Company registration number 09448243 (England and Wales)
WELLINGTON HEALTHCARE (ARDEN) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
WELLINGTON HEALTHCARE (ARDEN) LTD
COMPANY INFORMATION
Directors
Mr L Ramos
Mrs A Tan-Ramos
Secretary
Mrs A Tan-Ramos
Company number
09448243
Registered office
34 Scarisbrick New Road
Southport
PR8 6QE
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
WELLINGTON HEALTHCARE (ARDEN) LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
WELLINGTON HEALTHCARE (ARDEN) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

The directors present the strategic report for the year ended 31 July 2024.

Review of the business

Wellington Healthcare (Arden) Ltd continues to deliver high-quality residential, nursing, and dementia care across its services. During the year, the group maintained a broad operational footprint while undertaking a strategic review to ensure long-term sustainability and quality of delivery.

 

As part of this review, two externally leased homes were returned to the landlord post year-end. These homes had underperformed and placed pressure on the wider group’s financial performance. This decision enables the group to sharpen its focus on high-performing locations and ensure quality outcomes for residents across the estate.

 

Our staff remain the backbone of our operations. We continue to prioritise training, support, and wellbeing initiatives to empower teams delivering care. We are also advancing our digital systems to enhance operational efficiency and enrich the experience of both residents and their families.

 

We thank our staff, residents, families, and stakeholders for their continued support, which enables us to move forward with strength and clarity.

 

 

Future developments

Looking ahead, we remain committed to investing in our team, modernising our systems, and enhancing care pathways across the portfolio. While market conditions remain dynamic, we continue to evaluate opportunities to grow responsibly and sustainably. In particular, we are focused on strengthening our recruitment capabilities through both overseas pathways and local hiring strategies, supported by the recent implementation of a new talent acquisition system to streamline candidate engagement and hiring.

 

Covid – 19

Many of the operational adaptations from the pandemic, including enhanced staffing levels and revised infection control protocols, remained in place throughout the year. However, the withdrawal of government pandemic funding has impacted profitability. Despite this, the group remains vigilant and committed to maintaining a safe environment for residents and staff.

Principal risks and uncertainties

 

Key performance indicators

 

WELLINGTON HEALTHCARE (ARDEN) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Environmental, Social, and Governance (ESG) and Community Commitment

We recognise that our responsibilities extend beyond care delivery. Environmentally, we continue to assess opportunities for greater energy efficiency across our estate. Socially, we remain committed to local employment and inclusive hiring. From a governance perspective, we have strengthened oversight processes and maintained rigorous internal audit and risk reviews.

 

We are also deeply invested in the communities we serve — engaging with local authorities, providing career pathways in care, and supporting families with compassionate end-of-life services. These values will continue to underpin our growth and decision-making in the years ahead.

 

On behalf of the board

Mr L Ramos
Director
25 April 2025
WELLINGTON HEALTHCARE (ARDEN) 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 company continued to be that of the operation and provision of special dementia care centres.

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 final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr 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 company continues and that the appropriate training is arranged. It is the policy of the company 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 company's policy is to consult and discuss with employees, through 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 company's performance.

 

There is no employee share scheme at present, but the directors may consider 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 company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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 company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

WELLINGTON HEALTHCARE (ARDEN) 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
WELLINGTON HEALTHCARE (ARDEN) 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

WELLINGTON HEALTHCARE (ARDEN) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WELLINGTON HEALTHCARE (ARDEN) LTD
- 6 -
Opinion

We have audited the financial statements of Wellington Healthcare (Arden) Ltd (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

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 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.

WELLINGTON HEALTHCARE (ARDEN) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WELLINGTON HEALTHCARE (ARDEN) LTD (CONTINUED)
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

WELLINGTON HEALTHCARE (ARDEN) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WELLINGTON HEALTHCARE (ARDEN) LTD (CONTINUED)
- 8 -

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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)
WELLINGTON HEALTHCARE (ARDEN) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
22,379,431
21,062,604
Cost of sales
(17,813,065)
(17,274,033)
Gross profit
4,566,366
3,788,571
Administrative expenses
(5,130,020)
(4,422,864)
Other operating income
471,770
153,052
Operating loss
4
(91,884)
(481,241)
Interest payable and similar expenses
6
(43,199)
(27,930)
Loss before taxation
(135,083)
(509,171)
Tax on loss
7
(16,049)
117,738
Loss for the financial year
(151,132)
(391,433)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WELLINGTON HEALTHCARE (ARDEN) LTD
BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
729,425
1,001,914
Current assets
Debtors
10
3,519,870
2,800,608
Cash at bank and in hand
838,913
256,553
4,358,783
3,057,161
Creditors: amounts falling due within one year
11
(4,592,971)
(3,847,652)
Net current liabilities
(234,188)
(790,491)
Total assets less current liabilities
495,237
211,423
Creditors: amounts falling due after more than one year
12
(447,650)
-
0
Provisions for liabilities
Deferred tax liability
13
79,409
92,113
(79,409)
(92,113)
Net (liabilities)/assets
(31,822)
119,310
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
(31,922)
119,210
Total equity
(31,822)
119,310

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:
Mr L Ramos
Director
Company registration number 09448243 (England and Wales)
WELLINGTON HEALTHCARE (ARDEN) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2022
100
510,643
510,743
Year ended 31 July 2023:
Loss and total comprehensive income
-
(391,433)
(391,433)
Balance at 31 July 2023
100
119,210
119,310
Year ended 31 July 2024:
Loss and total comprehensive income
-
(151,132)
(151,132)
Balance at 31 July 2024
100
(31,922)
(31,822)
WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
1
Accounting policies
Company information

Wellington Healthcare (Arden) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 34 Scarisbrick New Road, Southport, PR8 6QE.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Bloomcare Group Limited. These consolidated financial statements are available from its registered office, 34 Scarisbrick New Road, Southport, PR8 6QE.

WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern

At 31 July 2024 the company had net current liabilities of £234,188. Included within creditors is £567,787 owed to fellow group companies and related companies which has arisen following the completion of a refinance in 2021. The loan is not expected to be due for repayment within twelve months of the year end as this repayment will be linked to the repayment of the external borrowings by the parent company which are being repaid over 5 years to 2026.true

The ultimate parent company, Bloomcare Group Limited, along with its subsidiaries, are part of a group lending facility. Therefore, the directors have reviewed both the company and wider group’s going concern position.

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. 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 both the company and wider group have adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover 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.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Land and buildings leasehold
Straight line at 20%
Plant and machinery
Straight line at 20%
Fixtures, fittings & equipment
Straight line at 20%
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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -
1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

All of the company's financial assets are classed as basic financial assets.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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 company 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 company after deducting all of its liabilities.

WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

All of the company's financial liabilities are classed as basic financial liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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 when the company has 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.

WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
1.10
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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
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.

1.14

Pension costs and other post-retirement benefits

The company operates defined contribution schemes for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
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.

Provision for bad and doubtful debts

Throughout the year the company reviews 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
2024
2023
£
£
Turnover analysed by class of business
Operation of care centres
22,379,431
21,062,604
2024
2023
£
£
Other revenue
Grants received
36,250
153,052
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Government grants
(36,250)
(153,052)
Fees payable to the company's auditor for the audit of the company's financial statements
15,456
14,580
Depreciation of owned tangible fixed assets
352,882
260,438
Impairment of owned tangible fixed assets
193,213
-
0
Operating lease charges
1,151,026
1,297,878
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management and head office
6
6
Care staff
701
684
Total
707
690
WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
13,859,232
12,243,478
Social security costs
1,118,319
825,010
Pension costs
242,723
204,016
15,220,274
13,272,504
6
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
122
Other interest
43,199
27,808
43,199
27,930
7
Taxation
2024
2023
£
£
Current tax
Group tax relief
28,753
(6,400)
Deferred tax
Origination and reversal of timing differences
(12,704)
(94,263)
Changes in tax rates
-
0
(17,925)
Adjustment in respect of prior periods
-
0
850
Total deferred tax
(12,704)
(111,338)
Total tax charge/(credit)
16,049
(117,738)
WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
7
Taxation
(Continued)
- 20 -

The actual charge/(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
(135,083)
(509,171)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
(33,771)
(106,977)
Tax effect of expenses that are not deductible in determining taxable profit
12,358
-
0
Effect of change in corporation tax rate
-
0
(17,925)
Depreciation on assets not qualifying for tax allowances
4,188
12,330
Other non-reversing timing differences
-
0
21
Deferred tax adjustments in respect of prior years
-
0
850
Fixed assets tax adjustments
(15,029)
-
0
Impairment of fixed assets
48,303
-
0
Super-deduction
-
0
(6,037)
Taxation charge/(credit) for the year
16,049
(117,738)
8
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
9
193,213
-
0
Recognised in:
Administrative expenses
193,213
-

On 19 August 2024, the company 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 the company for no proceeds and have therefore been impaired to £nil at the year end.

WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
9
Tangible fixed assets
Land and buildings leasehold
Plant and machinery
Fixtures, fittings & equipment
Office Equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 August 2023
78,176
60,291
1,312,288
99,202
9,060
1,559,017
Additions
-
0
79,603
190,220
3,783
-
0
273,606
At 31 July 2024
78,176
139,894
1,502,508
102,985
9,060
1,832,623
Depreciation and impairment
At 1 August 2023
32,312
35,750
428,117
55,035
5,889
557,103
Depreciation charged in the year
15,636
27,486
290,546
17,402
1,812
352,882
Impairment losses
30,228
822
149,679
12,484
-
0
193,213
At 31 July 2024
78,176
64,058
868,342
84,921
7,701
1,103,198
Carrying amount
At 31 July 2024
-
0
75,836
634,166
18,064
1,359
729,425
At 31 July 2023
45,864
24,541
884,171
44,167
3,171
1,001,914

More information on impairment movements in the year is given in note 8.

10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,496,396
1,806,125
Amounts owed by group undertakings
1,546,042
448,579
Other debtors
8,223
63,828
Prepayments and accrued income
224,075
236,942
3,274,736
2,555,474
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 13)
245,134
245,134
Total debtors
3,519,870
2,800,608
WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
484,671
1,368,117
Amounts owed to group undertakings
-
0
239,746
Taxation and social security
522,138
586,270
Other creditors
2,745,688
751,801
Accruals and deferred income
840,474
901,718
4,592,971
3,847,652
12
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
447,650
-
0
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
80,844
101,429
-
-
Tax losses
-
-
245,134
245,134
Retirement benefit obligations
(1,435)
(9,316)
-
-
79,409
92,113
245,134
245,134
2024
Movements in the year:
£
Asset at 1 August 2023
(153,021)
Credit to profit or loss
(12,704)
Asset at 31 July 2024
(165,725)

At the year end, the company had estimated tax losses of £980,535 (2023: £980,535).

WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
242,723
204,016

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
16
Financial commitments, guarantees and contingent liabilities

The company has provided a debenture to a lender in the parent company which at 31 July 2024 amounted to £7,974,988.

17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
812,882
1,314,466
Between two and five years
3,228,460
3,802,111
In over five years
11,576,000
12,362,000
15,617,342
17,478,577
18
Events after the reporting date

In August 2024, the company transferred operations of two care homes over to the local council. As a result, the company has recognised an impairment of £193,213 in these financial statements for tangible fixed assets that were transferred to the new operator.

19
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

WELLINGTON HEALTHCARE (ARDEN) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
19
Related party transactions
(Continued)
- 24 -
Category
Description of
Income
Expenditure
transaction
2024
2023
2024
2023
£
£
£
£
Other related parties
Rent
-
0
-
0
804,000
804,000
Balances with related parties

The following amounts were outstanding at the reporting end date:

Category
Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
Other related parties
6,274
60,151
567,787
158,244
Other information

Details of guarantees provided in respect of related parties can be found in note 16.

The company has taken advantage of the exemption permitted under Section 33.1A from disclosing transactions with the parent and fellow subsidiary companies.

20
Ultimate controlling party

The company is a subsidiary of Bloomcare Group Limited, a company registered in England and Wales. The registered office is 34 Scarisbrick New Road, Southport, United Kingdom, PR8 6QE.

 

The consolidated financial statements of the group are available to the public and may be obtained from Companies House, Cardiff or from its registered office.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

Largest group
Bloomcare Group Limited
Smallest group
Bloomcare Group Limited
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