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Registered number: 05216447










DANAZ HEALTHCARE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

 
DANAZ HEALTHCARE LIMITED
 
 
COMPANY INFORMATION


Directors
N N Zaki 
M Zaki 
D Zaki 




Registered number
05216447



Registered office
Wey Court West
Union Road

Farnham

Surrey

GU9 7PT




Independent auditors
Shaw Gibbs (Audit) Limited
Statutory Auditors

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT





 
DANAZ HEALTHCARE LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of income and retained earnings
 
9
Statement of financial position
 
10 - 11
Statement of cash flows
 
12 - 13
Analysis of net debt
 
14
Notes to the financial statements
 
15 - 28


 
DANAZ HEALTHCARE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
The principle activity of Danaz Healthcare Limited during the year was that of providing facilities and services relating to nursing and residential care at Pax Hill Care Homes in Bentley, Farnham, Surrey. 

Business review
 
As at the 31st August our dementia residential care unit (EMF) had 30 residents while Pax Hill Care Home had 66 residents. In the year to 31st August 2024 there were 72 arrivals and 78 leavers. 
Private enquiries and admission levels remain strong but we note the greater needs of new residents that require additional staffing levels to maintain the high level of care we offer here at Pax Hill. Social Service enquiries have become increasingly unviable as funding available is not meeting care needs assessments. As a result, social service admissions have dropped. 
Costs have risen significantly in some areas, the most significant increase being to wages following the 9.79% minimum wage increase imposed in April 2024. Other notable increases include food, utilities, insurance and maintenance. Fees have increased to cover the additional costs.
 
Room refurbishment has commenced in our Pax Hill care home with 6 rooms being completed this financial year. 
Staff retention remains strong enabling us to continue providing excellent service to our residents. At the end of this financial year 47% of our team have been with us for 5 or more years. This dedicated core of care professionals also mentor and support newer team members to ensure standards are consistently maintained. 
We continue to invest in our employees with competitive benefits, such as paid breaks. Our most significant investment is in staff development and training where we offer a mix of online and in-house training sessions as well as third party and / or nationally recognised courses. 
In the year ending 31 August 2024  turnover increased from £7,638,983 to £7,962,786 while profit increased from £302,711 to £691,480. 

Principal risks and uncertainties
 
Competition, particularly from large companies, is always a challenge but we will continue to use our unique offering and competitive rates to combat this. 
Economic and legislative changes have imposed forced cost and price increases in the past and will impact the company again this year with significant National Insurance and National Minimum Wage increases due in April 2025. 
Compliance, in particular with the Care Quality Commission regulations, is an ongoing process that we invest a significant amount of resource on. Our investment in staff awareness and training in this area has strengthened our commitment to resident care.
Loan liabilities have reduced from £5,321,514 to £4,704,278, since the year end the repayments have continued and no issues have arisen which would prevent the company from continuing to do so. 

Future developments
 
Despite the challenges facing care home providers at this time, the directors remain optimistic and excited about the future. The care home will continue to operate as previously while the directors adapt strategies to meet changing care needs. 

Page 1

 
DANAZ HEALTHCARE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Planned investment for next financial year
 
Room refurbishment will continue to be rolled out this year.
New garden space for residents will be completed.
New services will be developed and tested.



This report was approved by the board and signed on its behalf.







D Zaki
Director

Date: 27 May 2025

Page 2

 
DANAZ HEALTHCARE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The directors present their report and the financial statements for the year ended 31 August 2024.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The company's principal activity during the year was to provide human health care.

Results and dividends

The profit for the year, after taxation, amounted to £691,480 (2023 - £302,711).

During the year £171,859 (2023: £262,273) of dividends were declared and paid.

Directors

The directors who served during the year were:

N N Zaki 
M Zaki 
D Zaki 

Page 3

 
DANAZ HEALTHCARE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsShaw Gibbs (Audit) Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 







D Zaki
Director

Date: 27 May 2025

Page 4

 
DANAZ HEALTHCARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DANAZ HEALTHCARE LIMITED
 

Opinion


We have audited the financial statements of Danaz Healthcare Limited (the 'Company') for the year ended 31 August 2024, which comprise the statement of income and retained earnings, the statement of financial position, the statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 5

 
DANAZ HEALTHCARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DANAZ HEALTHCARE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
DANAZ HEALTHCARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DANAZ HEALTHCARE LIMITED (CONTINUED)


Auditors' 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 auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and review of Care Quality Commission reports. We also reviewed the terms of the loans to check if any breaches to requirements set by the bank. 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.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. This included subjective areas of the accounts, for example investment property valuations and recoverability of debts. 
We did not identify any key audit matters relating to irregularities, including fraud. 


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


Page 7

 
DANAZ HEALTHCARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DANAZ HEALTHCARE LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 auditors' 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.







Stephen South FCA (Senior Statutory Auditor)
for and on behalf of
Shaw Gibbs (Audit) Limited
Statutory Auditors
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

27 May 2025
Page 8

 
DANAZ HEALTHCARE LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£

  

Turnover
 4 
7,962,786
7,638,983

Cost of sales
  
(461,770)
(418,949)

Gross profit
  
7,501,016
7,220,034

Administrative expenses
  
(6,200,869)
(5,745,962)

Exceptional administrative expense
 11 
(405,718)
(611,303)

Gain from changes in fair value of investment property
  
530,000
-

Operating profit
  
1,424,429
862,769

Interest receivable and similar income
  
57,720
46,415

Interest payable and similar expenses
 8 
(351,457)
(296,298)

Profit before tax
  
1,130,692
612,886

Tax on profit
 9 
(439,212)
(310,175)

Profit after tax
  
691,480
302,711

  

  

Retained earnings at the beginning of the year
  
6,183,240
6,142,802

Profit for the year
  
691,480
302,711

Dividends declared and paid
  
(171,859)
(262,273)

Transfer to revaluation reserve for investment property gain
  
(530,000)
-

Retained earnings at the end of the year
  
6,172,861
6,183,240

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of income and retained earnings.

The notes on pages 15 to 28 form part of these financial statements.

Page 9

 
DANAZ HEALTHCARE LIMITED
REGISTERED NUMBER: 05216447

STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
9,858,862
10,083,095

Investment property
 13 
1,900,000
1,370,000

  
11,758,862
11,453,095

Current assets
  

Debtors: amounts falling due within one year
 14 
2,633,883
2,593,441

Cash at bank and in hand
 15 
10,137
91,669

  
2,644,020
2,685,110

Creditors: amounts falling due within one year
 16 
(2,802,198)
(2,974,876)

Net current liabilities
  
 
 
(158,178)
 
 
(289,766)

Total assets less current liabilities
  
11,600,684
11,163,329

Creditors: amounts falling due after more than one year
 17 
(3,562,350)
(3,778,212)

Provisions for liabilities
  

Deferred tax
 18 
(635,603)
(502,007)

Net assets
  
7,402,731
6,883,110


Capital and reserves
  

Called up share capital 
 19 
100
100

Revaluation reserve
  
1,229,770
699,770

Profit and loss account
  
6,172,861
6,183,240

  
7,402,731
6,883,110


Page 10

 
DANAZ HEALTHCARE LIMITED
REGISTERED NUMBER: 05216447
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 AUGUST 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 






D Zaki
Director

Date: 27 May 2025

The notes on pages 15 to 28 form part of these financial statements.

Page 11

 
DANAZ HEALTHCARE LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
691,480
302,711

Adjustments for:

Depreciation of tangible assets
253,785
258,622

Loss on disposal of tangible assets
7,761
-

Interest paid
351,457
296,298

Interest received
(57,720)
(46,415)

Taxation charge
439,212
310,175

(Increase)/decrease in debtors
(59,585)
294,388

Decrease/(increase) in amounts owed by participating ints
26,938
(155,657)

Increase in creditors
51,386
161,449

Net fair value (gains)/losses recognised in P&L
(530,000)
-

Corporation tax (paid)
(136,781)
(251,133)

Net cash generated from operating activities

1,037,933
1,170,438


Cash flows from investing activities

Purchase of tangible fixed assets
(37,313)
(84,836)

Associates interest received
57,720
46,415

Net cash from investing activities

20,407
(38,421)
Page 12

 
DANAZ HEALTHCARE LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of loans
(617,236)
(619,878)

Dividends paid
(171,859)
(262,273)

Interest paid
(351,457)
(296,298)

Net cash used in financing activities
(1,140,552)
(1,178,449)

Net (decrease) in cash and cash equivalents
(82,212)
(46,432)

Cash and cash equivalents at beginning of year
78,078
124,510

Cash and cash equivalents at the end of year
(4,134)
78,078


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
10,137
91,669

Bank overdrafts
(14,271)
(13,591)

(4,134)
78,078


The notes on pages 15 to 28 form part of these financial statements.

Page 13

 
DANAZ HEALTHCARE LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2024




At 1 September 2023
Cash flows
At 31 August 2024
£

£

£

Cash at bank and in hand

91,669

(81,532)

10,137

Bank overdrafts

(13,592)

(679)

(14,271)

Debt due after 1 year

(3,778,212)

215,862

(3,562,350)

Debt due within 1 year

(1,543,302)

401,374

(1,141,928)


(5,243,437)
535,025
(4,708,412)

The notes on pages 15 to 28 form part of these financial statements.

Page 14

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

Danaz Healthcare Limited, (registered number 05216447), is a privately owned company, limited by shares and incorporated in England and Wales. The registered office is disclosed on the Company Information page and the principal activity is disclosed in the Directors Report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 15

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

Page 16

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
2%
reducing balance
Fixtures and fittings
-
5%
reducing balance
Office equipment
-
15%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 17

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 18

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based upon 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 if the revision affects only that period, or in the period of the revision and future periods if the revisions affects both current and future periods.
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.
Investement properties are carried at fair value which is estimated by external valuers and directors derived from their assessment of current market values of similar properties adjusted if necessary for any difference in the nature, location or condition of the specific asset.


4.


Turnover

The whole of the turnover is attributable to providing facilities and services relating to nursing and residential care.

All turnover arose within the United Kingdom.


5.


Auditors' remuneration

Fees payable to the Company's auditors and its associates in respect of:


2024
2023
£
£

Audit-related assurance services
12,000
11,118
Page 19

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
4,569,464
4,219,420

Social security costs
452,435
419,469

Cost of defined contribution scheme
106,187
93,939

5,128,086
4,732,828


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Catering and auxiliary services
10
10



Nursing care and assistants
115
112



Admin
15
15



Property Maintenance
6
6

146
143


7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
72,530
71,050

Company contributions to defined contribution pension schemes
1,321
1,320

73,851
72,370


During the year retirement benefits were accruing to 1 directors (2023 - NIL) in respect of defined contribution pension schemes.

Page 20

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

8.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
346,441
297,430

Other interest payable
5,016
(1,132)

351,457
296,298


9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
305,616
295,545


Total current tax
305,616
295,545

Deferred tax


Origination and reversal of timing differences
133,596
14,630

Total deferred tax
133,596
14,630


Tax on profit
439,212
310,175
Page 21

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19 to25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,130,692
612,886


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
282,673
116,448

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,463
116,148

Capital allowances for year in excess of depreciation
45,545
28,223

Non-taxable income
(132,450)
-

Changes in provisions leading to an increase (decrease) in the tax charge
107,385
178

Increase in tax relating to 25% tax sliding scale
-
34,548

Movement in deferred tax
133,596
14,630

Total tax charge for the year
439,212
310,175


Factors that may affect future tax charges

There are no factors that may affect future tax charge.


10.


Dividends

2024
2023
£
£


Dividends
171,859
262,273

Page 22

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

11.


Exceptional items

2024
2023
£
£


Bad debt provision
405,718
611,303

n the prior year it was identified that amounts owed from related parties Chilterns Healthcare Limited and Bentley Community Care Limited, were unlikely to be fully repaid and therefore a bad debt provision was raised. 
During the year it was identified that further amounts owed from Chilterns Healthcare Limited were unlikely to be fully repaid, therefore the bad debt provision increased. 
See further information in note 23. 


12.


Tangible fixed assets





Freehold property
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 September 2023
10,102,481
2,049,814
534,523
12,686,818


Additions
-
27,987
9,326
37,313


Disposals
-
(8,384)
(13,403)
(21,787)



At 31 August 2024

10,102,481
2,069,417
530,446
12,702,344



Depreciation


At 1 September 2023
1,365,671
806,683
431,369
2,603,723


Charge for the year on owned assets
174,736
62,874
16,175
253,785


Disposals
-
(3,403)
(10,623)
(14,026)



At 31 August 2024

1,540,407
866,154
436,921
2,843,482



Net book value



At 31 August 2024
8,562,074
1,203,263
93,525
9,858,862



At 31 August 2023
8,736,810
1,243,131
103,154
10,083,095

Page 23

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

13.


Investment property


Freehold investment property

£



Valuation


At 1 September 2023
1,370,000


Surplus on revaluation
530,000



At 31 August 2024
1,900,000

The 2024 valuations were made by Charters Estates Agents, on an open market value for existing use basis.






Page 24

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

14.


Debtors

2024
2023
£
£


Trade debtors
471,130
408,550

Amounts owed by joint ventures and associated undertakings
2,093,856
2,120,794

Other debtors
19,451
11,655

Prepayments and accrued income
49,446
52,442

2,633,883
2,593,441



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
10,137
91,669

Less: bank overdrafts
(14,271)
(13,592)

(4,134)
78,077



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
14,271
13,592

Bank loans
1,141,928
1,543,302

Trade creditors
215,685
225,494

Corporation tax
475,272
298,640

Other taxation and social security
109,563
106,832

Other creditors
43,153
27,460

Accruals and deferred income
802,326
759,556

2,802,198
2,974,876


Page 25

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

17.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
3,562,350
3,778,212


The following liabilities were secured:

2024
2023
£
£



Bank Loans
4,704,278
5,321,514

Details of security provided:

There are four bank loans outstanding at the year end with different terms in place. 
At the year end: 
£3,329,265 is repayable over the next 11 years and interest is being charged at base plus 1.25%. 
£645,000 is repayable on demand and interest is being charged at base plus 2.55%. 
£730,013 is repayable over the next 10 years and interest is being charged at base plus 2.45%. 
The loans are secured on the following properties:
The property known as Pax Hill Nursing and Residential Care Home, Bentley, GU10 5NG.
14 Bonners Field, Bentley, GU10 5LH.
1 Pax Hill, Bentley, GU10 5LH.
11 Bonners Field. Bentley, GU10 5LH.
The bank holds a debenture over all assets of the company and a cross corporate guarantee between Danaz Healthcare Ltd and a third party.

Page 26

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

18.


Deferred taxation




2024


£






At beginning of year
(502,007)


Charged to profit or loss
(133,596)



At end of year
(635,603)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(328,160)
(329,169)

Investment properties gains
(307,443)
(174,942)

Other short term timing differences
-
2,104

(635,603)
(502,007)


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



38 (2023 - 38) A Ordinary Shares shares of £1.00 each
38
38
38 (2023 - 38) B Ordinary Shares shares of £1.00 each
38
38
24 (2023 - 24) C Ordinary Shares shares of £1.00 each
24
24

100

100



20.


Contingent liabilities

At the year end the company had a balance of £3,113,865 (2023: £2,732,097) owed from Chilterns Healthcare Limited and Bentley Community Care Limited. Due to uncertainties around operations at these two companies it is uncertain if all of this balance will be recoverable and therefore a provision of £1,040,009 (2023: £611,303) has been included against these debts. The outcome of the course of operations at the two companies is expected to be determined during 2025, the provision is an estimate to reduce the balances to their expected recoverable amount. 

Page 27

 
DANAZ HEALTHCARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £106,187 (2023: £93,939). Contributions totalling £21,749 (2023: £19,831) were payable to the fund at the balance sheet date and are included in creditors.


22.


Commitments under operating leases

At 31 August 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
19,669
8,544

Later than 1 year and not later than 5 years
32,781
-

52,450
8,544


23.


Related party transactions

During the year the company was under the joint control of M Zaki and N Zaki.
During the year £120,000 (2023: £120,000) of rent was charged by the directors to the company. At the balance sheet date £Nil was owed by the directors (2023: £Nil).
During the year, services were provided to a Director at £11,811 charge (2023: £11,425). These services were not provided at arm's length. If these services were provided at arm's length they would have totalled £92,331 (2023: £80,110). 
During the year, costs were recharged to Bentley Community Care Limited, a company controlled by the directors, of £28,706 (2023: £69,100). At the year end, a balance of £382,509 (2023: £353,803) was owed to Danaz Healthcare Limited, however this has been fully provided for as a bad debt.
During the year, £401,352 was loaned to Chiltern Healthcare Limited, a company controlled by the directors (2023: £366,742). Interest was also charged to Chiltern Healthcare Limited of £57,720 (2023: £46,415). At the year end, a balance of £2,093,856 (2023: £2,120,794) was owed to Danaz Healthcare Limited, this includes a provision for bad debt of £657,500.  
Zaki Consulting Limited is a company controlled by one of the directors. At the year end, a balance of £12,800 (2023: £Nil) was owed by Danaz Healthcare Limited to Zaki Consulting. 
Key management personnel is considered to be the directors as noted on page 1 of the accounts. Remuneration is disclosed in note 8 of the accounts.

Page 28