143 false false false false true false false false false false false true false false false false false false 2023-08-01 Sage Accounts Production Advanced 2024 - FRS102_2024 928,729 838,112 135,161 135,161 1,308,885 43 282,692 1,026,236 xbrli:pure xbrli:shares iso4217:GBP 03591061 2023-08-01 2024-07-31 03591061 2024-07-31 03591061 2023-07-31 03591061 2022-08-01 2023-07-31 03591061 2023-07-31 03591061 2022-07-31 03591061 bus:RegisteredOffice 2023-08-01 2024-07-31 03591061 bus:OrdinaryShareClass1 2023-08-01 2024-07-31 03591061 bus:LeadAgentIfApplicable 2023-08-01 2024-07-31 03591061 bus:Director1 2023-08-01 2024-07-31 03591061 bus:Director2 2023-08-01 2024-07-31 03591061 bus:Director3 2023-08-01 2024-07-31 03591061 bus:Director4 2023-08-01 2024-07-31 03591061 bus:CompanySecretary1 2023-08-01 2024-07-31 03591061 core:WithinOneYear 2024-07-31 03591061 core:WithinOneYear 2023-07-31 03591061 core:NetGoodwill 2024-07-31 03591061 core:LandBuildings 2023-07-31 03591061 core:FurnitureFittings 2023-07-31 03591061 core:MotorVehicles 2023-07-31 03591061 core:LandBuildings 2024-07-31 03591061 core:FurnitureFittings 2024-07-31 03591061 core:MotorVehicles 2024-07-31 03591061 core:DeferredTaxation 2023-08-01 2024-07-31 03591061 core:FurnitureFittings 2023-08-01 2024-07-31 03591061 core:MotorVehicles 2023-08-01 2024-07-31 03591061 core:LandBuildings core:OwnedOrFreeholdAssets 2024-07-31 03591061 core:LandBuildings core:OwnedOrFreeholdAssets 2023-07-31 03591061 core:RetainedEarningsAccumulatedLosses 2022-08-01 2023-07-31 03591061 core:RetainedEarningsAccumulatedLosses 2023-08-01 2024-07-31 03591061 core:UKTax 2023-08-01 2024-07-31 03591061 core:UKTax 2022-08-01 2023-07-31 03591061 bus:OrdinaryShareClass1 2022-08-01 2023-07-31 03591061 core:ShareCapital 2024-07-31 03591061 core:ShareCapital 2023-07-31 03591061 core:RetainedEarningsAccumulatedLosses 2024-07-31 03591061 core:RetainedEarningsAccumulatedLosses 2023-07-31 03591061 core:ShareCapital 2022-07-31 03591061 core:RetainedEarningsAccumulatedLosses 2022-07-31 03591061 core:AcceleratedTaxDepreciationDeferredTax 2024-07-31 03591061 core:AcceleratedTaxDepreciationDeferredTax 2023-07-31 03591061 core:LandBuildings 2023-07-31 03591061 core:FurnitureFittings 2023-07-31 03591061 core:MotorVehicles 2023-07-31 03591061 core:DeferredTaxation 2023-07-31 03591061 core:DeferredTaxation 2024-07-31 03591061 bus:LeadAgentIfApplicable 2022-08-01 2023-07-31 03591061 bus:MediumEntities 2023-08-01 2024-07-31 03591061 bus:Audited 2023-08-01 2024-07-31 03591061 bus:Medium-sizedCompaniesRegimeForAccounts 2023-08-01 2024-07-31 03591061 bus:PrivateLimitedCompanyLtd 2023-08-01 2024-07-31 03591061 bus:FullAccounts 2023-08-01 2024-07-31 03591061 bus:OrdinaryShareClass1 2024-07-31 03591061 bus:OrdinaryShareClass1 2023-07-31 03591061 core:NetGoodwill 2023-08-01 2024-07-31 03591061 core:FinancialAssetsFairValueThroughProfitOrLossDeferredTax 2024-07-31 03591061 core:FinancialAssetsFairValueThroughProfitOrLossDeferredTax 2023-07-31 03591061 core:CapitalReserve 2023-08-01 2024-07-31 03591061 core:AllSubsidiaries 2023-08-01 2024-07-31
COMPANY REGISTRATION NUMBER: 03591061
MILLS FAMILY LIMITED
FINANCIAL STATEMENTS
31 July 2024
MILLS FAMILY LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 JULY 2024
Contents
Pages
Officers and professional advisers
1
Strategic report
2 to 3
Directors' report
4 to 5
Independent auditor's report to the members
6 to 10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 to 23
MILLS FAMILY LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
M G Mills
A T Mills
S A Pepper
J K Partridge
Company secretary
M G Mills
Registered office
Fallowfield
Ashfield Lane
Chislehurst
Kent
England
BR7 6LQ
Auditor
Opass Billings Wilson & Honey LLP
Chartered Certified Accountants & statutory auditor
Numeric House
98 Station Road
Sidcup
Kent
DA15 7BY
Bankers
Natwest
Chatham Customer Service Centre
Western Avenue
Waterside
Chatham Maritime
Kent
ME4 4RT
Solicitors
Clarkson Wright & Jakes
Valiant House
12 Knoll Road
Orpington
Kent
BR6 0PG
MILLS FAMILY LIMITED
STRATEGIC REPORT
YEAR ENDED 31 JULY 2024
The directors present their strategic report and the financial statements of Mills Family Limited for the year ended 31 July 2024.
Review of the business The directors are pleased to report a profit before tax for the financial year of £866,054 (2023: £1,057,224) and that at 31 July 2024 the company's net assets were £8,904,991 (2023: £8,560,262). The directors believe that the company is well positioned to take advantage of future opportunities.
Principal risks and uncertainties The board and management team consider the risk implications of all significant business decisions and risks are reassessed on a regular basis to ensure that any changes in the company's operations, or the external environment, are identified and appropriately managed. The key risks affecting the business are as follows; Operating risk The company's reputation and continued success depend on its ability to provide care to the elderly and adults with learning disabilities, efficiently, cost effectively and compliantly. Principal controls - The company's comprehensive quality assurance management system provides a framework to ensure operational policies and procedures are communicated, understood and adhered to. Market risk The market in which the company operates is regulated by the care quality commission, which oversees the standards of care for each home. Funded referred admissions by social services departments are based on reports by the care quality commission. Principal controls - Mills Family Limited maintains its competitiveness by actively managing its operational risk to provide a high level of service to its customers. The company keeps abreast of developments in the market by maintaining good relationships with the care sector. Personnel risk The company is reliant upon its small but high calibre management team and on the performance of its trained and experienced staff. Principal controls - The company places great emphasis on recruitment, training and ongoing assessment of staff. The directors consider succession planning issues on a regular basis. Financial risk As a privately owned business, Mills Family Limited's trading activity is principally funded from retained profits and is therefore reliant on converting these profits into cash. Principal controls - Financial monitoring, forecasting and planning is a continuous process, with particular emphasis on cash flow management and delivering a cost effective service to customers whilst maintaining an acceptable return to shareholders.
Key performance indicators The main financial and non financial KPIs of the business are occupancy and fee levels per home. These are all reviewed on a quarterly basis with the management accounts, cost centre reports are produced monthly and variances investigated by the management team.
Future plans The business is continually looking for opportunities to expand and grow the business whilst maintaining sufficient reserves to finance the business needs.
This report was approved by the board of directors on 21 May 2025 and signed on behalf of the board by:
M G Mills
Director
MILLS FAMILY LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 JULY 2024
The directors present their report and the financial statements of the company for the year ended 31 July 2024 .
Directors
The directors who served the company during the year were as follows:
M G Mills
A T Mills
S A Pepper
J K Partridge
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 21 May 2025 and signed on behalf of the board by:
M G Mills
Director
MILLS FAMILY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MILLS FAMILY LIMITED
YEAR ENDED 31 JULY 2024
Opinion
We have audited the financial statements of Mills Family Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 July 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the 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.
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: We identify and assess the key risk areas of material misstatement and then design and perform audit procedures in relation to those risks. Materiality has been calculated based on revenue and gross assets and has been assessed at the preliminary levels of £61,200 and £110,600. The key risk areas were considered to be - Threat of management override of controls - Completeness and accuracy of related party transactions - Completeness and recognition of income - High risk associated with the high staff levels - Compliance with Care Quality Commission Regulations The appropriate audit approach was considered and the following audit work applied to these areas: - Our audit work to test management override involved reviewing journals throughout the year to confirm reasonableness as well as various discussions with management during the audit. - Our audit work in respect of related party transactions involved ensuring the intercompany balances and transactions agreed at the year end as well as reviewing various expenditure codes to ensure there has been no mispostings. - Our audit work in respect of income included agreeing a sample of income through to the sales invoices/council remittances raised, confirming these had been correctly allocated to the sales and nominal ledgers as well as reviewing invoices raised around the year end to confirm that all income had been recorded in the correct period. - Our audit testing in respect of high staff levels involved agreeing a sample of new starters to personnel files to confirm existence and evidence of a bona fide employee contract, communication with management to ensure there has been no instances of fraud within the company due to high staff levels, enquiries in respect of staff turnover levels to confirm these are consistent with expectations, as well as remaining vigilant throughout the audit process to ensure any evidence of issues in respect of this risk are identified. - Our audit testing in respect of compliance with Care Quality Commission Regulations involved reviewing recent inspection reports published by the regulator to confirm compliance with laws and regulations. We performed substantive testing to identify any large fluctuations or significant and unexpected losses which may indicate risk of material misstatements due to fraud. We reviewed the financial statement disclosures and assessed compliance with the following relevant laws and regulations: - Care Quality Commission Regulations - Bromley Social Services Regulations - Fire Safety Regulations - Companies Act 2006 - Data Protection Act 2018. - Health and Safety Legislations Irregularities which result from fraud are inherently more difficult to detect than irregularities which result from error, however there have never been any instances of fraud encountered with the company and there are controls in place through the segregation of duties and regular reviews of management accounts which reduce the risk of fraud through management override. All audit team members were made aware of the relevant laws & regulations applicable to the company together with potential fraud risks and remained alert to any indications of fraud non compliance with the laws & regulations throughout the audit. As part of an audit in accordance with ISAs (UK), we exercise professional judgment 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 purpose of expressing an opinion on the effectiveness of the 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. 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.
Philip Benson Woodman FCCA
(Senior Statutory Auditor)
For and on behalf of
Opass Billings Wilson & Honey LLP
Chartered Certified Accountants & statutory auditor
Numeric House
98 Station Road
Sidcup
Kent
DA15 7BY
21 May 2025
MILLS FAMILY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 JULY 2024
2024
2023
Note
£
£
Turnover
4
6,070,907
6,016,857
Cost of sales
4,217,565
3,984,284
------------
------------
Gross profit
1,853,342
2,032,573
Administrative expenses
987,757
977,921
------------
------------
Operating profit
6
865,585
1,054,652
Interest payable and similar expenses
10
( 469)
( 2,572)
------------
------------
Profit before taxation
866,054
1,057,224
Tax on profit
11
( 62,675)
219,112
---------
------------
Profit for the financial year and total comprehensive income
928,729
838,112
---------
------------
All the activities of the company are from continuing operations.
MILLS FAMILY LIMITED
STATEMENT OF FINANCIAL POSITION
31 July 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
14
9,997,266
10,013,103
Current assets
Stocks
15
9,430
26,240
Debtors
16
758,594
879,548
Cash at bank and in hand
433,784
204,147
------------
------------
1,201,808
1,109,935
Creditors: amounts falling due within one year
17
1,267,847
1,253,891
------------
------------
Net current liabilities
66,039
143,956
------------
-------------
Total assets less current liabilities
9,931,227
9,869,147
Provisions
Taxation including deferred tax
18
1,026,236
1,308,885
------------
------------
Net assets
8,904,991
8,560,262
------------
------------
Capital and reserves
Called up share capital
21
100
100
Profit and loss account
22
8,904,891
8,560,162
------------
------------
Shareholders funds
8,904,991
8,560,262
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 21 May 2025 , and are signed on behalf of the board by:
M G Mills
Director
Company registration number: 03591061
MILLS FAMILY LIMITED
STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 JULY 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 1 August 2022
100
8,630,050
8,630,150
Profit for the year
838,112
838,112
----
------------
------------
Total comprehensive income for the year
838,112
838,112
Dividends paid and payable
12
( 908,000)
( 908,000)
----
------------
------------
Total investments by and distributions to owners
( 908,000)
( 908,000)
At 31 July 2023
100
8,560,162
8,560,262
Profit for the year
928,729
928,729
----
------------
------------
Total comprehensive income for the year
928,729
928,729
Dividends paid and payable
12
( 584,000)
( 584,000)
----
---------
---------
Total investments by and distributions to owners
( 584,000)
( 584,000)
----
------------
------------
At 31 July 2024
100
8,904,891
8,904,991
----
------------
------------
MILLS FAMILY LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 JULY 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
928,729
838,112
Adjustments for:
Depreciation of tangible assets
38,199
41,253
Interest payable and similar expenses
( 469)
( 2,572)
Gains on disposal of tangible assets
( 475)
Tax on profit
( 62,675)
219,112
Accrued expenses/(income)
50,293
( 67,471)
Changes in:
Stocks
16,810
( 6,771)
Trade and other debtors
46,305
( 271,442)
Trade and other creditors
53,355
156,050
------------
---------
Cash generated from operations
1,070,547
905,796
Interest paid
469
2,572
Tax paid
( 235,017)
( 400,150)
------------
---------
Net cash from operating activities
835,999
508,218
------------
---------
Cash flows from investing activities
Purchase of tangible assets
( 22,362)
( 32,272)
Proceeds from sale of tangible assets
475
------------
---------
Net cash used in investing activities
( 22,362)
( 31,797)
------------
---------
Cash flows from financing activities
Dividends paid
( 584,000)
( 908,000)
------------
---------
Net cash used in financing activities
( 584,000)
( 908,000)
------------
---------
Net increase/(decrease) in cash and cash equivalents
229,637
( 431,579)
Cash and cash equivalents at beginning of year
204,147
635,726
---------
---------
Cash and cash equivalents at end of year
433,784
204,147
---------
---------
MILLS FAMILY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 JULY 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Fallowfield, Ashfield Lane, Chislehurst, Kent, BR7 6LQ, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the statement of comprehensive income. The financial statements are prepared in sterling, which is the functional currency of the entity.
Debtors
Debtors are initially recorded at fair value and are assessed for impairment at each year end date. If any impairments exist the debtors are remeasured to the present value of the expected future cash inflows.
Creditors
Creditors are initially recorded at fair value and are then remeasured to the present value of the expected future cash outflows.
Judgements and key sources of estimation uncertainty
There are no significant estimates or assumptions made that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Revenue recognition
Revenue refers to the amounts earned from the Company's principal activity; the operation of residential care homes. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
Fully Depreciated
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Tangible assets with a cost value in excess of £1,000 are capitalised, all items below this limit are expensed through the statement of comprehensive income.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
The freehold land and buildings show the residual value of the properties as equal to the original cost and are therefore not depreciated.
Fixtures, fittings and equipment
-
Over 4 - 7 years
Motor vehicles
-
Over 3 years
Stocks
Stock is measured at the lower of cost and net realisable value. Net realisable value is based upon estimated selling price less further costs expected to be incurred to complete and dispose. Provision is made for obsolete and slow-moving items.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
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 its liabilities. Financial instruments and their derivatives are categorised as held for trading or held as hedges. Amounts payable or receivable or derivatives held to manage interest rate risks are recognised over the period of the contract. Changes in the derivative's fair value are recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Fees receivable
6,070,907
6,016,857
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Stock expenditure
Included in cost of sales is £366,842 (2023: £331,805), which represents the total cost of materials used during the year.
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
38,199
41,253
Gains on disposal of tangible assets
( 475)
Impairment of trade debtors
4,270
--------
--------
Operating profit or loss is the profit or loss from business operations before deduction of interest and taxes.
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
10,000
10,000
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Administrative staff
128
110
Management staff
15
15
----
----
143
125
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,912,124
2,550,234
Social security costs
243,182
211,579
Other pension costs
59,944
87,793
------------
------------
3,215,250
2,849,606
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
104,264
103,371
---------
---------
10. Interest payable and similar expenses
2024
2023
£
£
Interest on debenture loans
( 1,664)
( 1,815)
Interest on obligations under finance leases and hire purchase contracts
( 1,466)
Other interest payable and similar charges
1,195
709
-------
-------
( 469)
( 2,572)
-------
-------
11. Tax on profit
Major components of tax (income)/expense
2024
2023
£
£
Current tax:
UK current tax expense
219,974
222,936
Deferred tax:
Origination and reversal of timing differences
( 282,649)
( 3,824)
---------
---------
Tax on profit
( 62,675)
219,112
---------
---------
Reconciliation of tax (income)/expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 21 %).
2024
2023
£
£
Profit on ordinary activities before taxation
866,054
1,057,224
---------
------------
Profit on ordinary activities by rate of tax
216,513
219,842
Effect of expenses not deductible for tax purposes
846
834
Effect of capital allowances and depreciation
2,615
2,260
Effect on deferred tax
( 282,649)
( 3,824)
---------
------------
Tax on profit
( 62,675)
219,112
---------
------------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2024
2023
£
£
Paid during the year
584,000
908,000
---------
---------
13. Intangible assets
Goodwill
£
Cost
At 1 August 2023 and 31 July 2024
135,161
---------
Amortisation
At 1 August 2023 and 31 July 2024
135,161
---------
Carrying amount
At 31 July 2024
---------
At 31 July 2023
---------
14. Tangible assets
Land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost/Valuation
At 1 August 2023
9,924,704
528,199
40,910
10,493,813
Additions
14,862
7,500
22,362
Disposals
( 303,213)
( 303,213)
------------
---------
--------
-------------
At 31 July 2024
9,924,704
239,848
48,410
10,212,962
------------
---------
--------
-------------
Depreciation
At 1 August 2023
461,237
19,473
480,710
Charge for the year
31,433
6,766
38,199
Disposals
( 303,213)
( 303,213)
------------
---------
--------
-------------
At 31 July 2024
189,457
26,239
215,696
------------
---------
--------
-------------
Carrying amount
At 31 July 2024
9,924,704
50,391
22,171
9,997,266
------------
---------
--------
-------------
At 31 July 2023
9,924,704
66,962
21,437
10,013,103
------------
---------
--------
-------------
Tangible assets held at valuation
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Freehold property
£
At 31 July 2024
Aggregate cost
4,014,449
Aggregate depreciation
------------
Carrying value
4,014,449
------------
At 31 July 2023
Aggregate cost
4,014,449
Aggregate depreciation
------------
Carrying value
4,014,449
------------
15. Stocks
2024
2023
£
£
Raw materials and consumables
9,430
26,240
-------
--------
16. Debtors
2024
2023
£
£
Trade debtors
431,328
456,902
Prepayments and accrued income
48,990
118,522
Other debtors
278,276
304,124
---------
---------
758,594
879,548
---------
---------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
449,177
449,035
Accruals and deferred income
49,209
73,565
Corporation tax
220,536
235,579
Social security and other taxes
138,443
128,378
Director loan accounts
39
39
Other creditors
410,443
367,295
------------
------------
1,267,847
1,253,891
------------
------------
The bankers for Mills Family Limited hold first charges over the properties known as: - Fallowfield Nursing Home, Ashfield Lane, Chislehurst Kent, BR7 6LQ - Sloane House, 28 Southend Road, Beckenham, Kent, BR3 5AA - Fairlight Residential Home, Bromley Lane, Chislehurst, Kent, BR7 6LL They also hold a debenture over all assets of the company. A third party guarantee limited to £7,156,000 has also been provided to the bank .
18. Provisions
Deferred tax (note 19)
£
At 1 August 2023
1,308,885
Additions
43
Charge against provision
( 282,692)
------------
At 31 July 2024
1,026,236
------------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 18)
1,026,236
1,308,885
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
9,798
9,755
Revaluation of freehold property
1,016,438
1,299,130
------------
------------
1,026,236
1,308,885
------------
------------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 59,944 (2023: £ 87,793 ).
21. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
22. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. Included in profit and loss reserves is £4,893,817 that is not distributable. This is the balance on the revaluation reserve, comprising total property revaluations of £5,910,255 net of its related deferred tax liability of £1,016,438 .
23. Analysis of changes in net debt
At 1 Aug 2023
Cash flows
At 31 Jul 2024
£
£
£
Cash at bank and in hand
204,147
229,637
433,784
Debt due within one year
(39)
(39)
---------
---------
---------
204,108
229,637
433,745
---------
---------
---------
24. Directors' advances, credits and guarantees
The overdrawn director's loan account for S Mills brought forward totalled £51,815. Repayments totalling £44,000 were made during the year and interest at the rate of 5% was charged on the outstanding balance, totalling £1,664. The total balance due to the company at the year end totalled £9,479. This director loan is repayable on demand.
25. Related party transactions
The staff loans for Harry Mills and Molly Mills of £10,000 each respectively were brought forward at the start of the year. These are both related to the key management personnel, director and shareholder, that being Martin Mills, by way of being children. The full loans, totalling £20,000 were outstanding at 31st July 2024. These are included within other debtors. These loans were made interest free and are repayable on demand. The company is related to Chislehurst Care Limited and Burstow Limited by the virtue that all companies are under the common directorship of Mr M Mills. Chislehurst Care Limited: At the year end, the company was owed £83,105 from Chislehurst Care Limited. This balance is included in Other Debtors. The company also owed Chislehurst Care Limited £5. This balance is included in Other Creditors. During the year, expenses were incurred by the company on Chislehurst Care Limited's behalf totalling £44,281, and Chislehurst Care Limited incurred expenses on the company's behalf totalling £16,243. Burstow Limited: At the year end, the company was owed £143,982 from Burstow Limited. This balance is included in Other Debtors. During the year, expenses were incurred by the company on Burstow Limited's behalf totalling £238. The company received loan repayments totalling £14,000 from Burstow Limited.
MILLS FAMILY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 JULY 2024
26. Controlling party
There is no ultimate controlling party.