Company registration number 01751038 (England and Wales)
ESTATE HOME DEVELOPMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
ESTATE HOME DEVELOPMENTS LIMITED
COMPANY INFORMATION
Directors
Mrs D Patel
Mr R Patel
Secretary
Mrs D Patel
Company number
01751038
Registered office
9 Spareleaze Hill
Loughton
Essex
IG10 1BS
Auditor
Alwyns LLP
Crown House
151 High Road
Loughton
Essex
IG10 4LG
ESTATE HOME DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 25
ESTATE HOME DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the Annual Report for the year ended 30 April 2024.

Review of the business

The principal activity of the group continued to be that of the running of a care home.

 

“Our care your happiness” remains the group’s overriding motto. Continued focus on customers’ needs is followed up by the highest quality of care and support across all activities. As always, the structure and scope of this care quality is constantly monitored by the group’s governance teams and home managers. Keeping in mind its corporate responsibility and sustainability, the group’s indicators have generally remained over and above regulatory, local authority, and NHS requirements.

 

The group is managed and remains a part of the banking arrangement with the larger Abbey Total Care Group. There is an appropriate risk management structure in place which is designed to identify, manage and mitigate business risk. The group’s continuous risk assessment and evaluation has ensured there are no matters that could have a material impact on its financial position.

 

As in previous years, the care home continues to be regulated by the Care Quality Commission (CQC), and is fully compliant with health and safety, labour, and employment laws. The group’s compliance performance compares favourably with other providers of a similar scale. The directors are committed to focusing on delivering organic growth by reinvesting profits each year.

 

The group considers its Key Performance Indicators to be number of beds available, occupancy rate and average fee per bed which are continually being reviewed. During the year average occupancy remained at a steady level whilst average fee per bed increased by 23.4% leading to an increase in turnover compared to the prior year.

 

Principal risks

The group monitors and understands prevailing risk for its business and its balance sheet, and by assessing how they interact. By understanding these risks, it seeks appropriate opportunities for risk diversification and management. Local authorities and the NHS continue to restrict annual fee increments and have also lengthened payment periods. The group manages cashflow ensuring all of its members have adequate cash resources to deal with this. The group is confident of maintaining its growth momentum well into the foreseeable future.

 

The care market remains challenging, and the ravaging effects of the pandemic are not yet over. The recruitment of healthcare workers is an ongoing sector-wide issue, with rising inflation resulting in increasing costs for the businesses. The war in Ukraine also has some consequences, chiefly the rising food cost. The group is in a good position to adapt to the changing circumstances, keeping in mind their customers, the need for growth, and sustainability.

On behalf of the board

Mr R Patel
Director
14 January 2025
ESTATE HOME DEVELOPMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Directors

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

Mrs D Patel
Mr R Patel
Results and dividends

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

Interim dividends were paid amounting to £75,607. The directors do not recommend payment of a final dividend.

Financial instruments
The financial instruments are managed on a unified basis with Abbey Total Care Group Limited which is the lead company for the credit facilities.
Treasury operations and financial instruments

The group's principal financial instruments are credit facilities and loans, the main purpose of which is to finance the group's operations. In addition the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to fair value interest rate risk on its borrowings and cashflow interest rate risk on bank overdrafts and loans. The risk has been partially mitigated with an interest rate cap over more than 50% of its bank debt. The group ensures sufficient cash resources are always maintained to mitigate its exposure to excessive interest rate increases.

Credit risk

Investments of cash surpluses and borrowings are made through banks which must fulfil credit rating criteria approved by the Board. All service users enter into formal agreements with the group which stipulate payment terms. The directors regularly review trade debtors and pursue any outstanding debts on a timely basis. Where necessary, provisions are made for doubtful debts.

Future developments

The directors are looking to continue to improve the occupancy levels to build on the existing profitability.

Auditor

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

ESTATE HOME DEVELOPMENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 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. They are 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.

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 R Patel
Director
14 January 2025
ESTATE HOME DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESTATE HOME DEVELOPMENTS LIMITED
- 4 -
Opinion

We have audited the financial statements of Estate Home Developments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group profit and loss account, 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 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 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 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 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:

ESTATE HOME DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ESTATE HOME DEVELOPMENTS LIMITED
- 5 -
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 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 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 directors either intend to liquidate the parent 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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Audit procedures undertaken in responses to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claim; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As stated above, there is an unavoidable risk that material misstatements my not be detected, even though the audit have been planned and performed in accordance with ISAs (UK).

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.

ESTATE HOME DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ESTATE HOME DEVELOPMENTS LIMITED
- 6 -

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.

David Stanley (Senior Statutory Auditor)
For and on behalf of Alwyns LLP
14 January 2025
Chartered Accountants
Statutory Auditor
Crown House
151 High Road
Loughton
Essex
IG10 4LG
ESTATE HOME DEVELOPMENTS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
5
7,542,845
5,929,355
Cost of sales
(4,149,234)
(3,615,444)
Gross profit
3,393,611
2,313,911
Administrative expenses
(712,485)
(531,547)
Other operating income
108,048
116,845
Operating profit
3
2,789,174
1,899,209
Interest payable and similar expenses
8
(61,992)
(59,079)
Profit before taxation
2,727,182
1,840,130
Tax on profit
9
(685,786)
(362,940)
Profit for the financial year
2,041,396
1,477,190
Profit for the financial year is all attributable to the owner of the parent company.

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

ESTATE HOME DEVELOPMENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
£
£
Profit for the year
2,041,396
1,477,190
Other comprehensive income
Revaluation of tangible fixed assets
-
0
8,518,571
Cash flow hedges gain arising in the year
-
0
-
0
Tax relating to other comprehensive income
-
0
(2,129,002)
Other comprehensive income for the year
-
0
6,389,569
Total comprehensive income for the year
2,041,396
7,866,759
Total comprehensive income for the year is all attributable to the owner of the parent company.
ESTATE HOME DEVELOPMENTS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
17,483,145
17,516,981
Current assets
Debtors
14
1,676,672
1,074,875
Cash at bank and in hand
265,194
2,478,343
1,941,866
3,553,218
Creditors: amounts falling due within one year
15
(1,463,037)
(5,074,014)
Net current assets/(liabilities)
478,829
(1,520,796)
Total assets less current liabilities
17,961,974
15,996,185
Provisions for liabilities
Deferred tax liability
17
2,773,497
2,773,497
(2,773,497)
(2,773,497)
Net assets
15,188,477
13,222,688
Capital and reserves
Called up share capital
18
101
101
Revaluation reserve
9,231,463
9,231,463
Profit and loss reserves
5,956,913
3,991,124
Total equity
15,188,477
13,222,688

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

The financial statements were approved by the board of directors and authorised for issue on 14 January 2025 and are signed on its behalf by:
14 January 2025
Mr R Patel
Director
Company registration number 01751038 (England and Wales)
ESTATE HOME DEVELOPMENTS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
1,100
1,100
Current assets
Debtors
14
-
0
81,100
Cash at bank and in hand
133,735
46,711
133,735
127,811
Creditors: amounts falling due within one year
15
(35,932)
(30,008)
Net current assets
97,803
97,803
Net assets
98,903
98,903
Capital and reserves
Called up share capital
18
101
101
Profit and loss reserves
98,802
98,802
Total equity
98,903
98,903

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 £75,607 (2023 - £82,481 profit).

The financial statements were approved by the board of directors and authorised for issue on 14 January 2025 and are signed on its behalf by:
14 January 2025
Mr R Patel
Director
Company registration number 01751038 (England and Wales)
ESTATE HOME DEVELOPMENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
101
2,841,894
2,596,415
5,438,410
Year ended 30 April 2023:
Profit for the year
-
-
1,477,190
1,477,190
Other comprehensive income:
Revaluation of tangible fixed assets
-
8,518,571
-
8,518,571
Tax relating to other comprehensive income
-
(2,129,002)
-
0
(2,129,002)
Total comprehensive income
-
6,389,569
1,477,190
7,866,759
Dividends
10
-
-
(82,481)
(82,481)
Balance at 30 April 2023
101
9,231,463
3,991,124
13,222,688
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
2,041,396
2,041,396
Dividends
10
-
-
(75,607)
(75,607)
Balance at 30 April 2024
101
9,231,463
5,956,913
15,188,477
ESTATE HOME DEVELOPMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
101
98,802
98,903
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
82,481
82,481
Dividends
10
-
(82,481)
(82,481)
Balance at 30 April 2023
101
98,802
98,903
Year ended 30 April 2024:
Profit and total comprehensive income
-
75,607
75,607
Dividends
10
-
(75,607)
(75,607)
Balance at 30 April 2024
101
98,802
98,903
ESTATE HOME DEVELOPMENTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
22
(1,261,521)
2,526,474
Interest paid
(61,992)
(59,079)
Income taxes paid
(787,807)
(527,198)
Net cash (outflow)/inflow from operating activities
(2,111,320)
1,940,197
Investing activities
Purchase of tangible fixed assets
(26,222)
(16,920)
Net cash used in investing activities
(26,222)
(16,920)
Financing activities
Dividends paid to equity shareholders
(75,607)
(82,481)
Net cash used in financing activities
(75,607)
(82,481)
Net (decrease)/increase in cash and cash equivalents
(2,213,149)
1,840,796
Cash and cash equivalents at beginning of year
2,478,343
637,547
Cash and cash equivalents at end of year
265,194
2,478,343
ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
1
Accounting policies
Company information

Estate Home Developments Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 9 Spareleaze Hill, Loughton, Essex, IG10 1BS.

 

The group consists of Estate Home Developments 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 group. Monetary amounts in these financial statements are rounded to the nearest whole pound.

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group that prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

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. 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.

The consolidated financial statements incorporate those of Estate Home Developments Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 30 April 2024 and share consistent accounting policies.

 

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.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -

The group is dependant upon the support of Abbey Total Care Group Limited given the shared bank facilities. The directors are confident that this support will continue and therefore the financial statements have been prepared on the going concern basis.

1.4
Turnover

Turnover represents amounts receivable for services provided.

1.5
Tangible fixed assets

Tangible fixed assets other than freehold land and buildings are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Freehold land and buildings are stated at valuation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment
25% reducing balance
Equipment (short life)
over a period of 3 years
Integral features
10% 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 recognised in the profit and loss account.

1.6
Fixed asset investments

In the parent company financial statements, investments in subsidiaries 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.

1.7
Impairment of fixed assets

At each reporting period end date, the group 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 group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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 through the profit and loss account, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.9
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, amounts due from group undertakings 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.

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 through the profit and loss account.

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans 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.

 

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.

ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities

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 though 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.

1.10
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.

1.11
Taxation
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.

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.

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

The group operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period to which they relate.

1.14
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Government grants

Government grants are recognised 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.

1.16

Liquid resources

Liquid resources for the purpose of preparing the cashflow statement includes cash at bank and in hand.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

Tangible Fixed Assets (Note 11)

Freehold land and buildings are reflected at fair valued based upon valuation from quantity surveyors. Calculation of the valuation requires judgements to be made and estimates based on information at the time of the valuation including the competitive and economic environment.

Trade debtors (Note 14)

At each reporting date the company assesses whether there is any indication of the non recovery of trade debts. If any such indication exists a provision is recognised based on the director's estimate of amounts recoverable.

3
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(10,260)
Depreciation of owned tangible fixed assets
60,058
63,965
ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
7,956
8,100
5
Turnover and other revenue

The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

 

 

6
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
Resident Welfare
111
109
-
-
Management
5
7
2
2
Total
116
116
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,731,065
3,194,084
-
0
-
0
Social security costs
256,191
269,142
-
-
Pension costs
46,753
45,000
-
0
-
0
4,034,009
3,508,226
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
127,000
118,514

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
Directors' remuneration
(Continued)
- 20 -

The directors received no accrued pension benefits from the company or group in either of the two years.

8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
61,992
59,079
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
685,786
362,807
Adjustments in respect of prior periods
-
0
133
Total current tax
685,786
362,940

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
2,727,182
1,840,130
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
681,796
358,825
Tax effect of expenses that are not deductible in determining taxable profit
129
-
0
Timing differences of capital allowances and depreciation
3,862
5,105
Enhanced capital allowances
-
0
(990)
Other tax adjustments
(1)
-
0
Taxation charge
685,786
362,940

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
2,129,002
ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
75,607
82,481
11
Tangible fixed assets
Group
Land and buildings Freehold
Fixtures, fittings & equipment
Total
£
£
£
Cost or valuation
At 1 May 2023
17,103,928
1,563,627
18,667,555
Additions
-
0
26,222
26,222
At 30 April 2024
17,103,928
1,589,849
18,693,777
Depreciation and impairment
At 1 May 2023
-
0
1,150,574
1,150,574
Depreciation charged in the year
-
0
60,058
60,058
At 30 April 2024
-
0
1,210,632
1,210,632
Carrying amount
At 30 April 2024
17,103,928
379,217
17,483,145
At 30 April 2023
17,103,928
413,053
17,516,981
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.

Land and buildings were revalued during the prior year based on a valuation concluded on 24 May 2023 by Knight Frank LLP, independent valuers not connected with the company, on the basis of market value as defined in the publication RICS Valuation - Global Standards, which incorporate the International Valuation Standards and the RICS UK National Supplement.

 

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

2024
2023
£
£
Group
Cost
5,172,423
5,172,423
ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,100
1,100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
1,100
Carrying amount
At 30 April 2024
1,100
At 30 April 2023
1,100
13
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Ashbrook Care Services Limited
United Kingdom
Ordinary
100.00
Onetree Estates Limited
United Kingdom
Ordinary
100.00
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
619,760
641,557
-
0
-
0
Corporation tax recoverable
192,590
47,503
-
0
-
0
Amounts owed by group undertakings
-
-
-
81,100
Other debtors
796,864
147,099
-
0
-
0
Prepayments and accrued income
67,458
238,716
-
0
-
0
1,676,672
1,074,875
-
81,100
ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
658,288
401,764
-
0
-
0
Amounts owed to group undertakings
-
0
(90)
6,834
910
Corporation tax payable
229,485
186,419
-
0
-
0
Other taxation and social security
135,119
184,838
-
-
Other creditors
425,558
4,009,233
29,098
29,098
Accruals and deferred income
14,587
291,850
-
0
-
0
1,463,037
5,074,014
35,932
30,008
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
46,753
45,000

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.

 

 

17
Deferred taxation

Deferred tax assets and liabilities are offset where the group or 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
Group
£
£
Advanced Capital allowances
73,455
73,455
Revaluation of freehold properties
2,700,042
2,700,042
2,773,497
2,773,497
The company has no deferred tax assets or liabilities.
There were no deferred tax movements in the year.
18
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
101
101
101
101
ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
19
Financial commitments, guarantees and contingent liabilities

At the balance sheet date there were contingent liabilities covering all the group entities in respect of a debenture and unlimited intercompany guarantees to secure the bank loan and overdraft facilities of Abbey Total Care Group Limited of £38,981,408 by first legal charge over the assets of the group. This joint facility also secured the bank facility of the group.

20
Controlling party

The controlling party in both financial years is considered to be Mr R M Patel, by virtue of his majority shareholding.

21
Related party transactions

Group

The group has taken advantage of the exemption from the requirement to disclose transactions with group companies which have been eliminated on consolidation.

 

During the year dividends of £75,607 (2023 - £82,481) were paid to Mr R Patel.

 

At the year end the following balances were owed by/(to) companies controlled by Mr R Patel's brother:

2024
2023
£
£
Company controlled by a family member of the directors
Repairs and maintenance expenses
171,360
105,749
Interest expenses
61,992
59,079
2024
2023
£
£
Amounts owed to group controlled by a family member of the directors
1,101,446
3,192,812
Amounts owed by directors (interest free and repayable on demand)
572,304
142,463
ESTATE HOME DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
22
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit after taxation
2,041,396
1,477,190
Adjustments for:
Taxation charged
685,786
362,940
Finance costs
61,992
59,079
Depreciation and impairment of tangible fixed assets
60,058
63,965
Movements in working capital:
Increase in debtors
(456,710)
(388,259)
(Decrease)/increase in creditors
(3,654,043)
951,559
Cash (absorbed by)/generated from operations
(1,261,521)
2,526,474
23
Analysis of changes in net funds - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
2,478,343
(2,213,149)
265,194
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