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COMPANY REGISTRATION NUMBER: 04192349
CHISLEHURST CARE LIMITED
FINANCIAL STATEMENTS
31 July 2024
CHISLEHURST CARE 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 24
CHISLEHURST CARE LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
S J Mills
M G Mills
Company secretary
S J Mills
Registered office
Fairmount
Mottingham Lane
Mottingham
Kent
England
SE9 4RT
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
CHISLEHURST CARE LIMITED
STRATEGIC REPORT
YEAR ENDED 31 JULY 2024
The directors present their strategic report and the financial statements of Chislehurst Care Limited for the year ended 31 July 2024.
Review of the business The directors are pleased to report an operating profit of £652,148 (2023: £812,588). At 31 July 2024 the company's net assets were £7,241,709 (2023: £6,969,794). The directors believe that the company is now well placed to take full advantage of any future opportunities.
Principal risks and uncertainties The board and management team consider the risk implications of all significant business decisions and risks are re-assessed 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 - Chislehurst Care 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 within the care sector. Personnel risk The company is reliant on 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, Chislehurst Care Limited's trading 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
CHISLEHURST CARE 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:
S J Mills
M G Mills
Dividends
Particulars of recommended dividends are detailed in note 14 to the financial statements.
Future developments
The business is continually looking for opportunities to expand and grow whilst maintaining sufficient Reserves to finance the business needs.
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
CHISLEHURST CARE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHISLEHURST CARE LIMITED
YEAR ENDED 31 JULY 2024
Opinion
We have audited the financial statements of Chislehurst Care 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 a two materality levels during the audit, depending on whether we are testing items on the SOFP or SOCI. Based on these factors we have used our professional judgement and understanding of potential external users to set the level at £54,000 & £108,000. The key risk areas were considered to be completeness of income, management override of controls, relatd party transactions, high staff levels and Care Quality Commissions regulations. . - 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 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 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
CHISLEHURST CARE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 JULY 2024
2024
2023
Note
£
£
Turnover
4
3,622,393
3,593,423
Cost of sales
2,337,549
2,192,051
------------
------------
Gross profit
1,284,844
1,401,372
Administrative expenses
640,396
596,634
Other operating income
6
7,700
7,850
------------
------------
Operating profit
7
652,148
812,588
Other interest receivable and similar income
11
51,452
11,713
Interest payable and similar expenses
12
190,592
162,196
------------
------------
Profit before taxation
513,008
662,105
Tax on profit
13
161,093
431,896
---------
---------
Profit for the financial year and total comprehensive income
351,915
230,209
---------
---------
All the activities of the company are from continuing operations.
CHISLEHURST CARE LIMITED
STATEMENT OF FINANCIAL POSITION
31 July 2024
2024
2023
Note
£
£
£
Fixed assets
Intangible assets
15
458,333
583,333
Tangible assets
16
6,011,478
6,039,596
Investments
17
1,000
1,000
------------
------------
6,470,811
6,623,929
Current assets
Stocks
18
3,595
5,162
Debtors
19
2,921,650
2,793,197
Cash at bank and in hand
1,367,166
1,668,673
------------
------------
4,292,411
4,467,032
Creditors: amounts falling due within one year
20
881,823
1,449,060
------------
------------
Net current assets
3,410,588
3,017,972
------------
------------
Total assets less current liabilities
9,881,399
9,641,901
Creditors: amounts falling due after more than one year
21
2,424,186
2,464,018
Provisions
Taxation including deferred tax
23
215,504
208,089
------------
------------
Net assets
7,241,709
6,969,794
------------
------------
Capital and reserves
Called up share capital
26
100
100
Profit and loss account
27
7,241,609
6,969,694
------------
------------
Shareholders funds
7,241,709
6,969,794
------------
------------
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: 04192349
CHISLEHURST CARE 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
6,806,485
6,806,585
Profit for the year
230,209
230,209
----
------------
------------
Total comprehensive income for the year
230,209
230,209
Dividends paid and payable
14
( 67,000)
( 67,000)
----
------------
------------
Total investments by and distributions to owners
( 67,000)
( 67,000)
At 31 July 2023
100
6,969,694
6,969,794
Profit for the year
351,915
351,915
----
------------
------------
Total comprehensive income for the year
351,915
351,915
Dividends paid and payable
14
( 80,000)
( 80,000)
----
--------
--------
Total investments by and distributions to owners
( 80,000)
( 80,000)
----
------------
------------
At 31 July 2024
100
7,241,609
7,241,709
----
------------
------------
CHISLEHURST CARE LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 JULY 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
351,915
230,209
Adjustments for:
Depreciation of tangible assets
25,699
27,463
Amortisation of intangible assets
125,000
125,000
Other interest receivable and similar income
( 51,452)
( 11,713)
Interest payable and similar expenses
190,592
162,196
Loss/(gains) on disposal of tangible assets
1,958
( 867)
Tax on profit
161,093
431,896
Accrued expenses/(income)
11,665
( 21,051)
Changes in:
Stocks
1,567
136
Trade and other debtors
( 163,900)
( 210,408)
Trade and other creditors
( 74,971)
150,348
---------
---------
Cash generated from operations
579,166
883,209
Interest paid
( 190,592)
( 162,196)
Interest received
51,452
11,713
Tax paid
( 166,901)
( 225,858)
---------
---------
Net cash from operating activities
273,125
506,868
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 7,038)
( 102,656)
Proceeds from sale of tangible assets
7,499
46,800
---------
---------
Net cash from/(used in) investing activities
461
( 55,856)
---------
---------
Cash flows from financing activities
Proceeds from borrowings
( 484,798)
( 1,014,956)
Payments of finance lease liabilities
( 10,295)
15,077
Dividends paid
( 80,000)
( 67,000)
---------
------------
Net cash used in financing activities
( 575,093)
( 1,066,879)
---------
------------
Net decrease in cash and cash equivalents
( 301,507)
( 615,867)
Cash and cash equivalents at beginning of year
1,668,673
2,284,540
------------
------------
Cash and cash equivalents at end of year
1,367,166
1,668,673
------------
------------
CHISLEHURST CARE 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 Fairmount, Mottingham Lane, Mottingham, Kent, SE9 4RT, 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 profit or loss.
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
-
10 Years Straight Line
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. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
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
-
4 Years Straight Line
Motor vehicles
-
3 Years Straight Line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in the statement of comprehensive income. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stock is valued at the lower of cost and net realisable value is based upon estimated selling price less further costs expected to be incurred to complete and disposal. 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 instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities .
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
3,622,393
3,593,423
------------
------------
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 £140,710 (2023: £131,563), which represents the total cost of materials used during the year.
6. Other operating income
2024
2023
£
£
Rental income
7,700
7,850
-------
-------
7. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
125,000
125,000
Depreciation of tangible assets
25,699
27,463
Loss/(gains) on disposal of tangible assets
1,958
( 867)
Impairment of trade debtors
22,678
47,542
---------
---------
Operating profit or loss is the profit or loss from business operations before deduction of interest and taxes.
8. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
7,500
7,500
-------
-------
9. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
98
87
Administrative staff
8
8
----
----
106
95
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
1,810,892
1,614,030
Social security costs
133,399
116,653
Other pension costs
25,912
------------
------------
1,944,291
1,756,595
------------
------------
10. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
12,570
12,570
--------
--------
11. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
51,452
11,713
--------
--------
12. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
190,592
161,085
Other interest payable and similar charges
1,111
---------
---------
190,592
162,196
---------
---------
13. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
153,678
153,557
Deferred tax:
Origination and reversal of timing differences
7,415
278,339
---------
---------
Tax on profit
161,093
431,896
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 21 %).
2024
2023
£
£
Profit on ordinary activities before taxation
513,008
662,105
---------
---------
Profit on ordinary activities by rate of tax
126,327
134,054
Effect of capital allowances and depreciation
29,815
19,503
Utilisation of tax losses
( 2,464)
Effect on deferred tax
7,415
278,339
---------
---------
Tax on profit
161,093
431,896
---------
---------
14. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
80,000
67,000
--------
--------
15. Intangible assets
Goodwill
£
Cost
At 1 August 2023 and 31 July 2024
2,213,000
------------
Amortisation
At 1 August 2023
1,629,667
Charge for the year
125,000
------------
At 31 July 2024
1,754,667
------------
Carrying amount
At 31 July 2024
458,333
------------
At 31 July 2023
583,333
------------
16. Tangible assets
Land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2023
5,883,532
434,053
175,797
6,493,382
Additions
7,038
7,038
Disposals
( 370,394)
( 31,100)
( 401,494)
------------
---------
---------
------------
At 31 July 2024
5,883,532
63,659
151,735
6,098,926
------------
---------
---------
------------
Depreciation
At 1 August 2023
405,774
48,012
453,786
Charge for the year
7,070
18,629
25,699
Disposals
( 370,394)
( 21,643)
( 392,037)
------------
---------
---------
------------
At 31 July 2024
42,450
44,998
87,448
------------
---------
---------
------------
Carrying amount
At 31 July 2024
5,883,532
21,209
106,737
6,011,478
------------
---------
---------
------------
At 31 July 2023
5,883,532
28,279
127,785
6,039,596
------------
---------
---------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£
At 31 July 2024
53,784
--------
At 31 July 2023
63,276
--------
17. Investments
Shares in group undertakings
£
Cost
At 1 August 2023 and 31 July 2024
1,000
-------
Impairment
At 1 August 2023 and 31 July 2024
-------
Carrying amount
At 31 July 2024
1,000
-------
At 31 July 2023
1,000
-------
Subsidiaries, associates and other investments
Class of share
Percentage of shares held
Subsidiary undertakings
Fairmount of Mottingham Limited
Ordinary
100
18. Stocks
2024
2023
£
£
Raw materials and consumables
3,595
5,162
-------
-------
19. Debtors
2024
2023
£
£
Trade debtors
686,106
508,357
Prepayments and accrued income
18,347
50,496
Other debtors
2,217,197
2,234,344
------------
------------
2,921,650
2,793,197
------------
------------
20. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
102,668
557,991
Trade creditors
205,277
240,500
Accruals and deferred income
28,391
52,173
Corporation tax
153,834
167,057
Social security and other taxes
51,085
95,173
Obligations under finance leases and hire purchase contracts
10,295
10,295
Director loan accounts
40,100
40,038
Other creditors
290,173
285,833
---------
------------
881,823
1,449,060
---------
------------
21. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
2,423,328
2,452,865
Obligations under finance leases and hire purchase contracts
858
11,153
------------
------------
2,424,186
2,464,018
------------
------------
The bank loans and overdraft of £2,525,996 (2023 - £3,010,856) are secured by a debenture giving a charge over all assets of the company. The bank also holds a first legal charge on the following properties, 16 Blyth Road, Bromley, BR1 3RX, 3 Park Road, Southborough, TN4 0NU, 178 Southborough Road, Bromley, BR2 8AL and Fairmount Residential Care Home, Mottingham Lane, Mottingham, SE9 4RT.
22. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
10,295
10,295
Later than 1 year and not later than 5 years
858
11,153
--------
--------
11,153
21,448
--------
--------
23. Provisions
Deferred tax (note 24)
£
At 1 August 2023
208,089
Additions
7,415
---------
At 31 July 2024
215,504
---------
24. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 23)
215,504
208,089
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
215,504
208,089
---------
---------
25. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £Nil (2023: £ 25,912 ).
26. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
27. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses .
28. Analysis of changes in net debt
At 1 Aug 2023
Cash flows
At 31 Jul 2024
£
£
£
Cash at bank and in hand
1,668,673
(301,507)
1,367,166
Debt due within one year
(608,324)
455,261
(153,063)
Debt due after one year
(2,464,018)
39,832
(2,424,186)
------------
---------
------------
( 1,403,669)
193,586
( 1,210,083)
------------
---------
------------
CHISLEHURST CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 JULY 2024
29. Related party transactions
During the year, the company made advances to B R Mills, Harry Mills, J Mills and Molly Mills of £10,000 each respectively. These are related to the key management personnel, director and shareholder, that being Martin Mills. The full loans, totalling £40,000, were outstanding at 31st July 2024. These are included witin other debtors. These loans were made interest free and are repayable on demand. The company is related to Mills Family Limited and Burstow Limited by the virtue that all companies are under the common directorship of Mr M Mills. Mills Family Limited: At the year end, the company owed £83,105 to Mills Family Limited. This balance is included in Other Creditors. During the year, expenses were incurred by the company on Mills Family Limited's behalf totalling £16,243, and Mills Family Limited incurred expenses on the company's behalf totalling £44,281. Burstow Limited: At the year end, the company was owed £2,160,996 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 £3,238. The company received loan repayments totalling £14,000 from Burstow Limited.