Company registration number 12741021 (England and Wales)
BLOOMCARE GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
BLOOMCARE GROUP LTD
COMPANY INFORMATION
Directors
Mr L Ramos
Mrs A Tan-Ramos
Company number
12741021
Registered office
34 Scarisbrick New Road
Southport
PR8 6QE
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
BLOOMCARE GROUP LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 36
BLOOMCARE GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The directors present the strategic report for the year period ended 31 July 2024.
Principal activities
The principal activity of the group is the provision of high-quality specialist care services, with a continued focus on individuals with dementia and complex needs.
Business Review
During the year, the group undertook a strategic review of its operational estate, resulting in the closure of one underperforming facility and the disposal of two externally rented units post year-end. These actions were part of our commitment to optimising performance and ensuring financial and operational sustainability across the group.
We continue to invest in digital innovation to support the business. This includes the implementation of a new applicant tracking system to attract and retain top talent, and a CRM-driven admissions process to streamline onboarding and enhance family engagement. These tools are already improving the way we interact with both staff and residents and are expected to form the foundation for further digital improvements in the year ahead.
Despite continued macroeconomic challenges, including increased overheads and staffing costs, the group maintained strong occupancy levels driven by its reputation and commitment to quality.
Environmental, Social and Governance (ESG) Commitment
The group remains focused on delivering positive social outcomes in the communities it serves. We continue to support employment and career development opportunities in the North West and are expanding our international recruitment efforts to address ongoing workforce pressures.
Environmentally, we are reviewing opportunities for efficiency across our estate, including energy usage and sustainable procurement. From a governance perspective, board-level reviews of risk and sustainability remain a key part of our strategic agenda, ensuring transparency and resilience.
Future developments
The group plans to continue growing through strategic acquisitions over the coming years. Historically, our focus has been on acquiring underperforming care homes with turnaround potential, and we have consistently demonstrated success in transforming these into high-performing, sustainable assets.
Alongside our acquisition strategy, we expect to see organic growth as newer homes stabilise and begin achieving their operational and financial KPIs. This dual approach of disciplined expansion and internal performance enhancement will continue to drive our group’s progress.
Principal risks and uncertainties
Credit Risk: Largely mitigated through partnerships with local authorities.
Liquidity Risk: Monitored closely to ensure the group can meet obligations.
Interest Rate Risk: Borrowings are variable rate; hedging options are reviewed where appropriate.
Competitor Pressure: Managed through brand development and ongoing regulatory compliance.
Key Personnel Risk: Addressed via succession planning, market-aligned compensation, and leadership development.
BLOOMCARE GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Key performance indicators
Turnover: Increased approximately 4% year-on-year, primarily due to a rise in average weekly fees.
Gross Profit Margin: Improved from 23% to 24%.
CQC Ratings: Homes rated "Requires Improvement" remain under active quality oversight, supported by a dedicated Director of Care, Quality and Compliance.
Labour Margin: While the use of agency staff remained high, the company is actively shifting towards a strategic recruitment model. Significant effort has gone into overseas recruitment and strengthening local staffing pipelines, with support from a newly implemented applicant tracking system to streamline hiring and reduce reliance on agency labour in future periods.
Mr L Ramos
Director
25 April 2025
BLOOMCARE GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the group is the provision of high-quality specialist care services, with a continued focus on individuals with dementia and complex needs.
The principal activity of the company is that of a parent company of a trading group.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr L Ramos
Mrs A Tan-Ramos
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of risk management objectives and policies.
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 auditor of the company 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 auditor of the company is aware of that information.
BLOOMCARE GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr L Ramos
Director
25 April 2025
BLOOMCARE GROUP LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BLOOMCARE GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLOOMCARE GROUP LTD
- 6 -
Opinion
We have audited the financial statements of Bloomcare Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and the parent company's 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.
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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.
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.
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 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.
BLOOMCARE GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BLOOMCARE GROUP LTD
- 7 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Matters on which we are required to report by exception
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 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.
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 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
BLOOMCARE GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BLOOMCARE GROUP LTD
- 8 -
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
Enquires with management about any known or suspected instances of fraud;
Auditing the risk of fraud in revenue by way of proof in total for a sample of occupants and review of post year end credit notes raised;
Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls;
Assessing management's significant judgements and estimate;
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Paul Williams BA(Hons) FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
25 April 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
BLOOMCARE GROUP LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
28,589,134
27,536,569
Cost of sales
(21,670,852)
(21,204,594)
Gross profit
6,918,282
6,331,975
Administrative expenses
(7,694,618)
(6,708,884)
Other operating income
486,170
304,214
Operating loss
4
(290,166)
(72,695)
Interest receivable and similar income
7
672,318
586,833
Interest payable and similar expenses
8
(1,008,344)
(830,011)
Loss before taxation
(626,192)
(315,873)
Tax on loss
9
3,931
50,371
Loss for the financial year
(622,261)
(265,502)
Loss for the financial year is attributable to:
- Owners of the parent company
(676,516)
(381,554)
- Non-controlling interests
54,255
116,052
(622,261)
(265,502)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(676,516)
(381,554)
- Non-controlling interests
54,255
116,052
(622,261)
(265,502)
BLOOMCARE GROUP LTD
GROUP BALANCE SHEET
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
54,483
85,616
Tangible assets
13
6,408,834
6,695,272
6,463,317
6,780,888
Current assets
Debtors
16
9,484,506
9,587,358
Cash at bank and in hand
1,597,335
528,086
11,081,841
10,115,444
Creditors: amounts falling due within one year
17
(6,546,185)
(5,308,416)
Net current assets
4,535,656
4,807,028
Total assets less current liabilities
10,998,973
11,587,916
Creditors: amounts falling due after more than one year
18
(8,085,584)
(7,974,988)
Provisions for liabilities
Deferred tax liability
21
63,092
140,370
(63,092)
(140,370)
Net assets
2,850,297
3,472,558
Capital and reserves
Called up share capital
24
244
244
Other reserves
3,710,637
3,710,637
Profit and loss reserves
(1,960,450)
(1,283,934)
Equity attributable to owners of the parent company
1,750,431
2,426,947
Non-controlling interests
1,099,866
1,045,611
2,850,297
3,472,558
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
BLOOMCARE GROUP LTD
GROUP BALANCE SHEET (CONTINUED)
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 25 April 2025 and are signed on its behalf by:
25 April 2025
Mr L Ramos
Director
Company registration number 12741021 (England and Wales)
BLOOMCARE GROUP LTD
COMPANY BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
42,879
58,544
Investments
14
3,711,079
3,711,079
3,753,958
3,769,623
Current assets
Debtors
16
8,583,444
8,779,016
Cash at bank and in hand
42,929
83,357
8,626,373
8,862,373
Creditors: amounts falling due within one year
17
(1,462,775)
(930,114)
Net current assets
7,163,598
7,932,259
Total assets less current liabilities
10,917,556
11,701,882
Creditors: amounts falling due after more than one year
18
(7,608,316)
(7,974,988)
Provisions for liabilities
Deferred tax liability
21
4,910
7,550
(4,910)
(7,550)
Net assets
3,304,330
3,719,344
Capital and reserves
Called up share capital
24
244
244
Other reserves
3,710,637
3,710,637
Profit and loss reserves
(406,551)
8,463
Total equity
3,304,330
3,719,344
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the period was £415,013 (2023 - £326,021 profit).
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 25 April 2025 and are signed on its behalf by:
25 April 2025
Mr L Ramos
Director
Company registration number 12741021 (England and Wales)
BLOOMCARE GROUP LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
Share capital
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 August 2022
244
3,710,637
(582,380)
3,128,501
995,223
4,123,724
Year ended 31 July 2023:
Loss and total comprehensive income
-
-
(381,554)
(381,554)
116,052
(265,502)
Dividends
10
-
-
(320,000)
(320,000)
(65,664)
(385,664)
Balance at 31 July 2023
244
3,710,637
(1,283,934)
2,426,947
1,045,611
3,472,558
Year ended 31 July 2024:
Loss and total comprehensive income
-
-
(676,516)
(676,516)
54,255
(622,261)
Balance at 31 July 2024
244
3,710,637
(1,960,450)
1,750,431
1,099,866
2,850,297
BLOOMCARE GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
244
3,710,637
2,441
3,713,322
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
-
326,022
326,022
Dividends
10
-
-
(320,000)
(320,000)
Balance at 31 July 2023
244
3,710,637
8,463
3,719,344
Year ended 31 July 2024:
Profit and total comprehensive income
-
-
(415,014)
(415,014)
Balance at 31 July 2024
244
3,710,637
(406,551)
3,304,330
BLOOMCARE GROUP LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
2,748,669
2,065,557
Interest paid
(1,008,344)
(830,011)
Income taxes paid
(69,576)
(124,050)
Net cash inflow from operating activities
1,670,749
1,111,496
Investing activities
Purchase of tangible fixed assets
(429,927)
(682,296)
Advances to particpators
(711,576)
(395,389)
Interest received
672,318
586,833
Net cash used in investing activities
(469,185)
(490,852)
Financing activities
Proceeds from borrowings
498,019
-
Repayment of bank loans
(628,036)
(533,591)
Payment of finance leases obligations
(2,298)
-
Dividends paid to equity shareholders
65,664
Dividends paid to non-controlling interests
(65,664)
Net cash used in financing activities
(132,315)
(533,591)
Net increase in cash and cash equivalents
1,069,249
87,053
Cash and cash equivalents at beginning of year
528,086
441,033
Cash and cash equivalents at end of year
1,597,335
528,086
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
1
Accounting policies
Company information
Bloomcare Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 34 Scarisbrick New Road, Southport, PR8 6QE.
The group consists of Bloomcare Group Ltd and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being the parent member of a group which prepares these consolidated financial statements, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. This company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within these consolidated financial statements:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts of financial instruments;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries are accounted for at cost less impairment.
Any deferred tax movements on assets previously revalued in subsidiary companies prior to the acquisition date is reflected in the profit and loss account.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Bloomcare Group Ltd together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 July 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions and balances between group companies are eliminated on consolidation.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
1.4
Going concern
At the time of approving the financial statements, the directors have considered the group's financial position and performance and have prepared detailed forecasts covering the period to July 2026.
With occupancy levels steadily reclaiming their pre-pandemic heights and showing promising growth in the upcoming periods, the group remains confident in its path to recovery. Despite the lingering challenges posed by the pandemic, including the higher use of agency staff and increased operational costs, the group has managed to maintain profitability.
.Although certain banking covenants have been impacted previously, post year-end, in October 2024 and January 2025 covenants have no longer been breached. The calculations indicate that key performance indicators are trending positively, reflecting a robust recovery within the Group. It’s key lender has expressed a willingness to extend their lending facilities upon the conclusion of our current agreement in April 2026. Overall, the bank's support reflects their confidence in our recovery and long-term performance.
The recent strengthening of the Senior Management Team and the implementation of a new strategic plan instil great confidence in the directors that the group will soon return to its previous levels of performance.
Based on the above, at the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.5
Turnover
Turnover represents the invoiced sales of care home accommodation and nursing services excluding VAT.
Revenue from contracts for the provision of care home and nursing services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably, The stage of completion is calculated by reference to the period of stay within the carehome and only when nursing services are recognised and subsequently invoiced. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
1.7
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.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
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:
Freehold buildings
Straight line at 2%
Leasehold buildings
Straight line at 20%
Plant and equipment
Straight line at 20%
Fixtures, fittings and equipment
Straight line at 20%-25%
Office equipment
Straight line at 20%-33%
Motor vehicles
Straight line at 20%
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 recognised in the profit and loss account.
1.8
Fixed asset investments
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -
Other financial assets
All of the group's financial assets are basic financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. Trade creditors are recognised initially at transaction price.
Other financial liabilities
All of the group's financial liabilities are basic financial instruments.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
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.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 21 -
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 leased asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
Assessing indicators of impairment
In assessing whether there have been any indicators of impaired assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no material indicators of impairment identified during the current financial year.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful lives of freehold land and buildings
The company depreciates tangible assets over their estimated useful lives. The estimation of useful lives of assets is based on expectations about future use as well as historic performance and therefore requires management to make some estimates based on assumptions.
The actual lives of assets, specifically buildings, can vary significantly due to external environmental factors and dilapidation, as well as the effect regular maintenance.
Estimating fair value of property
The group opts to revalue property such that the value of property in the accounts adequately reflects the current market value at the date of valuation.
This requires some element of judgement as the directors have to estimate what they consider to be a fair market value. This is based on current market valuations of similar properties, and where applicable, they obtain advice from qualified professionals to support their estimates.
Provision for bad and doubtful debts
Throughout the year the companies review the amounts receivable and makes a provision for bad and doubtful debts based on their knowledge of the circumstances and historic debt recovery.
3
Turnover and other revenue
All of the group's turnover is derived from the principal activity of the group and relates to sales made in the United Kingdom.
2024
2023
£
£
Turnover analysed by class of business
Operation of care centres
28,589,134
27,536,569
2024
2023
£
£
Other revenue
Interest income
672,318
586,833
Grants received
36,250
287,375
All turnover is derived from UK operations.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange gains
(4,221)
-
Government grants
(36,250)
(287,375)
Fees payable to the group's auditor for the audit of the group's financial statements
13,992
13,200
Depreciation of owned tangible fixed assets
556,672
431,009
Depreciation of tangible fixed assets held under finance leases
4,789
-
Impairment of owned tangible fixed assets
193,213
-
Amortisation of intangible assets
31,133
31,133
Operating lease charges
1,383,248
1,538,766
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management and head office
51
46
38
33
Care staff
891
878
-
-
Total
942
924
38
33
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
18,289,452
16,012,770
1,351,875
972,845
Social security costs
1,511,283
1,110,873
140,610
94,329
Pension costs
319,284
315,311
28,411
72,109
20,120,019
17,438,954
1,520,896
1,139,283
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
36,231
38,049
Company pension contributions to defined contribution schemes
58
53,333
36,289
91,382
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
672,318
586,833
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
911,915
797,901
Other interest on financial liabilities
33,086
-
Other interest
63,343
32,110
Total finance costs
1,008,344
830,011
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
73,347
114,893
Deferred tax
Origination and reversal of timing differences
(77,278)
(140,372)
Changes in tax rates
(26,692)
Adjustment in respect of prior periods
1,800
Total deferred tax
(77,278)
(165,264)
Total tax credit
(3,931)
(50,371)
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
9
Taxation
(Continued)
- 25 -
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(626,192)
(315,873)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
(156,548)
(66,365)
Tax effect of expenses that are not deductible in determining taxable profit
20,548
5,167
Change in unrecognised deferred tax assets
69,938
Effect of change in corporation tax rate
-
(26,692)
Depreciation on assets not qualifying for tax allowances
17,185
37,974
Amortisation on assets not qualifying for tax allowances
7,783
6,541
Other non-reversing timing differences
10
Deferred tax adjustments in respect of prior years
1,800
Fixed assets tax adjustments
(11,140)
Impairment of fixed assets
48,303
-
Super-deduction
-
(8,806)
Taxation credit
(3,931)
(50,371)
Factors affecting future tax and charges
In the March 2021 budget the Chancellor confirmed an increase in the main rate of corporation tax from 19% to 25% with effect from 1 April 2023. The Finance Bill 2021 had its third reading on 24 May 2021 and was considered substantively enacted on this date. The deferred tax timing differences expected to reverse on or after 1 April 2023 have therefore been accounted for at 25%.
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
-
320,000
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 26 -
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
13
193,213
-
Recognised in:
Administrative expenses
193,213
-
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
On 19 August 2024, Wellington Healthcare (Arden) Limited transferred operation of two care homes over to a new operator. As part of the transfer, fixed assets with a net book value of £193,213 were disposed of by Wellington Healthcare (Arden) Limited for no proceeds and have therefore been impaired to £nil at the year end.
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 August 2023 and 31 July 2024
155,665
Amortisation and impairment
At 1 August 2023
70,049
Amortisation charged for the year
31,133
At 31 July 2024
101,182
Carrying amount
At 31 July 2024
54,483
At 31 July 2023
85,616
The company had no intangible fixed assets at 31 July 2024 or 31 July 2023.
More information on impairment movements in the year is given in note 11.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
13
Tangible fixed assets
Group
Freehold buildings
Leasehold buildings
Plant and equipment
Fixtures, fittings and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 August 2023
5,452,410
77,915
52,463
1,780,703
148,841
7,248
7,519,580
Additions
79,603
376,155
12,478
468,236
At 31 July 2024
5,452,410
77,915
132,066
2,156,858
161,319
7,248
7,987,816
Depreciation and impairment
At 1 August 2023
131,548
32,051
24,944
568,626
63,062
4,077
824,308
Depreciation charged in the year
58,988
15,636
28,296
422,668
34,061
1,812
561,461
Impairment losses
30,228
822
149,679
12,484
193,213
At 31 July 2024
190,536
77,915
54,062
1,140,973
109,607
5,889
1,578,982
Carrying amount
At 31 July 2024
5,261,874
78,004
1,015,885
51,712
1,359
6,408,834
At 31 July 2023
5,320,862
45,864
27,519
1,212,077
85,779
3,171
6,695,272
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 28 -
Company
Plant and equipment
Fixtures, fittings and equipment
Office equipment
Total
£
£
£
£
Cost or valuation
At 1 August 2023
3,122
32,313
60,763
96,198
Additions
1,729
7,536
9,265
At 31 July 2024
3,122
34,042
68,299
105,463
Depreciation and impairment
At 1 August 2023
291
13,798
23,565
37,654
Depreciation charged in the year
781
8,329
15,820
24,930
At 31 July 2024
1,072
22,127
39,385
62,584
Carrying amount
At 31 July 2024
2,050
11,915
28,914
42,879
At 31 July 2023
2,831
18,515
37,198
58,544
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Fixtures, fittings and equipment
41,182
More information on impairment movements in the year is given in note 11.
Freehold land and buildings were revalued in March 2021 by Frank Knight LLP, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. This is considered to be a reasonable estimate of the current fair value by the directors.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
2024
2023
£
£
Group
Cost
4,122,400
4,122,400
Accumulated depreciation
(418,225)
(372,537)
Carrying value
3,704,175
3,749,863
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 29 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
3,711,079
3,711,079
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2023 and 31 July 2024
3,711,079
Carrying amount
At 31 July 2024
3,711,079
At 31 July 2023
3,711,079
15
Subsidiaries
Details of the company's subsidiaries at 31 July 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Wellington Healthcare (Arden) Ltd
1
Ordinary
100.00
-
Wellington Healthcare Limited
1
Ordinary
100.00
-
Northwest Lighthouse Hub C.I.C.
2
Ordinary
100.00
-
Ramos Healthcare Limited
1
Ordinary
70.00
-
Laburnum House (Shaw) Limited
1
Ordinary
0
70.00
Bloomcare Greengables Ltd
2
Ordinary
100.00
-
Registered office addresses (all UK unless otherwise indicated):
1
34 Scarisbrick New Road, Southport, PR8 6QE
2
17/19 Roe Lane, Southport, PR9 9EB
Wellington Healthcare Limited (company registration number 06377726) and Bloomcare Greengables Limited (company registration number 13909141) have taken the exemption in Section 479A of the Companies Act 2006 ("the Act") from the requirements in the Act for their individual accounts to be audited. The guarantee given by the company under Section 479A of the Act is disclosed in note 22.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 30 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,873,255
2,238,023
Corporation tax recoverable
476,100
235,942
417,569
196,070
Amounts owed by group undertakings
-
-
514,095
1,753,018
Other debtors
6,573,968
6,477,198
7,233,960
6,457,221
Prepayments and accrued income
561,183
636,195
254,269
326,800
9,484,506
9,587,358
8,419,893
8,733,109
Amounts falling due after more than one year:
Deferred tax asset (note 21)
163,551
45,907
Total debtors
9,484,506
9,587,358
8,583,444
8,779,016
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
366,672
628,036
366,672
628,036
Obligations under finance leases
20
6,393
Other borrowings
19
498,019
Trade creditors
587,180
1,634,576
2,018
44,250
Amounts owed to group undertakings
643,501
47,736
Corporation tax payable
567,684
323,755
332,826
140,827
Other taxation and social security
698,130
781,003
-
-
Other creditors
2,582,305
657,490
55,833
100
Accruals and deferred income
1,239,802
1,283,556
61,925
69,165
6,546,185
5,308,416
1,462,775
930,114
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 31 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
7,608,316
7,974,988
7,608,316
7,974,988
Obligations under finance leases
20
29,618
Other creditors
447,650
8,085,584
7,974,988
7,608,316
7,974,988
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
7,974,988
8,603,024
7,974,988
8,603,024
Other loans
498,019
8,473,007
8,603,024
7,974,988
8,603,024
Payable within one year
864,691
628,036
366,672
628,036
Payable after one year
7,608,316
7,974,988
7,608,316
7,974,988
Bank loans consist of a Healthcare Loan Facility ("HLF") of £7,974,988 (2023: £8,341,660) and a Coronavirus Business Interruption Loan ("CBIL") of £nil (2023: £261,364).
The bank loans are secured by fixed charges over the properties owned by the group and related companies, and the shares in the group companies and related companies owned by the shareholders of the group and related companies.
The HLF is for a period of 60 months with no capital repayments for the first 12 months. Repayments thereafter are £30,556 per month for 48 months with a final repayment of £7,333,312 due in April 2026. Interest is charged on the loan at an annual rate of 5.75% + the higher of LIBOR or 0.25%.
The CBIL was for a period of 36 months. Repayments were £34,091 per quarter for 11 quarters with a final repayment of £125,000 due in May 2024. Interest was charged on the loan at an annual rate of 5.28%.
The other loans represent a loan of CHF 552,000 (£498,019) lent to Bloomcare Greengables Limited. The original repayment date of November 2024 was extended to November 2025 post year end, As this extension occurred post year end, the amount has been shown as due within one year in the financial statements. The loan is an interest only loan with interest being charged at 9% per annum.
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 32 -
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
6,393
In two to five years
29,618
36,011
-
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
137,644
142,355
-
-
Tax losses
(408,685)
(329,873)
-
-
Revaluations
337,151
337,151
-
-
Retirement benefit obligations
(3,018)
(9,539)
-
-
Short term timing differences
-
276
-
-
63,092
140,370
-
-
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
4,910
7,550
-
-
Tax losses
-
-
163,551
45,907
4,910
7,550
163,551
45,907
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
21
Deferred taxation
(Continued)
- 33 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(Asset) at 1 August 2023
140,370
(38,357)
Credit to profit or loss
(77,278)
(120,284)
Liability/(Asset) at 31 July 2024
63,092
(158,641)
The company has not finalised its capital expenditure programme for the next financial year and therefore an assessment as to the likely movement of timing differences cannot reasonably be made.
The company had estimated tax losses of £654,204 (2023: £183,628) at the year end.
The group had estimated tax losses of £1,634,740 (2023: £1,319,493) at the year end.
22
Contingent liability
In order for the company's subsidiaries, Wellington Healthcare Limited and Bloomcare Greengables Limited, to take the audit exemption in Section 479A of the Companies Act 2006, the company has guaranteed all outstanding liabilities of both subsidiaries at 31 July 2024 until those liabilities are satisfied in full.
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
319,284
315,311
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
244
244
244
244
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 34 -
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
820,782
1,331,911
-
-
Between two and five years
3,230,716
3,808,883
-
-
In over five years
11,576,000
12,362,000
-
-
15,627,498
17,502,794
-
-
26
Events after the reporting date
In August 2024, Wellington Healthcare (Arden) Limited transferred operations of two care homes over to the local council. As a result, the group has recognised an impairment of £193,213 in these financial statements for tangible fixed assets that were transferred to the new operator.
27
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
548,127
360,277
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Purchases
Purchases
2024
2023
£
£
Company
Other related parties
24,000
24,000
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
27
Related party transactions
(Continued)
- 35 -
Management charges received
Interest received
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
14,400
12,000
672,300
586,270
Company
Entities over which the entity has control, joint control or significant influence
442,560
424,080
257,894
223,920
Other related parties
14,400
12,000
672,300
586,270
During the year, the group paid rent of £1,031,627 (2023: £1,039,200) to other related parties.
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Other related parties
177,588
-
Company
Entities over which the company has control, joint control or significant influence
365,951
47,436
Other related parties
55,833
100
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Key management personnel
1,422,097
708,521
Other related parties
5,327,560
5,763,814
Company
Entities over which the company has control, joint control or significant influence
-
1,006,654
Key management personnel
1,246,397
590,106
Other related parties
5,987,560
5,867,111
BLOOMCARE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 36 -
28
Directors' transactions
Dividends totalling £0 (2023 - £320,000) were paid in the year in respect of shares held by the company's directors.
Loans made to the directors are interest free and repayable on demand.
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Director loan
-
71,578
306,246
377,824
Director loan
-
598,913
370,045
968,958
670,491
676,291
1,346,782
29
Analysis of changes in net debt - group
1 August 2023
Cash flows
New finance leases
31 July 2024
£
£
£
£
Cash at bank and in hand
528,086
1,069,249
-
1,597,335
Borrowings excluding overdrafts
(8,603,024)
130,017
-
(8,473,007)
Obligations under finance leases
-
2,298
(38,309)
(36,011)
(8,074,938)
1,201,564
(38,309)
(6,911,683)
30
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(622,261)
(265,502)
Adjustments for:
Taxation credited
(3,931)
(50,371)
Finance costs
1,008,344
830,011
Investment income
(672,318)
(586,833)
Amortisation and impairment of intangible assets
31,133
31,133
Depreciation and impairment of tangible fixed assets
754,674
431,009
Movements in working capital:
Decrease in debtors
1,054,586
799,066
Increase in creditors
1,198,442
877,044
Cash generated from operations
2,748,669
2,065,557
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