Company registration number 12104390 (England and Wales)
STOURBRIDGE CARE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
STOURBRIDGE CARE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
STOURBRIDGE CARE LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
48,570
58,625
Current assets
Debtors
4
574,055
367,522
Cash at bank and in hand
56,175
111,894
630,230
479,416
Creditors: amounts falling due within one year
5
(1,701,314)
(992,167)
Net current liabilities
(1,071,084)
(512,751)
Total assets less current liabilities
(1,022,514)
(454,126)
Creditors: amounts falling due after more than one year
6
(2,265,355)
(2,223,555)
Net liabilities
(3,287,869)
(2,677,681)
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
(3,287,870)
(2,677,682)
Total equity
(3,287,869)
(2,677,681)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 23 December 2024 and are signed on its behalf by:
C Hunt
Director
Company Registration No. 12104390
STOURBRIDGE CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information
Stourbridge Care Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old House, 64 The Avenue, Egham, TW20 9AD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of Stourbridge Care Home Holdings Limited. The registered address of the immediate parent company is The Old House, 64 The Avenue, Egham, TW20 9AD. These consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
1.2
Going concern
Notwithstanding the reported loss for the period and the closing net liabilities position, the directors believe it is appropriate to apply the going concern basis of accounting on the preparation of these financial statements. true
The directors have no reason to believe that financial support will be withdrawn by fellow group members or by the company's ultimate parent undertaking. Accordingly the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover represents income generated from the principal activity of the company, provision of residential care for the elderly. It is recognised at the point the attributable service is delivered. Turnover is recorded to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received and receivable, excluding discounts, rebates, value added tax and other sales taxes.
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:
Fixtures, fittings & equipment
20-25% straight line
Computer equipment
25% 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 credited or charged to profit or loss.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
STOURBRIDGE CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price. Financial assets classified as receivable within one year are not amortised.
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 and loans from fellow group companies, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Employee benefits
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.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
STOURBRIDGE CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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 leases asset are consumed.
2
Employees
The average monthly number of persons employed by the company during the year was 61 (2023: 57).
3
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 April 2023
83,510
25,177
108,687
Additions
13,080
13,080
At 31 March 2024
96,590
25,177
121,767
Depreciation and impairment
At 1 April 2023
30,598
19,464
50,062
Depreciation charged in the year
21,469
1,666
23,135
At 31 March 2024
52,067
21,130
73,197
Carrying amount
At 31 March 2024
44,523
4,047
48,570
At 31 March 2023
52,912
5,713
58,625
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
249,238
247,029
Amounts owed by group undertakings
90
Other debtors
324,727
120,493
574,055
367,522
STOURBRIDGE CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
5
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
63,529
64,390
Amounts owed to group undertakings
325,273
127,370
Taxation and social security
49,446
44,458
Other creditors
507,661
292,208
Accruals and deferred income
755,405
463,741
1,701,314
992,167
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
1,308,120
1,273,120
Other creditors
72,177
46,177
Accruals and deferred income
885,058
904,258
2,265,355
2,223,555
Other creditors due in greater than one year includes notional interest owed to group undertakings.
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Graham Rigby
Statutory Auditor:
Azets Audit Services
STOURBRIDGE CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
9
Financial commitments, guarantees and contingent liabilities
Certain entities in the group headed by Cinnamon Care Homes LP are party to unlimited cross guarantees in favour of Barclays Bank PLC, in respect of borrowings of various group companies. The entities party to this guarantee are as follows:
Stourbridge Care Home Limited
Stourbridge Care Limited
Sutton Coldfield Care Home Limited
Sutton Coldfield Care Limited
As at 31 March 2024, the net borrowings encompassed by the cross guarantee were £17,250,000 (2023: £18,172,000).
10
Related party transactions
The company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33 "Related party disclosures" and has not disclosed transactions with group undertaking for entities within the group headed by Stourbridge Care Home Holdings Limited.
At the balance sheet date, the company owed £325,273 (2023: £65,273) to Sutton Coldfield Care Limited. The balance is interest free and repayable on demand, and has been classified as falling due in less than one year.
During the year Cinnamon Care Collection Limited ("CCC"), a related party by virtue of common directorship paid central expenses on behalf of the company. Additionally, CCC charged a management fee to the company totalling £192,000 (2023: £177,600). At the balance sheet date, £17,251 (2023: £32,179) was owed to CCC.