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Registration number: 04923339

Littlecombe Park Limited

Annual Report and Financial Statements

for the Year Ended 30 April 2024

 

Littlecombe Park Limited

Contents

Company Information

1

Director's Report

2

Strategic Report

3

Statement of Director's Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 22

 

Littlecombe Park Limited

Company Information

Director

J C Hawkins

Company secretary

J C Hawkins

Registered office

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Littlecombe Park Limited

Director's Report for the Year Ended 30 April 2024

The director presents his report and the financial statements for the year ended 30 April 2024.

Director of the company

The director who held office during the year was as follows:

J C Hawkins

Future developments

The company operates a small care village comprising close-care Apartments and two care homes; The Hollies Care Centre and Holly Oak Dementia Care centre. Holly Oak has now been open since January 2021 and both homes are steadily filling with new residents, following the end of the Covid-19 pandemic.

The care homes continue to provide very high quality care in a luxury environment. In April 2022 we were proud to attain renewal of our Gold Standard Framework accreditation at the highest platinum level.

With the increasing demographic move towards an ageing population the director believes that the company with it’s long experience and strong reputation is well placed to continue at the forefront of elderly care provision in Gloucestershire. The company will continue to improve financial performance and stability.

Disclosure of information to the auditors

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the director on 17 January 2025

.........................................
J C Hawkins
Director

 

Littlecombe Park Limited

Strategic Report for the Year Ended 30 April 2024

The director presents his strategic report for the year ended 30 April 2024.

Principal activity

The principal activity of the company is the provision of residential and nursing care for the elderly.

Fair review of the business

The results for the year, which are set out in the profit and loss account, show turnover of £7,599,045 (2023 - £6,064,016) and an operating profit before depreciation of £1,191,488 (2023 - £1,259,972). At 30 April 2024, the company had net assets of £11,359,107 (2023 - £11,516,237).

Post year end the company has refinanced with Triodos Bank. The new lending of £8.5m is over a 20 year term and includes an 18 month capital repayment holiday from May 2024.
 

Given the nature of the business, the directors are of the opinion that key performance indicators are important. The company uses a number of indicators to monitor and improve the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. The directors do not consider the inclusion of an analysis using key performance indicators to be necessary to assist users of the financial statements in their understanding of the financial performance or position of the company.

Principal risks and uncertainties

The company operates in a highly regulated industry and therefore employs only appropriately qualified individuals. The company provides high levels of training for staff and has formal procedures in place to handle concerns raised in a comprehensive and rapid manner. The company does not have significant credit risk, as its policy is to receive fees in advance for new residents wherever possible.

Financial instruments

The company is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through credit control procedures. It also monitors the economic climate to assess the need for interest rate protection instruments relating to the company's borrowings. The board constantly monitors the company's trading results and revises projections as appropriate to ensure that the company can meet its future obligations as they fall due. The company's bank loans are subject to price and liquidity risk as disclosed in note 14 to the financial statements.

Approved by the director on 17 January 2025

.........................................
J C Hawkins
Director

 

Littlecombe Park Limited

Statement of Director's Responsibilities

The director is responsible for preparing the Directors' Report, Strategic 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

Littlecombe Park Limited

Independent Auditor's Report to the Members of Littlecombe Park Limited

Opinion

We have audited the financial statements of Littlecombe Park Limited (the 'company') for the year ended 30 April 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.

Other information

The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Littlecombe Park Limited

Independent Auditor's Report to the Members of Littlecombe Park Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities set out on page 4, 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 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 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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

Littlecombe Park Limited

Independent Auditor's Report to the Members of Littlecombe Park Limited

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

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





Joanne Hartness (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

17 January 2025

 

Littlecombe Park Limited

Profit and Loss Account for the Year Ended 30 April 2024

Note

2024
 £

2023
 £

Turnover

3

7,599,045

6,064,016

Cost of sales

 

(4,463,902)

(3,438,396)

Gross profit

 

3,135,143

2,625,620

Administrative expenses

 

(2,039,134)

(1,619,698)

Other operating income

4

95,479

254,050

Operating profit before depreciation

5

1,191,488

1,259,972

Depreciation and profit/(loss) on disposal of fixed assets

 

(534,904)

(514,779)

Operating profit

 

656,584

745,193

Interest payable and similar charges

6

(644,920)

(448,079)

Profit before tax

 

11,664

297,114

Taxation

10

(168,194)

(22,723)

(Loss)/profit for the financial year

 

(156,530)

274,391

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

 

Littlecombe Park Limited

Statement of Comprehensive Income for the Year Ended 30 April 2024

2024
£

2023
£

Profit

(156,530)

274,391

Revaluation of property

-

9,078,714

Deferred tax movement on revaluation reserve

-

(2,280,585)

Total comprehensive income for the year

(156,530)

7,072,520

 

Littlecombe Park Limited

(Registration number: 04923339)
Balance Sheet as at 30 April 2024

Note

2024
 £

2023
 £

Fixed assets

 

Tangible assets

11

24,424,574

24,518,740

Current assets

 

Stocks

40,000

21,448

Debtors

12

1,156,813

814,877

Cash at bank and in hand

 

79,430

226,783

 

1,276,243

1,063,108

Creditors: Amounts falling due within one year

13

(2,911,329)

(2,775,464)

Net current liabilities excluding bank debt

 

(1,635,086)

(1,712,356)

Bank debt due within one year

13

(7,391,824)

(7,292,930)

Net current liabilities

 

(9,026,910)

(9,005,286)

Total assets less current liabilities

 

15,397,664

15,513,454

Creditors: Amounts falling due after more than one year

13

(138,082)

(265,536)

Provisions for liabilities

10

(3,899,875)

(3,731,681)

Net assets

 

11,359,707

11,516,237

Capital and reserves

 

Called up share capital

16

90

90

Capital redemption reserve

10

10

Revaluation reserve

9,937,033

10,037,407

Profit and loss account

1,422,574

1,478,730

Total equity

 

11,359,707

11,516,237

Approved and authorised by the director on 17 January 2025
 


J C Hawkins
Director

 

Littlecombe Park Limited

Statement of Changes in Equity for the Year Ended 30 April 2024

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 May 2023

90

10

10,037,407

1,478,730

11,516,237

Loss for the year

-

-

-

(156,530)

(156,530)

Transfers

-

-

(100,374)

100,374

-

At 30 April 2024

90

10

9,937,033

1,422,574

11,359,707

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 May 2022

90

10

3,271,998

1,416,619

4,688,717

Profit for the year

-

-

-

274,391

274,391

Other comprehensive income

-

-

6,798,129

-

6,798,129

Dividends

-

-

-

(245,000)

(245,000)

Transfers

-

-

(32,720)

32,720

-

At 30 April 2023

90

10

10,037,407

1,478,730

11,516,237

 

Littlecombe Park Limited

Statement of Cash Flows for the Year Ended 30 April 2024

Note

2024
£

2023
£

Cash flows from operating activities

(Loss)/profit for the year

 

(156,530)

274,391

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

534,904

459,935

Loss on disposal of tangible assets

-

54,844

Finance costs

6

644,920

448,079

Income tax expense

10

168,194

22,723

 

1,191,488

1,259,972

Working capital adjustments

 

Increase in stocks

(18,552)

-

Increase in debtors

12

(203,750)

(376,831)

Increase in creditors

13

106,491

943,715

Cash generated from operations

 

1,075,677

1,826,856

Income taxes paid

10

-

(1,325)

Net cash flow from operating activities

 

1,075,677

1,825,531

Cash flows from investing activities

 

Acquisitions of tangible assets

(441,008)

(290,982)

Proceeds from sale of tangible assets

 

270

(46,620)

Net cash flows from investing activities

 

(440,738)

(337,602)

Cash flows from financing activities

 

Interest paid

6

(644,920)

(448,079)

Repayment of bank borrowing

 

(25,178)

(561,522)

Payments to finance lease creditors

 

(112,194)

(182,247)

Dividends paid

18

-

(245,000)

Net cash flows from financing activities

 

(782,292)

(1,436,848)

Net (decrease)/increase in cash and cash equivalents

 

(147,353)

51,081

Cash and cash equivalents at 1 May

 

226,783

175,702

Cash and cash equivalents at 30 April

 

79,430

226,783

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

1% straight line

Plant and machinery

25% straight line

Fixtures and fittings

25% straight line

Motor vehicles

25% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

3

Revenue

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

 

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

95,479

254,050

 

5

Operating profit

Arrived at after charging:

2024
 £

2023
 £

Depreciation expense

534,904

459,935

Operating lease expense - plant and machinery

56,401

37,868

Loss on disposal of property

-

54,844

 

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

267,994

216,745

Interest expense on other finance liabilities

376,926

231,334

644,920

448,079

 

7

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2024
 £

2023
 £

Wages and salaries

4,206,246

3,256,217

Social security costs

393,270

299,186

Pension costs, defined contribution scheme

81,864

56,576

4,681,380

3,611,979

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2024
 No.

2023
 No.

Resident care

135

110

Administration

11

10

Directors

1

1

147

121

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

8

Director's remuneration

The director's remuneration for the year was as follows:

2024
£

2023
£

Remuneration

20,046

20,000

Contributions paid to money purchase schemes

310

-

20,356

20,000

 

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

24,600

8,400

 

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Deferred taxation

Arising from origination and reversal of timing differences

97,211

22,723

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

70,983

-

Total deferred taxation

168,194

22,723

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

11,664

297,114

Corporation tax at standard rate

2,916

56,452

Effect of revenues exempt from taxation

-

(35,150)

Effect of expense not deductible in determining taxable profit (tax loss)

3,512

5,612

Deferred tax expense from unrecognised temporary difference from a prior period

70,983

-

Tax increase/(decrease) from effect of capital allowances and depreciation

90,783

(4,191)

Total tax charge

168,194

22,723

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Accelerated capital allowances

608,119

Revaluation of tangible assets

3,324,344

Unused tax losses

(30,589)

Short term timing differences

(1,999)

3,899,875

2023

Liability
£

Accelerated capital allowances

507,402

Revaluation of tangible assets

3,349,437

Unused tax losses

(125,158)

3,731,681

 

11

Tangible assets

Freehold land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2023

23,940,000

1,184,146

142,549

25,266,695

Additions

338,471

102,537

-

441,008

At 30 April 2024

24,278,471

1,286,683

142,549

25,707,703

Depreciation

At 1 May 2023

-

683,996

64,229

748,225

Charge for the year

227,662

275,742

31,500

534,904

At 30 April 2024

227,662

959,738

95,729

1,283,129

Carrying amount

At 30 April 2024

24,050,809

326,945

46,820

24,424,574

At 30 April 2023

23,940,000

500,420

78,320

24,518,740

The fair value of the freehold land and buildings has been based around an independent professional valuation undertaken by Christie & Co as at 30 April 2023. The basis of the valuation was full business value, with regard to trading potential.

Included within the net book value of freehold land and buildings is land with a cost of £1,300,000 (2023 - £1,300,000) that is not depreciated.

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2024
£

2023
£

Property, plant and equipment

140,986

214,669

     

Capitalised borrowing costs

Within freehold land and buildings are capitalised borrowing costs of £94,674 (2023 - £94,674). No further borrowing costs have been capitalised in the year.

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

12

Debtors

Note

2024
 £

2023
 £

Trade debtors

 

239,261

436,964

Amounts owed by related parties

19

410,066

-

Other debtors

 

245,354

211,049

Prepayments and accrued income

 

262,132

166,864

 

1,156,813

814,877

 

13

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

14

7,563,708

7,574,252

Trade creditors

 

199,724

263,345

Social security and other taxes

 

175,987

78,295

Outstanding defined contribution pension costs

 

15,987

12,951

Other creditors

 

553,790

505,424

Accrued expenses

 

1,655,771

1,634,127

Corporation tax liability

10

138,186

-

 

10,303,153

10,068,394

Due after one year

 

Loans and borrowings

14

138,082

265,536

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

14

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Bank borrowings

7,391,824

7,292,930

HP and finance lease liabilities

59,628

142,616

Other borrowings

112,256

138,706

7,563,708

7,574,252

2024
£

2023
£

Non-current loans and borrowings

HP and finance lease liabilities

138,082

167,288

Other borrowings

-

98,248

138,082

265,536

The bank loan of £3,404,594 is repayable in quarterly instalments over 120 months with the final repayment due on 19 June 2033. The second bank loan of £3,964,847 is repayable in monthly instalments with the final payment due in July 2024. Both these loans have been repaid post year end and refinanced.

The interest on both loans is on a floating basis at 2.23% over base rate. The bank has security over the assets of the company.

A bounce back loan was received from the bank in 2022. Repayments commenced 13 months after drawdown and the interest rate charged is 2.5%. The balance on this loan is £22,382.

Further unsecured bank loans of £63,759, from a different bank, each have a 48 month fixed repayment term. Interest on these loans is charged at 5.6%.

Further unsecured other loans of £48,497 are held on the balance sheet. One loan has no repayments for 12 months and then is repaid monthly over 36 months. The other loan is repayable monthly over 5 years. These loans have variable interest rates.

Post year end the company have refinanced with Tridos bank. The new bank loan is over a 20 year term and includes an 18 month capital repayment holiday from May 2024.

 

Littlecombe Park Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

15

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £81,864 (2023 - £56,576).

Contributions totalling £15,987 (2023 - £12,951) were payable to the scheme at the end of the year and are included in creditors.

 

16

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £1 each

90

90

90

90

         
 

17

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

49,304

53,866

Later than one year and not later than five years

19,315

62,163

Later than five years

-

298

68,619

116,327

 

18

Dividends

2024
 £

2023
 £

Dividends paid

-

245,000

 

19

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 8 to the financial statements.

At the year end, the director owed the company £410,066 (2023 the company owed the director - £626), the maximum amount due to the company during the year was £410,066 (2023 - £193,610). There are no fixed repayment terms and the loan is interest free.

 

20

Parent and ultimate parent undertaking

The ultimate controlling party is J C Hawkins.