BCH ESTATES LIMITED |
Report and accounts |
Contents of the Consolidated Financial Statements |
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Page |
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Company information |
1 |
Directors' report |
2 |
Statement of directors' responsibilities |
3 |
Group Strategic report |
4 |
Independent auditor's report |
5-7 |
Consolidated Income statement |
8 |
Consolidated Balance sheet |
9 |
Consolidated Statement of changes in equity |
10 |
Company Balance Sheet |
11 |
Company Statement of changes in equity |
12 |
Consolidated Statement of cash flows |
13 |
Notes to the Consolidated financial statements |
14-18 |
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The following notes do not form part of the statutory accounts |
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The trading, profit and loss account |
19 |
Schedule to the trading, profit and loss |
20 |
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BCH ESTATES LIMITED |
Group Strategic Report |
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The director presents the strategic report of the group for the period ended 31 March 2024. |
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Business review |
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The directors consider that the key performance indicators of the group to be turnover, operating profit and net financial debt. |
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Trading results |
Consolidated turnover of the group for the period ended 31 March 2024 was £8,300,667 (2023 : £5,817,116). Consolidated operating profit before taxation was £618,884 (2023: £1,225,315) |
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Business Environment |
The care home market is competitive and highly regulated. The group companies hold licence to operate the care home and receives regular inspections from Care Quality Commission and other agencies. The group companies continue to work with relevant authorities to maintain and improve the standard of care that management strives to provide. |
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Strategy |
The group is committed to the provision of care, where each person is treated as an individual within a community that supports activity, independence and choice. The group will continue to provide attractive working environment with the aim to retain quality nursing and other qualified team members. The group will reply on professionalism and efficiency of their quality staff to satisfy the needs of residents and to ensure smooth running of the home which in turn will provide an atmosphere to attract new residents. |
Principal risks and uncertainties |
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The principal risks and uncertainties facing the group are as follows: The principal commercial risk that the group faces is a loss of reputation of the care home through any adverse reports from the relevant regulators. The directors have made arrangements to ensure that standards are maintained and enhanced through their support and the employment and retention of professional staff members and the maintenance of high quality facilities. The principal financial risk to the group is attributable to its bank loan. The group maintains a liquidity buffer which is based on its liquidity needs. The liquidity buffer is monitored on a daily basis to ensure there are sufficient liquid assets to meet all of its financial obligations including bank loan interest and capital repayments. The group balance sheet is strong to meet its all financial commitments. |
Key Performance Indicators |
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The directors, who are the key management, use financial measures such as profitability, turnover and qualified staff to monitor performance as these are considered to be the main drivers of the continued success of the company. Turnover and profitability are measured on the same basis as that seen in the profit and loss account. |
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This report was approved by the board on 18 March 2025 and signed on its behalf. |
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Mr Ejaz Raja |
Director |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from the date when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The other information comprises the information included in the report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Group strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
● |
the Group strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
Auditor’s responsibilities for the audit of the accounts |
Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts. |
Irregularities include fraud and other 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. |
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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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Enquiry of management and those charged with governance around actual and potential litigations and claims; |
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Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations; |
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Reviewing minutes of meetings of those charged with governance; |
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Reviewing financial statement disclosure and testing to supporting documents to assess compliance with applicable laws and regulations; |
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Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bids. |
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Because of the inherent limitations of an audit. There is risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statement of non-compliance with regulations. This risk increases further when that compliance with law and regulation is removed from the event and transection reflected in the financial statement , as we will be less likely to become aware of instances of non-compliance, the risk is also greater regarding irregularities occurring due to fraud rather then error, as fraud involves intentional concealment, forgery, collusion,omission,or misrepresentation, |
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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 them in as 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. |
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Mr Opinder Singh Sawhney |
(Senior Statutory Auditor) |
Harrow Business Centre |
for and on behalf of |
429-433 Pinner Road |
Sawhney Consulting |
North Harrow |
Accountants and Statutory Auditors |
Middlesex |
18 March 2025 |
HA1 4HN |
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BCH ESTATES LIMITED |
Consolidated Statement of Cash Flows |
for the year ended 31 March 2024 |
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Notes |
|
2024 |
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2023 |
£ |
£ |
Operating activities |
Profit for the period |
371,414 |
|
1,020,002 |
|
Income from investments |
50,006 |
|
- |
Interest payable |
445,336 |
|
155,854 |
Tax on profit on ordinary activities |
247,470 |
|
205,313 |
Depreciation |
294,758 |
|
92,738 |
Amortisation of goodwill |
300,000 |
|
- |
Decrease in stocks |
- |
|
- |
(Increase)/decrease in debtors |
(228,504) |
|
81,045 |
Increase in creditors |
87,333 |
|
148,629 |
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|
|
1,567,813 |
|
1,703,581 |
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Interest paid |
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|
(445,336) |
|
(155,854) |
Corporation tax paid |
(247,470) |
|
(205,313) |
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Cash generated by operating activities |
875,007 |
|
1,342,414 |
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Investing activities |
Payments to acquire intangible fixed assets |
(3,000,000) |
|
- |
Payments to acquire tangible fixed assets |
(335,444) |
|
(168,457) |
Payments to acquire investment properties |
(24,996) |
|
(27,117) |
Payments to acquire investments |
(2,308,789) |
|
- |
Cash used in investing activities |
(5,669,229) |
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(195,574) |
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|
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Financing activities |
Equity dividends paid |
(143,750) |
|
(155,000) |
Cash generated from additional loan |
3,830,211 |
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(212,349) |
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Cash generated by/(used in) financing activities |
3,686,461 |
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(367,349) |
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Net cash (used)/generated |
Cash generated by operating activities |
875,007 |
|
1,342,414 |
Cash used in investing activities |
(5,669,229) |
|
(195,574) |
Cash generated by/(used in) financing activities |
3,686,461 |
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(367,349) |
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Net cash (used)/generated |
(1,107,760) |
|
779,491 |
|
Cash and cash equivalents at 1 April |
2,296,972 |
|
1,517,481 |
Cash and cash equivalents at 31 March |
1,189,212 |
|
2,296,972 |
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Cash and cash equivalents comprise: |
Cash at bank |
1,189,212 |
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2,296,972 |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Audit information |
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The audit report is unqualified. |
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Senior statutory auditor: |
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Mr Opinder Singh Sawhney |
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Firm: |
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Sawhney Consulting |
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Date of audit report: |
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18 March 2025 |
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3 |
Analysis of turnover |
2024 |
2023 |
£ |
£ |
|
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Rendering of services |
8,300,667 |
5,817,116 |
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8,300,667 |
5,817,116 |
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4 |
Operating profit |
2024 |
2023 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
294,758 |
92,738 |
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Auditors' remuneration for audit services |
31,995 |
15,300 |
|
Contributions to defined benefit pension plans |
1,018 |
702 |
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5 |
Directors' emoluments |
2024 |
2023 |
£ |
£ |
|
Emoluments |
91,890 |
42,400 |
|
Contributions to defined contribution pension plans |
1,018 |
702 |
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|
|
|
|
|
92,908 |
43,102 |
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6 |
Staff costs |
2024 |
2023 |
£ |
£ |
|
|
Wages and salaries - Direct cost |
5,039,212 |
3,282,438 |
|
Wages and salaries - sales and admin |
106,935 |
66,884 |
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Social security costs |
20,086 |
6,817 |
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|
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|
|
5,166,233 |
3,356,139 |
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7 |
Average number of employees during the year |
Number |
Number |
|
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Staff |
147 |
147 |
|
|
|
|
|
|
|
147 |
147 |
|
|
|
|
|
|
|
|
|
|
8 |
Interest payable |
2024 |
2023 |
£ |
£ |
|
Bank loans and overdrafts |
445,336 |
155,854 |
|
|
9 |
Taxation |
2024 |
2023 |
£ |
£ |
|
Analysis of charge in period |
|
UK corporation tax on profits of the period |
247,470 |
205,313 |
|
Corporation tax prior year adjustments |
- |
- |
|
|
|
|
|
|
|
247,470 |
205,313 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
- |
- |
|
Tax on profit on ordinary activities |
247,470 |
205,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
2023 |
£ |
£ |
|
Profit on ordinary activities before tax |
618,884 |
1,225,315 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
19% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
|
|
|
|
154,721 |
232,810 |
|
Expenses not deductible for tax purposes |
92,749 |
(27,497) |
|
|
Current tax charge for period |
247,470 |
205,313 |
|
|
|
|
|
|
|
|
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10 |
Intangible fixed assets : Group |
£ |
|
Goodwill: |
|
Cost |
|
At 1 April 2023 |
550,000 |
|
Additions |
3,000,000 |
|
Disposals |
- |
|
At 31 March 2024 |
3,550,000 |
|
|
|
|
|
|
|
|
|
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Amortisation |
|
At 1 April 2023 |
550,000 |
|
Provided during the year |
300,000 |
|
On disposals |
- |
|
At 31 March 2024 |
850,000 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2024 |
2,700,000 |
|
At 31 March 2023 |
- |
|
|
|
|
|
|
|
|
|
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Goodwill is being written off in equal annual instalments over its estimated economic life of 10 years. |
|
11 |
Tangible fixed assets - GROUP |
|
|
|
Freehold land & building |
|
Office Equipment & Plant and machinery |
|
Motor vehicles |
Total |
£ |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 April 2023 |
6,621,332 |
|
1,942,137 |
|
110,498 |
8,673,967 |
|
Additions |
- |
|
230,973 |
|
104,471 |
335,444 |
|
At 31 March 2024 |
6,621,332 |
|
2,173,110 |
|
214,969 |
9,009,411 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2023 |
- |
|
1,665,983 |
|
23,169 |
1,689,152 |
|
Charge for the year |
- |
|
253,096 |
|
41,662 |
294,758 |
|
At 31 March 2024 |
- |
|
1,919,079 |
|
64,831 |
1,983,910 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2024 |
6,621,332 |
|
254,031 |
|
150,138 |
7,025,501 |
|
At 31 March 2023 |
6,621,332 |
|
276,154 |
|
87,329 |
6,984,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Tangible fixed assets - Company |
|
|
|
Freehold land & building |
|
Office equipments |
|
Motor Vehicels |
Total |
£ |
£ |
£ |
|
Cost |
|
At 1 April 2023 |
3,621,898 |
|
1758 |
|
51,090 |
3,674,746 |
|
Additions |
- |
|
1,523 |
|
104,471 |
105,994 |
|
At 31 March 2024 |
3,621,898 |
|
3,281 |
|
155,561 |
3,780,740 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2023 |
- |
|
391 |
|
5,960 |
6,351 |
|
Charge for the year |
- |
|
656 |
|
31,112 |
31,768 |
|
At 31 March 2024 |
- |
|
1,047 |
|
37,072 |
38,119 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 March 2024 |
3,621,898 |
|
2,234 |
|
118,489 |
3,742,621 |
|
At 31 March 2023 |
3,621,898 |
|
1,367 |
|
45,130 |
3,668,395 |
|
|
|
|
|
|
|
|
|
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12 |
Individual Income Statement |
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As permitted by Sec 408 of the Companies Act 2006, the income statement of the parent company is not presented as part of these financial statement. |
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|
13 |
Debtors |
GROUP |
|
COMPANY |
|
|
|
2024 |
|
2023 |
|
2024 |
2023 |
£ |
£ |
£ |
£ |
|
|
Trade debtors |
589,424 |
|
338,205 |
|
|
- |
|
Amounts owed by group undertakings |
|
- |
|
- |
|
2,121,173 |
654,874 |
|
Other debtors |
269,398 |
|
292,113 |
|
19,972 |
956 |
|
|
|
858,822 |
|
630,318 |
|
2,141,145 |
655,830 |
|
|
|
|
|
|
|
|
|
14 |
Creditors: amounts falling due within one year |
|
|
|
GROUP |
|
COMPANY |
|
|
|
2024 |
|
2023 |
|
2024 |
2023 |
£ |
£ |
£ |
£ |
|
Trade creditors |
197,648 |
|
179,742 |
|
98 |
42,385 |
|
Amounts owed to group companies |
- |
|
- |
|
- |
2,141,000 |
|
Other taxes and social security costs |
353,397 |
|
247,359 |
|
5,322 |
433 |
|
Bank loans and overdrafts |
240,173 |
|
243,831 |
|
112,587 |
135,774 |
|
Other creditors |
224,653 |
|
261,264 |
|
39,426 |
6,080 |
|
|
|
1,015,871 |
|
932,196 |
|
157,433 |
2,325,672 |
|
|
|
|
|
|
|
|
|
15 |
Creditors: amounts falling due after one year |
|
|
|
GROUP |
|
COMPANY |
|
|
|
2024 |
|
2023 |
|
2024 |
£ |
£ |
|
|
Bank loans |
7,731,254 |
|
3,897,385 |
|
3,007,363 |
3,098,307 |
|
|
|
7,731,254 |
|
3,897,385 |
|
3,007,363 |
3,098,307 |
|
|
|
|
|
|
|
|
|
|
The banks loans are secured by first legal charge over the freehold properties held by the group companies. |
|
|
|
|
|
|
|
|
|
|
|
16 |
Share capital |
Nominal |
|
2024 |
|
2024 |
2023 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
- |
|
Ordinary shares |
£1 each |
|
20,000 |
|
20,000 |
20,000 |
|
|
|
|
|
|
|
20,000 |
20,000 |
|
|
|
|
|
|
|
|
|
|
17 |
Profit and loss account |
2024 |
2023 |
£ |
£ |
|
|
At 1 April |
5,164,868 |
4,299,866 |
|
Pre-acquisition Profit |
94,414 |
- |
|
Profit for the financial year |
371,414 |
1,020,002 |
|
Dividends |
(143,750) |
(155,000) |
|
|
At 31 March |
5,486,946 |
5,164,868 |
|
|
|
|
|
|
|
|
|
|
18 |
Dividends |
2024 |
|
2023 |
£ |
£ |
|
Dividends on ordinary shares (note 17) |
143,750 |
|
155,000 |
|
|
|
|
|
143,750 |
|
155,000 |
|
|
|
|
|
|
|
|
19 |
Acquisition of Subsidiary |
|
On 14 July 2023, the company acquired 100% equity interest in Coppermill Care limited, a carehome company. The acquisition aligns |
|
with the group strategy to expand market presence. Goodwill arising from the acquisition represents the future economic benefits and |
|
anticipated synergies. |
|
Pre-acquisition retained earnings of £94,414 has been eliminated and transferred to the consolidation reserve. Post-acquisition profit |
|
of £82,471 has been included in the group's consolidated retained earnings. |
|
20 |
Comparble figures |
|
The previous year figures have been regrouped and re-classified wherever it is necessary. |
|
21 |
Legal form of entity and country of incorporation |
|
|
BCH ESTATES LIMITED is a private company limited by shares and incorporated in England. |
|
22 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
Suite 311, Harrow Business Centre |
|
429-433 Pinner Road |
|
United Kingdom |
|
HA1 4HN |