Caseware UK (AP4) 2023.0.135 2023.0.135 2024-06-302024-06-30false63false2023-07-01falseResidential nursing care facilities67false 06408512 2023-07-01 2024-06-30 06408512 2024-06-30 06408512 2023-06-30 06408512 2023-07-01 2024-06-30 06408512 2022-07-01 2023-06-30 06408512 2024-06-30 06408512 2023-06-30 06408512 2022-07-01 06408512 c:PriorPeriodIncreaseDecrease 2023-07-01 2024-06-30 06408512 d:Director1 2023-07-01 2024-06-30 06408512 d:Director2 2023-07-01 2024-06-30 06408512 d:RegisteredOffice 2023-07-01 2024-06-30 06408512 d:Agent1 2023-07-01 2024-06-30 06408512 c:Buildings 2023-07-01 2024-06-30 06408512 c:Buildings 2024-06-30 06408512 c:Buildings 2023-06-30 06408512 c:Buildings c:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 06408512 c:FurnitureFittings 2023-07-01 2024-06-30 06408512 c:FurnitureFittings 2024-06-30 06408512 c:FurnitureFittings 2023-06-30 06408512 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 06408512 c:OfficeEquipment 2023-07-01 2024-06-30 06408512 c:OfficeEquipment 2024-06-30 06408512 c:OfficeEquipment 2023-06-30 06408512 c:OfficeEquipment c:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 06408512 c:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 06408512 c:Goodwill 2024-06-30 06408512 c:Goodwill 2023-06-30 06408512 c:CurrentFinancialInstruments 2024-06-30 06408512 c:CurrentFinancialInstruments 2023-06-30 06408512 c:CurrentFinancialInstruments c:WithinOneYear 2024-06-30 06408512 c:CurrentFinancialInstruments c:WithinOneYear 2023-06-30 06408512 c:ReportableOperatingSegment1 2023-07-01 2024-06-30 06408512 c:ReportableOperatingSegment1 2022-07-01 2023-06-30 06408512 e:UnitedKingdom 2023-07-01 2024-06-30 06408512 e:UnitedKingdom 2022-07-01 2023-06-30 06408512 c:UKTax 2023-07-01 2024-06-30 06408512 c:UKTax 2022-07-01 2023-06-30 06408512 c:ShareCapital 2023-07-01 2024-06-30 06408512 c:ShareCapital 2024-06-30 06408512 c:ShareCapital 2022-07-01 2023-06-30 06408512 c:ShareCapital 2023-06-30 06408512 c:ShareCapital 2022-07-01 06408512 c:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 06408512 c:RetainedEarningsAccumulatedLosses 2024-06-30 06408512 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2023-07-01 2024-06-30 06408512 c:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 06408512 c:RetainedEarningsAccumulatedLosses 2023-06-30 06408512 c:RetainedEarningsAccumulatedLosses 2022-07-01 06408512 d:OrdinaryShareClass1 2023-07-01 2024-06-30 06408512 d:OrdinaryShareClass1 2024-06-30 06408512 d:OrdinaryShareClass1 2023-06-30 06408512 d:FRS102 2023-07-01 2024-06-30 06408512 d:Audited 2023-07-01 2024-06-30 06408512 d:FullAccounts 2023-07-01 2024-06-30 06408512 d:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 06408512 f:PoundSterling 2023-07-01 2024-06-30 06408512 c:ShareCapital c:PriorPeriodErrorIncreaseDecrease 2023-07-01 2024-06-30 06408512 c:RetainedEarningsAccumulatedLosses c:PreviouslyStatedAmount 2023-06-30 06408512 c:PreviouslyStatedAmount 2023-06-30 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 06408512









XCEL CARE HOMES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
XCEL CARE HOMES LIMITED
 
 
COMPANY INFORMATION


Directors
Mrs V Nadesan 
Mrs R Thillainathan 




Registered number
06408512



Registered office
Dorley House
19-20 Bedfordwell Road

Eastbourne

East Sussex

BN21 2BG




Independent auditors
Mantax Lynton
Chartered  Accountants & Statutory Auditors

Suite 207 Equitable House

7 General Gordon Square

London

SE18 6FH




Bankers
Barclays  Bank
Birmingham

B1 3PF





 
XCEL CARE HOMES LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Analysis of net debt
13
Notes to the financial statements
14 - 25


 
XCEL CARE HOMES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The director presents the strategic report for the year ended 30 June 2024..
 

Business review
 
The principal activity of the company during the year was that of elderly nursing homes at 35 Consort Close, Torr Lane, Plymouth, PL3 5TX.
Despite difficult trading conditions, turnover of the Company has increased from £3.01 million in 2023 to £3.2 million in the current year. Similarly, operating profits increased from £913k in 2023 to £1.02 million in the current year. The directors are pleased with the performance of the Company and believe that the Company will be able to maintain steady growth in sales and operating profits in the foreseeable future. The Company's net assets have increased from £3.1 million in 2023 to £3.8 million in the current year.
 
Principal risks include non-compliance with regulation, fee income not rising in line with the cost of providing care, lack of nursing resources and general increase in costs. The company is investing in training in order to improve the employees' skill and enhance the customer service.
The key to our success is our highly motivated, trained and dedicated staff team. We continue working as a team, supporting and training on each other to ensure that our resident's needs are met within a safe environment.
The company has undertaken as assessment of its business plans and the directors are confident that the Company is well placed to cope with future uncertainties. 

Page 1

 
XCEL CARE HOMES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Principal risks and uncertainties
 
Operating Risk:
Company faces challenges to safeguard residents in varying health condition which may result in non compliance with regulation. Directors have dedicated more resources for care, food safety and health and safety in place. Also continuous quality monitoring, audit programs and good recruitment procedures will help mitigate those risks. Due to continued pressure being exerted to reduce Government and Local Authority spending, Company's revenue from social services is not increasing in line with increase in costs. Directors are working closely with commissioning bodies to improve the revenue from social services and continue to focus more on the provision of care to privately funded residents.
Financial Risk:
The company holds or issues financial instruments in order to achieve three main objectives, being:
(a) to finance its operations;
(b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and
(c) for trading purposes.
In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.
Credit Risk
The company monitors credit risk closely and considers that its current policies of credit checks meet its objectives of managing exposure to credit risk. The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments

Financial key performance indicators
 
Turnover: Directors monitor turnover on regular basis and any major variance from expectation is further discussed with care home manager. 
Wages: Wages being the major cost, directors regularly monitor the wages cost and always look for the ways to
improve the efficiency without compromising the quality of care service provided.

Other key performance indicators
 
Occupancy of the care home is one of the key performance indicator for this industry. Directors monitor the occupancy on weekly basis and discuss with manager.


This report was approved by the board on 19 March 2025 and signed on its behalf.



Mrs V Nadesan
Director

Page 2

 
XCEL CARE HOMES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £645,418 (2023 - £634,366).



Directors

The directors who served during the year were:

Mrs V Nadesan 
Mrs R Thillainathan 




Page 3

 
XCEL CARE HOMES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

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

Auditors

The auditorsMantax Lyntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 March 2025 and signed on its behalf.
 





Mrs V Nadesan
Director

Page 4

 
XCEL CARE HOMES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF XCEL CARE HOMES LIMITED
 

Opinion


We have audited the financial statements of Xcel Care Homes Limited (the 'Company') for the year ended 30 June 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
XCEL CARE HOMES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF XCEL CARE HOMES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters 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 the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
XCEL CARE HOMES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF XCEL CARE HOMES LIMITED (CONTINUED)


Auditors' 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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Care Quality Commission (CQC) regulations, Companies Act 2006, FRS 102 and relevant taxation legislation. 
 
We identified the greatest risks of material impact on the financial statements from irregularities, including fraud, to be override of controls by management, inappropriate revenue recognition and going concern. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, reviewing accounting estimates for biases corroborating revenue recognised by the company through agreements to supporting documentation corroborating intangible additions to supporting documentation and ensuring accounting policies are appropriate under United Kingdom Generally Accepted Accounting Practice and applicable law.
 
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
 
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.


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


Page 7

 
XCEL CARE HOMES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF XCEL CARE HOMES LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.





Mr Janak Raj Pokhrel (Senior statutory auditor)
  
for and on behalf of
Mantax Lynton
 
Chartered  Accountants & Statutory Auditors
  
Suite 207 Equitable House
7 General Gordon Square
London
SE18 6FH

19 March 2025
Page 8

 
XCEL CARE HOMES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
3,266,754
3,015,030

Cost of sales
  
(149,529)
(156,448)

Gross profit
  
3,117,225
2,858,582

Administrative expenses
  
(2,114,271)
(1,944,655)

Other operating income
 5 
21,790
-

Operating profit
  
1,024,744
913,927

Interest payable and similar expenses
 8 
(139,821)
(101,887)

Profit before tax
  
884,923
812,040

Tax on profit
 9 
(239,505)
(177,674)

Profit for the financial year
  
645,418
634,366

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

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

The notes on pages 14 to 25 form part of these financial statements.

Page 9

 
XCEL CARE HOMES LIMITED
REGISTERED NUMBER: 06408512

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
2,160,397
2,228,290

  
2,160,397
2,228,290

Current assets
  

Debtors: amounts falling due within one year
 13 
7,062,374
7,039,850

Cash at bank and in hand
 14 
225,204
361,257

  
7,287,578
7,401,107

Creditors: amounts falling due within one year
 15 
(5,668,325)
(6,495,165)

Net current assets
  
 
 
1,619,253
 
 
905,942

Total assets less current liabilities
  
3,779,650
3,134,232

  

Net assets
  
3,779,650
3,134,232


Capital and reserves
  

Called up share capital 
 16 
150
150

Profit and loss account
 17 
3,779,500
3,134,082

  
3,779,650
3,134,232


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 March 2025.




Mrs V Nadesan
Director

The notes on pages 14 to 25 form part of these financial statements.

Page 10

 
XCEL CARE HOMES LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2022
150
2,699,716
2,699,866


Comprehensive income for the year

Profit for the year

-
634,366
634,366


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
634,366
634,366


Contributions by and distributions to owners

Dividends: Equity capital
-
(200,000)
(200,000)


Total transactions with owners
-
(200,000)
(200,000)



At 1 July 2023 (as previously stated)
150
2,934,082
2,934,232

Prior year adjustment - correction of error
-
200,000
200,000


At 1 July 2023 (as restated)
150
3,134,082
3,134,232


Comprehensive income for the year

Profit for the year

-
645,418
645,418


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
645,418
645,418


Total transactions with owners
-
-
-


At 30 June 2024
150
3,779,500
3,779,650


The notes on pages 14 to 25 form part of these financial statements.

Page 11

 
XCEL CARE HOMES LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

As restated
2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
884,923
812,040

Adjustments for:

Depreciation of tangible assets
70,349
69,947

Interest paid
139,821
101,887

(Increase) in debtors
(22,525)
(64,133)

(Decrease) in creditors
(859,902)
(1,110,998)

Corporation tax (paid)
(177,736)
(358,609)

Net cash generated from operating activities

34,930
(549,866)


Cash flows from investing activities

Purchase of tangible fixed assets
(2,455)
(11,318)

Net cash from investing activities

(2,455)
(11,318)

Cash flows from financing activities

Repayment of loans
(28,707)
(124,828)

Dividends paid
-
(200,000)

Interest paid
(139,821)
(101,887)

Net cash used in financing activities
(168,528)
(426,715)

Net (decrease) in cash and cash equivalents
(136,053)
(987,899)

Cash and cash equivalents at beginning of year
361,257
1,349,156

Cash and cash equivalents at the end of year
225,204
361,257


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
225,204
361,257

225,204
361,257


The notes on pages 14 to 25 form part of these financial statements.

Page 12

 
XCEL CARE HOMES LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

361,257

(136,053)

225,204

Debt due within 1 year

(2,006,668)

28,707

(1,977,961)


(1,645,411)
(107,346)
(1,752,757)

The notes on pages 14 to 25 form part of these financial statements.

Page 13

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Xcel Care Homes Ltd is a private company, limited by shares, registered in England and Wales its registered office is provided at company information page. The principal activity of the company during the year was that of providing residential care to elderly.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Going concern

The company is maintaining a steady profit and have a reasonably good liquidity and net assets position at year end. After making the necessary enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and prepared these financial statements under going concern assumption.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 14

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.4

Government grants

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

 
2.5

Finance costs

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

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

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

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

 
2.8

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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


 
2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 15

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.

Depreciation is provided on the following basis:

Freehold property
-
Over 50 years, straight line method
Fixtures and fittings
-
25% reducing balance method
Office equipment
-
25% reducing balance method

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

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

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

Creditors

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

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Page 16

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)


Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management are required to make estimates and judgments which may materially affect reported income, expenses, assets, liabilities or disclosure of contingent assets and liabilities, and the valuation of investment properties, which were based on open market transactions. The estimates and assumptions are reviewed on an on-going basis and are based on historical experience and other factors that are considered to be relevant. Actual results may defer from these estimates. 
Revision to accounting estimates are recognised in the period in which the estimate is revised.


4.


Turnover

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


2024
2023
£
£

Residential care
3,266,754
3,015,030

3,266,754
3,015,030


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
3,266,754
3,015,030

3,266,754
3,015,030



5.


Other operating income

2024
2023
£
£

Other operating income
13,670
-

Grants and reimbursement for Covid related costs
8,120
-

21,790
-


Page 18

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
3,960
6,000


7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
1,545,721
1,371,814

Social security costs
138,964
118,443

Cost of defined contribution scheme
20,350
14,157

1,705,035
1,504,414


The directors did not take any remuneration during the year (2023: £nil).

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


        2024
        2023
            No.
            No.







Management & Admin
2
2



Care workers
65
61

67
63


8.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
139,821
101,887

139,821
101,887

Page 19

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
239,505
177,674


239,505
177,674


Total current tax
239,505
177,674

Deferred tax

Total deferred tax
-
-


Tax on profit
239,505
177,674

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 2519% upto 31 March 2023 and 25% thereafter). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
884,923
812,040


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
221,231
166,434

Effects of:


Depreciation in excess of capital allowances
16,718
11,240

Unpaid pension contribution
1,556
-

Total tax charge for the year
239,505
177,674


Factors that may affect future tax charges

There were no factors that may affect future tax charges.



Page 20

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Dividends

As restated
2024
2023
£
£


Dividends - Ordinary shares
-
200,000

-
200,000


11.


Intangible assets




Goodwill

£



Cost


At 1 July 2023
2,427,500



At 30 June 2024

2,427,500



Amortisation


At 1 July 2023
2,427,500



At 30 June 2024

2,427,500



Net book value



At 30 June 2024
-



At 30 June 2023
-



Page 21

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

12.


Tangible fixed assets





Freehold property
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 July 2023
3,189,933
121,330
73,971
3,385,234


Additions
-
-
2,455
2,455



At 30 June 2024

3,189,933
121,330
76,426
3,387,689



Depreciation


At 1 July 2023
983,797
111,825
61,322
1,156,944


Charge for the year on owned assets
63,798
2,376
4,174
70,348



At 30 June 2024

1,047,595
114,201
65,496
1,227,292



Net book value



At 30 June 2024
2,142,338
7,129
10,930
2,160,397



At 30 June 2023
2,206,136
9,505
12,649
2,228,290

There were no capital commitments at year end.


13.


Debtors

2024
2023
£
£


Trade debtors
65,655
41,896

Other debtors
6,983,495
6,985,011

Prepayments and accrued income
13,224
12,943

7,062,374
7,039,850


Page 22

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
225,204
361,257

225,204
361,257



15.


Creditors: Amounts falling due within one year

As restated
2024
2023
£
£

Bank loans
1,977,961
2,006,668

Trade creditors
28,499
19,014

Corporation tax
239,442
177,673

Other taxation and social security
37,264
37,828

Other creditors
3,320,027
4,211,551

Accruals and deferred income
65,132
42,431

5,668,325
6,495,165


The following liabilities were secured:

2024
2023
£
£



Bank loans
1,977,961
2,006,668

1,977,961
2,006,668

Details of security provided:

Bank loans are secured by way of fixed charge dated 20/10/2017 over freehold property at 35 Consort Close Plymouth  and and floating charge over company's all other assets. Bank loans are also secured by debenture and cross guarantee dated 20/03/2018 between the company and Camelot Care Homes Limited.
Bank loans are repayable by installments and are subject to variable interest rate. 

Page 23

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

16.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



150 (2023 - 150) Ordinary shares of £1.00 each
150
150



17.


Reserves

Profit and loss account

This represents the accumulated retained earning of the Company which is a fully distributable reserve.


18.


Prior year adjustment

The company declared dividends of £200,000 in prior period ending 30 June 2023 which were ommited from the financial statements. Due to the error, current liabilities were understated and retained earnings were overstated by £200,000 in the finanical statements for the year ending 30 June 2023. Comparatives have been restated to reflect the correct position of current liabilities and retained earnings..


19.


Contingent liabilities

The company has provided cross guarantee to Barclays Bank PLC for the loan borrowed by Camelot Care Homes Limited. Amount outstanding at year end in the books of Camelot Care Homes was £2,026,203.57 (2023: £2,073,515).


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £20,350 (2023: £14,157). Contributions totaling £17,572 (2023: £11,349) were outstanding at year end.

Page 24

 
XCEL CARE HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

21.


Related party transactions

Details of the related party transactions during the year and balances at year end with companies under
common control are as below


1 July 2023
Debit
Credit
30 June 2024
£
£
£
£

Amount owed by companies under common control
6,984,493
-
(1,000)
6,983,493
Amount owed to companies under commoncontrol
(4,000,202)
800,000
-
(3,200,202)
Amounts owed to directors
-
100,000
(200,000)
(100,000)

These balances are interest free unsecured advances which are repayable on demand.


22.


Controlling party

The Company is controlled by Mr & Mrs Nadesan and Mrs R Thillainathan by virtue of their shareholding. 

 
Page 25