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Registration number: 04747333

Mercia Care Homes Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 April 2024

 

Mercia Care Homes Limited

Contents

Statement of Financial Position

1 to 2

Notes to the Unaudited Financial Statements

3 to 10

 

Mercia Care Homes Limited

(Registration number: 04747333)
Statement of Financial Position as at 30 April 2024

Note

2024
£

(As restated)

2023
£

Fixed assets

 

Tangible assets

5

1,033,289

1,047,809

Current assets

 

Stocks

6

4,607

-

Debtors

7

534,470

151,000

Cash at bank and in hand

 

202,662

341,123

 

741,739

492,123

Creditors: Amounts falling due within one year

8

(427,280)

(273,335)

Net current assets

 

314,459

218,788

Total assets less current liabilities

 

1,347,748

1,266,597

Creditors: Amounts falling due after more than one year

8

(1,199,434)

(1,199,434)

Net assets

 

148,314

67,163

Capital and reserves

 

Called up share capital

1,000

1,000

Profit and loss account

147,314

66,163

Shareholders' funds

 

148,314

67,163

For the financial year ending 30 April 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Statement of Comprehensive Income.

Approved and authorised by the Board on 24 January 2025 and signed on its behalf by:
 

 

Mercia Care Homes Limited

(Registration number: 04747333)
Statement of Financial Position as at 30 April 2024 (continued)


Mr G Maguire
Director

 

Mercia Care Homes Limited

Notes to the Unaudited 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:
10 Royal Crescent
Weston-super-Mare
Somerset
BS23 2AX

Principal activity

The principal activity of the company is care home provider.

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

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

The financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis.

 

Mercia Care Homes Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024 (continued)

2

Accounting policies (continued)

Prior period errors

The prior period has been restated to correctly classify items of current assets, current liabilities and long term liabilities.
The prior period has also been restated to include depreciation on the building element of the trading property.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

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.

Tangible assets

Tangible assets are stated in the statement of financial position 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, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and Machinery

25% reducing balance

Fixtures and Fittings

25% reducing balance

Equipment

25% straight line

Freehold property

75 year straight line

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

 

Mercia Care Homes Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024 (continued)

2

Accounting policies (continued)

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis over its useful life, which is estimated to be 7 years. Goodwill amortisation is included within administration expenses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, 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. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 statement of comprehensive income 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.

 

Mercia Care Homes Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024 (continued)

2

Accounting policies (continued)

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.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 37 (2023 - 27).

 

Mercia Care Homes Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024 (continued)

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 May 2023

50,000

50,000

At 30 April 2024

50,000

50,000

Amortisation

At 1 May 2023

50,000

50,000

At 30 April 2024

50,000

50,000

Carrying amount

At 30 April 2024

-

-

5

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Total
£

Cost or valuation

At 1 May 2023

1,156,338

163,539

151,108

13,676

1,484,661

Additions

2,793

15,744

1,284

3,059

22,880

Disposals

-

-

(1)

(8,063)

(8,064)

At 30 April 2024

1,159,131

179,283

152,391

8,672

1,499,477

Depreciation

At 1 May 2023

177,000

114,797

138,813

6,242

436,852

Charge for the year

8,850

30,133

7,151

847

46,981

Eliminated on disposal

-

-

(15,772)

(1,873)

(17,645)

At 30 April 2024

185,850

144,930

130,192

5,216

466,188

Carrying amount

At 30 April 2024

973,281

34,353

22,199

3,456

1,033,289

At 30 April 2023

979,338

48,742

12,295

7,434

1,047,809

Included within the net book value of land and buildings above is £973,281 (2023 - £979,338) in respect of freehold land and buildings.
 

 

Mercia Care Homes Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024 (continued)

6

Stocks

2024
£

2023
£

Client shop

4,607

-

7

Debtors

Note

2024
£

(As restated)

2023
£

Trade debtors

 

505,698

94,750

Other debtors

 

19,626

49,324

Prepayments

 

4,946

2,726

Income tax asset

4,200

4,200

 

534,470

151,000

 

Mercia Care Homes Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024 (continued)

8

Creditors

Creditors: amounts falling due within one year

2024
£

(As restated)

2023
£

Due within one year

Trade creditors

348,540

21,641

Taxation and social security

13,438

9,090

Accruals and deferred income

6,000

3,555

Other creditors

59,302

239,049

427,280

273,335

Creditors: amounts falling due after more than one year

Note

2024
£

(As restated)

2023
£

Due after one year

 

Loans and borrowings

10

1,199,434

1,199,434

9

Reserves

Profit and loss account:

This reserve records retained earnings and accumulated losses.

 

Mercia Care Homes Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024 (continued)

10

Loans and borrowings

Non-current loans and borrowings

2024
£

(As restated)

2023
£

Other borrowings

1,199,434

1,199,434

11

Related party transactions

Transactions with directors

2024

At 1 May 2023
£

Advances to director
£

Repayments by director
£

At 30 April 2024
£

(901,885)

-

-

(901,885)

         
       

 

2023

At 1 May 2022
£

Advances to director
£

Repayments by director
£

At 30 April 2023
£

(901,885)

-

-

(901,885)

 

12

Parent and ultimate parent undertaking

The company's immediate parent is Mercia Care Homes (Holdings) Limited, incorporated in England and Wales.