Company registration number 05847763 (England and Wales)
EHC OAKLAND HOUSE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
EHC OAKLAND HOUSE LIMITED
COMPANY INFORMATION
Directors
S Khawaja
M Cunliffe
P Keely
(Appointed 30 November 2024)
Company number
05847763
Registered office
Bollin House
Bollin Walk
Wilmslow
Cheshire
SK9 1DP
Auditor
Cooper Parry Group Limited
St James Building
79 Oxford Street
Manchester
M1 6HT
EHC OAKLAND HOUSE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
EHC OAKLAND HOUSE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Principal activities
The principal activity of the company during the year continued to be the operation of Oakland House, a long stay facility specialising in the care of adults (18+) who have an enduring mental health illness, with mild to moderate challenging behaviour, but who are not subject to the conditions of the Mental Health Act 1983. In addition, EHC Oakland House Limited includes Fallowfield Three which forms part of the hugely successful Fallowfield project. This service supports people with mental health and/or learning difficulties, within a home environment, via support tenancies.
Our strategy is to ensure that the needs of our service users are best served by working in collaboration with local clinical commissioning teams and local authorities. We aim to create working partnerships to ensure that care for our service users is seamless and that their individual care pathways always remain the focus of our service provision.
Our philosophy of care is to provide a homely environment in which we can provide support, not only to the individual resident, but also their families and significant others.
Review of the business
EHC Oakland House Limited has remained stable over the year. The level of occupancy was maintained throughout the year as the group looked to make operational improvements in order to provide the best level of care for users.
The care of the service users remains the primary business objective and the service continues to make considerable investment in the ongoing operational costs of the business.
It is the aim that the high level of occupancy continues in the upcoming year and relationships with commissioners and local authorities continue to develop and remain strong such that Oakland House remains front of mind for those in the community.
The Fallowfield project continued to be rated ‘outstanding’ by the CQC during the year. Oaklands House has been rated as ‘requires improvement’. An action plan is in place to return the service to a ‘good’ rating.
EHC OAKLAND HOUSE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risks and uncertainties
Regulatory risk
The company is subject to increasingly high levels of regulation from the CQC and various other regulatory bodies. The quality of care is the primary objective and is constantly monitored by an experienced team through robust policies and procedures and regular internal audits.
Competition risk
Pressure from competitors leads to increased pressure on prices and the opportunity to obtain referrals. Focus on the delivery of quality of care, moreover building and maintaining strong relationships with commissioners has enabled the company to remain competitive in the sector.
Credit risk
Revenue is predominantly publicly funded from Local Authorities, Clinical Commissioning Groups (CCGs) and other NHS Trusts. It is not considered a risk that the public bodies will cease to fund the services. The company delivers value for money services and works alongside authorities to provide a service aligned to their needs.
Employment risk
High quality and skilled employees are essential in delivering high quality care. The company focuses on staff retention as a priority and training and development programs are implemented for all employees.
Financial Risk Management
Interrogation of procedures and controls has continued throughout the year and our rigorous approach to reviewing the business, strategy and risk management will continue.
The company’s funding requirements are managed alongside those of fellow members of the Equilibrium Healthcare Group Limited and members of the Equilibrium Healthcare Limited group, which are under the same common ownership, with funds provided between companies on an interest free basis, where required.
M Cunliffe
Director
8 April 2025
EHC OAKLAND HOUSE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D Moodley
(Resigned 1 December 2024)
S Khawaja
M Cunliffe
G Short
(Appointed 17 January 2024 and resigned 2 June 2024)
P Keely
(Appointed 30 November 2024)
Auditor
Cooper Parry Group Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial risk management.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
EHC OAKLAND HOUSE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
On behalf of the board
M Cunliffe
Director
8 April 2025
EHC OAKLAND HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EHC OAKLAND HOUSE LIMITED
- 5 -
Opinion
We have audited the financial statements of EHC Oakland House Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the 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.
EHC OAKLAND HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EHC OAKLAND HOUSE LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the Care Quality Commission, tax legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inappropriate revenue recognition, management bias in accounting estimates and provisions. Audit procedures performed by the audit engagement team included:
Review of the financial statement disclosures to underlying supporting documentation;
Review of the Care Quality Commission reports for each home;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Identifying and reviewing key or unusual journal entries.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
EHC OAKLAND HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EHC OAKLAND HOUSE LIMITED (CONTINUED)
- 7 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Ryan Wear BSc ACA
Senior Statutory Auditor
For and on behalf of Cooper Parry Group Limited
8 April 2025
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
EHC OAKLAND HOUSE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
3,047,508
3,190,263
Cost of sales
(2,262,868)
(2,306,958)
Gross profit
784,640
883,305
Administrative expenses
(541,235)
(548,435)
Other operating income
82,105
Operating profit
4
325,510
334,870
Interest payable and similar expenses
7
(1,432)
(1,453)
Profit before taxation
324,078
333,417
Tax on profit
8
1,944
203
Profit for the financial year
326,022
333,620
The profit and loss account has been prepared on the basis that all operations are continuing operations.
EHC OAKLAND HOUSE LIMITED
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
772,339
805,468
Current assets
Debtors
10
6,243,091
5,228,883
Cash at bank and in hand
86,848
39,005
6,329,939
5,267,888
Creditors: amounts falling due within one year
11
(1,345,597)
(638,628)
Net current assets
4,984,342
4,629,260
Total assets less current liabilities
5,756,681
5,434,728
Creditors: amounts falling due after more than one year
12
(2,947)
(5,072)
Provisions for liabilities
Deferred tax liability
14
9,989
11,933
(9,989)
(11,933)
Net assets
5,743,745
5,417,723
Capital and reserves
Called up share capital
16
101
101
Profit and loss reserves
17
5,743,644
5,417,622
Total equity
5,743,745
5,417,723
The financial statements were approved by the board of directors and authorised for issue on 8 April 2025 and are signed on its behalf by:
M Cunliffe
Director
Company registration number 05847763 (England and Wales)
EHC OAKLAND HOUSE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
101
5,084,002
5,084,103
Year ended 30 June 2023:
Profit and total comprehensive income
-
333,620
333,620
Balance at 30 June 2023
101
5,417,622
5,417,723
Year ended 30 June 2024:
Profit and total comprehensive income
-
326,022
326,022
Balance at 30 June 2024
101
5,743,644
5,743,745
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information
EHC Oakland Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bollin House Riverside Park, Bollin Link, Wilmslow, Cheshire, SK9 1DP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of Equilibrium Healthcare Group Limited.These consolidated financial statements are available from its registered office.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided for patients and service users. It is shown net of VAT and other sales related taxes.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2% straight line
Office equipment
20% straight line and 20% reducing balance
Capital refurbishment
25% reducing balance
Solar panels
4% straight line
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors 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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Leases entered as finance or operating leases
Determination of whether leases entered into by the company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Impairment of tangible fixed assets
Determination of whether there are indicators of impairment in the company's tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets
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. The depreciation charge of the year and total accumulated depreciation are disclosed in the tangible assets note.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Rendering of services
3,047,508
3,190,263
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,500
3,150
Depreciation of owned tangible fixed assets
61,150
66,449
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Number of care home staff
66
63
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,539,970
1,664,198
Social security costs
116,172
138,338
Pension costs
32,678
25,686
1,688,820
1,828,222
In addition to the above staff costs, agency costs of £629,563 (2023 - £349,449) have been incurred in relation to the provision of care.
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
11,291
11,208
Company pension contributions to defined contribution schemes
121
123
11,412
11,331
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
21
Interest on finance leases and hire purchase contracts
1,432
1,432
1,432
1,453
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(1,944)
(203)
The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
324,078
333,417
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
81,020
83,354
Tax effect of expenses that are not deductible in determining taxable profit
13,859
Group relief
(85,791)
(95,302)
Permanent capital allowances in excess of depreciation
4,771
(2,114)
Deferred tax adjustments in respect of prior years
(1,944)
Taxation credit for the year
(1,944)
(203)
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
9
Tangible fixed assets
Freehold property
Office equipment
Capital refurbishment
Solar panels
Total
£
£
£
£
£
Cost
At 1 July 2023
1,129,602
20,202
1,008,535
31,878
2,190,217
Additions
19,707
8,314
28,021
At 30 June 2024
1,129,602
39,909
1,016,849
31,878
2,218,238
Depreciation and impairment
At 1 July 2023
469,578
14,526
874,028
26,617
1,384,749
Depreciation charged in the year
22,592
3,360
34,561
637
61,150
At 30 June 2024
492,170
17,886
908,589
27,254
1,445,899
Carrying amount
At 30 June 2024
637,432
22,023
108,260
4,624
772,339
At 30 June 2023
660,024
5,676
134,507
5,261
805,468
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Solar panels
4,624
5,261
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
96,216
136,026
Amounts owed by group undertakings
496,377
Other debtors
6,140,230
4,548,518
Prepayments and accrued income
6,645
47,962
6,243,091
5,228,883
Other debtors include balances with companies under common control as disclosed within the related party transaction note.
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
13
2,125
2,125
Trade creditors
119,124
64,870
Amounts owed to group undertakings
919,769
Corporation tax
50,655
71,994
Other creditors
173,863
353,845
Accruals and deferred income
80,061
145,794
1,345,597
638,628
Other creditors include balances with companies under common control as disclosed within the related party transaction note.
12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
13
2,947
5,072
13
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
2,125
2,125
In two to five years
2,947
5,072
5,072
7,197
Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 15 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
9,989
20,425
Tax losses
-
(8,492)
9,989
11,933
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
14
Deferred taxation
(Continued)
- 19 -
2024
Movements in the year:
£
Liability at 1 July 2023
11,933
Credit to profit or loss
(1,944)
Liability at 30 June 2024
9,989
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,678
25,686
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
101
101
101
101
Each share above is entitled to one vote in any circumstance.
17
Profit and loss reserves
This reserve records retained earnings and accumulated losses.
EHC OAKLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
18
Related party transactions
The company is a wholly owned subsidiary of Equilibrium Healthcare Group Limited, the consolidated accounts of which are publicly available. Accordingly, the company has taken advantage of the exemption in FRS 102 Section 33.1A from disclosing transactions with members of the group.
The company was under the control of PJ Keely throughout the current period and previous year due to his majority shareholding of Equilibrium Healthcare Group Limited. In addition PJ Keely owns the majority of the issued share capital of Equilibrium Healthcare Limited (of which EHC Moston Grange is a wholly owned subsidiary and Hasigyn Limited is a 87.5% subsidiary) and Leap29 Holdings Limited (of which Leap29 Limited is a wholly owned subsidiary). Each of these companies and groups also have common directorships. During the year, fees of £225,000 (2023 - £Nil) were payable to the majority shareholder.
Included within other debtors is £6,031,052 (2023 - £4,392,315) owed from Equilibrium Healthcare Limited and £21,602 (2023 - £21,602) due from Hasigyn Limited. Included within other creditors is £10,191 (2023 - £10,191) due to Leap29 Limited and £69,532 (2023 - £68,404 due to EHC Moston Grange Limited.
Included in other debtors is £Nil (2023 - £90,000) in respect of a loan made to Leap29 Limited. This loan does not bear interest and is repayable on demand.
19
Directors' transactions
Directors fees of £22,870 (2023 - £116,375) have been incurred in respect of two (2023 - three) individuals who were directors during the year.
20
Ultimate controlling party
The immediate and ultimate parent company, by virtue of owning 100% of the issued share capital is Equilibrium Healthcare Group Limited, a company incorporated in England and Wales.
In the opinion of the directors the parent company is controlled by Mr P J Keely by virtue of owning the majority of the issued share capital.
2024-06-302023-07-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100D MoodleyS KhawajaM CunliffeG ShortP Keely058477632023-07-012024-06-3005847763bus:Director22023-07-012024-06-3005847763bus:Director32023-07-012024-06-3005847763bus:Director52023-07-012024-06-3005847763bus:Director12023-07-012024-06-3005847763bus:Director42023-07-012024-06-3005847763bus:RegisteredOffice2023-07-012024-06-30058477632024-06-30058477632022-07-012023-06-3005847763core:RetainedEarningsAccumulatedLosses2022-07-012023-06-3005847763core:RetainedEarningsAccumulatedLosses2023-07-012024-06-30058477632023-06-3005847763core:LandBuildingscore:OwnedOrFreeholdAssets2024-06-3005847763core:FurnitureFittings2024-06-3005847763core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-06-3005847763core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2024-06-3005847763core:LandBuildingscore:OwnedOrFreeholdAssets2023-06-3005847763core:FurnitureFittings2023-06-3005847763core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-06-3005847763core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-06-3005847763core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3005847763core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3005847763core:Non-currentFinancialInstrumentscore:AfterOneYear2024-06-3005847763core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3005847763core:CurrentFinancialInstruments2024-06-3005847763core:CurrentFinancialInstruments2023-06-3005847763core:ShareCapital2024-06-3005847763core:ShareCapital2023-06-3005847763core:RetainedEarningsAccumulatedLosses2024-06-3005847763core:RetainedEarningsAccumulatedLosses2023-06-3005847763core:ShareCapital2022-06-3005847763core:RetainedEarningsAccumulatedLosses2022-06-3005847763core:ShareCapitalOrdinaryShareClass12024-06-3005847763core:ShareCapitalOrdinaryShareClass12023-06-3005847763core:LandBuildingscore:OwnedOrFreeholdAssets2023-07-012024-06-3005847763core:FurnitureFittings2023-07-012024-06-3005847763core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-07-012024-06-3005847763core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-07-012024-06-3005847763core:UKTax2023-07-012024-06-3005847763core:UKTax2022-07-012023-06-3005847763core:LandBuildingscore:OwnedOrFreeholdAssets2023-06-3005847763core:FurnitureFittings2023-06-3005847763core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-06-3005847763core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-06-30058477632023-06-3005847763core:Non-currentFinancialInstruments2024-06-3005847763core:Non-currentFinancialInstruments2023-06-3005847763core:WithinOneYear2024-06-3005847763core:WithinOneYear2023-06-3005847763core:BetweenTwoFiveYears2024-06-3005847763core:BetweenTwoFiveYears2023-06-3005847763bus:OrdinaryShareClass12023-07-012024-06-3005847763bus:OrdinaryShareClass12024-06-3005847763bus:OrdinaryShareClass12023-06-3005847763bus:PrivateLimitedCompanyLtd2023-07-012024-06-3005847763bus:FRS1022023-07-012024-06-3005847763bus:Audited2023-07-012024-06-3005847763bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP