REGISTERED NUMBER: 12278754 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 June 2024 |
for |
Cherish Holdings Limited |
REGISTERED NUMBER: 12278754 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 June 2024 |
for |
Cherish Holdings Limited |
Cherish Holdings Limited (Registered number: 12278754) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
Cherish Holdings Limited |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Ground Floor Seneca House |
Links Point |
Amy Johnson Way |
Blackpool |
Lancashire |
FY4 2FF |
Cherish Holdings Limited (Registered number: 12278754) |
Group Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The "Cherish Holdings Group"" is formed of the following companies: |
Cherish Holdings Limited |
Cherish UK Limited |
Cherish Childrens Care Limited |
Cherish Lancashire Limited (dormant) |
The Group considers its financial KPI's to be turnover, gross profit and operating profit. |
For the year ending 30 June 2024 the Cherish Holdings group achieved a turnover of £21,025,705 (2023:£16,147,705), an increase of £4,878,000 (30%). |
For the year ending 30 June 2024 the gross profit margin for the Group was 25%, (2023: 26%), The group has achieved a gross profit of £5,246,125 (2023: £4,060,098) an increase of £1,186,027 . The increase in gross profit is attributable to increased turnover across all the group's activities . |
For the year ending 30 June 2024 the Cherish Holdings group achieved an operating profit of £2,379,064 ( 2023 : £1,572,529), an increase of £806,535. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group financial results are influenced by a number of risks and uncertainties, some of which cannot be controlled and management are looking to mitigate these risks. |
The group has identified the following as potential financial risks. |
- CQC downgrades. Most of the company's are regulated by CQC. If any branch or service was downgraded from 'Good' this could limit future work opportunities and growth, contract suspension or cancellation is not viewed as a risk due to over demand in the market. All Cherish Group branches are currently rated as Good or higher and performance management in this regard is constantly monitored. |
ON BEHALF OF THE BOARD: |
27 March 2025 |
Cherish Holdings Limited (Registered number: 12278754) |
Report of the Directors |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
DIVIDENDS |
An interim dividend of 3287.50 per share on the A Ordinary £1 shares was paid on 30 June 2024. The directors recommend that no final dividend be paid on these shares. |
No interim dividend was paid on the B Ordinary £1 shares. The directors recommend that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 30 June 2024 will be £ 710,100 . |
FUTURE DEVELOPMENTS |
Group sales increased 30% in the period, with EBITDA correspondingly up in a year in which the Group continued to experience sustained growth. The Group continues to forecast steady growth in our chosen sectors though pricing and fee increases continue to disappoint. |
In 2023 the company won two new long-term Homecare Framework Contracts in Warrington and Blackburn with Darwin and we have now built up a robust number of hours in each which has benefited the 2024 accounts. Existing long-term framework contracts have experienced growth of between 10% and 15% year on year. |
Cherish Childrens Care experienced high growth with an increase of 55% in sales for the accounting period. This is the full effect of a 5th fully open home and a 6th in start-up phase (which subsequently opened in August 2024). We continue to develop new home provision in line with demand from Northwest based Councils. The company plans to open two further homes within the next financial year. |
Looking forward - demand is continuing to grow in all of the market areas we operate in and we view this as sustainable in the medium and long term. In Cherish UK we will continue to build up newer contracts, tender for suitable opportunities and are planning to increase our presence in the privately paid market. In Childrens Care we are planning 2 more home openings within the next financial year as this service aims for continued high growth. |
Our Group Senior Management Team is fully in place with each having measurable targets to achieve in the coming year. We have also initiated and delivered a high-level Branch Leadership Programme as we continue to invest highly in our employees. The Group will also continue to support a minimum pay level above the real living wage despite the pressures from additional minimum pay thresholds and higher NI costs, this is a challenge for all companies working in the social care sector. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The group's principal financial instrument are loans and corporate finance arrangements. The main purpose of the financial instruments is to raise finance for the group's operations. The group has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations. |
The main risks arising from the group's financial instruments are credit risk, interest risk and liquidity risk. |
Credit Risk |
The group considers its customer credit risk to be low due to the cash nature of the business. The group operates under normal credit terms determined by its suppliers. |
Interest rate risk |
The group is subject to interest risk on borrowings. |
Liquidity & cash flow risk |
The group's objective is to maintain a balance between continuity of funding through the use of loans facilities and its operations. |
Cherish Holdings Limited (Registered number: 12278754) |
Report of the Directors |
for the Year Ended 30 June 2024 |
DISABLED PERSONS |
The directors endeavour to ensure as far as possible the training, career development and promotion of disabled persons is the same as for other employees. Should employees become disabled, every effort is made to ensure that their employment continues, and appropriate retraining is received. |
ENGAGEMENT WITH EMPLOYEES |
Regular meetings with employees' representatives are held to inform them of the development of the business. The Group is committed to improving its participative and consultative arrangements with all employees. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Crossley & Davis Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Cherish Holdings Limited |
Opinion |
We have audited the financial statements of Cherish Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 June 2024 and of the group's 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 group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Cherish Holdings Limited |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 four, 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 group's and 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 group or the parent 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Detecting irregularities |
We gained an understanding of the legal and regulatory framework applicable to the entity and the industry in which it operates, and considered the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Cherish Holdings Limited |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Ground Floor Seneca House |
Links Point |
Amy Johnson Way |
Blackpool |
Lancashire |
FY4 2FF |
Cherish Holdings Limited (Registered number: 12278754) |
Consolidated Income Statement |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 21,025,705 | 16,147,705 |
Cost of sales | 15,779,580 | 12,087,607 |
GROSS PROFIT | 5,246,125 | 4,060,098 |
Administrative expenses | 2,888,817 | 2,518,143 |
2,357,308 | 1,541,955 |
Other operating income | 3 | 21,756 | 30,574 |
OPERATING PROFIT | 5 | 2,379,064 | 1,572,529 |
Interest receivable and similar income | 761 | 1,493 |
2,379,825 | 1,574,022 |
Interest payable and similar expenses | 7 | 197,217 | 141,527 |
PROFIT BEFORE TAXATION | 2,182,608 | 1,432,495 |
Tax on profit | 8 | 576,357 | 305,761 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,606,251 | 1,126,734 |
Cherish Holdings Limited (Registered number: 12278754) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,606,251 | 1,126,734 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,606,251 |
1,126,734 |
Total comprehensive income attributable to: |
Owners of the parent | 1,606,251 | 1,126,734 |
Cherish Holdings Limited (Registered number: 12278754) |
Consolidated Balance Sheet |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 2,874,155 | 1,920,352 |
Investments | 12 | 4 | 4 |
2,874,159 | 1,920,356 |
CURRENT ASSETS |
Debtors | 13 | 3,625,898 | 3,468,625 |
Cash at bank and in hand | 1,590,102 | 777,209 |
5,216,000 | 4,245,834 |
CREDITORS |
Amounts falling due within one year | 14 | 2,287,174 | 1,677,697 |
NET CURRENT ASSETS | 2,928,826 | 2,568,137 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,802,985 |
4,488,493 |
CREDITORS |
Amounts falling due after more than one year |
15 |
1,349,050 |
930,709 |
NET ASSETS | 4,453,935 | 3,557,784 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 220 | 220 |
Other reserves | 20 | 90 | 90 |
Retained earnings | 20 | 4,453,625 | 3,557,474 |
SHAREHOLDERS' FUNDS | 4,453,935 | 3,557,784 |
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: |
P Watson - Director |
Cherish Holdings Limited (Registered number: 12278754) |
Company Balance Sheet |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS/(LIABILITIES) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's profit for the financial year | 741,053 | 849,228 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Cherish Holdings Limited (Registered number: 12278754) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 | 220 | 3,286,780 | 90 | 3,287,090 |
Changes in equity |
Dividends | - | (856,040 | ) | - | (856,040 | ) |
Total comprehensive income | - | 1,126,734 | - | 1,126,734 |
Balance at 30 June 2023 | 220 | 3,557,474 | 90 | 3,557,784 |
Changes in equity |
Dividends | - | (710,100 | ) | - | (710,100 | ) |
Total comprehensive income | - | 1,606,251 | - | 1,606,251 |
Balance at 30 June 2024 | 220 | 4,453,625 | 90 | 4,453,935 |
Cherish Holdings Limited (Registered number: 12278754) |
Company Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 | ( |
) | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2024 |
Cherish Holdings Limited (Registered number: 12278754) |
Consolidated Cash Flow Statement |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,509,240 | 1,940,101 |
Interest paid | (197,217 | ) | (141,527 | ) |
Tax paid | (228,761 | ) | (359,045 | ) |
Net cash from operating activities | 2,083,262 | 1,439,529 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,108,973 | ) | (998,277 | ) |
Sale of tangible fixed assets | 10,376 | - |
Interest received | 761 | 1,493 |
Net cash from investing activities | (1,097,836 | ) | (996,784 | ) |
Cash flows from financing activities |
New loans in year | 596,820 | 593,233 |
Loan repayments in year | (111,577 | ) | (71,056 | ) |
Amount introduced by directors | 3,345 | 138,185 |
Equity dividends paid | (710,100 | ) | (856,040 | ) |
Net cash from financing activities | (221,512 | ) | (195,678 | ) |
Increase in cash and cash equivalents | 763,914 | 247,067 |
Cash and cash equivalents at beginning of year |
2 |
319,310 |
72,243 |
Cash and cash equivalents at end of year | 2 | 1,083,224 | 319,310 |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,182,608 | 1,432,495 |
Depreciation charges | 139,984 | 99,288 |
Loss on disposal of fixed assets | 4,810 | - |
Finance costs | 197,217 | 141,527 |
Finance income | (761 | ) | (1,493 | ) |
2,523,858 | 1,671,817 |
(Increase)/decrease in trade and other debtors | (162,870 | ) | 71,438 |
Increase in trade and other creditors | 148,252 | 196,846 |
Cash generated from operations | 2,509,240 | 1,940,101 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 1,590,102 | 777,209 |
Bank overdrafts | (506,878 | ) | (457,899 | ) |
1,083,224 | 319,310 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 777,209 | 883,922 |
Bank overdrafts | (457,899 | ) | (811,679 | ) |
319,310 | 72,243 |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 June 2024 |
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 | 777,209 | 812,893 | 1,590,102 |
Bank overdrafts | (457,899 | ) | (48,979 | ) | (506,878 | ) |
319,310 | 763,914 | 1,083,224 |
Debt |
Debts falling due within 1 year | (65,533 | ) | (66,902 | ) | (132,435 | ) |
Debts falling due after 1 year | (930,709 | ) | (418,341 | ) | (1,349,050 | ) |
(996,242 | ) | (485,243 | ) | (1,481,485 | ) |
Total | (676,932 | ) | 278,671 | (398,261 | ) |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Cherish Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group. |
The merger method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. |
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. |
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements. |
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder's share of changes in equity since the date of the combination. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
A full year's depreciation is charged in the year of purchase. |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The following assets and liabilities are classified as financial instruments -trade debtors, trade creditors, bank loans and directors' loans. |
Bank Loans are initially measured at the present value of future payments, |
discounted at a market rate of interest, and subsequently at amortised cost |
using the effective interest method. |
Directors' loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. |
Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Grant income | 21,756 | 30,574 |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 16,518,274 | 12,811,534 |
Other pension costs | 229,618 | 184,285 |
16,747,892 | 12,995,819 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management & administration | 40 | 36 |
Direct labour | 686 | 593 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 35,686 | 19,500 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Other operating leases | 145,403 | 130,052 |
Depreciation - owned assets | 139,984 | 99,287 |
Loss on disposal of fixed assets | 4,810 | - |
6. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
20,400 |
20,100 |
The company entered into a liability limitation agreement with the auditor on 2 March 2023. The liability of the auditor in respect of any claim or claims made by the company is limited to £4,000,000 inclusive of interest' and costs. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 97,925 | 48,026 |
Other interest | - | 2,342 |
Funding charges | 99,292 | 91,159 |
197,217 | 141,527 |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
8. | 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 | 570,760 | 339,234 |
Deferred tax | 5,597 | (33,473 | ) |
Tax on profit | 576,357 | 305,761 |
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 | 2,182,608 | 1,432,495 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20.500 %) |
545,652 |
293,661 |
Effects of: |
Expenses not deductible for tax purposes | 19,376 | 11,216 |
Depreciation in excess of capital allowances | 11,801 | 6,827 |
Adjustments to tax charge in respect of previous periods | (472 | ) | (277 | ) |
Difference on deferred tax rates | - | (5,666 | ) |
Total tax charge | 576,357 | 305,761 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
A Ordinary shares of £1 each |
Interim | 710,100 | 856,040 |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Short | and | Motor |
property | leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 | 1,721,402 | 174,257 | 195,553 | 113,105 | 2,204,317 |
Additions | 893,415 | 128,016 | 12,994 | 74,548 | 1,108,973 |
Disposals | - | - | - | (35,529 | ) | (35,529 | ) |
At 30 June 2024 | 2,614,817 | 302,273 | 208,547 | 152,124 | 3,277,761 |
DEPRECIATION |
At 1 July 2023 | 78,504 | 39,105 | 113,891 | 52,465 | 283,965 |
Charge for year | 52,296 | 30,227 | 23,664 | 33,797 | 139,984 |
Eliminated on disposal | - | - | - | (20,343 | ) | (20,343 | ) |
At 30 June 2024 | 130,800 | 69,332 | 137,555 | 65,919 | 403,606 |
NET BOOK VALUE |
At 30 June 2024 | 2,484,017 | 232,941 | 70,992 | 86,205 | 2,874,155 |
At 30 June 2023 | 1,642,898 | 135,152 | 81,662 | 60,640 | 1,920,352 |
Company |
Freehold |
property |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
12. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 4 |
NET BOOK VALUE |
At 30 June 2024 | 4 |
At 30 June 2023 | 4 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 8 Skyways Commercial Campus, Amy Johnson Way Blackpool FY4 3RS |
Nature of business: |
% |
Class of shares: | holding |
Cherish Childrens Care Limited |
Registered office: 8 Skyways Commercial Campus, Amy Johnson Way Blackpool FY$ 3RS |
Nature of business: Childrens homes |
% |
Class of shares: | holding |
Ordinary- | 100.00 |
This is an indirect holding of shares by virtue of the company being a 100% subsidiary of Cherish UK Limited. |
Cherish Lancashire Limited |
Registered office: 17/19 Park Street Lytham St Annes Lancashire FY8 5LU |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
This is an indirect holding of shares by virtue of the company being a 100% subsidiary of Cherish UK Limited |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 1,346,870 | 1,354,466 |
Other debtors | 2,121,448 | 1,969,307 |
Deferred tax asset | 9,735 | 15,332 |
Prepayments | 147,845 | 129,520 |
3,625,898 | 3,468,625 |
Deferred tax asset |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 9,735 | 15,332 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 639,313 | 523,432 |
Trade creditors | 51,855 | 56,971 |
Amounts owed to group undertakings | - | - |
Tax | 574,997 | 232,998 |
Social security and other taxes | 254,333 | 203,580 |
Other creditors | 111,960 | 155,306 |
Directors' loan accounts | 4,653 | 1,308 | - | - |
Accruals and deferred income | 650,063 | 504,102 |
2,287,174 | 1,677,697 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 16) | 1,349,050 | 930,709 |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 506,878 | 457,899 |
Bank loans | 132,435 | 65,533 |
639,313 | 523,432 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 132,435 | 87,823 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 397,304 | 263,466 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 819,311 | 579,420 | 687,694 | 368,516 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 1,481,485 | 996,242 |
Commercial finance | 506,878 | 457,899 |
1,988,363 | 1,454,141 |
Lloyds have debentures, secured by way of fixed and floating charges over all of the property or undertaking of the company. |
18. | DEFERRED TAX |
Group |
£ |
Balance at 1 July 2023 | (15,332 | ) |
Charge to Income Statement during year | 5,597 |
Balance at 30 June 2024 | (9,735 | ) |
. |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | £1 | 216 | 216 |
B Ordinary | £1 | 4 | 4 |
220 | 220 |
The A & B ordinary shares are entitled to voting rights ,dividends and a share of capital on winding up . |
20. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 July 2023 | 3,557,474 | 90 | 3,557,564 |
Profit for the year | 1,606,251 | 1,606,251 |
Dividends | (710,100 | ) | (710,100 | ) |
At 30 June 2024 | 4,453,625 | 90 | 4,453,715 |
Company |
Retained |
earnings |
£ |
At 1 July 2023 | ( |
) |
Profit for the year |
Dividends | ( |
) |
At 30 June 2024 |
21. | OTHER FINANCIAL COMMITMENTS |
Total commitments under operating leases at the year end were as follows :- |
due within one year £242,400 |
due between two and five years £729,600 |
due after 5 years £646,500 |
Cherish Holdings Limited (Registered number: 12278754) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 June 2024 and 30 June 2023: |
2024 | 2023 |
£ | £ |
Mrs W M Watson and P Watson |
Balance outstanding at start of year | (1,308 | ) | 136,877 |
Amounts advanced | 706,755 | 717,855 |
Amounts repaid | (710,100 | ) | (856,040 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (4,653 | ) | (1,308 | ) |
Interest at the official rate has been charged on the average balance outstanding on the directors loan during the year. |
The directors loans are repayable on demand. |
23. | RELATED PARTY DISCLOSURES |
Included in Debtors (amounts due within one year) are the following amounts:- |
Loans to Companies under common control £2,039,452 Advances of £135,703 were made in the year. |
These amounts are interest free and repayable on demand. |
During the year, a total of key management personnel compensation of £ 35,686 was paid. |
24. | POST BALANCE SHEET EVENTS |
The group has brought a further property into use as a children's home . |
25. | ULTIMATE CONTROLLING PARTY |
In the opinion of the directors there is not an ultimate controlling party. |