Limited Liability Partnership registration number OC333050 (England and Wales)
RMH (MANOR HOUSE) CARE LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
RMH (MANOR HOUSE) CARE LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Nicolas James Trustee (No.2) Limited
Manor Life Investments Limited
LLP registration number
OC333050
Registered office
Harbour House
1 Town Quay
Southampton
SO14 2AQ
Auditor
Arnold Hill & Co LLP
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
RMH (MANOR HOUSE) CARE LLP
CONTENTS
Page
Members' report
1
Members' responsibilities statement
2
Independent auditor's report
3 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Reconciliation of members' interests
9 - 10
Statement of cash flows
11
Notes to the financial statements
12 - 21
RMH (MANOR HOUSE) CARE LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The members present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the limited liability partnership continued to be that of ownership and operation of a care home.

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

Designated members

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

Nicolas James Trustee (No.2) Limited
Manor Life Investments Limited
Auditor

Arnold Hill & Co LLP were appointed as auditor to the limited liability partnership and in accordance with section 485 of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), a resolution proposing that they be re-appointed will be put at a general meeting.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

Approved by the members on 22 May 2025 and signed on behalf by:
22 May 2025
Mr D Robbins for and on behalf of
Nicolas James Trustee (No.2) Limited
Designated Member
RMH (MANOR HOUSE) CARE LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RMH (MANOR HOUSE) CARE LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RMH (MANOR HOUSE) CARE LLP
- 3 -
Opinion

We have audited the financial statements of RMH (Manor House) Care LLP (the 'limited liability partnership') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the reconciliation of members' interests, 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:

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

 

We have nothing to report in this regard.

RMH (MANOR HOUSE) CARE LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RMH (MANOR HOUSE) CARE LLP
- 4 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members 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 members 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership 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.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

RMH (MANOR HOUSE) CARE LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RMH (MANOR HOUSE) CARE LLP
- 5 -

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

 

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.

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership'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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Bobby Gurdep Bhogal ACA ACCA ATT
Senior Statutory Auditor
For and on behalf of Arnold Hill & Co LLP
27 May 2025
Chartered Accountants
Statutory Auditor
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
RMH (MANOR HOUSE) CARE LLP
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2024
2023
Notes
£
£
Turnover
3
3,521,545
3,230,483
Cost of sales
(2,173,748)
(2,156,425)
Gross profit
1,347,797
1,074,058
Administrative expenses
(502,810)
1,698,455
Operating profit
4
844,987
2,772,513
Interest payable and similar expenses
7
(85,652)
(60,906)
Profit for the financial year before members' remuneration and profit shares available for discretionary division among members
759,335
2,711,607

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 12 to 21 form part of these financial statements.

RMH (MANOR HOUSE) CARE LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
£
£
Profit for the financial year available for discretionary division among members
759,335
2,711,607
Other comprehensive income
Revaluation of land and buildings
-
711,266
Total comprehensive income for the year
759,335
3,422,873

The notes on pages 12 to 21 form part of these financial statements.

RMH (MANOR HOUSE) CARE LLP
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
6,961,213
6,920,000
Current assets
Stocks
10
2,000
4,000
Debtors
11
2,135,032
1,951,303
Cash at bank and in hand
468,475
840,653
2,605,507
2,795,956
Creditors: amounts falling due within one year
13
(2,432,569)
(2,439,389)
Net current assets
172,938
356,567
Total assets less current liabilities
7,134,151
7,276,567
Creditors: amounts falling due after more than one year
14
(977,146)
(978,895)
Net assets attributable to members
6,157,005
6,297,672
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
1
1
Members' other interests
Members' capital classified as equity
5,094,608
5,994,609
Revaluation reserve
711,266
711,266
Other reserves classified as equity
351,130
(408,204)
6,157,005
6,297,672

The notes on pages 12 to 21 form part of these financial statements.

The financial statements were approved by the members and authorised for issue on 22 May 2025 and are signed on their behalf by:
22 May 2025
Mr D Robbins for and on behalf of
Nicolas James Trustee (No.2) Limited
Designated member
Limited Liability Partnership registration number OC333050 (England and Wales)
RMH (MANOR HOUSE) CARE LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Revaluation
reserve
Other reserves
Total
Members' capital
Total
Total
2024
£
£
£
£
£
£
Members' interests at 1 April 2023
5,994,608
711,266
(408,205)
6,297,669
1
1
6,297,670
Profit for the financial year available for discretionary division among members
-
-
759,335
759,335
-
-
759,335
Members' interests after profit for the year
5,994,608
711,266
351,130
7,057,004
1
1
7,057,005
Repayments of capital
(900,000)
-
-
(900,000)
-
-
(900,000)
Members' interests at 31 March 2024
5,094,608
711,266
351,130
6,157,004
1
1
6,157,005
RMH (MANOR HOUSE) CARE LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Revaluation
reserve
Other reserves
Total
Members' capital
Total
Total
2023
£
£
£
£
£
£
Members' interests at 1 April 2022
5,856,309
-
(3,119,811)
2,736,498
1
1
2,736,499
Profit for the financial year available for discretionary division among members
-
-
2,711,607
2,711,607
-
-
2,711,607
Members' interests after profit for the year
5,856,309
-
(408,204)
5,448,105
1
1
5,448,106
Surplus arising on revaluation of fixed assets
-
711,266
-
711,266
-
-
711,266
Introduced by members
138,300
-
-
138,300
-
-
138,300
Members' interests at 31 March 2023
5,994,609
711,266
(408,204)
6,297,671
1
1
6,297,672

The notes on pages 12 to 21 form part of these financial statements.

RMH (MANOR HOUSE) CARE LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
682,212
450,984
Interest paid
(85,652)
(60,906)
Net cash inflow from operating activities
596,560
390,078
Investing activities
Purchase of tangible fixed assets
(73,205)
(35,608)
Net cash used in investing activities
(73,205)
(35,608)
Financing activities
Capital introduced by members (classified as debt or equity)
-
138,300
Repayment of capital or debt to members
(900,000)
-
Repayment of bank loans
4,469
(40,646)
Net cash (used in)/generated from financing activities
(895,531)
97,654
Net (decrease)/increase in cash and cash equivalents
(372,176)
452,124
Cash and cash equivalents at beginning of year
840,653
388,529
Cash and cash equivalents at end of year
468,475
840,653

The notes on pages 12 to 21 form part of these financial statements.

RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Limited liability partnership information

RMH (Manor House) Care LLP is a limited liability partnership incorporated in England and Wales. The registered office is Harbour House, 1 Town Quay, Southampton, SO14 2AQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together 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 limited liability partnership. 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

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover shown in the income statement represents care home fees, restaurant and ground rent income.

Income is recognised in the period in which the goods and services are provided.

1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.5
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:

Freehold land and buildings
Not depreciated
Fixtures and fittings
Straight line over 5-15 years

It is the company's practice to maintain land and buildings in a continual state of sound repair and to extend and make improvements thereto from time to time and accordingly the members consider that the lives of these assets are so long and residual values are so high that their depreciation is insignificant.

 

In accordance with accounting standards the members have also considered the recoverable amounts of land and buildings and consider that this is at least equal to the carrying value in the accounts.

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership 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 limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

1.8
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.

RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.9
Financial instruments

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

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership 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 limited liability partnership after deducting all of its liabilities.

RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

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 limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits and post retirement payments to members

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

RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are described below.

 

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

 

The members assess the closing tangible fixed asset balances for impairment. For the current year, the members have assessed the balances and consider no impairment to be required against these. Depreciation is not charged on the land and buildings on the basis the directors consider the value held is below market value and continual repairs maintain the use of the asset to generate income.

 

Accruals for goods or services not yet invoiced are estimated based on historic activity with the supplier or quotations received ahead of invoicing. Prepayments are based on actual invoices received and costs allocated across the relevant accounting period on a straight line basis of the time period in which the service relates to.

 

The members assess the closing debtor balances for recoverability and those not considered probable of recovery are provided for in full. For the current year, the members have assessed the balances outstanding and consider no provision to be required against these.

 

Stock is held at the lower of cost and net realisable value which is based on the estimated sales value of the asset at the year end in relation all market data available to the members.

3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Fees for the provision of care
3,497,335
3,200,503
Restaurant income
24,210
29,980
3,521,545
3,230,483
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
9,280
8,590
Depreciation of owned tangible fixed assets
31,992
31,992
RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
5
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2024
2023
Number
Number
65
65

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,783,245
1,722,771
Social security costs
166,611
179,307
Pension costs
37,747
25,378
1,987,603
1,927,456
6
Information in relation to members
2024
2023
Number
Number
Average number of members during the year
2
2
2024
2023
£
£
Profit attributable to the member with the highest entitlement
557,662
557,662
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
85,652
60,906
8
Impairments

Reversals of previous impairment losses have been recognised in profit or loss as follows:

2024
2023
Notes
£
£
In respect of:
Recognised in:
Administrative expenses
-
2,135,486
RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
9
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 April 2023
6,742,041
559,901
7,301,942
Additions
-
73,205
73,205
At 31 March 2024
6,742,041
633,106
7,375,147
Depreciation and impairment
At 1 April 2023
-
381,942
381,942
Depreciation charged in the year
-
31,992
31,992
At 31 March 2024
-
413,934
413,934
Carrying amount
At 31 March 2024
6,742,041
219,172
6,961,213
At 31 March 2023
6,742,041
177,959
6,920,000

The LLP's freehold property, including fixtures and fittings, were valued to £6,920,000 on 12 March 2023. The valuation was performed by Knight Frank, an independent chartered surveyor, on the basis of the profits method, in accordance with The Royal Institute of Chartered Surveyors Valuation Professional Standards known as the "Red Book". The historic cost at 31 March 2023 of the freehold property, including fixtures and fittings, was £6,240,849 which was impaired in 2017 by £2,135,486, representing the cost in excess of fair value, which has been reversed due to the recognition of prior year revaluation.

10
Stocks
2024
2023
£
£
Raw materials and consumables
2,000
4,000
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
173,003
125,364
Other debtors
1,868,258
1,746,551
Prepayments and accrued income
93,771
79,388
2,135,032
1,951,303
RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
12
Loans and overdrafts
2024
2023
£
£
Bank loans
1,084,830
1,080,361
Payable within one year
107,684
101,466
Payable after one year
977,146
978,895

The long-term loans are secured by fixed and floating charges over the assets of the LLP.

 

13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
12
107,684
101,466
Trade creditors
51,325
98,935
Other taxation and social security
83,354
30,266
Other creditors
2,027,617
2,026,789
Accruals and deferred income
162,589
181,933
2,432,569
2,439,389
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
12
977,146
978,895
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,747
25,378

The limited liability partnership operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.

 

Included in Other creditors (see Note 13) is pension payable at year end £15,994 (2023: £15,223).

RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
16
Loans and other debts due to members
2024
2023
£
£
Analysis of loans
Amounts falling due within one year
1
1

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

17
Operating lease commitments

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

2024
2023
£
£
Within one year
17,617
8,698
Between two and five years
44,755
-
62,372
8,698
18
Related party transactions

During the year there were net transactions of £121,707 (2023 - £281,149) with companies under the common control of Mr N J Roach. At the year end, £1,862,696 (2023 - £1,740,989) was due from these companies. These transactions represent group financing.

 

There are no formal agreements in place regarding the settlement of these balances and they are treated as repayable on demand. The balances are not secured.

19
Cash generated from operations
2024
2023
£
£
Profit for the year
759,335
2,711,607
Adjustments for:
Finance costs recognised in profit or loss
85,652
60,906
Depreciation and impairment of tangible fixed assets
31,992
(2,103,494)
Movements in working capital:
Decrease in stocks
2,000
-
Increase in debtors
(183,729)
(243,048)
(Decrease)/increase in creditors
(13,038)
25,013
Cash generated from operations
682,212
450,984
RMH (MANOR HOUSE) CARE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
20
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
840,653
(372,178)
468,475
Borrowings excluding overdrafts
(1,080,361)
(4,469)
(1,084,830)
Balances before members' debt
(239,708)
(376,647)
(616,355)
Loans and other debts due to members:
- Members' capital
(1)
-
(1)
Balances including members' debt
(239,709)
(376,647)
(616,356)
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