REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 30 June 2024 |
for |
WEST BANK RESIDENTIAL HOME LIMITED |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 30 June 2024 |
for |
WEST BANK RESIDENTIAL HOME LIMITED |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Contents of the Financial Statements |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 8 |
Income Statement | 12 |
Other Comprehensive Income | 13 |
Balance Sheet | 14 |
Statement of Changes in Equity | 15 |
Notes to the Financial Statements | 16 |
WEST BANK RESIDENTIAL HOME LIMITED |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Aruna House |
2 Kings Road |
Haslemere |
Surrey |
GU27 2QA |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
West Bank Residential Home Ltd operates a registered care home providing residential care services to elderly residents with varying levels of dependency. The home focuses on delivering high-quality person-centred care in a homely, safe, and inclusive environment. |
The financial year to 30 June 2024 was one of consolidation and transition. Turnover increased to £5.84 million (2023: £5.43 million), reflecting stable occupancy levels and appropriate fee uplifts from local authority and private placements. The operating result remained consistent with expectations, supported by careful cost control and a continued focus on staffing efficiency, compliance, and resident satisfaction. |
A significant development during the year was the disposal of the Dunmore property, which had been fully impaired and reclassified in the prior year. The transaction was completed with appropriate oversight and is fully disclosed within these financial statements. |
The company remains part of a wider group of care homes under common control and benefits from shared administrative and operational resources. Intercompany balances arising from historical group support arrangements were eliminated from the company’s reserves during the year, resulting in a cleaner balance sheet position. |
The company continues to invest in staff training, systems, and infrastructure to maintain regulatory compliance and enhance the quality of life for residents. Looking forward, the directors aim to sustain stable performance while responding to inflationary pressures, recruitment challenges, and the evolving needs of service users. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Given the size and nature of the company, the financial risks are not complex in nature and the directors take responsibility for managing those risks. The directors do not consider there to be any financial risks related to foreign currency exposure as the company does not operate in the overseas sector. The directors consider there to be low exposure to price risk. The company carries out appropriate checks to mitigate exposure to credit risks. The directors actively monitor the available bank and cash resources held by the company and believe that it has an appropriate mix of loan finance to mitigate liquidity risks. The directors are satisfied that the current level of interest cover is sufficient and that the benefits or mitigating interest rate risk are outweighed by costs. |
The most fundamental risks faced by the company are: |
- Failure to comply with regulation, possibly leading in extreme cases to the revocation of the care home's registration. |
- Failure to achieve quality standards, possibly leading to the suspension of admissions to the home. |
- Budgeted occupancy levels not being achieved with negative effects on profit. |
- Average weekly fees do not rise, at least in line with costs, putting profit margins under pressure. |
- Failure to retain and motivate nursing and other qualified staff, adversely impacting admissions. |
-Dealing with risks relating to the breakout of infectious diseases and reducing the risk of breakouts in the homes while maintaining the mental health of residents and minimising the risk from unvaccinated staff. |
ANALYSIS BASED ON KEY PERFORMANCE INDICATORS |
Details | YE 30-06-2024 | YE 30-06-2023 |
£ | £ |
Turnover | 5,514,296 | 4,755,700 |
Gross profit margin % | 40.41% | 38.80% |
(Loss)/profit before tax | 353,746 | (162,350) |
EBITDA | 1,224,270 | 564,889 |
Shareholders funds | 2,241,037 | 855,931 |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Strategic Report |
for the Year Ended 30 June 2024 |
SECTION 172(1) STATEMENT |
The directors of West Bank Residential Home Ltd confirm that, in accordance with their duties under section 172 of the Companies Act 2006, they have acted in a way they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In doing so, they have had regard to the matters set out in s.172(1)(a) to (f), including: |
The long-term implications of decisions made, especially in relation to continuity of care for residents and investment in compliant facilities. The interests of employees, with particular focus on training, wellbeing, and support structures aligned with regulatory standards. The importance of relationships with local authorities, the Care Quality Commission (CQC), suppliers, and other healthcare professionals. The impact of operations on the local community, including efforts to maintain an inclusive and respectful environment for staff, residents, and families. The desire to act fairly between members of the company, ensuring transparent financial and governance decisions. |
FUTURE DEVELOPMENTS |
The directors constantly review the care home sector and will continue to consider opportunities for acquisitions and disposals as they arise. |
FINANCIAL PERFORMANCE DURING THE YEAR |
The directors are pleased with the performance of the company during the year. Room occupancy rate is strong and costs have been controlled. The most significant costs relate to staff and they are reviewed on an ongoing basis. Future staff costs are considered when considering fees charged to residents. |
Full details of the company's performance can be seen in the Statement of Comprehensive Income. |
FINANCIAL PERFORMANCE AT THE REPORTING DATE |
At the balance sheet date the company had bank and cash reserves of £429,358 (2023: £409,394). |
This report was approved by the board and signed on its behalf. |
PROPERTY DISPOSAL AND PRIOR YEAR ADJUSTMENT |
In prior years, the directors had made the strategic decision to cease trading at the Dunmore residential care home and dispose of the property. The property had previously been transferred to stock as work-in-progress at a value of £1,206,263 in anticipation of sale. |
On review, the company concluded that the property should have remained classified as a fixed asset until disposal. A prior year adjustment was made to reverse the transfer from stock and return the property to fixed assets. In addition, the carrying value of the property was reduced by £406,264, bringing it in line with an independent valuation of £800,000 obtained from Your Move in 2024. |
The property was subsequently sold to directors of the company for £800,000. The disposal was conducted at arm’s length, in line with the group’s strategic objectives, and has been fully disclosed in the financial statements in accordance with FRS 102. |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Strategic Report |
for the Year Ended 30 June 2024 |
ENVIRONMENTAL AND COMMUNITY CONSIDERATIONS |
The group recognises its responsibilities toward the environment and the communities in which it operates. Efforts are made to reduce energy usage, manage clinical and non-clinical waste responsibly, and maintain safe and hygienic care environments. The group supports local employment, uses local suppliers where possible, and encourages staff to participate in community-based initiatives. |
ON BEHALF OF THE BOARD: |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Report of the Directors |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
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 company’s exposure to financial risk is minimal. However, to the extent material to the assessment of assets, liabilities, financial position and profit or loss, the company’s financial risk management objectives and policies are to maintain sufficient liquidity and credit control to ensure that funds are available to meet ongoing care and operational commitments. The company’s exposure to price, credit, liquidity and cash flow risk is monitored and managed in line with these objectives. No significant financial instruments are held beyond basic instruments such as trade receivables, payables, and cash balances. |
RESULT |
The profit/(loss) for the year, after taxation was £270,338, (2023: (£268,972 loss)). |
The directors have considered any material uncertainties to the company over the next twelve months and concluded that it is appropriate for the accounts to be prepared on a going concern basis. |
SALE OF PROPERTY |
During the year ended 30 June 2024, the company disposed of the freehold property previously used by the Dunmore residential home. This property had been held on a revaluation basis in prior years. |
Following a reassessment of the property's condition and regulatory requirements, it was determined in the current financial year that the property required substantial refurbishment to meet care home standards. Consequently, the directors decided to cease trading at Dunmore and prepare the property for sale. |
The deterioration in condition was considered to be an indicator of impairment. Accordingly, in a prior year adjustment within these financial statements, the property was impaired to reflect its fair value in its current condition. |
In the current year, the directors, R W Birkett and Mrs J E Birkett, purchased the property for £800,000. This sale price was based on the impaired value and represented the fair value of the property in its then-current state. |
The disposal gave rise no gain or loss on disposal of property sold @ £800,000, which has been recognised in the Income Statement for the year ended 30 June 2024. |
The transaction was approved by the board with appropriate governance and disclosure as a related party transaction. |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Report of the Directors |
for the Year Ended 30 June 2024 |
DISABLED EMPLOYEES |
The company gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the company’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim. |
EMPLOYEE INVOLVEMENT |
In order to meet legal requirements DBS checks are carried out on all employees prior to the commencement of their employment. |
In order to meet the requirements of the Care Quality Commission (CQC) ongoing training is provided to all employees in accordance to their requirements. All employees maintain a training record which can be checked at any time by the CQC. Regular meetings are held with staff to keep them informed of particular issues that may be arising with residents. |
DISCLOSURE IN THE STRATEGIC REPORT |
As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-size Companies and Group (Accounts and reports) Regulation 2008, certain matters which are required to be disclosed in the directors report have been omitted as they are included in the strategic report of page 2. These matters relate to the business review, principal risks and uncertainties, key performance indicators and future developments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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 company's auditors are aware of that information. |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Report of the Directors |
for the Year Ended 30 June 2024 |
AUDITORS |
The auditors, A & N (Haslemere) Limited - Statutory Auditors, 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 |
West Bank Residential Home Limited |
Opinion |
We have audited the financial statements of West Bank Residential Home Limited (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
West Bank Residential Home Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
West Bank Residential Home Limited |
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: |
The objectives of our audit, in respect to irregularities, including fraud, are: to identify and assess the risks 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; to respond appropriately to fraud or suspected fraud identified during the audit, to obtain audit evidence regarding compliance with provisions of applicable laws and regulations, and to respond appropriately to any non-compliance identified. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations our approach was to consider the following: |
- the nature of the industry or sector, control environment and business performance; |
- the results of enquiries of management about their own identification and assessment of the risks of |
irregularities; |
- matters discussed among the audit engagement team regarding how and where fraud might occur in the |
financial statements and any potential indicators of fraud. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, tax legislation and health and safety. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
We assessed the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud to be in respect of the recognition of income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation; |
- enquiring of management concerning actual and potential litigation and claims; |
- reviewing material legal costs in the period; |
- performing analytical procedures to identify unusual or unexpected relationships; |
- reviewing correspondence with HMRC; |
- testing the appropriateness of judgements made in making accounting estimates, journal entries and other |
adjustments made by management for indications of potential bias; and |
- evaluating the business rationale of any significant transactions that are unusual or outside the normal |
course of business. |
Report of the Independent Auditors to the Members of |
West Bank Residential Home Limited |
The likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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. |
Comparative Figures |
The financial statements of West Bank Residential Home Ltd for the year ended 30 June 2023 were audited by another auditor who expressed an unmodified opinion on those financial statements on [insert the date of the 2023 audit report. |
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 |
Aruna House |
2 Kings Road |
Haslemere |
Surrey |
GU27 2QA |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Income Statement |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
as restated |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
813,766 | 145,642 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest payable and similar expenses | 7 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 8 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Other Comprehensive Income |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
as restated |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME |
Elimination of interco balances |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Note |
Prior year adjustment | 9 | ( |
) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
978,842 |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Balance Sheet |
30 June 2024 |
30.6.24 | 30.6.23 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Revaluation reserve | 19 |
Retained earnings | 19 | (1,170,071 | ) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 | ( |
) |
Changes in equity |
Profit for the year | - | 137,292 | - | 137,292 |
Other comprehensive income | - | 39,170 | ( |
) | - |
Total comprehensive income | - | ( |
) |
Balance at 30 June 2023 | ( |
) | 1,262,195 |
Prior year adjustment | - | ( |
) | - | ( |
) |
As restated | ( |
) |
Changes in equity |
Profit for the year | - | 270,338 | - | 270,338 |
Other comprehensive income | - | 1,114,768 | 1,114,768 |
Total comprehensive income | - |
Balance at 30 June 2024 |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
West Bank Residential Home Limited is a private company, limited by shares, registered in England |
and Wales. The company's registered number and registered office address can be found on the |
Company Information page. |
The presentation currency of the financial statements is the Pound Sterling (£). |
Monetary amounts in the financial statements have been rounded to the nearest whole £. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
These financial statements have been prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, and in accordance with the Companies Act 2006. |
The company has taken advantage of the following disclosure exemptions available under FRS 102: |
- the requirement to prepare a cash flow statement (Section 7); |
- the requirement to present a statement of changes in equity (paragraph 3.17(d)); |
- the requirement to disclose transactions with wholly owned members of the group (paragraph 33.7), on the grounds that the company is a qualifying entity included in publicly available consolidated financial statements. |
The exemption from preparing a cash flow statement is available as the company qualifies as a medium-sized entity under the Companies Act 2006 and is included in the consolidated financial statements of Devon Care Homes Holdings Limited, which are publicly available. |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirement of paragraph 33.7. |
The company has taken advantage of the exemption available under FRS 102.1.9 from preparing a cash flow statement, on the grounds that it is a qualifying medium-sized entity. |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
3. | ACCOUNTING POLICIES - continued |
Related party exemption |
The company has taken advantage of the exemption in FRS 102, paragraph 33.1A, from disclosing transactions with wholly owned members of the group, on the grounds that the results of the company are included in the publicly available consolidated financial statements of Devon Care Homes Holdings Limited. |
At the year end, the company was owed £882,389 (2023 £847,989) by a related party under common control but outside the Devon Care Holdings Ltd group. The balance arose from historical working capital arrangements and remains outstanding. |
Management charges from related parties in which the directors have a controlling interest, during the year amounted to £184,488 (2023 £179,350). |
Turnover |
Services |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts. |
Turnover is recognised in advance of nursing care provided to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. This is funded by individuals or Government agencies. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquire 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 to the Statement of Comprehensive Income over its useful economic life of 10 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. |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of Comprehensive Income during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method. |
Depreciation is provided on the following basis: |
Freehold property - Straight line over 50 years |
Fixtures and fittings - 25% reducing balance |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant charge since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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. |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
3. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. |
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds. |
Revaluation of tangible fixed assets |
Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance Sheet date. |
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. |
Revaluation gains and losses are recognised in the Statement of Changes in Equity unless losses exceeded the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Finance costs |
Finance costs are charged to the Statement of Comprehensive Income 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. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
3. | ACCOUNTING POLICIES - continued |
Impairment of non-financial assets |
At each reporting date non-financial assets not carried at fair value, like intangible assets and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the Statement of Comprehensive Income. |
If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in the Statement of Comprehensive Income. |
Going Concern |
The financial statements have been prepared on a going concern basis. The company have prepared budgets and forecasts for the next twelve months, which take into account changes in trading conditions. |
They continue to receive support from the parent company and the Directors moving forward. Based on the above the directors believe that the company will continue to have adequate financial resources for the foreseeable future. |
4. | OTHER OPERATING INCOME |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Sundry receipts | - | 1,127 |
Government grants |
10,886 | 118,522 |
5. | EMPLOYEES AND DIRECTORS |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.6.24 | 30.6.23 |
as restated |
Staff |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Directors' remuneration |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Depreciation - owned assets |
Goodwill amortisation |
Auditors' remuneration |
Other non- audit services |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Bank loan interest |
Loan Interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit/(loss) |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods |
Deferred tax | 18,598 | 67,230 |
Group tax relief | - | (10,889 | ) |
Depreciation/Amortisation in excess of capital allowances | 60,758 | - |
Tax claim for allowable expenditure capitalised | (84,385 | ) | - |
Total tax charge | 83,408 | 106,622 |
Tax effects relating to effects of other comprehensive income |
30.6.24 |
Gross | Tax | Net |
£ | £ | £ |
Elimination of interco balances | - | 1,114,768 |
9. | PRIOR YEAR ADJUSTMENT |
A prior year adjustment has been made to correct the accounting treatment of the Dunmore residential care home property. In the year ended 30 June 2022, the property was transferred to stock as work-in-progress at a value of £1,206,263. On review, the company determined that the property should have remained classified as a fixed asset until disposal. Accordingly, a prior year adjustment was made to reverse the transfer from stock to fixed assets. In addition, the property’s carrying value was reduced by £406,264 to reflect an independent valuation of £800,000 obtained in March 2024 from Your Move confirmed by the directors to be the value as at 1 January 2024.. The adjustment has been recognised in opening reserves at 1 July 2022 and reflected in the restated comparative figures. |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
Amortisation for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The remaining amortisation period of the goodwill is 1.25 years. |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2023 |
Additions |
Disposals | ( |
) | ( |
) |
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 |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Included in freehold property is land of £1,608,333 (2023: £1,608,333) which is not depreciated. |
The freehold property was valued on an open market basis by Christie & Co on 8 April 2022. The directors have reviewed the valuation and consider it remains appropriate as at the reporting date. |
Dunmore Property - Prior Year Adjustment and Disposal |
A prior year adjustment has been made to reinstate the Dunmore residential care home property as a fixed asset, reversing its previous classification as stock. The property was reinstated at a cost of £1,206,263, and its carrying value was reduced by £406,264 to align with an independent valuation obtained from Your Move in 2024. |
The property was sold during the year ended 30 June 2024 for £800,000, resulting in its full disposal. This transaction is disclosed separately in the prior year adjustment note and in related party transactions. |
Cost or valuation at 30 June 2024 is represented by: |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
Valuation in 2022 | 1,624,374 | - | 1,624,374 |
Cost | 5,424,145 | 1,007,705 | 6,431,850 |
7,048,519 | 1,007,705 | 8,056,224 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Trade debtors |
Amounts owed by participating interests | 882,390 | 847,989 |
Other debtors |
Directors' loan accounts | 1,483,351 | - |
Prepayments and accrued income |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Bank loans and overdrafts (see note 15) |
Payments on account |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Bank loans (see note 15) |
Other loans (see note 15) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Other loans - 2-5 years |
Interest on the bank loans is paid at the rate of 3.8% per annam (2023 3.75%) above the London Inter-Bank Offered Rate (LIBOR). |
Other loans bear interest at 6% (2023 6%) per annum. |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
16. | SECURED DEBTS |
The bank loans, £3,858,254 (2023 £4,178,159) are secured by a fixed charge over the freehold properties held by the company. |
17. | PROVISIONS FOR LIABILITIES |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | 339,756 | 339,756 |
366,055 | 347,457 |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Provided during year |
Balance at 30 June 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.24 | 30.6.23 |
value: | as restated |
£ | £ |
Ordinary | £1 | 449,672 | 449,672 |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
19. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 July 2023 | ( |
) |
Prior year adjustment | ( |
) | ( |
) |
( |
) | 406,259 |
Profit for the year |
Elimination of interco balance | 1,114,768 | - | 1,114,768 |
At 30 June 2024 | 1,791,365 |
Retained earnings |
The retained earnings reserve represents accumulated profits retained by the company. |
During the year, £1,114,768 was credited to retained earnings to reflect the elimination of non-repayable intercompany balances. These balances were assessed as capital or working capital movements arising from historic intra-group funding, and were written off following the closure or restructuring of related group entities. |
20. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme for its employees. |
The total cost charged to the profit and loss account for the year was £39,830 (2023: £32,423). |
Contributions outstanding at the year end amounted to £9,292 (2023: £7,684). |
21. | ULTIMATE PARENT COMPANY |
The immediate and ultimate parent company is Devon Care Homes Holdings Limited a company incorporated in England and Wales. |
The ultimate controlling party is Mr and Mrs Birkett, sharesholders of Devon Care Homes Holdings Limited. |
The largest and smallest group in which the results of this company are consolidated is Devon Care Homes Holdings Limited. These financial statements are publicly available and can be obtained from the registered office of West Bank Residential Home Limited. |
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: |
30.6.24 | 30.6.23 |
as restated |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
WEST BANK RESIDENTIAL HOME LIMITED (REGISTERED NUMBER: 05134201) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
These balances arose from drawings made during the year and are classified as loans. The loans were unsecured, interest-free, and repayable on demand. The transactions were approved by the shareholders in accordance with section 413 of the Companies Act 2006. |
Following the year end, the outstanding balances were fully settled in March 2024 it is intended that the shareholders of the parent company, Devon Care Holdings Ltd, will dispose of their shares as part of a wider group restructuring. This does not involve a purchase of shares in West Bank Residential Home Ltd. |