IRIS Accounts Production v25.1.3.33 06718612 director 1.9.23 31.8.24 31.8.24 Medium entities true true false true true false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. C shares 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh067186122023-08-31067186122024-08-31067186122023-09-012024-08-31067186122022-08-31067186122022-09-012023-08-31067186122023-08-3106718612ns15:EnglandWales2023-09-012024-08-3106718612ns14:PoundSterling2023-09-012024-08-3106718612ns10:Director12023-09-012024-08-3106718612ns10:PrivateLimitedCompanyLtd2023-09-012024-08-3106718612ns10:MediumEntities2023-09-012024-08-3106718612ns10:Audited2023-09-012024-08-3106718612ns10:Medium-sizedCompaniesRegimeForDirectorsReport2023-09-012024-08-3106718612ns10:Medium-sizedCompaniesRegimeForAccounts2023-09-012024-08-3106718612ns10:FullAccounts2023-09-012024-08-3106718612ns10:OrdinaryShareClass52023-09-012024-08-3106718612ns10:RegisteredOffice2023-09-012024-08-3106718612ns5:CurrentFinancialInstruments2024-08-3106718612ns5:CurrentFinancialInstruments2023-08-3106718612ns5:Non-currentFinancialInstruments2024-08-3106718612ns5:Non-currentFinancialInstruments2023-08-3106718612ns5:ShareCapital2024-08-3106718612ns5:ShareCapital2023-08-3106718612ns5:RetainedEarningsAccumulatedLosses2024-08-3106718612ns5:RetainedEarningsAccumulatedLosses2023-08-3106718612ns5:ShareCapital2022-08-3106718612ns5:RetainedEarningsAccumulatedLosses2022-08-3106718612ns5:RetainedEarningsAccumulatedLosses2022-09-012023-08-3106718612ns5:RetainedEarningsAccumulatedLosses2023-09-012024-08-310671861212023-09-012024-08-3106718612ns5:LandBuildingsns5:OwnedOrFreeholdAssets2023-09-012024-08-3106718612ns10:OrdinaryShareClass52022-09-012023-08-3106718612ns5:LandBuildings2023-08-3106718612ns5:LandBuildings2024-08-3106718612ns5:LandBuildings2023-08-3106718612ns5:CostValuation2023-08-3106718612ns5:Subsidiary12023-09-012024-08-31067186121ns5:Subsidiary12023-09-012024-08-3106718612ns5:Subsidiary22023-09-012024-08-3106718612ns5:Subsidiary232023-09-012024-08-3106718612ns5:CurrentFinancialInstruments2023-09-012024-08-3106718612ns5:WithinOneYearns5:CurrentFinancialInstruments2024-08-3106718612ns5:WithinOneYearns5:CurrentFinancialInstruments2023-08-3106718612ns5:BetweenOneTwoYearsns5:Non-currentFinancialInstruments2024-08-3106718612ns5:BetweenOneTwoYearsns5:Non-currentFinancialInstruments2023-08-3106718612ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2024-08-3106718612ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-08-3106718612ns5:Secured2024-08-3106718612ns5:Secured2023-08-3106718612ns10:OrdinaryShareClass52024-08-3106718612ns5:RetainedEarningsAccumulatedLosses2023-08-31
REGISTERED NUMBER: 06718612 (England and Wales)









A & L CARE HOMES HOLDINGS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024






A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


A & L CARE HOMES HOLDINGS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2024







DIRECTOR: L Webb



REGISTERED OFFICE: 7 Sandy Court
Ashleigh Way
Langage Business Park
Plymouth
Devon
PL7 5JX



REGISTERED NUMBER: 06718612 (England and Wales)



AUDITORS: WP Audit Services LLP
Chartered Accountant & Statutory Auditor
Chancery House
30 St Johns Road
Woking
Surrey
GU21 7SA



BANKERS: National Westminster Bank Plc
14 Old Town Street
Plymouth
Devon
PL1 1DG

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The director presents her strategic report for the year ended 31 August 2024.

REVIEW OF BUSINESS
The company owns two properties which A & L Care Homes Limited and Mayflower House Limited operate their trade from.

There was rental income in the year totalling £200,000 (2023: £200,000), management charge income of £64,800 (2023: £64,800) and dividend income of £300,000 (2023: £345,000). All of this was received from the company's subsidiaries.

PRINCIPAL RISKS AND UNCERTAINTIES
A & L Care Homes Holdings Limited, like all businesses, faces a number of operating risks and uncertainties. The most fundamental issues faced are associated with the loans held and the trade run by its subsidiaries, as follows:

- meeting bank covenants;
- maximising occupancy levels;
- dealing with increasing inflation and interest rates;
- complying with the stringent regulations of the Care Quality Commission under which Care Homes operate;
- achieving quality standards; and
- attracting and retaining high quality qualified and other staff.

However, the director feels that the management team in place and current performance means they are able to face these risks and mitigate them accordingly.

STRATEGY
The director will continue to keep costs under control and develop existing income streams.

New opportunities will continue to be sought where these will make a return.

ON BEHALF OF THE BOARD:





L Webb - Director


28 May 2025

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 AUGUST 2024

The director presents her report with the financial statements of the company for the year ended 31 August 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a property holding business and holding the investment in its subsidiary undertakings.

DIVIDENDS
The total of dividends distributed in the year ended 31 August 2024 was £370,000 (2023: £400,000).

DIRECTOR
L Webb held office during the whole of the period from 1 September 2023 to the date of this report.

GOING CONCERN
The director has adopted the going concern basis of accounting and believes that the company is a going concern for the foreseeable future.

Although the company has recorded net current liabilities this year, this comprises mainly amounts owed to group and the loan due within the next 12 months.

These group balances would not be recalled at the detriment of the group as a whole, and the loan is settled by way of rent, management charges and dividends received from its subsidiaries. The subsidiaries continue to make a profit and both record net current assets.

The director therefore believes that the company continues to be a going concern and the accounts have therefore been drawn up on this basis.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director 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 she 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 her to ensure that the financial statements comply with the Companies Act 2006. She 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.


ON BEHALF OF THE BOARD:





L Webb - Director


28 May 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
A & L CARE HOMES HOLDINGS LIMITED

Opinion
We have audited the financial statements of A & L Care Homes Holdings Limited (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 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.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director 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 Report of the Director.

We have nothing to report in respect of the following matters where 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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
A & L CARE HOMES HOLDINGS LIMITED


Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
A & L CARE HOMES HOLDINGS LIMITED


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 a Report of the Auditors 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Objectives
The objectives of our audit in respect of 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 to those assessed risks; and
- to respond appropriately to instances of fraud or suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Audit Approach
Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the Company and considered that the most significant are the Health and Social Care Act, Companies Act 2006, FRS 102, and UK taxation legislation.
- We obtained an understanding of how the Company complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications.
- We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance. We used our knowledge of the Company and the industry in which it operates to determine if management's explanations were consistent with our own
conclusions.
- Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business. Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries and assessing estimates for management bias have enabled us to conclude in this
area.

No instances of fraud, non-compliance or suspected non-compliance with laws and regulations were identified from the above procedures.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
A & L CARE HOMES HOLDINGS LIMITED

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Context of the ability of the audit to detect fraud or breaches of law or regulation
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 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.

In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations.

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 Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Stephanie Williams (Senior Statutory Auditor)
for and on behalf of WP Audit Services LLP
Chartered Accountant & Statutory Auditor
Chancery House
30 St Johns Road
Woking
Surrey
GU21 7SA

28 May 2025

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

INCOME STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £    £   

TURNOVER - -

Administrative expenses (3,646 ) (2,845 )
(3,646 ) (2,845 )

Other operating income 264,800 264,800
OPERATING PROFIT 5 261,154 261,955

Income from shares in group undertakings 300,000 345,000
561,154 606,955

Interest payable and similar expenses 6 (185,163 ) (176,419 )
PROFIT BEFORE TAXATION 375,991 430,536

Tax on profit 7 (12,925 ) (12,494 )
PROFIT FOR THE FINANCIAL YEAR 363,066 418,042

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 363,066 418,042


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 363,066 418,042

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

BALANCE SHEET
31 AUGUST 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 9 4,453,707 4,453,707
Investments 10 2,500,000 2,500,000
6,953,707 6,953,707

CURRENT ASSETS
Cash at bank 23,866 36,982

CREDITORS
Amounts falling due within one year 11 2,163,031 1,999,001
NET CURRENT LIABILITIES (2,139,165 ) (1,962,019 )
TOTAL ASSETS LESS CURRENT LIABILITIES 4,814,542 4,991,688

CREDITORS
Amounts falling due after more than one year 12 2,304,326 2,474,538
NET ASSETS 2,510,216 2,517,150

CAPITAL AND RESERVES
Called up share capital 15 100 100
Retained earnings 16 2,510,116 2,517,050
SHAREHOLDERS' FUNDS 2,510,216 2,517,150

The financial statements were approved by the director and authorised for issue on 28 May 2025 and were signed by:





L Webb - Director


A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 September 2022 100 2,499,008 2,499,108

Changes in equity
Dividends - (400,000 ) (400,000 )
Total comprehensive income - 418,042 418,042
Balance at 31 August 2023 100 2,517,050 2,517,150

Changes in equity
Dividends - (370,000 ) (370,000 )
Total comprehensive income - 363,066 363,066
Balance at 31 August 2024 100 2,510,116 2,510,216

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1. STATUTORY INFORMATION

A & L Care Homes Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

The financial statements have been prepared under the historical cost convention.

Although the company has recorded net current liabilities, this largely comprises amounts owed to group, which were related to the acquisition of the properties, and bank loan payments due, which are covered by the income received from subsidiaries. The group balances would not be recalled at the detriment of the group as a whole.

The Director therefore believes that the company continues to be a going concern and the accounts have therefore been drawn up on this basis.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about A & L Care Homes Holdings Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, A & L Care Group Limited, 7 Sandy Court, Ashleigh Way, Langage Business Park, Plymouth, Devon, PL7 5JX.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other group entities.

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

3. ACCOUNTING POLICIES - continued

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, 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 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key estimates made are as follows:

i) Valuation of property

Property is reviewed annually for impairment. The cash and profit levels generated by each home are taken into consideration when carrying out this review, as is a multiple to obtain an appropriate estimate of future maintainable earnings. The property is not depreciated as the director has considered that the cumulative effects of growth in the sector, and the offsetting effect of discounting over a useful life of 50 years, would result in a residual value that is not significantly different to current value.

ii) Investment in subsidiaries

Investments in subsidiaries are reviewed annually for impairment by considering their expected future cashflow, returns and profitability. This review is undertaken in combination with the review of property, to ensure there is no double counting of value.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - not provided

In accordance with the industry norm, no depreciation is provided on the company's land and buildings interest because the directors believe that the residual values are considered to be high due in part because each property is subject to a repair and maintenance programme and they are unlikely to suffer from technological or economic obsolescence. Looking at relevant expected growth in property values and the associated expected discount factors that would apply over the life of the asset, the director considers that the depreciation charge for the year and on a cumulative basis is immaterial. This departure from the requirements of Companies Act 2006 for all properties to be depreciated, is, in the opinion of the directors, necessary for the financial statements to give a true and fair view.

Other income
The income streams and how they are recognised in the accounts are as follows:

Dividend income - recognised at date the dividend was declared.

Management charge income and rents received - recognised over period of service with any amounts not yet invoiced treated as accrued income within debtors and amounts invoiced in advance treated as deferred income within short term creditors.

All amounts are recognised net of any taxes and discounts.

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

3. ACCOUNTING POLICIES - continued

Investments in subsidiaries
Investments in subsidiary undertakings are shown at cost, less provision, where applicable, for any permanent diminution in value. The director reviews the value of the investment annually for impairment.

Impairment of assets
At each reporting date financial assets as well as other fixed assets, such as goodwill and property are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. There is considered to be an impairment, where there is objective evidence that, as a result of events occurring after the date of initial recognition, the estimated future cash flows have been affected.

For assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset.

The carrying amount of the asset is reduced by the impairment loss directly for all assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.

When reviewing goodwill, investments and property for impairment, the management review the performance of the group, as well as the asset base and future expected cash flows. From this they determine whether there is any indication of impairment. If an indication is identified, an impairment will be computed as the difference between the asset's carrying amount and the value of the expected future cash flows and profitability. Any impairment on goodwill and investments is charged to the profit and loss account in the year it is identified. Any impairment on property is reduced in the revaluation reserve first, and then subsequent reductions in the valuation is charged to the profit and loss account in the year it is identified. The assets are then reviewed annually. When an impairment that has originally been charged to the profit and loss account is later reversed in a subsequent year, it is credited through the profit and loss account, up to the asset's initial carrying value.

Debtors
Short term debtors are measured at transaction price, less any impairment.

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.

Taxation
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that is probably that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income.)

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

3. ACCOUNTING POLICIES - continued

Provisions
Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.


4. EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 August 2024 nor for the year ended 31 August 2023.

The average number of employees during the year was as follows:
2024 2023

Director 1 1

There are no employee or director costs as the director receives remuneration from another company in the group.

2024 2023
£    £   
Director's remuneration - -

5. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Auditors' remuneration 2,025 1,750
Auditors' remuneration for non audit work 1,260 615
Other services relating to taxation 360 475

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 185,163 176,419

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 13,100 12,500
Over/Under Provision (175 ) (6 )

Tax on profit 12,925 12,494

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 375,991 430,536
Profit multiplied by the standard rate of corporation tax in the UK of 24.690%
(2023 - 21.460%)

92,832

92,393

Effects of:
Income not taxable for tax purposes (74,070 ) (74,037 )
Capital allowances in excess of depreciation (5,662 ) (5,856 )
Adjustments to tax charge in respect of previous periods (175 ) (6 )
Total tax charge 12,925 12,494

8. DIVIDENDS
2024 2023
£    £   
C shares shares of £1 each
Interim 370,000 400,000

9. TANGIBLE FIXED ASSETS
Freehold
property
£   
COST
At 1 September 2023
and 31 August 2024 4,453,707
NET BOOK VALUE
At 31 August 2024 4,453,707
At 31 August 2023 4,453,707

Tangible fixed assets comprise the care homes from where the two trading subsidiaries operate.

10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 September 2023
and 31 August 2024 2,500,000
NET BOOK VALUE
At 31 August 2024 2,500,000
At 31 August 2023 2,500,000

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

10. FIXED ASSET INVESTMENTS - continued

The company's investments at the Balance Sheet date in the share capital of companies include the following:

A & L Care Homes Limited
Registered office:
Nature of business: Residential care home.
%
Class of shares: holding
Ordinary 100.00

Mayflower House Limited
Registered office:
Nature of business: Residential care home.
%
Class of shares: holding
Ordinary 100.00

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 201,309 232,406
Amounts owed to group undertakings 1,929,095 1,725,275
Tax 13,100 12,500
Accruals and deferred income 19,527 28,820
2,163,031 1,999,001

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 13) 2,304,326 2,474,538

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 201,309 232,406

Amounts falling due between one and two years:
Bank loans - 1-2 years 201,309 232,406

Amounts falling due between two and five years:
Bank loans - 2-5 years 2,103,017 2,242,132

A & L CARE HOMES HOLDINGS LIMITED (REGISTERED NUMBER: 06718612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

14. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 2,505,635 2,706,944

Included within bank loans and overdrafts are bank loans totalling £2.5m (2023: £2.7m) which are secured by a 1st legal charge over the freehold. The charges against the company include both fixed and floating charges over all the assets and undertakings of the subsidiaries. The director also holds a personal guarantee over these amounts.

The loan is repayable by instalments over its remaining life, by 30 August 2028, with interest charged at 2.09% over SONIA.

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 C shares £1 100 100

The A and B shares have attached to them voting rights, dividend rights and capital distribution (including on winding up) rights, they do not confer any right of redemption.

16. RESERVES
Retained
earnings
£   

At 1 September 2023 2,517,050
Profit for the year 363,066
Dividends (370,000 )
At 31 August 2024 2,510,116

17. ULTIMATE CONTROLLING PARTY

The director, Mrs L Webb, is the ultimate controlling party through her 100% shareholding in the ultimate parent company, A & L Care Group Limited.

A & L Care Homes Holdings Limited is a wholly owned subsidiary of the ultimate parent company, A & L Care Group Limited.

The consolidated accounts of A & L Care Group Limited of 7 Sandy Court, Ashleigh Way, Langage Business Park, Plympton, Plymouth, PL7 5JX, of which this entity is a member, will be available from Companies House, Crown Way, Cardiff.