REGISTERED NUMBER: 02145485 (England and Wales) |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 |
FOR |
HANDSALE LIMITED |
REGISTERED NUMBER: 02145485 (England and Wales) |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 |
FOR |
HANDSALE LIMITED |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 July 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 4 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 20 |
HANDSALE LIMITED |
COMPANY INFORMATION |
for the year ended 31 July 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Coventry University |
Technology Park |
Puma Way |
Coventry |
CV1 2TT |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
GROUP STRATEGIC REPORT |
for the year ended 31 July 2024 |
The directors present their strategic report of the company and the group for the year ended 31 July 2024. |
The group has been trading within the healthcare sector providing care home services. |
REVIEW OF BUSINESS |
Key performance indicators are turnover, gross profit margin and savings in costs. |
During the year, the group has continued to make progress in different aspects of its main strategic objectives which was to continue to increase turnover and profits through the provision of care home services. |
The group turnover decreased by 7% to £20,936,571 (2023 - £22,473,455) mainly due to the closure of three care homes during the year. |
The group gross profit margin for the year of 30.3% (2023 - 24.0%) has increased from previous years as a result of decreased staffing costs and the closure of three care homes. |
As a result of the above, the operating profit amount increased to an operating profit of £1,347,624 (2023 - loss of £(1,001,358)). |
The main elements of the group's strategy are as follows: |
(a) Manage the principal risks and uncertainties facing the business. |
(b) Maintaining existing client relationship and develop new businesses by improving on the full range of services to ensure future growth. |
(c) Providing enhanced responsive services and seek new contracts through established contacts and marketing. |
(d) the directors intention is to incorporate the businesses of all subsidiary companies within Handsale Limited Group. |
The directors have carefully considered the operation in a changing and competitive market place where continuing growth in the group is dependant on maintaining the above factors. |
Impact of the Coronavirus pandemic on the group |
The group has been very pro-active and taken the necessary measures to prevent cases of Covid-19 in all their care homes especially in providing personal protective equipment (PPE) to all their staff and ensuring the care homes are kept free of the virus as much as possible by the infection control measures undertaken and obtaining access to Covid-19 testing for all their staff and residents. Where possible, cohorted units have been created to isolate those with Covid-19 symptoms and to create a safe and sustainable admissions process. |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
GROUP STRATEGIC REPORT |
for the year ended 31 July 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties of the group are summarised below. The board has reviewed and agreed policies for managing each of the risks. |
Financial risk exposure |
The group's financial instruments comprised of borrowing and cash that arise directly from its operation. The main purpose of these financial instruments was to fund the group's operations as well as to manage working capital, liquidity and invest surplus funds. |
Interest rate risk |
The group continues to finance its operations from the bank loans. Accordingly, borrowings, up until repayment, are at variable interest rates which are subject to fluctuations in the base rates. |
Liquidity risk |
The group continues to monitor its liquid assets to ensure it has sufficient cash and cash equivalents to meet its operational requirements. |
Credit risk |
The group has no significant congregation of credit risk. The group has policies in place to ensure that sales are made to customers with an appropriate credit history. |
Management of risks |
The directors continue to assess and monitor the above risks and risks of unforeseen economic and other conditions and the market in which the group operates. The risk of losing key customers is low due to continuous nurturing of relationships. The group has continued to develop and maintain contacts with the local authorities. |
ON BEHALF OF THE BOARD: |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
DIRECTORS' REPORT |
for the year ended 31 July 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 July 2024. |
DIVIDENDS |
No interim dividend was paid during the year. The directors recommend a final dividend of 5620 per share. |
The total distribution of dividends for the year ended 31 July 2024 will be £ 562,000 . |
FUTURE DEVELOPMENTS |
The directors continue to seek new opportunities of expanding the service of providing care services across the country, pursuing their management policies and they hope that there will be an effective response to the challenges of the coming year. Entities which own the care home properties intend to operate care home services through the licences issued to them by the local authorities. We intend to continue to take advantage of any opportunities that may be appropriate to the business, to maximise the capital employed in the group. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report. |
EMPLOYMENT OF DISABLED PERSONS |
The group continues the positive policies for disabled people by - |
(a) giving full and fair consideration to applications for employment by the group made by disabled persons, having regard to their particular aptitudes and abilities, |
(b) continuing the employment of, and for arranging appropriate training for, employees of the group who have become disabled persons during the period when they were employed by the group, and |
(c) training, career development and promotion of disabled persons employed by the group. |
PAYMENT FOR CREDITORS |
The group agrees commercial terms with suppliers (including payment terms) and, if performance accords with their terms, to abide by the agreed payment arrangements. |
GOING CONCERN |
Having reviewed the group's performance, financial forecasts and expected future consolidated cash flows, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus they have adopted the going concern basis in preparing the financial statements for the period ended 31 July 2024. |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
DIRECTORS' REPORT |
for the year ended 31 July 2024 |
ENGAGEMENT WITH EMPLOYEES |
The group continues to introduce, maintain or develop arrangements aimed at: |
(a) providing employees systematically with information on matters of concern to them as employees, |
(b) consulting employees or their representatives on a regular basis so that the views of employees can be taken into account in making decisions which are likely to affect their interests, |
(c) achieving a common awareness on the part of all employees of the financial and economic factors affecting the performance of the group. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Directors' 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
DIRECTORS' REPORT |
for the year ended 31 July 2024 |
AUDITORS |
The auditors, Accumen Business Consultancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANDSALE LIMITED |
Opinion |
We have audited the financial statements of Handsale Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 July 2024 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANDSALE LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANDSALE LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, environmental and health and safety legislation; |
- we assessed th extent of compliance with the laws and regulations identified above through making enquiries of |
management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in the Accounting Policies were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANDSALE LIMITED |
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Coventry University |
Technology Park |
Puma Way |
Coventry |
CV1 2TT |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 July 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ |
TURNOVER | 4 | 20,936,571 | 22,473,455 |
Cost of sales | 14,596,351 | 17,045,618 |
GROSS PROFIT | 6,340,220 | 5,427,837 |
Administrative expenses | 4,992,596 | 6,429,195 |
GROUP OPERATING PROFIT/(LOSS) | 6 | 1,347,624 | (1,001,358 | ) |
Share of operating profit/(loss) in |
Associates | 1,295 | (214 | ) |
Interest receivable and similar income | 44,462 | 45,385 |
1,393,381 | (956,187 | ) |
Interest payable and similar expenses | 8 | 1,317,432 | 1,138,267 |
PROFIT/(LOSS) BEFORE TAXATION | 75,949 | (2,094,454 | ) |
Tax on profit/(loss) | 9 | 574,760 | 10,540 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (498,811 | ) | (2,104,994 | ) |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 July 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ |
LOSS FOR THE YEAR | (498,811 | ) | (2,104,994 | ) |
OTHER COMPREHENSIVE INCOME |
Revaluation reserves | 627,000 | - |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
627,000 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
128,189 |
(2,104,994 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 128,189 | (2,104,994 | ) |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
CONSOLIDATED BALANCE SHEET |
31 July 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | - | - |
Tangible assets | 13 | 28,801,227 | 35,377,767 |
Investments | 14 |
Interest in associate | 184,701 | 183,406 |
28,985,928 | 35,561,173 |
CURRENT ASSETS |
Debtors | 15 | 4,271,191 | 4,646,513 |
Cash at bank and in hand | 16 | 1,656,984 | 972,935 |
5,928,175 | 5,619,448 |
CREDITORS |
Amounts falling due within one year | 17 | 4,962,075 | 5,751,434 |
NET CURRENT ASSETS/(LIABILITIES) | 966,100 | (131,986 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
29,952,028 |
35,429,187 |
CREDITORS |
Amounts falling due after more than one year | 18 | (14,637,500 | ) | (17,648,958 | ) |
PROVISIONS FOR LIABILITIES | 22 | (2,220,820 | ) | (1,642,711 | ) |
NET ASSETS | 13,093,708 | 16,137,518 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 100 | 99 |
Revaluation reserve | 24 | 5,379,666 | 4,752,666 |
Other reserves | 24 | 2,030,013 | 4,640,013 |
Retained earnings | 24 | 5,683,929 | 6,744,740 |
SHAREHOLDERS' FUNDS | 13,093,708 | 16,137,518 |
The financial statements were approved by the Board of Directors and authorised for issue on 24 April 2025 and were signed on its behalf by: |
B C Sodha - Director |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
COMPANY BALANCE SHEET |
31 July 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank and in hand | 16 |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 18 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Retained earnings | 24 |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (618,488 | ) | (896,047 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 July 2024 |
Called up |
share | Retained | Revaluation | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 August 2022 | 99 | 9,375,837 | 4,752,666 | 4,640,013 | 18,768,615 |
Changes in equity |
Revaluations | - | (526,103 | ) | - | - | (526,103 | ) |
Total comprehensive income | - | (2,104,994 | ) | - | - | (2,104,994 | ) |
Balance at 31 July 2023 | 99 | 6,744,740 | 4,752,666 | 4,640,013 | 16,137,518 |
Changes in equity |
Issue of share capital | 1 | - | - | - | 1 |
Dividends | - | (562,000 | ) | - | - | (562,000 | ) |
Revaluations | - | - | - | (2,610,000 | ) | (2,610,000 | ) |
Total comprehensive income | - | (498,811 | ) | 627,000 | - | 128,189 |
Balance at 31 July 2024 | 100 | 5,683,929 | 5,379,666 | 2,030,013 | 13,093,708 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 July 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 August 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 July 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 July 2024 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 July 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,517,837 | (244,184 | ) |
Interest paid | (1,316,199 | ) | (1,138,267 | ) |
Interest element of hire purchase or finance lease rental payments paid |
(1,233 |
) |
- |
Tax paid | (112,064 | ) | (330,535 | ) |
Net cash from operating activities | 88,341 | (1,712,986 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (108,483 | ) | (135,968 | ) |
Sale of tangible fixed assets | 3,522,569 | - |
Interest received | 44,462 | 45,385 |
Net cash from investing activities | 3,458,548 | (90,583 | ) |
Cash flows from financing activities |
New loans in year | 399,879 | 946,106 |
Loan repayments in year | (3,011,458 | ) | (1,212,500 | ) |
Amount introduced by directors | 677,000 | 405,006 |
Amount withdrawn by directors | (366,261 | ) | (299,236 | ) |
Equity dividends paid | (562,000 | ) | - |
Net cash from financing activities | (2,862,840 | ) | (160,624 | ) |
Increase/(decrease) in cash and cash equivalents | 684,049 | (1,964,193 | ) |
Cash and cash equivalents at beginning of year |
2 |
972,935 |
2,937,128 |
Cash and cash equivalents at end of year | 2 | 1,656,984 | 972,935 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 July 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.7.24 | 31.7.23 |
£ | £ |
Profit/(loss) before taxation | 75,949 | (2,094,454 | ) |
Depreciation charges | 210,428 | 262,102 |
Loss on disposal of fixed assets | 969,026 | - |
Share of profit of associates | (1,295 | ) | 214 |
Accrued expenses | (21,693 | ) | 258,169 |
Finance costs | 1,317,432 | 1,138,267 |
Finance income | (44,462 | ) | (45,385 | ) |
2,505,385 | (481,087 | ) |
Decrease/(increase) in trade and other debtors | 64,583 | (101,615 | ) |
(Decrease)/increase in trade and other creditors | (1,052,131 | ) | 338,518 |
Cash generated from operations | 1,517,837 | (244,184 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 July 2024 |
31.7.24 | 1.8.23 |
£ | £ |
Cash and cash equivalents | 1,656,984 | 972,935 |
Year ended 31 July 2023 |
31.7.23 | 1.8.22 |
£ | £ |
Cash and cash equivalents | 972,935 | 2,937,128 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 July 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.8.23 | Cash flow | At 31.7.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 972,935 | 684,049 | 1,656,984 |
972,935 | 684,049 | 1,656,984 |
Debt |
Debts falling due within 1 year | (1,915,195 | ) | (399,879 | ) | (2,315,074 | ) |
Debts falling due after 1 year | (17,648,958 | ) | 3,011,458 | (14,637,500 | ) |
(19,564,153 | ) | 2,611,579 | (16,952,574 | ) |
Total | (18,591,218 | ) | 3,295,628 | (15,295,590 | ) |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 July 2024 |
1. | STATUTORY INFORMATION |
Handsale Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
Both the group and company financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Critical accounting judgements and key sources of estimation uncertainty |
No significant judgements have been made by the directors in preparing these financial statements. |
The group makes estimates and assumptions concerning the future which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
The directors have made key assumption in determining the carrying amount of balances receivable from group undertaking after giving consideration to past experience of collecting payments and the financial position of the relevant group undertaking. A different assessment of these considerations may result in different values being determined. |
Revenue recognition |
Revenue is measured at fair value of the consideration received or receivable and represents fees receivable on contracts for the provision of residential care. Revenue is recognised on a daily basis as the service is provided. |
Goodwill |
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years. Goodwill is assessed for impairment when there are indication of impairment and is charged to the income statement. Reversal of impairments are not recognised. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors, cash and cash equivalents, trade and other payables, and loans and borrowings. |
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. |
Loans and receivables |
Loans and receivables are non-derivative financial assets with fixed or determinable payments. |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value at their nominal amount less impairment losses if due in less than 12 months. Subsequent to initial recognition, trade and other receivables are valued at amortised cost less impairment losses. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash balances and call deposits. The cash and cash equivalents are stated at their nominal values, as this approximates to amortised cost. |
Other financial liabilities |
Other financial liabilities are subsequently measured at amortised cost using the effective interest method. |
Loans and borrowings |
These are initially recognised at fair value, based upon the nominal amount outstanding. Subsequent to initial recognition, they are recorded at amortised cost. Borrowing costs arising on bank borrowings are expensed as incurred within financial expense using the effective interest method. |
Trade and other payables |
Trade and other payables are initially recognised at fair value, based upon the nominal amount outstanding. Subsequent to initial recognition, they are recorded at amortised cost. |
Impairment of financial assets |
For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of estimated future cash flows. |
Offsetting of financial instruments |
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. |
Employee benefits |
Payment to defined plans are recognised as an expense when employees have rendered services entitling them to the contributions. |
The cost of any unused holiday entitlement is recognised as an expense in the period in which the employee's services are received. |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. |
Current tax |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before tax' as reported in the profit and loss account because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
Deferred tax |
A deferred tax asset or liability is recognised for tax recoverable or payable in future periods in respect of transactions and events recognised in the financial statements of current and previous periods. |
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. Timing differences result from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. |
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of timing differences. |
Operating leases |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. |
Leases payments are recognised as an expense over the term on a straight line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight line basis. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
Having reviewed the group's performance, financial forecasts and expected future cash flows, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus they have adopted the going concern basis in preparing the group financial statements for the period ended 31 July 2024. |
Disclosure exemptions |
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102: |
(a) Disclosures in respect of each class of share capital have not been presented. |
(b) No cash flow statement has been presented for the company. |
(c) Disclosures in respect of financial instruments have not been presented. |
(d) No disclosure has been given for the aggregate remuneration of key management personnel. |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
3. | ACCOUNTING POLICIES - continued |
Consolidation |
The consolidated financial statements incorporate the consolidated financial statements of the company and all the group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised. The results of the companies acquired or disposed of are included in the consolidated profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the consolidated financial statements by virtue of section 408 of Companies act 2006. |
A subsidiary is an entity that is controlled by the parent control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiary undertakings are included in the consolidated profit and loss account from the date that control commences until the date that control ceases. Control is established when the company has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the group takes into consideration potential voting rights that are currently exercisable. |
An associate is an entity being neither a subsidiary nor a joint venture in which the group holds a long term interest and has significant influence, over the operating and financial policies of the entity. |
In the parent financial statements, investments in subsidiaries and associates are carried at cost less impairment and tangible fixed assets with net revaluation gains recognised in Other Comprehensive Income and net revaluation losses in profit or loss. |
Amortisation |
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: |
Goodwill - 20% on straight line basis |
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates. |
Tangible Assets |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Land and Buildings are stated at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
Depreciation |
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: |
Freehold properties - 2% per annum on straight line basis |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
3. | ACCOUNTING POLICIES - continued |
Fixtures and fittings - 15% per annum on reducing balance basis |
Motor vehicles - 25% per annum on reducing balance basis |
Investment in associate |
Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate. |
Impairment of fixed assets |
At each reporting date non-financial assets not carried at fair value, like goodwill, tangible assets and investments in group undertakings are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
An impairment loss recognised for goodwill is not reversed. Impairment losses recognised for other assets are reversed only if the reasons for the impairment have ceased to apply. |
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. A reversal of an impairment loss is recognised immediately in profit or loss. |
Provisions |
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in the profit and loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the profit or loss in the period in which it arises. |
4. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
31.7.24 | 31.7.23 |
£ | £ |
Residential care home income | 20,936,571 | 22,473,455 |
20,936,571 | 22,473,455 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
4. | TURNOVER - continued |
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom. |
5. | EMPLOYEES AND DIRECTORS |
31.7.24 | 31.7.23 |
£ | £ |
Wages and salaries | 11,955,326 | 13,282,204 |
Social security costs | 976,868 | 1,040,098 |
Other pension costs | 215,024 | 241,326 |
13,147,218 | 14,563,628 |
The average number of employees during the year was as follows: |
31.7.24 | 31.7.23 |
Management Staff | 538 | 15 |
Care home staff | 14 | 621 |
Employee Benefits |
Defined contribution plans |
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £215,382 (2023: £232,771). |
31.7.24 | 31.7.23 |
£ | £ |
Directors' remuneration | 102,588 | 94,091 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
6. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging: |
31.7.24 | 31.7.23 |
£ | £ |
Other operating leases | 493,354 | 1,213,355 |
Depreciation - owned assets | 210,428 | 268,901 |
Loss on disposal of fixed assets | 969,026 | - |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
7. | AUDITORS' REMUNERATION |
Fees payable for the audit of the financial statements is £13,200 (2023: £13,200). |
Fees payable to the company's auditor and its associates for other services: |
Other non-audit services £732 (2023: £732). |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.7.24 | 31.7.23 |
£ | £ |
Bank interest | 324,102 | 261,461 |
Bank loan interest | 992,052 | 873,081 |
Interest payable | 45 | 3,725 |
Leasing | 1,233 | - |
1,317,432 | 1,138,267 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.7.24 | 31.7.23 |
£ | £ |
Current tax: |
UK corporation tax | (3,350 | ) | (2,666 | ) |
Deferred tax | 578,110 | 13,206 |
Tax on profit/(loss) | 574,760 | 10,540 |
UK corporation tax has been charged at 25 % (2023 - 19 %). |
Tax effects relating to effects of other comprehensive income |
31.7.24 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation reserves | 627,000 | - | 627,000 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
11. | DIVIDENDS |
31.7.24 | 31.7.23 |
£ | £ |
Ordinary Shares shares of 1 each |
Final | 562,000 | - |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 August 2023 |
and 31 July 2024 | 1,282,023 |
AMORTISATION |
At 1 August 2023 |
and 31 July 2024 | 1,282,023 |
NET BOOK VALUE |
At 31 July 2024 | - |
At 31 July 2023 | - |
Company |
Goodwill |
£ |
COST |
At 1 August 2023 |
and 31 July 2024 |
AMORTISATION |
At 1 August 2023 |
and 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 August 2023 | 36,439,263 | 5,904 | 1,414,114 |
Additions | - | - | 65,337 |
Disposals | (4,446,893 | ) | - | (226,468 | ) |
Revaluations | (1,940,556 | ) | - | - |
At 31 July 2024 | 30,051,814 | 5,904 | 1,252,983 |
DEPRECIATION |
At 1 August 2023 | 1,595,190 | 4,532 | 884,497 |
Charge for year | 133,517 | 274 | 65,309 |
Eliminated on disposal | (114,826 | ) | - | (66,940 | ) |
Revaluation adjustments | 42,444 | - | - |
At 31 July 2024 | 1,656,325 | 4,806 | 882,866 |
NET BOOK VALUE |
At 31 July 2024 | 28,395,489 | 1,098 | 370,117 |
At 31 July 2023 | 34,844,073 | 1,372 | 529,617 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 August 2023 | 9,240 | 11,359 | 37,879,880 |
Additions | 43,146 | - | 108,483 |
Disposals | - | - | (4,673,361 | ) |
Revaluations | - | - | (1,940,556 | ) |
At 31 July 2024 | 52,386 | 11,359 | 31,374,446 |
DEPRECIATION |
At 1 August 2023 | 9,240 | 8,654 | 2,502,113 |
Charge for year | 10,787 | 541 | 210,428 |
Eliminated on disposal | - | - | (181,766 | ) |
Revaluation adjustments | - | - | 42,444 |
At 31 July 2024 | 20,027 | 9,195 | 2,573,219 |
NET BOOK VALUE |
At 31 July 2024 | 32,359 | 2,164 | 28,801,227 |
At 31 July 2023 | - | 2,705 | 35,377,767 |
Cost or valuation at 31 July 2024 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 2021 | 36,092,678 | 5,904 | 1,094,126 |
Valuation in 2022 | 346,585 | - | 177,221 |
Valuation in 2023 | - | - | 142,767 |
Valuation in 2024 | (6,387,449 | ) | - | (161,131 | ) |
30,051,814 | 5,904 | 1,252,983 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2021 | 16,789 | 11,359 | 37,220,856 |
Valuation in 2022 | (7,549 | ) | - | 516,257 |
Valuation in 2023 | - | - | 142,767 |
Valuation in 2024 | 43,146 | - | (6,505,434 | ) |
52,386 | 11,359 | 31,374,446 |
Company |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 August 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 July 2024 |
DEPRECIATION |
At 1 August 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
The freehold property is an operating residential care homes. |
The freehold property was revalued on 10 January 2019 by Andrew Surgenor BSc (Hons) MRICS who is a Senior Director at CBRE Limited. Freehold property is included at fair value. Gains are recognised in the Statement of Comprehensive Income. Deferred taxation on these gains are charged where applicable. |
The historical cost of the revalued property is £1,329,208. |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
14. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST OR VALUATION |
At 1 August 2023 | 183,406 |
Share of profit/(loss) | 1,295 |
At 31 July 2024 | 184,701 |
NET BOOK VALUE |
At 31 July 2024 | 184,701 |
At 31 July 2023 | 183,406 |
Cost or valuation at 31 July 2024 is represented by: |
Interest |
in |
associate |
£ |
Valuation in 2021 | 162,581 |
Valuation in 2022 | 21,039 |
Valuation in 2023 | (214 | ) |
Valuation in 2024 | 1,295 |
184,701 |
Company |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1 August 2023 | 3,446,547 |
Disposals | ( |
) | (138,142 | ) |
At 31 July 2024 | 3,308,405 |
NET BOOK VALUE |
At 31 July 2024 | 3,308,405 |
At 31 July 2023 | 3,446,547 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
14. | FIXED ASSET INVESTMENTS - continued |
Handsale Limited has 100% holding in the following companies which operate care homes |
H & H Care Homes Limited - incorporated in England. |
Baron Healthcare (Saltcoats) Limited - incorporated in Scotland. |
Speed 9395 Limited - incorporated in England - the shareholding is in Starcare Homes Limited. |
Balquhidder Care Limited - incorporated in England - the shareholding is in H&H Care Homes Limited. |
Handsale Limited has 100% holding in the following property investment and trading companies |
H&H Care Home Investments Limited - incorporated in England. |
Starcare Homes Limited - incorporated in England. |
GJP Alexandria Limited - incorporated in England - the shareholding is in H&H Care Homes Limited. |
Postgrad Limited - incorporated in England. |
Handsale Priesty Fields Limited - incorporated in England. |
Handsale Limited has 50% holding in the following property investment and trading companies - |
Citywest Investments UK Limited - incorporated in England. |
ANBE Property Management Limited - Incorporated in England - The shareholding is in Citywest Investments |
UK Limited. |
At the year end the aggregate of the share capital and reserves of Postgrad Limited amounted to £371,205 (2023 - £1,139,233) and the loss for the year was £(768,028) (2023 - £(450,039)). |
At the year end the aggregate of the share capital and reserves of H & H Care Homes Limited amounted to £238,176 (2023 - £(450,686)) and the profit for the year was £688,862 (2023 - £(1,474,607)). |
At the year end the aggregate of the share capital and reserves of H&H Care Home Investments Limited amounted to £4,386,451 (2023 - £4,407,475) and the profit for the year was £18,976 (2023 - £146,846). |
At the year end the aggregate of the share capital and reserves of Baron Healthcare (Saltcoats) Limited amounted to £322,267 (2023 - £(170,315)) and the profit for the year was £492,582 (2023 - £72,431). |
At the year end the aggregate of the share capital and reserves of Starcare Homes Limited amounted to £2,713,760 (2023 - £2,716,367) and the loss for the year was £(2,607) (2023 - £(2,448)). |
At the year end the aggregate of the share capital and reserves of Speed 9395 Limited amounted to £10,160,619 (2023 - £8,966,773) and the profit for the year was £1,193,846 (2023 - £845,289). |
At the year end the aggregate of the share capital and reserves of Handsale Priesty Fields Limited amounted to £(1,316,068) (2023 - £(1,279,584)) and the loss for the year was £(36,484) (2023 - £(793,852)). |
At the year end the aggregate of the share capital and reserves of Balquhidder Care Limited amounted to £(766,034) (2023 - £(722,507)) and the loss for the year was £(43,527) (2023 - £(309,540)). |
At the year end the aggregate of the share capital and reserves of GJP Alexandria Limited amounted to £638,219 (2023 - £1,534,595) and the profit for the year was £153,624 (2023 - £231,083). |
At the year end the aggregate of the share capital and reserves of Citywest Investments UK Limited amounted to £165,026 (2023 - £162,436) and the profit for the year was £2,590 (2023 - £(116)). |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
14. | FIXED ASSET INVESTMENTS - continued |
At the year end the aggregate of the share capital and reserves of ANBE Property Management Limited amounted to £34,925 (2023 - £34,925) and the profit for the year was £0 (2023 - £(312). |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.7.24 | 31.7.23 | 31.7.24 | 31.7.23 |
£ | £ | £ | £ |
Trade debtors | 1,124,859 | 1,188,665 |
Amounts owed by associates | 123,988 | 123,988 |
Other debtors | 754,525 | 802,037 |
Directors' current accounts | 2,100,771 | 2,411,510 | 2,100,771 | 2,411,510 |
Prepayments | 167,048 | 120,313 |
4,271,191 | 4,646,513 |
16. | CASH AT BANK AND IN HAND |
Cash and cash equivalents comprise the following: |
Group |
Cash at bank and in hand was £1,788,354 (2023: £972,935). |
Company |
Cash at bank and in hand was £213,015 (2023: £352,251). |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.7.24 | 31.7.23 | 31.7.24 | 31.7.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 962,500 | 962,500 |
Other loans (see note 19) | 1,352,574 | 952,695 |
Trade creditors | 321,419 | 902,297 |
Amounts owed to group undertakings | - | - |
Tax | - | 115,414 |
Social security and other taxes | 92,613 | 237,805 |
Wages | 8,822 | 7,493 | - | - |
Pension | 22,407 | 26,330 | 16,284 | 20,208 |
Retirement benefit scheme | - | 13,831 | - | 13,831 |
Other creditors | 614,555 | 929,944 |
Credit card | 9,466 | 3,713 | 9,466 | 3,713 |
Accruals and deferred income | 1,577,719 | 1,599,412 |
4,962,075 | 5,751,434 |
The bank loans are secured by a fixed and floating charge on the assets and undertakings of the parent and various group companies. |
The bank loans are also secured by a fixed charge over the freehold properties and Long leasehold properties owned by group companies; namely Caledonia Care Home 7 Sidney Street Saltcoats KA21 5DB, Westerfield Care Home 30 High Calside, Paisley PA2 6BY, Treelands Care Home, Westerhill Road, Fitton Hill, Oldham, OL8 2QH, Balquhidder House Care Home, 1 Charleston Way, Alexandria, G83 0TD, and Swn-Y-Mor Care Centre Scarlet Avenue Port Talbot SA12 7PH. |
They are also secured by a fixed charge over the shares held by the company in H & H Care Homes Limited. |
The bank loan interest is charged at LIBOR plus a margin of 2.55% per annum. The bank loan is repayable on quarterly average instalments of £240,625 (2023 - £240,625). |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.7.24 | 31.7.23 | 31.7.24 | 31.7.23 |
£ | £ | £ | £ |
Bank loans (see note 19) | 12,537,500 | 15,548,958 |
Other loans (see note 19) | 2,100,000 | 2,100,000 |
14,637,500 | 17,648,958 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued |
The bank loans are secured by a fixed and floating charge on the assets and undertakings of the parent and various group companies. |
The bank loans are also secured by a fixed charge over the freehold properties and Long leasehold properties owned by group companies; namely Caledonia Care Home 7 Sidney Street Saltcoats KA21 5DB, Westerfield Care Home 30 High Calside, Paisley PA2 6BY, Treelands Care Home, Westerhill Road, Fitton Hill, Oldham, OL8 2QH, Balquhidder House Care Home, 1 Charleston Way, Alexandria, G83 0TD, and Swn-Y-Mor Care Centre Scarlet Avenue Port Talbot SA12 7PH. |
They are also secured by a fixed charge over the shares held by the company in H & H Care Homes Limited. |
The bank loan interest is charged at LIBOR plus a margin of 2.55% per annum. The bank loan is repayable on quarterly average instalments of £240,625 (2023 - £240,625). |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.7.24 | 31.7.23 | 31.7.24 | 31.7.23 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 962,500 | 962,500 |
Other loans | 1,352,574 | 952,695 |
2,315,074 | 1,915,195 |
Amounts falling due between one and two | years: |
Other loans - 1-2 years | 2,100,000 | 2,100,000 | 2,100,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 12,537,500 | 15,548,958 |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
20. | LEASING AGREEMENTS - continued |
Company |
Non-cancellable operating | leases |
31.7.24 | 31.7.23 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
21. | FINANCIAL INSTRUMENTS |
Financial assets measured at amortised costs comprise cash at bank and in hand of £1,788,354 (2023: £972,935). |
Financial assets that are debt instruments measured at amortised cost comprise trade debtors and other debtors of £4,271,191 (2023: £4,646,513). |
Financial liabilities measured at amortised cost comprise bank overdrafts, bank loans, other loans, other creditors and accrual of £22,321,254 (2023: £25,043,103). |
22. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.7.24 | 31.7.23 | 31.7.24 | 31.7.23 |
£ | £ | £ | £ |
Deferred tax | 2,220,820 | 1,642,711 | 26,129 | 27,691 |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2023 | 1,642,711 |
Provided during year | 578,109 |
Balance at 31 July 2024 | 2,220,820 |
Company |
Deferred |
tax |
£ |
Balance at 1 August 2023 |
Provided during year | ( |
) |
Balance at 31 July 2024 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.7.24 | 31.7.23 |
value: | £ | £ |
Ordinary Shares | 1 | 100 | 99 |
24. | RESERVES |
Revaluation reserve - Where tangible fixed assets are revalued the cumulative increase in the fair value of these assets in excess of any previous impairment losses is included in the revaluation reserve and is non-distributable. |
Profit and loss account - the reserve records retained earnings and accumulated losses. |
Reserves on consolidation - where the company acquires the entire issued share capital of another company and receives net assets above the consideration paid, a reserve on consolidation is created and is non-distributable. |
25. | CONTINGENT LIABILITIES |
The company has assigned a fixed charge over its shares in the following subsidiary undertakings: H & H Care Homes Limited, H & H Care Home Investments Limited and Postgrad Limited. |
The company has also agreed to a floating charge over all of its property or undertakings. |
26. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 July 2024 and 31 July 2023: |
31.7.24 | 31.7.23 |
£ | £ |
B C Sodha |
Balance outstanding at start of year | 1,205,828 | 1,258,712 |
Amounts advanced | 183,058 | 149,618 |
Amounts repaid | (338,500 | ) | (202,502 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,050,386 | 1,205,828 |
Mrs B B Sodha |
Balance outstanding at start of year | 1,205,826 | 1,258,711 |
Amounts advanced | 183,059 | 149,618 |
Amounts repaid | (338,500 | ) | (202,503 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,050,385 | 1,205,826 |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
26. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
R B Sodha |
Balance outstanding at start of year | (144 | ) | (144 | ) |
Amounts advanced | 144 | - |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | (144 | ) |
27. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
The entities listed below are related by virtue of common directorships, trusteeship and direct and indirect shareholding of B C Sodha and B B Sodha. |
The following transaction were undertaken during the year with the company - |
A. Starcare Homes Limited |
Balance payable by the company is £35,038 (2023: £35,038). |
B. Speed 9395 Limited |
Balance payable by the company is £799,927 (2023: £804,677). |
C. Citywest Investments UK Limited |
Balance receivable by the company is £123,988 (2023: £123,988). |
D. Baron Healthcare (Saltcoats) Limited |
Balance receivable by the company is £7,364,473 (2023: £7,359,485). |
E. Handsale Priesty Fields Limited |
Balance receivable by the company is £1,291,245 (2023: £1,394,875). |
F. Postgrad Limited |
Balance receivable by the company is £660,271 (2023: £679,889). |
G. H & H Care Homes Limited |
Balance payable by the company is £14,912,421 (2023: £14,915,903). |
H. H & H Care Home Investments Limited |
Balance receivable by the company is £5,093,841 (2023: £5,093,841). |
I. Balquhidder Care Limited |
Balance receivable by the company is 164 (2023: NIL). |
J. GJP Alexandria Limited |
Balance receivable by the company is NIL (2023: NIL). |
HANDSALE LIMITED (REGISTERED NUMBER: 02145485) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2024 |
28. | ULTIMATE CONTROLLING PARTY |
The group is under the control of B C Sodha and B B Sodha who are the directors and 100% equity shareholders throughout the current and previous year. |
The entity's business is carried out from it's Head office based at |
3rd Floor Westbury House |
23-25 Bridge Street |
Pinner |
Middlesex HA5 3HR |
The Group financial statements can be obtained from here. |
29. | IMPACT OF THE CORONAVIRUS PANDEMIC ON THE GROUP |
The group has been very pro-active and taken the necessary measures to prevent cases of Covid-19 in all their care homes especially in providing personal protective equipment (PPE) to all their staff and ensuring the care homes are kept free of the virus as much as possible by the infection control measures undertaken and obtaining access to Covid-19 testing for all their staff and residents. Where possible, cohorted units have been created to isolate those with Covid-19 symptoms and to create a safe and sustainable admissions process. |