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Registered number: 06046132










ARDEN PARTNERSHIP (LEICESTER) LIMITED










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
COMPANY INFORMATION


Directors
A N Duck (resigned 1 October 2024)
H Holman 
K Savjani (resigned 7 August 2024)
D C Ward (resigned 7 August 2024)
J P Brown (appointed 7 August 2024)
D Vermeer (appointed 1 October 2024)




Company secretary
M G Duggan



Registered number
06046132



Registered office
 
 
 
Unit G1 Ash Tree Court
Nottingham Business Park
Nottingham
England
NG8 6PY




Independent auditors
Ryecroft Glenton
Chartered Accountants & Statutory Auditors

32 Portland Terrace

Newcastle Upon Tyne

NE2 1QP





 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 

CONTENTS



Page
Directors' Report
1 - 3
Independent Auditors' Report
4 - 7
Statement of Comprehensive Income
8
Statement of Financial Position
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 22


 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Principal activity and business review

Arden Partnership (Leicester) Limited is a wholly owned subsidiary of Arden Partnership (Leicester) Holdings Limited. The Company's principal activity during the year was the operation of an Adult Learning Disability Unit in Leicester, for Leicester City Primary Care Trust (PCT) and Leicestershire County and Rutland PCT.
The Company (the SPV) completed construction of the Adult Learning Disability Unit on 17 September 2008 and the unit was handed over to Leicester City PCT and Leicestershire County and Rutland PCT. 

Results and dividends

The profit for the year, after taxation, amounted to £280k (2023: £306k).

A dividend of £NIL (2023: £50k) was approved and paid during the year.

Directors

The directors who served during the year were:

A N Duck (resigned 1 October 2024)
H Holman 
K Savjani (resigned 7 August 2024)
D C Ward (resigned 7 August 2024)
J P Brown (appointed 7 August 2024)
D Vermeer (appointed 1 October 2024)

Directors' responsibilities statement

The directors are responsible for preparing 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.

Page 1

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


Going concern

The Company has net liabilities of £707k (2023: £1,466k) which includes the fair value of the interest rate swap of £668k (2023: £1,225k), the fair value of the RPI swap of £1,175k (2023: £1,257k), and cash of £329k (2023: £544k) with a further £849k (2023: £621k) sat in a money market account at 31 December 2024. 
The directors have reviewed the future liquidity requirements and have considered the cash flow forecasts of the Company as set out in the operational model, which show that the project will continue to operate profitably and be cash generative, operating well within its means. Based on this review, and the future business prospects of the Company, despite the current economic conditions the directors believe the company will be able to meet its liabilities as they fall due and as such do not expect to be significantly affected by these events. Further consideration has been included in the risks section of the Directors’ Report.
The directors are also mindful of the relationship with the NHS Trust and ensure that this is carefully monitored and maintained. There have been no instances during the year, or since, of non-compliance of the Project Agreement, and a good working relationship with the NHS Trust remains. Furthermore, the directors closely monitor the performance of the Facilities Management contractor, ensuring they are able to continue to perform.   
Having regards to the above and after enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Principal risks and uncertainties

The Company is subject to certain risks during the operational phase of the contract; these risks, wherever possible, have been mitigated by passing the risk down to sub-contractors or by using interest rate and retail price swap instruments.
Current economic situation
The directors recognise that the current economic conditions are very challenging. The directors are of the opinion that the business will not be affected because PFI projects have very tight controls over finances and have fixed agreements with the Lenders and the NHS Trust.
Liquidity risk
During the operational period the Company charges the Trust a monthly Unitary Charge, which is sufficient to meet its trade creditors and other liabilities.
Credit risk
The Company’s main customer during operations is the Trust with which the company has a concession agreement. This concession agreement includes clauses whereby should the Company not be paid by the Trust, then the Company does not pay the relevant supplier for the services provided if the latter is the cause of the non-payment. The risk to bank borrowings and the availability of credit for this project is not material because there are agreements set up with the Lender and all drawdowns are monitored by the directors and are within credit agreement. The company therefore, does not consider its exposure to credit risk to be material.
Interest rate cash flow risk
The Company has in place hedging arrangements to eliminate risk from interest rate movements and fluctuations in Retail Price Indices. In order to ensure stability of cash flows and hence manage interest rate risk, the company has a policy of maintaining all of its bank debt at a fixed rate.
 
Page 2

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Supplier risk
The main supplier to the SPV is in relation to the Facilities Management contract. The risks associated with this contract are mitigated as it is on a fixed term at a fixed cost per annum, only increasing in line with inflation. Additionally the credit and performance risk of the Facilities Management contract supplier is monitored on a regular basis to ensure that the services are delivered on a continuing timely basis to the appropriate standard. Should service issues develop, the SPV would seek to resolve through contractual provisions and ultimately the SPV has the right to terminate the contract by serving notice and consequently putting in place an alternative contract supplier.

Future developments

The directors have closely monitored the performance of the business during the year together with its technical advisors and the contract has been carried out in line with expectations.
During the coming year the Company will continue with the operation of the Adult Learning Disability Unit for Leicester City PCT and Leicestershire County and Rutland PCT (the Trust).

Qualifying third party indemnity provisions

The directors of Arden Partnership (Leicester) Limited have qualifying third party indemnity provisions put in place through other companies of which they are also directors. 

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 auditorsRyecroft Glentonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 24 June 2025 and signed on its behalf.
 





H Holman
Director

Page 3

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARDEN PARTNERSHIP (LEICESTER) LIMITED
 

Opinion


We have audited the financial statements of Arden Partnership (Leicester) Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity 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 December 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 4

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARDEN PARTNERSHIP (LEICESTER) 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has 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 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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.


Page 5

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARDEN PARTNERSHIP (LEICESTER) LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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.


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.


The extent to which the audit was considered capable of detecting irregularities including fraud
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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the Responsible Individual ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, and anti-bribery legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence made available to us; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
Page 6

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARDEN PARTNERSHIP (LEICESTER) LIMITED (CONTINUED)


To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors (where available), along with discussing laws and regulations with those who are responsible for compliance.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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.


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.





Andrew Cameron (Senior Statutory Auditor)
  
for and on behalf of
Ryecroft Glenton
 
Chartered Accountants
Statutory Auditors
  
32 Portland Terrace
Newcastle Upon Tyne
NE2 1QP

24 June 2025
Page 7

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£000
£000

  

Turnover
  
1,201
1,176

Cost of sales
  
(275)
(246)

Gross profit
  
926
930

Administrative expenses
  
(433)
(430)

Operating profit
  
493
500

Interest receivable and similar income
 6 
584
589

Interest payable and similar expenses
 7 
(704)
(689)

Profit before tax
  
373
400

Tax on profit
 8 
(93)
(94)

Profit for the financial year
  
280
306

Other comprehensive income for the year
  

Movement in cashflow hedge
  
638
(136)

Taxation in respect of items of other comprehensive income
  
(159)
33

Other comprehensive income for the year
  
479
(103)

Total comprehensive income for the year
  
759
203

The notes on pages 11 to 22 form part of these financial statements.

Page 8

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
REGISTERED NUMBER: 06046132

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£000
£000

  

Current assets
  

Debtors: amounts falling due after more than one year
 10 
9,214
9,504

Debtors: amounts falling due within one year
 10 
492
458

Current asset investments
 11 
849
621

Cash at bank and in hand
 12 
329
544

  
10,884
11,127

Creditors: amounts falling due within one year
 13 
(950)
(964)

Net current assets
  
 
 
9,934
 
 
10,163

Total assets less current liabilities
  
9,934
10,163

Creditors: amounts falling due after more than one year
 14 
(10,641)
(11,629)

  

Net liabilities
  
(707)
(1,466)


Capital and reserves
  

Called up share capital 
 18 
3
3

Other reserves
 19 
(1,384)
(1,863)

Profit and loss account
 19 
674
394

  
(707)
(1,466)


The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 June 2025.




H Holman
Director

The notes on pages 11 to 22 form part of these financial statements.

Page 9

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 

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


Called up share capital
Other reserves
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 January 2023
3
(1,760)
138
(1,619)



Profit for the year
-
-
306
306

Hedge effective portion of change in fair value of designated hedging
-
(136)
-
(136)

Taxation in respect of other comprehensive income
-
33
-
33

Dividends: Equity capital
-
-
(50)
(50)



At 1 January 2024
3
(1,863)
394
(1,466)



Profit for the year
-
-
280
280

Hedge effective portion of change in fair value of designated hedging
-
638
-
638

Taxation in respect of other comprehensive income
-
(159)
-
(159)


At 31 December 2024
3
(1,384)
674
(707)


The notes on pages 11 to 22 form part of these financial statements.

Page 10

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Arden Partnership (Leicester) Limited (the 'company') is a private company limited by shares and is registered and incorporated in England and Wales (registered number: 06046132). The registered office is Unit G1 Ash Tree Court, Nottingham Business Park, Nottingham, England, NG8 6PY.
The company's principal activities and nature of its operations are disclosed in the Director's 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 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 £'000.

The following principal accounting policies have been applied:

 
2.2

Going concern

The Company has net liabilities of £707k (2023: £1,466k) which includes the fair value of the interest rate swap of £668k (2023: £1,225k), the fair value of the RPI swap of £1,175k (2023: £1,257k), and cash of £329k (2023: £544k) with a further £849k (2023: £621k) sat in a money market account at 31 December 2024. 
The directors have reviewed the future liquidity requirements and have considered the cash flow forecasts of the Company as set out in the operational model, which show that the project will continue to operate profitably and be cash generative, operating well within its means. Based on this review, and the future business prospects of the Company, despite the current economic conditions the directors believe the company will be able to meet its liabilities as they fall due and as such do not expect to be significantly affected by these events. Further consideration has been included in the risks section of the Directors’ Report.
The directors are also mindful of the relationship with the NHS Trust and ensure that this is carefully monitored and maintained. There have been no instances during the year, or since, of non-compliance of the Project Agreement, and a good working relationship with the NHS Trust remains. Furthermore, the directors closely monitor the performance of the Facilities Management contractor, ensuring they are able to continue to perform.   
Having regards to the above and after enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Page 11

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.3

Revenue

Income received in respect of the service concession is allocated between revenue and capital repayment of, and interest income on, the PFI financial asset using the effective interest rate method. Service revenue is recognised as a margin on non-pass-through operating and maintenance costs.

  
2.4

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income 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 Statement of financial position 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.

  
2.5

Company disclosure exemptions

In preparing the financial statements of the company, advantage has been taken of the following disclosure exemption available in FRS 102, as a result of the Company being a small entity:
• No cash flow statement has been presented for the company

Page 12

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.6

Service concession

The Company is a special purpose entity that has been established to provide services under certain private finance agreements with Leicestershire Mental Health Services NHS Trust. Under the terms of these Agreements, the Leicestershire Mental Health Services NHS Trust (as grantor) controls the services to be provided by the Company over the contract term.
Based on the contractual arrangements the company has classified the project as a service concession arrangement, and has accounted for the principal assets of, and income streams from, the project in accordance with FRS 102, Section 34.12 Service Concession Arrangements.
The Company has chosen to adopt the transitional arrangements available within FRS 102, Section 35.10(i) and as such the service concession arrangement has continued to be accounted for using the same accounting policies being applied at the date of transition to FRS 102 (1 January 2015). The nature of the asset has therefore not changed; however, there has been a change in the description from Finance Debtor to Financial Asset.
Under the terms of the arrangement, the company has the right to receive a baseline contractual payment stream for the provision of the services from or at the direction of the grantor (the Trust), and as such the asset is accounted for as a financial asset. The financial asset has initially been recognised at the fair value of the consideration receivable, based on the fair value of the construction (or upgrade) services, plus any directly attributable transaction costs, provided in line with FRS 102.

  
2.7

Financial asset

The accumulated costs incurred in respect of bid development, design, construction and finance costs during construction were transferred to finance debtor receivable when the facilities became available and are being recovered over the contract period on an annuity basis. Upon construction completion, occupational availability payments from the Trust are allocated between turnover in relation to the service element of the contract, reimbursement of the finance debtor receivable and finance income on the finance debtor receivable so as to generate a constant rate of return over the contract period. Interest payable and similar charges and administration costs relating to the day to day running of the company are written off as incurred.

  
2.8

Capitalised interest and debt issue costs

Upfront finance and arrangement costs of procuring senior debt facilities are charged to the Statement of Comprehensive Income on completion of the construction phase over the life of the relevant loans.  
Interest incurred during the construction phase is capitalised and amortised over the period of the concession.

  
2.9

Current asset investments

Current asset investments are amounts held in treasury accounts which pay a higher rate of interest. These amounts are placed on deposit for a period greater than 90 days.

Page 13

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.10

Financial instruments

The Company classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance the substance of the contractual arrangement. 
Financial instruments are recognised on the trade date when the company becomes a party to the contractual provisions of the instrument. Financial instruments are recognised initially at fair value plus, in the case of a financial instrument not at fair value through profit and loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.
Financial instruments are derecognised on trade date when the company is no longer a party to the contractual provisions of the instrument.

  
2.11

Financial liabilities and equity

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. 

  
2.12

Hedge accounting

The Company has entered into variable to fixed rate interest swaps and an RPI swap to manage its exposure to interest rate cash flow risk on its variable rate debt and inflation rate risk respectively. These derivatives are measured at fair value at each reporting date. To the extent the hedge is effective; movements in fair value are recognised in other comprehensive income and presented in a separate cash flow hedge reserve. Any ineffective portions of those movements are recognised in the profit or loss for the period. 

  
2.13

Loan arrangement fees

Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. The capitalised fees are then released to the statement of comprehensive income on a straight line basis over the term of the loan. 

 
2.14

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.

Page 14

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial year are as follows:
a. Key sources of estimation uncertainty 
Financial asset interest rate - The financial asset interest income is based on the WACC of the project and is applied to the carrying value of the financial asset on a quarterly basis. The interest rate used throughout the project life is 7.40%. 
Service margin - After the property is constructed, the Company provides property management services. The remuneration for these services is recognised at cost plus an estimated mark up for profit on property management services.   
b. Critical judgements 
Concession arrangements - The concession arrangements undertaken by the company are considered to fall within the scope of section 34 of FRS 102 "Service Concession Arrangements", as described in the turnover accounting policy note. This judgement has been based on a consideration of the nature and terms of the agreements. 


4.


Employees

The Company has no employees other than the directors.



5.


Directors' remuneration

The directors, who are key management personnel, did not receive any remuneration directly from the Company for their services to the company during the current or prior year. Their services are subcontracted from related party entities as follows:


2024
2023
£000
£000

Fees for directors' services
17
17

17
17



6.


Interest receivable

2024
2023
£000
£000


Bank interest receivable
540
561

Financial asset interest receivable
44
28

584
589

Page 15

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
619
602

Interest payable and similar charges
84
87

Other interest payable
1
-

704
689


8.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
93
94


Total current tax
93
94

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023: the same as) the standard rate of corporation tax in the UK of 25% (2023: 23.5%) as set out below:

2024
2023
£000
£000


Profit on ordinary activities before tax
373
400


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 23.5%)
93
94

Page 16

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Dividends

2024
2023
£000
£000


Dividends paid
-
50

-
50

Dividends per share is £NIL (2023: £16.67).


10.


Debtors

2024
2023
£000
£000

Due after more than one year

Finance asset
8,753
8,884

Deferred tax asset (Note 17)
461
620

9,214
9,504


2024
2023
£000
£000

Due within one year

Trade debtors
1
-

Prepayments and accrued income
167
156

Finance asset within 1 year
324
302

492
458



11.


Current asset investments

2024
2023
£000
£000

Cash on deposit
849
621

849
621


It is management's intention to actively manage cash balances held. These are amounts held in treasury accounts which pay a higher rate of interest. These amounts are placed on deposit for a period greater than 90 days. The amounts are held in a fixed term interest account which matured on 31 March 2025.

Page 17

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Cash and cash equivalents

2024
2023
£000
£000

Cash at bank and in hand
329
544

329
544


Included in cash at bank and in hand is cash of £3k (2023: £224k) which is restricted for use in pre-described circumstances by the bank. In the previous year, these restricted accounts were held as current asset investments.


13.


Creditors: Amounts falling due within one year

2024
2023
£000
£000

Bank loans (Note 15)
315
246

Other loans (Note 15)
40
38

Trade creditors
11
94

Corporation tax
93
94

Other taxation and social security
18
2

Accruals and deferred income
473
490

950
964



14.


Creditors: Amounts falling due after more than one year

2024
2023
£000
£000

Bank loans (Note 15)
8,103
8,413

Other loans (Note 15)
695
734

Financial instruments (Note 16)
1,843
2,482

10,641
11,629


Page 18

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£000
£000

Amounts falling due within one year

Bank loans
315
246

Subordinated loan notes
40
38


355
284


Amounts falling due 2-5 years

Bank loans
1,156
1,056

Subordinated loan notes
104
120


1,260
1,176

Amounts falling due after more than 5 years

Bank loans
6,947
7,357

Subordinated loan notes
591
613

7,538
7,970

9,153
9,430


Bank borrowings relate to a Senior Debt Facility from NIB Capital Bank NV.
 
The tenure of the Term Loan from NIB Capital Bank NV is 27 years and 6 months and is repayable in 55 semi-annual instalments commencing 30 September 2010 and ending 29 July 2037.  
Interest charged on amounts drawn under the loan facility is based on the floating SONIA. The company has entered into an interest rate swap agreement whereby it pays a fixed rate of 5.51% and a floating SONIA semi- annually on the set notional amount of the swap. The swap expires on 29 July 2037. 
All amounts drawn under the facility are secured by a fixed charge over all leasehold interests, book debts, project accounts and intellectual property of the company and by a floating charge over the company’s undertakings and assets.
Issue costs of the debt have been offset against the bank and will be amortised over the duration of the facilities.
On 19 June 2007, Arden Partnership (Leicester) Limited created £969k of unsecured loan notes, constituted under Deed Polls entered into on the same date. Interest is payable on the loan notes at a rate of 11% per annum, and the capital amount of the loan notes is repayable in instalments until March 2036.

Page 19

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Financial instruments

2024
2023
£000
£000

Financial assets


Financial assets measured at amortised costs
10,261
10,354


Financial liabilities


Financial liabilities measured at amortised cost
9,636
10,015

Derivative financial instruments designated as hedges of variable interest risk
1,843
2,482

11,479
12,497


Financial assets measured at amortised cost comprise finance assets, cash at bank, current asset investments, trade debtors, other debtors and prepayments (excluding accrued income).
Financial liabilities measured at amortised cost comprise bank loans, other loans, trade creditors, other creditors, and accruals.


Derivative financial instruments designated as hedges of variable interest rate risk comprise interest rate swaps and RPI swaps.
The fair values of the interest rate swaps have been determined by reference to prices available from the markets on which the instruments involved are traded.


Financial derivatives
The company has entered into interest rate swap contracts to hedge its exposure to fluctuations in interest rates and a an RPI swap to hedge its exposure to fluctuations in the Retail Price Index. The effect of the interest rate swap is that the company pays a fixed rate of interest on its bank loans. Receipts and payments on interest rate instruments are recognised on an accruals basis, over the life of the instrument.
The notional principal amount of the interest rate swap as at 31 December 2024 is £8,434k 
(2023: £8,680k). The interest rate swap matures on 31 January 2038. The fair value of the interest rate swap as at 31 December 2024 gives rise to a liability of £668k (2023: £1,225k)
The RPI swap commenced on 30 April 2009 when construction reached completion and the operational phase began. The RPI swap matures on 31 March 2039. The notional principal amount of the RPI swap as at 31 December 2024 is £192k 
(2023: £192k). The fair value or Mark to Market (MTM) of the RPI swap as at 31 December 2024 gives rise to a liability of £1,175k (2023: £1,257k).

Page 20

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Deferred taxation




2024


£000






At beginning of year
620


Charged to other comprehensive income
(159)



At end of year
461

The deferred tax asset is made up as follows:

2024
2023
£000
£000


Cash flow hedge reserve (Note 16)
461
620

461
620

The deferred tax asset in relation to the interest rate and RPI swap liability is expected to affect profit or loss over the period to maturity of the interest rate and RPI swap.


18.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



3,000 (2023: 3,000) Called up share capital shares of £1.00 each
3
3

All shares rank pari passu.



19.


Reserves

Other reserves

The cash flow hedge reserve includes all the change in fair value of designated hedging and the associated tax movement.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses net of distributions to shareholders.

Page 21

 
ARDEN PARTNERSHIP (LEICESTER) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Related party transactions

The following companies, together with undertakings within their individual groups of companies, are considered to be related parties to the company during the year. 
• Dolphin One Limited (prior to 7 August 2024)
• Equitix Fund VII Holdco B Limited (after 7 August 2024)
• Equitix Healthcare 2 Limited
The immediate parent company is Arden Partnership (Leicester) Holdings Limited which is owned jointly by Equitix Fund VII Holdco B Limited and Equitix Healthcare 2 Limited.
During the year, directors' fees of £2k 
(2023: £8.5k) and subordinated debt interest of £21k (2023: £43k) were paid to Dolphin One Limited, directors' fees of £6k (2023: £NIL), and subordinated debt interest of £21k (2023: £NIL) were paid to Equitix Fund VII Holdco B Limited, and directors' fees of £8k (2023: £8.5k), consortium relief of £47k (2023: £20k) and subordinated debt interest of £42k (2023: £43k) were paid to Equitix Healthcare 2 Limited.
At the reporting date subordinated loan notes and consortium relief of £369k (
2023: £NIL), and £369k (2023: £388k) were due to Equitix Fund VII Holdco B Limited, and Equitix Healthcare 2 Limited respectively.
During the year the company received £6k 
(2023: £6k) from Arden Partnership (Lincolnshire) Limited and £8k (2023 - £7k) from Arden Partnership (Derby) Limited for agency fees. At the reporting date £NIL (2023: £NIL) of the agency fees remained outstanding within trade debtors.
During the year the company paid £35k 
(2023: £33k) to Equitix Management Services Limited for asset management services provided during the year. At the reporting date £4k (2023: £3k) of the management services fees remained outstanding within trade creditors.


21.


Controlling party

The ultimate and immediate holding company is Arden Partnership (Leicester) Holdings Limited, registered address Unit G1 Ash Tree Court, Nottingham Business Park, Nottingham, NG8 6PY, a company registered in England and Wales. It's the directors' opinion that there is no ultimate controlling party.

 
Page 22