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Registered number: 06322035










Lydian Care Ltd










Financial statements

For the year ended 31 July 2024

 
Lydian Care Ltd
 

Company Information


Director
Pierre Burns 




Company secretary
Claire Burns



Registered number
06322035



Registered office
Unit 6 The Mead Business Centre

Mead Lane

Hertford

Herts

SG13 7BJ




Independent auditor
Sumer Auditco NI Limited
Statutory Auditors

Glendinning House

6 Murray Street

Belfast

B16 6DN




Bankers
AIB (NI)
28 - 32 Main Street

Newcastle

Co Down

Northern Ireland

BT33 0AD





 
Lydian Care Ltd
 

Contents



Page
Strategic report
 
1
Director's report
 
2 - 3
Independent auditor's report
 
4 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Statement of cash flows
 
11
Analysis of net debt
 
12
Notes to the financial statements
 
13 - 24


 
Lydian Care Ltd
 

Strategic report
For the year ended 31 July 2024

Introduction
 
The director presents his Strategic report on the Company for the year ended 31 July 2024.

Principal activity and business review
 
The principal activity of the Company during the year was the provision of care services.
The profit and loss account shows turnover of £11,861,460 (2023: £10,893,595) and profit before tax of £843,610 (2023: £1,150,858).  Net assets at 31 December 2024 were £721,350 (2023: £890,512).
The director considers the results for the year and the financial position of the Company at the year end to be satisfactory and expects the Company to maintain its present level of activity in the foreseeable future. 

Principal risks and uncertainties
 
The Company's operations expose it to a variety of financial risks that include the effects of changes in commodity prices, foreign exchange risk, liquidity risk and interest rate risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company by monitoring levels of debt finance and the related finance costs.
Financial risk management
Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub committee of the board. The policies set by the board of directors are implemented by the Company's finance department.
Credit risk
Credit risk arises from cash and cash equivalents with banks and financial institutions, as well as credit exposure to customers. The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. The financial position of banks and financial institutions utilised is regularly assessed by the board of directors.
 
Liquidity risk
The Company actively maintains a mixture of long term and short term debt finance options that are designed to ensure the Company has sufficient available funds for operations and planned expansions.

Financial key performance indicators
 
The directors consider the key performance indicators to be turnover and operating profit. Turnover for the year was £11,861,460 (2023: £10,893,495) and operating profit was £842,817 (2023:  £1,146,819).


This report was approved by the board on 14 March 2025 and signed on its behalf.


Pierre Burns
Director

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Page 1

 
Lydian Care Ltd
 

 
Director's report
For the year ended 31 July 2024

The director presents his report and the financial statements for the year ended 31 July 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Company's financial statements 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £619,635 (2023 - £904,286).

A dividend of £788,797 (2023: £2,281,000) was paid during the financial year.

Director

The director who served during the year was:

Pierre Burns 

Future developments

The directors consider the results for the year and the position of the company at the year end to be satisfactory and expect the company to maintain its present level of activity in the foreseeable future. 

Engagement with employees

During the year, the policy of providing employees with information about the Company has continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the Company's performance.  Regular meetings are held between local management and employees to allow a free flow of information and ideas.

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Page 2

 
Lydian Care Ltd
 

 
Director's report (continued)
For the year ended 31 July 2024

Disabled employees

As per the Company's equal opportunities policy, all job applicants, employees and others who work for the Company will not be discriminated against in any of the equality grounds, to include disability.  The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person.  Where existing employees become disabled, it is the Company's policy wherever practical to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

Disclosure of information to auditor

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditor is unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Sumer Auditco NI Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 14 March 2025 and signed on its behalf.
 





Pierre Burns
Director

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Page 3

 
Lydian Care Ltd
 

 
Independent auditor's report to the members of Lydian Care Ltd
 

Opinion


We have audited the financial statements of Lydian Care Ltd (the 'Company') for the year ended 31 July 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 July 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.


Other matter
The Company qualified as small under company law for the year ended 31 July 2023 and availed of the small company audit exemption.  The corresponding figures have not been audited.


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Lydian Care Ltd
 

 
Independent auditor's report to the members of Lydian Care Ltd (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's responsibilities statement set out on page 2, the director is 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 director determines 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 director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


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Page 5

 
Lydian Care Ltd
 

 
Independent auditor's report to the members of Lydian Care Ltd (continued)


Auditor's responsibilities for the audit of the financial statements
 

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


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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which they operate, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We considered the opportunities and incentives that may exist within the Company for fraud and identified the greatest potential for fraud is in relation to management override of controls and the recognition of revenue.
We designed audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Our audit procedures included: enquiries of management about their own identification and assessment of risks of irregularities, testing the design and implementation of controls relating to the risks and sample testing of journals posted during the year, substantive sampling of income throughout the year and cut-off tests around the year end to ensure revenue is recorded in the correct period.


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 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 Auditor's report.


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Lydian Care Ltd
 

 
Independent auditor's report to the members of Lydian Care Ltd (continued)


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 2006Our 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.





Adrian Patton (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco NI Limited
 
Statutory Auditors
  
Glendinning House
6 Murray Street
Belfast
B16 6DN

14 March 2025
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Page 7

 
Lydian Care Ltd
 

Statement of comprehensive income
For the year ended 31 July 2024

2024
2023
Note
£
£

  

Turnover
 4 
11,861,460
10,893,595

Cost of sales
  
(9,619,663)
(8,507,742)

Gross profit
  
2,241,797
2,385,853

Administrative expenses
  
(1,398,980)
(1,239,034)

Operating profit
 5 
842,817
1,146,819

Interest receivable and similar income
  
793
4,039

Profit before tax
  
843,610
1,150,858

Tax on profit
 8 
(223,975)
(246,572)

Profit for the financial year
  
619,635
904,286

There was no other comprehensive income for 2024 (2023£Nil).
All amounts relate to continuing operations.

The notes on pages 13 to 24 form part of these financial statements.

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Page 8

 
Lydian Care Ltd
Registered number: 06322035

Balance sheet
As at 31 July 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 10 
1,301
1,486

  
1,301
1,486

Current assets
  

Debtors: amounts falling due within one year
 11 
145,838
244,571

Cash at bank and in hand
 12 
1,216,434
1,245,019

  
1,362,272
1,489,590

Creditors: amounts falling due within one year
 13 
(642,223)
(600,564)

Net current assets
  
 
 
720,049
 
 
889,026

Total assets less current liabilities
  
721,350
890,512

  

Net assets
  
721,350
890,512


Capital and reserves
  

Called up share capital 
 14 
2
2

Profit and loss account
 15 
721,348
890,510

Shareholders' funds
  
721,350
890,512


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 March 2025.




Pierre Burns
Director

The notes on pages 13 to 24 form part of these financial statements. 

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Page 9

 
Lydian Care Ltd
 

Statement of changes in equity
For the year ended 31 July 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 August 2023
2
890,510
890,512



Profit for the year
-
619,635
619,635

Dividends: Equity capital
-
(788,797)
(788,797)


At 31 July 2024
2
721,348
721,350



Statement of changes in equity
For the year ended 31 July 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 August 2022
2
2,267,224
2,267,226



Profit for the year
-
904,286
904,286

Dividends: Equity capital
-
(2,281,000)
(2,281,000)


At 31 July 2023
2
890,510
890,512


The notes on pages 13 to 24 form part of these financial statements.

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Page 10

 
Lydian Care Ltd
 

Statement of cash flows
For the year ended 31 July 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
619,635
904,286

Adjustments for:

Depreciation of tangible assets
1,519
1,532

Interest received
(793)
(4,039)

Taxation charge
223,975
246,572

(Increase)/decrease in debtors
(57,665)
137,929

Increase/(decrease) in creditors
208,449
(33,303)

Corporation tax (paid)
(409,072)
(148,704)

Net cash generated from operating activities

586,048
1,104,273


Cash flows from investing activities

Purchase of intangible fixed assets
(1,334)
(75)

Interest received
793
4,039

Net cash from investing activities

(541)
3,964

Cash flows from financing activities

Loans due from/(repaid to) directors
174,705
(157,314)

Dividends paid
(788,797)
(2,281,000)

Net cash used in financing activities
(614,092)
(2,438,314)

Net (decrease) in cash and cash equivalents
(28,585)
(1,330,077)

Cash and cash equivalents at beginning of year
1,245,019
2,575,096

Cash and cash equivalents at the end of year
1,216,434
1,245,019


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,216,434
1,245,019

1,216,434
1,245,019


The notes on pages 13 to 24 form part of these financial statements.

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Page 11

 
Lydian Care Ltd
 

Analysis of Net Debt
For the year ended 31 July 2024




At 1 August 2023
Cash flows
At 31 July 2024
£

£

£

Cash at bank and in hand

1,245,019

(28,585)

1,216,434

Debt due within 1 year

-

(18,307)

(18,307)


1,245,019
(46,892)
1,198,127

The notes on pages 13 to 24 form part of these financial statements.

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Page 12

 
Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

1.


General information

Lydian Care Ltd is a private company limited by shares and incorporated in England. The registered office is given in the company information section of these financial statements.  The address of the principal place of business is 33 Main Street, Newcastle, Northern Ireland, BT33 0AD.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have a reasonable expectation that the Company has adequate resources available to it to continue operations for the foreseeable future and, accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

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Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

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Page 14

 
Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

2.Accounting policies (continued)

 
2.8

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
straight line
Computer equipment
-
25%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

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Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

2.Accounting policies (continued)

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

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Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

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Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
(a) Critical judgements in applying the entity's accounting policies
There are no critical judgements in applying the entity's accounting policies.
(b) Key accounting estimates and assumptions
Allowance for the impairment of trade debtors
The Company estimates the allowance for doubtful debtors based on assessment of specific accounts where the Company has objective evidence comprising default in payment terms or significant difficulty that certain customers are unable to meet their financial obligations.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the Company.

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
1,519
1,532

Other operating lease rentals
23,961
22,310

Auditor's remuneration
17,000
-

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Page 18

 
Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

6.


Employees

Staff costs, including director's remuneration, were as follows:


2024
2023
£
£

Wages and salaries
9,515,415
8,371,633

Social security costs
795,742
715,855

Cost of defined contribution scheme
284,056
268,580

10,595,213
9,356,068


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Carers and administration
337
317


7.


Director's remuneration

2024
2023
£
£

Director's emoluments
9,516
19,032

Company contributions to defined contribution pension schemes
124,536
120,000

134,052
139,032


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


8.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
223,975
246,572



Tax on profit
223,975
246,572
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Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024
 
8.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 21%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
843,610
1,150,858


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21%)
210,903
241,680

Effects of:


Expenses not deductible for tax purposes
13,290
4,604

Fixed asset differences
(218)
288

Total tax charge for the year
223,975
246,572


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


9.


Dividends

2024
2023
£
£


Dividends paid
788,797
2,281,000

788,797
2,281,000

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Page 20

 
Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

10.


Tangible fixed assets





Fixtures and fittings
Computer equipment
Total

£
£
£



Cost or valuation


At 1 August 2023
59,605
-
59,605


Additions
266
1,068
1,334



At 31 July 2024

59,871
1,068
60,939



Depreciation


At 1 August 2023
58,119
-
58,119


Charge for the year
1,252
267
1,519



At 31 July 2024

59,371
267
59,638



Net book value



At 31 July 2024
500
801
1,301



At 31 July 2023
1,486
-
1,486

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Page 21

 
Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

11.


Debtors

2024
2023
£
£


Trade debtors
107,041
58,908

Amounts owed by related parties
37,985
29,265

Other debtors
812
156,398

145,838
244,571


Amounts owed by group undertakings and related parties are unsecured, interest free and repayable on demand.


12.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,216,434
1,245,019

1,216,434
1,245,019



13.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
9,841
8,048

Corporation tax
61,475
246,572

Other taxation and social security
223,807
177,082

Other creditors
142,137
24,144

Accruals and deferred income
204,963
144,718

642,223
600,564


Amounts owed to group undertakings and related parties are unsecured, interest free and repayable on demand.

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Page 22

 
Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

14.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2 (2023 - 2) Ordinary shares of £1.00 each
2
2



15.


Reserves

Profit and loss account

This reserve represents the cumulative retained profit of the company.


16.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £284,056 (2023: £268,580). Contributions totaling £123,830 (2023: £24,144) were payable to the fund at the balance sheet date and are included in creditors.


17.


Transactions with directors

2024
£
Balance at 1 August 2023

156,396

Cash advances

265,789

Repayments made

(440,491)

Balance at 31 July 2024
(18,306)


Amount owed to directors are unsecured, interest free and repayable on demand.

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Page 23

 
Lydian Care Ltd
 

 
Notes to the financial statements
For the year ended 31 July 2024

18.


Related party transactions

The company has availed of the exemption in FRS 102 Section 33, Paragraph 33.1A which allows non-disclosure of transactions between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.


2024
2023
£
£

Transactions with related party entities
Expenses paid on behalf related parties
8,720
18,806
Amounts owed by related parties
37,985
29,265


19.


Post balance sheet events

There have been no significant events affecting the Company since the year end.


20.


Controlling party

The Company's immediate and ultimate parent undertaking is Lydian Holdings Limited, a company incorporated in Northern Ireland.  Consolidated financial statements are not prepared on the basis that the Group is small.
The ultimate controlling parties are Pierre and Claire Burns.


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Page 24