Company registration number SC188546 (Scotland)
PRIORITY CARE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PRIORITY CARE GROUP LIMITED
COMPANY INFORMATION
Directors
AJ Prior
V A Gibson
H Locherty
Company number
SC188546
Registered office
Priority House
23 Roseangle
Dundee
Scotland
DD1 4LS
Auditor
Findlays Audit Limited
11 Dudhope Terrace
Dundee
DD3 6TS
Bankers
Royal Bank of Scotland
36 St Andrew Square
Edinburgh
EH2 2AD
Royal Bank of Scotland
Solicitors
Blackadders LLP
10 Euclid Crescent
Dundee
DD1 1AG
PRIORITY CARE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
PRIORITY CARE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Fair review of the business

The financial year has been another positive one reflected by continued Group operating profits. The directors continue to work to ensure the control and management of the group remains focused, and the Board are confident the Group will continue to progress.

 

As always, the care sector remains an extremely sensitive market, with fee levels in particular remaining challenging, whilst at the same time costs continue to rise and staffing proving increasingly exigent. The Group well established and constantly adapting to embrace the changing environments, we continue to offer competitive wages rates for all levels of staffing, with this assisting with improvements in staff retention and recruitment, as well as working towards reducing utilisation of agency staff,

 

The Group's policy of investment in property and facilities and maintaining high quality care, augmented by our staff continuing to prove to be hard working and diligent, sustains the enhancement of the Group's position. Moving forward, we intend to maintain and build on our standards of quality and further strengthen and grow the Group, with investment infacilities the key component in this.

Principal risks and uncertainties

The main risks associated with the Group's financial assets and liabilities are set out below:

 

The Group is finance by bank borrowing and therefore there is exposure to interest rate fluctuations and liquidity risk. The group aims to mitigate liquidity risk by managing cash generate by its operations.

 

Credit risk is managed by invoicing in advance whenever possible to private residents and ensuring that all sales invoices are raised timeously Appropriate credit control procedures are followed for all operations. Credit risk is also reduced by being in the advantageous position of having a significant level of income generated through local government.

 

Due to the current employment market,, the Group has faced staffing risks which has meant incurring increased cost for agency staff rather than long term permanent staff. More time has been spent on training new staff with the high turnover.

 

 

Currently, energy prices for power, heat and light are at an all time high which has impacted the Group significantly. Given the care homes have to been heated and well lit to ensure safety standards are met, there is little control over reducing such costs.

PRIORITY CARE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key performance indicators

The Group use a number of keep performance indicators (KPI's) to manage its daily operations and management review. These include, but are not limited to, the KPI's detailed below:

    2024          2023

£         £

Turnover         11,125,615    10,115,669

Operating profit          1,448,707     858,078

Profit before tax          1,067,268     564,545

Net assets         17,549,265    13,564,267

 

 

On behalf of the board

V A Gibson
Director
26 March 2025
PRIORITY CARE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

Results and dividends

The profit for the year, after taxation, amounted to £747,770 (2023 - £247,525).

 

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

Ordinary dividends were paid amounting to £584,000. The directors do not recommend payment of a further dividend.

Directors

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

AJ Prior
V A Gibson
H Locherty
Supplier payment policy

It is the Group's policy that all payments to suppliers are made in accordance with our standard payment terms.

Employee involvement

The Group places strong emphasis in ensuring the well being of our employees and look to share and communicate information to our staff using all possible means.

 

Details of employees and related costs can be found in note 6 to the financial statements.

 

Applications for employment by disabled persons are always fully considered, bearing in mind the attitudes of the applicant concerned related to the position in questions. In the event of any member of staff becoming disabled, every effort is made to ensure their employment within the Group continues.

Future developments

Moving forward, we intend to maintain and build on our standards of quality and further strengthen and grow the Group, with investment infacilities the key component in this.

Auditor

The auditor, Findlays Chartered Accountants, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The Group recognises the importance of its environmental responsibilities and monitor its impact on the environment by implementing any policies necessary to reduce any damage that might be caused by the Group's activities. Consultants are employed when looking at new facilities to try and ensure there are as environmentally friendly as possible.

Statement of disclosure to auditor

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

PRIORITY CARE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Health & Safety

The Group recognises the importance and implications of the Health & Safety at Work Act 1974, the Environmental Protection Legislation and all new Health & Safety legislation, including that being introduced through EU directives.

On behalf of the board
V A Gibson
Director
26 March 2025
PRIORITY CARE GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PRIORITY CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRIORITY CARE GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Priority Care Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

PRIORITY CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRIORITY CARE GROUP LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material mis-statements in respect of irregularities, including fraud and non-compliance with laws and regulations is detailed below

 

The audit team has appropriate skills and expertise required and through discussions with management and Directors knowledge of the sector to ensure any non compliance is recognised and all necessary disclosures are made. the controls in place help the company mitigate the risk of fraud and also aids them in highlighting any instances of fraud that might have occurred.

 

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

 

 

PRIORITY CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRIORITY CARE GROUP LIMITED
- 8 -

Because of the field in which the client operates we identified the following areas as those most likely to have a material impact on the financial statements:

 

Direct impact on financial statements:

 

Indirect impact on financial statements:

 

 

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.

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

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Lesley Campbell, BA, C.A. (Senior Statutory Auditor)
For and on behalf of Findlays Audit Limited
11 Dudhope Terrace
Dundee
DD3 6TS
26 March 2025
Findlays is eligible for appointment as auditor of the company by virtue of its eligibility for appointment as auditor of a company under s 1212 of the Companies Act 2006
PRIORITY CARE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
11,125,615
10,115,669
Cost of sales
(6,590,729)
(6,376,316)
Gross profit
4,534,886
3,739,353
Administrative expenses
(3,102,014)
(2,898,048)
Other operating income
15,835
16,773
Operating profit
4
1,448,707
858,078
Interest receivable and similar income
7
22,770
19,954
Interest payable and similar expenses
8
(404,209)
(313,487)
Profit before taxation
1,067,268
564,545
Tax on profit
9
(319,498)
(317,020)
Profit for the financial year
25
747,770
247,525
Other comprehensive income
Revaluation of tangible fixed assets
4,447,460
-
0
Tax relating to other comprehensive income
(726,232)
(332,875)
Total comprehensive income for the year
4,468,998
(85,350)
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
PRIORITY CARE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
23,677,312
19,164,746
Investment property
13
280,590
280,590
23,957,902
19,445,336
Current assets
Stocks
17
3,550
3,550
Debtors
18
1,656,898
1,925,706
Cash at bank and in hand
1,604,594
1,061,765
3,265,042
2,991,021
Creditors: amounts falling due within one year
19
(2,344,156)
(1,667,234)
Net current assets
920,886
1,323,787
Total assets less current liabilities
24,878,788
20,769,123
Creditors: amounts falling due after more than one year
20
(4,672,200)
(5,272,944)
Provisions for liabilities
Deferred tax liability
22
2,657,323
1,931,912
(2,657,323)
(1,931,912)
Net assets
17,549,265
13,564,267
Capital and reserves
Called up share capital
24
75
75
Revaluation reserve
25
12,256,694
8,647,974
Capital redemption reserve
25
275,677
275,677
Profit and loss reserves
25
5,016,819
4,640,541
Total equity
17,549,265
13,564,267
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
26 March 2025
AJ Prior
Director
Company registration number SC188546 (Scotland)
PRIORITY CARE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,511,323
6,347,174
Investments
14
104
104
8,511,427
6,347,278
Current assets
Debtors
18
1,199,443
2,255,142
Cash at bank and in hand
1,278,167
458,871
2,477,610
2,714,013
Creditors: amounts falling due within one year
19
(727,289)
(524,253)
Net current assets
1,750,321
2,189,760
Total assets less current liabilities
10,261,748
8,537,038
Creditors: amounts falling due after more than one year
20
(4,672,200)
(5,272,944)
Provisions for liabilities
Deferred tax liability
22
1,169,169
764,913
(1,169,169)
(764,913)
Net assets
4,420,379
2,499,181
Capital and reserves
Called up share capital
24
75
75
Revaluation reserve
25
3,425,644
1,597,928
Capital redemption reserve
25
75
75
Profit and loss reserves
25
994,585
901,103
Total equity
4,420,379
2,499,181
PRIORITY CARE GROUP LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024
30 June 2024
- 12 -

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £599,285 (2023 - £385,928 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
26 March 2025
AJ Prior
Director
Company registration number SC188546 (Scotland)
PRIORITY CARE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
75
9,122,388
275,677
4,359,477
13,757,617
Year ended 30 June 2023:
Profit for the year
-
-
-
247,525
247,525
Other comprehensive income:
Tax relating to other comprehensive income
-
(332,875)
-
-
0
(332,875)
Total comprehensive income
-
(332,875)
-
247,525
(85,350)
Dividends
10
-
-
-
(108,000)
(108,000)
Transfers
-
-
-
102,818
102,818
Other movements
-
(141,539)
-
38,721
(102,818)
Balance at 30 June 2023
75
8,647,974
275,677
4,640,541
13,564,267
Year ended 30 June 2024:
Profit for the year
-
-
-
747,770
747,770
Other comprehensive income:
Revaluation of tangible fixed assets
-
4,447,460
-
-
4,447,460
Tax relating to other comprehensive income
-
(726,232)
-
-
0
(726,232)
Total comprehensive income
-
3,721,228
-
747,770
4,468,998
Dividends
10
-
-
-
(584,000)
(584,000)
Transfers
-
100,000
-
212,508
312,508
Other movements
-
(212,508)
-
-
(212,508)
Balance at 30 June 2024
75
12,256,694
275,677
5,016,819
17,549,265
PRIORITY CARE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
75
1,819,897
75
584,455
2,404,502
Year ended 30 June 2023:
Profit for the year
-
-
-
385,927
385,927
Other comprehensive income:
Tax relating to other comprehensive income
-
(183,248)
-
-
0
(183,248)
Total comprehensive income
-
(183,248)
-
385,927
202,679
Dividends
10
-
-
-
(108,000)
(108,000)
Other movements
-
(38,721)
-
38,721
-
Balance at 30 June 2023
75
1,597,928
75
901,103
2,499,181
Year ended 30 June 2024:
Profit for the year
-
-
-
599,284
599,284
Other comprehensive income:
Revaluation of tangible fixed assets
-
2,312,036
-
-
2,312,036
Tax relating to other comprehensive income
-
(406,121)
-
-
0
(406,121)
Total comprehensive income
-
1,905,915
-
599,284
2,505,199
Dividends
10
-
-
-
(584,000)
(584,000)
Transfers
-
-
-
78,199
78,199
Other movements
-
(78,199)
-
-
(78,199)
Balance at 30 June 2024
75
3,425,644
75
994,585
4,420,379
PRIORITY CARE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,558,901
1,749,795
Interest paid
(404,209)
(313,487)
Income taxes paid
(57,114)
(200,600)
Net cash inflow from operating activities
2,097,578
1,235,708
Investing activities
Purchase of tangible fixed assets
(577,408)
(598,153)
Proceeds from disposal of tangible fixed assets
-
51,895
Repayment of loans
(18,403)
75,853
Interest received
22,770
19,954
Net cash used in investing activities
(573,041)
(450,451)
Financing activities
Repayment of bank loans
(397,708)
(432,710)
Dividends paid to equity shareholders
(584,000)
(108,000)
Net cash used in financing activities
(981,708)
(540,710)
Net increase in cash and cash equivalents
542,829
244,547
Cash and cash equivalents at beginning of year
1,061,765
817,218
Cash and cash equivalents at end of year
1,604,594
1,061,765
PRIORITY CARE GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
1,021,637
(106,673)
Income taxes paid
-
0
(92,532)
Net cash inflow/(outflow) from operating activities
1,021,637
(199,205)
Investing activities
Repayment of loans
(18,403)
75,853
Interest received
22,770
19,954
Dividends received
775,000
575,000
Net cash generated from investing activities
779,367
670,807
Financing activities
Repayment of bank loans
(397,708)
(432,710)
Dividends paid to equity shareholders
(584,000)
(108,000)
Net cash used in financing activities
(981,708)
(540,710)
Net increase/(decrease) in cash and cash equivalents
819,296
(69,108)
Cash and cash equivalents at beginning of year
458,871
527,979
Cash and cash equivalents at end of year
1,278,167
458,871
PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
1
Accounting policies
Company information

Priority Care Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is .

 

The group consists of Priority Care Group Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

The Company have taken advantage of teh exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Priority Care Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

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

1.4
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliable measured. Turnover is recongised in respect of the provision of care services.

PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Development costs
10 years straight line
1.6
Tangible fixed assets

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

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

Freehold Property
2% straight line
Fixtures and fittings
15%-33% straight line
Motor vehicles
25% reducing balance

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

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

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

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

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

Classification of financial liabilities

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

PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 22 -
1.15
Employee benefits

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

 

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

 

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

1.16
Retirement benefits

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

1.17
Leases

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

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

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

Depreciation

Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.

 

Fixed assets are also assessed as to whether there are indicators of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.

Freehold Property

The properties are revalued on a regular basis by qualified Chartered Surveyors and the directors use their knowledge of the sector to review the valuation of their properties at each year end.

Investment Property Valuation

The valuations have been made by the directors of the company on an open market value basis.

Accruals

The Directors estimate accruals based on post year end information. Accruals are released when there is a reasonable expectation that costs will not be invoiced in the future.

PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Residential Care of Elderly & Adults with learning difficulties
11,125,615
10,115,669
2024
2023
£
£
Other revenue
Interest income
22,770
19,954
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
612,302
593,686
Profit on disposal of tangible fixed assets
-
(13,130)
Operating lease charges
1,704
1,524
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,800
3,600
Audit of the financial statements of the company's subsidiaries
26,400
21,214
34,200
24,814
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
252
250
3
3
PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,294,760
6,104,586
-
0
-
0
Social security costs
470,128
411,630
-
-
Pension costs
101,949
92,165
-
0
-
0
6,866,837
6,608,381
-
0
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
22,770
19,954
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
404,209
307,865
Other finance costs:
Interest on finance leases and hire purchase contracts
-
5,622
Total finance costs
404,209
313,487
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
320,319
150,376
Adjustments in respect of prior periods
-
0
(6,609)
Total current tax
320,319
143,767
Deferred tax
Origination and reversal of timing differences
(821)
173,253
Total tax charge
319,498
317,020

The tax rate changed in April 2023 from 19% to 25%. The rate of 25% has been used in the tax reconciliation.

PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 25 -

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

2024
2023
£
£
Profit before taxation
1,067,268
564,545
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
266,817
115,732
Tax effect of expenses that are not deductible in determining taxable profit
2,228
3,464
Gains not taxable
-
0
788
Effect of change in corporation tax rate
-
(32)
Group relief
(2,928)
-
0
Permanent capital allowances in excess of depreciation
54,202
173,253
Under/(over) provided in prior years
-
0
(6,609)
Deferred tax adjustments in respect of prior years
(821)
-
0
Short term timing difference leading to an increase/(decrease) in taxation
-
0
30,424
Taxation charge
319,498
317,020

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

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
726,232
332,875
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
584,000
108,000
11
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 July 2023 and 30 June 2024
192,000
117,260
309,260
Amortisation and impairment
At 1 July 2023 and 30 June 2024
192,000
117,260
309,260
PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Intangible fixed assets
(Continued)
- 26 -
Carrying amount
At 30 June 2024
-
0
-
0
-
0
At 30 June 2023
-
0
-
0
-
0
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.
12
Tangible fixed assets
Group
Freehold Property
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 July 2023
20,267,940
2,223,179
387,013
22,878,132
Additions
284,019
293,389
-
0
577,408
Revaluation
2,515,656
-
0
-
0
2,515,656
At 30 June 2024
23,067,615
2,516,568
387,013
25,971,196
Depreciation and impairment
At 1 July 2023
1,629,573
1,925,968
157,845
3,713,386
Depreciation charged in the year
413,041
136,827
62,434
612,302
Revaluation
(2,031,804)
-
0
-
0
(2,031,804)
At 30 June 2024
10,810
2,062,795
220,279
2,293,884
Carrying amount
At 30 June 2024
23,056,805
453,773
166,734
23,677,312
At 30 June 2023
18,638,367
297,211
229,168
19,164,746
PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 27 -
Company
Freehold Property
Fixtures and fittings
Total
£
£
£
Cost or valuation
At 1 July 2023
6,875,514
99,100
6,974,614
Revaluation
1,624,486
-
0
1,624,486
At 30 June 2024
8,500,000
99,100
8,599,100
Depreciation and impairment
At 1 July 2023
550,040
77,400
627,440
Depreciation charged in the year
137,510
10,377
147,887
Revaluation
(687,550)
-
0
(687,550)
At 30 June 2024
-
0
87,777
87,777
Carrying amount
At 30 June 2024
8,500,000
11,323
8,511,323
At 30 June 2023
6,325,474
21,700
6,347,174

The carrying value of land and buildings comprises:

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
23,056,803
18,638,367
6,905,000
6,325,474

Land & buildings with a carrying amount of £22,775,000 were revalued in 2024 by Jones Lang LaSalle, independent valuers are not connected with the company on the basis of market value. The valuation was based on recent market transactions on arm's length terms for similar properties. In addition there are cottages being refurbished with a value of £281,803.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 28 -
Freehold Property
2024
2023
£
£
Group
Cost
11,022,436
10,646,427
Accumulated depreciation
(1,768,294)
(1,974,113)
Carrying value
9,254,142
8,672,314
Company
Cost
2,669,484
2,669,484
Accumulated depreciation
(244,290)
(106,780)
Carrying value
2,425,194
2,562,704
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 July 2023 and 30 June 2024
280,590
-

Investment property comprises 2 properties held for rental purposes. These were purchased last year and the value has been deemed to be appropriate by the directors.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
104
104
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
104
Carrying amount
At 30 June 2024
104
At 30 June 2023
104
PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
15
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Priority Care Limited
Priority House, 23 Roseangle, Dundee, DD1 4LS
Ordinary
100.00
Priority Care Nursing Limited
Priority House, 23 Roseangle, Dundee, DD1 4LS
Ordinary
100.00
Priority Care (Northern) Limited
Priority House, 23 Roseangle, Dundee, DD1 4LS
Ordinary
100.00
Priority Care (Tayside) Limited
Priority House, 23 Roseangle, Dundee, DD1 4LS
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Priority Care Limited
3,303,632
112,488
Priority Care Nursing Limited
5,114,153
395,345
Priority Care (Northern) Limited
3,791,442
290,270
Priority Care (Tayside) Limited
2,116,009
125,384
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
3,339,955
2,914,436
2,477,610
2,714,013
Carrying amount of financial liabilities include:
Measured at fair value through profit or loss
- Other financial liabilities
7,049,299
6,654,426
5,399,489
5,797,197

Financial assets are measured at amortised cost comprises of cash at bank and in hand, trade and other debtors.

 

Financial liabilities measured at amortised cost comprise of bank overdrafts and loans, trade and other creditors, payments on account, accruals and deferred income.

17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
3,550
3,550
-
-
PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
631,896
592,895
-
0
-
0
Corporation tax recoverable
211,080
239,626
211,080
211,080
Amounts owed by group undertakings
-
-
247,172
1,037,622
Other debtors
720,861
979,690
720,861
979,690
Prepayments and accrued income
93,061
113,495
20,330
26,750
1,656,898
1,925,706
1,199,443
2,255,142
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
722,489
519,453
722,489
519,453
Payments received on account
86,024
79,951
-
0
-
0
Trade creditors
214,003
244,760
-
0
-
0
Corporation tax payable
320,319
85,660
-
0
-
0
Other taxation and social security
187,877
148,949
-
-
Other creditors
523,854
353,924
-
0
-
0
Accruals and deferred income
289,590
234,537
4,800
4,800
2,344,156
1,667,234
727,289
524,253

Bank loans and overdrafts are secured by a standard security over the group properties and by a bond and floating charge over all of the company assets. An intercompany guarantee is held over the assets of all the companies of Priority Care Group Limited.

20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
4,672,200
5,272,944
4,672,200
5,272,944

 

Amounts included above which fall due after five years are as follows:
Payable by instalments
1,782,245
3,325,015
1,782,245
3,325,015
PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
5,394,689
5,792,397
5,394,689
5,792,397
Payable within one year
722,489
519,453
722,489
519,453
Payable after one year
4,672,200
5,272,944
4,672,200
5,272,944

Bank loans and overdrafts are secured by a standard security over the group properties and by a bond and floating charge over all of the company assets. An intercompany guarantee is held over the assets of all the companies of Priority Care Group Limited.

In September 2020 the company secured a loan repayable over 7 years. The loan is secured by a standard security over the properties owned by Priority Care Group Limited, Priority Care Limited and Priority Care Nursing Limited and via a bond and floating charge over the assets of all the group companies. An intercompany guarantee is held over the assets of all the companies of Priority Care Group Limited. At the balance sheet date the loan was due for repayment within 5 years.

 

A further loan was secured in May 2022 repayable over 10 years with the same conditions and security as the previous loans.

22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
65,005
64,259
Revaluation on fixed assets
2,592,318
1,867,653
2,657,323
1,931,912
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
(485)
1,379
Revaluation on fixed assets
1,169,654
763,534
1,169,169
764,913
PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
22
Deferred taxation
(Continued)
- 32 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
1,931,912
764,913
Charge to profit or loss
603,895
404,256
Charge to other comprehensive income
121,516
-
Liability at 30 June 2024
2,657,323
1,169,169

The deferred tax liability set out above is expected to reverse within the next few years and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,949
92,165

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

Included in creditors at the year end is £15,395 (2021 - £12,715) relating to pension contributions outstanding at the year end.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
750
750
75
75
25
Reserves
Revaluation reserve

The revaluation reserve relates to the revaluation of the properties owned by the group, as adjusted for deferred tax. At the year end £12,256,694 (2023 - £8,647,974) was included in a revaluation reserve relating to properties held in the group revalued in 2024. This is considered to be a non distributable reserve.

 

Of the above £3,425,644 (2023 - £1,597,928) relates to the company's share of the non distributable reserves.

Capital redemption reserve

The capital redemption reserve within the company relates to the buy back of 50 ordinary shares in 2010, and 25 ordinary shares in 2019.

PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
26
Directors' transactions

During the year the following transactions occurred between the company and its directors;

 

Mr Andrew J Prior was advanced funds of £39,937 from the group and made repayments totalling £30,000. Included in other debtors at the year end is a balance of £303,840 (2023 - £292,469) due to the Company.

 

Mrs Veronica Gibson was advanced funds of £38,465 from the group and made repayments totalling £30,000. Included in other debtors at the year end is a balance of £277,593 (2023 - £270,561) due to the Company.

27
Controlling party

There is no ultimate controlling party.

28
Cash generated from group operations
2024
2023
£
£
Profit after taxation
747,770
247,525
Adjustments for:
Taxation charged
319,498
317,020
Finance costs
404,209
313,487
Investment income
(22,770)
(19,954)
Gain on disposal of tangible fixed assets
-
(13,130)
Depreciation and impairment of tangible fixed assets
612,302
593,686
Movements in working capital:
Decrease in debtors
258,665
137,129
Increase in creditors
239,227
174,032
Cash generated from operations
2,558,901
1,749,795
29
Cash generated from/(absorbed by) operations - company
2024
2023
£
£
Profit after taxation
599,283
385,927
Adjustments for:
Taxation credited
(1,865)
(1,296)
Investment income
(797,770)
(594,954)
Depreciation and impairment of tangible fixed assets
147,887
149,638
Movements in working capital:
Decrease/(increase) in debtors
1,074,102
(44,788)
Decrease in creditors
-
(1,200)
Cash generated from/(absorbed by) operations
1,021,637
(106,673)
PRIORITY CARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 34 -
30
Analysis of changes in net debt - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,061,765
542,829
1,604,594
Borrowings excluding overdrafts
(5,792,397)
397,708
(5,394,689)
(4,730,632)
940,537
(3,790,095)
31
Analysis of changes in net debt - company
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
458,871
819,296
1,278,167
Borrowings excluding overdrafts
(5,792,397)
397,708
(5,394,689)
(5,333,526)
1,217,004
(4,116,522)
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