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Registered number: 12285543












MEKV NEWCO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

 

MEKV NEWCO LIMITED

CONTENTS



Page
Company information
 
1
Group strategic report
 
2 - 3
Directors' report
 
4
Directors' responsibilities statement
 
5
Independent auditor's report
 
6 - 9
Consolidated profit and loss account
 
10
Consolidated balance sheet
 
11
Company balance sheet
 
12
Consolidated statement of changes in equity
 
13
Company statement of changes in equity
 
14
Consolidated statement of cash flows
 
15
Notes to the financial statements
 
16 - 31


 

MEKV NEWCO LIMITED
 
COMPANY INFORMATION


Directors
M Esmail 
K Velji 




Registered number
12285543



Registered office
253 Hertford Road
Enfield

Middlesex

EN3 5JL




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

MEKV NEWCO LIMITED
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Principal activity
 
The principal activity of the group continues to be that of operating residential and nursing homes.

Review of business and key performance indicators
 
The directors are committed to maintaining an excellent reputation for providing high standards of care and comfort to residents. To achieve this, they have continued to ensure that appropriate measures are in place including staff development, deploying recommended practice policies and procedures and maintain the care homes to a high standard. The directors are pleased that their efforts continue to be reflected in the overall positive results achieved from the inspections conducted by the Care Quality Commission (CQC).
The financial results for the year ended 30 June 2024 continue to positively reflect the efforts and investment undertaken. The key financial highlights of the group are: 

2024
2023
        £
        £
Turnover

9,512,707

8,285,492
 
Gross profit

2,717,388

1,985,950
 
Profit after tax

1,540,496

821,231
 
Net current assets

12,861,532

11,183,784
 
Net assets

15,193,900

13,653,404
 

The rise in net assets is principally due to the increase in net cash, revenue and interest earned during the year.
The directors view the future positively despite on-going economic and financial uncertainties and consider that the financial results will allow the group to provide a high standard of care and comfort to our residents. 

Principal risks and uncertainties
 
The directors have established key procedures and reporting structures to meet the particular needs of the group
and to manage risks it is exposed to. In particular: 
Key regulatory obligations are closely managed to ensure compliance, thereby ensuring the health, safety and well-being of our residents and staff. 
The group remains vigilant on its debt collecting and cost management processes in order to maintain financial stability.

Employee involvement
 
The group places considerable value on the involvement of its employees and continues to consult them on matters likely to affect their interests. Training programmes are offered as part of their development and to help them meet high professional standards in the delivery of care to residents in a safe manner.
There is no employee share scheme at present. 

Disabled employees
 
The group has continued its policy regarding the employment of disabled persons. Full and fair consideration is given to applications for employment made by disabled persons having regard to their particular aptitude and abilities. Appropriate arrangements are made, wherever possible, for retraining employees who become disabled, to ensure their employment with the group continues.

Page 2

 

MEKV NEWCO LIMITED

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


This report was approved by the board and signed on its behalf.



M Esmail
Director

Date: 1 November 2024

Page 3

 

MEKV NEWCO LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Results and dividends

The profit for the year, after taxation, amounted to £1,540,496 (2023 - £821,231).

The directors do not recommend a dividend for 2024 (2023: £Nil).

Directors

The directors who served during the year were:

M Esmail 
K Velji 

Matters covered in the Group strategic report

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

Post balance sheet events

Subsequent to the year end, the company received a dividend from its subsidiary of £9,000,000.

This report was approved by the board and signed on its behalf.
 





M Esmail
Director

Date: 1 November 2024

Page 4

 

MEKV NEWCO LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

The directors are responsible for preparing the group strategic report, the directors' report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the group's financial statements and then 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;

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

The directors are 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 the group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

 

MEKV NEWCO LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MEKV NEWCO LIMITED
 FOR THE YEAR ENDED 30 JUNE 2024

Opinion


We have audited the financial statements of MEKV Newco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024, which comprise the consolidated profit and loss account, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows, the consolidated statement of changes in equity, the company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 of the parent company's affairs as at 30 June 2024 and of the group's 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 6

 

MEKV NEWCO LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MEKV NEWCO LIMITED (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Other information


The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual reportOur 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.


Opinion on other matters 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 group strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the directors' report.


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


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 directors
 

As explained more fully in the directors' responsibilities statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 7

 

MEKV NEWCO LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MEKV NEWCO LIMITED (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the care home sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the  financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and  regulations.

To address the risk of fraud through management bias and override of controls, we:
 
performed analytical procedures to identify any unusual or unexpected relationships; 
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were
indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation; and
enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 
Page 8

 

MEKV NEWCO LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MEKV NEWCO LIMITED (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 


A further description of our responsibilities for the audit of the financial statements is located 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 2006Our 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.





James Rimell (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

6 November 2024
Page 9

 

MEKV NEWCO LIMITED
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 3 
9,512,707
8,285,492

Cost of sales
  
(6,795,319)
(6,299,542)

Gross profit
  
2,717,388
1,985,950

Administrative expenses
  
(1,093,220)
(1,067,415)

Other operating income
 4 
-
3,045

Operating profit
 5 
1,624,168
921,580

Interest receivable and similar income
 7 
473,448
153,016

Interest payable and similar expenses
 8 
-
(78)

Profit before tax
  
2,097,616
1,074,518

Tax on profit
 9 
(557,120)
(253,287)

Profit for the financial year
  
1,540,496
821,231

Profit for the year attributable to:
  

Owners of the parent
  
1,540,496
821,231

  
1,540,496
821,231

There are no items of other comprehensive income for 2024 or 2023 other than the profit for the yearAs a result, no separate Statement of comprehensive income has been presented.

Page 10


 
REGISTERED NUMBER:12285543
MEKV NEWCO LIMITED

CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
2,334,350
2,471,602

  
2,334,350
2,471,602

Current assets
  

Stocks
 13 
5,000
5,000

Debtors: amounts falling due within one year
 14 
3,028,911
2,935,272

Cash at bank and in hand
 15 
10,792,526
8,866,615

  
13,826,437
11,806,887

Creditors: amounts falling due within one year
 16 
(964,905)
(623,103)

Net current assets
  
 
 
12,861,532
 
 
11,183,784

Total assets less current liabilities
  
15,195,882
13,655,386

Provisions for liabilities
  

Deferred taxation
 17 
(1,982)
(1,982)

  
 
 
(1,982)
 
 
(1,982)

Net assets
  
15,193,900
13,653,404


Capital and reserves
  

Called up share capital 
 18 
100
100

Capital redemption reserve
 19 
239,020
239,020

Merger reserve
 19 
20,000
20,000

Profit and loss account
 19 
14,934,780
13,394,284

Equity attributable to owners of the parent company
  
15,193,900
13,653,404

Total equity
  
15,193,900
13,653,404


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



M Esmail
Director

Date: 1 November 2024

The notes on pages 16 to 31 form part of these financial statements.

Page 11


 
REGISTERED NUMBER:12285543
MEKV NEWCO LIMITED

COMPANY BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

  

Current assets
  

Debtors: amounts falling due within one year
 14 
2,528,648
2,487,133

Cash at bank and in hand
 15 
5,225,111
-

  
7,753,759
2,487,133

Creditors: amounts falling due within one year
 16 
(5,225,667)
(36,631)

Net current assets
  
 
 
2,528,092
 
 
2,450,502

Total assets less current liabilities
  
2,528,092
2,450,502

  

  

Net assets excluding pension asset
  
2,528,092
2,450,502

Net assets
  
2,528,092
2,450,502


Capital and reserves
  

Called up share capital 
 18 
100
100

Profit and loss account brought forward
  
2,450,402
2,424,545

Profit for the year
  
77,590
25,857

Profit and loss account carried forward
  
2,527,992
2,450,402

Total equity
  
2,528,092
2,450,502


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


M Esmail
Director

Date: 1 November 2024

The notes on pages 16 to 31 form part of these financial statements.

Page 12

 

MEKV NEWCO LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Capital redemption reserve
Merger reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 July 2022
100
239,020
20,000
12,573,053
12,832,173


Comprehensive income for the year

Profit for the year
-
-
-
821,231
821,231



At 1 July 2023
100
239,020
20,000
13,394,284
13,653,404


Comprehensive income for the year

Profit for the year
-
-
-
1,540,496
1,540,496


At 30 June 2024
100
239,020
20,000
14,934,780
15,193,900


The notes on pages 16 to 31 form part of these financial statements.

Page 13

 

MEKV NEWCO LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2022
100
2,424,545
2,424,645


Comprehensive income for the year

Profit for the year
-
25,857
25,857



At 1 July 2023
100
2,450,402
2,450,502


Comprehensive income for the year

Profit for the year
-
77,590
77,590


At 30 June 2024
100
2,527,992
2,528,092


The notes on pages 16 to 31 form part of these financial statements.

Page 14

 

MEKV NEWCO LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,540,496
821,231

Adjustments for:

Depreciation of tangible assets
137,252
169,957

Interest paid
-
78

Interest received
(473,448)
(153,016)

Taxation charge
557,120
253,287

(Increase) in debtors
(164,551)
(102,157)

Increase in creditors
78,790
32,591

Corporation tax (paid)
(294,108)
(137,331)

Net cash generated from operating activities

1,381,551
884,640


Cash flows from investing activities

Interest received
544,360
82,104

Net cash from investing activities

544,360
82,104

Cash flows from financing activities

Interest paid
-
(78)

Net cash used in financing activities
-
(78)

Net increase in cash and cash equivalents
1,925,911
966,666

Cash and cash equivalents at beginning of year
8,866,615
7,899,949

Cash and cash equivalents at the end of year
10,792,526
8,866,615


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
10,792,526
8,866,615

10,792,526
8,866,615


Page 15

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

MEKV Newco Limited is a private company limited by shares and incorporated in England and Wales. Its registered office and principal place of business is 253 Hertford Road, Enfield, Middlesex, EN3 5JL.
The principal activity of the company and group is the operation of residential and nursing homes.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102:
• the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
• the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48A;
• the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29;
• the requirements of Section 33 Related Party Disclosures paragraph 33.7.
The company is included in the consolidated financial statements of MEKV Newco Limited as at 30 June 2023 and these financial statements may be obtained from its registered office at 253 Hertford Road, Enfield, Middlesex, EN3 5JL.

 
2.3

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 16

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the consolidated profit and loss account in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.

Page 17

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
 
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 18

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Freehold land and buildings acquired before 1 April 2000 are stated at deemed cost based on the revalued amounts under previous UK GAAP less accumulated depreciation and any accumulated impairment losses. Under previous UK GAAP, freehold land and buildings had been included in the balance sheet at their carrying value on 31 March 2000, when the company implemented FRS 15 for the first time, which reflects previous revaluations on 31 March 1987. Freehold land and buildings acquired after 1 April 2000 and other tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following basis.


Freehold property
-
4% straight line
Plant and machinery
-
30% reducing balance
Motor vehicles
-
20% reducing balance
Fixtures and fittings
-
30% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

  
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 19

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.

 
2.14

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

  
2.15

Financial instruments

The group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the group becomes party to the contractual provisions of the instrument. 
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. 
The group’s policies for its major classes of financial assets and financial liabilities are set out below. 
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, loans from fellow group 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Page 20

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

  

Financial instruments (continued)

Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the group would receive for the asset if it were to be sold at the reporting date. 
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

  
2.16

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.


3.


Turnover

The turnover and profit before tax are attributable to the principal activity of the group.

All turnover arose within the United Kingdom.

Page 21

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

4.


Other operating income

2024
2023
£
£

Infection control grants
-
3,045


The infection control grants were received to facilitate the changes made to operations and fixtures and fittings within the home, to minimise Covid-19 transmission, ensuring that the company's care home is operated in a COVID secure way for the benefit of its employees, the residents and their families.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
137,251
169,957

Defined contribution pension cost
98,060
88,168

Fees payable to the group's auditor for the audit of the group's annual 
financial statements
30,000
27,500

Fees payable to the group's auditor for taxation compliance services
10,500
11,886

Fees payable to the group's auditor for other services
16,819
11,805

Fees payable to the company's auditor is £6,000 (2023: £5,000) in respect of the audit of the financial statements.

Page 22

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

6.


Employees

Staff costs were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
5,543,062
5,105,827

Social security costs
478,248
433,243

Cost of defined contribution scheme
98,060
88,168

6,119,370
5,627,238


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administration staff
7
7



Care staff
242
241

249
248

Key management personnel remuneration
The remuneration paid to key management personnel during the year was £408,720 (2023: £395,486).
Directors' remuneration during the year was £nil (2023: £nil).
The company has no employees other than the directors, who did not receive any remuneration (2023 - £Nil).


7.


Interest receivable

2024
2023
£
£


Other interest receivable
473,448
153,016


8.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
-
78

Page 23

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
557,120
253,287


Total current tax
557,120
253,287

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 20.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,097,616
1,074,518


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.5%)
524,404
220,276

Effects of:


Capital allowances for year in excess of depreciation
32,716
33,202

Marginal relief
-
(191)

Total tax charge for the year
557,120
253,287

Page 24

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Intangible assets

Group





Goodwill on consolidation
Goodwill
Total

£
£
£



Cost


At 1 July 2023
1,501,585
229,999
1,731,584



At 30 June 2024

1,501,585
229,999
1,731,584



Amortisation


At 1 July 2023
1,501,585
229,999
1,731,584



At 30 June 2024

1,501,585
229,999
1,731,584



Net book value



At 30 June 2024
-
-
-



At 30 June 2023
-
-
-



Page 25

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

11.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 July 2023
5,369,164
294,179
4,295
1,470,472
7,138,110



At 30 June 2024

5,369,164
294,179
4,295
1,470,472
7,138,110



Depreciation


At 1 July 2023
2,926,073
281,156
1,546
1,457,733
4,666,508


Charge for the year
128,974
3,907
550
3,821
137,252



At 30 June 2024

3,055,047
285,063
2,096
1,461,554
4,803,760



Net book value



At 30 June 2024
2,314,117
9,116
2,199
8,918
2,334,350



At 30 June 2023
2,443,091
13,023
2,749
12,739
2,471,602




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
2,314,117
2,443,091


Certain freehold properties are stated at deemed cost based on the revalued amounts under UK GAAP where they had been included in the balance sheet at their carrying value on 31 March 2000 when the company implemented FRS 15 "Tangible Fixed Assets" for the first time, reflecting previous valuations on 31 March 1987.

Page 26

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

12.


Fixed asset investments

Company





Investments in subsidiary companies

£



At 1 July 2023






Net book value



At 30 June 2024
-



At 30 June 2023
-


13.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Consumables
5,000
5,000
-
-



14.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
464,143
346,183
-
-

Other debtors
2,532,457
2,488,482
2,528,648
2,487,133

Prepayments and accrued income
32,311
100,607
-
-

3,028,911
2,935,272
2,528,648
2,487,133



15.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
10,792,526
8,866,615
5,225,111
-

10,792,526
8,866,615
5,225,111
-


Page 27

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

16.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
172,846
87,830
8,400
-

Amounts owed to group undertakings
-
-
5,183,403
10,181

Corporation tax
452,603
189,591
25,864
20,130

Other taxation and social security
119,007
108,467
-
-

Other creditors
6,700
37,387
-
-

Accruals and deferred income
213,749
199,828
8,000
6,320

964,905
623,103
5,225,667
36,631


Amounts owed to group undertakings are interest free, have no fixed repayment date and are repayable on demand. 


17.


Deferred taxation


Group



2024


£






At beginning of year
(1,982)



At end of year
(1,982)

Company


2024






At end of year
-
The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
(1,982)
(1,982)

(1,982)
(1,982)

Page 28

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



10,002 (2023 - 10,002) Ordinary shares of £0.01 each
100
100



19.


Reserves

Capital redemption reserve

The capital redemption reserve relates to previously issued preference shares redeemed by the company.

Merger Reserve

The merger reserve relates to the business combination that occurred in the prior year.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

20.


Analysis of net debt




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

8,866,615

1,925,911

10,792,526


8,866,615
1,925,911
10,792,526

Page 29

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

21.
Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures"  from disclosing transactions with entities which are a wholly owned part of the group.

Transactions with other related parties are as follows:




Relationship

Transaction

Amount
Amount due (to)/from related parties




2024
 
2023 
2024 
2023 




£
 
£ 
£ 
£ 



Esmail & Velji dental practice (common control)
Petty cash advance
259
12,289
(3,829)
(4,088)



Directors
Directors' loan 
-
40,602
1,845,117
1,845,117


Interest on loans 
41,515
41,515
83,030
41,515



Related party transactions (continued)
Amounts owed to related parties are unsecured, interest free and due for repayment within one year.
Amount due from the directors are unsecured, have no fixed repayment date and interest is charged at 2.25% p.a.

22.


Post balance sheet events

Subsequent to the year end, the company received a dividend from its subsidiary of £9,000,000.


23.


Controlling party

In the opinion of the directors there is no ultimate controlling party.


24.



Subsidiary undertaking



Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the company:

Name

Registered office

Principal activity

Class of shares

Holding

Millennium Care Homes Limited
253 Hertford Road, Enfield, Middlesex, EN3 5JL
Nursing home provider
Ordinary
100%

Page 30

 

MEKV NEWCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

24.Subsidiary undertaking (continued)


Indirect subsidiary undertaking


The following was an indirect subsidiary undertaking of the company:

Name

Registered office

Principal activity

Class of shares

Holding

Lansglade Homes Limited
253 Hertford Road, Enfield, Middlesex, EN3 5JL
Nursing and residential care home provider
Ordinary
100%

 
Page 31