Registered number:
FOR THE YEAR ENDED 31 MARCH 2024
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WELLBURN CARE HOMES LIMITED
COMPANY INFORMATION
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WELLBURN CARE HOMES LIMITED
CONTENTS
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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.
The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
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 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.
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.
The directors who served during the year were:
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WELLBURN CARE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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.
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.
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.
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WELLBURN CARE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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.
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
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.
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WELLBURN CARE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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.
The business review, principal risks and uncertainties and financial key performance indicators are all included in the strategic report.
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WELLBURN CARE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The auditors, Waltons Business Advisers Limited, will 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.
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WELLBURN CARE HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
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.
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.
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.
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.
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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.
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WELLBURN CARE HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WELLBURN CARE HOMES LIMITED
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 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).
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.
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.
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WELLBURN CARE HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WELLBURN CARE HOMES LIMITED (CONTINUED)
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 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.
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.
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.
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WELLBURN CARE HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WELLBURN CARE HOMES LIMITED (CONTINUED)
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.
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WELLBURN CARE HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WELLBURN CARE HOMES LIMITED (CONTINUED)
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Maritime House
Harbour Walk
The Marina
TS24 0UX
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WELLBURN CARE HOMES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
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WELLBURN CARE HOMES LIMITED
REGISTERED NUMBER: 01965619
BALANCE SHEET
AS AT 31 MARCH 2024
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WELLBURN CARE HOMES LIMITED
REGISTERED NUMBER: 01965619
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 18 to 37 form part of these financial statements.
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