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Registered number: 10858329


 








BIRCHESTER CARE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

 
BIRCHESTER CARE LIMITED
 
 
COMPANY INFORMATION


Directors
Mr R K Gore 
Mrs S J Hinde 




Registered number
10858329



Registered office
Polebrook Nursing Home
Morgans Close

Polebrook

Oundle

Cambridgeshire

PE8 5LU




Independent auditor
MHA

Chartered Accountants and Statutory Auditors
1 The Forum

Minerva Business Park

Lynch Wood

Peterborough

PE2 6FT





 
BIRCHESTER CARE LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 24


 
BIRCHESTER CARE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

Introduction
 
The directors present their Strategic report on the affairs of Birchester Care Limited for the year ended 31 October 2024.
The principal activity of the Company is the operation of care homes with the provision of nursing and residential care.
The strategy of the business is:
• To provide a high quality care and service to residents of varying age and needs.
•  To achieve continued growth and expansion to surrounding areas to confirm our position as one of the    top providers of residential care in the UK.

Business review and future developments
 
The turnover for the year was £6,384,561 (2023: £5,186,271). Combined with other operating income of £36,465 (2023: £34,685), this resulted in total income for the year of £6,421,026 (2023: £5,220,956).
The Company made a profit before tax of £302,273 (2023: £208,597).
The strategy of the business is to provide a high quality of nursing and residential care to residents of varying needs and ages.
To achieve continued growth and expansion to confirm our position as one of the top providers of Nursing and Residential Care in the surrounding area.
Although these have been challenging times, we continue to improve the qualifications, training and quality of our Nursing and the Care Staff enabling us to keep and improve the quality of care given to our clients. Thus, securing the highest level of funding available from The Care Providers ensuring financial performance can be improved upon ongoing. Within the financial year the Company completed a refinancing package allowing it to increase occupancy, profit and turnover. 
From the perspective of the Directors, they feel that within the year the Company was within its head room for the new facility and can fulfil its financing and regulatory obligations. This is shown on an ongoing basis within the accounts. 

Page 1

 
BIRCHESTER CARE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Principal risks and uncertainties
 
Market risk:
The market is subjected to increasing pressure on both costs and quality, however, we feel we are in a good position to be able to increase our turnover as we are able to continually differentiate ourselves from some of the smaller providers within our market sector. The level of fees being paid by funded residents is directly correlated to the pressure exerted by the level of Government and Local Authority spending. Both of which have continued in a downwards trend. The narrow margins for funded residents has been offset by privately funded individuals. The Company ascertains to reduce its financial risk through the application of stringent financial controls and reporting.
Legislative and regulatory risk:
The increasing regulatory and legislative pressures has meant we have identified the requirement to have more formal accreditations of our operating and quality systems. We are committed to ensure we are in a position to provide high quality levels of care on a consistent basis. We have invested in our internal clinical governance procedures to monitor our care provisions. 
Labour & recruitment:
From a customer perspective all of our turnover is achieved within the United Kingdom. However, in common with many other UK businesses we do have a reliance on overseas labour. The availability of labour is always a risk, however, we have remained proactive in our ability to recruit and retain high quality staff.
Actions of competitors:
There have always been new entrants into our market place offering the same service for apparently less money. We don’t feel that future years will be any different to the past and feel confident that with our strong delivery network that we are in a good place to maintain our position within the market sector.

Financial key performance indicators
 
We utilise a range of measures to control the business, the key ones are as below:
     2024       2023
                                                                
Turnover     £6.38m £5.19m  
Gross Profit as a % of sales  31.1%  26.7% 
Overhead as a % of sales  19.5%  23.3% 
We also utilise a regular programme of performance indicators applicable to targets set for each financial and non-financial performance measures which are closely monitored by the Board. We believe all these indicators provide a good basis for control and look forward to all the measures improving in the coming year as a result of initiatives implemented by the Directors.


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



................................................
Mr R K Gore
Director

Date: 17 April 2025

Page 2

 
BIRCHESTER CARE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

The directors present their report and the financial statements for the year ended 31 October 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £294,456 (2023 - £196,903).

No dividends were paid in the current or previous year.

Directors

The directors who served during the year were:

Mr R K Gore 
Mrs S J Hinde 

Matters covered in the Strategic Report

Details concerning principal activity, business review, principal risks and uncertainties, future developments and financial key performance indicators (KPIs) are included in the Strategic Report.

Page 3

 
BIRCHESTER CARE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director 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.

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





................................................
Mr R K Gore
Director

Date: 17 April 2025

Polebrook Nursing Home
Morgans Close
Polebrook
Oundle
Cambridgeshire
PE8 5LU

Page 4

 
BIRCHESTER CARE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRCHESTER CARE LIMITED
 

Opinion


We have audited the financial statements of Birchester Care Limited (the 'Company') for the year ended 31 October 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, 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 October 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 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.


Page 5

 
BIRCHESTER CARE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRCHESTER CARE LIMITED (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 directors are 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 Directors' 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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
BIRCHESTER CARE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRCHESTER CARE LIMITED (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:

•  Enquiry of management around actual and potential litigation and claims;
•  Enquiry of staff to identify any instances of non-compliance with laws and regulations;
•  Performing audit work over the risk of management override of controls, including testing of journal
   entries and other adjustments for appropriateness and reviewing accounting estimates for bias;
•  Reviewing minutes of meetings of those charged with governance;
•  Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
   with applicable laws and regulations.


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.
 
Page 7

 
BIRCHESTER CARE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRCHESTER CARE LIMITED (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.





Ian Jacobs BA FCA (Senior Statutory Auditor)
For and on behalf of MHA, Statutory Auditor
Peterborough, United Kingdom
  
Date: 23 April 2025

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
 



Page 8

 
BIRCHESTER CARE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
6,384,561
5,186,271

Cost of sales
  
(4,397,126)
(3,802,940)

Gross profit
  
1,987,435
1,383,331

Administrative expenses
  
(1,245,551)
(1,208,580)

Other operating income
 5 
36,465
34,685

Operating profit
  
778,349
209,436

Interest receivable and similar income
  
49
-

Interest payable and similar expenses
 10 
(476,125)
(839)

Profit before tax
  
302,273
208,597

Taxation
 11 
(7,817)
(11,694)

Profit for the financial year
  
294,456
196,903

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
BIRCHESTER CARE LIMITED
REGISTERED NUMBER: 10858329

BALANCE SHEET
AS AT 31 OCTOBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
8,239,232
8,409,150

  
8,239,232
8,409,150

Current assets
  

Debtors
 13 
876,600
577,465

Cash at bank and in hand
 14 
150,310
55,851

  
1,026,910
633,316

Creditors: amounts falling due within one year
 15 
(7,800,281)
(7,868,862)

Net current liabilities
  
 
 
(6,773,371)
 
 
(7,235,546)

Total assets less current liabilities
  
1,465,861
1,173,604

Creditors: amounts falling due after more than one year
 16 
(7,887)
(18,213)

Provisions for liabilities
  

Deferred tax
 17 
(258,656)
(250,529)

Net assets
  
1,199,318
904,862


Capital and reserves
  

Called up share capital 
 18 
100
100

Profit and loss account
 19 
1,199,218
904,762

  
1,199,318
904,862


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr R K Gore
Director

Date: 17 April 2025

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
BIRCHESTER CARE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 November 2022
100
707,859
707,959


Comprehensive income for the year

Profit for the year
-
196,903
196,903
Total comprehensive income for the year
-
196,903
196,903



At 1 November 2023
100
904,762
904,862


Comprehensive income for the year

Profit for the year
-
294,456
294,456
Total comprehensive income for the year
-
294,456
294,456


At 31 October 2024
100
1,199,218
1,199,318


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

1.


General information

Birchester Care Limited ("the Company") is a private company limited by shares, incorporated in England
and Wales under the Companies Act.
The registered number and address of the registered office is given in the Company information.
The functional and presentational currency of the company is pounds sterling (£) and rounded to the
nearest whole pound.

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 judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these
financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in
the UK and Republic of Ireland":
•  the requirements of Section 7 Statement of Cash Flows;
•  the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
•  the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e),
   11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
•  the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27,
   12.29(a), 12.29(b) and 12.29A;
•  the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Birchester Limited as at 31
October 2024 and these financial statements may be obtained from Companies House.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.
Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Page 12

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 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

Interest income

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

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

  
2.8

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 other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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.


 
2.10

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.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 14

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

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:

Freehold property
-
2% straight-line
Short-term leasehold property
-
10% straight-line
Fixtures and fittings
-
10% 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.

 
2.11

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.

 
2.12

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.

 
2.13

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.

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.
 
Page 15

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)


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.

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.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 16

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. There are no judgements (apart from those involving estimates and in particular those for depreciation and doubtful debt provisions) that have had a significant effect on amounts recognised in the financial statements.  


4.


Turnover

The whole of the turnover is attributable to residential services provided in line with the principal activity of the Company.

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Net rents receivable
36,465
34,685

36,465
34,685



6.


Auditor's remuneration

2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
22,300
20,800


The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.



Page 17

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
3,603,713
2,843,167

Social security costs
320,924
232,997

Cost of defined contribution scheme
56,516
50,377

3,981,153
3,126,541


The average monthly number of employees, including directors, during the year was 147 (2023 - 130).


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
76,953
73,918

Company contributions to defined contribution pension schemes
1,321
1,321

78,274
75,239


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


9.


Interest receivable

2024
2023
£
£


Other interest receivable
49
-

49
-

Page 18

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
461,784
-

Bank loan interest payable
14,341
839

476,125
839


11.


Taxation


2024
2023
£
£

Corporation tax


Adjustments in respect of previous periods
(310)
-


Total current tax
(310)
-

Deferred tax


Origination and reversal of timing differences
8,127
11,694

Total deferred tax
8,127
11,694


Taxation
7,817
11,694
Page 19

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2024
2023
£
£


Profit on ordinary activities before tax
302,273
208,597


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
75,568
52,149

Effects of:


Capital allowances for year exceeded by/(in excess of) depreciation
28,941
(16,114)

Adjustments to tax charge in respect of prior periods
(310)
-

Origination and reversal of deferred tax timing differences
8,127
11,694

Other differences leading to an increase in the tax charge
12,693
26,129

Group relief
(117,202)
(62,164)

Total tax charge for the year
7,817
11,694





Page 20

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

12.


Tangible fixed assets





Freehold property
Short-term leasehold property
Fixtures and fittings
Total

£
£
£
£



Cost


At 1 November 2023
9,042,404
11,895
429,355
9,483,654


Additions
61,484
-
28,319
89,803


Disposals
(32,988)
-
-
(32,988)



At 31 October 2024

9,070,900
11,895
457,674
9,540,469



Depreciation


At 1 November 2023
864,289
7,239
202,976
1,074,504


Charge for the year on owned assets
181,420
1,190
44,123
226,733



At 31 October 2024

1,045,709
8,429
247,099
1,301,237



Net book value



At 31 October 2024
8,025,191
3,466
210,575
8,239,232



At 31 October 2023
8,178,115
4,656
226,379
8,409,150




 


13.


Debtors

2024
2023
£
£



Trade debtors
60,990
326,452

Other debtors
715,038
154,384

Prepayments and accrued income
100,572
96,629

876,600
577,465


Page 21

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
150,310
55,851

150,310
55,851



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
5,602,390
10,057

Trade creditors
190,529
287,827

Amounts owed to group undertakings
1,484,932
7,153,769

Other taxation and social security
54,072
83,473

Other creditors
297,794
238,080

Accruals and deferred income
170,564
95,656

7,800,281
7,868,862


Bank loans totalling £5,602,390 (2023: £10,057) are secured against the assets of the company, and attract a 2.75% p.a. fixed interest rate, calculated on the amount of facility used.
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.


16.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
7,887
18,213

7,887
18,213


Bank loans totalling £7,887 (2023: £18,213) are secured against the assets of the company, and attract a 2.5% p.a. fixed interest rate, calculated on the amount of the facility used.

Page 22

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

17.


Deferred taxation




2024
2023


£

£






At beginning of year
(250,529)
(238,835)


Charged to profit or loss
(8,127)
(11,694)



At end of year
(258,656)
(250,529)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
261,978
253,687

Short term timing differences
(3,322)
(3,158)

258,656
250,529


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



19.


Reserves

Profit and loss account

The profit and loss account represents cumulative profit or losses, net of dividend paid and other adjustments.


20.


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 £56,516 (2023: £50,377).
Contributions totalling £35,436 (2023: £44,912) were payable to the fund at the Balance Sheet date and are included with in other creditors.

Page 23

 
BIRCHESTER CARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

21.


Related party transactions

As the Company is a wholly owned subsidiary of Birchester Care Holdings Limited, the Company has taken advantage of the exemption contained in FRS 102 section 33.1A Related Party Disclosures, and has therefore not disclosed transactions or balances with wholly owned entities which form part of its Group.


22.


Controlling party

The company's immediate parent is Birchester Care Holdings Limited, a company which is incorporated in England and Wales and holds 100% of the issued shares in this company.
At the year end, the company's ultimate controlling party was Mr R K Gore and Mrs E A Gore by virtue of their majority shareholding in Birchester Limited, the ultimate controlling company, a company incorporated in England and Wales, which prepares consolidated financial statements and these can be obtained from the company's registered office. The registered office of Birchester Limited is 1 The Forum, Minerva Business Park, Lynch Wood, Peterborough, PE2 6FT.
Post year end, control of Birchester Limited has passed to Irwin Gore Investments Ltd, which is under the control of Mr R K Gore and Mrs E A Gore.

 
Page 24