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Registered number: 06474020
Cove Care Residential Limited
Unaudited Financial Statements
For The Year Ended 31 January 2024
Contents
Page
Balance Sheet 1—2
Notes to the Financial Statements 3—7
Page 1
Balance Sheet
Registered number: 06474020
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 4 4,648,666 7,166,029
4,648,666 7,166,029
CURRENT ASSETS
Debtors 5 358,665 1,930,758
Cash at bank and in hand 196,370 1,170,504
555,035 3,101,262
Creditors: Amounts Falling Due Within One Year 6 (2,391,728 ) (2,170,369 )
NET CURRENT ASSETS (LIABILITIES) (1,836,693 ) 930,893
TOTAL ASSETS LESS CURRENT LIABILITIES 2,811,973 8,096,922
Creditors: Amounts Falling Due After More Than One Year 7 (7,852,792 ) (6,885,953 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 10 - (47,418 )
NET (LIABILITIES)/ASSETS (5,040,819 ) 1,163,551
CAPITAL AND RESERVES
Called up share capital 11 2 2
Profit and Loss Account (5,040,821 ) 1,163,549
SHAREHOLDERS' FUNDS (5,040,819) 1,163,551
Page 1
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For the year ending 31 January 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.
On behalf of the board
Mr Lee Smith
Director
24 January 2025
The notes on pages 3 to 7 form part of these financial statements.
Page 2
Page 3
Notes to the Financial Statements
1. General Information
Cove Care Residential Limited is a private company, limited by shares, incorporated in England & Wales, registered number 06474020 . The registered office is 51 51 Waterloo Road, Wolverhampton, WV1 4QJ.
The financial statements are presented in pound sterling (£) and rounded to the nearest whole £.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
2.2. Going Concern Disclosure
In preparing the financial statements for the year ended 31st January 2024, the directors have adopted the going concern basis of accounting. This decision is based on a thorough review of the company's financial performance, position, and future projections.
During the financial year, the company has benefited from significant capital injections provided by shareholders and loan providers. These funds have strengthened the company's liquidity position and provided essential financial stability.
In addition to the capital injections, the company has implemented a strategic shift which has shown a positive impact on performance. The new strategy has resulted in improved operational efficiencies and increased profitability.
The directors have assessed the company's cash flow forecasts and have considered the availability of additional financing if required. Based on this assessment, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors acknowledge their responsibility to monitor the company's financial position and to take appropriate actions as necessary to ensure the company's ongoing viability.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the provision of residential care services to young persons. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Turnover is recognised as the company becomes entitled to the consideration received, therefore turnover includes an element of services provided but not yet invoiced.
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold Property 2% straight line
Freehold Improvements 10% straight line
Plant & Machinery 25% straight line
Motor Vehicles 25% reducing balance
Additions are depreciated on a pro-rata basis of the annual rate from the month of addition.
Depreciation policies were updated in the year to give a true an fair estimate of the market value of the assets. This change has resulted in an impairment loss as shown in Note 7. 
2.5. Leasing and Hire Purchase Contracts
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
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2.6. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
2.7. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2.8. Irrecoverable Loan Written Off
In the current financial year, the company has written off an irrecoverable loan amounting to £1,847,530, a company that was intended to become part of the group structure. Unfortunately, due to the unforeseen death of a director and subsequent liquidity issues, the business venture has failed, and it has been determined that the loan will not be recoverable. This loan write-off is recognised as an expense in the statement of profit or loss.
3. Average Number of Employees
Average number of employees, including directors, during the year was: 75 (2023: 54)
75 54
4. Tangible Assets
Land & Property
Freehold Property Freehold Improvements Plant & Machinery Motor Vehicles Total
£ £ £ £ £
Cost
As at 1 February 2023 4,353,799 2,214,769 616,592 338,517 7,523,677
Additions - 836,604 64,914 107,303 1,008,821
Disposals - (54,217 ) (145,197 ) (60,790 ) (260,204 )
As at 31 January 2024 4,353,799 2,997,156 536,309 385,030 8,272,294
Depreciation
As at 1 February 2023 - - 200,204 157,444 357,648
Provided during the period 19,859 5,450 117,198 65,344 207,851
Impairment losses 267,556 2,685,469 325,871 - 3,278,896
Disposals - (43,875 ) (140,229 ) (36,663 ) (220,767 )
As at 31 January 2024 287,415 2,647,044 503,044 186,125 3,623,628
...CONTINUED
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Net Book Value
As at 31 January 2024 4,066,384 350,112 33,265 198,905 4,648,666
As at 1 February 2023 4,353,799 2,214,769 416,388 181,073 7,166,029
Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:
2024 2023
£ £
Plant & Machinery 91,621 -
Motor Vehicles 162,083 164,659
253,704 164,659
5. Debtors
2024 2023
£ £
Due within one year
Trade debtors 134,070 306,564
Prepayments and accrued income 30,390 134,362
Other debtors 4,195 1,335,832
Deferred tax current asset 117,537 -
Directors' loan accounts 72,473 154,000
358,665 1,930,758
6. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 51,503 109,483
Trade creditors 488,911 799,748
Bank loans and overdrafts 425,846 384,594
Corporation tax 28,718 67,009
Other taxes and social security 171,733 51,664
Net wages 105,973 84,180
Other creditors 10,798 5,634
Accruals and deferred income 182,689 247,509
Directors' loan accounts 90,078 -
Amounts owed to related parties 835,479 420,548
2,391,728 2,170,369
7. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 175,065 133,264
Bank loans 7,677,727 6,752,689
7,852,792 6,885,953
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8. Secured Creditors
Of the creditors falling due within and after more than one year the following amounts are secured.
The bank loan is secured by a fixed and floating charge over the company and all property and assets present and future including goodwill, book debts, uncalled capital, building fixtures, fixed plant and machinery. Specific charges are made on the properties known as 23 Haybridge Road, 134 Haybridge Road, 93 The Nabb, 1 Waite Road, Henley House, Church Road and Smallwood Manor.
2024 2023
£ £
Bank loans and overdrafts 7,787,429 6,738,547
9. Obligations Under Finance Leases and Hire Purchase
2024 2023
£ £
The future minimum finance lease payments are as follows:
Not later than one year 51,503 109,483
Later than one year and not later than five years 175,065 133,264
226,568 242,747
226,568 242,747
10. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences (117,537) 47,418
11. Share Capital
2024 2023
£ £
Allotted, Called up and fully paid 2 2
12. Pension Commitments
The company operates a defined contribution pension scheme for its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Included within other creditors at the balance sheet date are unpaid contributions of £7,045 (2023: £5,254) due to the fund.
13. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
As at 1 February 2023 Amounts advanced Amounts repaid Amounts written off As at 31 January 2024
£ £ £ £ £
Mr Lee Smith 77,000 72,473 77,000 - 72,473
Interest at 2% has been charged on the outstanding balance. The loans are repayable on demand. 
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14. Related Party Transactions
Cove Care Holdings LimitedParent company.Included within amounts owed to related parties is a balance of £174,621 (2023: £3,242 Debtor) owed to the connected company.

Cove Care Holdings Limited

Parent company.

Included within amounts owed to related parties is a balance of £174,621 (2023: £3,242 Debtor) owed to the connected company.

Cove Care Transitions LimitedA company under the control of the directors.Included within amounts owed to related parties is a balance of £543,456 (2023: £271,847) owed to the connected company.

Cove Care Transitions Limited

A company under the control of the directors.

Included within amounts owed to related parties is a balance of £543,456 (2023: £271,847) owed to the connected company.

Cove Healthcare LimitedA company in liquidation under the control of the directors.Included as an Irrecoverable Loan written off is a balance of £1,847,530 (2023: £1,349,072 Debtor).

Cove Healthcare Limited

A company in liquidation under the control of the directors.

Included as an Irrecoverable Loan written off is a balance of £1,847,530 (2023: £1,349,072 Debtor).

Cove Academy and Training LimitedA company under common controlIncluded within amounts owed to related parties is a balance of £117,402 (2023: £148,700) owed to the connected company.

Cove Academy and Training Limited

A company under common control

Included within amounts owed to related parties is a balance of £117,402 (2023: £148,700) owed to the connected company.

During the year dividends of £nil (2023: £278,595) were paid to the holding company. During the year, the company paid £668,984 (2023: £369,931) to Cove Healthcare Limited in guarantee commission interest charges. 
No interest has been charged on any outstanding balances and all loans are repayable on demand.
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