Company registration number 05207492 (England and Wales)
English Care Limited
Annual report and financial statements
For the year ended 31 March 2024
English Care Limited
Company information
Directors
Mrs J H English
Mr D M English
Mr E D English
Miss V J English
Secretary
Mrs J H English
Company number
05207492
Registered office
Bowbrook House
Bowbrook
Shrewsbury
Shropshire
SY3 5BS
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
English Care Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
English Care Limited
Strategic report
For the year ended 31 March 2024
- 1 -

The Board of Directors of English Care Ltd presents the strategic report for the financial year ended 31 March 2024. This report outlines our business model, strategy, performance, risks, and future outlook, prepared in alignment with the FRC’s Guidance on Strategic Reports and the Companies Act 2006.

English Care Ltd operates a 43-bed nursing home with 26 supported living apartments and a 30-bed residential home offering dementia care. Both homes are registered with the Care Quality Commission (CQC) and are proudly rated as “Good.” Our mission is to deliver high-quality, person-centered care while supporting the well-being of our residents, staff, and the local community.

Business Model

Our services focus on three interconnected areas:

  1. Residential and Dementia Care: Providing compassionate and professional care tailored to the needs of our residents.

  2. Supported Living: Enabling residents in supported apartments to live as independently as possible with access to care as needed.

  3. Community Engagement: Strengthening connections with the local community through partnerships and activities that enrich the lives of our residents.

  4. Promoting a positive experienced team: English Care has a great team many of whom have been employed for 15 years or more. The company has also increased its multi cultural base with the employment of staff from abroad to meet the recruitment crisis in the care sector.

 

Our homes consistently maintain an average occupancy rate of 85%, a testament to the quality of care and reputation of our services.

Strategic Objectives and Sustainability

  1. Profitability: We aim to achieve a 39% gross profit margin and a 20% net profit margin before tax, ensuring financial resilience and sustainability.

  2. Carbon Footprint Reduction: A sustainability review is underway to identify and implement measures to reduce our environmental impact. This includes evaluating the installation of solar panels and other energy-saving initiatives.

  3. Community Support: Prioritizing partnerships with local businesses and fostering resident interactions with local nurseries, schools, and churches to create a vibrant community environment.

Performance Overview

Principal Risks and Challenges
  1. Rising Payroll Costs: Recent budget announcements, including increases in the national minimum wage effective April 2025, will result in a 12% increase in payroll costs. We are actively exploring cost-saving measures to mitigate the impact.

  2. Complex Care Needs: A sector-wide trend of supporting individuals at home longer has resulted in higher complexity among residents admitted to care homes. Reduced council funding for these needs poses a profitability risk, particularly for council-contracted placements.

  3. Regulatory and Policy Changes: Maintaining compliance with evolving regulations while adapting to the financial challenges of reduced government support for care services.

English Care Limited
Strategic report (continued)
For the year ended 31 March 2024
- 2 -
Future Outlook

Our immediate focus is on consolidating the operations of the nursing home to complete its final phase of development, thereby increasing occupancy and sustaining profitability. Long-term plans include expanding sustainable practices, leveraging technology for care delivery, and continuing to engage with the community.

Challenges posed by increasing costs and funding constraints will require careful cost management and exploration of private care contracts to maintain financial stability.

The business’s key performance indicators communicate the financial performance of the home and the strength of the company:-

 

 

Conclusion

English Care Ltd remains committed to providing high-quality care and fostering an inclusive, sustainable environment for our residents and staff. The directors express gratitude to all stakeholders for their contributions and looks forward to another year of growth and positive impact.

On behalf of the board

Mrs J H English
Director
12 March 2025
English Care Limited
Directors' report
For the year ended 31 March 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of residential and nursing care.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs J H English
Mr D M English
Mr E D English
Miss V J English
Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

English Care Limited
Directors' report (continued)
For the year ended 31 March 2024
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs J H English
Director
12 March 2025
English Care Limited
Independent auditor's report
To the members of English Care Limited
- 5 -
Opinion

We have audited the financial statements of English Care Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

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.

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.

Other information

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

 

We have nothing to report in this regard.

English Care Limited
Independent auditor's report (continued)
To the members of English Care Limited
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities,

including fraud and non-compliance with laws and regulations, was as follows:

English Care Limited
Independent auditor's report (continued)
To the members of English Care Limited
- 7 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

In the previous accounting period the directors of the company took advantage of audit exemption under S.477 of the Companies Act 2006. Therefore, the prior period financial statements were not audited and the comparative information presented is unaudited.

English Care Limited
Independent auditor's report (continued)
To the members of English Care Limited
- 8 -

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.

Stacey Parr FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
19 March 2025
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
English Care Limited
Statement of comprehensive income
For the year ended 31 March 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
4,556,880
4,344,259
Cost of sales
(2,673,147)
(2,470,929)
Gross profit
1,883,733
1,873,330
Administrative expenses
(897,507)
(727,444)
Operating profit
4
986,226
1,145,886
Interest receivable and similar income
42,143
8,993
Interest payable and similar expenses
7
(84,482)
(55,892)
Profit before taxation
943,887
1,098,987
Tax on profit
8
(257,972)
(209,511)
Profit for the financial year
685,915
889,476
Other comprehensive income
Tax relating to other comprehensive income
(106,047)
-
0
Total comprehensive income for the year
579,868
889,476

 

English Care Limited
Statement of financial position
As at 31 March 2024
31 March 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,012,936
5,866,068
Current assets
Stocks
12
1,500
1,500
Debtors
13
286,335
191,463
Cash at bank and in hand
1,628,490
1,296,875
1,916,325
1,489,838
Creditors: amounts falling due within one year
14
(2,235,305)
(2,231,663)
Net current liabilities
(318,980)
(741,825)
Total assets less current liabilities
5,693,956
5,124,243
Creditors: amounts falling due after more than one year
15
(873,138)
(989,650)
Provisions for liabilities
Deferred tax liability
17
493,063
386,706
(493,063)
(386,706)
Net assets
4,327,755
3,747,887
Capital and reserves
Called up share capital
19
2
2
Revaluation reserve
20
1,325,747
1,431,794
Profit and loss reserves
21
3,002,006
2,316,091
Total equity
4,327,755
3,747,887

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 12 March 2025 and are signed on its behalf by:
Mrs J H English
Director
Company registration number 05207492 (England and Wales)
English Care Limited
Statement of changes in equity
For the year ended 31 March 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
2
267,647
1,358,423
1,626,072
Prior period adjustments
-
1,164,147
468,192
1,632,339
As restated
2
1,431,794
1,826,615
3,258,411
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
889,476
889,476
Dividends
9
-
-
(400,000)
(400,000)
Balance at 31 March 2023
2
1,431,794
2,316,091
3,747,887
Year ended 31 March 2024:
Profit
-
-
685,915
685,915
Other comprehensive income:
Tax relating to other comprehensive income
-
(106,047)
-
0
(106,047)
Total comprehensive income
-
(106,047)
685,915
579,868
Balance at 31 March 2024
2
1,325,747
3,002,006
4,327,755
English Care Limited
Notes to the financial statements
For the year ended 31 March 2024
- 12 -
1
Accounting policies
Company information

English Care Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bowbrook House, Bowbrook, Shrewsbury, Shropshire, SY3 5BS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of English (Group) Limited. These consolidated financial statements are available from its registered office, Bowbrook House, Bowbrook, Shrewsbury, Shropshire, SY3 5BS.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
25% recuding balance
Motor vehicles
25% reducing balance

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

1.7
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and at bank.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 deducting all of its liabilities.

English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other group entities where the relationship is one of being wholly owned.

English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 17 -
2
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 amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

In the directors' opinion there are no critical judgements and estimates which impact the financial statements.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of Freehold land and buildings

Freehold land and buildings are measured using the revaluation model and as such this requires significant estimation. The valuation of freehold land and buildings has been based on a formal valuation completed by property experts on 27th December 2024. The directors have considered changes in the valuation of freehold land and buildings since the year end, they do not consider there to be any material changes.

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
42,143
8,993
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
17,000
-
0
Depreciation of owned tangible fixed assets
143,132
143,369
Operating lease charges
70,000
70,000
English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 18 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Cost of sales
83
92
Admin
4
3
Directors
2
2
Total
89
97

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,035,500
1,677,025
Social security costs
168,208
151,852
Pension costs
277,900
194,291
2,481,608
2,023,168
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
21,796
22,724
Company pension contributions to defined contribution schemes
240,000
160,000
261,796
182,724
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
84,482
55,892
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
262,829
209,511
Adjustments in respect of prior periods
(5,167)
-
0
Total current tax
257,662
209,511
English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
8
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
310
-
0
Total tax charge
257,972
209,511

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
943,887
1,098,987
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
235,972
208,808
Effect of change in corporation tax rate
23,767
-
0
Group relief
(4,406)
-
0
Permanent capital allowances in excess of depreciation
-
0
5,506
Amortisation on assets not qualifying for tax allowances
-
0
1,769
Under/(over) provided in prior years
(5,167)
-
0
Deferred tax adjustments in respect of prior years
7,806
(6,572)
Taxation charge for the year
257,972
209,511

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
106,047
-
9
Dividends
2024
2023
£
£
Final paid
-
0
400,000
English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 20 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
233,018
Amortisation and impairment
At 1 April 2023 and 31 March 2024
233,018
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 21 -
11
Tangible fixed assets
Freehold buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2023
6,296,933
-
0
161,043
45,817
2,152
118,048
6,623,993
Additions
-
0
290,000
-
0
-
0
-
0
-
0
290,000
At 31 March 2024
6,296,933
290,000
161,043
45,817
2,152
118,048
6,913,993
Depreciation and impairment
At 1 April 2023
533,235
-
0
153,979
39,063
2,136
29,512
757,925
Depreciation charged in the year
117,539
-
0
1,766
1,689
4
22,134
143,132
At 31 March 2024
650,774
-
0
155,745
40,752
2,140
51,646
901,057
Carrying amount
At 31 March 2024
5,646,159
290,000
5,298
5,065
12
66,402
6,012,936
At 31 March 2023
5,763,698
-
0
7,064
6,754
16
88,536
5,866,068
English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
11
Tangible fixed assets
(Continued)
- 22 -

The freehold property has been valued on 27th December 2024. The valuation was carried out by Jon Hodgkins MRICS & Andy Topham MRICS of Christie & Co, an external company regulated by RICS.

 

The basis for the valuation has paid principal regard to the value of the bricks and motor.

 

The bases of the value are as defined by The Royal Institution of Chartered Surveyors (RICS) Valuation.

 

Calculations have been performed to work back to the valuation of the property at the year end due to the valuation of the property being post year end.

12
Stocks
2024
2023
£
£
Consumables
1,500
1,500
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
189,308
191,463
Amounts owed by group undertakings
73,069
-
0
Other debtors
2,240
-
0
Prepayments and accrued income
21,718
-
0
286,335
191,463
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
116,512
116,512
Trade creditors
60,055
43,569
Amounts owed to group undertakings
1,595,000
1,604,268
Corporation tax
262,829
209,511
Other taxation and social security
41,072
31,877
Other creditors
124,811
216,402
Accruals and deferred income
35,026
9,524
2,235,305
2,231,663
English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 23 -
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
873,138
989,650
Amounts included above which fall due after five years are as follows:
Payable by instalments
532,092
598,604
16
Loans and overdrafts
2024
2023
£
£
Bank loans
989,650
1,106,162
Payable within one year
116,512
116,512
Payable after one year
873,138
989,650

The long-term loans are secured by fixed and floating charges over the assets of the company.

 

Long term bank debts are in the form of a secured loans which are quarterly repayments (capital and interest) with Santander Bank. The first loan is set to mature in Jan 2027 at a fixed interest rate of 3.15% plus the base rate per annum and the second loan is set to mature in June 2027 at a fixed interest rate of 3.5% plus base rate per annum.

 

 

 

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
850
-
Revaluations
492,753
386,706
Retirement benefit obligations
(540)
-
493,063
386,706
English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
17
Deferred taxation
(Continued)
- 24 -
2024
Movements in the year:
£
Liability at 1 April 2023
386,706
Charge to profit or loss
106,357
Liability at 31 March 2024
493,063
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
277,900
194,291

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

At the period end the creditor was £5,076 (2023 - £1,374).

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2

Each ordinary share has full voting rights, full dividend rights and the right to participate in distributions on winding up.

20
Revaluation reserve

Revaluation reserve is made up of revaluation uplifts on freehold property less any transfers of excess depreciation on revaluations from the profit and loss account and any movements in deferred taxation on the revaluation of freehold property.

21
Profit and loss reserves

Profit and loss reserves are made up of accumulated profits less accumulated losses and distributions to shareholders.

22
Parent company

The parent company is English (Group) Limited which owns 100% of the ordinary share capital. English (Group) Limited is incorporated in England. Copies of the group accounts of English (Group) Limited are available from English (Group) Limited, Bowbrook House, Bowbrook, Shrewsbury, Shropshire, SY3 5BS.

English Care Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 25 -
23
Ultimate controlling party

The ultimate controlling party is Mr D English & Mrs J English by virtue of their majority shareholding in English (Group) Limited.

24
Prior period adjustment
Reconciliation of changes in equity
1 April
31 March
2022
2023
£
£
Adjustments to prior year
Revaluation of freehold property
1,500,000
1,500,000
Reversal of depreciation on revalued property
542,463
567,740
Deferred tax due on revaluation
(335,853)
(335,853)
Full amortisation of goodwill
(74,271)
(64,961)
Total adjustments
1,632,339
1,666,926
Equity as previously reported
1,626,072
2,080,961
Equity as adjusted
3,258,411
3,747,887
Analysis of the effect upon equity
Revaluation reserve
-
1,164,147
Profit and loss reserves
-
502,779
-
1,666,926
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Reversal of depreciation on revalued property
25,277
Full amortisation of goodwill
9,310
Total adjustments
34,587
Profit as previously reported
854,889
Profit as adjusted
889,476
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