Company registration number 12601885 (England and Wales)
TLC CARE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
TLC CARE GROUP LIMITED
COMPANY INFORMATION
Directors
Gagan Puri
Paavan Popat
Sandali Harvey
(Appointed 11 October 2024)
Secretary
Gagan Puri
Company number
12601885
Registered office
36 Railway Approach
Station Road
Harrow
Middlesex
HA3 5AA
Auditor
KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
Bankers
HSBC Bank Plc
Canada Place
Canary Wharf
London
E14 5AH
Clydesdale Bank
154 - 158 Kensington High Street
London
W8 7RL
Natwest Bank PLC
10 St Peter's Street
St Albans
Hertfordshire
United Kingdom
AL1 3LY
Solicitors
Shoosmiths LLP
6th Floor
1 St Martin's Le Grand
London
EC1A 4AS
TLC CARE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 11
Profit and loss account
12
Group statement of comprehensive income
13
Group balance sheet
14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 37
TLC CARE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of the business

The group continues to build upon its brand identity. We have developed 'brand standards' for our care homes to strengthen our identity in this market sector so that residents, relatives and health care purchasers can readily identify a TLC Group care home. We have produced a series of leaflets regarding different aspects of care and we continue to update our website as a source of information about the group.

 

During the year ended 30 April 2024, the group had 9 care homes in operation. It was the first full year of operations for Kailash Manor Care Home.

Principal risks and uncertainties

The principal risks and uncertainties facing the company relate to adverse regulatory requirements by the Care Quality Commission. However, the company ensures that its care homes are run to a very high standard.

 

Another risk facing the industry as a whole is the use of agency staff to meet employment demands. The company aims to minimise the reliance placed on agency staff by ensuring the care home has sufficient staff available.

 

The directors continually review risks and uncertainties throughout the period and believe that they have the management and systems in place to deal with changing situations.

 

Financial risk management

The company uses various financial instruments that include cash, trade debtors and creditors that arise from its operations. The company is exposed to a number of financial risks, which are described in more detail below.

 

Interest rate risk

The directors monitor the banking facilities and interest rates on a regular basis to make sure that the company is not exposed to material levels of interest rate risk.

 

Liquidity risk

The directors closely manage financial risk by ensuring sufficient liquidity is available to meet forseeable needs by monitoring the working capital requirements.

 

Credit risk

The group’s principal financial assets are cash and bank balances and trade and other receivables. The group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the statement of financial position are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

Development and performance

The group made a pre-tax profit of £14,923 (2023: £6,331,061), on a turnover of £44,189,375 (2023: £35,492,388).

 

At 30 April 2024, the group had net assets of £155,383,007 (2023: £112,462,736).

Key performance indicators

In the opinion of the director the Key Performance Indicators of the group include gross profit margin and occupancy levels of the care homes, which are closely monitored by the directors. The gross profit margin of the group for the year was 24% (2023: 24%) and the occupancy levels have remained in line with the directors' expectations, in the current climate.

TLC CARE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Section 172(1) Statement

Section 414C2A(1) of the Companies Act 2006 requires the directors to explain how they considered the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 ['S172 (1)'] when performing their duty to respond to the success of the group. When making decisions, each director ensures that they act in the way that would most likely promote the group's success for the benefit of its members as a whole. and in doing so have regards (amongst other matters) to the following matters:

 

(a) The likely consequences of any decision in the long term

The Group continues to operate in the care sector, running its care homes to a high standard. The director understands the business and the evolving environment in which the group operates, including the challenges of operating in a regulated sector.

(b) The interest of the group's employees

The directors recognise that the success of the business depends on attracting, retaining and motivating high quality employees. The directors take into account the implications of decisions which may affect their perception as a responsible employer, on determining remuneration and benefits, and on providing a healthy and safe workplace environment, where relevant.

 

TLC Care is an accredited ‘Investors in People’ double platinum organisation, by the prestigious and internationally recognised Investors in People accreditation group. Platinum is the highest accreditation possible and TLC Care were accredited platinum for Investors in People. To receive this award, companies must prove that they invest in employees at all levels of the business and enshrine the company’s values in every aspect of its work. TLC Care was the first workplace in any industry to achieve The Wellbeing Award accreditation and was awarded the highest accreditation of platinum. The Wellbeing Award identifies organisations that are high performing across their practice which includes actively improving people’s health and wellbeing, and encouraging a positive workplace culture.

(c) The need to foster the group's business relationships with suppliers, customers and others

The directors seek to promote strong mutually beneficial relationships with suppliers, residents, the regulators and local authorities. Such general principles are critical in the delivery of the group's strategy.

Management regularly engage with stakeholders to ensure there is a constant flow of information both ways to fully understand their needs and maintain strong relationships.

(d) The impact of the groups operations on the community and environment

The group is committed to understanding the interests of these stakeholder groups. The directors receive information on these topics on a periodic basis to provide relevant information for specific board decisions.

 

(e) The desirability of the group maintaining a reputation for high standards of business

The directors recognise the importance of acting in ways which promote high standards of business conduct. The board periodically reviews and approves clear operating frameworks and management holds regular meetings to ensure that the group's high standards are maintained both within the business and via the business relationships the group has with stakeholders. Given the size of the group, this is proportional and easy to implement, but the framework is established to cement this in the group's culture and practices. The company also engages third parties to ensure that the care homes are operating to a high standard and regulations are being met.

 

(f) The need to act fairly as between members of the group

We are an independent group. The directors aim to act fairly between the group's members when delivering the group's strategy and consult its minority members as appropriate.

TLC CARE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

On behalf of the board

Paavan Popat
Director
28 January 2025
TLC CARE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the group continued to be that of development and operation of specialist care homes.

 

The principle activity of this company is that of a holding company.

Results and dividends

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £950,747. The directors do not recommend payment of a further dividend.

Directors

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

Gagan Puri
Shivaan Shillin Popat
(Resigned 10 October 2024)
Paavan Popat
Sandhya Popat
(Resigned 10 October 2024)
Sandali Harvey
(Appointed 11 October 2024)
Disabled persons

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

Employee involvement

Within the bounds of commercial confidentiality, information is disseminated to all members of staff about matters that affect the progress of the group and are of interest and concern to them as employees.

Employees

Employees of the care homes are committed to treating and caring for residents and the group's policy is to encourage staff involvement by way of in-house training and development, newsletters and regular Manager and Staff Meetings.

 

The directors would like to thank the staff for the excellent work that they do in caring for the residents. Above al else, as a small group, we are committed to providing high quality care and this relies absolutely on the dedication and compassion of our staff.

 

Training

The commitment to training continues and its impact on the care delivered us visible. During their employment, training and career development is made available to all staff. We were among the first care providers in the UK to pilot the Aged Care Channel, a new live and interactive learning resource.

 

The group places a very strong emphasis on our commitment to education and training. During the year, we have communicated this to our staff via a number of different ways including literature, training sessions and appraisals.

Business relationships

Refer to part (c) of the Section 172 (1) statement in the Stratergic Report of these financial statements for details of how the company fosters relationships with suppliers, customers and others.

TLC CARE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
Future developments

The group intends to solely construct and operate care homes going forward.

Auditor

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

Energy and carbon report

As per the requirements of the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 which came into force on 1 April 2019, the company is required to present the carbon footprint of its operations and measures introduced to improve efficiency.

 

TLC Care Group Limited have chosen to report on the following key items within their boundary:

 

Scope1:

 

Scope 2:

 

Scope 3:

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
7,900,353
10,054,577
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
1,022.00
980.00
- Fuel consumed for owned transport
-
-
1,022.00
980.00
Scope 2 - indirect emissions
- Electricity purchased
498.00
449.17
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
7.00
50.62
Total gross emissions
1,527.00
1,479.79
Quantification and reporting methodology

The figures have been calculated using Defra (2019) Conversion Factors in line with the Environmental reporting Guidelines (2019).

Intensity measurement

The intensity ration chosen for our Streamlined Energy and Carbon Reporting is kWh per m2. The non- Domestic EPC register was used to obtain care home facility m2.

 

Care homes intensity: 213.430 kWh per m2.

TLC CARE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
Measures taken to improve energy efficiency

Over the period from 1 April 2023 - 31 March 2024, measures to improve fire compartmentation across the group has taken place which in turn helps to reduce the heat efficiency within the homes. Loft installation was improved at Cherry Hinton Care Home in year. TLC Group’s previous installation across their care homes of energy saving light fittings and lamps, with motion/occupancy sensors, has helped to reduce Scope 2 emissions. CHP units, biomass boilers with timeclocks and heat controls, along with high level insulation and thermal glazing are also in place across the facilities. TLC Group continue to ensure contracts are in place for all equipment to have regular servicing to ensure all equipment is working efficiently. Staff are encouraged to use laptops as opposed to desktops which tend to be more energy efficient. All office equipment is Energy Star certified which ensures equipment uses less energy to perform regular tasks and automatically enter a low-power mode when not in use.

Electric vehicle charging point are installed in Support Office and two of the care homes and are in use by staff.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of business relationships.

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
Paavan Popat
Director
28 January 2025
TLC CARE GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -

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.

TLC CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TLC CARE GROUP LIMITED
- 8 -
Opinion

We have audited the financial statements of TLC Care Group 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group's ability to continue as a going concern.

 

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.

TLC CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TLC CARE GROUP LIMITED
- 9 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

To identify risks of material misstatement due to any irregularities, including fraud and non-compliance with laws and regulations, we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

 

TLC CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TLC CARE GROUP LIMITED
- 10 -

 

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.

Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of license to operate. We identified the following areas as those most likely to have such an effect: Care Quality Commission’s Inspections and healthcare and safety legislation regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

TLC CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TLC CARE GROUP LIMITED
- 11 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards; for instance, any non-compliance with laws and regulations and fraud which is far removed from transactions reflected in the financial statements would diminish the likelihood of detection. Furthermore, the risk of not detecting a material misstatement due to fraud is greater than the risk of not detecting one resulting from error.

 

Fraud may involve deliberate concealment by, for example, forgery or intentional omissions, misrepresentation, or through an act of collusion that would mitigate internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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

Use of our report

This report is made solely to the group's and 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.

Shilpa Chheda (Senior Statutory Auditor)
For and on behalf of KLSA LLP
29 January 2025
Chartered Accountants
Statutory Auditor
Kalamu House
11 Coldbath Square
London
EC1R 5HL
TLC CARE GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
44,189,375
35,492,388
Cost of sales
(33,445,879)
(26,894,193)
Gross profit
10,743,496
8,598,195
Administrative expenses
(6,601,871)
(4,893,502)
Other operating income
780,735
258,400
Gain on disposal of tangible assets
-
0
5,669,886
Operating profit
4
4,922,360
9,632,979
Interest receivable and similar income
7
19,605
3,333
Interest payable and similar expenses
8
(4,927,042)
(3,305,251)
Profit before taxation
14,923
6,331,061
Tax on profit
9
475,643
(1,484,776)
Profit for the financial year
490,566
4,846,285
Profit for the financial year is all attributable to the owners of the parent company.

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

TLC CARE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
2024
2023
£
£
Profit for the year
490,566
4,846,285
Other comprehensive income
Revaluation of tangible fixed assets
49,429,762
11,469,853
Actuarial gain on defined benefit pension schemes
266,000
279,000
Tax relating to other comprehensive income
(6,315,310)
(434,371)
Other comprehensive income for the year
43,380,452
11,314,482
Total comprehensive income for the year
43,871,018
16,160,767
Total comprehensive income for the year is all attributable to the owners of the parent company.
TLC CARE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
238,953,443
173,797,862
Current assets
Stocks
15
-
18,344,187
Debtors
16
17,172,371
13,469,901
Cash at bank and in hand
5,718,746
9,304,683
22,891,117
41,118,771
Creditors: amounts falling due within one year
17
(8,913,873)
(9,893,515)
Net current assets
13,977,244
31,225,256
Total assets less current liabilities
252,930,687
205,023,118
Creditors: amounts falling due after more than one year
18
(63,357,911)
(63,728,562)
Provisions for liabilities
Deferred tax liability
20
36,065,769
30,441,820
(36,065,769)
(30,441,820)
Net assets excluding pension surplus
153,507,007
110,852,736
Defined benefit pension surplus
21
1,876,000
1,610,000
Net assets
155,383,007
112,462,736
Capital and reserves
Called up share capital
22
60
60
Revaluation reserve
129,024,628
87,833,821
Profit and loss reserves
26,358,319
24,628,855
Total equity
155,383,007
112,462,736
The financial statements were approved by the board of directors and authorised for issue on 28 January 2025 and are signed on its behalf by:
28 January 2025
Paavan Popat
Director
Company registration number 12601885 (England and Wales)
TLC CARE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
100
100
Current assets
Debtors
16
3,194,666
430,060
Creditors: amounts falling due within one year
17
(100)
(100)
Net current assets
3,194,566
429,960
Net assets
3,194,666
430,060
Capital and reserves
Called up share capital
22
60
60
Profit and loss reserves
3,194,606
430,000
Total equity
3,194,666
430,060

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 £3,715,353 (2023 - £5,500,000 profit).

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 28 January 2025 and are signed on its behalf by:
28 January 2025
Paavan Popat
Director
Company registration number 12601885 (England and Wales)
TLC CARE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
60
96,339,910
23,084,232
119,424,202
Year ended 30 April 2023:
Profit for the year
-
-
4,846,285
4,846,285
Other comprehensive income:
Revaluation of tangible fixed assets
-
11,469,853
-
11,469,853
Actuarial gains on defined benefit plans
-
-
279,000
279,000
Tax relating to other comprehensive income
-
(434,371)
-
0
(434,371)
Total comprehensive income
-
11,035,482
5,125,285
16,160,767
Dividends
10
-
-
(5,500,000)
(5,500,000)
Transfers
-
(1,919,338)
1,919,338
-
Other movements
-
(17,622,233)
-
(17,622,233)
Balance at 30 April 2023
60
87,833,821
24,628,855
112,462,736
Year ended 30 April 2024:
Profit for the year
-
-
490,566
490,566
Other comprehensive income:
Revaluation of tangible fixed assets
-
49,429,762
-
49,429,762
Actuarial gains on defined benefit plans
-
-
266,000
266,000
Tax relating to other comprehensive income
-
(6,315,310)
-
0
(6,315,310)
Total comprehensive income
-
43,114,452
756,566
43,871,018
Dividends
10
-
-
(950,747)
(950,747)
Transfers
-
(1,923,645)
1,923,645
-
Balance at 30 April 2024
60
129,024,628
26,358,319
155,383,007
TLC CARE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
60
430,000
430,060
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
5,500,000
5,500,000
Dividends
10
-
(5,500,000)
(5,500,000)
Balance at 30 April 2023
60
430,000
430,060
Year ended 30 April 2024:
Profit and total comprehensive income
-
3,715,353
3,715,353
Dividends
10
-
(950,747)
(950,747)
Balance at 30 April 2024
60
3,194,606
3,194,666
TLC CARE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
25,232,687
(178,171)
Interest paid
(4,927,042)
(3,305,251)
Income taxes paid
(786,501)
(231,638)
Net cash inflow/(outflow) from operating activities
19,519,144
(3,715,060)
Investing activities
Purchase of tangible fixed assets
(20,837,012)
(17,124,254)
Proceeds on disposal of tangible fixed assets
-
16,470,053
Loans repaid by directors
484,430
-
Loans advanced to directors
(482,520)
1,211,475
Interest received
19,605
3,333
Net cash (used in)/generated from investing activities
(20,815,497)
560,607
Financing activities
Proceeds of new bank loans
-
25,654,178
Repayment of bank loans
(954,466)
(15,158,693)
Dividends paid to equity shareholders
(950,747)
(5,500,000)
Net cash (used in)/generated from financing activities
(1,905,213)
4,995,485
Net (decrease)/increase in cash and cash equivalents
(3,201,566)
1,841,032
Cash and cash equivalents at beginning of year
8,898,128
7,057,096
Cash and cash equivalents at end of year
5,696,562
8,898,128
Relating to:
Cash at bank and in hand
5,718,746
9,304,683
Bank overdrafts included in creditors payable within one year
(22,184)
(406,555)
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
1
Accounting policies
Company information

TLC Care Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 36 Railway Approach, Station Road, Harrow, Middlesex, HA3 5AA.

 

The group consists of TLC Care Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. 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 where the parent of that group 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 consolidated group financial statements consist of the financial statements of the parent company TLC Care Group Limited and all of its subsidiaries (i.e entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

In accordance with there responsibilities, the directors have considered the appropriateness of the going concern basis for the preparation of the financial statements. For this basis they have reviewed the financial and cash flow projections for the next 12 months from the date of the approval of the financial statements.

 

On the basis of this, the directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future. Thus the directors continues to adopt the going concern basis of accounting in preparing the financial statements. These financial statements are prepared on the going concern basis.

TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.4
Turnover

Turnover represents fees receivable during the period in respect of care services provided. Turnover is recognised as it is incurred, either daily, weekly or monthly.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Freehold buildings
20 - 50 years straight line
Plant and equipment
15% straight line
Motor vehicles
25% straight line

Freehold land is not depreciated.

 

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.

1.7
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.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, nd bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

1.12
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.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
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.

1.15
Retirement benefits

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

Cooperscroft Care Home Limited operates a defined benefit scheme. The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account in respect of some of its employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the profit and loss account and the contributions paid to the scheme is shown as an asset or liability in the balance sheet.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 23 -

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.16
Leases

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

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.

1.17
Government grants

Government grants, which include amounts received under the Coronavirus Job Retention Scheme and amounts received from local authority grants, are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. For the Coronavirus Job Retention Scheme the income is recognised in other income on a systematic basis over the period in which the associated costs are incurred, using the accrual model. For local authority grants the income is recognised in other income in the period in which the grant becomes receivable.

1.18

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instruments.

1.19

Comparatives

There were no changes in comparative figures during the year.

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 (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of debtors

The group reviews their portfolio of trade debtors on an annual basis. In determining whether trade debtors are impaired, the management makes judgment as to whether there is any evidence indicating that there is a measurable decrease in the estimated future cash flows expected.

TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Key sources of estimation uncertainty

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

Valuation of properties

Freehold properties are carried at fair value based on valuations performed by external independent valuers or the directors. Fair value is ascertained through review of a number of factors and information flows, including market knowledge, recent market movements, recent sales of similar properties and historical experience. There is an inevitable degree of judgement involved and the value can only be reliably tested ultimately in the market itself.

Defined benefit pension scheme

The cost of group's benefit pension plan is determined using actuarial valuations. The actuarial valuation involve making assumptions about discount rates, future salary increases. due to the complexity of the valuation, the underlying assumptions and the long-term nature of the plan, such estimates are subject to significant uncertainty.

Useful lives, depreciation methods and residual values of tangible assets

Management reviews the useful lives, depreciation methods and residual values of the items of tangible assets on a regular basis. During the financial year, the directors determined no significant changes in the useful lives and residual values. The carrying amounts of property, plant and equipment is disclosed in note 12.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Care home fees
44,189,375
35,492,388
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
44,189,375
35,492,388
2024
2023
£
£
Other revenue
Interest income
19,605
3,333
Grants received
-
113,484
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(113,484)
Depreciation of owned tangible fixed assets
5,111,193
4,272,924
Operating lease charges
48,000
48,000
5
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
12,000
12,000
Audit of the financial statements of the company's subsidiaries
126,640
98,238
138,640
110,238
For other services
Taxation compliance services
20,000
20,000
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
Nursing and Care
724
663
-
-
Administration
30
51
-
-
Office and Management
64
44
-
-
Total
818
758
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
22,156,477
17,879,502
-
0
-
0
Social security costs
2,131,128
1,761,793
-
-
Pension costs
372,779
307,769
-
0
-
0
24,660,384
19,949,064
-
0
-
0
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
7,389
-
0
Other interest income
12,216
3,333
Total income
19,605
3,333
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
4,760,592
3,138,801
Loan arrangement fees
166,450
166,450
Total finance costs
4,927,042
3,305,251
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
215,718
523,788
Deferred tax
Origination and reversal of timing differences
(691,361)
896,665
Adjustment in respect of prior periods
-
0
64,323
Total deferred tax
(691,361)
960,988
Total tax (credit)/charge
(475,643)
1,484,776
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
(Continued)
- 27 -

The actual (credit)/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
14,923
6,331,061
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
3,731
1,234,557
Tax effect of expenses that are not deductible in determining taxable profit
26,929
(5,571)
Tax effect of income not taxable in determining taxable profit
(26,303)
(1,099,001)
Permanent capital allowances in excess of depreciation
(234,661)
393,803
Deferred tax provision
(691,361)
960,988
Other tax adjustment
446,022
-
0
Taxation (credit)/charge
(475,643)
1,484,776

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
6,315,310
434,371

The deferred tax rate is 25% (2023: 25%).

 

The group has estimated unused trade losses of £Nil (2023: £2,687,036) and capital losses of £1,143,071 (2023: £1,143,071) available to carry forwards against future taxable profits.

10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
950,747
5,500,000
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
554,906
Amortisation and impairment
At 1 May 2023 and 30 April 2024
554,906
Carrying amount
At 30 April 2024
-
0
At 30 April 2023
-
0
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
12
Tangible fixed assets
Group
Freehold buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 May 2023
174,248,740
15,383,713
-
0
189,632,453
Additions
14,979,537
5,797,560
59,915
20,837,012
Disposals
-
0
(4,477,248)
-
0
(4,477,248)
Revaluation
39,532,535
-
0
-
0
39,532,535
At 30 April 2024
228,760,812
16,704,025
59,915
245,524,752
Depreciation and impairment
At 1 May 2023
6,994,693
8,839,898
-
0
15,834,591
Depreciation charged in the year
2,902,534
2,201,844
6,815
5,111,193
Eliminated in respect of disposals
-
0
(4,477,248)
-
0
(4,477,248)
Revaluation
(9,897,227)
-
0
-
0
(9,897,227)
At 30 April 2024
-
0
6,564,494
6,815
6,571,309
Carrying amount
At 30 April 2024
228,760,812
10,139,531
53,100
238,953,443
At 30 April 2023
167,254,047
6,543,815
-
0
173,797,862
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Tangible fixed assets
(Continued)
- 29 -

Disposal

Relates to fully depreciated fixed assets written off from the company's books.

 

Valuation

Land and buildings owned by the group with a carrying amount of £228,760,812 were revalued by independent valuer not connected with the group and directors respectively.

 

The freehold land and buildings (Including plant & Machinery) were revalued at fair value on 17 May 2024 by CB Richard Ellis Limited, an independent valuer not connected with the company. The valuation was based on an estimate of the maintainable level of trade and future profitability a component operator of a business conducted on the premises acting in efficient manner would expect to achieve. As with the property valued by reference to trading potential, valuation is vulnerable to external influences. and the introduction of competition. The trading valuation is inextricably linked to the performance of the national economy.

 

As at 30 April 2024 the directors believe that the fair value of the land and buildings after the depreciation charge for the year materially reflects the market value for these care homes.

 

All other tangible fixed assets are stated at historical costs.

If land and buildings were measured using cost model, the carrying amounts would have been as follows:

2024
2023
£
£
Group
Cost
74,925,264
59,956,281
Accumulated depreciation
(9,773,512)
(8,794,743)
Carrying value
65,151,752
51,161,538
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
100
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
100
Carrying amount
At 30 April 2024
100
At 30 April 2023
100
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
14
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
TLC Group Limited
1
Holding Company
Ordinary
100.00
Rockley Dene Homes Limited
1
Care Home Operator
Ordinary
100.00
Cooperscroft Care Home Limited
1
Care Home Operator
Ordinary
100.00
Karuna Care (TLC) Limited
1
Care Home Operator
Ordinary
100.00
Camberley Care Limited
1
Care Home Operator
Ordinary
100.00
Candlewood House Limited
1
Care Home Operator
Ordinary
100.00
Kailash Manor Limited
1
Care Home Operator
Ordinary
100.00
TLC Construction Limited
1
Property Development
Ordinary
100.00
Promede Limited
1
Dormant
Ordinary
100.00
TL C New Homes Limited
1
Dormant
Ordinary
100.00
London Inn Hotels (luton) Limited
1
Dormant
Ordinary
100.00

1 - The registered office of all subsidiary entities is 36 Railway Approach, Station Road, Harrow, Middlesex, HA3 5AA

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
-
18,344,187
-
-

During the year, the construction costs were transferred to Kailash Manor Limited after completion of the project. The company commenced operations on December 2022 and current year was the first year of full operations.

16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,795,517
2,826,111
-
0
-
0
Amounts owed by group undertakings
-
-
3,194,666
430,060
Other debtors
14,023,604
10,243,519
-
0
-
0
Prepayments and accrued income
353,250
400,271
-
0
-
0
17,172,371
13,469,901
3,194,666
430,060
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
2,395,517
3,363,703
-
0
-
0
Trade creditors
1,784,356
1,220,204
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
100
100
Corporation tax payable
126,857
697,640
-
0
-
0
Other taxation and social security
1,041,497
946,796
-
-
Dividends payable
125,000
125,000
-
0
-
0
Other creditors
2,750,922
2,741,217
-
0
-
0
Accruals and deferred income
689,724
798,955
-
0
-
0
8,913,873
9,893,515
100
100
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
63,357,911
63,728,562
-
0
-
0
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
65,731,244
66,685,710
-
0
-
0
Bank overdrafts
22,184
406,555
-
0
-
0
65,753,428
67,092,265
-
-
Payable within one year
2,395,517
3,363,703
-
0
-
0
Payable after one year
63,357,911
63,728,562
-
0
-
0

The bank loans and overdrafts are secured by a fixed and floating charge over all the assets, which include all present and future freehold and leasehold property, book and other debt, chattels, goodwill and uncalled up capital, both present and future.

Interest on the loans is charged at different rates across the companies within the group. The interest is charged at market rate. The repayments are made on a monthly or quarterly basis.

TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
2,767,178
3,520,975
Short term timing differences
(8,928)
(4,863)
Revaluations
32,840,156
26,524,845
Retirement benefit obligations
467,363
400,863
36,065,769
30,441,820
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
30,441,820
-
Credit to profit or loss
(691,361)
-
Charge to other comprehensive income
6,315,310
-
Liability at 30 April 2024
36,065,769
-

A deferred tax asset is not recognised in respect of capital losses of £864,233 (2023: £864,233) and connected party capital losses of £1,263,800 (2023: £1,263,800) as it is not probable that this will be recovered against the reversal of deferred tax liabilities or future taxable profits.

The deferred tax rate in the current year is 25% (2023: 25%)

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
372,779
307,769

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.

TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Retirement benefit schemes
(Continued)
- 33 -
Defined benefit schemes

Cooperscroft Care Home Limited perates a defined benefit scheme for qualifying employees. Under the scheme the employees are entitled to retirement benefits based on a percentage of final salary on attainment of a retirement age of 65. No other post retirement benefits are provided.

 

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 30 April 2024 by a Fellow of the Institute of Actuaries for and on behalf of Hymans Robertson LLP. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

2024
2023
Key assumptions
%
%
Discount rate
2.90
2.95
Expected rate of increase of pensions in payment
3.90
3.95
Expected rate of salary increases
5.25
4.85
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
Current pensioners
- Males
18.4
18.5
- Females
23.2
23.2
Future Pensioners
- Males
18.8
19.0
- Females
25.3
25.1

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2024
2023
Group
£
£
Present value of defined benefit obligations
2,079,000
2,137,000
Fair value of plan assets
(3,955,000)
(3,747,000)
Deficit in scheme
(1,876,000)
(1,610,000)
Group
2024
2023

Amounts recognised in the profit and loss account

£
£
Current service cost
6,000
6,000
Net interest on net defined benefit liability/(asset)
(77,000)
(40,000)
Total costs/(income)
(71,000)
(34,000)
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Retirement benefit schemes
(Continued)
- 34 -
Group
2024
2023

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(303,000)
(74,000)
Less: calculated interest element
179,000
113,000
Return on scheme assets excluding interest income
(124,000)
39,000
Actuarial changes related to obligations
(71,000)
(284,000)
Total costs/(income)
(195,000)
(245,000)
Group
2024

Movements in the present value of defined benefit obligations

£
Liabilities at 1 May 2023
2,137,000
Current service cost
6,000
Benefits paid
(96,000)
Contributions from scheme members
1,000
Actuarial gains and losses
(71,000)
Interest cost
102,000
At 30 April 2024
2,079,000

The defined benefit obligations arise from plans which are wholly funded.

Group
2024

Movements in the fair value of plan assets

£
Fair value of assets at 1 May 2023
3,747,000
Interest income
179,000
Return on plan assets (excluding amounts included in net interest)
124,000
Benefits paid
(96,000)
Contributions by scheme members
1,000
At 30 April 2024
3,955,000

The actual return on plan assets was £303,000 (2023 - £74,000).

TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Retirement benefit schemes
(Continued)
- 35 -

Fair value of plan assets at the reporting period end

Group
2024
2023
£
£
Equity instruments
2,254,350
2,585,430
Debt instruments
1,226,050
599,520
Property
435,050
449,640
Cash
39,550
112,410
3,955,000
3,747,000
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
60
60
60
60
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
393,429
346,427
Other information
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
23
Related party transactions
(Continued)
- 36 -

 

During the year the group had the following related party transactions:

 

Included within other debtors are the following:

 

 

 

 

 

24
Controlling party

The ultimate controlling party is SD Popat.

25
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
490,566
4,846,285
Adjustments for:
Taxation (credited)/charged
(475,643)
1,484,776
Finance costs
4,927,042
3,305,251
Investment income
(19,605)
(3,333)
Gain on disposal of tangible fixed assets
-
(5,669,886)
Depreciation and impairment of tangible fixed assets
5,111,193
4,272,924
Movements in working capital:
Decrease/(increase) in stocks
18,344,187
(2,796,435)
Increase in debtors
(3,704,380)
(5,003,511)
Increase/(decrease) in creditors
559,327
(614,242)
Cash generated from/(absorbed by) operations
25,232,687
(178,171)
TLC CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 37 -
26
Analysis of changes in net debt - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
9,304,683
(3,585,937)
5,718,746
Bank overdrafts
(406,555)
384,371
(22,184)
8,898,128
(3,201,566)
5,696,562
Borrowings excluding overdrafts
(66,685,710)
954,466
(65,731,244)
(57,787,582)
(2,247,100)
(60,034,682)
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