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iso4217:GBP xbrli:pure

Registered number: 01965619










WELLBURN CARE HOMES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
WELLBURN CARE HOMES LIMITED
 
 
COMPANY INFORMATION


DIRECTORS
Mr S W Beckett (Founder) 
Mrs R Buckland (Chair) 
Mr S Buckland 
Mr R D Guppy 
Mrs S McKinney 




COMPANY SECRETARY
Mr R D Guppy



REGISTERED NUMBER
01965619



REGISTERED OFFICE
Tyne View House
9 Grange Road

Newburn

Newcastle Upon Tyne

NE15 8ND




INDEPENDENT AUDITORS
Waltons Business Advisers Limited
Chartered Accountants & Statutory Auditors

Maritime House

Harbour Walk

The Marina

Hartlepool

TS24 0UX




BANKERS
Clydesdale Bank PLC T/A Virgin Money
30 St Vincent Place

Glasgow

G1 2HL





 
WELLBURN CARE HOMES LIMITED
 

CONTENTS



Page
Directors' report
1 - 5
Strategic report
6 - 7
Independent auditors' report
8 - 11
Statement of comprehensive income
12
Balance sheet
13 - 14
Statement of changes in equity
15
Statement of cash flows
16 - 17
Analysis of net debt
17
Notes to the financial statements
18 - 37


 
WELLBURN CARE HOMES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

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

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

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


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £756,835 (2023 - £839,994).

A dividend of £183,830 (2023: £91,915) has been declared and paid in the year.

DIRECTORS

The directors who served during the year were:

Mr S W Beckett (Founder) 
Mrs R Buckland (Chair) 
Mr S Buckland 
Mr R D Guppy 
Mrs S McKinney 

Page 1

 
WELLBURN CARE HOMES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


LAND AND BUILDINGS

The directors have valued the land and buildings using a model which takes into account expected occupancy levels, room rates and staffing levels. The model follows the methodology used by Colliers International Property Consultants Ltd, agents, valuers and surveyors when they prepared an independent, external valuation at 31 March 2022, a methodology that has been consistently used in the care sector for a number of years.
The properties, with one exception, vary between 100 and 300 years old. Again, with one exception, all of the properties are in conservation areas and four are Grade II Listed. The company has always maintained its properties to very high standards, and will continue to do so, and all maintenance costs are written off immediately.

FUTURE DEVELOPMENTS

Our primary aim is to ensure that our 14 homes are maintained in an excellent standard and we continue to deliver the high standards of care that we pride ourselves in.
Following the successful relaunch of St Catherine’s as a dementia home we continue to review its effectiveness and performance and are looking at options to replicate this.
We continue to review our direct and overhead costs to ensure that we get value for money, whilst always making sure we maintain the highest level of service. However, our focus of maintaining a safe environment for both staff and residents remains a priority and will always do so.
Looking to the future, amongst the many challenges we expect to face, meeting the cost of further increases to the ‘National Living Wage’ remains a priority. Negotiations with local councils (at local and regional levels) have provided some uplifts in fees, but the negotiation process will be ongoing whilst we move towards the Government’s Living Wage ‘goal’.
The directors believe that the company is in a healthy position and have confidence that, not only do they have the right model and strategies in place, but also a team of gifted, dedicated and highly committed people, to ensure progress of the company over the years to come.

ENGAGEMENT WITH EMPLOYEES

The directors endeavour to provide appropriate management information to employees to keep them appraised of company performance. The directors encourage employees to comment on such information and will always consider carefully any views expressed. Regular meetings are held with senior employees to promote understanding of performance and discuss possible improvements.
Disabled employees
The company has a Dignity and Equality at Work policy in place and encourages good employment practice. The company recognises a clear legal and moral responsibility to ensure everyone is offered equal opportunities for employment and progression.
In order to ensure this, applicants will be selected for employment solely on the basis of relevant aptitude, skills and abilities. If anyone becomes disabled during employment steps will be taken to make adjustments as needed. Staff are advised of their responsibility to actively avoid discrimination.

Page 2

 
WELLBURN CARE HOMES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

We have and continue to implement a raft of measures, initiatives and strategies to make sure we always deal with customers and suppliers ethically, and in line with our company values. We believe this is one of the key factors in our success and will be a major factor to our long term success too.

GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION AND ENERGY EFFICIENCY ACTION

In line with the Streamlined Energy and Carbon Reporting legislation, the company is required to report its energy consumption and greenhouse gas emissions arising in the UK. All scope 1 & 2 sources of energy and emissions  have been disclosed as well as mandatory scope 3 sources of energy and emissions.
In comparison with our previous financial period, our overall energy consumption has decreased by 3% or 262.84 MWh, and our total greenhouse gas emissions have decreased by 2% or 30.85 tCO2e. Our emissions intensity has stayed within a 1% margin. We have also added the number of residents as another intensity metric for further comparison moving forward. Notable energy efficiency actions to mention are as follows:
> We have installed voltage optimisers at 2 of our homes
> We have been replacing lighting with LED lights as well as installing PIR sensors
> Updated the thermostatic controls for the heating systems within all our homes
> Continued to raise staff awareness regarding energy usage

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Methodology
Conversion Factors
All conversion factors and fuel properties used in this disclosure have been taken from the 2022 “UK Government Greenhouse Gas Conversion Factors for Company Reporting” published by the Department for Business, Energy & Industrial Strategy (BEIS) and the Department for Environment, Food & Rural Affairs (DEFRA). All greenhouse gas emissions have been expressed in terms of their carbon dioxide equivalence. A full list of conversion factors can be viewed below.
 
Page 3

 
WELLBURN CARE HOMES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

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Utilities
Energy consumption from electricity and natural gas has been taken from suppliers' invoices expressed in kilowatt-hours. Complete data was available for all gas accounts across the period. For Electricity we were missing 2 months worth of data for one supply which had to be estimated. These estimations equated to 15,871.76 kWh (less than 1% of our total energy consumption). All our invoices during this period have also been validated by our energy broker to ensure billing accuracy. Location-based kgCO2e/kWh conversion factors for the average UK grid supply have been used to calculate greenhouse gas emissions from electricity and natural gas consumption.
Transport
Staff drive personal & company vehicles and are reimbursed through mileage claims. We were able to use the  most accurate conversion factors available for 100% of our company & staff vehicles this year.
Other Fuels & Emissions
Maintenance records did not contain any instances of refrigerant leaks during the reference period. No other fugitive emissions have been identified.

MATTERS COVERED IN THE STRATEGIC REPORT

The business review, principal risks and uncertainties and financial key performance indicators are all included in the strategic report. 

Page 4

 
WELLBURN CARE HOMES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

DISCLOSURE OF INFORMATION TO AUDITORS

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

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

AUDITORS

The auditorsWaltons Business Advisers Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





Mrs R Buckland (Chair)
Director

Date: 4 September 2024

Page 5

 
WELLBURN CARE HOMES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

BUSINESS REVIEW
 
The company’s trading performance for the year to 31 March 2024 continues to improve following the Covid 19 pandemic and the relaunch of St Catherine’s as a dementia home. The increased turnover has been partially offset by increased costs: payroll cost (the company’s major cost) increases through the impact of ‘National Living Wage’ and other costs have increased due to the high rate of inflation within the UK.
The increase in capital and reserves shown within the balance sheet at 31 March 2024 reflects the retention of profit for the year after corporation tax, deferred taxation charges and dividends. The company continues to move towards a more stable financial basis by the retention of profits and investment in the fabric of the homes. This profit is required to meet the company’s bank loan repayment commitments. The directors will continue with the policy of profit retention and reinvestment back into the homes for the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES
 
As stated previously, negotiations with local councils have generally produced acceptable uplifts to fee rates in most (but not all) areas. The company is helped by its historically high level of privately funded residents but, in conjunction with local and national care associations, we keep pressing the government and local councils to ensure that wage increases forced upon us by legislation and high levels of inflation are mitigated by increased local council fee levels.
With the recent change in Government there is an element of uncertainty. Again, we will work with local and national care associations to ensure any changes forced upon us are mitigated by increased funding. 
There continues to be an increasing emphasis on monitoring and review of care homes by CQC and local councils. Our emphasis on quality of care and compliance should ensure that homes retain their grading, but income could be reduced if our homes are downgraded at any point.
Our continued policy of maintaining our properties to high standards inevitably requires higher than industry benchmark figures for repair and maintenance costs. However, we will continue with this policy to maintain our commitment to the highest quality of care provision to our residents.

FINANCIAL AND OTHER KEY PERFORMANCE INDICATORS
 
The company’s key performance indicator, occupancy, averaged 91.8% over the year, compared to 89.0% in the previous year. Occupancy levels have recovered from the depressed levels due to the Covid 19 crisis and closure of St Catherine’s during refurbishment.
Gross profit margin for 2023-24 at 37% was in line with the previous year’s 37%. The directors continue to work to increase margins by maximising income and careful control of costs.

 
DIRECTORS' STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE COMPANY
 
When making any decision, be it small or large, the directors always act in good faith, with the welfare of the staff and residents at the heart of everything they do. All decisions and strategies implemented have both the short, medium and long term health and success of the company at their core. 
In discharging their duties above, the directors also carefully consider the impact on and interests of other stakeholders in the company, and factor these into their decision making process.

Page 6

 
WELLBURN CARE HOMES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


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


Mrs R Buckland (Chair)
Director

Date: 4 September 2024

Page 7

 
WELLBURN CARE HOMES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WELLBURN CARE HOMES LIMITED
 

UNQUALIFIED OPINION


We have audited the financial statements of Wellburn Care Homes Limited (the 'company') for the year ended 31 March 2024, which comprise the statement of comprehensive income, the balance sheet, the statement of cash flows, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 8

 
WELLBURN CARE HOMES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WELLBURN CARE HOMES LIMITED (CONTINUED)


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
 

In the light of the knowledge and understanding of the 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the directors' responsibilities statement set out on page 1, 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.


Page 9

 
WELLBURN CARE HOMES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WELLBURN CARE HOMES LIMITED (CONTINUED)


AUDITORS' 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 auditors' 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the area in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, fraudulent expenditure and management override of controls (especially in the posting of journals). We discussed these risks with managment and designed audit procedures as follows:
• to test the timing and existence of revenue, 
• to vouch a sample of expenditure for authorisation and to invoices to confirm a genuine expense,
• to review journals posted to key control accounts or posted around the year end, to look for potential    "window dressing" as well as looking at a sample throughout the year.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


Page 10

 
WELLBURN CARE HOMES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WELLBURN CARE HOMES LIMITED (CONTINUED)


USE OF OUR REPORT
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' 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.





Paul Harrison MSc BSc FCA (senior statutory auditor)
  
for and on behalf of
Waltons Business Advisers Limited
 
Chartered Accountants
Statutory Auditors
  
Maritime House
Harbour Walk
The Marina
Hartlepool
TS24 0UX

4 September 2024
Page 11

 
WELLBURN CARE HOMES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
25,601,125
22,188,796

Cost of sales
  
(16,089,019)
(13,980,697)

GROSS PROFIT
  
9,512,106
8,208,099

Administrative expenses
  
(6,415,566)
(6,259,440)

Other operating income
 5 
129,199
415,619

OPERATING PROFIT
 6 
3,225,739
2,364,278

Investment Income
  
2,652
7,600

Interest receivable and similar income
 10 
14,622
55

Interest payable and similar expenses
 11 
(1,566,046)
(1,480,095)

PROFIT BEFORE TAX
  
1,676,967
891,838

Tax on profit
 12 
(920,132)
(51,844)

PROFIT FOR THE YEAR
  
756,835
839,994

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 18 to 37 form part of these financial statements.

Page 12

 
WELLBURN CARE HOMES LIMITED
REGISTERED NUMBER: 01965619

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

FIXED ASSETS
  

Intangible assets
 14 
79,784
77,119

Tangible assets
 15 
52,558,122
52,365,171

Investments
 16 
100
200

  
52,638,006
52,442,490

CURRENT ASSETS
  

Stocks
 17 
42,000
42,000

Debtors: amounts falling due within one year
 18 
1,955,027
1,973,397

Cash at bank and in hand
 19 
2,577,539
1,704,908

  
4,574,566
3,720,305

Creditors: amounts falling due within one year
 20 
(5,617,939)
(4,544,924)

NET CURRENT LIABILITIES
  
 
 
(1,043,373)
 
 
(824,619)

TOTAL ASSETS LESS CURRENT LIABILITIES
  
51,594,633
51,617,871

Creditors: amounts falling due after more than one year
 21 
(19,431,441)
(20,561,085)

PROVISIONS FOR LIABILITIES
  

Deferred tax
 25 
(3,450,743)
(2,917,342)

  
 
 
(3,450,743)
 
 
(2,917,342)

NET ASSETS
  
28,712,449
28,139,444

Page 13

 
WELLBURN CARE HOMES LIMITED
REGISTERED NUMBER: 01965619
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

2024
2023
Note
£
£

CAPITAL AND RESERVES
  

Called up share capital 
 26 
19,895
19,895

Share premium account
 27 
34,742
34,742

Revaluation reserve
 27 
17,509,247
17,509,247

Capital redemption reserve
 27 
219,450
219,450

Profit and loss account
 27 
10,929,115
10,356,110

  
28,712,449
28,139,444


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 September 2024.




Mrs R Buckland (Chair)
Director

The notes on pages 18 to 37 form part of these financial statements.

Page 14
 

 
WELLBURN CARE HOMES LIMITED


 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 April 2022
19,895
34,742
219,450
17,509,247
9,608,031
27,391,365





Profit for the year
-
-
-
-
839,994
839,994


Dividends: Equity capital
-
-
-
-
(91,915)
(91,915)





At 1 April 2023
19,895
34,742
219,450
17,509,247
10,356,110
28,139,444





Profit for the year
-
-
-
-
756,835
756,835


Dividends: Equity capital
-
-
-
-
(183,830)
(183,830)



AT 31 MARCH 2024
19,895
34,742
219,450
17,509,247
10,929,115
28,712,449



The notes on pages 18 to 37 form part of these financial statements.

Page 15
 
WELLBURN CARE HOMES LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the year
756,835
839,994

ADJUSTMENTS FOR:

Amortisation of intangible assets
39,155
37,596

Depreciation of tangible assets
640,923
520,789

Government grants
(129,199)
(51,603)

Interest paid
1,566,046
1,480,095

Dividends and interest received
(17,376)
(7,600)

Taxation charge
920,132
51,844

Decrease/(increase) in debtors
14,769
(603,261)

Increase in creditors
113,936
527,123

Increase/(decrease) in provisions
-
(247,935)

Corporation tax (paid)
(20,625)
(137,177)

NET CASH GENERATED FROM OPERATING ACTIVITIES

3,884,596
2,409,865


CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of intangible fixed assets
(41,820)
(36,125)

Purchase of tangible fixed assets
(833,874)
(1,138,766)

Government grants received
129,199
51,603

Write off of share in associates
100
-

Interest received
14,622
-

HP interest paid
(739)
(739)

Dividends received
2,753
7,600

NET CASH FROM INVESTING ACTIVITIES

(729,759)
(1,116,427)
Page 16

 
WELLBURN CARE HOMES LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


2024
2023

£
£



CASH FLOWS FROM FINANCING ACTIVITIES

New secured loans
-
21,000,000

Repayment of loans
(525,000)
(19,899,472)

Repayment of finance leases
(8,069)
(7,549)

Dividends paid
(183,830)
(91,915)

Interest paid
(1,565,307)
(1,479,356)

NET CASH USED IN FINANCING ACTIVITIES
(2,282,206)
(478,292)

INCREASE IN CASH AND CASH EQUIVALENTS
872,631
815,146

Cash and cash equivalents at beginning of year
1,704,908
889,762

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
2,577,539
1,704,908


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
2,577,539
1,704,908

2,577,539
1,704,908



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

1,704,908

872,631

2,577,539

Debt due after 1 year

(20,475,000)

1,050,000

(19,425,000)

Debt due within 1 year

(525,000)

(525,000)

(1,050,000)

Finance leases

(21,842)

8,069

(13,773)


(19,316,934)
1,405,700
(17,911,234)

The notes on pages 18 to 37 form part of these financial statements.

Page 17

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


GENERAL INFORMATION

Wellburn Care Homes Limited is a company limited by share capital, incorporated in the United Kingdom and registered in England and Wales.
The registered office address is: 
Tyne View House
9 Grange Road
Newburn
Newcastle Upon Tyne
NE15 8ND

2.ACCOUNTING POLICIES

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors, having made due and careful enquiry and preparing forecasts, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

 
2.3

Exemption from preparing consolidated financial statements

The company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.

 
2.4

Revenue

Revenue represents amounts charged for care home fees. This is recognised in the period in which the service is provided when all of 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; and
•  in accordance with the timing of the care given.

Page 18

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.5

Intangible assets

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

 The estimated useful lives range as follows:

Software
-
4
years

 
2.6

Tangible fixed assets

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

Depreciation is provided on the following basis:

Additions to leasehold premises
-
over 10 years
Motor vehicles
-
over 4 years
Fixtures, fittings and equipment
-
over 4 to 10 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.

 
2.7

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence based on a methodology originally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in the statement of changes in equity unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.8

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.9

Valuation of investments

Investments in subsidiaries & associates are measured at cost less accumulated impairment.

Page 19

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.10

Stocks

Stocks are valued at the estimated cost amount per home of consumables, such as food, held at the year end, taking into account any provision for impairment.

 
2.11

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions.
In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

 
2.13

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Page 20

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.ACCOUNTING POLICIES (CONTINUED)


2.13
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties.

Page 21

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.ACCOUNTING POLICIES (CONTINUED)


2.13
Financial instruments (continued)

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.14

Government grants

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

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the directors. 

 
2.16

Leased assets: the company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 22

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.17

Pensions

Defined contribution pension plan
The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
At the year end contributions totalling £51,565 
(2023: £40,684) were included in other creditors.

 
2.18

Interest income

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

 
2.19

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.20

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
•  The recognition of deferred tax assets is limited to the extent that it is probable that      they will be recovered against the reversal of deferred tax liabilities or other future      taxable profits; and
•  Any deferred tax balances are reversed if and when all conditions for retaining      associated tax allowances have been met.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The valuation of the properties is based on a multiplier of future profits and this is reliant upon anticipated room rates and levels of occupancy. As such were these to change the calculated value could also change.
The directors have had regard to a valuation prepared by Colliers International Property Consultants Ltd in setting the methodology for the valuation. Further details are included in note 15 of the financial statements.

Page 23

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


TURNOVER

The whole of the turnover is attributable to the provision of residential and nursing care, together with some day care accomodation for the elderly.

All turnover arose within the United Kingdom.


5.


OTHER OPERATING INCOME

2024
2023
£
£

Government grants receivable
129,199
415,619

129,199
415,619



6.


OPERATING PROFIT

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
640,923
520,789

Amortisation of intangible assets, including goodwill
39,155
37,596

Defined contribution pension cost
458,481
232,950

Government grants
(129,199)
(415,619)


7.


AUDITORS' REMUNERATION

During the year, the company obtained the following services from the company's auditors and their associates:


2024
2023
£
£

Fees payable to the company's auditors and their associates for the audit of the company's financial statements
24,130
22,980

Fees payable to the company's auditors and their associates in respect of:

All non-audit services not included above
13,094
7,260

Page 24

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
13,805,183
11,687,231

Social security costs
1,223,588
950,539

Cost of defined contribution scheme
458,481
232,950

15,487,252
12,870,720


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


        2024
        2023
            No.
            No.







Care home staff
583
543



Administration, management and maintenance
38
39

621
582


9.


DIRECTORS' REMUNERATION

2024
2023
£
£

Directors' emoluments
619,252
536,578

Company contributions to defined contribution pension schemes
183,806
8,806

803,058
545,384


During the year retirement benefits were accruing to 4 directors (2023 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £242,339 (2023 - £141,485).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £77,201 (2023 - £2,201).

Page 25

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


INTEREST RECEIVABLE

2024
2023
£
£


Other interest receivable
14,622
55

14,622
55


11.


INTEREST PAYABLE AND SIMILAR EXPENSES

2024
2023
£
£


Bank interest payable
1,565,307
1,479,356

Finance leases and hire purchase contracts
739
739

1,566,046
1,480,095


12.


TAXATION


2024
2023
£
£

Corporation tax


Current tax on profits for the year
362,506
10

Adjustments in respect of previous periods
24,226
(19,413)


386,732
(19,403)


Total current tax
386,732
(19,403)

Deferred tax


Origination and reversal of timing differences
533,400
71,247

Total deferred tax
533,400
71,247


Taxation on profit on ordinary activities
920,132
51,844
Page 26

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
12.TAXATION (CONTINUED)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,677,067
891,838


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
421,892
169,449

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
21,601
(2,526)

Capital allowances for year in excess of depreciation
(80,988)
(177,533)

Origination and reversal of timing differences
70,263
71,247

Adjustments to tax charge in respect of prior periods
24,226
(8,793)

Change of tax rate
463,138
-

Total tax charge for the year
920,132
51,844


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.


13.


DIVIDENDS

2024
2023
£
£


Dividends paid on equity capital
183,830
91,915

183,830
91,915

Page 27

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


INTANGIBLE ASSETS




Software

£



Cost


At 1 April 2023
224,294


Additions
41,820



At 31 March 2024

266,114



Amortisation


At 1 April 2023
147,175


Charge for the year on owned assets
39,155



At 31 March 2024

186,330



Net book value



At 31 March 2024
79,784



At 31 March 2023
77,119

The charge for the year as above is included within administrative expenses in the statement of comprehensive income.



Page 28

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


TANGIBLE FIXED ASSETS





Land and buildings
Additions to leasehold premises
Furniture, fittings and equipment
Motor vehicles
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
50,989,389
289,194
7,457,492
221,766
58,957,841


Additions
-
-
767,543
66,331
833,874



At 31 March 2024

50,989,389
289,194
8,225,035
288,097
59,791,715



Depreciation


At 1 April 2023
-
289,194
6,123,772
179,704
6,592,670


Charge for the year on owned assets
-
-
618,482
13,608
632,090


Charge for the year on financed assets
-
-
-
8,833
8,833



At 31 March 2024

-
289,194
6,742,254
202,145
7,233,593



Net book value



At 31 March 2024
50,989,389
-
1,482,781
85,952
52,558,122



At 31 March 2023
50,989,389
-
1,333,720
42,062
52,365,171

The net book value of assets held on hire purchase at the year end is £16,929 (2023: £25,761).
Land and buildings were valued at 31 March 2022 by external professional valuers Colliers International Property Consultants Ltd, agents, valuers and surveyors. The valuations by Colliers International Property Consultants Ltd were based on a multiple of the existing profitability of each individual care home, the standard for the industry, and also reflect the company's ongoing improvement programme. 
The directors, having suitable knowledge and qualification, considered the above valuation to be a fair reflection of the value of land and buildings at 31 March 2024.
If land and buildings had not been revalued they would have been included at a historical cost of £36,123,381 
(2023: £36,123,381)
The valuation of land and property includes long leasehold property of £1,980,000.

Page 29

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


FIXED ASSET INVESTMENTS





Investments in Subsidiary Companies
Investments in Associates
Total

£
£
£



Cost or valuation


At 1 April 2023
100
100
200


Disposals
-
(100)
(100)



At 31 March 2024
100
-
100





SUBSIDIARY UNDERTAKING


The following was a subsidiary undertaking of the company:

Name

Registered office

Class of shares

Holding

Wellburn Care Limited
Tyne View House
9 Grange Road
Newburn
Newcastle Upon Tyne
NE15 8ND
Ordinary
100%

The aggregate of the share capital and reserves as at 31 March 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Wellburn Care Limited
100
-

The subsidiary was dormant throughout the period. 

Page 30

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


STOCKS

2024
2023
£
£

Raw materials and consumables
42,000
42,000

42,000
42,000





18.


DEBTORS

2024
2023
£
£


Trade debtors
1,437,138
1,482,391

Other debtors
24,896
28,497

Prepayments and accrued income
492,993
462,509

1,955,027
1,973,397



19.


CASH AND CASH EQUIVALENTS

2024
2023
£
£

Cash at bank and in hand
2,577,539
1,704,908

2,577,539
1,704,908


Page 31

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


CREDITORS: Amounts falling due within one year

2024
2023
£
£

Bank loans
1,050,000
525,000

Trade creditors
402,830
538,512

Corporation tax
362,505
-

Other taxation and social security
259,790
187,633

Obligations under finance lease and hire purchase contracts
7,332
7,332

Other creditors
952,225
801,230

Accruals and deferred income
2,583,257
2,485,217

5,617,939
4,544,924



21.


CREDITORS: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
19,425,000
20,475,000

Net obligations under finance leases and hire purchase contracts
6,441
14,510

Accruals and deferred income
-
71,575

19,431,441
20,561,085


Secured loans
The bank loan facilities are secured by:
1. Legal mortgages over the company's freehold and leasehold properties.
2. A fixed and floating charge over all assets of the company.
The hire purchase loans are secured on the assets to which they relate.

Page 32

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

22.


LOANS


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
1,050,000
525,000

Amounts falling due 1-2 years

Bank loans
1,050,000
1,050,000

Amounts falling due 2-5 years

Bank loans
18,375,000
3,150,000

Amounts falling due after more than 5 years

Bank loans
-
16,275,000





23.


HIRE PURCHASE AND FINANCE LEASES


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
7,332
7,332

Between 1-5 years
6,441
14,510

13,773
21,842

Page 33

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

24.


FINANCIAL INSTRUMENTS

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
2,577,539
1,704,908

Financial assets that are debt instruments measured at amortised cost
1,462,034
1,500,278

4,039,573
3,205,186


Financial liabilities


Financial liabilities measured at amortised cost
24,685,110
23,142,354


Financial assets measured at fair value through profit or loss comprise cash.


Financial assets measured at amortised cost comprise trade and other debtors.


Financial liabilities measured at amortised cost comprise bank loans, trade creditors, accruals & deferred income, social security and other taxes, obligations under finance and hire purchase contracts and other creditors.

Page 34

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

25.


DEFERRED TAXATION




2024


£






At beginning of year
2,917,342


Charged to profit or loss
533,401



At end of year
3,450,743

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
1,929,739
1,396,338

Deferred tax on revaluation of properties
1,521,004
1,521,004

3,450,743
2,917,342

Page 35

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

26.


SHARE CAPITAL

2024
2023
£
£
Allotted, called up and fully paid



18,295 (2023 - 18,295) Ordinary A shares of £1.00 each
18,295
18,295
1,600 (2023 - 1,600) Ordinary B shares of £1.00 each
1,600
1,600

19,895

19,895

All shares are ranked pari-passu.



27.


RESERVES

Share premium account

This represents amounts paid to the company in excess of the share value for shares as issued.

Capital redemption reserve

This is a non distributable reserve to represent the money paid by the company on the purchase of own shares.

Profit & loss account

This reserve includes all current and prior period profits and losses, less any distributions made. 

Revaluation reserve
This reserve exists to hold revaluation gains on land and buildings. Any downward revaluation will be posted to here initially and to the profit and loss reserve if the property is revalued below the original cost. 


28.


COMMITMENTS UNDER OPERATING LEASES

At 31 March 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
183,489
200,635

Later than 1 year and not later than 5 years
614,073
664,191

Later than 5 years
3,245,000
3,392,500

4,042,562
4,257,326

The value of lease payments recognised as an expense in the year is £249,499 (2023: £240,681).

Page 36

 
WELLBURN CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
29.

Related parties

During the year the company rented premises at £29,500 per annum from a shareholder.
At the year end £100 (
2023: £100) was owed to a company which has directors in common.
At the year end £100 (
2023: £100) was owed to a company in which Wellburn Care Homes Limited is a shareholder and there are common directors.

Page 37