Company registration number 08682094 (England and Wales)
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
COMPANY INFORMATION
Directors
Councillor L Williams
Councillor JE Fletcher
Mr DA Lough
Mr G King
Councillor A Smith
(Appointed 15 November 2023)
Secretary
Mr PM Melia
Company number
08682094
Registered office
City Hall
Plater Way
Sunderland
Tyne and Wear
England
SR1 3AA
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
Bankers
National Westminster Bank Plc
52 Fawcett Street
Sunderland
Tyne and Wear
SR1 1SB
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 21
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

 

The principal activities of the Company and its Operational Company (Sunderland Care and Support Limited) are those of providing social care services within Sunderland. The group commenced trading on 1 December 2013 and was formed as a Local Authority Trading Company (LATC) which is 100% owned by Sunderland City Council.

Review of the business

The trading results and the group's financial position for the period ended 31st March 2024 are shown in the attached financial statements and within the Operational Company financial statements.

 

Principle risks and uncertainties

 

Some uncertainties still exist around the global pandemic, war in Ukraine and cost of living crisis that hit every industry during 2023/2024, and Sunderland Care and Support (Holding Company) Limited is not an exception to that.

 

The principal risk facing the Company is always the requirement to ensure the delivery of safe and compliant services and the associated reputational risk if the Company fails to safeguard and provide high quality services to its customers. This risk is mitigated through:

 

•    maintaining high standard robust policies and procedures

•    developing strong relationships with customers

•    ensuring continuous investment in staff development through internally and externally provided training.

 

The surge in the cost of living through utility bills and fuel prices has caused a pressure on the disposable income of households and this has caused market difficulties in the attraction and retention of staff required to optimally perform and even exceed our contractual obligations.

 

Market risk

The market risks have been highlighted in the Strategic Report of the Operational Group financial statements with the major risk being change to our customer base through the Social Care Act 2014, continued reduction of Government funding of Social Care and the ongoing impact from the pandemic and cost of living crisis. Our future strategy aims to transform our services to respond to the rapidly changing social care marketplace as well as diversifying our customer base.

 

Operational risk

The Company continuously monitors the range, efficiency and availability of its services and any fluctuating customer or commissioner requirements to ensure that it is able to meet those demands and business opportunities as and when they arise. The Company is reviewing its management structure which will reflect its leadership and management capacity to ensure the Company is able to meet CQC and Ofsted standards and its other legal and financial responsibilities.

Liquidity risk

Working capital is managed carefully, with cash forecasts produced to provide daily as well as medium to long term projections. This ensures sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

 

Financial risk

In common with every other business, financial risks reside largely within either a failure to perform the services appropriately, or through failure to manage operational performance appropriately. The measures used by the directors to manage this risk include internal management controls, financial planning, timely and accurate management information and by careful monitoring of all budget costs and income.

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Development and performance

 

Financial overview

The continuation of the reduction in Government funding of public sector services, particularly in Adult Social Care, and the increased demand for services during this financial period has been challenging. The Company is reliant on Sunderland City Council and North East and North Cumbria Integrated Care Board (ICB) for the majority of its income.

 

As a company we continue to provide good quality care to our customers and through our work with commissioners have demonstrated an ability to be an ethical and innovative partner who has been able to use its capabilities to create sustainable system savings and service improvement.

 

This continued pressure on funding will be managed through maintaining strong relationships with commissioners and seeking to diversify income streams through investment in growth areas.

 

The directors are pleased with the performance of the Company during this period and believe that the Company and the group is in a strong position to continue to expand and have the confidence in the Company’s ability to provide quality and good value services

 

Financial performance

Turnover was in line with expectations and costs were well controlled, with the result that a small profit was made for the period. The Company will continue to review and monitor its financial performance with a view to increasing its financial efficiency and resilience.

 

Strategy

The strategy adopted during the year has been to ensure Sunderland Care and Support (Holding Company) Limited continues to develop both corporately and financially so that, as a new organisation, the Company is financially viable, is able to provide high quality local services for local people, operates in an open and transparent manner and continues to invest in our workforce. This has entailed establishing the relevant governance and management structures whilst ensuring that contracted efficiency targets and outcomes are met.

 

Future developments

Our strategy continues to deliver a significantly improved business performance. The key objectives of the Company and the group from April 2024 to March 2025 have been highlighted in the Strategic Report of the Operational Group financial statements.

 

Key decisions

The Company also recognises the importance of mental wellbeing of its employees and has sought to provide support and advice wherever necessary. The Company engages on regular staff newsletters and other platforms such as employee noticeboards.

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
S172 statement

The Board has a duty to promote the success of the company for the benefit of its members as a whole having regards to the matters of our shareholders, our customers, our employees, our relationships with our suppliers and the impact of our operations on the communities in which we operate, and to ensure that we maintain a reputation for high standards of care and business conduct.

 

The Board of Directors consider that they have acted in good faith, and their actions have been to promote the success of the Company for the benefit of its shareholder, Sunderland City Council, and the wider stakeholders who are the people from our area, and in doing so have regard (amongst other matters) to:

 

 

We understand that it is important for business at all levels to engage with its stakeholders as we gain a better understanding of what areas they are interested in or concerned about and how our decisions have impacted them. The Board are updated regularly on stakeholder engagement and any stakeholder engagement supports the Board's regard to the likely consequences of any decision in the long term.

 

As is common in large companies, there may be some instances where conflicts arise between stakeholder groups. In these circumstances, the Board will undertake research and discussions to understand the needs and priorities of each stakeholder group. This should then ensure the needs of the stakeholders align with those of the Company, thus increasing the likelihood of the Company achieving long term sustainable success.

 

We have set out below how we have engaged with and taken into consideration the needs of our stakeholders. These stakeholders continue to represent the key resources and relationships of the Company, as well as being the key to the Company's long-term success.

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

On behalf of the board

Councillor L Williams
Director
27 September 2024
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

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

Principal activities

The Company was incorporated on 9 September 2013 and commenced to trade on 1 December 2013. Sunderland Care and Support (Holding Company) Limited is a Local Authority Trading Company (LATC) established by Sunderland City Council.

 

It is responsible for delivering a range of social care, health and support services to residents across the City of Sunderland and in the region. These services were transferred in order to enable the Company to become more cost effective and compete in the Social Care marketplace.

Results and dividends

The profit for the year, after taxation, amounted to £2,609 (2023: £3,717).

No ordinary dividends were paid. 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:

Councillor L Williams
Councillor JE Fletcher
Mr DA Lough
Mr G King
Councillor M Thornton
(Resigned 15 November 2023)
Councillor A Smith
(Appointed 15 November 2023)
Post reporting date events

There have been no significant events affecting the Company since the year end that are not adequately disclosed in the financial statements.

Auditor

In accordance with the company's articles, a resolution proposing that Robson Laidler Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Energy and carbon report

Streamlined energy and carbon reporting

                    Unit         2023/2024 2022/2023

Scope 2 emissions (indirect)        tonnes CO2e         585.70 549.04

Scope 3 emissions (other indirect)        tonnes CO2e         70.12 84.88

Total Greenhouse Gas emissions        tonnes CO2e         655.82 633.92    

Greenhouse gas emissions per employee    tonnes CO2e         0.60 0.59    

 

Data is provided as tonnes of carbon dioxide equivalent (CO2e) for all operations. Scope 2 and 3 include emissions from our sites, offices and vehicles. The Company’s chosen intensity measures is emissions per employee. The report data has been collated internally and CO2e have been calculated using actual prices per kwh and cost for car mileage taken from suppliers’ invoices and staff car mileage claims. CO2e has been calculated using the National Energy Foundation Carbon Calculator.

 

We have reported on the emissions sources required under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 apart from the exclusions noted. The reported sources fall within our financial statements and are emissions over which we have financial control. We do not have responsibility for any emissions sources that are not included in our statements.

 

Sunderland Care and Support (Holding Company) Limited is concerned about energy consumption and carbon emissions and wishes to utilise the mandatory SECR legislation to identify ways of saving energy and reduce on carbon emissions.

Statement of directors' responsibilities

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.

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Statement of disclosure to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

 

 

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

Going Concern

The financial statements have been prepared on a going concern basis.

 

As a company ultimately wholly owned by Sunderland City Council, by its very nature it is a going concern and the directors have no reason to believe that any events would impact on this position. A five-year contract plus additional options to extend of up to 2 x 12 months was agreed in July 2020 with Sunderland City Council with the potential contract ceasing on the 30 November 2027.

On behalf of the board
Councillor L Williams
Director
27 September 2024
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
- 8 -
Opinion

We have audited the financial statements of Sunderland Care And Support (Holding Company) 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, the statement of cash flows 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:

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
- 9 -
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, outlines 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 risk of material misstatement due to error or fraud is deemed to be low within the entity as the company operate strong internal controls to mitigate any such risk. These controls are reviewed as part of the audit by performing controls sample testing as well as systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.

Manual journal entries are scrutinised by data analytics software used as part of the audit.

 

The laws and regulations which are considered to be significant to the entity relate to health and safety. The entity also must comply with policies set out by Ofsted and the Care Quality Commission. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.

 

The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.

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.

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
- 10 -

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.

Michael T Moran BA FCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited
27 September 2024
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
56,432,051
49,740,241
Cost of sales
(56,422,051)
(49,730,241)
Gross profit
10,000
10,000
Administrative expenses
(6,779)
(5,411)
Profit before taxation
3,221
4,589
Tax on profit
7
(612)
(872)
Profit for the financial year
2,609
3,717

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
8
1
1
Current assets
Debtors
10
2,342,424
2,594,608
Cash at bank and in hand
1,529,931
400,945
3,872,355
2,995,553
Creditors: amounts falling due within one year
11
(3,813,024)
(2,938,831)
Net current assets
59,331
56,722
Net assets
59,332
56,723
Capital and reserves
Called up share capital
12
1
1
Profit and loss reserves
13
59,331
56,722
Total equity
59,332
56,723
The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 and are signed on its behalf by:
Councillor L Williams
Director
Company registration number 08682094 (England and Wales)
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
1
53,005
53,006
Year ended 31 March 2023:
Profit and total comprehensive income
-
3,717
3,717
Balance at 31 March 2023
1
56,722
56,723
Year ended 31 March 2024:
Profit and total comprehensive income
-
2,609
2,609
Balance at 31 March 2024
1
59,331
59,332
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
16
1,129,858
(1,253,814)
Income taxes paid
(872)
(908)
Net cash inflow/(outflow) from operating activities
1,128,986
(1,254,722)
Net increase/(decrease) in cash and cash equivalents
1,128,986
(1,254,722)
Cash and cash equivalents at beginning of year
400,945
1,655,667
Cash and cash equivalents at end of year
1,529,931
400,945
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
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.

2
Accounting policies
Company information

Sunderland Care and Support (Holding Company) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.1
Accounting convention

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 and Ireland and the Companies Act 2006.

The preparation of financial statement s in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policy (see relevant note below).

The company is itself a subsidiary company and is exempt from the requirement to prepare group financial statements by virtue of section 400 of the Companies Act 2006. These financial statements therefore present information about the company as an individual undertaking and not about its group.

 

Group financial statements which include the company are prepared by Sunderland City Council. Please see the Council's website where these group financial statements are available at www.sunderland.gov.uk. Further information can be obtained from Director of Corporate Services, Sunderland City Council, City Hall, Plater Way, Sunderland, SR1 3AA.

2.2
Going concern

The directors have a reasonable expectation that the company has adequate resources to continue intrue operational existence for the foreseeable future. Thus they continue to adopt the going concern basis for accounting in preparing the annual financial statements. Sunderland City Council has confirmed that it will financially support the company for at least a further 12 months from the date the financial statements are signed by the directors and the auditor. On this basis, the board consider the presentation of the financial statements on a going concern basis to be appropriate.

2.3
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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:

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 16 -

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 the following conditions are satisfied:

 

- the amount of revenue can be measured reliably;

- it is probable that the Company 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.

2.4
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

2.5
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.

2.6
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.

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 17 -
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.

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.

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.

Derecognition of financial liabilities

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

2.7
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.

SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 18 -
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.

2.8
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.

2.9

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transactions costs and are measured subsequently at amortised cost using that effective interest methods, less any impairment.

2.10

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans,are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Social care, health and support
56,432,051
49,740,241
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
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
5,843
2,514
6
Employees

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

2024
2023
Number
Number
Directors
5
5

There were no staff costs for the year ended 31 March 2024 nor for the year ended 31 March 2023.

7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
612
872

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
3,221
4,589
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
612
872
Taxation charge in the financial statements
612
872
8
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
9
1
1
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
9
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Sunderland Care and Support Limited
City Hall, Plater Way, Sunderland, SR1 3AA
Provision of social care services
Ordinary shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Sunderland Care and Support Limited
2,661,915
135,133
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,342,424
2,594,608
11
Creditors: amounts falling due within one year
2024
2023
£
£
Corporation tax
612
872
Other taxation and social security
2,491,441
1,838,351
Other creditors
1,320,971
1,099,608
3,813,024
2,938,831
12
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
13
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
56,722
53,005
Profit for the year
2,609
3,717
At the end of the year
59,331
56,722
SUNDERLAND CARE AND SUPPORT (HOLDING COMPANY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
14
Related party transactions

The company is wholly owned by Sunderland City Council. Income of £55,976,113 (2023: £49,101,335) was received from the Council during the reporting period. At the balance sheet date the Council owed the company £2,178,643 (2023: £2,434,881).

 

Sunderland Care and Support Limited is a subsidiary of the company. The expenditure of the company with Sunderland Care and Support Limited was £56,422,051 (2023: £49,730,241 ) in the reporting period. At the balance sheet date the company owed the subsidiary £2,374,624 (2023: £1,981,776).

 

During 2023/24 the company received income of £455,937 (2023: £638,906 ) from Together For Children Sunderland Limited, another wholly owned subsidiary of Sunderland City Council. At the balance sheet date Together For Children Sunderland Limited owed the company £136,484 (2023: £159,726).

 

The amounts owning to / (from) related parties at the year end was as follows:

 

     2024 (£)         2023 (£)

Sunderland Care and Support Ltd         2,374,624*              1,981,776*

Sunderland City Council            (2,178,643)             (2,434,881)

Together for Children Ltd             (136,484)              (159,726)

 

*Note: VAT debtors / (creditor) included in figures between Holding Company and Operational Company of (£1,059,496) (2023:(£887,168)).

15
Ultimate controlling party

The ultimate parent undertaking is Sunderland City Council. There is no individual controlling party.

 

Ground financial statements which include the company are prepared by Sunderland City Council. Please see the Council's website where these group financial statements are available at www.sunderland.gov.uk. Further information can be obtained from the Director of Corporate Services, Sunderland City Council, City Hall, Plater Way, Sunderland, SR1 3AA.

16
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
2,609
3,717
Adjustments for:
Taxation charged
612
872
Movements in working capital:
Decrease in debtors
252,184
921,127
Increase/(decrease) in creditors
874,453
(2,179,530)
Cash generated from/(absorbed by) operations
1,129,858
(1,253,814)
17
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
400,945
1,128,986
1,529,931
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