Company registration number 03681826 (England and Wales)
HALLIWELL HOMES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
HALLIWELL HOMES LIMITED
COMPANY INFORMATION
Directors
Dr Fenella Quinn
Mr M Hargreaves
Mr Paul Bliss
Mr Robert McKay
(Appointed 17 November 2023)
Company number
03681826
Registered office
Pearce House
80 Cawdor Street
Eccles
Manchester
M30 0QF
Auditor
Geens Limited
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
HALLIWELL HOMES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
HALLIWELL HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

Strategic Report

The directors present the strategic report for the year ended 31 August 2024.

Fair review of the business

The Halliwell Group of companies offers "clinically informed practice" through the medium of education, fostering and residential care. Our objective is to enhance the psychological health of children within the care system. Our Restorative Parenting® Recovery Programme is a therapeutic re-parenting programme which focuses on addressing the emotional, behavioural, social, and developmental needs of the child. Our approach sets us apart from standard residential childcare providers in that it is clinically informed in every aspect of the child’s lived therapeutic experience with the specific aim of helping traumatised children achieve psychological wellbeing.

The Restorative Parenting® Recovery Programme operates on an environmental, interpersonal, and individual level. Psychological growth and recovery are facilitated through the applied understanding of childhood trauma and attachment needs, Positive Behaviour Support and a focus on engagement and achievement through active participation in education and a wide range of activities. Our practice is guided by knowledge and experience of the power of the narrative and reframing, solution focused approaches and is responsive, consistent, and attuned to the child’s needs.

The progress of Individual children is monitored monthly through the Restorative Parenting Recovery Index and using additional normed psychological scales where appropriate. Detailed discussion of children’s progress takes place at monthly consultations with a psychologist and additional input is provided on a flexible basis by Halliwell’s clinical team, which includes Psychiatry and Clinical Psychology.

We operate 4 homes in the Northwest of England alongside our sister company Halliwell Home (Midlands Division) who operate 2 in the Midlands area. A plan is now in place to open two additional homes in the Stoke area in 2025.

Results for the year ended 31st August 2024

The directors are pleased to report a successful year for the financial year to 31st August 2024. Halliwell Homes Limited achieved high levels of occupancy, stable staff teams with reducing agency costs and a good, consistent level of service quality, including a first Ofsted Outstanding rated home. We are also pleased to continue to report successful outcomes for the children placed with us. We have an average programme completion rate of more than 85%, meaning that more than 4 out of five of the children are currently on track to move out of our programme and be ready for a foster family placement, meeting the objectives of our Restorative Parenting Programme.

 

Key Performance Indicators

 

Adjusted EBITDA for the period was £2,923k and 11 children made a transition from the programme having sufficiently recovered from childhood trauma whilst placed with Halliwell. 100% Staffing in the homes was also achieved by the end of the period. A first Outstanding rating for Halliwell homes was also achieved.

 

HALLIWELL HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

Principal Risks and Uncertainties

 

The Board of Directors expect the business to run at >92% total occupancy in the future given the large number of children in the looked after sector that require a specialist placement.

A primary risk for the business in the upcoming period is the ongoing staffing shortage within the sector. In order achieve the expected outcomes for the children on the programme, a stable team of highly qualified and experienced practitioners is required. However, while the sector has historically had a high staff turnover over the last 12 months Halliwell has consistently achieved full staffing and is currently overstaffed in preparation for the opening of new homes in the Midlands region.

The Halliwell Group that Halliwell Homes Limited is part of have and will continue to invest significantly in the recruitment, development and retention of the staff team to ensure that full staffing is maintained, and any risk is mitigated. Our in-house clinical and Learning and Development teams provide an extensive and in-depth programme of continuous professional development for our practitioners as well as clinical oversight and support. This has enabled Halliwell to achieve 100% staffing during this period and to support significant positive outcomes for the children in the looked after system. We intend to continue and build on our focus and investment in the development of our practitioners in the coming year, with the goal of achieving and maintaining full staffing and continuing to further improve the length of time that they stay with the company.

The restructuring of Halliwell to become an Employee Ownership Trust during 2022 has had a positive effect on staff recruitment and retention, with Halliwell achieving staffing capacity well above the average in sector which will support achieving and maintaining high occupancy levels in the coming year. It will also enable Halliwell to offer greater engagement opportunities for all employees in the development of the organisation going forward as well as greater benefits and rewards when the business performs well.

This structure allows Halliwell to most closely align the best interests of the children in its care, our local authority customers and our skilled and committed staff team, meaning the business is well placed to deliver its service objectives and perform successfully financially.

All other risks are managed day to day in the normal course of business.

 

 

 

 

On behalf of the board

Mr Robert McKay
Director
9 April 2025
HALLIWELL HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 August 2024.

Principal activities

The principal activity of the company continued to be that of education, fostering and residential care for children.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £950,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr David Sheffield
(Resigned 17 November 2023)
Dr Fenella Quinn
Mr M Hargreaves
Mr Paul Bliss
Mr Robert McKay
(Appointed 17 November 2023)
Auditor

Pursuant to section 487 of the Companies Act 2006 Geens Limited will continue in office as auditors.

Statement of directors' responsibilities

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

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

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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 of disclosure to auditor

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

HALLIWELL HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr Robert McKay
Director
9 April 2025
HALLIWELL HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HALLIWELL HOMES LIMITED
- 5 -
Opinion

We have audited the financial statements of Halliwell Homes Limited (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

HALLIWELL HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HALLIWELL HOMES LIMITED (CONTINUED)
- 6 -
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 directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

HALLIWELL HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HALLIWELL HOMES LIMITED (CONTINUED)
- 7 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

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. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Karen Staley FCA BSc (Hons) (Senior Statutory Auditor)
For and on behalf of Geens Limited, Statutory Auditor
Chartered Accountants
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
9 April 2025
HALLIWELL HOMES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,498,756
8,191,417
Cost of sales
(5,901,643)
(5,446,668)
Gross profit
4,597,113
2,744,749
Administrative expenses
(1,823,077)
(2,313,648)
Operating profit
4
2,774,036
431,101
Interest receivable and similar income
11,670
613
Interest payable and similar expenses
7
-
0
(9,629)
Fair value gains on tangible fixed assets
276,987
-
0
Profit before taxation
3,062,693
422,085
Tax on profit
8
(355,628)
-
0
Profit for the financial year
2,707,065
422,085

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HALLIWELL HOMES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
2024
2023
£
£
Profit for the year
2,707,065
422,085
Other comprehensive income
-
-
Total comprehensive income for the year
2,707,065
422,085
HALLIWELL HOMES LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,276,885
3,003,111
Current assets
Debtors
11
3,481,574
4,009,167
Cash at bank and in hand
1,856,336
512,712
5,337,910
4,521,879
Creditors: amounts falling due within one year
12
(3,998,221)
(4,665,481)
Net current assets/(liabilities)
1,339,689
(143,602)
Net assets
4,616,574
2,859,509
Capital and reserves
Called up share capital
14
170
170
Revaluation reserve
510,756
195,110
Capital redemption reserve
30
30
Profit and loss reserves
4,105,618
2,664,199
Total equity
4,616,574
2,859,509

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 9 April 2025 and are signed on its behalf by:
Mr Robert McKay
Director
Company registration number 03681826 (England and Wales)
HALLIWELL HOMES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 September 2022
170
195,110
30
2,242,114
2,437,424
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
-
422,085
422,085
Balance at 31 August 2023
170
195,110
30
2,664,199
2,859,509
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
-
2,707,065
2,707,065
Dividends
-
-
-
(950,000)
(950,000)
Other movements
-
315,646
-
-
315,646
Other movements
-
-
-
(315,646)
(315,646)
Balance at 31 August 2024
170
510,756
30
4,105,618
4,616,574
HALLIWELL HOMES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
20
2,487,334
(257,625)
Interest paid
-
0
(9,629)
Income taxes paid
(59,673)
(38,637)
Net cash inflow/(outflow) from operating activities
2,427,661
(305,891)
Investing activities
Purchase of tangible fixed assets
(146,327)
(83,809)
Proceeds from disposal of tangible fixed assets
620
6,366
Interest received
11,670
613
Net cash used in investing activities
(134,037)
(76,830)
Financing activities
Repayment of bank loans
-
0
(45,886)
Payment of finance leases obligations
-
0
(13,333)
Dividends paid
(950,000)
-
0
Net cash used in financing activities
(950,000)
(59,219)
Net increase/(decrease) in cash and cash equivalents
1,343,624
(441,940)
Cash and cash equivalents at beginning of year
512,712
954,652
Cash and cash equivalents at end of year
1,856,336
512,712
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
1
Accounting policies
Company information

Halliwell Homes Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pearce House, 80 Cawdor Street, Eccles, Manchester, M30 0QF.

1.1
Accounting convention

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

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

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

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.

The company recognises revenue when the amount of revenue can be measured reliably and when it is probable future economic benefits will flow to the entity.

1.4
Intangible fixed assets other than goodwill

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

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

Development costs
33.3% on straight line
1.5
Tangible fixed assets

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

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

Land and buildings
2% straight line
Leasehold improvements
Over the period of the lease
Equipment
25% Reducing Balance
Motor vehicles
25% Reducing Balance

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

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

1.6
Impairment of fixed assets

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

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company 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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

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

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases are charged to profit or loss on a straight line basis over the term of the relevant lease.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,498,756
8,191,417
2024
2023
£
£
Other revenue
Interest income
11,670
613
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
34,109
16,200
Depreciation of owned tangible fixed assets
144,098
160,401
Loss on disposal of tangible fixed assets
4,822
2,082
Operating lease charges
30,000
34,952
5
Employees

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

2024
2023
Number
Number
Directors
4
4
Senior management team
10
8
Teaching, care and administration
137
129
Total
151
141

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,569,318
5,227,837
Social security costs
617,204
501,832
Pension costs
118,143
100,370
6,304,665
5,830,039

Redundancy payments in the year totalled £33,000 (3 employees), in 2023 this was nil.

 

 

6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
277,204
330,319
Company pension contributions to defined contribution schemes
3,832
3,970
281,036
334,289

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 3).

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
113,046
127,283
Company pension contributions to defined contribution schemes
1,321
1,323
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
-
0
5,266
Other finance costs:
Interest on finance leases and hire purchase contracts
-
3,000
Other interest
-
0
1,363
-
0
9,629
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
342,025
-
0
Adjustments in respect of prior periods
13,603
-
0
Total current tax
355,628
-
0
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Taxation
(Continued)
- 19 -

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

2024
2023
£
£
Profit before taxation
3,062,693
422,085
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
765,673
105,521
Tax effect of expenses that are not deductible in determining taxable profit
-
0
494
Adjustments in respect of prior years
13,603
-
0
Group relief
(444,567)
(131,654)
Permanent capital allowances in excess of depreciation
-
0
(1,639)
Depreciation on assets not qualifying for tax allowances
15,947
17,801
Deferred tax adjustments in respect of prior years
4,972
9,477
Taxation charge for the year
355,628
-
9
Intangible fixed assets
Development costs
£
Cost
At 1 September 2023 and 31 August 2024
93,611
Amortisation and impairment
At 1 September 2023 and 31 August 2024
93,611
Carrying amount
At 31 August 2024
-
0
At 31 August 2023
-
0
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
10
Tangible fixed assets
Land and buildings
Leasehold improvements
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 September 2023
2,846,083
42,854
537,504
187,681
3,614,122
Additions
87,239
-
0
40,695
18,393
146,327
Disposals
-
0
-
0
-
0
(32,278)
(32,278)
Revaluation
106,719
-
0
-
0
-
0
106,719
At 31 August 2024
3,040,041
42,854
578,199
173,796
3,834,890
Depreciation and impairment
At 1 September 2023
113,548
39,866
333,508
124,089
611,011
Depreciation charged in the year
60,801
2,988
61,173
19,136
144,098
Eliminated in respect of disposals
-
0
-
0
-
0
(26,836)
(26,836)
Revaluation
(170,268)
-
0
-
0
-
0
(170,268)
At 31 August 2024
4,081
42,854
394,681
116,389
558,005
Carrying amount
At 31 August 2024
3,035,960
-
0
183,518
57,407
3,276,885
At 31 August 2023
2,732,535
2,988
203,996
63,592
3,003,111

Land and buildings with a carrying amount of £3,035,960 (2023 - £2,732,535) have been pledged to secure borrowings of Halliwell Care Holding Limited. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Land and buildings were revalued at 24th July 2024 by Christie & Co, who are independent valuers, not connected with the company, on the basis of market value. The valuation was undertaken in accordance with the Royal Institute of Chartered Surveyors Valuation Standards and was based on recent market transactions on arms length terms for similar properties. The valuation date is deemed to be close enough to the year end date to not warrant any adjustment.

 

If land and buildings had been measured using the cost model the carrying amounts would have been as follows:

Land & buildings
2024
2023
£
£
Cost
2,738,212
2,650,972
Accumulated depreciation
(213,007)
(382,566)
Carrying value
2,525,205
2,268,406
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,326,703
1,968,735
Amounts owed by group undertakings
1,005,623
1,936,598
Other debtors
9,000
9,000
Prepayments and accrued income
140,248
94,834
3,481,574
4,009,167
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
454,925
344,666
Amounts owed to group undertakings
399,388
2,072,012
Corporation tax
342,025
46,070
Other taxation and social security
152,734
158,942
Other creditors
1,915,464
1,562,629
Accruals and deferred income
733,685
481,162
3,998,221
4,665,481
13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,143
100,370

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
170
170
170
170
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
15
Contingent liability

Bank Loans

The company has charges over its assets in the form of debentures as senior first-ranking security for the bank loans of £9,479,167 held by parent company Halliwell Care Holding Limited. These bank loans are secured on all the assets of Halliwell Homes Limited and fellow group undertaking Halliwell Homes (Midlands Division) Limited, including (without limitation) a legal mortgage of the land and buildings and a floating charge over all other assets.

 

Deferred consideration

The group undertook a restructuring on 24th May 2022 whereby the former shareholders of the Halliwell Homes Group sold their shares to Halliwell Homes Employee Ownership Trust. Halliwell Care Holding Limited made a contribution to the trust to fund the initial consideration. The Halliwell Homes Group companies are committed to funding quarterly contributions to cover deferred consideration and accrued interest to the former shareholders. As at 31 August 2024 the amount of deferred consideration due was £11.5m plus interest accrued.

 

 

16
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
179,751
261,006
Between two and five years
375,503
682,725
In over five years
-
0
69,683
555,254
1,013,414
17
Related party transactions

The group as taken advantage of the exemption provided in Financial Reporting Standards 102. Disclosures need not be given of transactions entered in to between two or members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

 

18
Directors' transactions

The amounts owed to directors of the company at the year end was £nil (2022 - £nil).

19
Ultimate controlling party

The immediate parent company is Halliwell Care Holding Limited, a company registered in England and the ultimate controlling party is Halliwell Homes EOT Trust which owns 51% of the share capital of Halliwell Care Holding Limited.

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
20
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit after taxation
2,707,065
422,085
Adjustments for:
Taxation charged
355,628
-
0
Finance costs
-
0
9,629
Investment income
(11,670)
(613)
Loss on disposal of tangible fixed assets
4,822
2,082
Fair value gain on investment properties
(276,987)
-
0
Depreciation and impairment of tangible fixed assets
144,098
160,401
Movements in working capital:
Decrease/(increase) in debtors
527,593
(224,177)
Decrease in creditors
(963,215)
(627,032)
Cash generated from/(absorbed by) operations
2,487,334
(257,625)
21
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
512,712
1,343,624
1,856,336
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