Company registration number 03650681 (England and Wales)
FORGE HOUSE CARE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
FORGE HOUSE CARE LTD
COMPANY INFORMATION
Directors
Mr N Fineman
Ms O E L Fineman
Mr E J Crace-Eales
Company number
03650681
Registered office
Victory House
Quayside
Chatham Maritime
Chatham
Kent
ME4 4QU
Auditor
Perrys Audit Limited
Chartered Accountants
4th Floor
399-401 Strand
London
United Kingdom
WC2R 0LT
FORGE HOUSE CARE LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
Independent auditor's report
22 - 24
FORGE HOUSE CARE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
Forge House Care Ltd has been in existence and trading since 1998 and offer a personal approach to residential care, providing the highest quality care and support in Mid and North-West Kent.
Overall, turnover for the business has increased from £9.2m in the year to 30 September 2023 to £12m for the year ended 30 September 2024. This increase reflects the additional property purchases which are now being used for residential care.
Forge House Care Ltd specialise in supporting working age adults with autism, learning disabilities, challenging behaviour, mental health problems and acquired brain injuries and are committed to providing the highest quality care and support.
Principal risks and uncertainties
Last year’s budget changes to minimum wage and national insurance will financially impact the company, creating a substantial shortfall despite contract uplifts. Growth to mitigate this cost is expected but undefined in the current market.
Operating expenses will increase, but the extent is uncertain due to external economic pressures. Management is reducing costs where possible without affecting service quality.
The social care sector faces acute labour shortages, challenging future recruitment and retention. Focusing on our existing workforce will be as critical as ever.
The industry regulator’s updates make future inspections unpredictable, complicating planning.
Development and performance
Our employees are the cornerstone of our mission to provide exceptional support to adults with disabilities. We remain committed to fostering a positive, inclusive, and supportive work environment that promotes our staff's well-being and professional growth. We have seen excellent retention levels over the previous year and will do what we can to maintain this.
The company is committed to advancing its digital journey by implementing improved digital tools that will aid our workforce in delivering enhanced services. Our focus is on sustained growth, and we plan to bring larger projects to market with the potential for substantial revenue increases.
We are dedicated to tightening overheads and operating costs by adopting better digital systems and refining managerial procedures. Despite the current economic climate and challenges, the directors remain positive and optimistic about the company's future.
We remain committed to minimizing our environmental impact while providing high-quality support to adults with disabilities. Our dedication to sustainability is reflected in our ongoing efforts to reduce our carbon footprint, enhance energy efficiency, and promote responsible resource management.
Key performance indicators
2024 2023
Turnover £12m £9.2m
Operating profit £1m £659,518
Operating profit margin 8.41% 7.09%
FORGE HOUSE CARE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Mr N Fineman
Director
10 April 2025
FORGE HOUSE CARE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company in the year under review was that of the provision of residential care.
Results and dividends
Ordinary dividends were paid amounting to £115,000. The directors do not recommend payment of a final 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 N Fineman
Ms O E L Fineman
Mr E J Crace-Eales
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.
Employee engagement
We have managed to maintain our staff turnover rate at 9%, which compares favourably with an industry average of 27% (source: Skills for Care). We base this outcome on maintaining our pay rates at market competitive levels, continuous in-person training to augment basic on-line training and the development of geographical teams to provide support to the people we care for. All staff receive quarterly supervision sessions together with an annual appraisal, together with monthly geographic team meetings.
By the end of quarter 2 we will occupy the entire 2nd floor at our Victory House headquarters, which will allow for greater collaboration across our staffing team structures, which will help cross fertilisation of best practice ideas to continuously improve the support we provide to our service users and help reinforce a positive company culture.
We remain concerned as to the impact of the increase in the National Minimum Wage and Employer National Insurance contributions which were announced in the October 2024 budget. Our staff have been advised of the implications of these changes and have been made aware that any pay increases will be contingent upon fee uplifts from our funding providers and an increase in productivity at our senior support worker level. To drive greater productivity, we are implementing new rostering and care planning systems which will seamlessly interface with our compliance tracking and payroll systems.
FORGE HOUSE CARE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
On behalf of the board
Mr N Fineman
Director
10 April 2025
FORGE HOUSE CARE LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
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:
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.
FORGE HOUSE CARE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
2024
2023
as restated
Notes
£
£
Turnover
2
12,070,948
9,297,026
Cost of sales
(142,640)
(164,988)
Gross profit
11,928,308
9,132,038
Administrative expenses
(10,913,536)
(8,474,520)
Other operating income
2,000
Operating profit
3
1,014,772
659,518
Interest payable and similar expenses
6
(254,608)
(159,753)
Profit before taxation
760,164
499,765
Tax on profit
7
(227,219)
(135,325)
Profit for the financial year
532,945
364,440
Other comprehensive income
Revaluation of tangible fixed assets
267,368
Tax relating to other comprehensive income
(66,842)
Total comprehensive income for the year
532,945
564,966
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FORGE HOUSE CARE LTD (REGISTERED NUMBER: 03650681)
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 7 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
9
4,001
6,711
Tangible assets
10
5,218,735
5,092,819
5,222,736
5,099,530
Current assets
Stocks
11
45,087
34,118
Debtors
12
1,107,948
795,070
Cash at bank and in hand
136,611
33,977
1,289,646
863,165
Creditors: amounts falling due within one year
13
(1,004,623)
(969,176)
Net current assets/(liabilities)
285,023
(106,011)
Total assets less current liabilities
5,507,759
4,993,519
Creditors: amounts falling due after more than one year
14
(2,821,506)
(2,789,674)
Provisions for liabilities
Deferred tax liability
17
358,429
293,966
(358,429)
(293,966)
Net assets
2,327,824
1,909,879
Capital and reserves
Called up share capital
20
100
100
Revaluation reserve
364,182
364,182
Distributable profit and loss reserves
1,963,542
1,545,597
Total equity
2,327,824
1,909,879
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 10 April 2025 and are signed on its behalf by:
Mr N Fineman
Director
FORGE HOUSE CARE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 30 September 2023:
Balance at 1 October 2022
100
163,656
1,255,203
1,418,959
Year ended 30 September 2023:
Profit
-
-
364,440
364,440
Other comprehensive income:
Revaluation of tangible fixed assets
-
267,368
-
267,368
Tax relating to other comprehensive income
-
(66,842)
(66,842)
Total comprehensive income
-
200,526
364,440
564,966
Dividends
8
-
-
(74,046)
(74,046)
Balance at 30 September 2023
100
364,182
1,545,597
1,909,879
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
532,945
532,945
Dividends
8
-
-
(115,000)
(115,000)
Balance at 30 September 2024
100
364,182
1,963,542
2,327,824
FORGE HOUSE CARE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,024,403
749,537
Interest paid
(254,608)
(159,753)
Income taxes (paid)/refunded
(96,308)
2,725
Net cash inflow from operating activities
673,487
592,509
Investing activities
Purchase of tangible fixed assets
(267,700)
(2,719,270)
Proceeds from disposal of tangible fixed assets
39,558
4,350
Repayment of loans
(16,310)
Net cash used in investing activities
(244,452)
(2,714,920)
Financing activities
Repayment of bank loans
(247,764)
1,835,382
Payment of finance leases obligations
36,363
39,183
Dividends paid
(115,000)
(74,046)
Net cash (used in)/generated from financing activities
(326,401)
1,800,519
Net increase/(decrease) in cash and cash equivalents
102,634
(321,892)
Cash and cash equivalents at beginning of year
33,977
355,869
Cash and cash equivalents at end of year
136,611
33,977
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
1
Accounting policies
Company information
Forge House Care Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Victory House, Quayside, Chatham Maritime, Chatham, Kent, ME4 4QU.
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 £1.
The financial statements have been prepared under the historical cost convention modified for fair value of land and buildings.
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 consideration received or receivable for the goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. The following criteria must also be met before turnover is recognised.
Turnover for the sale of goods is recognised when all of the following conditions are met:
The company has transferred the significant risks and rewards of ownership to the buyer;
The amount of turnover can be recognised reliably and;
It is probable that the company will receive the consideration due under the transaction.
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
The amount of turnover can be measure reliably
It is probable that the company will receive the consideration due under the contract
The stage of completion of the contract at the end of the reporting period can be measured reliably; and
The costs incurred and the costs to complete the contract can be measured reliably
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:
Website
20% Straight Line
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 11 -
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
The property value is reviewed annually for impairment
Land and buildings Leasehold
10% Straight Line
Plant and machinery
15% Reducing Balance
Office 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. Land and buildings are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Residential care
12,070,948
9,297,026
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
12,070,948
9,297,026
2024
2023
£
£
Other revenue
Royalty income
2,000
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
Depreciation of owned tangible fixed assets
63,541
28,491
Depreciation of tangible fixed assets held under finance leases
57,972
43,579
Profit on disposal of tangible fixed assets
(19,287)
(492)
Amortisation of intangible assets
2,710
2,710
Operating lease charges
288,342
261,815
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
322
248
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
4
Employees
(Continued)
- 13 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
9,503,817
7,233,609
Social security costs
146,987
116,097
Pension costs
60,000
45,000
9,710,804
7,394,706
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
267,231
262,500
Company pension contributions to defined contribution schemes
60,000
45,000
327,231
307,500
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
143,836
150,000
6
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
233,147
151,947
Other finance costs:
Interest on finance leases and hire purchase contracts
16,682
5,081
Other interest
4,779
2,725
254,608
159,753
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
162,757
Adjustments in respect of prior periods
(36,572)
Total current tax
162,757
(36,572)
Deferred tax
Origination and reversal of timing differences
64,462
171,897
Total tax charge
227,219
135,325
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
760,164
499,765
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
190,041
94,955
Tax effect of expenses that are not deductible in determining taxable profit
720
714
Depreciation on assets not qualifying for tax allowances
30,378
13,693
Profit on sale of fixed asset
(4,822)
(93)
Net capital allowances
(53,560)
(145,840)
Deferred tax adjustment
64,462
171,896
Taxation charge for the year
227,219
135,325
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
66,842
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
8
Dividends
2024
2023
£
£
Interim paid
115,000
74,046
9
Intangible fixed assets
Website
£
Cost
At 1 October 2023 and 30 September 2024
13,549
Amortisation and impairment
At 1 October 2023
6,838
Amortisation charged for the year
2,710
At 30 September 2024
9,548
Carrying amount
At 30 September 2024
4,001
At 30 September 2023
6,711
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
10
Tangible fixed assets
Land and buildings
Land and buildings Leasehold
Plant and machinery
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
4,729,991
26,579
211,376
240,047
334,197
5,542,190
Additions
77,044
21,130
11,443
26,550
131,533
267,700
Disposals
(78,849)
(78,849)
At 30 September 2024
4,807,035
47,709
222,819
266,597
386,881
5,731,041
Depreciation and impairment
At 1 October 2023
676
102,552
169,721
176,422
449,371
Depreciation charged in the year
4,385
17,339
19,885
79,904
121,513
Eliminated in respect of disposals
(58,578)
(58,578)
At 30 September 2024
5,061
119,891
189,606
197,748
512,306
Carrying amount
At 30 September 2024
4,807,035
42,648
102,928
76,991
189,133
5,218,735
At 30 September 2023
4,729,991
25,903
108,824
70,326
157,775
5,092,819
The land and buildings were revalued on 30 September 2023. The directors are of the opinion that this valuation remains appropriate at 30 September 2024 and therefore no depreciation or impairment has been charged.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
137,370
88,179
11
Stocks
2024
2023
£
£
Raw materials and consumables
45,087
34,118
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
940,027
616,511
Other debtors
88,349
66,511
Prepayments and accrued income
79,572
112,048
1,107,948
795,070
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
247,763
239,929
Obligations under finance leases
16
28,505
26,456
Trade creditors
140,151
316,919
Corporation tax
174,840
108,392
Other taxation and social security
240,878
204,783
Deferred income
18
146,851
42,453
Other creditors
8,491
25,345
Accruals and deferred income
17,144
4,899
1,004,623
969,176
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
2,450,004
2,705,602
Obligations under finance leases
16
118,386
84,072
Other creditors
253,116
2,821,506
2,789,674
The bank loans are secured against the total assets of the company including the properties held by way of fixed charge and contain a negative pledge.
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,835,527
1,998,804
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
15
Loans and overdrafts
2024
2023
£
£
Bank loans
2,697,767
2,945,531
Payable within one year
247,763
239,929
Payable after one year
2,450,004
2,705,602
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
28,505
26,456
In two to five years
118,386
84,072
146,891
110,528
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
267,797
203,334
Revaluations
90,632
90,632
358,429
293,966
2024
Movements in the year:
£
Liability at 1 October 2023
293,966
Charge to profit or loss
64,463
Liability at 30 September 2024
358,429
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
18
Deferred income
2024
2023
£
£
Other deferred income
146,851
42,453
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,000
45,000
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.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
21
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
188,378
109,708
Between two and five years
346,658
334,536
535,036
444,244
22
Directors' transactions
Included within other creditors due over one year is a director's loan of £253,116. (2023- £nil.)
23
Ultimate controlling party
There is no sole ultimate controlling party. The company is controlled jointly by its shareholders Mr N Fineman and Mrs S Fineman.
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
532,945
364,440
Adjustments for:
Taxation charged
227,219
135,325
Finance costs
254,608
159,753
Gain on disposal of tangible fixed assets
(19,287)
(492)
Amortisation and impairment of intangible assets
2,710
2,710
Depreciation and impairment of tangible fixed assets
121,513
72,070
Movements in working capital:
Increase in stocks
(10,969)
(7,712)
Increase in debtors
(296,568)
(200,505)
Increase in creditors
107,834
349,250
Increase/(decrease) in deferred income
104,398
(125,302)
Cash generated from operations
1,024,403
749,537
25
Analysis of changes in net debt
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
33,977
102,634
136,611
Borrowings excluding overdrafts
(2,945,531)
247,764
(2,697,767)
Obligations under finance leases
(110,528)
(36,363)
(146,891)
(3,022,082)
314,035
(2,708,047)
FORGE HOUSE CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
26
Prior period adjustment
Reconciliation of changes in equity
1 October
30 September
2022
2023
£
£
Adjustments to prior year
Adjustment to recognise deferred or accrued income
-
51,515
Equity as previously reported
1,418,959
1,858,364
Equity as adjusted
1,418,959
1,909,879
Analysis of the effect upon equity
Profit and loss reserves
-
51,515
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Adjustment to recognise deferred or accrued income
51,515
Profit as previously reported
312,925
Profit as adjusted
364,440
Notes to reconciliation
The prior year comparatives have been restated to recognise accrued and deferred income on the company’s sales
FORGE HOUSE CARE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORGE HOUSE CARE LTD
- 22 -
Opinion
We have audited the financial statements of Forge House Care Ltd (the 'company') for the year ended 30 September 2024 which comprise 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:
give a true and fair view of the state of the company's affairs as at 30 September 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.
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.
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.
FORGE HOUSE CARE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORGE HOUSE CARE LTD (CONTINUED)
- 23 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
FORGE HOUSE CARE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORGE HOUSE CARE LTD (CONTINUED)
- 24 -
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
Other matters which we are required to address
The comparative figures have not been audited.
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.
Scott Jiggins
Senior Statutory Auditor
For and on behalf of Perrys Audit Limited
Chartered Accountants
Statutory Auditor
4th Floor
399-401 Strand
London
United Kingdom
WC2R 0LT
10 April 2025
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