KEELEX 176 LIMITED
COMPANY INFORMATION
Directors
Mrs D Keely
Mr S Hopkins
Ms K Pankhurst
(Appointed 22 February 2024)
Company number
02839981
Registered office
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
Auditor
RRL LLP
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
KEELEX 176 LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 25
KEELEX 176 LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present the strategic report and financial statements for the year ended 31 March 2024.

Review of the business

Keelex 176 Limited’s mission is to become the provider of choice in Cornwall through providing high quality care, enabling the individuals we support to enjoy a quality lifestyle in beautiful environments.

Following a restructure Keelex 176 Limited commenced leasing of the care homes from Swallowcourt Property (Keelex 176) Limited in August 2023. The rent has been set at an aspirational price and is paid monthly.

Occupancy within the three homes remained steady through the year, however increased pressure from the local authority to reduce fees and an unacceptable amount of time to carry out reassessments for those whose care needs have increased had an impact on the wages percentage of turnover.

 

Key measures that demonstrate performance for the company (on an unconsolidated basis) are:

 

 

2024

£

2023

£

Turnover

3,648,880

3,166,909

Operating Profit

743,716

506,159

Transferred to profit and loss account

528,479

356,607

 

The directors view the results as satisfactory.

 

 

 

Principal risks and uncertainties

Recruiting skilled and dedicated employees within the health and social care sector remains a challenge. The recruitment gap is filled with agency workers in order to provide safe staffing levels. The last two quarters of the year the committed and highly capable HR and Training department ran a strong recruitment campaign resulting in a large increase in new starters, many from agency. The impact of the campaign will be seen in the first two quarters of 2024-25 as the recruitment, training and shadowing processes conclude. The offer in person and ‘on the job’ training, sets us apart from other employers. The range and depth of training offered results in a highly skilled workforce who are confident in their abilities and able to manage complex residents and provide the best possible care.

 

 

- 1 -
KEELEX 176 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial risk management objectives and policies

The nature of the operations exposes the organisation to a level of liquidity and cash flow risk, as changes in public sector processes and staff teams often result in payment delays. The company maintains a good relationship with funders to ensure issues are resolved at the earliest opportunity. To maintain parity in recruitment opportunities care fees will need to continue to be increased annually in line with Real Living Wage increases and inflation.

Supply and labour price risks are an expected outcome of the nature of the operations. The group has a dedicated Contracts and Estates team who monitor and review spending on a regular basis as well as carrying out reviews of the suppliers. The team are on good terms with suppliers and pay on time.

The budget assumed inflation higher than expected to ensure that where there are increases in prices these could be absorbed. Costs are closely monitored and therefore spending can be adjusted accordingly to negate any unexpected price increases.

Cash flow is monitored weekly, and we have alerts to ensure that any drop below our expected level is forecast in enough time to move or remove spending over which we have control.

Projects are planned around cash management and if there are any adjustments required project costs are moved accordingly.

This ensures our loan covenants are easily met. These are reviewed quarterly to reduce the risk of any credit issues.

Whilst we have significant loans, we can meet these repayments and the business would be able to sustain increases in inflation.

The Finance Team carry out a weekly review of cashflow and debtors as well as a monthly review of projected performance and spending alongside the Contracts and Estates Team.

Key performance indicators, both financial and non-financial, are used to monitor the business and regular quality reviews and improvement targets ensure continued focus on care delivery.

Budgets are set annually by the Senior Management Team with the direct involvement of Home Management Teams and other budget holders. These are approved by the Board of Directors.

Detailed monthly management accounts are prepared comparing actual performance to budget on both the monthly and year to date basis. The Senior Management Team meet regularly to monitor and analyse performance for the group as well as meeting with individual budget holders.

The Directors and Lenders receive and review the monthly Management Information.

Equality, Social and Governance developments.

There are a range of policies that set out expectations around equality and diversity including a zero-tolerance approach to discrimination, supportive and adaptive environments and identifies the processes through which this is implemented.

Employee Involvement

Staff are supported through a variety of measures including regular support meetings, appraisals, training support and the recent implementation of a focus on wellbeing.

Internal governance structures and reporting have been reviewed with an expectation that the new approach will give staff, residents and their communities greater opportunities to influence future organisational priorities.

The staff conference is an opportunity for staff to build an awareness on the part of all employees of the financial and economic factors affecting the group's performance and for their contribution to be recognised. This year’s conference focused on staff wellbeing.

- 2 -
KEELEX 176 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Future developments

Priorities for this year include implementing the overall governance structure. This includes a comprehensive suite of KPIs, and focused meetings to complete and review the reporting to the Operating Company Board. We continue to work closely with the ICB on provision of acute care services within the Swallowcourt homes working with the Care Home Support Team to enable clinical interventions within the care home setting.

Next year we look forward to implementing improved pain assessments using AI facial assessments, further training and development. We continue to identify and work towards our sustainability goals and the integration of our IT systems as well as enhancing and improving the environments for the residents.

On behalf of the board

Mrs D Keely
Director
12 September 2024
- 3 -
KEELEX 176 LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their report and financial statements for the year ended 31 March 2024.
Principal activities

Keelex 176 Limited operates 3 care homes providing up to 40 beds offering residential care for adults with learning disabilities in Station Villa, Breage and Cross Keys, also located in West Cornwall.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £250,000. The directors do not recommend payment of a final dividend.

Directors

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

Mrs D Keely
Mr S Hopkins
Ms K Pankhurst
(Appointed 22 February 2024)
Auditor
The auditor, RRL LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.

On behalf of the board
Mrs D Keely
Director
12 September 2024
- 4 -
KEELEX 176 LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

The directors are responsible for preparing the annual report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

- 5 -
KEELEX 176 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEELEX 176 LIMITED
Opinion
- 6 -

We have audited the financial statements of Keelex 176 Limited (the 'company') for the year ended 31 March 2024 which comprise 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:

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 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 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:

KEELEX 176 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEELEX 176 LIMITED (CONTINUED)
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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 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.

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.

 

As part of our audit work, we obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the laws and regulations most significant to the company, as well as the laws and regulations that have a direct impact on the preparation of the financial statements are: the Companies Act.

 

The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

 

- 7 -
KEELEX 176 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEELEX 176 LIMITED (CONTINUED)

 

We also communicate relevant identified laws and regulations and potential fraud risk to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Our audit approach also considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud being in respect of cut off and completion risk around revenue recognition.  Under ISA (UK) we are also required to undertake procedures to respond to the risk of management override of controls.  Our procedures included the following:

 

 

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 regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. 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 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.

- 8 -
KEELEX 176 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEELEX 176 LIMITED (CONTINUED)
Josh Stevens ACA
Senior Statutory Auditor
For and on behalf of RRL LLP
24 September 2024
Chartered Accountants
Statutory Auditor
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
- 9 -
KEELEX 176 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
2024
2023
Notes
£
£
Turnover
3
3,648,880
3,166,909
Cost of sales
(2,180,984)
(2,176,521)
Gross profit
1,467,896
990,388
Administrative expenses
(731,594)
(498,671)
Other operating income
7,414
14,442
Operating profit
4
743,716
506,159
Interest receivable and similar income
7
3,110
-
0
Interest payable and similar expenses
8
(42,298)
(70,736)
Profit before taxation
704,528
435,423
Tax on profit
9
(176,049)
(78,816)
Profit for the financial year
528,479
356,607
Other comprehensive income
Tax relating to other comprehensive income
365,867
-
0
Total comprehensive income for the year
894,346
356,607

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

- 10 -
KEELEX 176 LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
102,279
4,891,586
Current assets
Stocks
13
10,583
8,400
Debtors
14
925,767
2,322,481
Cash at bank and in hand
249,224
532,813
1,185,574
2,863,694
Creditors: amounts falling due within one year
15
(575,864)
(554,444)
Net current assets
609,710
2,309,250
Total assets less current liabilities
711,989
7,200,836
Creditors: amounts falling due after more than one year
16
-
0
(1,484,876)
Provisions for liabilities
Deferred tax liability
18
1,400
368,800
(1,400)
(368,800)
Net assets
710,589
5,347,160
Capital and reserves
Called up share capital
21
2
2
Revaluation reserve
-
0
1,297,461
Profit and loss reserves
710,587
4,049,697
Total equity
710,589
5,347,160
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
Mrs D Keely
Director
Company registration number 02839981 (England and Wales)
- 11 -
KEELEX 176 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
2
1,297,461
3,693,090
4,990,553
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
356,607
356,607
Balance at 31 March 2023
2
1,297,461
4,049,697
5,347,160
Year ended 31 March 2024:
Profit
-
-
528,479
528,479
Other comprehensive income:
Tax relating to other comprehensive income
-
365,867
-
0
365,867
Total comprehensive income
-
365,867
528,479
894,346
Dividends
10
-
-
(250,000)
(250,000)
Transfers
-
(1,663,328)
1,663,328
-
Other movements
-
-
(5,280,917)
(5,280,917)
Balance at 31 March 2024
2
-
0
710,587
710,589
- 12 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
Company information

Keelex 176 Limited is a private company limited by shares incorporated in England and Wales. The registered office is Peat House, Newham Road, TRURO, Cornwall, TR1 2DP.

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 £.

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:

 

The company's accounts are included within the consolidated accounts of its parent company Swallowcourt Holdings Limited which can be obtained from its registered office.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for care services provided in the normal course of business. Turnover is recognised when the company obtains the right to consideration as the services provided under contracts have been delivered. Where payments are received from residents in advance of services provided, the amounts are recorded as deferred income.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

- 13 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
1.5
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:

Freehold land and buildings
2% per annum
Plant and machinery
5%-33% per annum
Fixtures, fittings & equipment
15% per annum
Motor vehicles
20% per annum

Freehold land is not depreciated.

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 credited or charged to profit or loss.

1.6
Impairment of fixed assets
- 14 -

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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 profit or loss, 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 profit or loss, 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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
1.8
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.

1.9
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 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, including investments in equity instruments which are not subsidiaries, associates or joint ventures, 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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

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.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

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.

- 15 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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 through 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.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

- 16 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

 

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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.

1.15
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.

 

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.

- 17 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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.

 

There are no key estimates or judgements which would have a material impact on the accounts.

 

 

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Services rendered
3,648,880
3,166,909
2024
2023
£
£
Other revenue
Interest income
3,110
-
Grants received
7,414
14,442
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(7,414)
(14,442)
Fees payable to the company's auditor for the audit of the company's financial statements
6,600
6,500
Depreciation of owned tangible fixed assets
42,293
49,727
Operating lease charges
262,749
7,358
Government grant income consists of receipts regarding Infection Control Grants recognised in income when the performance conditions have been met, in accordance with the accounting policy.
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
6,600
6,500
- 18 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees

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

2024
2023
Number
Number
Employees
76
92

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,785,946
1,859,880
Social security costs
133,192
115,620
Pension costs
30,855
27,169
1,949,993
2,002,669
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
3,110
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
42,298
70,736
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
81,771
40,548
Group tax relief
95,811
41,568
Total current tax
177,582
82,116
Deferred tax
Origination and reversal of timing differences
(1,533)
(3,300)
Total tax charge
176,049
78,816
- 19 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
(Continued)

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
704,528
435,423
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
176,132
82,730
Tax effect of expenses that are not deductible in determining taxable profit
(1,020)
44
Tax effect of income not taxable in determining taxable profit
-
0
(2,744)
Deferred tax (credit)/charge for year
(1,533)
(3,300)
Depreciation in excess of capital allowances
2,470
2,086
Taxation charge for the year
176,049
78,816

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
(365,867)
-
10
Dividends
2024
2023
£
£
Interim paid
250,000
-
0
11
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
15,000
Amortisation and impairment
At 1 April 2023 and 31 March 2024
15,000
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
- 20 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023
4,770,000
622,846
288,383
7,701
5,688,930
Additions
-
0
4,572
18,414
-
0
22,986
Disposals
(4,770,000)
(719)
-
0
-
0
(4,770,719)
At 31 March 2024
-
0
626,699
306,797
7,701
941,197
Depreciation and impairment
At 1 April 2023
-
0
534,925
255,621
6,798
797,344
Depreciation charged in the year
-
0
31,638
9,752
903
42,293
Eliminated in respect of disposals
-
0
(719)
-
0
-
0
(719)
At 31 March 2024
-
0
565,844
265,373
7,701
838,918
Carrying amount
At 31 March 2024
-
0
60,855
41,424
-
0
102,279
At 31 March 2023
4,770,000
87,921
32,762
903
4,891,586

All fixed assets have been pledged to secure borrowings of group companies.

The revaluation of freehold land and buildings was carried out by Christie & Co., Surveyors and Valuers as at 3 August 2021 and is based on an open market value. The valuation brought forward as at 31 March 2023 is as per the directors. The properties were transferred to another group company during the year as part of the group reorganisation.

If revalued assets were measured using the cost model, the carrying amounts would have been as follows:

2024
2023
£
£
Cost
-
3,169,439
13
Stocks
2024
2023
£
£
Raw materials and consumables
10,583
8,400
- 21 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
250,178
209,743
Amounts owed by group undertakings
598,736
2,090,058
Prepayments and accrued income
76,853
22,680
925,767
2,322,481
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
-
0
126,370
Trade creditors
131,013
139,187
Corporation tax
81,771
(23,495)
Other taxation and social security
52,045
39,563
Government grants
19
4,967
12,382
Other creditors
119,279
101,169
Accruals and deferred income
186,789
159,268
575,864
554,444
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
-
0
1,484,876
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
979,397
17
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
1,611,246
Payable within one year
-
0
126,370
Payable after one year
-
0
1,484,876

The bank loans were secured by a fixed charge over the freehold property, and a floating charge over the remaining assets, and an unlimited cross guarantee over the assets of Swallowcourt Limited.

- 22 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Loans and overdrafts
(Continued)

The bank loans carry interest at rate of 2% above the bank rate per annum.

 

The bank loans were repaid during the year as part of the group reorganisation.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,400
65,700
Revaluations
-
303,100
1,400
368,800
2024
Movements in the year:
£
Liability at 1 April 2023
368,800
Credit to profit and loss
(1,533)
Transfer on disposal
(365,867)
Liability at 31 March 2024
1,400
19
Government grants
2024
2023
£
£
Arising from government grants
4,967
12,382

Deferred grants consist of Infection Control Grants received from Cornwall Council.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,855
27,169

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.

- 23 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2

The company has one class of ordinary shares which carries no right to fixed income.

22
Financial commitments, guarantees and contingent liabilities

An unlimited cross guarantee is in place over assets owned by Keelex 176 Limited to secure the indebtedness of other group undertakings to the company's bankers. At 31 March 2024 that company's indebtedness was £4,426,492 (2023: £2,857,777).

23
Operating lease commitments
Lessee

Operating lease commitments for the year to 31 March 2024 include 30 year leases which commenced in 2023.

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

2024
2023
£
£
Within one year
422,710
15,527
Between two and five years
1,636,850
17,335
In over five years
9,821,250
-
0
11,880,810
32,862
24
Ultimate controlling party

The company's ultimate parent is Swallowcourt Holdings Limited, a company registered in England and Wales and whose registered office is Peat House, Newham Road, Truro, Cornwall, TR1 2DP.

The parent company was Swallowcourt Limited until December 2023 when a group reconstruction occurred and the parent company is now Swallowcourt Trading Holdco Limited. Both companies are registered in England and Wales and their registered offices are Peat House, Newham Road, Truro, Cornwall, TR1 2DP.

 

The ultimate controlling party is Mrs D Keely.

25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is charged to the company's fellow group member, Swallowcourt Limited.

- 24 -
KEELEX 176 LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
26
Auditor's liability limitation agreement

For the year ended 31 March 2024, the company entered into a liability limitation agreement with its auditors, the principal terms of which limit the liability of the auditors to £5,000,000 to relation to their responsibilities as auditors of the company. The date of this agreement was 5 June 2024.

- 25 -
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