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Registration number: 04321969

Prepared for the registrar

Key Healthcare (Operations) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2024

 

Key Healthcare (Operations) Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 9

 

Key Healthcare (Operations) Limited

Company Information

Director

R D Keyes

Company secretary

E J Keyes

Registered office

25 Market Place
Whetherby
England
LS22 6LQ

Bankers

HSBC UK Bank plc
PO Box 105
33 Park Row
Leeds
LS1 1LD

 

Key Healthcare (Operations) Limited

(Registration number: 04321969)
Balance Sheet as at 31 March 2024

Note

31 March 2024
£

31 March 2023
£

Fixed assets

 

Tangible assets

4

3,239,472

3,026,378

Current assets

 

Stocks

6,435

6,435

Debtors

5

1,401,483

1,332,378

Cash at bank and in hand

 

1,667

13,888

 

1,409,585

1,352,701

Creditors: Amounts falling due within one year

6

(8,172,156)

(7,169,162)

Net current liabilities

 

(6,762,571)

(5,816,461)

Total assets less current liabilities

 

(3,523,099)

(2,790,083)

Creditors: Amounts falling due after more than one year

6

(49,510)

-

Deferred tax liabilities

7

-

(146,168)

Net liabilities

 

(3,572,609)

(2,936,251)

Capital and reserves

 

Called up share capital

1

1

Profit and loss account

(3,572,610)

(2,936,252)

Shareholders' deficit

 

(3,572,609)

(2,936,251)

For the financial year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 28 March 2025
 


R D Keyes
Director

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
25 Market Place
Whetherby
England
LS22 6LQ

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

The company sold one of its care homes following the year end, and as at the date of sign off of these financial statements was in the process of transferring the other care home out of the company. As part of the reorganisation, the company is expecting to agree an arrangement with its bankers to forgive the residual bank loan owed. The accounts have therefore not been prepared on a going concern basis. No adjustments have been made as a result of the change in basis.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

These financial statements do not contain any significant judgements or estimation uncertainty.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover represents the amounts receivable during the year for the provision of care services. Where the amount received relates to a period which covers the balance sheet date, that amount is apportioned over the period to which it relates.

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets is stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

Nil

Furniture, fittings and equipment

15% straight line

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due.

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.


 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

 

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was as follows:

Year ended 31 March 2024
 No.

1 October 2022 to 31 March 2023
 No.

Average number of employees

158

171

 

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost

At 1 April 2023

2,809,117

1,400,525

4,209,642

Additions

313,798

61,888

375,686

At 31 March 2024

3,122,915

1,462,413

4,585,328

Depreciation

At 1 April 2023

-

1,183,264

1,183,264

Charge for the period

-

53,520

53,520

Impairment

109,072

-

109,072

At 31 March 2024

109,072

1,236,784

1,345,856

Carrying amount

At 31 March 2024

3,013,843

225,629

3,239,472

At 31 March 2023

2,809,117

217,261

3,026,378

Included within the net book value of land and buildings above is £3,013,843 (2023 - £2,809,117) in respect of freehold land and buildings.
 

 

5

Debtors

31 March 2024
£

31 March 2023
£

Trade debtors

151,663

-

Receivables from related parties

40,036

300,794

Prepayments

130,212

29,052

Other debtors

1,079,572

1,002,532

1,401,483

1,332,378

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

 

6

Creditors

Note

31 March 2024
£

31 March 2023
£

Due within one year

 

Loans and borrowings

8

6,819,499

5,902,794

Trade creditors

 

371,981

306,966

Taxation and social security

 

494,451

312,646

Accruals and deferred income

 

72,790

344,399

Other creditors

 

413,435

302,357

 

8,172,156

7,169,162

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

8

49,510

-

 

7

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Fixed asset timing differences

-

202,176

Losses and other deduction

170,764

-

Short term timing differences

31,412

-

202,176

202,176

2023

Asset
£

Liability
£

Fixed asset timing differences

-

182,759

Losses and other deduction

33,315

-

Short term timing differences

3,276

-

36,591

182,759

 

8

Loans and borrowings

Current loans and borrowings

31 March 2024
£

31 March 2023
£

Bank borrowings

5,680,632

5,574,098

Bank overdrafts

1,105,867

328,696

Hire purchase liability

33,000

-

6,819,499

5,902,794

The bank loans are secured and wholly repayable within 5 years.

The bank loans are classified as due within one year following a breach of financial covenants.

 

Key Healthcare (Operations) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Non-current loans and borrowings

2024
£

2023
£

Hire purchase liability

49,510

-

 

9

Contingent liabilities

The company has entered into a cross guarantee arrangement (with respect of borrowings from the same bank) with Key Healthcare (St. Helens) Limited, a company under common control. The amount guaranteed is £2,293,859 (2023 - £1,868,173).

 

10

Related party transactions

At 31 March 2024, the company was owed £657,629 (2023 - £680,289) by director shareholder R Keyes. The maximum amount overdrawn in the year was £657,629 (2023 - £680,289). No interest was charged during the year and the loan has no fixed repayment terms.

 

11

Parent and ultimate parent undertaking

The ultimate controlling party is R D Keyes, the director of the company.

 

12

Non adjusting events after the financial period

Following the year end, the company sold one of its freehold properties for its book value of £1.2 million.

 

13

Disclosure under Section 444(5B) CA 2006

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. These accounts are unaudited.