Registration number:
for the
Year Ended 30 June 2024
Taylor and Taylor Care Limited
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Taylor and Taylor Care Limited
Company Information
Director |
C A Taylor |
Registered office |
|
Bankers |
|
Auditors |
|
Taylor and Taylor Care Limited
Strategic Report for the Year Ended 30 June 2024
The director presents his strategic report for the year ended 30 June 2024.
Principal activity
The principal activity of the group is that of the provision of care for elderly people.
Fair review of the business
The Director is satisfied with the results for the year, which have been achieved in a challenging marketplace. Despite market pressures, occupancy has remained strong and fees remain competitive because of the continual development of the focused revenue strategy.
The group has taken further steps to improve recruitment and retention plans including the use of the overseas nurse programme, which has continued to reduce the number of nurse vacancies. The use of agency staffing has decreased in the year and remains below the industry average and learning and development opportunities and career pathways continue to be improved.
Throughout the year the group has continued to develop its working practices and governance to ensure homes meet Care Quality Commission (CQC) standards. Internal quality assurance monitoring accurately reflects the CQC inspection standard and the group is committed to the delivery of high quality care.
The key performance indicators for the group are turnover, profit after tax and total equity which have been noted below. Having due regard to such, the director considers that the results are good taking into account external influences.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
£ |
12,495,816 |
10,945,129 |
Profit after tax |
£ |
1,183,881 |
952,707 |
Total equity |
£ |
3,627,638 |
2,643,757 |
Principal risks and uncertainties
The sector is subject to stringent regulatory requirements set by the CQC. Undoubtedly, there are significant costs associated with achieving a compliant standard of care. The group's main customers are local authorities. Many local authorities are struggling to manage the financial pressures caused by Government budget cuts and the increasing demand for social care.
As a service provider, staff costs are the group's largest expense. The consequences of non-compliance with regulations could be significant for the Group. The Group has a robust audit system in place to ensure adherence to policies and compliance with regulatory requirements. Changes to CQC compliance are monitored to ensure policies and processes are updated. The Group maintains a risk map that is reviewed by the board. Risks also include those around health and safety compliance, legislative requirements and contractual risks.
The group incurred staff costs of £7,261,556 (2023 - £6,061,129) which equated to 58.1% (2023 - 55.0%) of turnover. The ability to recruit and retain qualified carers and nurses is a continuing challenge for all care home operators. It impacts directly on the costs of operating care homes and the quality of care provided. As a result, the group sometimes relies on agency staff to ensure a high quality of care.
Taylor and Taylor Care Limited
Strategic Report for the Year Ended 30 June 2024
Development and performance
The Group operate a comprehensive risk mapping process as part of its annual business planning cycle. This processes identifies a number of external factors affecting the group. The principal risks for the group included in the risk map considered are:
Staff recruitment
The ability to recruit and retain qualified carers and nurses is a continuing challenge for all care home operators. It impacts directly on the costs of operating care homes and the quality of care provided.
Longer-term occupancy
The group faces competition from other care providers in the regions in which it operates. If a home were to experience an increase in the volume of vacant rooms or the duration of the vacancy, income streams and profitability of the care home will be impacted. The group manages occupancy levels closely and ensures that the relationships it has with local authorities and other commissioning bodies remain strong and that there is an established proportion of self-funding clients in each home to ensure that rooms are filled promptly as they become vacant.
Approved by the
Director
Taylor and Taylor Care Limited
Director's Report for the Year Ended 30 June 2024
The director presents his report and the for the year ended 30 June 2024.
Director of the company
The director who held office during the year was as follows:
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £200,000 (2023 - £200,000). The director does not recommend payment of a further dividend.
Future developments
A key focus for the group for the next 12 months will be the increase of occupancy rates following the opening of a new home in March 2024 and the development of additional homes.
Financial instruments
Objectives and policies
The board constantly monitors the Group and Company's trading results and revise projections as appropriate to ensure that the Group and Company can meet its future obligations as they fall due.
Price risk, credit risk, liquidity risk and cash flow risk
The Group and Company is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through credit control procedures. The group's bank loans are subject to price and liquidity risk as disclosed in note 18 to the financial statements.
The Group and Company has sufficient resources available and the directors have prepared forecasts for the next 12 months that indicate that this will continue to be the case and that these cash flows will be sufficient for the Group and Company to meet its financing commitments as they fall due. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.
Disclosure of information to the auditor
The director has taken the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Taylor and Taylor Care Limited
Statement of Director's Responsibilities
The director is responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
• | select suitable accounting policies and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Taylor and Taylor Care Limited
Independent Auditor's Report to the Members of Taylor and Taylor Care Limited
Opinion
We have audited the financial statements of Taylor and Taylor Care Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's 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 opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.
Taylor and Taylor Care Limited
Independent Auditor's Report to the Members of Taylor and Taylor Care Limited
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities set out on page 5, 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 group’s and 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 director either intends to liquidate the group or 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.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the group’s industry and its control environment and reviewed the group’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
• |
reading minutes of meetings of those charged with governance. |
Taylor and Taylor Care Limited
Independent Auditor's Report to the Members of Taylor and Taylor Care Limited
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Taylor and Taylor Care Limited
Consolidated Profit and Loss Account for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The above results were derived from continuing operations.
The group has no other comprehensive income for the year.
Taylor and Taylor Care Limited
(Registration number: 12487661)
Consolidated Balance Sheet as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
- |
|
|
Debtors |
|
|
|
Cash at bank and in hand |
642,073 |
2,364,384 |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
Director
Taylor and Taylor Care Limited
(Registration number: 12487661)
Balance Sheet as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
- |
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial year of £256,717 (2023 - profit of £262,044).
Approved and authorised by the
Director
Taylor and Taylor Care Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 June 2024
Equity attributable to the parent company
Share capital |
Profit and loss account |
Total |
|
At 1 July 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2024 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2023 |
|
|
|
Taylor and Taylor Care Limited
Statement of Changes in Equity for the Year Ended 30 June 2024
Share capital |
Profit and loss account |
Total |
|
At 1 July 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2024 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2023 |
|
|
|
Taylor and Taylor Care Limited
Consolidated Statement of Cash Flows for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease in stocks |
- |
|
|
Decrease in trade debtors |
|
|
|
Decrease in trade creditors |
( |
( |
|
(Decrease)/increase in deferred income, including government grants |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
- |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Acquisition of intangible assets |
- |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
|
|
|
Repayment of bank borrowing |
( |
( |
|
Repayment of other borrowing |
( |
( |
|
Dividends paid |
( |
( |
|
Debt costs |
- |
(173,756) |
|
Net cash flows from financing activities |
|
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 July |
|
|
|
Cash and cash equivalents at 30 June |
642,073 |
2,364,384 |
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2024.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £256,717 (2023 - profit of £262,044).
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, 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 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 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.
Judgements and estimation uncertainty
These financial statements do not contain any significant judgements or estimation uncertainty. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the group’s activities. Turnover is shown net of discounts and after eliminating sales within the Group. The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold land |
Not depreciated |
Freehold property |
2% Straight line |
Furniture, fittings and equipment |
25% reducing balance |
Computers |
33% reducing balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Intangible assets other than goodwill, acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Software under development |
Under development, will be amortised once in use |
Goodwill |
Straight line over 10 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
Properties held for resale are valued at their estimate fair value.
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Rendering of services |
|
|
Other revenue |
|
|
|
|
The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Government grants |
- |
|
Miscellaneous other operating income |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Other interest receivable and similar income |
2024 |
2023 |
|
Other interest income |
18,306 |
458 |
Interest income on bank deposits |
- |
|
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Staff costs |
Group
The aggregate payroll costs (including director's remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2024 |
2023 |
|
Care staff |
|
|
Administration and support |
|
|
Directors |
|
|
|
|
Company
The aggregate payroll costs (including director's remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
Directors |
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
23,400 |
22,200 |
Other fees to auditors |
||
All other non-audit services |
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
|
86,261 |
106,391 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of revenues exempt from taxation |
- |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Decrease from tax losses for which no deferred tax asset was recognised |
( |
( |
(Decrease)/increase in UK and foreign current tax from adjustment for prior periods |
( |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Tax increase from other tax effects |
|
- |
Total tax charge |
|
|
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Liability |
Accelerated capital allowances |
|
Short-term timing differences |
( |
|
2023 |
Liability |
Accelerated capital allowances |
|
Short-term timing differences |
( |
Tax losses |
( |
|
Intangible assets |
Group
Goodwill |
Internally generated software development costs |
Total |
|
Cost |
|||
At 1 July 2023 and at 30 June 2024 |
|
|
|
Amortisation |
|||
At 1 July 2023 |
|
- |
|
Amortisation charge |
|
- |
|
At 30 June 2024 |
|
- |
|
Carrying amount |
|||
At 30 June 2024 |
|
|
|
At 30 June 2023 |
|
|
|
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Company
Internally generated software development costs |
|
Cost |
|
At 1 July 2023 and at 30 June 2024 |
|
Carrying amount |
|
At 30 June 2024 |
|
At 30 June 2023 |
|
Tangible assets |
Group
Freehold land and buildings |
Furniture, fittings and equipment |
Total |
|
Cost |
|||
At 1 July 2023 |
|
|
|
Additions |
|
|
|
At 30 June 2024 |
25,013,294 |
811,266 |
25,824,560 |
Depreciation |
|||
At 1 July 2023 |
|
|
|
Charge for the year |
|
|
|
At 30 June 2024 |
|
|
|
Carrying amount |
|||
At 30 June 2024 |
|
|
|
At 30 June 2023 |
|
|
|
Land of £5,219,672 (2023 - £5,219,672) is not depreciated.
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost and Carrying amount |
|
At 1 July 2023 and at 30 June 2024 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
Subsidiary undertakings |
Banbury Heights Ltd. The principal activity of Banbury Heights Ltd. is |
Shipston House Limited The principal activity of Shipston House Limited is |
Taylor & Taylor (Shires) Limited The principal activity of Taylor & Taylor (Shires) Limited is |
Taylor and Taylor Limited The principal activity of Taylor and Taylor Limited is |
The Julie Richardson Ltd. The principal activity of The Julie Richardson Ltd. is |
The registered address of The Julie Richardson Ltd. is 14 Dashwood Road, Banbury, Oxfordshire, OX16 5HD. The registered address of all other subsidiaries is the same as the Company.
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
During a previous period, a share for share exchange took place resulting in the company acquiring the entire share capital of a number of companies.
The consideration for the purchase is to be paid over a period of time between 20 and 30 years, depending on the company's available cash flow resource. Additional early repayments are allowed under the financing agreement and any such repayments made would reduce the overall time it takes to fulfil all obligations within the purchase agreement.
Consideration payments are interest free and therefore, as required by FRS102, the estimate future cash flows have been discounted back to their present value. This resulted in a reduction in the cost of investments purchased, and a corresponding reduction in the net present value of the liability resulting therefrom, totalling £2,459,240 at the time the share for share exchange took place.
The interest rate used in arriving at the discounted net cash flow projection is 2.45%, being 2.35% above the Bank of England's Base rate. The directors considers the rate used to be appropriate as this was extracted from the group's financing transaction at the time the share for share exchange took place. The amounts payable in relation to the above are shown within other creditors in the company's financial statements.
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Properties held for resale |
- |
|
- |
- |
Debtors |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
- |
- |
Amounts owed by group undertakings |
- |
- |
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
- |
Corporation tax asset |
|
- |
- |
- |
|
|
|
|
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
|
|
Amounts due to group undertakings |
- |
- |
- |
|
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
Other creditors |
|
|
- |
|
|
Accrued expenses |
|
|
|
|
|
Corporation tax liability |
24,593 |
470,830 |
24,593 |
- |
|
Deferred income |
- |
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
|
Other creditors |
|
|
|
|
|
|
|
|
|
Other creditors due after more than one year represent discounted deferred consideration liabilities, as detailed in note 14.
Loans and borrowings |
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
|
|
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
|
|
During the prior year, the loans previously held by the subsidiaries were consolidated within the Company under new terms. The borrowings are repayable quarterly with the final repayment in August 2042. Interest is charged at 2.12% above base rate per annum. The loan is secured over the properties held by the group.
Additional borrowings of £2,318,289 (2023 - £4,681,711) were advanced under a development facility which are repayable by bullet payment in May 2026. Interest is payable quarterly and charged at 2.87% above base rate per annum until Practical Completion of the build of the new care home, following Practical Completion, interest will be charged at 2.12% above base rate per annum. The loan is secured over the property in construction by the Company.
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
326 |
|
326 |
Dividends |
2024 |
2023 |
|
Dividends paid |
200,000 |
200,000 |
Taylor and Taylor Care Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Analysis of changes in net debt |
Group
At 1 July 2023 |
Financing cash flows |
Other non cash changes |
At 30 June 2024 |
|
Cash and cash equivalents |
||||
Cash |
2,364,384 |
(1,722,311) |
- |
642,073 |
Borrowings |
||||
Bank borrowings |
(14,668,970) |
(2,059,525) |
650,346 |
(16,078,149) |
Deferred consideration |
(6,204,870) |
384,000 |
(134,223) |
(5,955,093) |
(20,873,840) |
(1,675,525) |
516,123 |
(22,033,242) |
|
|
||||
( |
( |
|
( |
Other non-cash changes principally relate to the unwind up of discounted finance costs in respec of deferred consideration and the settlement of bank borrowings through the sale of properties held for resale.
Related party transactions |
Group
Company
Summary of transactions with key management
During the year rent and associated costs of £6,000 (2023: £15,300) was paid to Taylorcorp Limited, a company controlled by C A Taylor.
Parent and ultimate parent undertaking |
The ultimate controlling party is