Stepping Stones Resettlement Unit Limited
Annual Report and Financial Statements
For the year ended 31 August 2024
Company Registration No. 03220818 (England and Wales)
Stepping Stones Resettlement Unit Limited
Company Information
Directors
D. Quinlan
M. Evans
N. McGrail
C. Randall
H. Watkins
Secretary
M. Evans
Company number
03220818
Registered office
Stepping Stones
Broadoak
Newham-on-Severn
Gloucestershire
GL14 1JF
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Stepping Stones Resettlement Unit Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
Stepping Stones Resettlement Unit Limited
Strategic Report
For the year ended 31 August 2024
Page 1
The directors present the strategic report for the year ended 31 August 2024.
Fair review of the business
The Company operates residential care homes for adults with learning disabilities and mental health diagnosis. This is across a variety of locations and settings to allow us to tailor the services provided to the individual’s needs. The strategy of the business is to provide high quality care at all homes and maintain occupancy levels, and also a focus on recruitment, retention and training of staff to ensure service provision is consistent and appropriate to the needs of our service users.
Governmental cuts in social care and public sector spending combined with wage inflation continue to present challenges to turnover and operating profit. The Directors expect a further period of challenge and consolidation.
Key performance indicators
We consider that our key financial performance indicators are those that communicate the financial performance of the company as a whole, these being occupancy, turnover and operating profit margin.
2024 2023
Occupancy at the year end 82 83
Turnover £8,712,336 £8,273,166
Staff costs as a percentage of 67% 64%
fee income
Gross profit margin 40.9% 42.6%
Operating profit margin 12.2% 13.1%
Principal risks and uncertainties
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the businesses.
M. Evans
Director
14 May 2025
Stepping Stones Resettlement Unit Limited
Directors' Report
For the year ended 31 August 2024
Page 2
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The Company operates residential care homes for adults with learning disabilities and mental health diagnosis.
Results and dividends
The results for the year are set out on page 8.
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:
D. Quinlan
M. Evans
N. McGrail
C. Randall
H. Watkins
In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.
Auditor
In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.
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.
On behalf of the board
M. Evans
Director
14 May 2025
Stepping Stones Resettlement Unit Limited
Directors' Responsibilities Statement
For the year ended 31 August 2024
Page 3
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
Stepping Stones Resettlement Unit Limited
Independent Auditor's Report
To the Members of Stepping Stones Resettlement Unit Limited
Page 4
Opinion
We have audited the financial statements of Stepping Stones Resettlement Unit Limited (the 'company') for the year ended 31 August 2024 which comprise the Profit and Loss Account, 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 FRS 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.
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 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.
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.
Stepping Stones Resettlement Unit Limited
Independent Auditor's Report (Continued)
To the Members of Stepping Stones Resettlement Unit Limited
Page 5
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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, 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.
Stepping Stones Resettlement Unit Limited
Independent Auditor's Report (Continued)
To the Members of Stepping Stones Resettlement Unit Limited
Page 6
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Stepping Stones Resettlement Unit Limited
Independent Auditor's Report (Continued)
To the Members of Stepping Stones Resettlement Unit Limited
Page 7
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Jonathan Sutcliffe
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
15 May 2025
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Stepping Stones Resettlement Unit Limited
Profit and Loss Account
For the year ended 31 August 2024
Page 8
2024
2023
Notes
£
£
Turnover
3
8,712,336
8,273,166
Cost of sales
(5,147,433)
(4,749,777)
Gross profit
3,564,903
3,523,389
Administrative expenses
(2,521,265)
(2,501,511)
Other operating income
22,822
59,509
Operating profit
4
1,066,460
1,081,387
Interest payable and similar expenses
7
(10,869)
(8,970)
Profit before taxation
1,055,591
1,072,417
Tax on profit
8
(374,458)
(261,406)
Profit for the financial year
681,133
811,011
The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.
Stepping Stones Resettlement Unit Limited
Statement of Comprehensive Income
For the year ended 31 August 2024
Page 9
2024
2023
£
£
Profit for the year
681,133
811,011
Other comprehensive income
-
-
Total comprehensive income for the year
681,133
811,011
Stepping Stones Resettlement Unit Limited
Balance Sheet
As at 31 August 2024
Page 10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
12,865,984
13,086,897
Current assets
Debtors
10
8,876,421
7,641,584
Cash at bank and in hand
448,593
594,315
9,325,014
8,235,899
Creditors: amounts falling due within one year
11
(4,219,851)
(4,148,239)
Net current assets
5,105,163
4,087,660
Total assets less current liabilities
17,971,147
17,174,557
Creditors: amounts falling due after more than one year
12
(42,416)
(49,795)
Provisions for liabilities
Deferred tax liability
14
(2,031,428)
(1,908,592)
(2,031,428)
(1,908,592)
Net assets
15,897,303
15,216,170
Capital and reserves
Called up share capital
16
100
100
Revaluation reserve
6,801,463
6,927,526
Profit and loss reserves
9,095,740
8,288,544
Total equity
15,897,303
15,216,170
The financial statements were approved by the board of directors and authorised for issue on 14 May 2025 and are signed on its behalf by:
M. Evans
Director
Company Registration No. 03220818
Stepping Stones Resettlement Unit Limited
Statement of Changes in Equity
For the year ended 31 August 2024
Page 11
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 September 2022
100
6,927,526
7,477,533
14,405,159
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
811,011
811,011
Balance at 31 August 2023
100
6,927,526
8,288,544
15,216,170
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
-
681,133
681,133
Transfers
-
(126,063)
126,063
-
Balance at 31 August 2024
100
6,801,463
9,095,740
15,897,303
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements
For the year ended 31 August 2024
Page 12
1
Accounting policies
Company information
Stepping Stones Resettlement Unit Limited is a private company limited by shares incorporated in England and Wales. The registered office is Stepping Stones, Broadoak, Newham-on-Severn, Gloucestershire, GL14 1JF.
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.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
The company has continued to trade strongly during the financial year to August 2024 and since year end, and has net assets of £15,897,303 (2023: £15,216,170), including cash at bank of £448,593 (2023: £594,315) at 31 August 2024 and achieved a profit before taxation of £1,055,591 during the year (2023: £1,072,417). Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents the amounts receivable during the year for residents' fee income. Where the amount received relates to a period which covers the balance sheet date, the amount is apportioned to the financial period to which it relates.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured net of depreciation and any impairment losses. Freehold property was revalued at the transition date to FRS 102 and is now held as deemed cost and subsequently measured net of depreciation and any impairment losses. For freehold properties depreciation is only recognised on the cost attributable to buildings, not land.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2% straight line
Motor vehicles
20% of written down value
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.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
1
Accounting policies
(Continued)
Page 13
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.
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.
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
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
1
Accounting policies
(Continued)
Page 14
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.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
1
Accounting policies
(Continued)
Page 15
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
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.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
1
Accounting policies
(Continued)
Page 16
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
The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in acordance with the rules of the scheme. Assets of these schemes are held independently of the company.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
1
Accounting policies
(Continued)
Page 17
1.14
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:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 'Related Party Disclosures' - Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Dunview Limited. These consolidated financial statements are available from its registered office, Broadoak, Newham-on-Severn, Gloucestershire, GL14 1JF.
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. The directors have concluded that there are no significant judgements or estimates.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Social care services
8,712,336
8,273,166
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
3
Turnover and other revenue
(Continued)
Page 18
2024
2023
£
£
Turnover analysed by geographical market
UK
8,712,336
8,273,166
2024
2023
£
£
Other significant revenue
Grants received
22,822
59,509
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(22,822)
(59,509)
Fees payable to the company's auditor for the audit of the company's financial statements
35,985
37,006
Depreciation of owned tangible fixed assets
210,075
222,832
Depreciation of tangible fixed assets held under finance leases
30,359
20,563
Loss on disposal of tangible fixed assets
4,968
12,885
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
15
16
Care Services
170
155
Total
185
171
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,068,530
4,568,920
Social security costs
474,520
425,895
Pension costs
292,770
278,498
5,835,820
5,273,313
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
Page 19
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,058,187
937,416
Company pension contributions to defined contribution schemes
54,543
45,911
1,112,730
983,327
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
455,774
451,513
Company pension contributions to defined contribution schemes
10,338
10,338
7
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
10,869
8,970
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
251,622
230,994
Deferred tax
Origination and reversal of timing differences
122,836
30,412
Total tax charge
374,458
261,406
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
8
Taxation
(Continued)
Page 20
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,055,591
1,072,417
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
263,898
230,784
Tax effect of expenses that are not deductible in determining taxable profit
5,098
17,502
Adjustments in respect of prior years
126,063
32,919
Effect of change in corporation tax rate
(402)
Group relief
(72,538)
(64,094)
Depreciation on assets not qualifying for tax allowances
51,937
44,697
Taxation charge for the year
374,458
261,406
9
Tangible fixed assets
Freehold property
Motor vehicles
Total
£
£
£
Cost or valuation
At 1 September 2023
14,005,000
245,477
14,250,477
Additions
27,240
27,240
Disposals
(41,123)
(41,123)
At 31 August 2024
14,005,000
231,594
14,236,594
Depreciation and impairment
At 1 September 2023
1,050,375
113,205
1,163,580
Depreciation charged in the year
210,075
30,359
240,434
Eliminated in respect of disposals
(33,404)
(33,404)
At 31 August 2024
1,260,450
110,160
1,370,610
Carrying amount
At 31 August 2024
12,744,550
121,434
12,865,984
At 31 August 2023
12,954,625
132,272
13,086,897
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
9
Tangible fixed assets
(Continued)
Page 21
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £30,359 (2023 - £20,563) for the year.
2024
2023
£
£
Motor vehicles
121,435
144,501
The freehold properties are deemed to be carried at cost, representing the frozen valuation at 1 August 2014, as permitted under the transitional arrangements to FRS102. The historical cost of the freehold properties included in the valuations amounted to £5,356,539.
There is a legal charge over the freehold properties in favour of Royal Bank of Scotland. This is security for the bank loan held in the group.
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
247,372
319,435
Amounts due from group undertakings
8,557,616
7,307,565
Other debtors
1,291
1,291
Prepayments and accrued income
70,142
13,293
8,876,421
7,641,584
11
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
13
30,716
30,748
Trade creditors
95,884
101,745
Amounts owed to group undertakings
3,119,467
3,119,466
Corporation tax
176,960
60,338
Other taxation and social security
166,096
168,617
Other creditors
475,950
524,941
Accruals and deferred income
154,778
142,384
4,219,851
4,148,239
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
Page 22
12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
13
42,416
49,795
13
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
28,091
32,390
In two to five years
55,660
68,568
83,751
100,958
Less: future finance charges
(10,619)
(20,415)
73,132
80,543
Finance lease payments represent rentals payable by the company for certain items of motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
14
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
184,430
187,656
Revaluations
1,846,998
1,720,936
2,031,428
1,908,592
2024
Movements in the year:
£
Liability at 1 September 2023
1,908,592
Charge to profit or loss
122,836
Liability at 31 August 2024
2,031,428
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
Page 23
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
292,770
278,498
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.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
17
Operating lease commitments
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
1,560
1,560
Between two and five years
56
1,620
1,616
3,180
18
Related party transactions
During the year, £60,000 (2023: £60,000) was charged by N. McGrail, director, for professional services. At the year end no amount was outstanding.
The company has taken advantage of the exemption available in section 33 of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
19
Ultimate controlling party
The immediate parent company is Stones Holdings Limited, a company registered in England & Wales, and the ultimate parent company is Dunview Limited, a company registered in England & Wales which is controlled by Mr D Quinlan.
Dunview Limited prepares group financial statements and copies can be obtained from the registered office.
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