Caseware UK (AP4) 2023.0.135 2023.0.135 2024-04-302024-04-30falsetrue752023-05-01false85false 04668436 2023-05-01 2024-04-30 04668436 2022-05-01 2023-04-30 04668436 2024-04-30 04668436 2023-04-30 04668436 2022-05-01 04668436 1 2023-05-01 2024-04-30 04668436 1 2022-05-01 2023-04-30 04668436 4 2023-05-01 2024-04-30 04668436 4 2022-05-01 2023-04-30 04668436 5 2023-05-01 2024-04-30 04668436 5 2022-05-01 2023-04-30 04668436 1 2023-05-01 2024-04-30 04668436 e:Director1 2023-05-01 2024-04-30 04668436 e:RegisteredOffice 2023-05-01 2024-04-30 04668436 d:Buildings 2023-05-01 2024-04-30 04668436 d:Buildings 2024-04-30 04668436 d:Buildings 2023-04-30 04668436 d:Buildings d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 04668436 d:Buildings d:LongLeaseholdAssets 2023-05-01 2024-04-30 04668436 d:Buildings d:LongLeaseholdAssets 2024-04-30 04668436 d:Buildings d:LongLeaseholdAssets 2023-04-30 04668436 d:LandBuildings 2024-04-30 04668436 d:LandBuildings 2023-04-30 04668436 d:MotorVehicles 2023-05-01 2024-04-30 04668436 d:MotorVehicles 2024-04-30 04668436 d:MotorVehicles 2023-04-30 04668436 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 04668436 d:OfficeEquipment 2023-05-01 2024-04-30 04668436 d:OfficeEquipment 2024-04-30 04668436 d:OfficeEquipment 2023-04-30 04668436 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 04668436 d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 04668436 d:CurrentFinancialInstruments 2024-04-30 04668436 d:CurrentFinancialInstruments 2023-04-30 04668436 d:Non-currentFinancialInstruments 2024-04-30 04668436 d:Non-currentFinancialInstruments 2023-04-30 04668436 d:CurrentFinancialInstruments d:WithinOneYear 2024-04-30 04668436 d:CurrentFinancialInstruments d:WithinOneYear 2023-04-30 04668436 d:Non-currentFinancialInstruments d:AfterOneYear 2024-04-30 04668436 d:Non-currentFinancialInstruments d:AfterOneYear 2023-04-30 04668436 d:ReportableOperatingSegment1 2023-05-01 2024-04-30 04668436 d:ReportableOperatingSegment1 2022-05-01 2023-04-30 04668436 d:UKTax 2023-05-01 2024-04-30 04668436 d:UKTax 2022-05-01 2023-04-30 04668436 d:ShareCapital 2024-04-30 04668436 d:ShareCapital 2023-04-30 04668436 d:ShareCapital 2022-05-01 04668436 d:RetainedEarningsAccumulatedLosses 2023-05-01 2024-04-30 04668436 d:RetainedEarningsAccumulatedLosses 2024-04-30 04668436 d:RetainedEarningsAccumulatedLosses 2022-05-01 2023-04-30 04668436 d:RetainedEarningsAccumulatedLosses 2023-04-30 04668436 d:RetainedEarningsAccumulatedLosses 2022-05-01 04668436 e:OrdinaryShareClass1 2023-05-01 2024-04-30 04668436 e:OrdinaryShareClass1 2024-04-30 04668436 e:OrdinaryShareClass1 2023-04-30 04668436 e:FRS102 2023-05-01 2024-04-30 04668436 e:Audited 2023-05-01 2024-04-30 04668436 e:FullAccounts 2023-05-01 2024-04-30 04668436 e:PrivateLimitedCompanyLtd 2023-05-01 2024-04-30 04668436 d:AcceleratedTaxDepreciationDeferredTax 2024-04-30 04668436 d:AcceleratedTaxDepreciationDeferredTax 2023-04-30 04668436 2 2023-05-01 2024-04-30 04668436 f:PoundSterling 2023-05-01 2024-04-30 xbrli:shares iso4217:GBP xbrli:pure
Registered number: 04668436







FLORENCE CARE READING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024






















TWP Accounting LLP
Chartered Accountants & Statutory Auditors
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE

 
FLORENCE CARE READING LIMITED
 

COMPANY INFORMATION


Director
Z Denning 




Registered number
04668436



Registered office
The Old Rectory

Church Street

Weybridge

Surrey

KT13 8DE




Independent auditor
TWP Accounting LLP
Chartered Accountants & Statutory Auditors

The Old Rectory

Church Street

Weybridge

Surrey

KT13 8DE





 
FLORENCE CARE READING LIMITED
 

CONTENTS



Page
Strategic Report
1
Director's Report
2 - 3
Independent Auditor's Report
4 - 7
Statement of Comprehensive Income
8
Balance Sheet
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 23


 
FLORENCE CARE READING LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

 
We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
As a nursing and residential home for the elderly, the company continues to strive to provide excellent affordable care in homely surroundings.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company, these being:
•        Occupancy levels;
•        Turnover;
•        Gross margin.
Sales have increased when compared to the previous year. Florence Care Reading Limited has improved  performance as a result of a change in management and a good CQC report from the new manager in 2021. This has since led to an increase in average occupancy levels. Gross profit and margins have increased to £1,998,440 (40%) in 2024 compared to £1,800,776 (42%) in 2023, which was mostly caused by the increases in occupancy levels and the block bed contracts from local councils.
The care home consistently strives to maintain high quality standards. Following considerable financial and time investment, the Care Quality Commission (CQC) has inspected the home in 2023 and we have achieved good in the overall rating which demonstrate strong improvement from the previous requires improvement rating. 
As for many businesses of our size, the business environment in which we operate continues to be challenging. With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.


This report was approved by the board on 29 January 2025 and signed on its behalf.



................................................
Z Denning
Director

Page 1

 
FLORENCE CARE READING 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.

Principal activity

 The principal activity of the company during the year was that of a nursing and residential home for the elderly. 

Results and dividends

The profit for the year, after taxation, amounted to £915,194 (2023 - loss £450,814).

The total distribution of dividends to the owners of the company for the year are £nil (2023 - £nil).

Director

The director who served during the year was:

Z Denning 

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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 to enable him to ensure that the financial statements comply with the Companies Act 2006He 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.

Disclosure of information to auditor

The director at the time when this Director's Report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company's auditor is unaware, and

 has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Page 2

 
FLORENCE CARE READING LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Post balance sheet events

The company has accepted a resolution proposal from His Majesty's Revenue & Customs for the use of a pension obligation arrangement. The company confirms the amount of £518,000 currently included in creditors due after more than one year reversed in the accounting period end of 30 April 2025, with £480,000 being treated as chargeable income for the purposes of corporation tax. 

Auditor

The auditor, TWP Accounting LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 January 2025 and signed on its behalf.
 





................................................
Z Denning
Director

Page 3

 
FLORENCE CARE READING LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLORENCE CARE READING LIMITED
 

Qualified opinion


We have audited the financial statements of Florence Care Reading Limited (the 'Company') for the year ended 30 April 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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).


Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 profit 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 qualified opinion


The audit evidence available to us in respect of the defined benefit pension scheme liability was limited. This has consequently led to a lack of sufficient appropriate evidence available to support any movement during the year in the related liability and associated disclosures for the year ended 30 April 2024. We were unable to satisfy ourselves by alternative means concerning the recognition of the movements in the present value of the defined benefit obligations for the year ended 30 April 2024, which is included in the statement of comprehensive income and Note 18, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount are necessary.


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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 qualified 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 financial statements are 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.


Page 4

 
FLORENCE CARE READING LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLORENCE CARE READING LIMITED (CONTINUED)


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 director is 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.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the recognition of the movements in the present value of the defined benefit obligations for the year ended 30 April 2024.  We have concluded that where the other information refers to the defined benefit pension scheme balance, may be materially misstated for the same reason.


Opinion on other matters prescribed by the Companies Act 2006
 

Except for the possible effects of the matter described in the basis of qualified opinion section of our report, in
our opinion, based on the work undertaken in the course of the audit:


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


Matters on which we are required to report by exception
 

Except for the matter described in the basis for qualified opinion section of our report, in the light of the
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 or the Director's 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:


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.



Arising solely from the limitation on scope of our work related to defined benefit obligation, referred to above, we have not obtained all the information and explanations that we considered necessary for the purpose of our audit, and we were unable to determine whether adequate accounting records have been kept. 


Page 5

 
FLORENCE CARE READING LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLORENCE CARE READING LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 2, 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.


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:
Obtain an understanding of the policies and procedures management have in place to detect and prevent fraud and non-compliance with laws and regulations.
Enquire of management any cases of actual or suspected fraud and non-compliance with laws and regulations.
Enquire of management and those charged with governance around actual and potential litigation and claims.
Enquire of management, those charged with governance and the entity’s professional advisors around actual and potential litigation and claims.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Assess the key risk areas within the financial statements which are susceptible to fraud or error and design our audit approach thereon.
Perform substantive tests on a sample of transactions throughout the financial statements to ensure that no material errors have been identified.
Perform cut off tests on a sample of transactions to ensure income has been accounted for in the correct period.
Review of after year end information to ensure expenditure has been accounted for in the correct period.
Perform analytical review procedures to identify any irregularities and investigation thereon. 
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. 


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Page 6

 
FLORENCE CARE READING LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLORENCE CARE READING LIMITED (CONTINUED)


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 2006Our 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.





Philip Munk FCA FCCA (Senior Statutory Auditor)
  
for and on behalf of
TWP Accounting LLP
 
Chartered Accountants & Statutory Auditors
  
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE

29 January 2025
Page 7

 
FLORENCE CARE READING LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
Note
£
£

  

Turnover
 4 
5,006,133
4,258,831

Cost of sales
  
(3,007,693)
(2,458,055)

Gross profit
  
1,998,440
1,800,776

Administrative expenses
  
(847,670)
(2,196,053)

Other operating income
 5 
27,477
27,435

Operating profit/(loss)
 6 
1,178,247
(367,842)

Interest receivable and similar income
 10 
1,031
9

Profit/(loss) before tax
  
1,179,278
(367,833)

Tax on profit/(loss)
 11 
(264,084)
(82,981)

Profit/(loss) for the financial year
  
915,194
(450,814)

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 11 to 23 form part of these financial statements.

Page 8

 
FLORENCE CARE READING LIMITED
REGISTERED NUMBER: 04668436

BALANCE SHEET
AS AT 30 APRIL 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
3,508,849
3,378,250

  
3,508,849
3,378,250

Current assets
  

Debtors: amounts falling due within one year
 13 
2,040,144
2,543,075

Cash at bank and in hand
 14 
47,551
-

  
2,087,695
2,543,075

Creditors: amounts falling due within one year
 15 
(1,277,818)
(2,515,177)

Net current assets
  
 
 
809,877
 
 
27,898

Total assets less current liabilities
  
4,318,726
3,406,148

Creditors: amounts falling due after more than one year
 16 
(518,000)
(518,000)

Provisions for liabilities
  

Deferred tax
 17 
(52,479)
(55,095)

  
 
 
(52,479)
 
 
(55,095)

Net assets
  
3,748,247
2,833,053


Capital and reserves
  

Called up share capital 
 19 
1
1

Profit and loss account
 20 
3,748,246
2,833,052

  
3,748,247
2,833,053


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 January 2025.




................................................
Z Denning
Director

The notes on pages 11 to 23 form part of these financial statements.

Page 9

 
FLORENCE CARE READING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 May 2022
1
3,283,866
3,283,867



Loss for the year
-
(450,814)
(450,814)



At 1 May 2023
1
2,833,052
2,833,053



Profit for the year
-
915,194
915,194


At 30 April 2024
1
3,748,246
3,748,247


The notes on pages 11 to 23 form part of these financial statements.

Page 10

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1.


General information

Florence Care Reading Limited is incorporated in England and Wales and limited by shares. The principal activity of the company is operating a nursing and residential home for the elderly. The address of registered office is given in the company's information page of these financial statements.
The company's principal place of business is:
Florence House Care Home
16-22 Westcote Road,
Reading,
Berkshire,
RG30 2DE
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Turnover comprises revenue recognised by the company in respect of residential care home services supplied during the year, exclusive of Value Added Tax and trade discounts.

 
2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated.

Page 11

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)


2.3
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Long-term leasehold property
-
20%
straight line
Motor vehicles
-
15%
reducing balance
Equipment
-
25%
Reducing Balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.4

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.5

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

 
2.6

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.7

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

  
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

Page 12

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Defined benefit scheme
For a defined benefit scheme, the liability recorded in the balance sheet is the present value of the defined obligation at that date. The defined benefit obligation is calculated on an annual basis by independent actuaries.
Actuarial gains and losses are recognised in full in the period in which they occur and are shown in Other Comprehensive Income.
Current and past service costs, along with settlements or curtailments, are charged to the Income Statement. Interest on pension plan liabilities are recognised within finance expense.

 
2.10

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.11

Provisions

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

A contingent liability is disclosed where the existence of the obligations will only be confirmed by future events, or where the amount of the obligation cannot be measured with reasonable reliability.

Page 13

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


  
2.13

Trust

The Company has created a trust whose beneficiaries will include employees of the Company and their dependents. Assets held under this trust will be controlled by trustees who will be acting independently and entirely at their own discretion.
Where assets are held in the trust and these are considered by the Company to be in respect of services already provided by employees to the Company, the Company will account for these as assets of the Company until the earlier of it no longer having de facto control of these assets and it not obtaining future economic benefit from these assets. The value transferred will be charged in the Company’s profit and loss account for the year to which it relates.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Page 14

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Residential care home service
5,006,133
4,258,831

5,006,133
4,258,831


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Government grants receivable
27,435
27,435

Sundry income
42
-

27,477
27,435


The government grants are related to the release of Ring Fenced government grants relating to the purchase of qualifying  tangible fixed assets.


6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
126,488
119,617

Auditor's remuneration
17,220
16,200

Defined contribution pension cost
53,600
42,547

Contribution to Trust
-
500,000

Page 15

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2024
2023
£
£

Auditor's remuneration
17,220
16,200

2024
2023
£
£

Fees payable to the Company's auditor in respect of:


All other services
4,234
8,952

4,234
8,952


8.


Employees

Staff costs, including director's remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,574,605
2,928,527

Social security costs
261,421
323,662

Cost of defined contribution scheme
53,600
42,547

2,889,626
3,294,736


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Care home staff
85
75








9.


Director's remuneration

2024
2023
£
£

Director's emoluments
131,632
891,127

131,632
891,127


The highest paid director received remuneration of £131,632 (2023 - £891,127).

Page 16

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

10.


Interest receivable

2024
2023
£
£


Interest on director's loan account
1,031
9

1,031
9


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
264,680
72,756

Adjustments in respect of previous periods
2,020
2,415


266,700
75,171


Total current tax
266,700
75,171

Deferred tax


Origination and reversal of timing differences
(2,616)
7,810

Total deferred tax
(2,616)
7,810


Tax on profit/(loss)
264,084
82,981
Page 17

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
1,179,278
(367,833)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
294,820
(91,958)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
786
175,567

Capital allowances for year in excess of depreciation
19,926
8,584

Adjustments to tax charge in respect of prior periods
2,020
2,415

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
(216)
(6)

Short-term timing difference leading to an increase (decrease) in taxation
(2,616)
7,810

Other timing differences leading to an increase (decrease) in taxation
(50,636)
-

Changes in tax rates
-
(19,431)

Group relief
-
-

Total tax charge for the year
264,084
82,981


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

12.


Tangible fixed assets





Freehold property
Leasehold improvements
Motor vehicles
Equipment
Total

£
£
£
£
£



Cost or valuation


At 1 May 2023
4,306,545
49,406
15,995
406,452
4,778,398


Additions
213,474
-
-
43,425
256,899


Disposals
-
-
-
(69,098)
(69,098)



At 30 April 2024

4,520,019
49,406
15,995
380,779
4,966,199



Depreciation


At 1 May 2023
1,053,774
49,406
3,589
293,379
1,400,148


Charge for the year on owned assets
70,230
-
1,861
54,397
126,488


Disposals
-
-
-
(69,286)
(69,286)



At 30 April 2024

1,124,004
49,406
5,450
278,490
1,457,350



Net book value



At 30 April 2024
3,396,015
-
10,545
102,289
3,508,849



At 30 April 2023
3,252,771
-
12,406
113,073
3,378,250




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
3,396,015
3,252,772

3,396,015
3,252,772


Included in Freehold property above, is freehold land at cost £1,008,500 (2023 - £1,008,500), which is not depreciated.

Page 19

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

13.


Debtors

2024
2023
£
£


Trade debtors
171,227
218,395

Amounts owed by group undertakings
1,853,639
2,231,192

Other debtors
660
84,452

Prepayments and accrued income
14,618
9,036

2,040,144
2,543,075



14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
47,551
-

Less: bank overdrafts
-
(299,958)

47,551
(299,958)



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
-
299,958

Trade creditors
99,747
114,505

Amounts owed to group undertakings
231,530
-

Other taxation and social security
389,403
51,560

Other creditors
384,848
1,899,011

Accruals and deferred income
172,290
150,143

1,277,818
2,515,177


The bank overdrafts are secured by fixed and floating charges on the company's tangible fixed assets.
Included within other creditors is a balance of £20,325 (2023 - £828,735) owned by the company to the director.


16.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Pension scheme liability
518,000
518,000

518,000
518,000


Page 20

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

17.


Deferred taxation




2024


£






At beginning of year
(55,095)


Charged to profit or loss
2,616



At end of year
(52,479)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(52,479)
(55,095)

(52,479)
(55,095)


18.


Employer Pension Obligations

The Company has agreed to fund a defined benefit pension scheme in respect of key employees. The most recent actuarial valuation of the obligations of £518,000 (2023 - £518,000) was on 30 April 2024. During the year the expense incurred was £nil (2023 - £nil).
The principal assumptions used are:
- Discount rate – 3.1%
- Inflation RPI – 4.3%
- Inflation CPI – 3.4%
- Pre and Post Retirement mortality – S3PMA tables with improvements in the CMI 2020 model and a long term rate of improvement of 1%.
                                                                                                         
2024                  2023
Present value of defined benefit obligations                                 £518,000          £518,000
Fair value of scheme assets                                                              -                         -
Liability recognised in the balance sheet                                      £518,000          £518,000
Movements in the present value of the defined benefit obligations were as follows:

2024
2023
£
£
At the beginning of the year

518,000

518,000

Current Service Cost

-

-

Interest cost

-

-

Actuarial losses

-

-


Page 21

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary share of £1.00
1
1



20.


Reserves

Profit and loss account

The profit and loss account represents profits and losses net of adjustments and dividends.


21.


Contingent liabilities

The company received enquiries into the use of a tax scheme in the tax year 2014/15. In January 2019 HM Revenue and Customs have issued the company with Regulation 80 Tax and National Insurance Determinations, which the company is appealing against on the grounds that the company has taken advice and believes the demands to be wrong in law. In May 2024, the company has provided HM Courts & Tribunal service with a notice to appeal and the first tier tribunal is to take place in 2025 before any final decision is made.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £53,600 (2023 - £42,547). Contributions totalling £10,915 (2023 - £8,970) were payable to the fund at the balance sheet date.


23.


Director's benefits: Advances, Credit and Guarantees

At the beginning of the period the company owned £828,735 to Z Denning, the director. During the period advances totalling £1,209,465 were made to the director and total repayments of £401,055 were received from the director. The interest on the balances due by the company is charged at the rate of 2% was £nil. At the end of the period the balance due to the director was £20,235, and is included within other creditors at the balance sheet date.
Z Denning, has provided a limited guarantee of £425,000 to the company's bankers. 


24.


Related party transactions

During the year, the company  made a contribution of £nil (2023 – £500,000) to the Jasmine Care Holdings Limited Trust (the Trust), the ultimate controlling party of the company.
The company is a wholly owned subsidiary and accordingly has taken the exemptions provided within paragraph 33.1A of FRS 102 and therefore transactions with group companies have not been disclosed.

Page 22

 
FLORENCE CARE READING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

25.


Post balance sheet events

The company has accepted a resolution proposal from His Majesty's Revenue & Customs for the use of a pension obligation arrangement. The company confirms the amount of £518,000 currently included in creditors due after more than one year reversed in the accounting period end of 30 April 2025, with £480,000 being treated as chargeable income for the purposes of corporation tax. 


26.


Controlling party

The parent undertaking is Jasmine Care Holdings Limited, a company incorporated in England and Wales. The ultimate parent undertaking is Jasmine Care Group Limited, a company incorporated in England and Wales. Jasmine Care Group Limited is the parent of the largest group in which the Company is consolidated. Copies of the accounts of Jasmine Care Group Limited are available at the parent company's registered office address The Old Rectory, Church Street, Weybridge, Surrey, England, KT13 8DE. 
The ultimate controlling party at the balance sheet date is Qubic Trustees Ltd in its capacity as trustee of The Jasmine Care Holdings Limited Trust (the Trust) by virtue of its majority shareholding of the Group’s ultimate parent undertaking.
Qubic Trustees Ltd is registered in England and Wales and its registered office is St Ann's Quay, 118 Quayside, Newcastle Upon Tyne, United Kingdom, NE1 3BD.
The ultimate controlling party changed on 17 May 2024, after which date the ultimate controlling party undertaking is Alpine Skin Clinic SA, a company incorporated in Switzerland.
The Company have taken exemption from preparing a cashflow statement. The consolidated results and cashflow statements for the Company are included within the publicly available financial statements of Jasmine Care Group Limited.


Page 23