Company registration number 02278691 (England and Wales)
ONETREE ESTATES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
ONETREE ESTATES LIMITED
COMPANY INFORMATION
Director
Mr R Patel
Secretary
Mrs D Patel
Company number
02278691
Registered office
9 Spareleaze Hill
Loughton
Essex
IG10 1BS
Auditor
Alwyns LLP
Crown House
151 High Road
Loughton
Essex
IG10 4LG
ONETREE ESTATES LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
ONETREE ESTATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The director presents the Annual Report for the year ended 30 April 2024.
Review of the business
The principal activity of the company continued to be that of the running of a care home.
Turnover increased by 27.2% from last year.
“Our care your happiness” remains the company’s overriding motto. Continued focus on customers’ needs is followed up by the highest quality of care and support across all activities. As always, the structure and scope of this care quality is constantly monitored by the company’s governance teams and home managers. Keeping in mind its corporate responsibility and sustainability, the company’s indicators have generally remained over and above regulatory, local authority, and NHS requirements.
The company is managed and remains a part of the banking arrangement with the larger Abbey Total Care Group. There is an appropriate risk management structure in place which is designed to identify, manage and mitigate business risk. The company’s continuous risk assessment and evaluation has ensured there are no matters that could have a material impact on its financial position.
As in previous years, the care home continues to be regulated by the Care Quality Commission (CQC), and is fully compliant with health and safety, labour, and employment laws. The company’s compliance performance compares favourably with other providers of a similar scale. The directors are committed to focusing on delivering organic growth by reinvesting profits each year.
The company considers its Key Performance Indicators to be the occupancy rate and average fee per bed which are continually being reviewed.
The movement of these KPI's compared to the previous year were as follows:-
Average occupancy rate - risen by 3.2%
Average fee per bed - risen by 23.3%
Principal risks
The company monitors and understands prevailing risk for its business and its balance sheet, and by assessing how they interact. By understanding these risks, it seeks appropriate opportunities for risk diversification and management. Local authorities and the NHS continue to restrict annual fee increments and have also lengthened payment periods. The group, of which the company is affiliated with, manages cashflow on a group basis and ensures there are adequate cash resources to deal with this. The company is confident of maintaining its growth momentum well into the foreseeable future.
The care market remains challenging, and the ravaging effects of the pandemic are not yet over. The recruitment of healthcare workers is an ongoing sector-wide issue, with rising inflation resulting in increasing costs for the businesses. The war in Ukraine also has some consequences, chiefly the rising food cost. The company is in a good position to adapt to the changing circumstances, keeping in mind their customers, the need for growth, and sustainability.
Mr R Patel
Director
13 November 2024
ONETREE ESTATES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Principal activities
The principal activity of the company continued to be that of running a care home.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £75,607. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr R Patel
Financial instruments
Treasury operations and financial instruments
The group's principal financial instruments are credit facilities and loans, the main purpose of which is to finance the group's operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to fair value interest rate risk on its borrowings and cashflow interest rate risk on bank overdrafts and loans. The risk has been partially mitigated with an interest rate cap over more than 50% of its bank debt. The Abbey Total Care Group including the company ensures sufficient cash resources are always maintained to mitigate its exposure to excessive interest rate increases.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Auditor
The auditor, Alwyns LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
ONETREE ESTATES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr R Patel
Director
13 November 2024
ONETREE ESTATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ONETREE ESTATES LIMITED
- 4 -
Opinion
We have audited the financial statements of Onetree Estates Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the 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 the director's report have been prepared in accordance with applicable legal requirements.
ONETREE ESTATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ONETREE ESTATES LIMITED
- 5 -
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 strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.
Audit procedures undertaken in responses to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claim; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As stated above, there is an unavoidable risk that material misstatements my not be detected, even though the audit have been planned and performed in accordance with ISAs (UK).
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.
ONETREE ESTATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ONETREE ESTATES LIMITED
- 6 -
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.
David Stanley
Senior Statutory Auditor
For and on behalf of Alwyns LLP
13 November 2024
Chartered Accountants
Statutory Auditor
Crown House
151 High Road
Loughton
Essex
IG10 4LG
ONETREE ESTATES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
7,542,845
5,929,355
Cost of sales
(4,149,234)
(3,615,444)
Gross profit
3,393,611
2,313,911
Administrative expenses
(712,485)
(531,547)
Other operating income
108,048
116,845
Operating profit
4
2,789,174
1,899,209
Interest payable and similar expenses
7
(61,992)
(59,079)
Profit before taxation
2,727,182
1,840,130
Tax on profit
8
(685,786)
(362,940)
Profit for the financial year
2,041,396
1,477,190
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ONETREE ESTATES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
£
£
Profit for the year
2,041,396
1,477,190
Other comprehensive income
Revaluation of tangible fixed assets
8,518,571
Tax relating to other comprehensive income
(2,129,002)
Total other comprehensive income for the year
6,389,569
Total comprehensive income for the year
2,041,396
7,866,759
ONETREE ESTATES LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
17,483,145
17,516,981
Current assets
Debtors
11
1,683,006
1,075,175
Cash at bank and in hand
130,959
2,431,332
1,813,965
3,506,507
Creditors: amounts falling due within one year
12
(1,433,939)
(5,126,106)
Net current assets/(liabilities)
380,026
(1,619,599)
Total assets less current liabilities
17,863,171
15,897,382
Provisions for liabilities
Deferred tax liability
13
2,773,497
2,773,497
(2,773,497)
(2,773,497)
Net assets
15,089,674
13,123,885
Capital and reserves
Called up share capital
15
100
100
Revaluation reserve
9,231,463
9,231,463
Profit and loss reserves
5,858,111
3,892,322
Total equity
15,089,674
13,123,885
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 13 November 2024
Mr R Patel
Director
Company registration number 02278691 (England and Wales)
ONETREE ESTATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
100
2,841,894
2,497,613
5,339,607
Year ended 30 April 2023:
Profit
-
-
1,477,190
1,477,190
Other comprehensive income:
Revaluation of tangible fixed assets
-
8,518,571
-
8,518,571
Tax relating to other comprehensive income
-
(2,129,002)
(2,129,002)
Total comprehensive income
-
6,389,569
1,477,190
7,866,759
Dividends
9
-
-
(82,481)
(82,481)
Balance at 30 April 2023
100
9,231,463
3,892,322
13,123,885
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
2,041,396
2,041,396
Dividends
9
-
-
(75,607)
(75,607)
Balance at 30 April 2024
100
9,231,463
5,858,111
15,089,674
ONETREE ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information
Onetree Estates Limited is a private company limited by shares incorporated in England and Wales. The registered office is 9 Spareleaze Hill, Loughton, Essex, IG10 1BS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest whole pound.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Estate Home Developments Limited. These consolidated financial statements are available from its registered office.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for services provided.
1.4
Tangible fixed assets
Tangible fixed assets other than freehold land and buildings are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Freehold land and buildings are stated at valuation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Equipment (short life)
over a period of 3 years
Fixtures, fittings & equipment
25% reducing balance
Integral features
10% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
ONETREE ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
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, amounts owed by group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
ONETREE ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
ONETREE ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.13
Government grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.
Tangible fixed assets (note 10)
Freehold land and buildings are reflected at fair value based upon a valuation from qualified surveyors. Calculation of the valuation requires judgements to be made and estimates based on information at the time of the valuation including the competitive and economic environment.
Trade debtors (note 11)
At each reporting date the company assesses whether there is any indication of the non recovery of trade debts. If any such indication exists a provision is recognised based on the director's estimate of amounts recoverable.
3
Turnover and other revenue
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
ONETREE ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(10,260)
Fees payable to the company's auditor for the audit of the company's financial statements
7,956
8,100
Depreciation of owned tangible fixed assets
60,058
63,965
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Resident welfare
111
109
Administration
4
5
Total
115
114
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,193,833
3,004,745
Social security costs
256,191
269,142
Pension costs
46,753
45,000
3,496,777
3,318,887
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
127,000
118,514
127,000
118,514
No director accrued pension benefits from the company in either year.
Only the directors are considered to be the key management.
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
61,992
59,079
ONETREE ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
685,786
362,807
Adjustments in respect of prior periods
133
Total current tax
685,786
362,940
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,727,182
1,840,130
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
681,796
358,825
Tax effect of expenses that are not deductible in determining taxable profit
129
Timing differences of capital allowances and depreciation
3,862
5,087
Enhanced capital allowances
(972)
Other tax adjustments
(1)
Taxation charge for the year
685,786
362,940
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
2,129,002
9
Dividends
2024
2023
£
£
Interim paid
75,607
82,481
ONETREE ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
10
Tangible fixed assets
Freehold land and buildings
Fixtures, fittings & equipment
Total
£
£
£
Cost or valuation
At 1 May 2023
17,103,928
1,563,627
18,667,555
Additions
26,222
26,222
At 30 April 2024
17,103,928
1,589,849
18,693,777
Depreciation and impairment
At 1 May 2023
1,150,574
1,150,574
Depreciation charged in the year
60,058
60,058
At 30 April 2024
1,210,632
1,210,632
Carrying amount
At 30 April 2024
17,103,928
379,217
17,483,145
At 30 April 2023
17,103,928
413,053
17,516,981
Land and buildings were revalued during the prior year based on a valuation concluded on 24 May 2023 by Knight Frank LLP, independent valuers not connected with the company, on the basis of market value as defined in the publication RICS Valuation - Global Standards, which incorporate the International Valuation Standards and the RICS UK National Supplement.
If freehold land and buildings were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2024
2023
£
£
Cost
5,172,423
5,172,423
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
619,760
641,557
Corporation tax recoverable
192,590
47,503
Amounts owed by group undertakings
6,334
300
Other debtors
796,864
147,099
Prepayments and accrued income
67,458
238,716
1,683,006
1,075,175
ONETREE ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
658,288
401,764
Amounts owed to group undertakings
81,100
Corporation tax
229,485
186,419
Other taxation and social security
135,119
184,838
Other creditors
396,460
3,980,135
Accruals and deferred income
14,587
291,850
1,433,939
5,126,106
13
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
73,455
73,455
Revaluation of freehold properties
2,700,042
2,700,042
2,773,497
2,773,497
There were no deferred tax movements in the year.
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
46,753
45,000
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
ONETREE ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
16
Financial commitments, guarantees and contingent liabilities
At the balance sheet date there were contingent liabilities in respect of a debenture and unlimited intercompany guarantees to secure the bank loan and overdraft facilities of Abbey Total Care Group Ltd of £39,169,830 by first legal charge over the assets of the company.
17
Related party transactions
During the year the company entered into transactions with related parties as follows:
2024
2023
£
£
Company controlled by a family member of the directors
Repairs and maintenance expenses
171,360
105,749
Interest expenses
61,992
59,079
2024
2023
£
£
Close family members of the directors
Remuneration expenses
199,105
198,000
At the year end the following balances were outstanding:
2024
2023
£
£
Amounts owed to group controlled by a family member of the directors
1,101,446
3,860,248
18
Directors' transactions
At the balance sheet date the directors owed the company £572,304 (2023 - £141,450) on no formal terms.
19
Ultimate controlling party
The immediate and ultimate parent company for both years was Estate Home Developments Ltd, which owns 100% of the share capital.
The ultimate controlling party in both years was Mr R Patel, by virtue of his majority shareholding in the parent company.
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