Company registration number 00784499 (England and Wales)
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
COMPANY INFORMATION
Directors
Mr N J Farmer (Chairman)
Ms L Hitchcox
Ms S Leech
Mr A Yarwood
Ms K Pike
Mr A Burgess
(Appointed 30 August 2023)
Company number
00784499
Charity number
233269
Registered office
Lear House
17 Darmonds Green
West Kirby
Wirral
CH48 5DT
Auditor
Lonsdale & Marsh
509 - 510 Cotton Exchange
Bixteth Street
Liverpool
L3 9LQ
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
CONTENTS
Page
Report of the executive committee
1 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 17
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
REPORT OF THE EXECUTIVE COMMITTEE
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The Executive Committee, the members of which are also directors for the purposes of company law, submits its 60th annual report together with the audited financial statements for the year ended 31 March 2024.

Objectives and activities for public benefit

The principal activity of the Society, as determined by its memorandum of association, is to provide accommodation, care and companionship for lonely frail elderly people in accordance with the aims and principles of Abbeyfield England. There has been no change in the activities of the Society during the year.

 

The Executive Committee refer to the Charity Commission's general guidance on public benefit when reviewing the Society's aims and objectives and in planning future activities. In particular the Committee consider how planned activities will contribute to the aims and objectives they have set and how these will benefit the recipients in accordance with the aims and principles of the Society.

 

Status

The Society is a company limited by guarantee (number 00784499), having no share capital, and with solely charitable objectives and is registered as a charity (number 233269).

 

It is registered with Homes England (formerly the Homes and Communities Agency) as a registered provider of social housing (number H2854).

 

The Society is governed by a Memorandum and Articles of Association and was incorporated on 13th December 1963.

 

Organisation

The Articles of Association govern the appointment of the executive committee, which is charged with the management of the Society in furtherance of its principal activity, fund management and financial affairs generally. The executive committee shall consist of not less than three and not more than twenty six members. The executive committee has the power to appoint executive committee members to fill a casual vacancy. One third of the executive committee members must retire by rotation each year but are eligible for re-election. There are sub-committees relating to Operations and Finance and at least one member of the executive committee is a member of each sub-committee. Sub-committees report to the executive committee where decisions are made

 

The Society is a member of Abbeyfield England to which it pays an annual affiliation fee.

Executive committee

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

Mr N J Farmer (Chairman)
Ms L Hitchcox
Ms S Leech
Mr A Yarwood
Ms K Pike
Mr A Burgess
(Appointed 30 August 2023)

In accordance with the Society's Articles of Association Ms S Leech and Mr A Yarwood retire by rotation. All members, being eligible, offer themselves for re-election at the forthcoming annual general meeting.

THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
REPORT OF THE EXECUTIVE COMMITTEE (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Review of activities and achievements during the year

Lear House continues to provide a warm, safe, and friendly home for our residents. We are fortunate to have dedicated and committed staff to support those residents. In support of our staff and their personal development a continuous programme of training is in operation. The Trustees want to pass on their gratitude to all the staff, whose professionalism, friendliness and focus on the individual needs of our residents continues to make Lear House an extremely popular choice for people wanting a new permanent home or respite care. Occupancy levels remain high at around 96%. Our last CQC rating was graded “good” and based on the PAMMS inspection in January 2024 this is being maintained.

 

The Society employs an activities coordinator and provides a budget for activities. This is regarded as an important aspect of care and provides an enjoyable and stimulating environment for the residents.

 

The frequency and level of activities for residents continues to expand. These now include:

 

 

In addition, we are again able to give residents the opportunity to visit local places of interest. We welcome friends and relatives joining in the various activities. More information and photographs can be found on our website, abbeyfieldwestkirby.co.uk and on facebook at facebook.com/abbeyfieldhoylake.

 

As reported last year our IT systems have undergone significant upgrades which has facilitated the use of electronic aids in our staff training and has allowed the development of electronic care reporting systems which should be fully operational by August 2024. The improved wi-fi connectivity also gives greater opportunities for residents to be in contact with friends and relatives.

 

Full planning permission has been obtained for the project to link Elliot House into Lear House and provide a further nine bedrooms, improving the overall viability of the Society. The project is in the costing and funding stage with approximately half of the cost of the build coming from the Society’s own reserves. This will be after ensuring that sufficient reserves are maintained for the ongoing operation and contingency of the business. The final selection of the construction company is under way following the submission of tenders. This is being undertaken in conjunction with our architects, Paddock Johnson and quantity surveyors, the Simon Fenton Partnership. Discussions are under way with a potential lender to help finance the project and it is hoped work will start during the current year. The project is expected to take approximately one year to complete.

 

In August 2023 we welcomed Alan Burgess as a new Trustee. He brings a wealth of business experience to the Society and is already fully involved in the strategic management of the Society.

 

The financial results for the year show the Society continues to operate efficiently producing a surplus of £90,948 (2023 surplus £44,027). The surplus includes an increase in the value of investments at the year end of £34,658 (2023 decrease in value £69,227).

 

We are committed to providing affordable care of the highest standards and have an ongoing refurbishment programme in place.

 

Whilst considerable long-standing problems remain about the funding of social care, the Trustees are confident that the Society is well positioned to manage any short-term pressures.

 

THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
REPORT OF THE EXECUTIVE COMMITTEE (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Reserves and investment policies

The Society has always used its surplus free reserves - being funds not comprised of fixed assets or other designated reserves - to help fund the cost of improvements to the services and support provided to residents including helping to fund, in the past, the implementation and completion of housing property projects.

 

The aim of the Society is to have day to day running costs which will be funded by amounts received in respect of residents' charges.

 

The Executive Committee continues to review its reserves policy and has concluded that a level of free reserves of £370,000 (2023 - £370,000) is appropriate. This amount equates to approximately four months of normal expenditure requirements. The Committee considers that the level of free reserves is satisfactory.

Internal financial control

The Executive Committee acknowledges that it is responsible for the Society’s system of internal financial control, which can only provide reasonable and not absolute assurance against material misstatement or loss.

 

All expenditure is controlled by the General Manager with the exception of specialist health care supplies which are authorised by the Care Manager. The General Manger, with the help of the bookkeeper, consolidates all the expenditure into monthly reports to produce internal management information. The management information and underlying data are reviewed regularly by the Executive Committee at their meetings and compared to budgets prepared at the beginning of each financial year.

 

Before the end of each year the management information is utilised to provide updated projected figures for the year and also to provide projected figures for the following year. These projections are prepared by management and reviewed by the Executive Committee. The Executive Committee monitors the actual expenditure and compares this to the budgeted expenditure. All major items of expenditure, whether or not anticipated by the Society’s budgets, are approved by the Executive Committee and dealt with by the Society’s Head Office. The Executive Committee meets at least quarterly to manage the running of the Society and to ensure that we pursue developments in our services which will continue to meet the needs of older people, both now and in the future. The Executive Committee reviews its procedures on an annual basis.

 

Risk management

The Executive Committee has overall responsibility for ensuring that the Society has appropriate systems of controls, financial and otherwise. The systems of financial controls are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include an annual budget, approved by the Executive Committee, monthly reviews of actual results and variances from budget, and delegation of authority and segregation of duties as far as possible given staffing levels.

 

The Executive Committee has assessed the major risks to which the Society is exposed, in particular those related to the operations, finances and strategies of the Society, and is satisfied that systems are in place to mitigate exposure to the major risks.

THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
REPORT OF THE EXECUTIVE COMMITTEE (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Statement of Executive Committee responsibilities

The Executive Committee are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the Executive Committee to prepare financial statements for each financial year. Under that law the Executive Committee have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Executive Committee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Society and of the surplus or deficit of the Society for that period. In preparing these financial statements, the Executive Committee are required to:

 

 

The Executive Committee are responsible for keeping adequate accounting records that are sufficient to show and explain the Society's transactions and disclose with reasonable accuracy at any time the financial position of the Society and enable them to ensure that the financial statements comply with the Companies Act 2006 and the Housing and Regeneration Act 2008. They are also responsible for safeguarding the assets of the Society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the Society's articles, a resolution proposing that Lonsdale & Marsh be reappointed as auditor of the Society will be put at a General Meeting.

Statement of disclosure to auditor

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr N J Farmer (Chairman)
Director
30 September 2024
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
- 5 -
Opinion

We have audited the financial statements of The Abbeyfield Hoylake & West Kirby Society Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The Executive Committee 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.

Opinions on other matters prescribed by the Companies Act 2006

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

THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Executive Committee'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:

 

Responsibilities of directors

As explained more fully in the Executive Committee's responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the Trustees are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED (CONTINUED)
- 7 -

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Society and determined that the most significant are those that relate to the Care Quality Commission requirements and those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:

 

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including override of controls) and addressed the risk through:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed our audit procedures which included, but was not limited to:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the Society'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 Society'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 Society and the Society's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Elaine Frances McElroy
Senior Statutory Auditor
For and on behalf of Lonsdale & Marsh
8 October 2024
Chartered Accountants
Statutory Auditor
509 - 510 Cotton Exchange
Bixteth Street
Liverpool
L3 9LQ
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Income
3
1,253,290
1,154,939
House operating costs
(908,016)
(813,361)
Administrative expenses
(249,958)
(270,539)
Other operating (expenses)/income
(80,111)
17,945
Operating surplus
4
15,205
88,984
Interest receivable and similar income
36,449
26,531
Increase/(decrease) in fair value of investments
39,294
(71,488)
Surplus before taxation
90,948
44,027
Tax on surplus
-
0
-
0
Surplus for the financial year
90,948
44,027
Retained earnings brought forward
3,578,695
3,534,668
Retained earnings carried forward
3,669,643
3,578,695

The income and expenditure account has been prepared on the basis that all operations are continuing operations.

THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
2,071,162
2,082,792
Investments
7
1,013,751
954,423
3,084,913
3,037,215
Current assets
Debtors
8
135,735
31,256
Cash at bank and in hand
761,213
698,440
896,948
729,696
Creditors: amounts falling due within one year
9
(312,218)
(47,887)
Net current assets
584,730
681,809
Total assets less current liabilities
3,669,643
3,719,024
Creditors: amounts falling due after more than one year
11
-
0
(140,329)
Net assets
3,669,643
3,578,695
Reserves
Income and expenditure account
3,669,643
3,578,695
Members' funds
3,669,643
3,578,695

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
Mr N J Farmer  (Chairman)
Ms S Leech
Director
Director
Company registration number 00784499 (England and Wales)
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information

The Abbeyfield Hoylake & West Kirby Society Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Lear House, 17 Darmonds Green, West Kirby, Wirral, CH48 5DT.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Income and expenditure

Income and expenses are included in the financial statements as they become receivable or due.

1.3
Tangible fixed assets

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

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

Land and buildings
100 years but see below
Land and buildings Leasehold
all land - nil
Fixtures, fittings & equipment
20% and 30% reducing balance

Freehold land is not depreciated on account of its indefinite useful life.

 

Financial Reporting Standard 102 states that all assets must be depreciated. The depreciable amount of an asset is calculated as cost less residual value. Under FRS 102 residual values are based on the price which an entity would currently obtain if it were to dispose of the asset less the estimated costs of disposal. The Committee have reviewed the policy on depreciation and consider that the current residual value of the properties is in excess of the costs and as such a provision for depreciation is not required.

THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -

Housing properties acquired (including land) on the open market are stated at cost less depreciation and impairment where applicable.

 

The cost of housing freehold land and property represents their purchase price and any directly attributable costs of acquisition. All invoices and architect's certificates relating to capital expenditure are included in the financial statements at the gross value provided that the expenditure incurred on the architect's certificates was completed by the end of the accounting year.

 

Directly attributable costs of construction includes capitalised interest calculated, on a proportional basis, using finance costs on borrowing which has been drawn in order to finance the relevant construction or acquisition.

 

Expenditure on major refurbishment to properties is capitalised where the works increase the net rental stream over the life of the property. An increase in the net rental stream may arise through an increase in the net rental income, a reduction in future maintenance costs, or a subsequent extension in the life of the property.

 

All other repair and replacement expenditure is charged to the Statement of Income.

1.4
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are

subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.5
Impairment of fixed assets

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

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

 

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

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

1.6
Cash and cash equivalents

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

THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.7
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, less any impairment.

 

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

1.8
Taxation

The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.

1.9
Employee benefits

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

 

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

 

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

1.10
Retirement benefits

The Society operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable. The assets of the scheme are held separately from those of the Society in an independently administered fund.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

1.12
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.13

Repayable/recyclable capital grants

On the occurrence of certain relevant events, primarily change of use or the sale of dwellings, Homes England can direct the Society to recycle capital grants or to make repayments of the recoverable amount. Such amounts are disclosed in the balance sheet under "creditors due within one year".

1.14

Monetary donations

Income from donations and legacies is accounted for on a receivable basis when it is more likely than not that the economic benefits will flow to the Society and the amount of the income can be measured reliably.

1.15

Cash flows

The Society has taken advantage of the disclosure exemption in FRS 102 not to prepare a cash flow statement.

2
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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

3
Income from residential charges
2024
2023
Potential residential income
1,326,441
1,213,500
Losses arising from vacancies etc.
(73,152)
(58,561)
1,253,290
1,154,939

Whilst pursuing the plans to amalgamate Elliot House with Lear House, as mentioned in the Executive Committee's Report, the Trustees have decided not to use the rooms within Elliot House for the foreseeable future. The potential residential income, as stated above, does not include income from these rooms. The units in management, disclosed in Note 11, do include these rooms as they are registered with CQC.

4
Operating surplus
2024
2023
Operating surplus for the year is stated after charging/(crediting):
£
£
Government grants (see note 11)
91,866
(2,825)
Fees payable to the company's auditor for the audit of the company's financial statements
7,200
6,240
Depreciation of owned tangible fixed assets
11,811
10,590
Loss on disposal of tangible fixed assets
840
2,711
Operating lease charges
19,296
23,286
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
5
Employees

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

2024
2023
Number
Number
Housing, support and care
33
34
Administration
5
5
38
39

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
702,472
662,249
Social security costs
52,630
47,150
Pension costs
11,540
11,211
766,642
720,610
Redundancy payments made or committed
-
-
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2023
2,043,037
110,664
2,153,701
Additions
-
0
1,020
1,020
Disposals
-
0
(41,734)
(41,734)
At 31 March 2024
2,043,037
69,950
2,112,987
Depreciation and impairment
At 1 April 2023
-
0
70,909
70,909
Depreciation charged in the year
-
0
11,811
11,811
Eliminated in respect of disposals
-
0
(40,895)
(40,895)
At 31 March 2024
-
0
41,825
41,825
Carrying amount
At 31 March 2024
2,043,037
28,125
2,071,162
At 31 March 2023
2,043,037
39,755
2,082,792
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
7
Fixed asset investments
2024
2023
£
£
Investments
1,013,751
954,423
Fixed asset investments revalued

The listed investments are included in the financial statements at market value. The investment portfolio is managed by Rathbones Investment Management. The portfolio has been constructed in accordance with the Trustees' instructions regarding investment objectives and risk level. At the year end the cost of the investments was £985,928 (2023 £973,338).

Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2023
954,423
Additions
134,860
Valuation changes
34,658
Disposals
(116,194)
Movement on income and capital accounts
6,004
At 31 March 2024
1,013,751
Carrying amount
At 31 March 2024
1,013,751
At 31 March 2023
954,423
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Rent outstanding
14,214
1,844
Other debtors
121,521
29,412
135,735
31,256
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
9
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Homes England grant repayable
10
234,540
-
0
Trade creditors
39,333
19,752
Taxation and social security
12,709
9,990
Government grants
10
-
0
2,345
Other creditors
14,268
6,658
Accruals and deferred income
11,368
9,142
312,218
47,887
10
Repayable/recyclable capital grant

As a result of discussions with Homes England the Society has been directed to repay social housing grants totalling £234,540. The grants were received in the 1980's for social housing accommodation which the Society no longer operates.

 

In accordance with accounting polices the Society has accounted for the grants as deferred income in the balance sheet and released it to income on a systematic basis over the useful life of the property for which the grant was received.

 

In order to disclose the correct grant repayable the proportion of the grant previously shown as deferred income, £2,345 and £140,329 (see note 11) has been transferred to other creditors. In addition the grant previously released to income (£91,866 - see note 4) has been shown as an expense in the statement of income and retained earnings and also shown in other creditors.

11
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
-
0
140,329

In accordance with the requirements of FRS 102 grants received from Homes England (previously the Homes and Communities Agency) are held within creditors as deferred grants and amortised over the useful life of the properties. Also see note 10 above.

 

12
Housing stock
2024
2023
Housing accommodation - number of bed spaces
Units under development
-
-
Units in management
33
33
THE ABBEYFIELD HOYLAKE & WEST KIRBY SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
13
Members' liability

The Society is a company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

 

The members of the Society are the Executive Committee and the sub-committees. The total number of members at 31 March 2024 was 6 (2023 - 6)

14
Related party transactions

None of the members of the Society (or any persons connected with them) received any remuneration, expenses or benefits during the year (2023 none).

15
Operating lease commitments
Lessee

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

2024
2023
£
£
122,139
67,129
16
Capital commitments

There were no financial committments at the year end (2023 nil).

17
Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to assist with the preparation of the financial statements.

 

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