tax losses for which no deferred tax asset was recognised |
( |
- |
Deferred tax (credit)/expense from unrecognised temporary difference from a prior period |
( |
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
Tax increase from effect of unrelieved tax losses carried forward |
|
|
Total tax (credit)/charge |
( |
|
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Liability |
Fixed asset timing differences |
( |
Short term timing differences |
( |
Revaluation of leasehold property |
|
Taxable losses |
( |
|
2023 |
Liability |
Fixed asset timing differences |
|
Short term timing differences |
( |
Revaluation of leasehold property |
|
|
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Company
Deferred tax assets and liabilities
2024 |
Asset |
Fixed asset timing differences |
|
Short term timing differences |
|
|
2023 |
Liability |
Fixed asset timing differences |
|
Short term timing differences |
( |
|
Intangible assets |
Group
Negative Goodwill |
|
Cost |
|
At 1 February 2023 and at 31 January 2024 |
( |
Amortisation |
|
At 1 February 2023 |
( |
Amortisation charge |
( |
At 31 January 2024 |
( |
Carrying amount |
|
At 31 January 2024 |
( |
At 31 January 2023 |
( |
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Tangible assets |
Group
Leasehold land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 February 2023 |
|
|
|
|
Revaluations |
|
- |
- |
|
Additions |
|
|
- |
|
At 31 January 2024 |
|
|
|
|
Depreciation |
||||
At 1 February 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 January 2024 |
|
|
|
|
Carrying amount |
||||
At 31 January 2024 |
|
|
|
|
At 31 January 2023 |
|
|
|
|
Revaluation
The fair value of the group's [leasehold property was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £Nil (2023 - £Nil).
Company
Furniture, fittings and equipment |
|
Cost |
|
At 1 February 2023 and at 31 January 2024 |
|
Depreciation |
|
At 1 February 2023 |
|
Charge for the year and at 31 January 2024 |
|
Carrying amount |
|
At 31 January 2024 |
|
At 31 January 2023 |
|
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Investments |
Group
2024 |
2023 |
|
Investments in joint ventures |
|
|
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Investments in joint ventures |
|
|
|
|
Subsidiaries |
£ |
Cost and carrying amount |
|
At 1 February 2023 and at 31 January 2024 |
|
Joint ventures |
£ |
Cost and carrying amount |
|
At 1 February 2023 and at 31 January 2024 |
|
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
2024 |
2023 |
||||||
Subsidiary undertakings |
|||||||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
Joint ventures |
|||||||
|
England and Wales |
Ordinary |
|
|
|||
*- These shares are directly held.
Subsidiary undertakings |
Tanglewood Project Company Grantham Limited* The principal activity of Tanglewood Project Company Grantham Limited* is |
Tanglewood Holding Company Limited* The principal activity of Tanglewood Holding Company Limited* is |
Tanglewood Care Services Limited The principal activity of Tanglewood Care Services Limited is |
M and G Care Limited The principal activity of M and G Care Limited is |
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Tanglewood Project Company No.1 Limited The principal activity of Tanglewood Project Company No.1 Limited is |
Tanglewood Project Company No.2 Limited The principal activity of Tanglewood Project Company No.2 Limited is |
Tanglewood Project Company No.3 Limited The principal activity of Tanglewood Project Company No.3 Limited is |
Origin Care Homes (Developments) Limited* The principal activity of Origin Care Homes (Developments) Limited* is |
Origin Care Homes Holding Company Limited* The principal activity of Origin Care Homes Holding Company Limited* is |
Origin Care Homes Limited The principal activity of Origin Care Homes Limited is |
Origin Care Homes (Beeston) Limited The principal activity of Origin Care Homes (Beeston) Limited is |
Origin Care Homes (Holbeach) Limited The principal activity of Origin Care Homes (Holbeach) Limited is |
Origin Care Homes (West Bridgford) Limited The principal activity of Origin Care Homes (West Bridgford) Limited is |
Origin Care Homes (Oadbys) Limited The principal activity of Origin Care Homes (Oadbys) Limited is |
Origin Care Homes (Humberston) Limited The principal activity of Origin Care Homes (Humberston) Limited is |
Joint ventures |
Torwood Care Limited The principal activity of Torwood Care Limited is |
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Stocks |
Group |
Company |
||||
2024 |
2023 |
2024 |
2023 |
||
Inventory |
- |
|
- |
- |
|
Work in progress |
- |
|
- |
- |
|
- |
|
- |
- |
Debtors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
|
- |
|
- |
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
|
|
|
Accrued income |
|
|
|
|
|
Deferred tax assets |
- |
- |
|
- |
|
Amounts owed by group undertakings |
- |
- |
215,813 |
1,807,656 |
|
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
- |
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
- |
|
- |
|
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
Other creditors |
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
Corporation tax liability |
321,710 |
165,316 |
46,394 |
- |
|
Deferred income |
|
|
- |
- |
|
Amounts owed to group undertakings |
- |
- |
- |
1,827,293 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
- |
|
- |
- |
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Loans and borrowings |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Current loans and borrowings |
||||
Other borrowings |
|
- |
- |
- |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Non-current loans and borrowings |
||||
Other borrowings |
- |
|
- |
- |
Other borrowings relates to unsecured debt of £2,000,000 and is due for repayment in December 2024. The loan attracts interest of 12% and has been advanced from a company connected to the holder of the company's B ordinary share.
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
200,000 |
|
200,000 |
|
|
1 |
|
1 |
|
|
|
|
Ordinary A shares are entitled to one vote in any circumstances and each share is also entitled to dividend payments or any other distribution, including distribution from a winding up of the company.
The Ordinary B share is entitled to 15% of the distributable funds from time to time but carries no right to vote.
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Reserves |
Group
Revaluation reserve
The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:
Revaluation reserve |
|
Surplus/deficit on property, plant and equipment revaluation |
|
|
The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:
Revaluation reserve |
|
Surplus/deficit on property, plant and equipment revaluation |
|
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Dividends |
2024 |
2023 |
|
Dividends paid |
179,000 |
258,167 |
Analysis of changes in net debt |
Group
At 1 February 2023 |
Financing cash flows |
At 31 January 2024 |
|
Cash and cash equivalents |
|||
Cash |
1,935,267 |
(606,945) |
1,328,322 |
Borrowings |
|||
Other borrowings |
(2,000,000) |
- |
(2,000,000) |
|
|||
( |
( |
( |
Tanglewood Shared Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Related party transactions |
Group
Summary of transactions with key management
Summary of transactions with entities with joint control or significant interest
At 31 January 2024, the company owed £199,856 (2023 - £128,271) to 2 companies, of which G Reid is also a shareholder and director.
Summary of transactions with all joint ventures
Company
Summary of transactions with entities with joint control or significant interest
Summary of transactions with all subsidiaries
Summary of transactions with all joint ventures
Parent and ultimate parent undertaking |
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