Company registration number NI036777 (Northern Ireland)
PARKLINE ENTERPRISES LIMITED
CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PARKLINE ENTERPRISES LIMITED
COMPANY INFORMATION
Director
Mr P Stewart
Secretary
Mr P Stewart
Company number
NI036777
Registered office
4-6 Killane Road
Limavady
Co Londonderry
BT49 0DN
Auditor
GMcG BELFAST
Chartered Accountants & Statutory Auditor
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
Bankers
Bank of Ireland
Corporate & Business Banking
1 Donegall Square South
Belfast
BT1 5LR
Solicitors
Hool Law
15 - 17 Chichester Street
Belfast
BT1 4JB
PARKLINE ENTERPRISES LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
PARKLINE ENTERPRISES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The director presents the strategic report for the year ended 31 March 2024.

Business Review

The principal activities of the group during the year were the holding of investment properties for rental return and the provision of domiciliary healthcare and nursing services.

 

The director is pleased with the performance of the group during the year. Rental income from investment property increased following the addition of one property in the year and the group's portfolio had almost full occupancy for most of the year, other than short vacant periods between tenancies. In addition, there has been no material change in the market value of properties. The group's provision of healthcare and nursing related services continues to grow and remains profitable.

Principal risks and uncertainties

The director is mindful of the risks and uncertainties facing the business, such as rising costs, loss of contracts, falls in property valuations, tenancy arrears and increases in interest rates. The director focuses strongly on managing these risks. The director is confident that the business has the reputation and resources to adequately equip the group to overcome the impact of these risks and uncertainties in the future.

Financial Key Performance Indicators

The director considers the group's key financial performance indicators to be those that communicate the financial performance and strength of the company as a whole; these being turnover, gross profit, net profit before taxation and net assets.

 

During the year the group generated total income of £16.70 million (2023 - £16.40 million) which is made up of rental income totalling £459k (2023 - £424k) from the group's investment property portfolio, and income of £16.24 million (2023 - £15.98 million) from the provision of healthcare and nursing related services. Gross profit increased to £1.94 million (2023 - £1.67 million).

 

The group recorded a profit before taxation of £544k (2023 - £962k). The prior year results included fair value gains of £170k from investment property. At the year end the group balance sheet had net assets of £5.71 million (2023 - £5.33 million). The director is confident that the group will continue to generate significant profits through the subsidiary company, North West Care and Support Limited, and that the company will continue to generate satisfactory returns from its investment property portfolio in the coming years.

On behalf of the board

Mr P Stewart
Director
14 October 2024
PARKLINE ENTERPRISES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The director presents his annual report and financial statements for the year ended 31 March 2024.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

Mr P Stewart
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Auditor

The auditor, GMcG BELFAST, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

PARKLINE ENTERPRISES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr P Stewart
Director
14 October 2024
PARKLINE ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PARKLINE ENTERPRISES LIMITED
- 4 -
Opinion

We have audited the financial statements of Parkline Enterprises Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group and parent 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 director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.

PARKLINE ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARKLINE ENTERPRISES LIMITED
- 5 -

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 director is 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:

PARKLINE ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARKLINE ENTERPRISES LIMITED
- 6 -
Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has 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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

PARKLINE ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARKLINE ENTERPRISES LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the group for fraud and identified the greatest potential for fraud in revenue recognition, payroll and property valuations. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company and group’s ability to operate or to avoid a material penalty.

PARKLINE ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARKLINE ENTERPRISES LIMITED
- 8 -
Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing 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. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all 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.

PARKLINE ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARKLINE ENTERPRISES LIMITED
- 9 -

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.

Mrs Susan Dunlop FCA (Senior Statutory Auditor)
For and on behalf of GMcG BELFAST
14 October 2024
Chartered Accountants
Statutory Auditor
Chartered Accountants & Statutory Auditor
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
PARKLINE ENTERPRISES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
as restated
Notes
£
£
Turnover
3
16,695,825
16,400,646
Cost of sales
(14,760,634)
(14,733,699)
Gross profit
1,935,191
1,666,947
Administrative expenses
(1,289,552)
(1,167,813)
Other operating income
-
304,036
Operating profit
4
645,639
803,170
Interest payable and similar expenses
6
(101,350)
(10,710)
Fair value gains and losses on investment properties
10
-
0
169,500
Profit before taxation
544,289
961,960
Tax on profit
7
(162,783)
(172,434)
Profit for the financial year
21
381,506
789,526
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
PARKLINE ENTERPRISES LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
8
113,525
227,050
Other intangible assets
8
59,940
-
0
Total intangible assets
173,465
227,050
Tangible assets
9
203,162
270,135
Investment property
10
7,940,569
7,816,000
8,317,196
8,313,185
Current assets
Debtors
13
1,107,464
916,669
Cash at bank and in hand
1,225,463
1,147,092
2,332,927
2,063,761
Creditors: amounts falling due within one year
14
(3,635,261)
(4,797,627)
Net current liabilities
(1,302,334)
(2,733,866)
Total assets less current liabilities
7,014,862
5,579,319
Creditors: amounts falling due after more than one year
15
(1,264,884)
(195,406)
Provisions for liabilities
Deferred tax liability
18
36,655
52,096
(36,655)
(52,096)
Net assets
5,713,323
5,331,817
Capital and reserves
Called up share capital
20
2
2
Profit and loss reserves
21
5,713,321
5,331,815
Total equity
5,713,323
5,331,817

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

The financial statements were approved and signed by the director and authorised for issue on 14 October 2024
14 October 2024
Mr P Stewart
Director
Company registration number NI036777 (Northern Ireland)
PARKLINE ENTERPRISES LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
10
7,940,569
7,816,000
Investments
11
837,313
837,313
8,777,882
8,653,313
Current assets
Debtors
13
27,962
35,037
Cash at bank and in hand
73,137
26,520
101,099
61,557
Creditors: amounts falling due within one year
14
(2,127,862)
(3,441,123)
Net current liabilities
(2,026,763)
(3,379,566)
Total assets less current liabilities
6,751,119
5,273,747
Creditors: amounts falling due after more than one year
15
(1,173,645)
(92,718)
Net assets
5,577,474
5,181,029
Capital and reserves
Called up share capital
20
2
2
Profit and loss reserves
21
5,577,472
5,181,027
Total equity
5,577,474
5,181,029

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £396,445 (2023 - £626,311 profit).

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

The financial statements were approved and signed by the director and authorised for issue on 14 October 2024
14 October 2024
Mr P Stewart
Director
Company registration number NI036777 (Northern Ireland)
PARKLINE ENTERPRISES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
2
4,542,289
4,542,291
Year ended 31 March 2023:
Profit and total comprehensive income
-
789,526
789,526
Balance at 31 March 2023
2
5,331,815
5,331,817
Year ended 31 March 2024:
Profit and total comprehensive income
-
381,506
381,506
Balance at 31 March 2024
2
5,713,321
5,713,323
PARKLINE ENTERPRISES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
2
4,554,717
4,554,719
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
626,310
626,310
Balance at 31 March 2023
2
5,181,027
5,181,029
Year ended 31 March 2024:
Profit and total comprehensive income
-
396,445
396,445
Balance at 31 March 2024
2
5,577,472
5,577,474
PARKLINE ENTERPRISES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
608,555
970,867
Interest paid
(101,350)
(10,710)
Income taxes paid
(120,268)
(151,567)
Net cash inflow from operating activities
386,937
808,590
Investing activities
Purchase of intangible assets
(101,940)
(95,000)
Purchase of tangible fixed assets
(10,704)
(114,477)
Purchase of investment property
(124,569)
-
Net cash used in investing activities
(237,213)
(209,477)
Financing activities
Repayment of borrowings
(1,250,000)
(509,436)
Proceeds from new bank loans
1,481,115
-
Repayment of bank loans
(291,019)
(79,470)
Payment of finance leases obligations
(11,449)
(22,863)
Net cash used in financing activities
(71,353)
(611,769)
Net increase/(decrease) in cash and cash equivalents
78,371
(12,656)
Cash and cash equivalents at beginning of year
1,147,092
1,159,748
Cash and cash equivalents at end of year
1,225,463
1,147,092
PARKLINE ENTERPRISES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
118,569
334,910
Interest paid
(88,970)
(8,323)
Income taxes paid
(48,509)
(35,461)
Net cash (outflow)/inflow from operating activities
(18,910)
291,126
Investing activities
Purchase of investment property
(124,569)
-
0
Dividends received
250,000
250,000
Net cash generated from investing activities
125,431
250,000
Financing activities
Repayment of borrowings
(1,250,000)
(509,436)
Proceeds from new bank loans
1,481,115
-
Repayment of bank loans
(291,019)
(79,470)
Net cash used in financing activities
(59,904)
(588,906)
Net increase/(decrease) in cash and cash equivalents
46,617
(47,780)
Cash and cash equivalents at beginning of year
26,520
74,300
Cash and cash equivalents at end of year
73,137
26,520
PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1
Accounting policies
Company information

Parkline Enterprises Limited (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is Alfred House, 19 Alfred Street, Belfast, BT2 8EQ.

 

The group consists of Parkline Enterprises Limited and all of its subsidiaries.

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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Parkline Enterprises Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (Continued)
- 18 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

Rental income from investment properties is recognised as turnover on a straight line basis over the period of tenancy.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

 

Goodwill has been amortised in line with the length of the contract purchased at 41% per annum straight line.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website
33% per annum straight line
1.8
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.

PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (Continued)
- 19 -

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:

Fixtures and fittings
10-33% per annum straight line
Motor vehicles
20% per annum straight line

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 recognised in the profit and loss account.

1.9
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.11
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (Continued)
- 20 -
1.12
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.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

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

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 group 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 group after deducting all of its liabilities.

PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (Continued)
- 21 -
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.

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 group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (Continued)
- 22 -
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 if, and only if, there is 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.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
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.

1.20
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.

PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revaluation of Property

Fair value is determined annually and derived from the current market rents and investment property yields for comparable real estate. Valuation involves some estimation uncertainty.

Debtors

Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty.

Taxation

Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective charge. The management used external professional advice to support the year end tax provisions.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Rental return from investment properties
459,155
424,396
Provision of healthcare services
16,236,670
15,976,250
16,695,825
16,400,646
2024
2023
£
£
Other revenue
Grants received
-
304,036

All turnover arose within the United Kingdom.

PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
520
313
Government grants
-
(304,036)
Fees payable to the group's auditor for the audit of the group's financial statements
6,240
4,950
Depreciation of owned tangible fixed assets
50,277
34,886
Depreciation of tangible fixed assets held under finance leases
27,400
9,133
Amortisation of intangible assets
113,525
47,302
Operating lease charges
150,012
134,551
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Nursing staff
750
925
-
-
Management staff
53
59
-
-
Total
803
984
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
13,435,744
13,353,786
-
0
-
0
Social security costs
854,206
894,410
-
-
Pension costs
280,775
283,264
-
0
-
0
14,570,725
14,531,460
-
0
-
0
PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
6
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
88,970
8,323
Other finance costs:
Interest on finance leases and hire purchase contracts
10,190
2,547
Other interest
2,190
(160)
Total finance costs
101,350
10,710
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
180,562
122,728
Adjustments in respect of prior periods
(2,338)
-
0
Total current tax
178,224
122,728
Deferred tax
Origination and reversal of timing differences
(15,441)
49,706
Total tax charge
162,783
172,434

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
544,289
961,960
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
136,072
182,772
Tax effect of income not taxable in determining taxable profit
29,049
(22,242)
Adjustments in respect of prior years
(2,338)
-
0
Effect of change in tax rate
-
0
11,904
Taxation charge
162,783
172,434
PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
8
Intangible fixed assets
Group
Goodwill
Website
Total
£
£
£
Cost
At 1 April 2023 (as restated)
274,352
-
0
274,352
Additions
-
0
59,940
59,940
At 31 March 2024
274,352
59,940
334,292
Amortisation and impairment
At 1 April 2023 (as restated)
47,302
-
0
47,302
Amortisation charged for the year
113,525
-
0
113,525
At 31 March 2024
160,827
-
0
160,827
Carrying amount
At 31 March 2024
113,525
59,940
173,465
At 31 March 2023
227,050
-
0
227,050
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
9
Tangible fixed assets
Group
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 April 2023
206,126
223,204
429,330
Additions
10,704
-
0
10,704
Disposals
(18,413)
-
0
(18,413)
At 31 March 2024
198,417
223,204
421,621
Depreciation and impairment
At 1 April 2023
146,268
12,927
159,195
Depreciation charged in the year
33,036
44,641
77,677
Eliminated in respect of disposals
(18,413)
-
0
(18,413)
At 31 March 2024
160,891
57,568
218,459
Carrying amount
At 31 March 2024
37,526
165,636
203,162
At 31 March 2023
59,858
210,277
270,135
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Tangible fixed assets (Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
100,467
127,867
-
0
-
0
10
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 April 2023
7,816,000
7,816,000
Additions through external acquisition
124,569
124,569
At 31 March 2024
7,940,569
7,940,569

Investment property comprises the group's investment property portfolio. The fair value of the investment property has been arrived at on the basis of a valuation carried out the director. The valuation was made on an open market value for existing use basis.

11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
837,313
837,313
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
837,313
Carrying amount
At 31 March 2024
837,313
At 31 March 2023
837,313
PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
12
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
North West Care and Support Limited
1
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
4-6 Killane Road, Limavady, Co. Londonderry, BT49 0DN

The principal activity of the subsidiary company is the provision of nursing and healthcare services.

13
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
855,852
633,655
-
0
-
0
Other debtors
1,822
25,240
1,822
13,936
Prepayments and accrued income
249,790
257,774
26,140
21,101
1,107,464
916,669
27,962
35,037
14
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
as restated
Notes
£
£
£
£
Bank loans
16
188,639
79,470
188,639
79,470
Obligations under finance leases
17
11,449
11,449
-
0
-
0
Other borrowings
16
1,500,000
2,750,000
1,500,000
2,750,000
Trade creditors
87,749
71,059
552
12
Amounts owed to group undertakings
-
0
-
0
363,557
533,085
Corporation tax payable
180,567
122,611
48,817
48,511
Other taxation and social security
287,547
324,499
-
-
Deferred income
50,529
-
0
-
0
-
0
Other creditors
1,118,139
1,272,323
7,946
7,733
Accruals and deferred income
210,642
166,216
18,351
22,312
3,635,261
4,797,627
2,127,862
3,441,123

Bank loans at the year end are secured by way of fixed charges over the group's properties, debentures charging the assets and undertakings of Parkline Enterprises Limited and North West Care and Support Limited, an unlimited cross company guarantee between the aforementioned companies, director's guarantees, and an assignment of rental income.

 

Obligations under finance leases are secured on the assets to which they relate.

PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
15
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
16
1,173,645
92,718
1,173,645
92,718
Obligations under finance leases
17
91,239
102,688
-
0
-
0
1,264,884
195,406
1,173,645
92,718

Bank loans and finance leases are secured as disclosed in the previous note.

16
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,362,284
172,188
1,362,284
172,188
Loans from related parties
1,500,000
2,750,000
1,500,000
2,750,000
2,862,284
2,922,188
2,862,284
2,922,188
Payable within one year
1,688,639
2,829,470
1,688,639
2,829,470
Payable after one year
1,173,645
92,718
1,173,645
92,718

Bank loans are repayable by monthly instalments until April 2031 at an interest rate of 3% over base rate and £505,080 is repayable over 5 years. No interest is charged on other loans and they are repayable on demand.

17
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
11,449
11,449
-
0
-
0
In two to five years
91,239
102,688
-
0
-
0
102,688
114,137
-
-
PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Origination and reversal of timing differences
46,823
63,229
Other timing differences
(10,168)
(11,133)
36,655
52,096
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
52,096
-
Credit to profit or loss
(15,441)
-
Liability at 31 March 2024
36,655
-
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
280,775
283,264

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
21
Profit and loss reserves

Profit & loss account

The profit & loss account represents the accumulated profits of the group and company, including £567,377 that is not available for distribution.

22
Financial commitments, guarantees and contingent liabilities

At 31 March 2024 there exists an unlimited cross company guarantee between Parkline Enterprises Limited and North West Care and Support Limited as security for bank borrowings. The company had no exposure under this guarantee at the balance sheet date.

23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
62,661
160,459
-
-
Between two and five years
13,734
54,003
-
-
In over five years
18,856
-
-
-
95,251
214,462
-
-
24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
504,259
326,314
PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
24
Related party transactions (Continued)
- 32 -
Transactions with related parties

 

Corvally Holdings Limited

At the start of the year a loan balance of £2,750,000 was due from Parkline Enterprise Limited to Corvally Holdings Limited, a company that was under common control. At the year end, the total amount outstanding in relation to amounts loaned by Corvally Holdings Limited was £1,500,000.

 

The balance is deemed to be repayable on demand and no interest is charged on the outstanding amounts.

 

The director has taken advantage of the exemption from disclosing related party transactions with other wholly owned group companies, in accordance with FRS 102.

25
Directors' transactions

At the balance sheet date an amount of £3,610 (2023 - £3,610) was due to the director. No interest is charged on the outstanding amount and it is considered to be repayable on demand.

 

The director has also provided an interest cover guarantee in the sum of £200,000 and a personal guarantee in the sum of £500,000 as security for the company's bank borrowings.

26
Controlling party

The company was under the control of Mr P Stewart throughout the current and previous year. Mr P Stewart is a director and sole shareholder in the company.

27
Cash generated from group operations
2024
2023
as restated
£
£
Profit for the year after tax
381,506
789,526
Adjustments for:
Taxation charged
162,783
172,434
Finance costs
101,350
10,710
Fair value gain on investment properties
-
0
(169,500)
Amortisation and impairment of intangible assets
113,525
47,302
Depreciation and impairment of tangible fixed assets
77,677
44,019
Movements in working capital:
(Increase)/decrease in debtors
(190,795)
795
(Decrease)/increase in creditors
(88,020)
75,581
Increase in deferred income
50,529
-
Cash generated from operations
608,555
970,867
PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
28
Cash generated from operations - company
2024
2023
£
£
Profit for the year after tax
396,445
626,310
Adjustments for:
Taxation charged
48,815
48,511
Finance costs
88,970
8,323
Investment income
(250,000)
(250,000)
Fair value gain on investment properties
-
0
(169,500)
Movements in working capital:
Decrease/(increase) in debtors
7,075
(13,986)
(Decrease)/increase in creditors
(172,736)
85,252
Cash generated from operations
118,569
334,910
29
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,147,092
78,371
1,225,463
Borrowings excluding overdrafts
(2,922,188)
59,904
(2,862,284)
Obligations under finance leases
(114,137)
11,449
(102,688)
(1,889,233)
149,724
(1,739,509)
30
Analysis of changes in net debt - company
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
26,520
46,617
73,137
Borrowings excluding overdrafts
(2,922,188)
59,904
(2,862,284)
(2,895,668)
106,521
(2,789,147)
PARKLINE ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
31
Prior period adjustment
Reconciliation of changes in equity - group
1 April
31 March
2022
2023
£
£
Adjustments to prior year
Amortisation
-
(30,923)
Equity as previously reported
4,542,291
5,362,740
Equity as adjusted
4,542,291
5,331,817
Analysis of the effect upon equity
Profit and loss reserves
-
(30,923)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Amortisation
(30,923)
Profit as previously reported
820,449
Profit as adjusted
789,526
Reconciliation of changes in equity - company
Notes to reconciliation
Goodwill

During the prior year the company acquired the trade and assets of another domiciliary care business. The amount of consideration payable for this acquisition was not recognised in full at the prior year end and, as such, goodwill and creditors were understated. A prior year adjustment has been processed and the impact of the adjustment has been to increase intangible fixed assets and creditors by £179,352, and amortisation charges by £30,923 in the year ended 31 March 2023.

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