Company registration number 11613828 (England and Wales)
TRINITY LL LTD
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TRINITY LL LTD
COMPANY INFORMATION
Directors
Dr A Sivananthan
Mrs K Sivananthan
Company number
11613828
Registered office
31/33 Commercial Road
Poole
Dorset
BH14 0HU
Auditor
Morris Lane
31/33 Commercial Road
Poole
Dorset
BH14 0HU
Bankers
National Westminster Bank Plc
13 Strathenden Parade
Old Dover Road
London
United Kingdom
SE3 9BJ
Solicitors
Gaby Hardwicke Solicitors
34 Wellington Square
Hastings
East Sussex
TN34 1PN
TRINITY LL LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Income statement
9
Group statement of comprehensive income
10
Group statement of financial position
11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 36
TRINITY LL LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The group’s strategy during 2023 was to improve on performance and efficiency whilst providing a premium service to all care clients.

 

A programme of capital investment has continued to ensure quality of provision of care.     

 

The group operates to a task-oriented doctrine to enable decision making at all levels to be decisive and swift. This is further complemented by a limited number of shareholders whose short, medium and long-term objectives are aligned and benchmark performance by year on year EBITDAM growth.

 

During this accounting year the group has achieved a profit on ordinary activities before taxation of £1,484,058 (2022: £992,605). As at 31 December 2023, the group had net assets of £1,580,665 (2022: £923,486).

 

The key challenges continue to be the recruitment of permanent nursing and care staff, a challenge faced by many operators in the sector. In 2024, the group will continue to focus on meeting and exceeding CQC regulations in provision of care, recruitment of quality staff whilst achieving further revenue growth.

Principal risks and uncertainties

The increases in the cost of living, inflation and interest rises continue to pose the most significant challenge for the business over the coming year.  Food prices, utilities, wages and interest rates continue to rise and although there is some hope of this levelling out there remains much uncertainty.

 

The uncertainty regarding the CQC inspection process continues to put pressure on our business and the staff team, but we work tirelessly to ensure that this does not affect the financial success of the business.

 

Whilst Covid restrictions & testing requirements have eased, reporting to local authorities, Public Health England and CQC continue to add a significant administrative strain on the business and we continue to look for ways to minimise the effect of this.

Key performance indicators

Key Metrics:

On behalf of the board

Mrs K Sivananthan
Director
20 May 2025
TRINITY LL LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of providing residential care home facilities.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £450,000. The directors do not recommend payment of a further dividend.

Directors

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

Dr A Sivananthan
Mrs K Sivananthan
Financial instruments
Treasury operations and financial instruments

The group operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the group’s activities.

 

The group’s principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the group’s activities, and bank overdrafts, loans and corporate bonds, the main purpose of which is to raise finance for the group’s operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions which the group enters into principally comprise forward exchange contracts. In accordance with group’s treasury policy, derivative instruments are not entered into for speculative purposes.

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Post reporting date events

On 23 October 2024 Trinity LL Ltd entered into a new facility agreement with its bankers whereby an existing loan totalling £6.65m was repaid, and a new loan was drawndown for £6.85m. The new loan is due for repayment in October 2039 and interest is payable at a rate of 4.15% per annum.

 

Subsequent to the year end one of the companies, Golden Years Ltd, that was party to the composite guarantee referred to in note 24, repaid £4,517,616 of the debt due, thereby significantly reducing the maximum exposure of the company.

TRINITY LL LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Auditor

The auditor, Morris Lane, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of fair review of the business and likely future developments.

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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs K Sivananthan
Director
20 May 2025
TRINITY LL LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

TRINITY LL LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRINITY LL LTD
- 5 -
Opinion

We have audited the financial statements of Trinity LL Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

TRINITY LL LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRINITY LL LTD
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

 

Identifying and assessing the risks of material misstatement due to irregularities, including fraud

 

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and company through discussion with the directors and from our general commercial experience. The identified laws and regulations were communicated to the audit team in order that they remained alert to any non-compliance throughout the audit.

 

The group and company are subject to laws and regulations which have a direct effect on the financial statements and the disclosures contained therein. These have been identified as: the financial reporting framework under which the group and company operates - Financial Reporting Standard 102; Statutory Instrument 2008/410 – The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008; the Companies Act 2006 and taxation legislation including pay as you earn; value added tax; corporation tax and pensions legislation.

 

In addition to the above, the group and company are subject to other operational laws and regulations where non-compliance may have a material effect on the financial statements. Non-compliance of such laws and regulations may result in litigation, the imposition of fines or the closure of the business which could have a material impact on amounts or disclosures in the financial statements. We have identified the following laws and regulations which are more likely to have significant effect as: compliance with the Care Quality Commission regulations; food hygiene laws; health and safety laws; General Data Protection Regulation (GDPR) and employment law.

TRINITY LL LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRINITY LL LTD
- 7 -

In order to identify risks of material misstatement due to fraud, we assessed events and conditions where opportunities and incentives may exist within the company for fraud to occur. Our risk assessment procedures included enquiring of directors as to any instances of fraud, their procedures to identify fraud and by using analytical procedures to identify any unusual or unexpected relationships. We identified the greatest potential for fraud in the following areas: recognition of income; diversion of income; ghost employees and grant income. As required by auditing standards, we are also required to perform specific procedures to respond to the risk of management override.

 

The identified risks of material misstatement due to fraud were communicated to the audit team in order that they remained alert to any non-compliance throughout the audit.

 

Audit procedures designed to respond to the risks of material misstatement due to irregularities, including fraud

 

As a result of performing our risk assessments as detailed above, we planned and performed our audit so as to identify non-compliance with such laws and regulations, including fraud by undertaking the following:

 

 

Due to the inherent limitations of an audit, there is an unavoidable risk that, despite properly planning and performing our audit in accordance with auditing standards, some material misstatements may not have been detected.

Auditing standards limit the audit procedures required to identify non-compliance with other operational laws and regulations to enquiry of directors and management and inspection of any correspondence. If a breach of operational regulations is not evident from relevant correspondence or disclosed to us, an audit is unlikely to detect that breach. In addition, the further removed non-compliance with laws and regulations is from the events and transactions included in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

 

In addition, the risk of not detecting material misstatement from due to fraud is higher than the risk of one not being detected through error as fraud may involve deliberate concealment through collusion, forgery, misrepresentations and intentional omissions.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

TRINITY LL LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRINITY LL LTD
- 8 -

Use of our report

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

Michelle Pettifer (Senior Statutory Auditor)
For and on behalf of Morris Lane, Statutory Auditor
Chartered Accountants
31/33 Commercial Road
Poole
Dorset
BH14 0HU
20 May 2025
TRINITY LL LTD
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Revenue
3
7,285,992
5,863,560
Administrative expenses
(5,289,868)
(4,648,300)
Other operating income
22,395
55,822
Operating profit
4
2,018,519
1,271,082
Finance costs
7
(534,461)
(278,477)
Profit before taxation
1,484,058
992,605
Tax on profit
8
(376,879)
(205,300)
Profit for the financial year
23
1,107,179
787,305
Profit for the financial year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

TRINITY LL LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
1,107,179
787,305
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
1,107,179
787,305
Total comprehensive income for the year is all attributable to the owners of the parent company.
TRINITY LL LTD
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Non-current assets
Goodwill
10
618,401
735,657
Property, plant and equipment
11
8,651,541
8,648,339
9,269,942
9,383,996
Current assets
Inventories
15
3,000
3,000
Trade and other receivables
16
2,384,190
2,734,931
Cash and cash equivalents
740,023
147,836
3,127,213
2,885,767
Current liabilities
17
(8,890,164)
(10,033,694)
Net current liabilities
(5,762,951)
(7,147,927)
Total assets less current liabilities
3,506,991
2,236,069
Non-current liabilities
18
(636,004)
-
Provisions for liabilities
Deferred tax liability
20
1,290,322
1,312,583
(1,290,322)
(1,312,583)
Net assets
1,580,665
923,486
Equity
Called up share capital
22
2
2
Retained earnings
23
1,580,663
923,484
Total equity
1,580,665
923,486

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 20 May 2025 and are signed on its behalf by:
20 May 2025
Mrs K Sivananthan
Director
Company registration number 11613828 (England and Wales)
TRINITY LL LTD
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Non-current assets
Investments
12
5,871,564
5,871,564
Current assets
Trade and other receivables
16
3,779,233
5,239,469
Cash and cash equivalents
250,566
3,756
4,029,799
5,243,225
Current liabilities
17
(7,066,565)
(9,524,856)
Net current liabilities
(3,036,766)
(4,281,631)
Total assets less current liabilities
2,834,798
1,589,933
Non-current liabilities
18
(636,004)
-
Net assets
2,198,794
1,589,933
Equity
Called up share capital
22
2
2
Retained earnings
23
2,198,792
1,589,931
Total equity
2,198,794
1,589,933

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £1,058,861 (2022: £850,382 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 20 May 2025 and are signed on its behalf by:
20 May 2025
Mrs K Sivananthan
Director
Company registration number 11613828 (England and Wales)
TRINITY LL LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
2
476,179
476,181
Year ended 31 December 2022:
Profit and total comprehensive income
-
787,305
787,305
Dividends
9
-
(340,000)
(340,000)
Balance at 31 December 2022
2
923,484
923,486
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,107,179
1,107,179
Dividends
9
-
(450,000)
(450,000)
Balance at 31 December 2023
2
1,580,663
1,580,665
TRINITY LL LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
2
1,079,548
1,079,550
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
850,383
850,383
Dividends
9
-
(340,000)
(340,000)
Balance at 31 December 2022
2
1,589,931
1,589,933
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,058,861
1,058,861
Dividends
9
-
(450,000)
(450,000)
Balance at 31 December 2023
2
2,198,792
2,198,794
TRINITY LL LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(2,457,426)
626,844
Interest paid
(534,461)
(278,477)
Income taxes paid
(35,768)
(36,018)
Net cash (outflow)/inflow from operating activities
(3,027,655)
312,349
Investing activities
Purchase of property, plant and equipment
(154,816)
(43,882)
Net cash used in investing activities
(154,816)
(43,882)
Financing activities
Proceeds of borrowings
4,329,626
416,385
Repayment of bank loans
(104,967)
(395,825)
Dividends paid to equity shareholders
(450,000)
(340,000)
Net cash generated from/(used in) financing activities
3,774,659
(319,440)
Net increase/(decrease) in cash and cash equivalents
592,188
(50,973)
Cash and cash equivalents at beginning of year
147,836
198,808
Cash and cash equivalents at end of year
740,023
147,836
TRINITY LL LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
2,310,517
(1,164,559)
Interest paid
(509,398)
(272,785)
Net cash inflow/(outflow) from operating activities
1,801,119
(1,437,344)
Investing activities
Dividends received
1,610,000
1,150,000
Net cash generated from investing activities
1,610,000
1,150,000
Financing activities
Repayment of borrowings
(2,609,342)
1,025,368
Repayment of bank loans
(104,967)
(395,825)
Dividends paid to equity shareholders
(450,000)
(340,000)
Net cash (used in)/generated from financing activities
(3,164,309)
289,543
Net increase in cash and cash equivalents
246,810
2,199
Cash and cash equivalents at beginning of year
3,756
1,557
Cash and cash equivalents at end of year
250,566
3,756
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Trinity LL Ltd (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is 31/33 Commercial Road, Poole, Dorset, BH14 0HU.

 

The group consists of Trinity LL Ltd and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £1,058,861 (2022: £850,382 profit).

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Trinity LL Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.4
Going concern

The directors have adopted the going concern basis in preparing these accounts after assessing the principal risks applicable to the company. These include rising inflation, rising interest rates, staff shortages as a result of Brexit, the increase in the National Living Wage for employees over the age of 21, the cost of living crisis and higher insurance premiums, together with the group's compliance with loan covenants. The directors consider the company to be able to meet its obligations as they fall due for a period of at least 12 months from the date of signing these financial statements, and to be well placed to manage its financing and business risks satisfactorily. Overall, the directors do not consider there to be a cause for material uncertainty regarding the company’s going concern status as at the date of signing these financial statements.

1.5
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the supply of care services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where payments are received from customers in advance of services provided the amounts are recorded as deferred income and included as part of payables due within one year.

1.6
Intangible fixed assets - goodwill

Purchased goodwill (representing the excess of the fair value of the consideration over the fair value of the separable net assets acquired) arising in respect of acquisitions is capitalised.

 

After initial recognition, purchased goodwill is stated at cost less amortisation and any impairment losses accumulated following impairment reviews carried out. Amortisation is charged on a straight line basis in equal annual instalments over 10 years, which is considered to be its estimated useful economic life.

 

Negative goodwill arising in respect of acquisitions is included within fixed assets and is released to the profit and loss account in the periods in which the fair values of the non-monetary assets purchased on the same acquisition are recovered, whether through depreciation or sale.

 

On the subsequent disposal of the business acquired, the profit or loss on disposal is calculated after charging (crediting) the unamortised amount of any related goodwill (negative goodwill).

1.7
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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 buildings
2% straight line basis
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance

Freehold land is not depreciated.

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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 recognised in the income statement.

1.8
Non-current investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of non-current assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -

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

1.10
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
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.

1.12
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 trade and other receivables 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.

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 income statement 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 group’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 income statement, 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 if, and only if, there is 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.

1.15
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 non-current 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.

1.16
Retirement benefits

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

1.17
Leases

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

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
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.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.19

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

1.20

Liquidity Risk

The group manages its cash and borrowing requirement in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

1.21

Interest rate risk

The group is exposes to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Revenue

An analysis of the group's revenue is as follows:

2023
2022
£
£
Revenue analysed by class of business
Care services
7,285,992
5,863,560
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Revenue
(Continued)
- 24 -
2023
2022
£
£
Other revenue
Grants received
-
55,822
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(55,822)
Depreciation of owned property, plant and equipment
151,614
154,501
Amortisation of intangible assets
117,256
117,256
Operating lease charges
23,640
19,965

Amortisation of intangible assets is included in administrative expenses.

 

Government grants received relate to various Covid-19 support schemes.

5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,076
6,971
Audit of the financial statements of the company's subsidiaries
19,828
18,854
28,904
25,825
For other services
Taxation compliance services
15,582
2,640
All other non-audit services
42,968
39,323
58,550
41,963
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
2
2
2
2
Care staff
83
76
-
-
Home management
1
-
-
-
Administration
2
-
-
-
Total
88
78
2
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,752,204
3,216,626
-
0
-
0
Social security costs
205,606
162,522
-
-
Pension costs
40,863
25,972
-
0
-
0
3,998,673
3,405,120
-
0
-
0
7
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
509,392
272,776
Other finance costs:
Other interest
25,069
5,701
Total finance costs
534,461
278,477
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
400,605
231,000
Adjustments in respect of prior periods
(1,465)
(80)
Total current tax
399,140
230,920
Deferred tax
Origination and reversal of timing differences
(22,261)
(25,620)
Total tax charge
376,879
205,300

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:

2023
2022
£
£
Profit before taxation
1,484,058
992,605
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
349,050
188,595
Tax effect of expenses that are not deductible in determining taxable profit
2,344
2,648
Amortisation on assets not qualifying for tax allowances
27,579
22,279
Under/(over) provided in prior years
(1,465)
(80)
Depreciation in excess on capital allowances
21,622
17,741
Deferred tax current period
(22,261)
(25,620)
Other adjustments
10
(263)
Taxation charge
376,879
205,300
9
Dividends
2023
2022
2023
2022
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary
Final paid
225,000.00
170,000.00
450,000
340,000
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
1,172,555
Amortisation and impairment
At 1 January 2023
436,898
Amortisation charged for the year
117,256
At 31 December 2023
554,154
Carrying amount
At 31 December 2023
618,401
At 31 December 2022
735,657
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

Intangible fixed assets with a carrying amount of £618,401 (2022: £735,657) have been pledged to secure liabilities of the group.

11
Property, plant and equipment
Group
Freehold buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 January 2023
8,765,313
371,876
100,351
9,237,540
Additions
106,490
44,109
4,217
154,816
At 31 December 2023
8,871,803
415,985
104,568
9,392,356
Depreciation and impairment
At 1 January 2023
311,332
216,652
61,217
589,201
Depreciation charged in the year
90,942
50,190
10,482
151,614
At 31 December 2023
402,274
266,842
71,699
740,815
Carrying amount
At 31 December 2023
8,469,529
149,143
32,869
8,651,541
At 31 December 2022
8,453,981
155,224
39,134
8,648,339
The company had no property, plant and equipment at 31 December 2023 or 31 December 2022.
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Property, plant and equipment
(Continued)
- 28 -

Freehold land and buildings previously classed as Investment property were reclassified as Property, plant and equipment following the early adoption of the provisions of the Triennial Review 2017. The freehold land and buildings were revalued as at 30 June 2018 at open market value by the directors based on advice received from property valuers and their knowledge of the local market. The company took advantage of the transitional provisions in accordance with the Triennial Review 2017 to carry those assets at that value less depreciation in subsequent years. Subsequent additions to freehold land and buildings are included at cost.

Property, plant and equipment with a carrying amount of £8,651,541 (2022: £8,648,339) have been pledged to secure liabilities of the group.

The comparable amounts for land and buildings under the historical cost convention are:

2023
2022
£
£
Group
Cost
3,362,588
3,256,098
Accumulated depreciation
(522,424)
(522,424)
Carrying value
2,840,164
2,733,674
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
5,871,564
5,871,564
Financial assets pledged as collateral

Fixed asset investments with a carrying amount of £5,871,564 (2022: £5,871,564) have been pledged to secure liabilities of the company.

Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
5,871,564
Carrying amount
At 31 December 2023
5,871,564
At 31 December 2022
5,871,564
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Culham Limited
England
Property investment
Ordinary
100.00
-
Aspray House Ltd
England
Residential care home
Ordinary
0
100.00

The investments in subsidiaries are all stated at cost, less provision for impairment.

 

The registered office of each of the above subsidiaries is 31/33 Commercial Road, Poole, Dorset BH14 0HU.

14
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets include:
Debt instruments measured at amortised cost
2,176,519
2,454,811
3,779,233
5,239,469
Carrying amount of financial liabilities include:
Measured at amortised cost
8,661,632
9,489,269
7,702,569
9,524,856

Further information relating to financial assets and liabilities can be found in notes 16, 17 and 18.

15
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Stocks
3,000
3,000
-
0
-
0

The carrying amount of inventories includes £3,000 (2022: £3,000) pledged as security for liabilities.

16
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
468,564
409,807
-
0
-
0
Amounts owed by group undertakings
-
-
2,143,186
5,209,822
Other receivables
1,707,955
2,045,004
1,636,047
29,647
Prepayments and accrued income
207,671
280,120
-
0
-
0
2,384,190
2,734,931
3,779,233
5,239,469

The carrying amount of trade and other receivables includes £2,384,190 (2022: £2,734,931) pledged as security for liabilities.

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
17
Current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
6,985,996
7,726,967
6,985,996
7,726,967
Other borrowings
19
-
0
1,001,891
-
0
1,743,139
Trade payables
303,380
180,320
4,555
5,835
Corporation tax payable
809,798
446,426
-
0
-
0
Other taxation and social security
54,738
97,999
-
-
Other payables
324,246
458,728
-
0
-
0
Accruals and deferred income
412,006
121,363
76,014
48,915
8,890,164
10,033,694
7,066,565
9,524,856
18
Non-current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
636,004
-
0
636,004
-
0
Amounts included above which fall due after five years are as follows:
Payable by instalments
250,001
-
250,001
-
19
Borrowings
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
7,622,000
7,726,967
7,622,000
7,726,967
Loans from group undertakings
-
0
470,586
-
0
514,647
Loans from related parties
-
0
531,305
-
0
1,228,492
7,622,000
8,728,858
7,622,000
9,470,106
Payable within one year
6,985,996
8,728,858
6,985,996
9,470,106
Payable after one year
636,004
-
0
636,004
-
0
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Borrowings
(Continued)
- 31 -

As at 31 December 2023, bank borrowings of £7,622,000 (2022: £7,726,967) were secured by way of:

 

As at 31 December 2023, the group had a variable rate loan of £6,961,877 (2022: £7,347,356) at an interest rate of 2.00% (2022: 2.00%) over the bank base rate. The loan was due to mature in October 2024, and was repaid in October 2024 when a new loan facility was entered into (further information can be found in note 27).

 

 

As at 31 December 2023, the group had a variable rate loan of £364,002 (2022: £379,611) at an interest rate of 2.07% (2022: 2.07%) over the bank base rate which is due to mature in September 2027.

 

As at 31 December 2023, the group had variable rate loans of £296,121 (2022: £nil) at an interest rate of 2.20% (2022: nil) over the bank base rate which is due to mature in June 2030.

 

During the previous financial year, group companies included within the banking group had incurred exceptional expenditure in respect of the acquisition of freehold property, refurbishment of freehold property and other non-recurring costs in connection with the trade. As a consequence of this expenditure, the company and the group were in breach of the covenants laid down by its bankers in respect of its bank loans totalling £7,726,967. As a result, the liability became payable on demand and the loan was therefore included in the financial statements as being due within one year on the basis that the company and the group had no unconditional right to defer its settlement for at least 12 months after that date. The bank have issued covenant waivers in this respect and the relationship of the company and the group with its bankers is excellent and the facilities have been conducted on the basis that there have been no breaches. There have been no further breaches since and therefore £636,004 of the current year's total liability has been reclassified as due after more than one year.

20
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
2023
2022
Group
£
£
Accelerated capital allowances
42,296
45,057
Revaluations
1,248,026
1,267,526
1,290,322
1,312,583
The company has no deferred tax assets or liabilities.
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 32 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
1,312,583
-
Credit to profit or loss
(22,261)
-
Liability at 31 December 2023
1,290,322
-

Of the deferred tax liability set out above, an amount of £10,777 is expected to reverse within 12 months in respect of accelerated capital allowances and an amount of £19,500 is expected to reverse in 12 months in respect of revaluations gains.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,863
25,972

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

At the year end there were contributions outstanding of £16,842 (2022: £13,839) shown in other creditors.

 

The company did not incur any costs in respect of defined contribution schemes.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2

Ordinary shares carry voting rights but have no right to fixed income or repayment of capital.

23
Reserves
Retained earnings

Retained earnings represents cumulative profits or losses, including unrealised profit on the remeasurement of investment properties, net of dividends paid and other adjustments.

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
24
Financial commitments, guarantees and contingent liabilities

At 31 December 2023, the company provided security for the group bank borrowings by way of a first legal mortgage over the freehold property, and a fixed and floating debenture over all the assets of the company. In addition, there is a composite guarantee between all the group companies and also those of Golden Years Ltd, Seabrooke Manor LL Ltd and Serene LL Ltd limited to £27,000,000 (2022: £27,000,000). As at 31 December 2023, the maximum exposure of the company in this respect of the composite guarantee between all parties was £23,165,673 (2022: £25,298,653). This maximum exposure has significantly reduced subsequent to the year end and further information is given in note 27.

25
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
29,591
22,722
-
-
Between two and five years
35,290
41,035
-
-
64,881
63,757
-
-
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of property, plant and equipment
57,076
-
-
-
27
Events after the reporting date

On 23 October 2024 Trinity LL Ltd entered into a new facility agreement with its bankers whereby an existing loan totalling £6.65m was repaid, and a new loan was drawndown for £6.85m. The new loan is due for repayment in October 2039 and interest is payable at a rate of 4.15% per annum.

 

Subsequent to the year end one of the companies, Golden Years Ltd, that was party to the composite guarantee referred to in note 24, repaid £4,517,616 of the debt due, thereby significantly reducing the maximum exposure of the company.

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
28
Related party transactions
Transactions with related parties

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

Rent paid
2023
2022
£
£
Group
Key management personnel
-
2,400
Company
Key management personnel
-
2,400

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the group
-
470,586
Entities under common control
-
531,305
Company
Entities with control, joint control or significant influence over the company
-
470,586
Entities over which the company has control, joint control or significant influence
-
44,061
Entities under common control
-
1,228,492

These loans are interest free and repayable on demand.

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
£
£
Group
Entities under common control
1,666,318
2,016,230
Company
Entities over which the company has control, joint control or significant influence
2,143,186
5,209,821
Entities under common control
1,636,046
26,906

These loans are interest free and repayable on demand.

TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Related party transactions
(Continued)
- 35 -
Other information

During the year, the group received income from entities under common control of £2,718,952 (2022: £2,833,426) in respect of care services provided.

 

Additional related party information is given in note 19 and note 24.

 

29
Directors' transactions

Dividends totalling £450,000 (2022: £340,000) were paid to Trinity LL Holdings Limited, which is wholly owned by the company directors.

 

Included in note 28 are amounts paid by the company to the directors of the group amounting to £nil (2022: £2,400) for use of the premises from which the group operates. This transaction was on a normal commercial basis.

Additional information regarding guarantees provided by directors is given in note 19.

30
Controlling party

The ultimate parent company is Trinity LL Holdings Ltd, whose registered office is Ordnance House, 31 Pier Road, St Helier, Jersey.

 

The company is ultimately controlled by Dr A Sivananthan and K Sivananthan by virtue of their individual 50% shareholdings in the ultimate parent company, Trinity LL Holdings Ltd.

31
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit after taxation
1,107,179
787,305
Adjustments for:
Taxation charged
376,879
205,300
Finance costs
534,461
278,477
Amortisation and impairment of intangible assets
117,256
117,256
Depreciation and impairment of property, plant and equipment
151,614
154,501
Movements in working capital:
Decrease/(increase) in trade and other receivables
350,741
(966,058)
(Decrease)/increase in trade and other payables
(5,095,556)
50,063
Cash (absorbed by)/generated from operations
(2,457,426)
626,844
TRINITY LL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
32
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit after taxation
1,058,861
850,383
Adjustments for:
Finance costs
509,398
272,785
Investment income
(1,610,000)
(1,150,000)
Movements in working capital:
Decrease/(increase) in trade and other receivables
1,460,236
(1,150,001)
Increase in trade and other payables
892,022
12,274
Cash generated from/(absorbed by) operations
2,310,517
(1,164,559)
33
Analysis of changes in net debt - group
1 January 2023
Cash flows
Non-cash movements
31 December 2023
£
£
£
£
Cash at bank and in hand
147,836
592,187
-
740,023
Borrowings excluding overdrafts
(8,728,858)
250,335
856,523
(7,622,000)
(8,581,022)
842,522
856,523
(6,881,977)
34
Analysis of changes in net debt - company
1 January 2023
Cash flows
Non-cash movements
31 December 2023
£
£
£
£
Cash at bank and in hand
3,756
246,810
-
250,566
Borrowings excluding overdrafts
(9,470,106)
981,903
866,203
(7,622,000)
(9,466,350)
1,228,713
866,203
(7,371,434)
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