Company registration number 07965814 (England and Wales)
EHSL
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
PAGES FOR FILING WITH REGISTRAR
EHSL
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -
The directors present their annual report and financial statements for the year ended 29 February 2024.
Directors
A S Costelloe (resigned on 3 July 2024)
J Hon
R Willson
G Lewis
M Slater (appointed on 5 December 2023)
Principal activities
EHSL is a company limited by guarantee and registered in England.
EHSL provides supported housing accommodation and related services to people with learning disabilities, autism, mental health needs, and other support needs, operating in buildings leased from the private sector and from care providers.
EHSL operates on a non-profit basis, which is the standard for the social housing sector and a requirement to access certain funding schemes. EHSL applies its income against its objects of providing social housing to persons in need for reasons of disability, age or financial circumstances.
Accommodation is provided by leasing buildings from various parties, and with consent, issuing tenancy agreements to people who are eligible to receive adult social care or NHS funded support services. EHSL’s tenants receive care and support from a care provider, as commissioned by local authorities responsible for the provision of adult social care. EHSL provides a comprehensive management service intended to ensure the ongoing suitability of the accommodation, with respect to the needs of its tenants.
EHSL enjoyed a further period of continued growth during 2023-2024, building on the previous year. The performance in the period showed continued demand for EHSL’s services.
EHSL’s turnover increased by 51% to £8.548m, as a result of a net increase in stock levels from 413 to 548. EHSL incorporated 146 new units of accommodation into its stock during the period, however gave up possession of a total of 11 units as a result of lease expiries, and reducing the capacity in two schemes.
As it is not required to register with the RSH to provide supported housing, EHSL has continued to operate outside the scope of the RSH's regulation and therefore addresses the matter of exempt accommodation criteria and acceptability of rent levels with local authorities directly, during the planning stage of delivering a scheme.
Risks and uncertainties
The main risks posed to EHSL relate to the long-term continuation of the funding that it receives via Housing Benefit, as EHSL relies on this funding to meet its obligations to tenants, head landlords and other stakeholders. The implementation of the Supported Housing Oversight Bill in 2023 will improve regulation within the sector and EHSL looks forwards to engaging with stakeholders under a new regime.
EHSL has been called upon during the period to further evidence that its tenants’ housing benefit claims are correctly recognised as Exempt Accommodation and has provided evidence of the additional services required by its tenants and which are provided by and on behalf of EHSL. In a small number of cases these discussions are ongoing and have resulted in appeals being sent to the first-tier tribunal. In most cases, the evidence provided has satisfied the authorities and payments have resumed in full. This has resulted in an increase to rent arrears whilst these matters are dealt with, for both new claims and existing claims.
EHSL
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Employees
The table below shows the staff that were employed at the end of the period and their salary bands
Persons employed
Salary Band
3
Voluntary Non-executive
-
Non-contract/Zero Hours/temporary
-
£0.01-9,999
-
£10,000-19,999
19
£20,000-29,999
15
£30,000-39,999
4
£40,000-49,999
1
£50,000-59,999
-
£60,000-69,999
-
£70,000-79,999
1
£80,000+
Rent Arrears
Rent arrears at the end of the period were £724,446.
This figure is net of credits, rent paid in advance, and does not include rent which has been billed but is not yet due for payment.
Lease commitments.
Within one year
£5,814,699
More than one year
£15,454,729
This report has been prepared in accordance with the provisions applicable to companies entitled to the small
companies exemption.
On behalf of the board
R Willson
Director
29 November 2024
EHSL
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
2024
2023
£
£
Income
8,547,550
5,662,853
Cost of sales
(7,128,155)
(4,710,692)
Gross surplus
1,419,395
952,161
Administrative expenses
(1,093,867)
(857,065)
Surplus before taxation
325,528
95,096
Tax on surplus
Surplus for the financial year
325,528
95,096
Retained earnings brought forward
718,065
622,969
Retained earnings carried forward
1,043,593
718,065
The income and expenditure account has been prepared on the basis that all operations are continuing operations.
EHSL
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 4 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
5
771
Tangible assets
6
36,699
32,410
36,699
33,181
Current assets
Debtors
7
1,692,279
832,584
Cash at bank and in hand
440,514
438,992
2,132,793
1,271,576
Creditors: amounts falling due within one year
8
(1,094,520)
(557,692)
Net current assets
1,038,273
713,884
Total assets less current liabilities
1,074,972
747,065
Creditors: amounts falling due after more than one year
9
(2,379)
Net assets
1,072,593
747,065
Reserves
Other reserves
29,000
29,000
Income and expenditure account
1,043,593
718,065
Total reserves
1,072,593
747,065
The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true
For the financial year ended 29 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
EHSL
BALANCE SHEET (CONTINUED)
AS AT
29 FEBRUARY 2024
29 February 2024
2024
2023
Notes
£
£
£
£
- 5 -
The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
R Willson
Director
Company Registration No. 07965814
EHSL
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 6 -
Maintenance reserve
Income and expenditure account
Total
Notes
£
£
£
Balance at 1 March 2022
29,000
622,969
651,969
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
95,096
95,096
Balance at 28 February 2023
29,000
718,065
747,065
Year ended 29 February 2024:
Profit and total comprehensive income for the year
-
325,528
325,528
Balance at 29 February 2024
29,000
1,043,593
1,072,593
EHSL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 7 -
1
Accounting policies
Company information
EHSL is a private company limited by guarantee incorporated in England and Wales. The registered office is East Wing, Goffs Oak House, Goffs Lane, Goffs Oak, Hertfordshire, EN7 5GE.
The company is a standalone company and is not part of a group.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Income and expenditure
Income and expenses are included in the financial statements as they become receivable or due.
Turnover represents rental income for properties rented and services provided during the period in accordance with applicable accounting standards.
Expenses include VAT where applicable as the company cannot reclaim it.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Computer software & licences
straight line over 10 years
1.4
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:
Plant and machinery
Fixtures, fittings & equipment
25% on cost
Motor vehicles
33% on cost
EHSL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 8 -
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 surplus or deficit.
1.5
Impairment of fixed assets
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 surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.
EHSL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 9 -
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.
1.8
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The pension liabilities are recognised at the balance sheet date as creditors.
1.9
Government grant and financial assistance
The company does not receive a government grant or financial assistance.
1.10
Valuation of housing and other properties
The company does not hold freehold property or leasehold property as fixed assets.
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.
EHSL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
34
23
4
Directors' remuneration
2024
2023
£
£
Remuneration paid to directors
114,426
107,040
Pensions to directors
1,479
1,320
Sums paid to third parties for directors' services
2,400
7,400
The highest paid director received £100,000 (2023: £88,270).
5
Intangible fixed assets
Other
£
Cost
At 1 March 2023 and 29 February 2024
94,053
Amortisation and impairment
At 1 March 2023
93,282
Amortisation charged for the year
771
At 29 February 2024
94,053
Carrying amount
At 29 February 2024
At 28 February 2023
771
EHSL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 March 2023
42,827
Additions
26,092
Disposals
(8,000)
At 29 February 2024
60,919
Depreciation and impairment
At 1 March 2023
10,417
Depreciation charged in the year
16,692
Eliminated in respect of disposals
(2,889)
At 29 February 2024
24,220
Carrying amount
At 29 February 2024
36,699
At 28 February 2023
32,410
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
1,349,895
589,905
Other receivables
342,384
242,679
1,692,279
832,584
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade payables
476,074
264,222
Taxation and social security
60,353
27,753
Other payables
558,093
265,717
1,094,520
557,692
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
2,379
EHSL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
10
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
11
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
Within one year
5,814,699
3,942,590
Between two and five years
11,568,872
9,432,571
In over five years
3,885,857
21,269,428
13,375,161
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