Company registration number 01643943 (England and Wales)
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
COMPANY INFORMATION
Directors
Mr P Klor
Mr S Klor
Company number
01643943
Registered office
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
Pilley Lane
Leckhampton
Cheltenham
GL53 9ER
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
12 - 22
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Review of the business

The Grange Care Centre (Cheltenham) Limited is a wholly owned subsidiary of The Grange Care Centre UK Limited which in turn is a wholly owned subsidiary of Rico Healthcare Limited. The Grange Care Centre (Cheltenham) Limited provides residential accommodation and nursing home facilities for the elderly.

 

Management continued to use their considerable experience of running a successful home to develop the best possible team for the new residents entering the home to ensure that the new residents receive the best care possible. The company continued to achieve occupancy rates in line with management's expectations. Going forward the management will continue to develop a high quality care team and aim to further increase occupancy towards capacity.

 

The company has continued to maintain and improve high standards of its freehold buildings during the year.

Principal risks and uncertainties

The primary activity is that of providing nursing and personal care within our nursing and care home. Providing adequate staffing with sufficient training to safeguard the residents and provide high quality care is a principal risk. We aim to exceed Care Quality Commission (CQC) standards for all of our staff members. We strive to have the right systems and procedures to induct, train and monitor all of our staff to ensure that the residents get the high level of care and support they deserve.

 

We are reliant on the uptake of beds and therefore any changes in the occupancy levels will quickly affect our results. We rely on referrals from the local authority and building a good reputation for the quality of our care to attract these referrals and also attract private residents.

 

Our nursing home is externally financed and subject to the usual financial and occupancy covenants for our industry. Since the end of the year we have met these covenants.

 

The directors consider that the high quality of care that is provided stands the home in an excellent position and secures its ongoing trading position against possible risks and uncertainties.

Development and performance

The position of the company at the year end remained strong and in line with expectations.

Key performance indicators

The company uses various key performance indicators to analyse the business on a monthly basis. The KPl's which the directors consider to be the most important to understand the operating trends over the reporting period are shown below:

Turnover

Occupancy %

Gross profit margin

On behalf of the board

Mr S Klor
Director
28 November 2024
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

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

Principal activities

The company provides residential accommodation and nursing home facilities for the elderly.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr P Klor
Mr S Klor
Auditor

Lopian Gross Barnett & Co were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr S Klor
Director
28 November 2024
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED (CONTINUED)
- 6 -

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.

 

 

 

 

 

 

 

 

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Brodie FCA
Senior Statutory Auditor
For and on behalf of Lopian Gross Barnett & Co
28 November 2024
Chartered Accountants
Statutory Auditor
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
2,920,550
2,648,707
Cost of sales
(1,823,706)
(1,856,702)
Gross profit
1,096,844
792,005
Administrative expenses
(371,616)
(298,783)
Other operating income
14,201
1,715
Operating profit
4
739,429
494,937
Interest receivable and similar income
6
5,165
756
Interest payable and similar expenses
7
-
0
(2,442)
Profit before taxation
744,594
493,251
Taxation
8
(55,187)
(138,840)
Profit for the financial year
689,407
354,411

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

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
£
£
Profit for the year
689,407
354,411
Other comprehensive income
-
-
Total comprehensive income for the year
689,407
354,411
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
5,843,324
5,844,800
Investments
10
500
500
5,843,824
5,845,300
Current assets
Debtors
11
218,248
493,264
Cash at bank and in hand
462,163
261,080
680,411
754,344
Creditors: amounts falling due within one year
12
(695,665)
(1,423,389)
Net current liabilities
(15,254)
(669,045)
Total assets less current liabilities
5,828,570
5,176,255
Provisions for liabilities
Deferred tax liability
13
291,628
328,720
(291,628)
(328,720)
Net assets
5,536,942
4,847,535
Capital and reserves
Called up share capital
15
11,812
11,812
Revaluation reserve
1,415,870
1,415,870
Profit and loss reserves
4,109,260
3,419,853
Total equity
5,536,942
4,847,535

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
Mr S Klor
Director
Company registration number 01643943 (England and Wales)
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
11,812
1,415,870
3,065,442
4,493,124
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
354,411
354,411
Balance at 31 March 2023
11,812
1,415,870
3,419,853
4,847,535
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
689,407
689,407
Balance at 31 March 2024
11,812
1,415,870
4,109,260
5,536,942
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
242,127
224,170
Interest paid
-
0
(2,442)
Income taxes paid
(31,791)
(35,608)
Net cash inflow from operating activities
210,336
186,120
Investing activities
Purchase of tangible fixed assets
(14,418)
(26,653)
Interest received
5,165
756
Net cash used in investing activities
(9,253)
(25,897)
Net increase in cash and cash equivalents
201,083
160,223
Cash and cash equivalents at beginning of year
261,080
100,857
Cash and cash equivalents at end of year
462,163
261,080
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

The Grange Care Centre (Cheltenham) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, Cloister House, Riverside, New Bailey Street, Manchester, M3 5FS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Revenue represents income receivable from health and care provision services rendered and goods supplied. Revenue is stated net of value added taxation and other sales taxes, rebates and discounts. Revenue is recognised in the accounting period in which the company obtains the right to consideration in exchange for its performance.

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:

Land and buildings Freehold
No depreciation charged
Plant and machinery
15% reducing balance and 25% straight line
Fixtures, fittings & equipment
15% reducing balance and 20% straight line
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Due to the high standards that the freehold land and buildings are maintained the directors do not believe it to be necessary to provide for depreciation on the properties.

1.5
Fixed asset investments

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

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

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

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

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

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

1.8
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.

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

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

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

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

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.16

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the balance sheet date and that a payment will be required in settlement that can be estimated reliably. Where material, provisions are calculated on a discounted basis.

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
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.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Residential and nursing home provision
2,920,550
2,648,707
2024
2023
£
£
Other revenue
Interest income
5,165
756
Grants received
-
1,715
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(1,715)
Fees payable to the company's auditor for the audit of the company's financial statements
12,300
9,500
Depreciation of owned tangible fixed assets
15,894
15,570
5
Employees

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

2024
2023
Number
Number
General including nursing staff
68
57
Administration
5
4
Directors
2
2
Total
75
63
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,345,887
1,143,654
Social security costs
102,746
94,891
Pension costs
21,909
22,443
1,470,542
1,260,988
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
5,165
756
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
5,165
756
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
-
0
2,442
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
92,279
31,791
Adjustments in respect of prior periods
-
0
(34)
Total current tax
92,279
31,757
Deferred tax
Origination and reversal of timing differences
(37,092)
37,092
Changes in tax rates
-
0
69,991
Total deferred tax
(37,092)
107,083
Total tax charge
55,187
138,840
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
744,594
493,251
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
186,149
93,718
Tax effect of expenses that are not deductible in determining taxable profit
75
-
0
Adjustments in respect of prior years
(1,291)
(35)
Group relief
(88,750)
(54,677)
Permanent capital allowances in excess of depreciation
(3,904)
(7,249)
Deferred tax
(37,092)
107,083
Taxation charge for the year
55,187
138,840
9
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023
5,772,223
6,604
225,678
7,000
6,011,505
Additions
-
0
-
0
14,418
-
0
14,418
At 31 March 2024
5,772,223
6,604
240,096
7,000
6,025,923
Depreciation and impairment
At 1 April 2023
-
0
5,744
155,207
5,754
166,705
Depreciation charged in the year
-
0
132
15,451
311
15,894
At 31 March 2024
-
0
5,876
170,658
6,065
182,599
Carrying amount
At 31 March 2024
5,772,223
728
69,438
935
5,843,324
At 31 March 2023
5,772,223
860
70,471
1,246
5,844,800

The freehold and leasehold land and buildings were valued on an open market basis by a firm of independent Chartered Surveyors in April 2015.

If revalued assets were stated on historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Tangible fixed assets
(Continued)
- 20 -
2024
2023
£
£
Cost
4,134,716
4,134,716
10
Fixed asset investments
2024
2023
£
£
Listed investments
500
500
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
156,279
370,519
Amounts owed by group undertakings
46,296
-
0
Other debtors
4,651
108,685
Prepayments and accrued income
11,022
14,060
218,248
493,264
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
148,313
316,827
Amounts owed to group undertakings
210,848
700,312
Corporation tax
92,238
31,750
Other taxation and social security
27,538
150,470
Other creditors
98,718
105,438
Accruals and deferred income
118,010
118,592
695,665
1,423,389
THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
13
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
-
37,092
Revaluations
291,628
291,628
291,628
328,720
2024
Movements in the year:
£
Liability at 1 April 2023
328,720
Credit to profit or loss
(37,092)
Liability at 31 March 2024
291,628
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
21,909
22,443

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
11,812 Ordinary Shares of £1 each
11,812
11,812
16
Financial commitments, guarantees and contingent liabilities

The company has given security in respect of loans made to its parent entity Rico Healthcare Limited. The security is supported by a first legal charge over the property and associated assets of the company.

THE GRANGE CARE CENTRE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
17
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

2024
2023
Amounts due to related parties
£
£
Entities connected to the Klor family
86,416
22,840
18
Ultimate controlling party

The immediate parent company is The Grange Care Centre UK Limited, a company registered in England and Wales.

 

The ultimate controlling party is The Line Trust Corporation Limited as Trustees of The CSM Trust, registered in Gibraltar.

The smallest and largest group for which group accounts are drawn up is Rico Healthcare Limited, a company registered in England and Wales and copies of which can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

19
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
689,407
354,411
Adjustments for:
Taxation charged
55,187
138,840
Finance costs
-
0
2,442
Investment income
(5,165)
(756)
Depreciation and impairment of tangible fixed assets
15,894
15,570
Movements in working capital:
Decrease/(increase) in debtors
275,016
(64,823)
Decrease in creditors
(788,212)
(221,514)
Cash generated from operations
242,127
224,170
20
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
261,080
201,083
462,163
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