Company Registration No. 04340639 (England and Wales)
THE FRANKLYN GROUP LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
THE FRANKLYN GROUP LIMITED
COMPANY INFORMATION
Directors
Mr R A Fleming
Mr A J MacArthur
Ms J C McKenna
Company number
04340639
Registered office
The Gatehouse
9 Manor Road
Harrogate
North Yorkshire
HG2 0HP
Auditor
Morris Lane
31/33 Commercial Road
Poole
Dorset
BH14 0HU
THE FRANKLYN GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Income statement
8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 28
Non statutory information
Detailed trading, profit and loss account
THE FRANKLYN GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Fair Review of the Business
The directors are pleased with the performance in this financial year, particularly in light of the decision to close the smallest home – Kirkwood which produced an operating loss of £2,346 for the year. The remaining homes have shown an increased revenue and good profitability. There was a decrease in profit overall for the financial year due mainly to increased costs relating to wages.
Occupancy remains good with a good percentage of private clients and average fee levels have increased again this year. Stobars Hall in particular has showed a sustained improvement in occupancy and fee levels this year.
Additional head office staff have provided more resources for our continual improvement program and agency usage has been very low.
A valuation of the remaining two homes was undertaken in August 2024 and the increase in value has been reflected in these financial statements. The balance sheet continues to strengthen with net assets increasing from £5,874,054 at 30 June 2023 to £7,001,983 at 30 June 2024.
Principal Risks and Uncertainties
The high cost of living and interest rises continue to pose a significant challenge for the business over the coming year. The changes proposed by the new Government both in terms of Employment Law and taxation, coupled with a bigger push from Local Authorities to keep people in their own homes rather than funding care home placements pose further uncertainty for our sector.
The ongoing review of the CQC inspection process and rating system continues to put pressure on our business and the staff team, but we continue to work tirelessly to minimise the financial impact on the business.
Looking forward
We remain committed to recruitment, staff retention and continual professional development. We continue to strive toward reaching Outstanding in the eyes of the regulator and intend to add further technology, including eMAR, in the coming year to assist in this goal. We are considering options for developing the Kirkwood site to increase the value prior to sale and are considering acquisition options for further growth in the future.
Key performance indicators
Mr A J MacArthur
Director
20 March 2025
THE FRANKLYN GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of care home operation.
Results and dividends
The results for the year are set out on page 8.
Dividends on ordinary shares were paid amounting to £480,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr R A Fleming
Mr A J MacArthur
Ms J C McKenna
Financial instruments
Treasury operations and financial instruments
The company's activities expose it to a variety of financial risks. The Board reviews and agrees policies for managing these risks at regular intervals dependent on circumstances. The company's principal financial instruments include assets and liabilities such as trade receivables and trade payables arising directly from its operations. In accordance with company's treasury policy, derivative instruments are not entered into for speculative purposes.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All residents who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
The company is not exposed to commodity price risk.
Post reporting date events
Subsequent to the year end, the ultimate parent company, for which The Franklyn Group Limited has provided guarantees, refinanced its borrowings. As a result, the maximum amount of security provided has reduced to £3,040,000.
Auditor
The auditor, Morris Lane, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
THE FRANKLYN GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
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) including FRS 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 and then apply them consistently;
make judgements 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 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.
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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. It has done so in respect of the fair review of the business, and likely future developments.
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.
On behalf of the board
Mr A J MacArthur
Director
20 March 2025
THE FRANKLYN GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE FRANKLYN GROUP LIMITED
- 4 -
Opinion
We have audited the financial statements of The Franklyn Group Limited (the 'company') for the year ended 30 June 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 FRS 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.
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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
THE FRANKLYN GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE FRANKLYN GROUP LIMITED
- 5 -
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 and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, 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 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, 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.
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.
Identifying and assessing the risks of material misstatement due to irregularities, including fraud
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company through discussion with the directors and from our general commercial experience. The identified laws and regulations were communicated to the audit team in order that they remained alert to any non-compliance throughout the audit.
The company is subject to laws and regulations which have a direct effect on the financial statements and the disclosures contained therein. These have been identified as: the financial reporting framework under which the company operates - Financial Reporting Standard 102; Statutory Instrument 2008/409 – The Large and Medium sized Companies and Groups (Accounts and Directors’ Report) Regulations 2008; the Companies Act 2006 and taxation legislation including Pay As You Earn; corporation tax and pensions legislation.
In addition to the above, the company is subject to other operational laws and regulations where non-compliance may have a material effect on the financial statements. Non-compliance of such laws and regulations may result in litigation, the imposition of fines or the closure of the business which could have a material impact on amounts or disclosures in the financial statements. We have identified the following laws and regulations which are more likely to have significant effect as: compliance with the Care Quality Commission regulations; food hygiene laws; health and safety laws; Consumer Credit Act; Bribery Act; General Data Protection Regulation (GDPR) and employment law.
THE FRANKLYN GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE FRANKLYN GROUP LIMITED
- 6 -
In order to identify risks of material misstatement due to fraud, we assessed events and conditions where opportunities and incentives may exist within the company for fraud to occur. Our risk assessment procedures included enquiring of directors as to any instances of fraud, their procedures to identify fraud and by using analytical procedures to identify any unusual or unexpected relationships. We identified the greatest potential for fraud in the following areas: recognition of income; diversion of income; ghost employees and grant income. As required by auditing standards, we are also required to perform specific procedures to respond to the risk of management override.
The identified risks of material misstatement due to fraud were communicated to the audit team in order that they remained alert to any non-compliance throughout the audit.
Audit procedures designed to respond to the risks of material misstatement due to irregularities, including fraud
As a result of performing our risk assessments as detailed above, we planned and performed our audit so as to identify non-compliance with such laws and regulations, including fraud by undertaking the following:
Reviewing the disclosures contained within the financial statements and testing to supporting documentation in order to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements.
Enquiring of the directors concerning actual and potential non-compliance of laws and regulations.
Reviewing Care Quality Commission inspection reports in order to identify any potential non-compliance of laws and regulations.
Performing substantive testing with regard to employees to ensure that identification and employment contracts are on file, the Pay As You Earn system is operating correctly, pension deductions are made where appropriate and valid right to work documentation is available where required.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Revenue recognition was addressed by obtaining an understanding of relevant controls with regard to revenue recognition and undertaking substantive testing to ensure that revenue is recognised in line with the company’s accounting policy and in line with accounting standards.
In order to address the risks arising from the diversion of income, contracts with 3rd party service users and local authorities were agreed to the amounts charged and therefore reflected in the financial statements of the company.
The risk relating to management override of controls was addressed by testing the appropriateness of journal entries and other adjustments, assessing whether accounting estimates are indicative of potential bias and evaluating the business rationale of any significant transactions that are considered unusual or outside the normal course of business.
Due to the inherent limitations of an audit, there is an unavoidable risk that, despite properly planning and performing our audit in accordance with accounting standards, some material misstatements may not have been detected.
Auditing standards limit the audit procedures required to identify non-compliance with other operational laws and regulations to enquiry of directors and management and inspection of any correspondence. If a breach of operational regulations is not evident from relevant correspondence or disclosed to us, an audit is unlikely to detect that breach. In addition, the further removed non-compliance with laws and regulations is from the events and transactions included in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, the risk of not detecting material misstatement from due to fraud is higher than the risk of one not being detected through error as fraud may involve deliberate concealment through collusion, forgery, misrepresentations and intentional omissions.
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.
THE FRANKLYN GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE FRANKLYN GROUP LIMITED
- 7 -
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.
Michelle Pettifer (Senior Statutory Auditor)
For and on behalf of Morris Lane
24 March 2025
Chartered Accountants
Statutory Auditor
31/33 Commercial Road
Poole
Dorset
BH14 0HU
THE FRANKLYN GROUP LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
Continuing
Discontinued
30 June
Continuing
Discontinued
30 June
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Revenue
3
3,049,039
551,310
3,600,349
2,833,900
789,438
3,623,338
Administrative expenses
(2,331,116)
(566,879)
(2,897,995)
(1,941,520)
(675,198)
(2,616,718)
Other operating income
38,389
13,223
51,612
30,640
5,112
35,752
Operating profit
4
756,312
(2,346)
753,966
923,020
119,352
1,042,372
Investment income
7
34,781
6,364
41,145
2,583
1,292
3,875
Finance costs
8
(6,520)
(6,520)
(3,634)
(3,634)
Profit before taxation
784,573
4,018
788,591
921,969
120,644
1,042,613
Tax on profit
9
(110,925)
(678)
(111,603)
(145,755)
(14,671)
(160,426)
Profit for the financial year
673,648
3,340
676,988
776,214
105,973
882,187
THE FRANKLYN GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
£
£
Profit for the year
676,988
882,187
Other comprehensive income
Revaluation of property, plant and equipment
1,213,700
(340,364)
Tax relating to other comprehensive income
(282,759)
83,600
Other comprehensive income for the year
930,941
(256,764)
Total comprehensive income for the year
1,607,929
625,423
THE FRANKLYN GROUP LIMITED
STATEMENT OF FINANCIAL POSITION
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
6,178,362
6,042,717
Current assets
Inventories
13
908,905
4,200
Trade and other receivables
14
246,454
620,154
Cash and cash equivalents
980,325
816,342
2,135,684
1,440,696
Current liabilities
15
(430,801)
(984,716)
Net current assets
1,704,883
455,980
Total assets less current liabilities
7,883,245
6,498,697
Non-current liabilities
16
(41,135)
(45,435)
Provisions for liabilities
Deferred tax liability
18
840,127
579,208
(840,127)
(579,208)
Net assets
7,001,983
5,874,054
Equity
Called up share capital
21
201,000
201,000
Revaluation reserve
22
2,339,675
1,491,395
Retained earnings
22
4,461,308
4,181,659
Total equity
7,001,983
5,874,054
The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
Mr A J MacArthur
Director
Company Registration No. 04340639
THE FRANKLYN GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 July 2022
201,000
1,933,955
3,413,676
5,548,631
Year ended 30 June 2023:
Profit for the year
-
-
882,187
882,187
Other comprehensive income:
Revaluation of property, plant and equipment
-
(340,364)
-
(340,364)
Tax relating to other comprehensive income
-
83,600
83,600
Total comprehensive income for the year
(256,764)
882,187
625,423
Dividends
11
-
-
(300,000)
(300,000)
Transfers
-
(185,796)
185,796
-
Balance at 30 June 2023
201,000
1,491,395
4,181,659
5,874,054
Year ended 30 June 2024:
Profit for the year
-
-
676,988
676,988
Other comprehensive income:
Revaluation of property, plant and equipment
-
1,213,700
-
1,213,700
Tax relating to other comprehensive income
-
(282,759)
(282,759)
Total comprehensive income for the year
930,941
676,988
1,607,929
Dividends
11
-
-
(480,000)
(480,000)
Transfers
-
(82,661)
82,661
-
Balance at 30 June 2024
201,000
2,339,675
4,461,308
7,001,983
THE FRANKLYN GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
919,812
639,133
Interest paid
(6,520)
(3,634)
Income taxes paid
(257,778)
(152,890)
Net cash inflow from operating activities
655,514
482,609
Investing activities
Purchase of property, plant and equipment
(29,627)
(102,324)
Proceeds on disposal of property, plant and equipment
13,141
25,360
Interest received
41,145
3,875
Net cash generated from (used in) investing activities
24,659
(73,089)
Financing activities
Payment of finance leases obligations
(36,190)
(56,046)
Dividends paid
(480,000)
(300,000)
Net cash used in financing activities
(516,190)
(356,046)
Net increase in cash and cash equivalents
163,983
53,474
Cash and cash equivalents at beginning of year
816,342
762,868
Cash and cash equivalents at end of year
980,325
816,342
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information
The Franklyn Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Gatehouse, 9 Manor Road, Harrogate, North Yorkshire, HG2 0HP.
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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Going concern
The directors have adopted the going concern basis in preparing these accounts after assessing the principal risks applicable to the company. These include rising inflation, rising interest rates, staff shortages as a result of Brexit, the increase in the National Living Wage for employees over the age of 21, the cost of living crisis and higher insurance premiums, together with the group's compliance with loan covenants. The directors consider the company to be able to meet its obligations as they fall due for a period of at least 12 months from the date of signing these financial statements, and to be well placed to manage its financing and business risks satisfactorily. Overall, the directors do not consider there to be a cause for material uncertainty regarding the company’s going concern status as at the date of signing these financial statements.
1.4
Revenue
Revenue 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Revenue from the supply of care services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where payments are received from customers in advance of services provided the amounts are recorded as deferred income and included as part of payables due within one year.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliability. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
1.5
Property, plant and equipment
Property, plant and equipment 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 land and buildings
2% straight line
Fixtures and fittings
15% straight line
Computers
15% straight line
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.
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Cost is calculated using the weighted average method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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 trade and other receivables 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.
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
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.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payables 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 payables 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.
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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.
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax 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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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 non-current 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
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
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.
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Provision of residential care
3,600,349
3,623,338
2024
2023
£
£
Other significant revenue
Interest income
41,145
3,875
Grants received
40,148
28,058
Rental Income
11,464
7,694
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging (crediting):
£
£
Government grants
(40,148)
(28,058)
Fees payable to the company's auditor for the audit of the company's financial statements
21,876
12,312
Depreciation of owned property, plant and equipment
173,354
103,737
Depreciation of property, plant and equipment held under finance leases
32,998
2,287
Loss on disposal of property, plant and equipment
28,187
2,345
Operating lease charges
34,130
40,756
Government grants received in the year relate to deferred grant income in connection with various Covid-19 support schemes released to the profit and loss account in accordance with accounting standards.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
2
2
Care home staff
81
87
Administration
9
5
Total
92
94
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,662,595
1,474,027
Social security costs
123,922
103,193
Pension costs
26,636
25,010
1,813,153
1,602,230
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
17,766
15,338
Company pension contributions to defined contribution schemes
269
203
18,035
15,541
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Directors' remuneration
(Continued)
- 20 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023: 2).
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
35,956
3,875
Other interest income
5,189
Total income
41,145
3,875
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
35,956
3,875
8
Finance costs
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
6,781
2,034
Other interest
(261)
1,600
6,520
3,634
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
133,443
126,786
Deferred tax
Origination and reversal of timing differences
(21,840)
33,640
Total tax charge
111,603
160,426
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 21 -
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
788,591
1,042,613
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
197,148
213,694
Tax effect of expenses that are not deductible in determining taxable profit
(318)
(596)
Tax effect of income not taxable in determining taxable profit
(8,917)
(5,648)
Group relief
(104,644)
(56,871)
Capital allowances in excess of depreciation
43,127
(24,274)
Deferred tax on accelerated capital allowances
(21,840)
33,640
Loss on disposal of fixed assets
7,047
481
Taxation charge for the year
111,603
160,426
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
282,759
(83,600)
10
Discontinued operations
In March 2024, the smallest of the homes closed and ceased to trade. The directors took the decision as they considered this to be an underperforming home and, by closing the business, this has allowed the directors to focus on the other homes within the group and other business opportunities. The directors are considering options for developing the site and its carrying value of £900,000 has been moved from Property, Plant and Equipment to Inventories in the financial statements.
11
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary
Final paid
2.39
1.49
480,000
300,000
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
12
Property, plant and equipment
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 July 2023
5,579,648
884,247
3,035
149,976
6,616,906
Additions
20,627
48,998
69,625
Disposals
(144,701)
(487)
(11,890)
(157,078)
Revaluation
1,131,039
1,131,039
Transfers
(900,000)
(900,000)
At 30 June 2024
5,810,687
760,173
2,548
187,084
6,760,492
Depreciation and impairment
At 1 July 2023
539,876
2,053
32,260
574,189
Depreciation charged in the year
82,661
88,064
234
35,393
206,352
Eliminated in respect of disposals
(106,708)
(213)
(8,829)
(115,750)
Revaluation
(82,661)
(82,661)
At 30 June 2024
521,232
2,074
58,824
582,130
Carrying amount
At 30 June 2024
5,810,687
238,941
474
128,260
6,178,362
At 30 June 2023
5,579,648
344,371
982
117,716
6,042,717
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
123,493
82,335
Property, plant and equipment with a carrying amount of £6,178,362 (2023: £6,042,717) have been pledged to secure borrowings of the company. Further information is provided in note 23.
Land and buildings with a carrying amount of £5,810,687 were revalued in August 2024 by Colliers International Property Consultants, independent valuers not connected with the company, on the basis of market value. The valuation was based on recent marker transactions on arm's length terms for similar properties. The directors consider that the market value of land and buildings as at 30 June 2024 to not be materially different from the valuation obtained in August 2024.
Land and buildings with a carrying amount of £5,579,648 were valued in June 2023 based on the expected market value of the business as determined by the directors of the company. No formal valuation was prepared in regards to this valuation at that date, but the directors have concluded that they have sufficient and reliable market data to substantiate this value.
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Property, plant and equipment
(Continued)
- 23 -
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold land and buildings
2024
2023
£
£
Cost
2,827,939
3,591,123
Accumulated depreciation
(226,718)
(239,702)
Carrying value
2,601,221
3,351,421
13
Inventories
2024
2023
£
£
Work in progress
905,805
-
Patient requisites
3,100
4,200
908,905
4,200
The carrying amount of inventories includes £908,905 (2023: £4,200) pledged as security for liabilities. Further information is provided in note 23.
14
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
33,387
42,517
Amounts owed by group undertakings
134,813
506,774
Other receivables
5,142
42,529
Prepayments and accrued income
73,112
28,334
246,454
620,154
The carrying amount of trade and other receivables includes £246,454 (2023: £620,154) pledged as security for liabilities. Further information is provided in note 23.
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
15
Current liabilities
2024
2023
Notes
£
£
Obligations under finance leases
17
41,827
33,719
Trade payables
99,737
55,028
Amounts owed to group undertakings
410,638
Corporation tax
28,950
153,285
Other taxation and social security
25,300
34,590
Other payables
120,794
146,618
Accruals and deferred income
114,193
150,838
430,801
984,716
16
Non-current liabilities
2024
2023
Notes
£
£
Obligations under finance leases
17
41,135
45,435
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
41,827
33,719
In two to five years
41,135
45,435
82,962
79,154
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2.6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
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
60,236
82,078
Revaluations
779,891
497,130
840,127
579,208
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
18
Deferred taxation
(Continued)
- 25 -
2024
Movements in the year:
£
Liability at 1 July 2023
579,208
Credit to profit or loss
(21,840)
Charge to other comprehensive income
282,759
Liability at 30 June 2024
840,127
Of the deferred tax liability set out above, an amount of £16,214 is expected to reverse within 12 months and relates to accelerated capital allowances.
Of the deferred tax liability set out above, an amount of £11,298 is expected to reverse within 12 months and relates to revaluation of freehold property.
19
Deferred grants
Government grants totalling £35,669 (2023: £28,058) were released in the year in connection with coronavirus funding. As at 30 June 2024 an amount of £70,587 (2023: £106,256) remains in other creditors to be released in line with the accounting policy for capital grants.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
26,636
25,010
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions outstanding at the end of the year and included within other creditors amounted to £4,687 (2023: £6,002).
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
201,000
201,000
201,000
201,000
Ordinary shares carry voting rights but have no right to fixed income or fixed repayment of capital.
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
22
Reserves
Revaluation reserve
The revaluation reserve represents the cumulative effect of revaluations of freehold land and buildings which are revalued to fair value. At the end of each reporting period a transfer is made to retained earnings to transfer the excess depreciation that has been charged in the income statement which relates to the revalued portion of the assets. In respect of revaluation gains, deferred tax is recognised and is initially debited to the revaluation reserve. The amount of deferred tax recognised is adjusted on an annual basis for any movement in amounts debited or credited to the revaluation reserve in the year. Current year corporation tax is not required to be recognised in respect of any amounts debited or credited to the revaluation reserve.
23
Financial commitments, guarantees and contingent liabilities
At 30 June 2024, the company had secured borrowings of its ultimate parent company, Franklyn Care Limited, by way of a first legal charge over the property and other assets and an intercompany guarantee up to an amount of £3,806,524 (2023: £4,009,700). At 30 June 2024, the maximum exposure of the company in respect of amounts drawn by the parent company was £2,544,021 (2023: £2,609,274).
24
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
31,625
29,178
Between two and five years
70,173
91,969
101,798
121,147
25
Events after the reporting date
Subsequent to the year end, the ultimate parent company, for which The Franklyn Group Limited has provided guarantees, refinanced its borrowings. As a result, the maximum amount of security provided has reduced to £3,040,000.
26
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
22,797
20,079
Transactions with related parties
During the year the company entered into the following transactions with related parties:
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
26
Related party transactions
(Continued)
- 27 -
Services provided
2024
2023
£
£
Other related parties
-
7,606
-
7,606
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other related parties
-
410,638
-
410,638
Loans to and from related parties are unsecured, interest free and repayable on demand.
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
134,813
506,774
134,813
506,774
Loans to and from related parties are unsecured, interest free and repayable on demand.
27
Ultimate controlling party
The ultimate parent company is Franklyn Care Ltd, whose registered office is The Gatehouse, 9 Manor Road, Harrogate, England, HG2 0HP. Copies of the group accounts are available to the public and can be obtained from the registered office.
The ultimate controlling party is Mr AJ MacArthur and Ms JC McKenna by virtue of their 85% shareholding in the ultimate parent company, Franklyn Care Ltd.
The smallest and largest group into which the company is consolidated is Franklyn Care Limited.
THE FRANKLYN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
28
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
676,988
882,187
Adjustments for:
Taxation charged
111,603
160,426
Finance costs
6,520
3,634
Investment income
(41,145)
(3,875)
Loss on disposal of property, plant and equipment
28,187
2,345
Depreciation and impairment of property, plant and equipment
206,352
106,024
Movements in working capital:
Increase in inventories
(4,705)
(370)
Decrease (increase) in trade and other receivables
373,700
(556,527)
(Decrease) increase in trade and other payables
(437,688)
45,289
Cash generated from operations
919,812
639,133
29
Analysis of changes in net funds
1 July 2023
Cash flows
New finance leases
30 June 2024
£
£
£
£
Cash at bank and in hand
816,342
163,983
-
980,325
Obligations under finance leases
(79,154)
36,190
(39,998)
(82,962)
737,188
200,173
(39,998)
897,363
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