Company Registration No. 11839967 (England and Wales)
HALLIWELL HOMES (MIDLANDS DIVISION) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
PAGES FOR FILING WITH REGISTRAR
HALLIWELL HOMES (MIDLANDS DIVISION) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
HALLIWELL HOMES (MIDLANDS DIVISION) LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,345,166
1,233,496
Current assets
Debtors
5
1,130,075
1,040,323
Cash at bank and in hand
96,707
315,567
1,226,782
1,355,890
Creditors: amounts falling due within one year
6
(2,260,806)
(2,995,170)
Net current liabilities
(1,034,024)
(1,639,280)
Net assets/(liabilities)
311,142
(405,784)
Capital and reserves
Called up share capital
10
10
Profit and loss reserves
311,132
(405,794)
Total equity
311,142
(405,784)
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
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 11839967 (England and Wales)
HALLIWELL HOMES (MIDLANDS DIVISION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
1
Accounting policies
Company information
Halliwell Homes (Midlands Division) 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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
At 31 August 2023 the company had net liabilities of £405,784 due to substantial capital and infrastructure costs incurred in previous years to establish two care homes in the Midlands area.
At 31 August 2024 the company had net assets of £311,142 and generated a pre tax profit for the year of £907,270 (2023: £160,012), the homes were both operational throughout the reporting period.
The company is supported by a loan of £1.01m (2023: £1.94m from fellow group undertaking Halliwell Homes Limited. The directors of Halliwell Homes Limited have provided a letter to the directors confirming that Halliwell Homes Limited will provide continued financial support to Halliwell Homes (Midlands Division) for the forseeable future. The debt will not be recalled if this jeopardises the liquidity of the company.
As a consequence of the matters outlined above, the directors have a reasonable expectation that the company has adequate resources to meet its obligations and continue in operational existence for the foreseeable future and therefore have prepared these accounts on the going concern basis and consider that this is appropriate.
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 benefit will flow to the entity.
1.4
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.
HALLIWELL HOMES (MIDLANDS DIVISION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 3 -
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% straightline
Fixtures, fittings and equipment
25% reducing balance
Motor vehicles
25% reducing balance
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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.
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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
HALLIWELL HOMES (MIDLANDS DIVISION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 4 -
1.8
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.
1.9
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.
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
HALLIWELL HOMES (MIDLANDS DIVISION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
61
60
4
Tangible fixed assets
Land and buildings
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 September 2023
1,768,551
134,816
58,587
1,961,954
Additions
11,530
20,649
32,179
Disposals
(12,000)
(12,000)
At 31 August 2024
1,780,081
134,816
67,236
1,982,133
Depreciation and impairment
At 1 September 2023
619,702
77,042
31,714
728,458
Depreciation charged in the year
35,602
14,453
10,615
60,670
Eliminated in respect of disposals
(6,938)
(6,938)
Revaluation
(145,223)
(145,223)
At 31 August 2024
510,081
91,495
35,391
636,967
Carrying amount
At 31 August 2024
1,270,000
43,321
31,845
1,345,166
At 31 August 2023
1,148,849
57,774
26,873
1,233,496
Land and buildings with a carrying amount of £1,270,000 (2023 - £1,148,849) 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.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
HALLIWELL HOMES (MIDLANDS DIVISION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
4
Tangible fixed assets
(Continued)
- 6 -
Land & buildings
2024
2023
£
£
Cost
1,780,081
1,768,551
Accumulated depreciation
(179,610)
(144,008)
Carrying value
1,600,471
1,624,543
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,108,023
1,017,813
Other debtors
22,052
22,510
1,130,075
1,040,323
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
21,726
92,631
Amounts owed to group undertakings
1,005,624
1,936,599
Taxation and social security
272,619
132,420
Other creditors
960,837
833,520
2,260,806
2,995,170
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
The auditor's report is unqualified and includes the following:
Opinion
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 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.
HALLIWELL HOMES (MIDLANDS DIVISION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
7
Audit report information
(Continued)
- 7 -
Senior Statutory Auditor:
Karen Staley FCA BSc (Hons)
Statutory Auditor:
Geens Limited
Date of audit report:
9 April 2025
8
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 (2023: £9,895,833) held by parent company Halliwell Care Holding Limited. These bank loans are secured on all the assets of Halliwell Homes (Midlands Division) Limited and fellow group undertaking Halliwell Homes Limited, including (without limitation) a legal mortgage of the land and buildings and a floating charge over all other assets.
Deferred consideration
On 24th May 2022 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 £11.4m plus interest accrued.
9
Related party transactions
Transactions with related parties
The company has taken advantage of the exemption provided in Financial Reporting Standard 102. Disclosures need not be given of transactions entered in to between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.
10
Parent company
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 ( the parent). The registered office of the parent is Pearce House, 80 Cawdor Street, Eccles, Manchester. M30 0QF