IRIS Accounts Production v25.1.0.734 10932588 Board of Directors 1.9.23 31.8.24 31.8.24 Medium entities true false true true false false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh109325882023-08-31109325882024-08-31109325882023-09-012024-08-31109325882022-08-31109325882022-09-012023-08-31109325882023-08-3110932588ns15:EnglandWales2023-09-012024-08-3110932588ns14:PoundSterling2023-09-012024-08-3110932588ns10:Director12023-09-012024-08-3110932588ns10:PrivateLimitedCompanyLtd2023-09-012024-08-3110932588ns10:MediumEntities2023-09-012024-08-3110932588ns10:Audited2023-09-012024-08-3110932588ns10:Medium-sizedCompaniesRegimeForDirectorsReport2023-09-012024-08-3110932588ns10:Medium-sizedCompaniesRegimeForAccounts2023-09-012024-08-3110932588ns10:FullAccounts2023-09-012024-08-311093258812023-09-012024-08-3110932588ns10:OrdinaryShareClass12023-09-012024-08-3110932588ns10:Director22023-09-012024-08-3110932588ns10:RegisteredOffice2023-09-012024-08-3110932588ns5:CurrentFinancialInstruments2024-08-3110932588ns5:CurrentFinancialInstruments2023-08-3110932588ns5:Non-currentFinancialInstruments2024-08-3110932588ns5:Non-currentFinancialInstruments2023-08-3110932588ns5:ShareCapital2024-08-3110932588ns5:ShareCapital2023-08-3110932588ns5:RevaluationReserve2024-08-3110932588ns5:RevaluationReserve2023-08-3110932588ns5:RetainedEarningsAccumulatedLosses2024-08-3110932588ns5:RetainedEarningsAccumulatedLosses2023-08-3110932588ns5:ShareCapital2022-08-3110932588ns5:RetainedEarningsAccumulatedLosses2022-08-3110932588ns5:RevaluationReserve2022-08-3110932588ns5:RetainedEarningsAccumulatedLosses2022-09-012023-08-3110932588ns5:RevaluationReserve2022-09-012023-08-3110932588ns5:RetainedEarningsAccumulatedLosses2023-09-012024-08-3110932588ns5:RevaluationReserve2023-09-012024-08-3110932588ns5:NetGoodwill2023-09-012024-08-3110932588ns5:IntangibleAssetsOtherThanGoodwill2023-09-012024-08-3110932588ns5:LandBuildingsns5:OwnedOrFreeholdAssets2023-09-012024-08-3110932588ns5:LeaseholdImprovements2023-09-012024-08-3110932588ns5:FurnitureFittings2023-09-012024-08-3110932588ns5:MotorVehicles2023-09-012024-08-3110932588ns5:OwnedAssets2023-09-012024-08-3110932588ns5:OwnedAssets2022-09-012023-08-3110932588ns5:LeasedAssets2023-09-012024-08-3110932588ns5:LeasedAssets2022-09-012023-08-3110932588ns5:NetGoodwill2022-09-012023-08-311093258812023-09-012024-08-311093258812022-09-012023-08-311093258842023-09-012024-08-311093258842022-09-012023-08-3110932588ns10:OrdinaryShareClass12022-09-012023-08-3110932588ns5:NetGoodwill2023-08-3110932588ns5:NetGoodwill2024-08-3110932588ns5:NetGoodwill2023-08-3110932588ns5:LandBuildings2023-08-3110932588ns5:LeaseholdImprovements2023-08-3110932588ns5:FurnitureFittings2023-08-3110932588ns5:MotorVehicles2023-08-3110932588ns5:LandBuildings2023-09-012024-08-3110932588ns5:LandBuildings2024-08-3110932588ns5:LeaseholdImprovements2024-08-3110932588ns5:FurnitureFittings2024-08-3110932588ns5:MotorVehicles2024-08-3110932588ns5:LandBuildings2023-08-3110932588ns5:LeaseholdImprovements2023-08-3110932588ns5:FurnitureFittings2023-08-3110932588ns5:MotorVehicles2023-08-3110932588ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-08-3110932588ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-09-012024-08-3110932588ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2024-08-3110932588ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-08-3110932588ns5:WithinOneYearns5:CurrentFinancialInstruments2024-08-3110932588ns5:WithinOneYearns5:CurrentFinancialInstruments2023-08-3110932588ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2024-08-3110932588ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-08-3110932588ns5:WithinOneYearns5:HirePurchaseContracts2024-08-3110932588ns5:WithinOneYearns5:HirePurchaseContracts2023-08-3110932588ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2024-08-3110932588ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-08-3110932588ns5:HirePurchaseContracts2024-08-3110932588ns5:HirePurchaseContracts2023-08-3110932588ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2024-08-3110932588ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2023-08-3110932588ns5:Secured2024-08-3110932588ns5:Secured2023-08-3110932588ns5:DeferredTaxation2023-08-3110932588ns5:DeferredTaxation2024-08-3110932588ns10:OrdinaryShareClass12024-08-3110932588ns5:RetainedEarningsAccumulatedLosses2023-08-3110932588ns5:RevaluationReserve2023-08-3110932588ns5:OtherRelatedPartyRelationshipType2ComponentTotalRelatedParties2023-09-012024-08-3110932588ns5:OtherRelatedPartyRelationshipType2ComponentTotalRelatedParties2024-08-3110932588ns5:OtherRelatedPartyRelationshipType2ComponentTotalRelatedParties2023-08-3110932588ns5:OtherRelatedParties2023-09-012024-08-3110932588ns5:OtherRelatedParties2024-08-3110932588ns5:OtherRelatedParties2023-08-31
REGISTERED NUMBER: 10932588 (England and Wales)










Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 August 2024

for

Holmwood House Care Limited

Holmwood House Care Limited (Registered number: 10932588)






Contents of the Financial Statements
for the Year Ended 31 August 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Holmwood House Care Limited

Company Information
for the Year Ended 31 August 2024







DIRECTORS: M A Raja
F J Raja



REGISTERED OFFICE: 962 Eastern Avenue
Ilford
Essex
IG2 7JD



REGISTERED NUMBER: 10932588 (England and Wales)



AUDITORS: Alderton Accountancy Limited, Statutory Auditor
Chartered Certified Accountants
Registered Auditors
962 Eastern Avenue
Newbury Park
Ilford
Essex
IG2 7JD



BANKERS: Natwest Westminster Bank PLC
Chatham Customer Service Centre
Western Avenue
Waterside Court, Chatham Maritime
Chatham
Kent
ME4 4RT

Holmwood House Care Limited (Registered number: 10932588)

Strategic Report
for the Year Ended 31 August 2024

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

REVIEW OF BUSINESS
Holmwood House Care Limited operates within the health and social care sector markets with its focus on providing elderly care. It provides both nursing and residential care and its funding is raised through local authorities and private funders. The home holds and operates its trade, assets, and central support functions.

Holmwood House Care Limited has turnover totalling £3.27 million (2023: £3.08 million) in the year, with a gross profit margin of 32.48% (2023: 33.55%) and a net profit margin of 2.14% (2023: 0.89%). This growth reflects strong occupancy levels, positive relationships with local authority and private funders. Across all care homes, the group prioritised high-quality resident experiences, continuous staff development, and efficient operational practices. These measures helped maintain a reputation for excellent care while supporting stable market positioning and consistent referrals.

FINANCIAL BUSINESS REVIEW
Holmwood House Holdings Limited achieved a healthy financial performance underpinned by prudent cost management and a balanced funding mix. Key highlights include:

Revenue Growth
Turnover rose by approximately 6%, demonstrating robust demand for the company's care services and a strong referral pipeline.

Profitability and Reinvestment
Steady margins were sustained through careful staffing allocations, supplier negotiations, and budgeting discipline.The company reinvested a portion of its surplus into modernising facilities, upgrading equipment, and improving staff training programmes. These investments aim to further enhance resident outcomes and sustain long-term profitability.

Liquidity and Cash Flow
Cash flow remained stable, aided by timely fee payments from local authorities, effective debt management, and proactive forecasting. Directors closely monitor loan covenants and credit lines, maintaining adequate headroom for both operational continuity and strategic opportunities.

Forward-Looking Financial Approach
Ongoing oversight of capital expenditure ensures that resources are efficiently allocated to initiatives with clear benefits to residents, staff, and overall corporate sustainability.


Holmwood House Care Limited (Registered number: 10932588)

Strategic Report
for the Year Ended 31 August 2024

PRINCIPAL RISKS AND UNCERTAINTIES
Staffing and Recruitment
Demand for skilled care staff requires the company to maintain competitive packages and clear career pathways. Directors are committed to supporting staff well-being and retention, recognising that motivated teams are central to delivering high standards of care.

Occupancy and Local Competition
Occupancy rates are a key performance driver, and the company secures them through a combination of marketing, quality referrals, and maintaining excellent care ratings. Sustained reputation management, including regular feedback from residents and families, helps Holmwood House Care Limited stand out in a competitive market.

Regulatory Compliance
The company's services are regulated by the Care Quality Commission (CQC), and corporate obligations are governed by the Companies Act 2006. Rigorous internal audits, backed by board oversight, ensure the highest standards in clinical governance, financial reporting, and directors' statutory duties. This approach helps minimise compliance risk and reinforces stakeholder confidence.

Financial Management
Directors regularly review borrowing, ensuring that the company's debt profile remains proportionate to its revenue and asset base. Budgetary controls, scenario analyses, and timely financial reporting are employed to maintain a strong financial position and to anticipate market fluctuations or emerging opportunities.

FUTURE DEVELOPMENTS
Service and Quality Enhancements
Additional capital investment in staff training, modern technology, and upgraded facilities will remain a priority. This includes personalised care programmes, digital record-keeping systems, and improved communal areas to enrich the resident experience.

Workforce Development
Talent management initiatives, including leadership coaching and advanced clinical training, aim to empower staff and uphold the group's high standards of resident-centred care. These efforts support improved employee engagement and foster a culture of continuous improvement.

Operational Innovation
Embracing new best practices and technological solutions will help drive further efficiencies. From streamlined administrative workflows to enhanced resident engagement tools, the group seeks to remain at the forefront of industry innovation.

By maintaining its focus on regulatory compliance, sound financial stewardship, and exceptional care quality, Holmwood House Care Limited is confident in its ability to navigate the evolving healthcare landscape while continuing to deliver sustainable growth and positive outcomes for residents and stakeholders alike.

ON BEHALF OF THE BOARD:





F J Raja - Director


8 April 2025

Holmwood House Care Limited (Registered number: 10932588)

Report of the Directors
for the Year Ended 31 August 2024

The directors present their report with the financial statements of the company for the year ended 31 August 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of Residential nursing care facilities

DIVIDENDS
No interim dividend was paid during the year. The directors recommend a final dividend of 120440 per share.

The total distribution of dividends for the year ended 31 August 2024 will be £ 120,440 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report.

M A Raja
F J Raja

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, J Raja & Company, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:




F J Raja - Director


8 April 2025

Report of the Independent Auditors to the Members of
Holmwood House Care Limited

Opinion
We have audited the financial statements of Holmwood House Care Limited (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 August 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Holmwood House Care Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

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

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

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:

- Enquiry of management around actual and potential litigation and claims, and any know instances of non-compliance;
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
- Reviewing our work throughout the audit file for evidence of non-compliance.

Due to factors such as the use of judgement, sample testing and the inherent limitations of internal control, these procedures are capable of obtaining reasonable, but not absolute, assurance that irregularities have been detected.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Holmwood House Care Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Jamil Raja (Senior Statutory Auditor)
for and on behalf of Alderton Accountancy Limited, Statutory Auditor
Chartered Certified Accountants
Registered Auditors
962 Eastern Avenue
Newbury Park
Ilford
Essex
IG2 7JD

8 April 2025

Holmwood House Care Limited (Registered number: 10932588)

Income Statement
for the Year Ended 31 August 2024

2024 2023
Notes £    £   

TURNOVER 3,269,909 3,077,855

Cost of sales 2,207,765 2,103,160
GROSS PROFIT 1,062,144 974,695

Administrative expenses 365,683 478,092
OPERATING PROFIT 4 696,461 496,603


Interest payable and similar expenses 5 626,349 469,175
PROFIT BEFORE TAXATION 70,112 27,428

Tax on profit 6 1,366 11,989
PROFIT FOR THE FINANCIAL YEAR 68,746 15,439

Holmwood House Care Limited (Registered number: 10932588)

Other Comprehensive Income
for the Year Ended 31 August 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 68,746 15,439


OTHER COMPREHENSIVE INCOME
Revaluation of freehold property
Income tax relating to other
comprehensive income

-

(48,976

)
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

-

(48,976

)
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

68,746

(33,537

)

Holmwood House Care Limited (Registered number: 10932588)

Statement of Financial Position
31 August 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 8 206,042 263,542
Tangible assets 9 5,697,133 5,708,839
5,903,175 5,972,381

CURRENT ASSETS
Debtors 10 231,018 251,724
Cash at bank and in hand 166,108 304,220
397,126 555,944
CREDITORS
Amounts falling due within one year 11 1,131,002 1,040,614
NET CURRENT LIABILITIES (733,876 ) (484,670 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,169,299

5,487,711

CREDITORS
Amounts falling due after more than one
year

12

(4,090,002

)

(4,356,720

)

PROVISIONS FOR LIABILITIES 16 (204,068 ) (204,068 )
NET ASSETS 875,229 926,923

CAPITAL AND RESERVES
Called up share capital 17 100 100
Revaluation reserve 18 612,208 612,208
Retained earnings 18 262,921 314,615
SHAREHOLDERS' FUNDS 875,229 926,923

The financial statements were approved by the Board of Directors and authorised for issue on 8 April 2025 and were signed on its behalf by:





F J Raja - Director


Holmwood House Care Limited (Registered number: 10932588)

Statement of Changes in Equity
for the Year Ended 31 August 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 September 2022 100 299,176 661,184 960,460

Changes in equity
Total comprehensive income - 15,439 (48,976 ) (33,537 )
Balance at 31 August 2023 100 314,615 612,208 926,923

Changes in equity
Dividends - (120,440 ) - (120,440 )
Total comprehensive income - 68,746 - 68,746
Balance at 31 August 2024 100 262,921 612,208 875,229

Holmwood House Care Limited (Registered number: 10932588)

Notes to the Financial Statements
for the Year Ended 31 August 2024

1. STATUTORY INFORMATION

Holmwood House Care Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The company is a member of a group, where the parent of the group prepares publicly available consolidated financial statements, including this company.

The financial statements of the company are consolidated in the financial statements of Holmwood House Holdings Limited. These consolidated financial statements are available from its registered office address; 962 Eastern Avenue, Ilford, Essex, United Kingdom, IG2 7JD.

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
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.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2018, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Holmwood House Care Limited (Registered number: 10932588)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 50 years based on cost/revalued amount
Improvements to property - not provided
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price and are subsequently measured as follows: Debt instruments are subsequently measured at amortised cost and commitments to receive a loan and to make a loan to another entity are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.

All other financial instruments, including derivatives, are initially recognised at fair value, which is normally the transaction price and are subsequently measured at fair value, with any changes recognised in profit or loss.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

All equity instruments regardless of significance, and other financial assets that are individually significant, are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Holmwood House Care Limited (Registered number: 10932588)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,721,273 1,564,604
Social security costs 138,656 126,683
Other pension costs 31,073 27,224
1,891,002 1,718,511

The average number of employees during the year was as follows:
2024 2023

Average number of employees 84 76

2024 2023
£    £   
Directors' remuneration - -

4. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 2,961 3,947
Depreciation - assets on hire purchase contracts 9,558 12,745
Goodwill amortisation 57,500 189,271
Auditors' remuneration 14,400 6,000

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 208,174 149,630
Interest on HP - 1,505
RBR Loan Interest 418,040 318,040
Interest payable 135 -
626,349 469,175

Holmwood House Care Limited (Registered number: 10932588)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 1,366 11,989
Tax on profit 1,366 11,989

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 August 2024.

2023
Gross Tax Net
£    £    £   
Revaluation of freehold property - (48,976 ) (48,976 )

7. DIVIDENDS
2024 2023
£    £   
Ordinary shares of 1 each
Final 120,440 -

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 September 2023
and 31 August 2024 575,000
AMORTISATION
At 1 September 2023 311,458
Amortisation for year 57,500
At 31 August 2024 368,958
NET BOOK VALUE
At 31 August 2024 206,042
At 31 August 2023 263,542

Holmwood House Care Limited (Registered number: 10932588)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

9. TANGIBLE FIXED ASSETS
Improvements Fixtures
Freehold to and Motor
property property fittings vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 1 September 2023 5,580,000 78,762 10,767 75,819 5,745,348
Additions - 813 - - 813
At 31 August 2024 5,580,000 79,575 10,767 75,819 5,746,161
DEPRECIATION
At 1 September 2023 - - 6,784 29,725 36,509
Charge for year - - 996 11,523 12,519
At 31 August 2024 - - 7,780 41,248 49,028
NET BOOK VALUE
At 31 August 2024 5,580,000 79,575 2,987 34,571 5,697,133
At 31 August 2023 5,580,000 78,762 3,983 46,094 5,708,839

Included in cost or valuation of land and buildings is freehold land of £ 2,500,000 (2023 - £ 2,500,000 ) which is not depreciated.

Cost or valuation at 31 August 2024 is represented by:

Improvements Fixtures
Freehold to and Motor
property property fittings vehicles Totals
£    £    £    £    £   
Valuation in 2022 816,276 - - - 816,276
Cost 4,763,724 79,575 10,767 75,819 4,929,885
5,580,000 79,575 10,767 75,819 5,746,161

Freehold Land and Buildings were valued on an open market basis on 31 August 2022 by the Directors .

The Directors are of the opinion that the value of freehold land and buildings is not materially different from their fair value at the date of the statement of financial position.

Holmwood House Care Limited (Registered number: 10932588)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
At 1 September 2023
and 31 August 2024 50,979
DEPRECIATION
At 1 September 2023 12,745
Charge for year 9,558
At 31 August 2024 22,303
NET BOOK VALUE
At 31 August 2024 28,676
At 31 August 2023 38,234

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 57,562 114,367
Amounts owed by group undertakings 120,486 96,160
Other debtors 50,000 37,897
Staff Loans & Advances - 3,300
Prepayments and accrued income 2,970 -
231,018 251,724

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 183,876 111,436
Hire purchase contracts (see note 14) 10,992 10,992
Credit balance on sales ledger 105,014 -
Trade creditors 48,944 14,495
Amounts owed to group undertakings - 492
Tax 1,366 11,989
Social security and other taxes 33,813 33,279
Other creditors 135,999 123,129
Deferred income 254,098 328,795
Accrued expenses 356,900 406,007
1,131,002 1,040,614

Holmwood House Care Limited (Registered number: 10932588)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 13) 2,655,706 2,901,459
Other loans (see note 13) 1,411,542 1,421,516
Hire purchase contracts (see note 14) 22,754 33,745
4,090,002 4,356,720

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,539 2,489
Bank loans 182,337 108,947
183,876 111,436

Amounts falling due between two and five years:
Bank loans - 2-5 years 689,630 504,813
Bounce Back Loan 11,542 21,516
701,172 526,329

Amounts falling due in more than five years:
Repayable otherwise than by instalments
Other loans more 5yrs non-inst 1,400,000 1,400,000

Repayable by instalments
Bank loans more 5 yr by instal 1,966,076 2,396,646

The company obtained a loan from the Bank in 2018. As of the year-end, the outstanding balance was £2,828,114 (2023: £3,000,521). The loan bears an interest rate of 1.85% per annum above the base rate of 5.25% per annum and is scheduled for repayment over a 20-year period.

In October 2021, the Group obtained a loan under the Bounce Back Loan Scheme. As of the year-end, the outstanding balance was £42,232 (2023: £62,810). This loan carries an interest rate of 2.5% per annum, with no principal repayments required during the first year.

Additionally, the Group secured a loan from RBR Property Investments Limited, a company under the control of a Director. The outstanding balance of this loan at the year-end was £2,500,000 (2023: £2,500,000). This loan carries an interest rate of 5% per annum and is due for repayment by 2030.

Holmwood House Care Limited (Registered number: 10932588)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Gross obligations repayable:
Within one year 16,582 16,582
Between one and five years 33,658 44,649
50,240 61,231

Finance charges repayable:
Within one year 5,590 5,590
Between one and five years 10,904 10,904
16,494 16,494

Net obligations repayable:
Within one year 10,992 10,992
Between one and five years 22,754 33,745
33,746 44,737

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank overdrafts 1,539 2,489
Bank loans 2,838,043 3,010,406
2,839,582 3,012,895

The bank loans of the company are secured by a debenture on all assets of the company and also by legal charges over the associated properties.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 204,068 204,068

Deferred
tax
£   
Balance at 1 September 2023 204,068
Revaluation of properties
Balance at 31 August 2024 204,068

Holmwood House Care Limited (Registered number: 10932588)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary 1 100 100

18. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 September 2023 314,615 612,208 926,823
Profit for the year 68,746 68,746
Dividends (120,440 ) (120,440 )
At 31 August 2024 262,921 612,208 875,129

19. RELATED PARTY DISCLOSURES

Quinton House Limited: (A company under common directorship)
2024 2023
£    £   
Amount due from related party 486 450

RBR Property Investments Limited: (A company under the control of a Director)
2024 2023
£    £   
Loan interest 418,040 318,040
Amount due from related party - 37,897
Amount due to related party 1,400,000 1,400,000