Company Registration No. 03872464 (England and Wales)
Transitional Care Limited
Annual report and financial statements
for the year ended 31 August 2024
Transitional Care Limited
Company information
Director
Thomas Keaney
Secretary
Susan Keaney
Company number
03872464
Registered office
3rd Floor Beacon House
26-28 Worple Road
London
SW19 4EE
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Transitional Care Limited
Contents
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
Transitional Care Limited
Strategic report
For the year ended 31 August 2024
1
The director presents the strategic report for the year ended 31 August 2024.
Review of the business and future developments
There has been significant pressure on Local Authority high-needs budgets. It will be important for TCES to continue to differentiate our offer and related value-for-money and ensure that we meet LAs needs. We are investing heavily in new and developing services including Great Minds training and therapy online services to ensure that we have dynamic state-of-the-art solutions to meet the needs of ever more complex children and young people on a national basis. This investment in new and developing services has resulted in a difficult year financially with the company making a small profit. This academic year 2024/25 we have enjoyed a significantly better year financially with record profits.
Our Create in the Community service is unique in its offering, working in the community with some of the most complex and vulnerable children to educate them as well providing them with therapy and teaching them the life skills they need. This all helps stabilise them so they can step down into our Schools where they receive class-based education. This Step-down provision provides an additional stream of pupils for our schools complementing those pupils that are referred direct to our schools.
To this end we have acquired a new site in Sept 23 in West Ealing that will be our Create in the Community Therapy and Life skills hub for West London with the plan to replicate our success in East London where children step down into our East London School. We are developing this building in two-phases with phase one being a new roof, which is now completed. Work will begin on the full refurbishment in the beginning of academic year 2025/2026. This will enable us to build substantial growth in our Create service over the next three years.
Following consultation with a number of LAs our Nurture Primary School is responding to significant LA needs in terms of services for Autistic children with Speech, Language and Communications Needs and complex profiles. We have the capacity in the building to substantially grow this service alongside a separate cohort of children with social, emotional and mental health needs.
Since the DfE’s accreditation of our National Online School in December 2023 growth has been exponential with multiple additional markets yet to be explored.
New services coming on stream include a Great Minds national online training and therapy service where we will seek large national contracts through LA SEND departments but also through the NHS. We will specialize in inclusion training across the country with a new ‘Reach Out’ Inclusion programme that follows on the back of an ‘Outstanding’ school inspection in which our 25-year non-exclusion legacy was seen as sector-leading by the regulators Ofsted.
Transitional Care Limited
Strategic report (continued)
For the year ended 31 August 2024
2
Principal risks and uncertainties
The company uses various instruments such as trade debtors, trade creditors and cash that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations, in addition to the loans that the company has with its bankers.
The principal risks arising from the company's financial instruments are liquidity risk and credit risk. In addition, the company also has a reputational risk given the nature of its services. The directors review and agree policies for managing each of these risks and they are summarised below.
Liquidity risk
The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest safely and profitably.
Credit risk
The company's principal financial assets are cash and trade debtors. The principal credit risk arises with trade debtors. Credit arrangements are kept under constant review in light of debtors ageing and collection performance. Invoices are sent out at the beginning of school terms to help mitigate this risk.
Reputational risk
TCES schools are inspected by OFSTED, and the company understands the importance of its schools meeting the appropriate standards and receiving excellent reports to maintain their Good reputation. The schools have their own internal inspections to ensure standards are maintained. These internal QA inspections are supplemented by rigorous Governor visits to schools and services to provide as independent a view as possible.
Thomas Keaney
Director
22 May 2025
Transitional Care Limited
Director's report
For the year ended 31 August 2024
3
The director presents his annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activities of the Company continued to be the provision of specialist education, clinical and therapeutic support services to exceptional neurodiverse children and young people with Social, Emotional and Mental Health (SEMH) needs and/or Autistic Spectrum Condition (ASC) and associated conditions in Local Authorities and County Councils. Additionally, we are developing our online training offer to staff, parents, schools and MATs as well as to LAs across the country.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £377,624. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Thomas Keaney
Auditor
The auditor, Saffery LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements 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 director is 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. He is 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Transitional Care Limited
Director's report (continued)
For the year ended 31 August 2024
4
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
Thomas Keaney
Director
22 May 2025
Transitional Care Limited
Independent auditor's report
To the members of Transitional Care Limited
5
Opinion
We have audited the financial statements of Transitional Care Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
Transitional Care Limited
Independent auditor's report (continued)
To the members of Transitional Care Limited
6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's 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 director's 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
Transitional Care Limited
Independent auditor's report (continued)
To the members of Transitional Care Limited
7
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the director, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with director and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation. Other specific laws and regulations that have been considered and tested as part of the audit include:
Inspections from Ofsted to ensure that the quality of education and children's social care is sufficient. The company has been rated either 'Good' or 'Outstanding' in previous ratings.
Health and Safety regulations that have been complied with through the company's health and safety policy and safeguarding policy. These comply with the Equality Act and the Children's Act.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
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.
Transitional Care Limited
Independent auditor's report (continued)
To the members of Transitional Care Limited
8
Peter Harker
Senior Statutory Auditor
For and on behalf of Saffery LLP
23 May 2025
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Transitional Care Limited
Statement of comprehensive income
For the year ended 31 August 2024
9
2024
2023
as restated
Notes
£
£
Turnover
3
14,512,723
14,818,987
Cost of sales
(9,045,601)
(8,954,759)
Gross profit
5,467,122
5,864,228
Administrative expenses
(5,512,366)
(5,089,372)
Other operating income
185,541
Operating profit
4
140,297
774,856
Interest receivable and similar income
8
120,935
61,242
Interest payable and similar expenses
9
(55,517)
(45,110)
Profit before taxation
205,715
790,988
Tax on profit
10
(84,266)
(217,357)
Profit for the financial year
121,449
573,631
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Transitional Care Limited
Balance sheet
As at 31 August 2024
10
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,935,903
1,996,154
Current assets
Debtors
13
5,546,848
5,336,418
Cash at bank and in hand
34,224
788,509
5,581,072
6,124,927
Creditors: amounts falling due within one year
14
(5,051,807)
(5,367,884)
Net current assets
529,265
757,043
Total assets less current liabilities
2,465,168
2,753,197
Creditors: amounts falling due after more than one year
15
(552,032)
(603,855)
Provisions for liabilities
Deferred tax liability
17
177,597
157,628
(177,597)
(157,628)
Net assets
1,735,539
1,991,714
Capital and reserves
Called up share capital
19
50,000
50,000
Profit and loss reserves
1,685,539
1,941,714
Total equity
1,735,539
1,991,714
The financial statements were approved and signed by the director and authorised for issue on 22 May 2025.
Thomas Keaney
Director
Company Registration No. 03872464
Transitional Care Limited
Statement of changes in equity
For the year ended 31 August 2024
11
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 August 2023:
Balance at 1 September 2022
50,000
1,907,383
1,957,383
Year ended 31 August 2023:
Profit and total comprehensive income
-
573,631
573,631
Dividends
11
-
(539,300)
(539,300)
Balance at 31 August 2023
50,000
1,941,714
1,991,714
Year ended 31 August 2024:
Profit and total comprehensive income
-
121,449
121,449
Dividends
11
-
(377,624)
(377,624)
Balance at 31 August 2024
50,000
1,685,539
1,735,539
Transitional Care Limited
Statement of cash flows
For the year ended 31 August 2024
12
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(316,986)
1,167,003
Interest paid
(55,517)
(45,110)
Income taxes paid
(185,001)
(229,999)
Net cash (outflow)/inflow from operating activities
(557,504)
891,894
Investing activities
Purchase of tangible fixed assets
(359,150)
(438,266)
Repayment of loans
45,674
194,756
Interest received
120,935
61,242
Net cash used in investing activities
(192,541)
(182,268)
Financing activities
Repayment of bank loans
(46,086)
(39,056)
Dividends paid
(377,624)
(539,300)
Net cash used in financing activities
(423,710)
(578,356)
Net (decrease)/increase in cash and cash equivalents
(1,173,755)
131,270
Cash and cash equivalents at beginning of year
788,454
657,184
Cash and cash equivalents at end of year
(385,301)
788,454
Relating to:
Cash at bank and in hand
34,224
788,509
Bank overdrafts included in creditors payable within one year
(419,525)
(55)
Transitional Care Limited
Notes to the financial statements
For the year ended 31 August 2024
13
1
Accounting policies
Company information
Transitional Care Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor Beacon House, 26-28 Worple Road, London, SW19 4EE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements. More information is given in the strategic report.
1.3
Turnover
Revenue from contracts for the provision of education, clinical and therapeutic support services to individual children is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion of the various contracts is aligned to the 3 school terms of 4 months each that span the year, being the Spring, Summer & Autumn term. The end of the Summer terms aligns with the the accounting period end of 31 August.
Invoices for the terms are usually produced and sent to the local authorities shortly prior to the relevant school term. As such deferred income is recognised for each term and released over the span of the term.
1.4
Tangible fixed assets
Tangible fixed assets 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:
Land and buildings Leasehold
Over the term of the lease
Fixtures, fittings & equipment
2 - 4 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
14
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.
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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, 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.
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
15
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.
Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
16
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 leases asset are consumed.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
17
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Pupils placement
14,491,650
14,769,941
Pupil Premium
21,073
49,046
14,512,723
14,818,987
2024
2023
£
£
Turnover analysed by geographical market
UK
14,512,723
14,818,987
2024
2023
£
£
Other revenue
Interest income
120,935
61,242
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
419,401
445,054
Operating lease charges
865,346
618,891
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
18
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
40,750
37,250
For other services
All other non-audit services
25,680
11,830
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Permanent staff
190
177
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
6,450,441
5,834,631
Social security costs
694,780
633,076
Pension costs
170,914
167,584
7,316,135
6,635,291
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
120,738
121,290
Company pension contributions to defined contribution schemes
3,980
3,597
124,718
124,887
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
19
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
6,964
2,333
Other interest income
113,971
58,909
Total income
120,935
61,242
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
55,517
45,110
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
87,219
200,419
Adjustments in respect of prior periods
(22,922)
(16,509)
Total current tax
64,297
183,910
Deferred tax
Origination and reversal of timing differences
19,969
33,447
Total tax charge
84,266
217,357
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
10
Taxation (continued)
20
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
205,715
790,988
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
51,429
170,221
Tax effect of expenses that are not deductible in determining taxable profit
10,756
19,515
Permanent capital allowances in excess of depreciation
38,748
31,813
Under/(over) provided in prior years
(22,922)
(16,509)
Deferred tax adjustments in respect of prior years
6,255
8,901
Deferred tax adjustments for changes in tax rate
3,416
Taxation charge for the year
84,266
217,357
11
Dividends
2024
2023
£
£
Final paid
377,624
539,300
12
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 September 2023
4,394,327
1,403,757
5,798,084
Additions
195,973
163,177
359,150
At 31 August 2024
4,590,300
1,566,934
6,157,234
Depreciation and impairment
At 1 September 2023
2,710,603
1,091,327
3,801,930
Depreciation charged in the year
263,942
155,459
419,401
At 31 August 2024
2,974,545
1,246,786
4,221,331
Carrying amount
At 31 August 2024
1,615,755
320,148
1,935,903
At 31 August 2023
1,683,724
312,430
1,996,154
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
21
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,092,636
2,949,399
Corporation tax recoverable
209,561
208,471
Other debtors
2,036,507
1,772,035
Prepayments and accrued income
208,144
406,513
5,546,848
5,336,418
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
475,191
49,984
Trade creditors
1,288,697
1,333,623
Amounts owed to group undertakings
44,723
Corporation tax
64,297
183,911
Other taxation and social security
352,559
532,908
Other creditors
10,483
Accruals and deferred income
2,815,857
3,267,458
5,051,807
5,367,884
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
552,032
603,855
16
Loans and overdrafts
2024
2023
£
£
Bank loans
607,698
653,784
Bank overdrafts
419,525
55
1,027,223
653,839
Payable within one year
475,191
49,984
Payable after one year
552,032
603,855
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
16
Loans and overdrafts (continued)
22
The bank loans totalling £607,698 (2023: £653,784) are secured by way of a floating charge over all property, assets and rights of the company present and future not subject to a fixed charge.
Thomas Keaney, the director and shareholder, has provided personal guarantees amounting to £650,000 in respect of the bank loans.
Keaney Properties Limited, a connected company in which Thomas Keaney has significant influence, has provided a cross guarantee and debenture supported by way of a floating charge over all property, assets and rights of the company present and future not subject to a fixed charge in respect of the bank loans.
The company’s bank overdraft facility is secured by a debenture, which includes fixed charges over all the assets of the company.
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
186,894
175,839
Disallowable provisions
(9,297)
(18,211)
177,597
157,628
2024
Movements in the year:
£
Liability at 1 September 2023
157,628
Charge to profit or loss
19,969
Liability at 31 August 2024
177,597
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
170,914
167,584
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
23
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
20
Financial commitments, guarantees and contingent liabilities
Barclays Bank PLC hold a cross guarantee and debenture over the company's assets as security for loans provided to Keaney Properties Limited, a connected company in which the director and shareholder Thomas Keaney has significant influence. At the reporting date £3,195,142 (2023: £1,662,240) was owed by Keaney Properties Limited in respect of these loans.
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
752,953
509,200
Between two and five years
1,319,367
1,288,528
In over five years
2,498,356
492,219
4,570,676
2,289,947
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
214,376
219,748
Other information
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
22
Related party transactions (continued)
24
During the reporting period, rent totalling £414,120 (2023: £263,000) was payable to Keaney Properties Limited, a connected company in which Thomas Keaney has significant influence. At the reporting date the company was owed £1,389,729 (2023: £836,417) by Keaney Properties Limited. The loan is repayable on demand. Furthermore, interest was charged on this loan at a variable rate, being the Barclays floating rate. Interest totalled £99,175 (2023: £39,152) in respect of amounts owed by Keaney Properties Limited.
During the reporting period, the company recharged expenses totalling £1,022,809 (2023: £592,580) to, and rendered services totalling £nil (2023: £40,055) from Teaching Talent Limited, a connected company in which Thomas Keaney has significant influence. During the reporting period, a management charge of £185,541 was recorded from the company to Teaching Talent Limited, in relation to centralised service expenses. The management charge has been calculated on an arms length basis. At the reporting date the company owed £44,723 to Teaching Talent Limited (2023: Teaching Talent owed Transitional Care £214,400) . The loan is repayable on demand. No interest was charged on the loan.
23
Directors' transactions
Dividends totalling £377,624 (2023: £539,300) were paid in the year in respect of shares held by the company's directors.
The loan is unsecured and is repayable on demand. It accrues interest at the HMRC official rate of interest of 2.25%.
Advances and credits granted to the directors during the year are outlined in the table below.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Thomas Keaney - Director's Loan Account
2.25
605,675
72,737
14,796
(133,207)
560,001
605,675
72,737
14,796
(133,207)
560,001
24
Ultimate controlling party
The ultimate controlling party is Thomas Keaney, a director of the company, by virtue of his majority shareholding.
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
25
25
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
121,449
573,631
Adjustments for:
Taxation charged
84,266
217,357
Finance costs
55,517
45,110
Investment income
(120,935)
(61,242)
Depreciation and impairment of tangible fixed assets
419,401
445,054
Movements in working capital:
Increase in debtors
(255,014)
(1,073,848)
(Decrease)/increase in creditors
(621,670)
1,020,941
Cash (absorbed by)/generated from operations
(316,986)
1,167,003
26
Analysis of changes in net funds/(debt)
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
788,509
(754,285)
34,224
Bank overdrafts
(55)
(419,470)
(419,525)
788,454
(1,173,755)
(385,301)
Borrowings excluding overdrafts
(653,784)
46,086
(607,698)
134,670
(1,127,669)
(992,999)
27
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2023
£
Total adjustments
-
Profit as previously reported
573,631
Profit as adjusted
573,631
Transitional Care Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
27
Prior period adjustment (continued)
26
Notes to reconciliation
The comparative figures have been restated to reallocate certain salary costs from administrative expenses to cost of sales. This change has been made to correctly classify salary expense directly attributable to generating revenue. The reclassification has no impact on operating profit, net assets, or prior year results overall.
2024-08-312023-09-01falseCCH SoftwareCCH Accounts Production 2024.210Thomas KeaneySusan Keaneyfalsefalse038724642023-09-012024-08-3103872464bus:Director12023-09-012024-08-3103872464bus:CompanySecretary12023-09-012024-08-3103872464bus:RegisteredOffice2023-09-012024-08-31038724642024-08-31038724642022-09-012023-08-3103872464core:RetainedEarningsAccumulatedLosses2022-09-012023-08-3103872464core:RetainedEarningsAccumulatedLosses2023-09-012024-08-31038724642023-08-3103872464core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-08-3103872464core:FurnitureFittings2024-08-3103872464core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-3103872464core:FurnitureFittings2023-08-3103872464core:CurrentFinancialInstrumentscore:WithinOneYear2024-08-3103872464core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3103872464core:Non-currentFinancialInstrumentscore:AfterOneYear2024-08-3103872464core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3103872464core:CurrentFinancialInstruments2024-08-3103872464core:CurrentFinancialInstruments2023-08-3103872464core:ShareCapital2024-08-3103872464core:ShareCapital2023-08-3103872464core:RetainedEarningsAccumulatedLosses2024-08-3103872464core:RetainedEarningsAccumulatedLosses2023-08-3103872464core:ShareCapital2022-08-3103872464core:RetainedEarningsAccumulatedLosses2022-08-310387246412023-09-012024-08-310387246412022-09-012023-08-31038724642023-08-31038724642022-08-3103872464core:WithinOneYear2024-08-3103872464core:WithinOneYear2023-08-3103872464core:LandBuildingscore:LongLeaseholdAssets2023-09-012024-08-3103872464core:FurnitureFittings2023-09-012024-08-3103872464core:UKTax2023-09-012024-08-3103872464core:UKTax2022-09-012023-08-310387246422023-09-012024-08-310387246422022-09-012023-08-3103872464core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-3103872464core:FurnitureFittings2023-08-3103872464core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-012024-08-3103872464core:Non-currentFinancialInstruments2024-08-3103872464core:Non-currentFinancialInstruments2023-08-3103872464core:BetweenTwoFiveYears2024-08-3103872464core:BetweenTwoFiveYears2023-08-3103872464core:MoreThanFiveYears2024-08-3103872464core:MoreThanFiveYears2023-08-3103872464bus:PrivateLimitedCompanyLtd2023-09-012024-08-3103872464bus:FRS1022023-09-012024-08-3103872464bus:Audited2023-09-012024-08-3103872464bus:FullAccounts2023-09-012024-08-31xbrli:purexbrli:sharesiso4217:GBP