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REGISTERED NUMBER: 04220821 (England and Wales)















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: Mr S Garside
Mr A J Tolan





SECRETARY: Mr S Garside





REGISTERED OFFICE: Cockerham Hall
17 Huddersfield Road
Barnsley
South Yorkshire
S70 2LT





REGISTERED NUMBER: 04220821 (England and Wales)





AUDITORS: Harris & Co Limited
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:





Mr S Garside - Director


27 March 2025

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.

Mr S Garside
Mr A J Tolan

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:





Mr S Garside - Director


27 March 2025

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.




Steve Watson FCCA CTA (Senior Statutory Auditor)
for and on behalf of Harris & Co Limited
Chartered Accountants & Statutory Auditor
Marland House
13 Huddersfield Road
Barnsley
South Yorkshire
S70 2LW

27 March 2025

Sun Healthcare Limited (Registered number: 04220821)

Statement of Comprehensive
Income
for the Year Ended 30 June 2024

2024 2023
Notes £    £   

TURNOVER 16,438,364 14,048,087

Cost of sales 11,372,994 9,825,196
GROSS PROFIT 5,065,370 4,222,891

Administrative expenses 3,491,058 2,966,490
1,574,312 1,256,401

Other operating income 4 49,879 21,480
OPERATING PROFIT 6 1,624,191 1,277,881

Interest receivable and similar income 7 16,671 617,561
1,640,862 1,895,442

Interest payable and similar expenses 8 645,401 473,703
PROFIT BEFORE TAXATION 995,461 1,421,739

Tax on profit 9 381,938 231,982
PROFIT FOR THE FINANCIAL YEAR 613,523 1,189,757

OTHER COMPREHENSIVE INCOME
Revaluation of land and buildings
Deferred tax on revaluation of assets 92,540 (18,075 )
Income tax relating to other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

92,540

(18,075

)
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

706,063

1,171,682

Sun Healthcare Limited (Registered number: 04220821)

Statement of Financial Position
30 June 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 20,013,037 20,313,019
Investments 13 1,000 1,000
20,014,037 20,314,019

CURRENT ASSETS
Debtors 14 1,560,243 1,468,439
Cash at bank and in hand 932,688 727,015
2,492,931 2,195,454
CREDITORS
Amounts falling due within one year 15 2,574,179 2,445,235
NET CURRENT LIABILITIES (81,248 ) (249,781 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

19,932,789

20,064,238

CREDITORS
Amounts falling due after more than one
year

16

(5,714,747

)

(6,257,243

)

PROVISIONS FOR LIABILITIES 21 (552,498 ) (637,514 )
NET ASSETS 13,665,544 13,169,481

CAPITAL AND RESERVES
Called up share capital 22 2 2
Revaluation reserve 23 5,892,072 5,362,088
Capital redemption reserve 23 98 98
Retained earnings 23 7,773,372 7,807,293
SHAREHOLDERS' FUNDS 13,665,544 13,169,481

The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2025 and were signed on its behalf by:





Mr S Garside - Director


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 2 6,159,434 6,068,265 98 12,227,799

Changes in equity
Dividends - (230,000 ) - - (230,000 )
Total comprehensive income - 1,189,757 (18,075 ) - 1,171,682
Tfr to/from retained earnings - 688,102 (688,102 ) - -
Balance at 30 June 2023 2 7,807,293 5,362,088 98 13,169,481

Changes in equity
Dividends - (210,000 ) - - (210,000 )
Total comprehensive income - 613,523 92,540 - 706,063
Tfr to/from retained earnings - (437,444 ) 437,444 - -
Balance at 30 June 2024 2 7,773,372 5,892,072 98 13,665,544

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 2,097,053 1,737,513
Interest paid (535,401 ) (473,703 )
Tax paid (229,750 ) (260,561 )
Net cash from operating activities 1,331,902 1,003,249

Cash flows from investing activities
Purchase of tangible fixed assets (109,748 ) (67,059 )
Sale of tangible fixed assets - 1,600
Interest received 16,671 7,193
Net cash from investing activities (93,077 ) (58,266 )

Cash flows from financing activities
Loan repayments in year (815,432 ) (779,301 )
Amount introduced by directors 25,000 35,571
Amount withdrawn by directors (32,720 ) (1,545 )
Equity dividends paid (210,000 ) (230,000 )
Net cash from financing activities (1,033,152 ) (975,275 )

Increase/(decrease) in cash and cash equivalents 205,673 (30,292 )
Cash and cash equivalents at
beginning of year

2

727,015

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 995,461 1,421,739
Depreciation charges 409,730 408,943
Profit on disposal of fixed assets - (1,011 )
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 (114,298 ) 23,483
Increase in trade and other creditors 177,430 28,217
Cash generated from operations 2,097,053 1,737,513

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
727,015 205,673 932,688
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

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - Straight line over 25 years and Straight line over 50 years
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance

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 36,747 15,243
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 9,687,918 7,984,679
Social security costs 792,164 634,415
Other pension costs 301,737 213,865
10,781,819 8,832,959

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
434 402

2024 2023
£    £   
Directors' remuneration 385,396 175,548
Directors' pension contributions to money purchase schemes 133,334 80,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

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 192,698
Pension contributions to money purchase schemes 66,667

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Other operating leases 54,061 72,904
Depreciation - owned assets 409,730 408,944
Profit on disposal of fixed assets - (1,011 )
Auditors' remuneration 30,500 23,000
Auditors' remn - non-audit 2,500 2,000

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
£    £   
Deposit account interest 16,671 7,193
Movement on derivatives - 610,368
16,671 617,561

(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 535,045 473,703
Other interest 356 -
Movement on derivatives 110,000 -
645,401 473,703

(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 374,414 227,338

Deferred tax 7,524 4,644
Tax on profit 381,938 231,982

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 995,461 1,421,739
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 25%)

248,865

355,435

Effects of:
Expenses not deductible for tax purposes 7,524 7,125
Depreciation in excess of capital allowances 90,726 80,223
Adjustments to tax charge in respect of previous periods 4,301 236
(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 - 92,540

2023
Gross Tax Net
£    £    £   
Revaluation of land and buildings
Deferred tax on revaluation of assets (18,075 ) - (18,075 )
(18,075 ) - (18,075 )

10. DIVIDENDS
2024 2023
£    £   
Interim 210,000 230,000

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 250,000
AMORTISATION
At 1 July 2023
and 30 June 2024 250,000
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 20,474,750 975,636 106,792 21,557,178
Additions 78,372 31,376 - 109,748
At 30 June 2024 20,553,122 1,007,012 106,792 21,666,926
DEPRECIATION
At 1 July 2023 369,950 832,088 42,121 1,244,159
Charge for year 370,159 23,403 16,168 409,730
At 30 June 2024 740,109 855,491 58,289 1,653,889
NET BOOK VALUE
At 30 June 2024 19,813,013 151,521 48,503 20,013,037
At 30 June 2023 20,104,800 143,548 64,671 20,313,019

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 20226,018,928--6,018,928
Cost14,534,1941,007,012106,79215,647,998
20,553,1221,007,012106,79221,666,926


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:

20242023
££
Historical cost14,534,19414,455,822
Aggregate depreciation(3,653,866)(3,370,652)
Net book value10,880,32811,085,170
Non-depreciable land included within historical cost3,630,7203,614,974

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 1,000
NET BOOK VALUE
At 30 June 2024 1,000
At 30 June 2023 1,000

The Company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Autism Support & Care Limited
Registered office: Cockerham Hall, 17 Huddersfield Road, Barnsley, South Yorkshire, S70 2LT
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 1,000 1,000

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 1,264,566 1,016,161
Other debtors 6,252 9,504
Prepayments and accrued income 289,425 420,281
1,560,243 1,445,946

Amounts falling due after more than one year:
Derivative financial instruments - 22,493

Aggregate amounts 1,560,243 1,468,439

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 17) 872,499 1,057,929
Trade creditors 177,789 225,083
Amounts owed to group undertakings 1,000 1,000
Corporation tax 370,202 225,538
Social security and other taxes 189,915 165,371
Other creditors 44,118 32,032
Directors' current accounts 26,305 34,025
Accruals and deferred income 892,351 704,257
2,574,179 2,445,235

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 17) 5,627,241 6,257,243
Derivative financial instruments 87,506 -
5,714,747 6,257,243

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 872,499 1,057,929

Amounts falling due between one and two years:
Bank loans - 1-2 years 872,499 1,057,929

Amounts falling due between two and five years:
Bank loans - 2-5 years 2,617,496 3,173,787

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 2,647 -
Between one and five years 19,720 -
22,367 -

19. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 6,499,740 7,315,172

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 79,603 72,080
Other timing differences 472,895 565,434
552,498 637,514

Deferred
tax
£   
Balance at 1 July 2023 637,514
Provided during year (85,016 )
Balance at 30 June 2024 552,498

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: £    £   
2 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.