REGISTERED NUMBER: 13732569 (England and Wales) |
AUREM CARE GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
REGISTERED NUMBER: 13732569 (England and Wales) |
AUREM CARE GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 7 |
Report of the Independent Auditors | 9 |
Consolidated Income Statement | 13 |
Consolidated Other Comprehensive Income | 14 |
Consolidated Balance Sheet | 15 |
Company Balance Sheet | 16 |
Consolidated Statement of Changes in Equity | 17 |
Company Statement of Changes in Equity | 18 |
Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Cash Flow Statement | 20 |
Notes to the Consolidated Financial Statements | 21 |
AUREM CARE GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors, Chartered Tax Advisers |
and Chartered Certified Accountants |
Broad House |
1 The Broadway |
Old Hatfield |
Hertfordshire |
AL9 5BG |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
The principal activity of the group in the period under review was the operation of twelve care homes. |
REVIEW OF BUSINESS |
On 20 January 2022, the group's trading activities commenced when Aurem Care (Bidco) Limited, a 100% sub-subsidiary of Aurem Care Group Limited ("the Company") purchased Aurem Care (Acqco) Limited and its subsidiaries. |
Following this, the size of the group was increased through three further acquisitions being: |
- the purchase of Aurem Care (OP1) Limited by Aurem Care (Midco 2) Limited, a subsidiary of the Company, on 18 January 2023; and |
- the purchase of Aurem Care (Brimington) Limited and Aurem Care (Kilburn) Limited by Aurem Care (Bidco II) Limited, a sub-subsidiary of the Company, on 26 January 2023. |
- the purchase of Aurem Care (Lostock Lodge) and Aurem Care (Hillcrest) Limited by Aurem Care (Bidco III) Limited, on 3 July 2023. |
All of these acquisitions were funded by a mixture of loan notes, bank financing and further share issues by the Company. |
The goodwill on consolidation was £16.83m. |
The consolidated income statement on page 13 reflects the results of the Group since the above acquisitions and shows turnover of £29.55m (2023: £20.03m) and costs of £36.36m (2023: £23.96m), including finance costs of £3.27m and amortisation of goodwill on consolidation of £1.63m, leaving a loss of £6.82m compared witth the loss generated last year of £3.93m. |
The Group balance sheet shows fixed assets of £36.54m, consisting of tangible fixed assets of £22.59m and intangible fixed assets of £13.94m. Current assets were £3.79m (including cash of £1.22m) but with current liabilities of £8.92m, net current liabilities were £5.13m. Long term liabilities and provisions were £40.57m, leaving group net liabilities of £9.17m. |
The Directors believe that the outlook for the Group is strong. The losses sustained in the year, and the net current liabilities at the end of the year, are in line with expectations at this point and the Shareholders are fully supportive of the Directors plan to grow the business. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors consider the following to be the group's principal operational risks in the short term: |
Public sector financial constraints |
In an environment of tighter fiscal policy, the directors are acutely aware of the risks associated with trading primarily with public sector bodies. To date, the Group has not experienced funding issues as a result of the rise in interest rates, but the directors will continue to monitor this position closely. |
Health and safety |
The Group understands the need to provide a safe environment for its staff, residents, their guests or anyone else on its premises. Everyone in the business has accountability for health and safety, and they are given the necessary tools (including training, safety equipment and resources) to operate safely. Compliance is organised and monitored through a dedicated health and safety team across the business. |
Regulatory changes |
The directors pride themselves on providing high-quality care and always aim to respond proactively to, and exceed, any regulatory requirements affecting the Group's operations. Major changes to these regulatory requirements can result in significant cost to the group, but no regulatory changes having a materially adverse effect on the Group's activities are anticipated at this time. |
Inflation and rises in energy prices |
Inflation in the cost of employment continues to run at high levels do to increases in the national minimum wage and increases in employer's national insurance contribution from April 2025. Energy costs continue to rise at rates significantly more than the general rate of inflation. Inflation affecting other goods and services supplied to the Group has reduced from recent highs, however it continues, together with the increasing cost of employment and energy costs, to put significant upward pressure on costs. Inevitably this puts upward pressure on the fees that the Group need to charge to our residents. The directors will continue to assess the impact of inflation on the business regularly. |
Liquidity and cashflow |
The Group continues to invest in its operations and therefore has to monitor its liquidity closely in order to ensure working capital requirements are met in addition to the cost of investment. Cash forecasts are maintained which include a range of possible outcomes, with the results discussed at board level so that any operational or financing requirements are agreed in advance of any large expenditure. |
Occupancy |
An inability to maintain and grow occupancy levels of both private and local authority funded residents is a potential risk to the business. In order to mitigate this risk, the Group has a proactive Sales and Marketing team who work alongside the operational team to monitor and review occupancy levels. |
FUTURE DEVELOPMENTS |
In recent years, the Group has invested significantly in its properties and people, resulting in it offering high quality care and the Group expects to continue this investment in the coming year. The directors expect the commercial performance of the business to continue to improve in the future. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
SECTION 172 (1) STATEMENT |
Each individual director must act in the way he or she considers, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole and, in doing so, the directors have had regard to the matters set out in Section 172 (1) of the Companies Act. |
The directors confirm that, the long-term success of the business has been promoted for the benefit of its members as a whole, by having regard to (amongst others) the following matters: |
- the likely consequences of any decision in the long-term; |
- the interests of the group's employees; |
- the need to foster the group's business relationships with suppliers, customers and others; |
- the impact of the group's operations on the community and the environment; |
- the desirability of the group maintaining a reputation for high standards of business conduct; and |
- the need to act fairly as between members of the group. |
With regard to maintaining high standards of business conduct, the group has a strong framework of key policies and procedures that all employees and contractors are expected to maintain and adhere to. These policies include a modern slavery policy, supported by yearly training for all employees, alongside reviews of the group's supply chain. The group has retained an external party to receive all whistleblowing notifications and has a robust whistleblowing policy which all staff have access to, alongside being provided with details of the group's whistleblowing phone line at all its locations. · |
The group takes its data protection responsibilities seriously and provides privacy notices to all staff and the individuals it supports (including in easy-read format, where required). The group has data protection and confidentiality, information security and records management policies in place, supported by annual training. Consent is also obtained and recorded, as needed, when working with personal and sensitive data. As an additional tool, the group has a Caldicott Guardian who oversees and embeds adherence to the Eight Caldicott Principles of good information sharing across the organisation. |
Staff are expected to adhere to a code of conduct which aligns with the group's values and the group has a robust grievance policy and procedure for employees. To assist with corporate decision making, the directors maintain a corporate risk register which is updated by the Senior Leadership Team on a quarterly and ad-hoc basis as new items are identified or risk mitigation is changed. |
The directors are conscious that the group's operations affect a range of stakeholders, and they take care to consider and engage, to the greatest extent possible, all affected stakeholders in their decision making. |
The following matrix sets out the group's various stakeholders and the ways in which the group engages with those stakeholders to influence decision making: |
Stakeholder group | Key engagement methods | Stakeholder expectations | Long-term value creation |
Clients: Individuals we support and families and friends. |
Client relationships managed at multiple levels, from individual home managers and principals through to the CEO. |
Transparent and collaborative relationship to safely achieve defined outcomes.Support with practical, emotional and health-related matters. |
The people we support achieve positive outcomes and lead a meaningful and happy life. |
Regulators | Discussion of any relevant matters with regulators in a timely and open fashion. |
Full, accurate and timely disclosure of information. |
Maximised quality within our services, to the benefit and reassurance of the people we support and their families. |
Engagement in improvement plans agreed with inspectors. |
Adherence to regulatory standards. |
Improved relationships with regulators and our reputation within the industry. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
Regular circulation of regulatory requirements, including updates, to key affected staff. |
Prompt resolution of identified issues. |
Growth opportunities as a result of good relationships with regulators and enhanced reputation. |
Systems developed to better | enable the group to track the quality and compliance levels of our services. |
Stakeholder group | Key engagement methods | Stakeholder expectations | Long-term value creation |
Employees | Regular employee surveys. | All employees treated fairly and equally. |
Improved recruitment, retention and quality. |
Introduction of Blink app available to all employees allowing real-time communications and feedback. |
Employee views taken into consideration when decisions made that affect them. |
Promotion of an innovative and efficient environment through teamwork and communication. |
Quarterly newsletters regarding new developments and key messages. |
Meaningful development and career progression opportunities. |
Creating an attractive workplace for culture and benefits. |
Quarterly manager conference. |
Fair remuneration. |
Whistleblowing facilities. |
Suppliers | Dedicated accounts payable team, engaging with suppliers daily. |
Open dialogue. | Higher quality of service delivery due to good relationships with quality suppliers. |
Specialist support teams engage directly with suppliers in their respective areas. |
Prompt payment upon invoices falling due. |
Improved payment terms and credit limits. |
Shareholders | Monthly reporting. | Meeting agreed financial and operational targets. |
Shared understanding of and support for long-term business goals. |
Regular board meetings with investor representation. |
Transparent, reliable and timely information. |
Support for future growth activities. |
Banking partners | Monthly and quarterly reporting. |
Meeting agreed financial targets. |
Ensuring a financial platform to support growth, developments or acquisitions. |
Open dialogue. | Transparent, reliable and timely. |
Local communities | Community events. | Hiring local people. | Sustainable employment base. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
Meaningful opportunities to participate in the community to the benefit of all. |
Positive outcomes for people we support. |
Considerate, neighbourly behaviour. |
More support with growth activities in area. |
Environment | Efforts to minimise wastage eg of food, water and power. |
Minimal power usage. | Protection of resources. |
Adopting remote working practices wherever possible, outside frontline services. Paperless working to the greatest possible extent. |
Reducing travel as far as possible, and using efficient methods for travel. Only consuming what we need. |
Sustainable cloud-based methods of working available securely in any location, providing real-time information so employees can focus on care provision. |
Public | Maintaining clear corporate governance with effective controls in place to ensure business is conducted to highethical standards. |
Stakeholders are treated fairly and the business acts to promote high standards of business efficacy. |
Improved business reputation. Higher levels of staff and customer retention. |
ON BEHALF OF THE BOARD: |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a holding company. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
STREAMLINED ENERGY AND CARBON REPORTING |
No Streamlined Energy and Carbon Report ('SECR') is provided, as the annual energy consumption of Aurem Care Group Limited itself did not exceed 40,000 kWh and none of its subsidiaries is individually required to provide an SECR. |
INDEMNITY PROVISION FOR DIRECTORS |
No qualifying third party indemnity provision for the benefit of one or more directors was in force at any time during the financial period or to the date of approval of this report. |
EMPLOYEE INFORMATION |
The directors recognise the importance of human resources. Employee views are taken into consideration when decisions are made that affect them, through real-time communication and feedback . There is meaningful development and career progression opportunities within the group, creating an attractive workplace. Employees are treated fairly and equally, as monitored by regular employee surveys. |
. |
DISABLED EMPLOYEES |
The policies the company undertakes for disabled employees are as follows: |
- provide employees systematically with information affecting them as employees, |
- consult them regularly on decisions likely to effect their interests, |
- achieve a common awareness by all employees of the financial and economic factors affecting the company's performance |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
Opinion |
We have audited the financial statements of Aurem Care Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 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 31 March 2024 and of the group's loss 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 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
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 Directors' Responsibilities Statement set out on page eight, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
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: |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud and the detection of fraud. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: |
- obtained an understanding of the nature of the sector, including the legal and regulatory framework, in which the entity operates and how the entity is complying with the legal and regulatory framework; |
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; |
- discussed matters concerning non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
As a result of these procedures we consider that the most significant laws and regulations which have a direct impact on the financial statements are compliance with Financial Reporting Framework FRS 102, Companies Act 2006, Corporation Tax Act 2010, General Data Protection Regulations and applicable Employment Legislation. In addition, we considered other laws and regulations which do not have a direct effect on the financial statements but compliance with which may be fundamental to the entity's ability to operate or to avoid a material penalty. The key laws and regulations that we considered in this context included the Health and Safety at Work etc Act 1974. |
Our procedures to respond to risks identified included the following: |
- reviewing financial statement disclosures; |
- enquiring of management, the directors, and external legal; advisors concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate material misstatement due to fraud; |
- testing the appropriateness of journal entries and assessing the assumptions reflected in accounting estimates for indications of potential bias; |
- addressing the risk of fraud in revenue recognition by performing substantive testing on the revenue. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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, 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 further 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 may involve intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
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 |
Statutory Auditors, Chartered Tax Advisers |
and Chartered Certified Accountants |
Broad House |
1 The Broadway |
Old Hatfield |
Hertfordshire |
AL9 5BG |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
Notes | £ | £ |
TURNOVER | 29,546,104 | 20,025,234 |
Cost of sales | 23,127,356 | 16,235,480 |
GROSS PROFIT | 6,418,748 | 3,789,754 |
Administrative expenses | 9,969,018 | 6,231,505 |
(3,550,270 | ) | (2,441,751 | ) |
Other operating income | - | 18,624 |
OPERATING LOSS | 4 | (3,550,270 | ) | (2,423,127 | ) |
Loan and rent release | 5 | - | 983,026 |
(3,550,270 | ) | (1,440,101 | ) |
Interest receivable and similar income | 1,190 | - |
(3,549,080 | ) | (1,440,101 | ) |
Interest payable and similar expenses | 6 | 3,266,860 | 2,491,889 |
LOSS BEFORE TAXATION | (6,815,940 | ) | (3,931,990 | ) |
Tax on loss | 7 | 356,196 | - |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (7,172,136 | ) | (3,931,990 | ) |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2024 |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
Notes | £ | £ |
LOSS FOR THE YEAR | (7,172,136 | ) | (3,931,990 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(7,172,136 |
) |
(3,931,990 |
) |
Total comprehensive income attributable to: |
Owners of the parent | (7,172,136 | ) | (3,931,990 | ) |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 13,942,005 | 13,323,887 |
Tangible assets | 10 | 22,593,716 | 20,123,267 |
Investments | 11 | - | - |
36,535,721 | 33,447,154 |
CURRENT ASSETS |
Debtors | 12 | 2,571,276 | 2,794,507 |
Cash at bank and in hand | 1,217,158 | 1,146,879 |
3,788,434 | 3,941,386 |
CREDITORS |
Amounts falling due within one year | 13 | 8,921,751 | 6,772,417 |
NET CURRENT LIABILITIES | (5,133,317 | ) | (2,831,031 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
31,402,404 |
30,616,123 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(39,857,077 |
) |
(32,884,950 |
) |
PROVISIONS FOR LIABILITIES | 18 | (715,671 | ) | (359,475 | ) |
NET LIABILITIES | (9,170,344 | ) | (2,628,302 | ) |
CAPITAL AND RESERVES |
Called up share capital | 19 | 1,933,782 | 1,303,688 |
Retained earnings | 20 | (11,104,126 | ) | (3,931,990 | ) |
SHAREHOLDERS' FUNDS | (9,170,344 | ) | (2,628,302 | ) |
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: |
K J G Hillen - Director |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
COMPANY BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (1,005,427 | ) | (688,048 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | 1,303,688 | - | 1,303,688 |
Total comprehensive income | - | (3,931,990 | ) | (3,931,990 | ) |
Balance at 31 March 2023 | 1,303,688 | (3,931,990 | ) | (2,628,302 | ) |
Changes in equity |
Issue of share capital | 630,094 | - | 630,094 |
Total comprehensive income | - | (7,172,136 | ) | (7,172,136 | ) |
Balance at 31 March 2024 | 1,933,782 | (11,104,126 | ) | (9,170,344 | ) |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2023 | ( |
) |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2024 | ( |
) |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 317,546 | 4,812,483 |
Interest paid | (2,921,690 | ) | (2,076,005 | ) |
Interest element of finance lease payments paid |
(345,170 |
) |
(415,884 |
) |
Net cash from operating activities | (2,949,314 | ) | 2,320,594 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (2,252,110 | ) | (14,582,657 | ) |
Purchase of tangible fixed assets | (3,349,414 | ) | (21,290,298 | ) |
Sale of tangible fixed assets | - | 40 |
Interest received | 1,190 | - |
Net cash from investing activities | (5,600,334 | ) | (35,872,915 | ) |
Cash flows from financing activities |
New loans in year | 8,534,184 | 23,524,868 |
Loan repayments in year | (500,003 | ) | - |
New finance leases | - | 9,870,644 |
Capital repayments in year | (44,348 | ) | - |
Share issue | 630,094 | 1,303,688 |
Net cash from financing activities | 8,619,927 | 34,699,200 |
Increase in cash and cash equivalents | 70,279 | 1,146,879 |
Cash and cash equivalents at beginning of year |
2 |
1,146,879 |
- |
Cash and cash equivalents at end of year | 2 | 1,217,158 | 1,146,879 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
£ | £ |
Loss before taxation | (6,815,940 | ) | (3,931,990 | ) |
Depreciation charges | 2,512,956 | 2,425,801 |
Profit on disposal of fixed assets | - | (40 | ) |
Other items | 7 | - |
Finance costs | 3,266,860 | 2,491,889 |
Finance income | (1,190 | ) | - |
(1,037,307 | ) | 985,660 |
Decrease/(increase) in trade and other debtors | 213,409 | (2,794,507 | ) |
Increase in trade and other creditors | 1,141,444 | 6,621,330 |
Cash generated from operations | 317,546 | 4,812,483 |
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 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 1,217,158 | 1,146,879 |
Period ended 31 March 2023 |
31.3.23 | 9.11.21 |
£ | £ |
Cash and cash equivalents | 1,146,879 | - |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,146,879 | 70,279 | 1,217,158 |
1,146,879 | 70,279 | 1,217,158 |
Debt |
Finance leases | (9,870,644 | ) | 44,348 | (9,826,296 | ) |
Debts falling due within 1 year | (500,004 | ) | - | (500,004 | ) |
Debts falling due after 1 year | (23,024,864 | ) | (7,012,141 | ) | (30,037,005 | ) |
(33,395,512 | ) | (6,967,793 | ) | (40,363,305 | ) |
Total | (32,248,633 | ) | (6,897,514 | ) | (39,146,147 | ) |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
Aurem Care Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 ('FRS 102'), the Financial Reporting Standard applicable in the UK and the Republic of Ireland, and the Companies Act 2006. |
The financial statements are prepared in Pounds 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. The principal accounting policies adopted are set out below. |
Going concern |
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
In preparing these financial statements, advantage has been taken of the following disclosure exemptions available in FRS 102: |
- related party transactions and balances with group members are not disclosed. Transactions between group entities that have been eliminated on consolidation are not included in the consolidated financial statements. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
The consolidated financial statements present the results of the company and its subsidiaries ('the group') as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases. |
Significant judgements and estimates |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. These estimates and judgements are made in the light of historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual results may differ from those anticipated. |
In the preparation of these financial statements, the group's critical accounting judgements and estimates are in respect of impairment of assets, depreciation and the provision for doubtful debts. Details of these judgements and estimates are described in the relevant accounting policy, the notes to the financial statements and below: |
- Impairment of fixed assets: factors taken into consideration include the economic viability and expected future financial performance of the asset and, where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. |
- Depreciation of tangible fixed assets: these are depreciated over their useful lives, taking into account residual values. The useful lives and residual values are assessed annually and depend on a number of factors. As regards useful lives, considerations include technological innovation and maintenance programmes, while residual value assessments review matters such as future market conditions, the remaining life of the asset and projected disposal values. |
- Doubtful debts: a provision is made when the directors consider that collection of the full amount due is no longer probable. Their assessment is based on the age of the debt, the likely success of any action taken to recover it and the costs of such action. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The group operates 12 care homes for up to 500 older residents who require residential, nursing care or who are living with dementia. Turnover represents fees in respect of these residents and is recognised for each period of occupancy within the accounting period. |
Goodwill |
Goodwill represents the difference between the cost of a business combination and the acquirer's interest in the fair value of the group's share of the identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis and charged to the Consolidated Profit and Loss Account over its useful economic life of ten years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Development costs are being amortised evenly over their estimated useful like of 10 years. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Impairment of assets |
At the end of each reporting period, the directors review the carrying amounts of the company's tangible assets to determine whether there is any indication that those assets have suffered impairment. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment. Where it is not possible to estimate the recoverable amount of an individual asset, the directors estimate the recoverable amount of the cash-generating unit to which the asset belongs. |
The 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. |
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 and an impairment loss is recognised immediately in the Consolidated Profit and Loss Account. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the lower of: |
a. the revised estimate of its recoverable amount; and |
b. 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 the Consolidated Profit and Loss Account. |
Valuation of investments |
Investments in subsidiaries are measured at cost less accumulated impairment. |
Financial instruments |
The entity has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the entity's balance sheet when the entity becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with 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 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. |
Basic financial liabilities 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Equity |
Equity comprises the following: |
- share capital, which represents the nominal value of equity shares; and |
- profit and loss reserves, which represent retained profits. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
An equity share is a contract that evidences a residual interest in the assets of the company after deducting all its liabilities. Equity shares issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity shares are recognised as liabilities once they are no longer at the discretion of the company. |
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 |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the group. Obligations under such agreements are included in creditors, net of the finance charge, allocated to future periods. The finance element of the rental payment is charged to the Consolidated Profit and Loss Account so as to produce a constant rate of charge on the net obligation outstanding in each period. |
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. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible into known amounts of cash with an insignificant risk of change in value. |
Finance costs |
Finance costs are charged to the Consolidated Profit and Loss Account over the term of the debt, using the effective interest method, so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Operating leases |
Rentals paid under operating leases are charged to the Consolidated Profit and Loss Account on a straight line basis over the lease term. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | EMPLOYEES AND DIRECTORS |
Period |
Year Ended | 9.11.21 |
31.3.24 | to 31.3.23 |
£ | £ |
Wages and salaries | 18,985,990 | 13,299,565 |
Social security costs | 1,459,396 | 981,225 |
Other pension costs | 294,681 | 194,665 |
20,740,067 | 14,475,455 |
The average number of employees during the period was as follows: |
Period |
Year Ended | 9.11.21 |
31.3.24 | to 31.3.23 |
Management | 27 | 13 |
Nursing and care | 523 | 307 |
Ancillary | 145 | 87 |
Administration | 30 | 18 |
724 | 425 |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
£ | £ |
Directors' remuneration | - | - |
4. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
£ | £ |
Hire of plant and machinery | 72,603 | 16,769 |
Other operating leases | 2,824,083 | 1,155,580 |
Depreciation - owned assets | 713,753 | 923,777 |
Depreciation - assets on finance leases | 165,212 | 243,254 |
Profit on disposal of fixed assets | - | (40 | ) |
Goodwill amortisation | 1,633,401 | 1,258,062 |
Development costs amortisation | 591 | 708 |
Auditors' remuneration | 20,400 | 24,000 |
Auditors' remuneration for non audit work | 28,800 | 12,000 |
The auditing of accounts of any associate of the company | 20,400 | 54,000 |
Taxation compliance services | - | 6,000 |
Other non- audit services | 45,600 | 24,000 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
5. | EXCEPTIONAL ITEMS |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
£ | £ |
Loan and rent release | - | 983,026 |
Last year the exceptional item represents the Group's share of loan and rent releases from Aurem Care (Brimington) Limited and Aurem Care (Kilburn) Limited which have been adjusted on consolidation. |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
£ | £ |
Bank loan interest | 1,153,861 | 977,238 |
Other interest | 1,757,309 | 1,094,915 |
Late payment interest | 10,520 | 2,010 |
Loan interest | - | 1,842 |
Leasing | 345,170 | 415,884 |
3,266,860 | 2,491,889 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
£ | £ |
Deferred tax | 356,196 | - |
Tax on loss | 356,196 | - |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
PERIOD |
9.11.21 |
YEAR ENDED | TO |
31.3.24 | 31.3.23 |
£ | £ |
Loss before tax | (6,815,940 | ) | (3,931,990 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
(1,703,985 |
) |
(747,078 |
) |
Effects of: |
Expenses not deductible for tax purposes | 4,749 | (161,460 | ) |
Capital allowances in excess of depreciation | (313,232 | ) | (136,187 | ) |
Tax liability on pre acquisition profits | - | (121,358 | ) |
Disallowed charge for goodwill | 408,350 | 239,032 |
Utilisation of management expenses | - | (6,984 | ) |
Utilisation of group losses brought forward | - | (108,653 | ) |
Unused losses carried forward | 1,603,970 | 1,042,688 |
Utilisation of losses brought forward | 148 | - |
Deferred tax | 356,196 | - |
Total tax charge | 356,196 | - |
8. | 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. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 14,573,646 | 9,011 | 14,582,657 |
Additions | 2,252,110 | - | 2,252,110 |
At 31 March 2024 | 16,825,756 | 9,011 | 16,834,767 |
AMORTISATION |
At 1 April 2023 | 1,258,062 | 708 | 1,258,770 |
Amortisation for year | 1,633,401 | 591 | 1,633,992 |
At 31 March 2024 | 2,891,463 | 1,299 | 2,892,762 |
NET BOOK VALUE |
At 31 March 2024 | 13,934,293 | 7,712 | 13,942,005 |
At 31 March 2023 | 13,315,584 | 8,303 | 13,323,887 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improveme |
Freehold | Long | to |
property | leasehold | property |
£ | £ | £ |
COST |
At 1 April 2023 | - | 18,251,134 | 998,568 |
Additions | 985,831 | 350,887 | 915,228 |
At 31 March 2024 | 985,831 | 18,602,021 | 1,913,796 |
DEPRECIATION |
At 1 April 2023 | - | 235,328 | 24,226 |
Charge for year | 23,212 | 159,120 | 195,958 |
At 31 March 2024 | 23,212 | 394,448 | 220,184 |
NET BOOK VALUE |
At 31 March 2024 | 962,619 | 18,207,573 | 1,693,612 |
At 31 March 2023 | - | 18,015,806 | 974,342 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 | 565,842 | 1,300,285 | 174,469 | 21,290,298 |
Additions | 401,241 | 610,267 | 85,960 | 3,349,414 |
At 31 March 2024 | 967,083 | 1,910,552 | 260,429 | 24,639,712 |
DEPRECIATION |
At 1 April 2023 | 124,187 | 771,565 | 11,725 | 1,167,031 |
Charge for year | 158,139 | 275,751 | 66,785 | 878,965 |
At 31 March 2024 | 282,326 | 1,047,316 | 78,510 | 2,045,996 |
NET BOOK VALUE |
At 31 March 2024 | 684,757 | 863,236 | 181,919 | 22,593,716 |
At 31 March 2023 | 441,655 | 528,720 | 162,744 | 20,123,267 |
Fixed assets, included in the above, which are held under finance leases are as follows: |
Long | Plant and |
leasehold | machinery | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 18,251,134 | 31,517 | 18,282,651 |
Additions | 350,887 | - | 350,887 |
At 31 March 2024 | 18,602,021 | 31,517 | 18,633,538 |
DEPRECIATION |
At 1 April 2023 | 235,328 | 7,926 | 243,254 |
Charge for year | 159,120 | 6,092 | 165,212 |
At 31 March 2024 | 394,448 | 14,018 | 408,466 |
NET BOOK VALUE |
At 31 March 2024 | 18,207,573 | 17,499 | 18,225,072 |
At 31 March 2023 | 18,015,806 | 23,591 | 18,039,397 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Computer |
equipment |
£ |
COST |
Additions |
At 31 March 2024 |
DEPRECIATION |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
The following are wholly-owned subsidiary undertakings of Aurem Care Group Limited: |
Name | Class of Shares | Principal Activity |
Aurem Care (Bidco) Limited | Ordinary | Holding company |
Aurem Care (Acqco) Limited | Ordinary | Holding company |
Aurem Care (Westbank) Limited | Ordinary | Care home operator |
Aurem Care (Buxton Lodge) Limited | Ordinary | Care home operator |
Aurem Care (The Oaks) Limited | Ordinary | Care home operator |
Aurem Care (Kenwood) Limited | Ordinary | Care home operator |
Aurem Care (Aaron House) Limited | Ordinary | Care home operator |
Aurem Care (South Haven Lodge) Limited | Ordinary | Care home operator |
New Century Care Limited |
Ordinary |
Administrative service company |
New Century Finance & Leasing Limited |
Ordinary |
Administrative service company |
Aurem Care (Midco) Limited | Ordinary | Holding company |
Aurem Care (Midco II) Limited | Ordinary | Holding company |
Aurem Care (Bidco II) Limited | Ordinary | Holding company |
Aurem Care (Brimington) Limited | Ordinary | Care home operator |
Aurem Care (Kilburn) Limited | Ordinary | Care home operator |
Aurem Care Shared Services Limited | Ordinary | Holding company |
Aurem Care (Midco 2) Limited | Ordinary | Holding company |
Aurem Care (OP1) Limited | Ordinary | Holding company |
Aurem Care (Alium) Limited | Ordinary | Holding company |
Kettlewell House And Operations Limited | Ordinary | Care home operator |
Hailsham House And Operations Limited | Ordinary | Care home operator |
Aurem Care (Midco III) Limited | Ordinary | Holding company |
Aurem Care (Bidco III) Limited | Ordinary | Holding company |
Aurem Care (Lostock Lodge) Limited | Ordinary | Care home operator |
Aurem Care (Hillcrest) Limited | Ordinary | Care home operator |
The above companies have their registered office at 5th Floor, 167-169 Great Portland Street, London,England, W1W 5PF. |
The following subsidiary entities are exempt from audit by virtue of s479A of Companies Act 2006: |
Aurme Care (Midco) Limited |
Aurem Care (Midco II) Limited |
Aurem Care (Bidco II) Limited |
Aurem Care (Brimington) Limited |
Aurem Care (Kilburn) Limited |
Aurem Care Shared Services Limited |
Aurem Care (Midco 2) Limited |
Aurem Care (OP1) Limited |
Aurem Care (Alium) Limited |
Kettlewell House And Operations Limited |
Aurem Care (Midco III) Limited |
Aurem Care (Bidco III) Limited |
Aurem Care (Lostock Lodge) Limited |
Aurem Care (Hillcrest) Limited |
New Century Care Limited |
New Century Finance & Leasing Limited |
Aurem Care (Acqco) Limited |
Aurem Care (Kenwood) Limited |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
Aurem Care (South Haven Lodge) Limited |
12. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 1,735,284 | 1,741,453 |
Other debtors | 52,489 | 73,210 |
Prepayments and accrued income | 783,503 | 979,844 |
2,571,276 | 2,794,507 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 2,571,276 | 2,794,507 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 500,004 | 500,004 |
Finance leases (see note 16) | 6,224 | 10,558 |
Trade creditors | 1,635,436 | 1,718,872 |
Tax | 97,909 | - |
Social security and other taxes | 1,105,653 | 558,234 |
Other creditors | 1,873,887 | 1,556,029 |
Accruals and deferred income | 3,702,638 | 2,428,720 |
8,921,751 | 6,772,417 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 15) | 10,791,654 | 11,291,657 |
Other loans (see note 15) | 19,245,351 | 11,733,207 |
Finance leases (see note 16) | 9,820,072 | 9,860,086 |
Amounts owed to group undertakings | - | - | 2,308,257 | 1,003,118 |
39,857,077 | 32,884,950 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 500,004 | 500,004 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 500,004 | 500,004 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,500,012 | 1,500,012 |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Other loans more than 5 years |
- secured | 13,121,857 | 8,115,187 |
Other loans more than 5 years |
- unsecured | 6,123,494 | 3,618,020 |
19,245,351 | 11,733,207 |
Repayable by instalments |
Bank loans more than 5 years | 8,791,638 | 9,291,641 |
The bank loan is repayable by May 2034 and interest is charged at 6% over the SONIA (previously LIBOR). |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Finance leases |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year | 350,952 | 355,494 |
Between one and five years | 1,671,231 | 1,671,381 |
In more than five years | 48,587,022 | 48,936,963 |
50,609,205 | 50,963,838 |
Finance charges repayable: |
Within one year | 344,728 | 344,936 |
Between one and five years | 1,658,219 | 1,658,550 |
In more than five years | 38,779,962 | 39,089,708 |
40,782,909 | 41,093,194 |
Net obligations repayable: |
Within one year | 6,224 | 10,558 |
Between one and five years | 13,012 | 12,831 |
In more than five years | 9,807,060 | 9,847,255 |
9,826,296 | 9,870,644 |
In 2019, six subsidiaries each entered into a sale and leaseback arrangement in respect of property recognised in these accounts. As a result, finance leases over 150 years commenced on 24 May 2019. The terms of the leases include an option to repurchase the properties for £1 each at the end of the leases. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Other loans | 13,121,857 | 8,115,187 |
Bank loans | 11,291,658 | 11,791,661 |
Finance leases | 9,826,295 | 9,870,644 |
34,239,810 | 29,777,492 |
The bank loan is secured by way of a fixed and floating charge over the assets of the group. |
The finance leases are secured on the assets to which they relate. |
Other loans include loan notes of £9,386,887 which are secured by a fixed charge over the entire issued share capital of Aurem Care (Bidco) Limited. |
Other loans include loan notes of £2,107,913 which are secured by a fixed and floating charge over all the property and undertakings of Aurem Care (Midco III) Limited. |
Other loans include loan notes of £1,121,224 which are secured over the freehold of the property of Aurem Care (Hillcrest) Limited. |
18. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 715,671 | 359,475 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 359,475 |
Excess of capital allowances |
over depreciation | 356,196 |
Balance at 31 March 2024 | 715,671 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | £1 | 1,933,781 | 1,303,687 |
B Ordinary | £1 | 1 | 1 |
1,933,782 | 1,303,688 |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2023 | (3,931,990 | ) |
Deficit for the year | (7,172,136 | ) |
At 31 March 2024 | (11,104,126 | ) |
Company |
Retained |
earnings |
£ |
At 1 April 2023 | ( |
) |
Deficit for the year | ( |
) |
At 31 March 2024 | ( |
) |
The following share were allotted and fully paid for cash at par during the year: |
On 3 July 2023, a further £217,594 A Ordinary shares of £1.00 each were allotted. |
On 14 September 2023, a further £35,000 A Ordinary shares of £1.00 each were allotted. |
On 30 October 2023, a further £60,000 A Ordinary shares of £1.00 each were allotted. |
On 28 November 2023, a further £150,000 A Ordinary shares of £1.00 each were allotted. |
On 5 February 2024, a further £47,500 A Ordinary shares of £1.00 each were allotted. |
The A Ordinary and B Ordinary shares rank equally in all respects except that the B Ordinary shares shall not be entitles to dividend, return of capital on winding-up or voting rights. |
21. | PENSION COMMITMENTS |
The group contributes to pension schemes for the benefit of its employees. These schemes operate on the money purchase principle, which ensures that their liabilities cannot exceed their assets. The assets of the schemes are held in independent funds. The pension charge represents contributions payable for the year by the group and amounts to £294,681 (2023: £194,665). Pension contributions of £70,831 (2023: £118,832) were owed at the balance sheet date. |
22. | PARENT COMPANIES |
The immediate parent of the Company is Gresham House (Nominees) Limited, a company incorporated in England, whose registered office is at 5 New Street Square, London, EC4A 3TW. Gresham House (Nominees) Limited owns 78% of the Company's share capital, whilst 22% of the Company's share capital is owned by SSL Care Limited, a company registered in England, whose registered office is at 5th Floor, 167-169 Great Portland Street, London, W1W 5PF. |
The Company's ultimate controlling party is Gresham House plc, whose registered office is at 5 New Street Square, London, EC4A 3RW. The consolidated financial statements of Gresham House plc are available from Companies House, Crown Way, Cardiff CF14 3UZ. |
AUREM CARE GROUP LIMITED (REGISTERED NUMBER: 13732569) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
23. | RELATED PARTY DISCLOSURES |
During the year: |
- GHC Midco Limited, a subsidiary of the Company, issued loan notes of £9.39m to Gresham House (Nominees) Limited, the most proximate parent company of the Company, and SSL Care Limited. Interest of £2,033,848 (at a rate of 10% per annum) has been accrued on these loan notes; and |
- GHC Midco 2 Limited, a subsidiary of the Company, issued loan notes of £5.61m to Gresham House (Nominees) Limited, the most proximate parent company of the Company, and SSL Care Limited. Interest of £514,674 (at a rate of 10% per annum) has been accrued on these loan notes; and |
- GHC Bidco II Limited, a sub-subsidiary of the Company, issued loan notes of £450,000 to Gresham House (Nominees) Limited, the most proximate parent company of the Company, and SSL Care Limited. Interest of £55,833 (at a rate of 10% per annum) has been accrued on these loan notes. |
- Aurem Care (Hillcrest) Limited, a sub-subsidiary of the Company, issued loan notes of £1,121,224 to Gresham House (Nominees) Limited, the most proximate parent company of the Company, and SSL Care Limited. Interest of £85,969 (at a rate of 10% per annum) has been accrued on these loan notes. |
All other transactions with related parties outside of the group are considered to be at arm's length. |