REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2024 |
for |
Sun Healthcare Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2024 |
for |
Sun Healthcare Limited |
Sun Healthcare Limited (Registered number: 04220821) |
Contents of the Financial Statements |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 4 |
Report of the Directors | 5 | to | 7 |
Independent Auditors' Report | 8 | to | 10 |
Statement of Comprehensive Income | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 13 |
Statement of Cash Flows | 14 |
Notes to the Statement of Cash Flows | 15 |
Notes to the Financial Statements | 16 | to | 25 |
Sun Healthcare Limited |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditor |
Marland House |
13 Huddersfield Road |
Barnsley |
South Yorkshire |
S70 2LW |
Sun Healthcare Limited (Registered number: 04220821) |
Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
This year's trading was completely in line with the directors' expectations. |
We continue to assess where tighter cost control measures can be implemented, always without compromising the high-quality service our client's demand. We still need to be vigilant in respect of the COVID 19 restrictions, which are an historical issue. Our maintenance program is still ongoing, but we are finding, like many industries, that the costs of repairs to our buildings has increased exponentially over this reporting period. |
The increase in the national living wage has as always had an impact on the business and as a company we have once again maintained the pay structure and differentials for all our employees throughout this reporting period. |
The Company regularly reviews KPI's that provide an overview of the company's overall performance across its areas of service delivery. Any concerns are discussed with the service managers and all required action plans are implemented. The service managers we employ are an integral part of the success of the business and all do have a broad depth of knowledge of the performance of the company. We as a management team meet on a regular basis that ensures good governance and the sharing of expertise amongst all. The main financial and operational KPIs were as follows: |
2024 | 2023 |
£ | £ |
Turnover | 16,438,364 | 14,048,087 |
Operating profit | 1,624,191 | 1,277,881 |
As shown above, turnover increased by £2,390k (17%) to £16,438k, reflecting increases in occupancy levels at some homes and certain increased price structures. Increasing cost pressures, including the ongoing impact of further increases in the National Living Wage, have been well managed and we have seen the gross margin increase from 30.0% to 30.8% resulting in an increase in gross profit of £842k (20%) from £4,223k to £5,065k. The increase in gross profit, together with tight controls on costs, has resulted in an increase in operating profit of £346k (27%) to £1,624k. |
Net profit before tax has reduced by £427k (30%) from £1,422k to £995k, however interest receivable and interest payable are significantly impacted by movements on derivatives. Notes 7 and 8 to these financial statements show a net £720k swing in movements on derivatives from a £610k credit in 2023 to a £110k charge this year. After a tax charge of £382k (2023: £232k), profit for the financial year was £614k (2023: £1,190k). |
The Company continues to comply with all banking facilities and covenants, its bankers are fully supportive and so the directors therefore expect adequate facilities to remain in place for the foreseeable future. Accordingly, after reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate financial resources to continue in operational existence for the foreseeable future. For that reason, the directors continue to adopt the going concern basis in preparing the financial statements. |
In our continuous endeavour to enhance organisational stability and workforce effectiveness, we have implemented robust HR management and employment law practices that have significantly minimised potential risks of litigation. By staying abreast of legal requirements and ensuring compliance with employment laws, we have mitigated risks associated with employee relations issues, fostering a positive work environment. |
Our proactive approach includes regular training sessions for HR personnel and management on the latest legal developments, promoting a culture of understanding and adherence to employment regulations. This commitment has not only reduced disputes but also enhanced our reputation as an employer of choice. |
Sun Healthcare Limited (Registered number: 04220821) |
Strategic Report |
for the Year Ended 30 June 2024 |
Recognising the critical importance of health and safety in the workplace, we are excited to announce the expansion of our senior management team's formal training. This initiative involves enrolling key leadership members in an industry-standard diploma qualification in Health and Safety. By equipping our senior management with comprehensive knowledge and skills, we aim to elevate our commitment to workplace safety and compliance. |
This training will enhance our capacity to identify potential hazards, implement effective safety protocols, and foster a culture of safety within our organisation. Moreover, it positions us to proactively address health and safety concerns, thereby reducing the likelihood of incidents and associated liabilities. |
In conclusion, our strategic focus on effective HR management and commitment to ongoing training in health and safety exemplifies our dedication to creating a safe, compliant, and thriving workplace for all. |
At Sun Healthcare Ltd, we recognise the importance of addressing climate change and environmental degradation for the well-being of our planet and future generations. We fully comply with all regulations imposed on us. |
We are committed to minimizing the environmental impact of our operations, and to actively seeking sustainable solutions. We strive to reduce our carbon footprint by implementing energy-efficient practices, promoting renewable energy sources, and optimizing resource usage. |
Additionally, we are dedicated to responsible waste management, recycling initiatives, and supporting local environmental conservation efforts. Through these actions, we aim to contribute to a cleaner, healthier, and more sustainable future. |
Examples of our commitment to climate change and the environmental impact our operation has we have implemented the following changes: |
- | Our establishments have or are in the process of changing our lighting to energy efficient lamps; |
- | In two locations we have installed solar heat collectors to reduce our reliance on gas boilers for heating our hot water; |
- | At our Tapton Grove Coach House site we have installed ground heat pumps to facilitate heating systems rather than rely on oil or gas boilers; and |
- | As an organisation when older gas boilers come to the end of their life we are committed to changing over to alternative heating (where possible) to enable the company to lower its carbon footprint. |
This statement of intent is regularly reviewed and the companies infrastructure updated when changes become effective. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the business are as follows: |
Financing |
As described in the Review of Business above, the Company continues to comply with all banking facilities and covenants, its bankers are fully supportive and so the directors therefore expect adequate facilities to remain in place for the foreseeable future. |
Quality of Service |
Failure to provide a high quality of care for the people we care for. |
Regulatory Breach |
Loss or suspension of our registrations due to a statutory, regulatory of contractual breach. |
Service Innovation |
Insufficient innovation in our business model, service or care model reducing our competitiveness in the market place. |
Incident Response |
Inability to effectively react and respond to an incident or systematic incidents in a timely and controlled manner. |
Sun Healthcare Limited (Registered number: 04220821) |
Strategic Report |
for the Year Ended 30 June 2024 |
Relationships |
Failure to create and maintain strong relationships with commissioners to ensure referrals at appropriate prices or price increase to cover cost increases. |
Systems and Processes |
Immaturity of financial and operational systems and processes which may prevent effective business operations and sustainable growth in the future. |
Recruitment and Retention |
Failure to attract and maintain an effective, high quality resource and talent base. |
Strategy and Performance |
Failure to develop, execute and operate a strategic plan that ensures continued viable growth. |
Government Action |
Failure to anticipate or respond to changes in government policy or regulation. |
ON BEHALF OF THE BOARD: |
Sun Healthcare Limited (Registered number: 04220821) |
Report of the Directors |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the Company for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the Company in the year under review was that of the operation of Care Homes and provision of Domiciliary Care. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 June 2024 will be £210,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The directors keep under review the quality of communication and business relationships with principal suppliers ensuring that they are able to react quickly to a changing market place and increasing demands. The directors also ensure that as consumer demand changes and the business develops and evolves, regular updates are available for care fee providers and service users via the website, e-mail and other methods of communication. |
STREAMLINED ENERGY AND CARBON REPORTING |
This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 July 2023 to 30 June 2024, pursuant to the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government's Streamlined Energy and Carbon Reporting (SECR) policy. |
2024 |
Energy consumption | kWh |
Gas | 1,620,299 |
Electricity | 594,542 |
Transport | 171,816 |
Aggregate of energy consumption in the year | 2,386,657 |
2024 |
Emissions of CO2 equivalent | tCO2e |
Gas | 541 |
Electricity | 208 |
Transport | 41 |
790 |
Intensity ratio |
tCO2e / £1m Turnover | 48.062 |
Quantification and reporting methodology |
This report has been compiled in line with the March 2019 BEIS 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance', and the EMA methodology for SECR Reporting. All measured emissions from activities which the organisation has financial control over are included as required under The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, unless otherwise stated in the exclusions statement. |
Sun Healthcare Limited (Registered number: 04220821) |
Report of the Directors |
for the Year Ended 30 June 2024 |
Intensity measurement |
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m, the recommended ratio for the sector. |
Measures taken to improve energy efficiency: |
- | Our establishments have or are in the process of changing our lighting to energy efficient lamps; |
- | In two locations we have installed solar heat collectors to reduce our reliance on gas boilers for heating our hot water; |
- | At our Tapton Grove Coach House site we have installed ground heat pumps to facilitate heating systems rather than rely on oil or gas boilers; and |
- | As an organisation when older gas boilers come to the end of their life we are committed to changing over to alternative heating (where possible) to enable the company to lower its carbon footprint. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with section 414C(11) of the Companies Act 2016 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and the principal risks and uncertainties. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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. |
Disabled employees |
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employee wherever appropriate. |
Employee involvement |
It is company policy that all personnel have equality of opportunity upon recruitment and during service regardless of gender, race, religion or disability and also to select and train people dependent upon their ability and the requirements of the group for particular skills. Employees are informed of relevant company developments on a regular basis. |
Sun Healthcare Limited (Registered number: 04220821) |
Report of the Directors |
for the Year Ended 30 June 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
AUDITORS |
The auditors, Harris & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Sun Healthcare Limited |
Opinion |
We have audited the financial statements of Sun Healthcare Limited (the 'Company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Company's affairs as at 30 June 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Sun Healthcare Limited |
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 Report of the Directors. |
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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | Enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to: |
- | Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- | Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | The internal controls established to mitigate risk related to fraud or non-compliance with laws & regulations; |
- | Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the data protection act, employment, pension, health and safety regulations and the Health and Social Care Act 2008. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
Independent Auditors' Report to the Members of |
Sun Healthcare Limited |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- | Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; |
- | Enquiring of management concerning actual and potential litigation and claims; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; and |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing the judgements used in accounting estimates to assess whether these may be indicative of potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & Statutory Auditor |
Marland House |
13 Huddersfield Road |
Barnsley |
South Yorkshire |
S70 2LW |
Sun Healthcare Limited (Registered number: 04220821) |
Statement of Comprehensive |
Income |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,574,312 | 1,256,401 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income | 7 |
1,640,862 | 1,895,442 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation of land and buildings |
Deferred tax on revaluation of assets | ( |
) |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Sun Healthcare Limited (Registered number: 04220821) |
Statement of Financial Position |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Revaluation reserve | 23 |
Capital redemption reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Sun Healthcare Limited (Registered number: 04220821) |
Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | ( |
) |
Tfr to/from retained earnings | - | 688,102 | (688,102 | ) | - | - |
Balance at 30 June 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Tfr to/from retained earnings | - | (437,444 | ) | 437,444 | - | - |
Balance at 30 June 2024 |
Sun Healthcare Limited (Registered number: 04220821) |
Statement of Cash Flows |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 25,000 | 35,571 |
Amount withdrawn by directors | (32,720 | ) | (1,545 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
757,307 |
Cash and cash equivalents at end of year |
2 |
932,688 |
727,015 |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Statement of Cash Flows |
for the Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 645,401 | 473,703 |
Finance income | (16,671 | ) | (617,561 | ) |
2,033,921 | 1,685,813 |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 June 2024 |
30/6/24 | 1/7/23 |
£ | £ |
Cash and cash equivalents | 932,688 | 727,015 |
Year ended 30 June 2023 |
30/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 727,015 | 757,307 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/7/23 | Cash flow | At 30/6/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 727,015 | 205,673 | 932,688 |
727,015 | 932,688 |
Debt |
Debts falling due within 1 year | (1,057,929 | ) | 185,430 | (872,499 | ) |
Debts falling due after 1 year | (6,257,243 | ) | 630,002 | (5,627,241 | ) |
(7,315,172 | ) | 815,432 | (6,499,740 | ) |
Total | (6,588,157 | ) | 1,021,105 | (5,567,052 | ) |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Sun Healthcare Limited is a private company, limited by shares, registered in England and Wales. The |
company's registered number and registered office address can be found on the Company Information |
page. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
Going concern |
The company is financially strong, with a balance sheet showing net assets of £13.7m and cash of £933k. Accordingly, the directors have a reasonable expectation that the company has adequate financial resources to continue in operational existence for the foreseeable future and so the financial statements are prepared on a going concern basis. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates that affect the amounts reported for assets and liabilities as at the balance sheet date and amounts reported for revenues and expenses during the year. |
The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements: |
Derivative financial instruments |
Interest Rate Swap derivative financial instruments are valued at fair value based on current market valuations and current interest rates. To the extent that the Interest Rate Swap product has been bought out of in the future, interest rates may have fluctuated which means that the liability may be different to that disclosed in the financial statements. |
Valuation of freehold property |
The company's carehome portfolio is reviewed at regular intervals. Carehome valuations are subject to changes in social care policy and other market conditions. |
Provisions for repairs and maintenance costs |
The company provides for exceptional expenditure on repairs and maintenance across the company's carehome properties to ensure that it remains fully compliant with legal and regulatory requirements. The timing of provisions and the related expenditure together with the adequacy of the provision are all dependent upon legal and regulatory changes. |
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies, judgements and estimates have been consistently applied to all years presented unless otherwise stated. |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents amounts earned on services provided during the year and derives from the provision of services falling within the company's ordinary activities. Revenue is recognised at the point of delivery of the service. |
Goodwill |
Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is 20 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
All fixed assets are initially recorded at cost. Freehold property is subsequently recorded on a revaluation basis. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
Financial instruments |
The company has adopted the provisions set out in sections 11 and 12 of FRS 102 in the recognition and measurement of financial instruments. All financial instruments are initially measured at the original transaction price, less associated costs. For subsequent measurement, basic financial instruments are measured at amortised cost in accordance with section 11 of FRS 102. Other financial instruments that are not considered basic and that are material to the financial statements are measured at fair value through profit or loss in accordance with section 12 of FRS 102. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
3. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Other income | 13,132 | 6,237 |
Government grants |
49,879 | 21,480 |
Other operating income includes government grants of £36,747 (2023: £15,243) received via the local authorities to which the Company is contracted, in order to facilitate staff retention and the operation of its care homes. In the opinion of the directors, there are no material unfulfilled conditions or other contingencies relating to this income. |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 2 | 2 |
Administration and management | 10 | 11 |
Nursing and kitchen | 422 | 389 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director for the year ended 30 June 2024 is as follows: |
2024 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors' remn - non-audit |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Deposit account interest |
Movement on derivatives |
(Profits)/losses on derivative financial instruments represents the movement on fair value of these instruments in the year (see note 14 and note 16). |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Other interest |
Movement on derivatives |
(Profits)/losses on derivative financial instruments represents the movement on fair value of these instruments in the year (see note 14 and note 16). |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
9. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods |
(Profit)/loss on derivatives | 27,500 | (152,592 | ) |
Movement on pension creditors | 3,022 | (3,229 | ) |
Tax payable at lower rate | - | (55,216 | ) |
Total tax charge | 381,938 | 231,982 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of land and buildings |
Deferred tax on revaluation of assets | - | 92,540 |
92,540 | - | 92,540 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of land and buildings |
Deferred tax on revaluation of assets | ( |
) | - | (18,075 | ) |
(18,075 | ) | - | (18,075 | ) |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
11. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 July 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Included in cost or valuation of land and buildings is freehold land of £ 5,394,950 (2023 - £ 5,394,950 ) which is not depreciated. |
Cost or revaluation at 30 June 2024 is represented by: |
Freehold property | Fixtures and fittings | Motor vehicles | Totals |
£ | £ | £ | £ |
Valuation in 2022 | 6,018,928 | - | - | 6,018,928 |
Cost | 14,534,194 | 1,007,012 | 106,792 | 15,647,998 |
20,553,122 | 1,007,012 | 106,792 | 21,666,926 |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Historical cost | 14,534,194 | 14,455,822 |
Aggregate depreciation | (3,653,866 | ) | (3,370,652 | ) |
Net book value | 10,880,328 | 11,085,170 |
Non-depreciable land included within historical cost | 3,630,720 | 3,614,974 |
All 7 care homes were subject to an external professional valuation carried out by Christie & Co in June 2022 for the purpose of inclusion in the 30 June 2022 accounts. These valuations were carried out on each property individually on an open market basis assuming they are fully operational entities on a freehold basis. 6 of the 8 remaining non-care home properties owned by the company were also valued by Christie & Co on a Market Value basis assuming vacant possession and no trade potential. 3 non-care home properties were purchased after the valuations were performed and were therefore not included in the valuation. |
In view of the importance of the social care and care homes sector, as evidenced by significant government financial support provided during the Covid crisis in 2020 and 2021, the directors are of the opinion that there is no diminution in value of the portfolio since the last valuation, particularly when taking into account depreciation charges in the current year. |
13. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The Company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: Cockerham Hall, 17 Huddersfield Road, Barnsley, South Yorkshire, S70 2LT |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
14. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Derivative financial instruments |
Aggregate amounts |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 26,305 | 34,025 |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 17) |
Derivative financial instruments | 87,506 | - |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
17. | LOANS - continued |
2024 | 2023 |
£ | £ |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more than 5 years |
by instalments | 2,137,246 | 2,025,527 |
2,137,246 | 2,025,527 |
Bank loans incur interest charges of 1.4% to 1.9% above LIBOR. The company has entered into separate interest rate swaps to hedge interest rate risk. Any gain or loss on these derivative financial instruments is recognised in the profit and loss account (see note 7). |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
The company's bank borrowings are secured by a charge over its freehold land & buildings and related assets. In addition, the bank borrowings are secured by life policies over Mr S Garside and Mr A Tolan with a death benefit of not less than £250,000 each. |
20. | FINANCIAL INSTRUMENTS |
The carrying amounts of the company's financial instruments measured at fair value through the statement of comprehensive income are: |
2024 | 2023 |
£ | £ |
Financial assets | - | 22,493 |
Financial liabilities | 87,506 | - |
Derivative financial instruments |
The company holds derivative financial instruments comprising interest rate swaps to hedge interest rate risks arising from its long term borrowings. Derivative financial instruments are initially measured at fair value; any gain or loss on remeasurement is recognised in the statement of comprehensive income. |
Sun Healthcare Limited (Registered number: 04220821) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
21. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | 472,895 | 565,434 |
552,498 | 637,514 |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Provided during year | ( |
) |
Balance at 30 June 2024 |
The other timing differences of £472,895 relate to deferred tax on the net book value of revalued land and buildings. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 2 | 2 |
23. | RESERVES |
Reserves consist of the following: |
Retained earnings represents the company's cumulative distributable reserves. |
Revaluation reserve represents the company's cumulative reserves relating to the revaluation of freehold property. |
Capital redemption reserve represents cumulative amounts set aside within reserves as share capital is redeemed or repurchased. |
24. | RELATED PARTY DISCLOSURES |
Dividends of £210,000 (2023: £230,000) were paid to the directors. |
The company paid £nil (2023: £6,408) during the year in respect of rental of premises owned by the directors and £nil (2023: £34,025) for the purchase of a motor vehicle from one of the directors. |
The company received £4,605 (2023: £nil) rental income, from a partnership in which the directors are partners. |