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Hestia Healthcare Limited

Annual Report and Unaudited Financial Statements
Year Ended 30 September 2024

Registration number: 06321543

 

Hestia Healthcare Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 10

 

Hestia Healthcare Limited

Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

33,333

133,333

Tangible assets

5

9,105,908

6,120,464

 

9,139,241

6,253,797

Current assets

 

Debtors

6

37,491

38,800

Cash at bank and in hand

 

412

278,157

 

37,903

316,957

Creditors: Amounts falling due within one year

7

(382,780)

(3,670,350)

Net current liabilities

 

(344,877)

(3,353,393)

Total assets less current liabilities

 

8,794,364

2,900,404

Creditors: Amounts falling due after more than one year

7

(11,054,850)

(4,046,587)

Provisions for liabilities

-

(6,761)

Net liabilities

 

(2,260,486)

(1,152,944)

Capital and reserves

 

Called up share capital

9

10

10

Profit and loss account

(2,260,496)

(1,152,954)

Shareholders' deficit

 

(2,260,486)

(1,152,944)

 

Hestia Healthcare Limited

Balance Sheet

30 September 2024

For the financial year ending 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 23 June 2025 and signed on its behalf by:
 

.........................................
Mr V Thayanandarajah
Company secretary and director

.........................................
Mr I Jarvis
Director

 
     

Company Registration Number: 06321543

 

Hestia Healthcare Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Kingsley House
Clapham Road South
Lowestoft
Suffolk
NR32 1QS

The business address is the same as the registered office address, although the entity operates a care home in Bedfordshire, England.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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.

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', including Section 1A, and the Companies Act 2006. There are no material departures from FRS102.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

At the year end date, the company had net liabilities of £2,260,486 (2023: £1,152,944) and incurred a net loss for the year then ended of £1,107,542 (2023: £730,194).

The directors believe, with the support of the parent company and the directors, the company has sufficient working capital to continue to trade for the foreseeable future. Also, a large loan to cover the building costs for the new carehome is held with Coutts, and was drawn down towards the year end to fund the project.

Therefore the directors continue to adopt a going concern basis in preparing the financial statements.

The financial statements do not include any adjustments that would result from any change in the company's circumstances such that the going concern basis would no longer be appropriate.

 

Hestia Healthcare Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

Key accounting judgements and 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 judgements that have a significant impact on the financial statements are described below:

Existing use value
The Existing Use Value of each property is driven by current trading performance using EBITDA as the key parameter. Management have reviewed the EBITDA used in the original valuation against current year trade and budgeted results and concluded that it is still reflective of Existing Use Value. The carrying value of land and buildings is £2,343,839 (2023 - £2,370,736).

The key estimates that have a significant effect on the amounts recognised in the financial statements are described below:

Group recharges
Cost re-allocations are required in order to fairly reflect the cost of management services borne by group companies and entities under common control. These are based on judgemental estimates of the proportion of management time spent in areas of the business which are different from where the payroll cost is originally processed, and where joint contracts of employment are in place. The carrying value of amounts owed to/from group companies and entities under common control can be found in note 6 and 7.

Property valuations
The business invests in care homes and, in common with standard industry practice, has adopted a policy under FRS 102 of carrying these assets at Existing Use Value, which is considered by the directors to approximate to Fair Value as set out below. This is due to the expectation that a care home is the main value generating purpose of each site. Valuations are performed by professional valuation experts on a routine basis as required based on a multiple of earnings. The earnings used vary depending on the performance of the business with the multiples applied varying depending on factors such as the location, condition and market position of the asset. Given the variability of these factors the fair value of these assets is a judgemental estimate which will fluctuate over time. In an arm's length sale between willing parties the best price would still be Existing use value rather than Open Market Value. These assets are used through the group for trading purposes; they are not held by the company for their investment potential and no rent is charged. Consequently, they are not classed as investment properties under FRS 102. The carrying value of land and buildings is £2,343,839 (2023 - £2,370,736).

 

Hestia Healthcare Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

Intercompany loan interest
The business trades as part of a group. In addition to recharges of central costs and other trading settlements, management charges are raised to reflect the cost of funding arranged at a group level. Significant balances with group and other connected parties arise, these balances are due after more than one year. The lending company charges interest on these loans using a market rate for an equivalent third party loan. The carrying value of amounts owed to/from group companies and entities under common control can be found in note 6 and 7.

Management are required to make estimates as to the outflow of economic benefits which will be required to settle an obligation in making provisions.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the Company's activities.

Income relates to monies received for the provision of care home services and is recognised on a straight line basis over the period of residence.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets, except freehold land and buildings are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Freehold land and buildings are stated in the balance sheet at valuation. An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

2% straight line

Fixtures, fittings & equipment

20-100% straight line

 

Hestia Healthcare Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% Straight Line

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Loans with group and connected companies; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when a company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are
cancelled.

Except for loans with group and connected companies, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Loans with group and connected companies are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2023 - 2).

 

Hestia Healthcare Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 October 2023

1,000,000

1,000,000

At 30 September 2024

1,000,000

1,000,000

Amortisation

At 1 October 2023

866,667

866,667

Amortisation charge

100,000

100,000

At 30 September 2024

966,667

966,667

Carrying amount

At 30 September 2024

33,333

33,333

At 30 September 2023

133,333

133,333

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Assets under course of construction
 £

Total
£

Cost or valuation

At 1 October 2023

2,560,967

34,887

3,739,463

6,335,317

Additions

24,819

770

3,017,678

3,043,267

Disposals

-

(13,720)

-

(13,720)

At 30 September 2024

2,585,786

21,937

6,757,141

9,364,864

Depreciation

At 1 October 2023

190,231

24,622

-

214,853

Charge for the year

51,716

6,107

-

57,823

Eliminated on disposal

-

(13,720)

-

(13,720)

At 30 September 2024

241,947

17,009

-

258,956

Carrying amount

At 30 September 2024

2,343,839

4,928

6,757,141

9,105,908

At 30 September 2023

2,370,736

10,265

3,739,463

6,120,464

 

Hestia Healthcare Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

Included within the net book value of land and buildings above is £2,343,839 (2023 - £2,370,736) in respect of freehold land and buildings.
 

Revaluation

The company's freehold property was revalued on 11 July 2018 by an independent valuer. The name and qualification of the independent valuer are Colliers International who are Chartered Surveyors. The basis of this valuation was existing use value, which is considered by the Directors to approximate to fair value. Had this class of asset been measured on a historical cost basis, their carrying amount would have been £1,897,157 (2023 - £1,921,181). The Directors have assessed that the existing use value calculated by the independent valuer in the latest valuation described above continues to be an accurate fair value of the freehold properties as at 30 September 2024.

6

Debtors

2024
 £

2023
 £

Trade debtors

17,760

-

Other debtors

9,518

34,935

Prepayments

10,213

3,865

Total current trade and other debtors

37,491

38,800

7

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

8

323,781

3,322,115

Trade creditors

 

-

300,008

Social security and other taxes

 

11,890

2,755

Outstanding defined contribution pension costs

 

2,254

723

Other creditors

 

3,631

3,732

Accrued expenses

 

41,224

41,017

 

382,780

3,670,350

Due after one year

 

Amounts owed to entities under common control

 

11,054,850

4,046,587

 

Hestia Healthcare Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

8

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

-

3,322,115

Bank overdrafts

323,781

-

323,781

3,322,115

Bank loans and overdrafts are secured by a charge over the freehold properties owned by the company.

Bank borrowings

The bank loan is denominated in sterling, £, with a nominal interest rate of 3.75% above base rate, and the final instalment was paid on 31 January 2024. The carrying amount at year end is £Nil (2023 - £3,322,115).

9

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

10

10

10

10

10

Financial commitments, guarantees and contingencies

The company is party to a cross guarantee with related parties in favour of Coutts & Co. The bank borrowings are secured by a charge over the freehold properties owned by the related parties.

The bank borrowing of the companies at the balance sheet date amounted to:

Other related parties £48,039,615 (2023 - £37,017,997)

 

Hestia Healthcare Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

11

Related party transactions

The company has taken advantage of the exemption provided by FRS102 to not disclose transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

Summary of transactions with entities under common control

During the year the company entered into various transactions with entities under common control. Transactions entered into, and trading balances outstanding at the year end, are as shown below. Outstanding balances with entities are unsecured, interest bearing and cash settled.
 

Loans from related parties

2024

Entities under common control
£

At start of period

4,046,587

Advanced

7,152,369

Repaid

(144,106)

At end of period

11,054,850

2023

Entities under common control
£

At start of period

3,661,167

Advanced

433,493

Repaid

(48,073)

At end of period

4,046,587

Terms of loans from related parties

The loans have a 366 day notice period for repayment. Interest is charged on these balances and the amounts are presented in other creditors falling due after more than one year and other debtors receivable after more than one year.

12

Parent and ultimate parent undertaking

The company's immediate parent is Hestia Healthcare (Holdings) Limited, incorporated in England and Wales.

 The ultimate controlling party is The Tulip Trust.