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Regal Healthcare Holdings Limited

Annual Report and Consolidated Financial Statements
Year Ended 30 September 2024

Registration number: 07336195

 

Regal Healthcare Holdings Limited

Contents

Strategic Report

1 to 6

Directors' Report

7 to 9

Statement of Directors' Responsibilities

10

Independent Auditor's Report

11 to 15

Consolidated Profit and Loss Account

16

Consolidated Statement of Comprehensive Income

17

Consolidated Balance Sheet

18

Balance Sheet

19

Consolidated Statement of Changes in Equity

20

Statement of Changes in Equity

21

Consolidated Statement of Cash Flows

22

Notes to the Financial Statements

23 to 49

 

Regal Healthcare Holdings Limited

Strategic Report

Year Ended 30 September 2024

The Directors present their report for the year ended 30 September 2024.

The Kingsley Healthcare Group (“Kingsley”) can be defined as the ten operating groups headed by the following companies: Peacock Holdings (2015) Limited; KCH (UK) Holdings Limited; Regal Healthcare Holdings Limited; Althea Healthcare Holdings Limited; Timperley Holdings Limited; Hestia Healthcare Holdings Limited; Partington Healthcare Holdings Limited; Kingsley Healthcare (OLH) Limited; Kingsley Healthcare (Bournemouth Property) Limited and Kingsley (KMT) Limited. All of these operating groups under the Kingsley umbrella are affected by similar factors and, therefore, the same strategies, which are covered in this Strategic Report, apply to each of them. For the purpose of these specific financial statements, meanwhile, references to the “Group” will refer to the Regal Healthcare Holdings Limited operating group whilst references to the “Company” will refer to Regal Healthcare Holdings Limited

Kingsley Healthcare

Kingsley Healthcare, a nationally recognised, family-run provider of residential and nursing care, proudly reports a year of continued progress and resilience, underpinned by strong trading performance, robust cash generation and a clear strategic vision. Kingsley Healthcare continues to be a leader in the adult social care sector through its long-term investment approach, people-first culture and sustained operational excellence.

As the UK’s first major care operator to achieve B Corp certification and having been named Residential Care Provider of the Year – 2024 by Health Investor, we remain steadfast in our commitment to delivering high-quality, person-centred care and driving meaningful social and environmental impact across our operations.

Strategic Focus and Business Performance

Our strategy centres on harnessing the strength of our balance sheet and the depth of our talent to drive both organic and inorganic growth. Mature homes within the Kingsley portfolio continue to deliver strong revenue growth and profitability, with overall trading performance aligned to expectations.

Significant cash generation during the period enabled Kingsley to secure additional banking facilities, enhancing our financial flexibility to support further investment in services, property, technology and people. These developments reaffirm our long-term commitment to creating value for all stakeholders.

Operational Developments and Investments:

We continue to make targeted investments to future-proof the business, including:

Expansion into new geographic hubs, supported by robust infrastructure and internal capabilities.

Investment in digital transformation, covering call centre operations, integrated finance systems, cyber security and IT infrastructure.

Enhancements to core care platforms — including care planning, medication management and governance systems.

Implementation of a comprehensive CRM solution to strengthen sales, client engagement and operational efficiency.

 

Regal Healthcare Holdings Limited

Strategic Report

Year Ended 30 September 2024

Sustainability and Corporate Responsibility

Kingsley’s recognition as a B Corp certified organisation marks a milestone in our sustainability journey. We have embedded sustainability into all areas of our service delivery, focusing on community wellbeing, environmental stewardship and responsible governance.

People and Culture

Our people remain at the heart of our success. We have invested substantially in training and development through the Kingsley Academy, ensuring every one of our front line colleagues is equipped to deliver high-quality, compassionate care.

We are proud to be a Real Living Wage Employer, with low staff turnover rates in the sector. Independent platforms such as Glassdoor and Indeed consistently rank Kingsley as one of the top employers in healthcare for workplace wellbeing.

We have increased our use of social media as a platform to showcase the outstanding care and community engagement within our homes. This not only bolsters staff recognition and morale, but also strengthens our brand as an employer and helps families stay connected with daily life within our services.

Regal Healthcare Holdings Group

The Group operates care facilities across the United Kingdom, providing high quality residential, nursing and specialist care.

Principal activity

The principal activity of the company is that of a property holding company.

Fair review of the business

When analysing Regal Healthcare Holdings Limited’s trading results for the financial year to 30 September 2024, the Company’s board is pleased with its performance when compared to previous years.

Group turnover for the year was £15.9m. In comparison to the revenue results achieved last year, the Group has seen a healthy increase of £1.5m or 10%. The incremental revenue uplift can be attributed to increased occupancy in our mature homes and the achievement of higher average weekly fees.

Average occupancy across the Group’s homes during the year was 85% (2023: 72%), which is a notable and rewarding reflection of the ongoing market support for Kingsley’s service proposition.

The average weekly fees charges have increased compared to the prior year. The improvement has been driven by the Group ensuring that its income base moves upwards in line with its increasing cost bases. Kingsley has been working diligently to align its fees to its cost of care model, liaising with families and commissioning bodies to ensure the fees being paid appropriately reflect the costs being incurred in the delivery of its top-class services. Fostering even stronger relationships with the Clinical Commissioning Groups local to its residential and nursing care facilities has also served the Group well during the year. Feedback confirms that Kingsley’s weekly fees remain attractive to these commissioners.

 

Regal Healthcare Holdings Limited

Strategic Report

Year Ended 30 September 2024

Group EBITDA for the year was £993,900 (2023: £227,752). Net Loss Before Tax, meanwhile, decreased to £806,166 (2023: £2,378,117). The loss was expected due to the Group’s continued investment in its infrastructure and logistics functions. In light of this, the directors believe the Group’s performance for the year was highly positive, particularly when viewed against the challenging economic backdrop.

We have seen improved cashflow generation, especially from the mature homes, which has enabled us to continually invest in our portfolio and also to explore inorganic opportunities. The Group also remains financially agile with a strong balance sheet, which is a very good position to be in. The strength of the Group has also been consistently underpinned by the shareholders and has drawn further support from our bankers Santander.

The Group’s Fixed Assets amount to £47.2m whilst Net Debt totals £27.2m, excluding intercompany debt.

This places the Group in a very strong position within its industry in the post-pandemic era.

Key performance indicators

In keeping with previous year-end reporting, the trading Group has measured its success during the 2024 financial year against four key performance indicators. These benchmarks are centred on results in the areas of occupancy, turnover, EBITDA and net profit.

 

2024

2024

Average Occupancy

85%

72%

Turnover

£15,892,564

£14,442,127

EBITDA

£993,900

£227,752

Net Profit/(Loss) Before Tax

(£806,166)

(£2,378,117)

Section 172(1) Statement

The Directors of the Company and Group are required to act in accordance with the duties prescribed under Section 172 of the Companies Act 2006, which demands they should carry out their duties in a way they consider, in good faith, to be most likely to promote the success of the Company for the benefit of its members as a whole while having regard to the interests of the Company’s other stakeholders. The Company includes among its other primary stakeholders its staff, its service users and their families, its suppliers, its financing partners, the relevant industry regulators and the communities the Company serves. It is these parties that either impact the Group’s strategy materially or are themselves impacted by it directly. As a responsible business building long-term shareholder value, we listen to our stakeholders regularly to help us guide our strategy and to ensure we continue to operate in a way that delivers the best care we are able to provide to our residents.

 

Regal Healthcare Holdings Limited

Strategic Report

Year Ended 30 September 2024

Section 172 requires each director of a company, when making decisions regarding the like of the Company’s trading strategy and operational objectives, to ensure that such decisions are made considering the possible long-term consequences associated with them. For its part, and in pursuit of the realisation of its ‘Vision 2025’ strategy during the year, the Board has regularly monitored progress against its targets and modified its ambitions to ensure predicted outcomes result in the ongoing sustainability of the business. The board of the Company consistently maintains a long-term outlook in relation to its future activities through many different aspects of the business, whether it is the investment in current and future facilities, staff recruitment and retention or compliance and risk management, Kingsley has ensured the long-term effect is incorporated with every decision. Throughout the year, the Group also introduced a new step-down learning disability service in Lowestoft, further strengthening our pathway to support residents in building independence, developing essential life skills, and integrating into the community.

The Board recognises the importance of the responsibilities incumbent upon it under Section 172 and believes it has made all material decisions during the course of the year in a manner that reflects its proper consideration of these duties. In doing so, the Board has consistently behaved responsibly towards its shareholders to ensure they are treated fairly and equally.

The Company maintains open and regular communication with its financing partners, providing detailed management accounts and long-term financial models to ensure transparency and alignment.

The Company places utmost importance on the dignity, independence, and well-being of its service users. Central to all Company endeavours are the quality of daily experiences for these stakeholders. The Directors emphasize the crucial role of maintaining good governance across the organisation's activities, ensuring consistency for all involved parties. Setting itself apart from competitors, the Company upholds high standards of integrity and business conduct, driven by values of kindness, compassion and empathy.

The Group has maintained a steady supply of essential operational materials by fostering strong, long-term partnerships with trusted suppliers. Many of these suppliers have prioritised their longstanding relationship with Kingsley over new business opportunities, offering key advantages such as stable pricing and access to warehouse facilities. As supply chain pressures continue into 2025, we remain committed to strengthening these invaluable relationships.

Understanding that our homes are often central to their communities, Kingsley takes its responsibilities seriously. Our senior leadership team actively champions initiatives that support the well-being of the towns and villages we serve. Beyond our dedication to responsible energy management and efficiency, we have expanded our efforts with new community-focused initiatives across our locations.

Our people are at the heart of everything we do. We deeply value each colleague’s contribution to upholding Kingsley’s values and driving our success. To reflect our commitment, we have conducted a thorough review of our benefits package, ensuring we remain the leading employer in adult social care across all our home locations.

In 2024, Kingsley reaffirmed its commitment as a Real Living Wage employer. We believe that fair pay not only acknowledges our employees' dedication but also strengthens retention and attracts top talent. In an industry where rising living costs and workforce shortages present challenges, it is crucial to demonstrate our unwavering support for our team. Beyond ensuring the Real Living Wage as a baseline, we provide additional resources, including financial guidance, well-being programs, mental health support, and nutrition counselling, ensuring our people feel valued, supported and empowered.

 

Regal Healthcare Holdings Limited

Strategic Report

Year Ended 30 September 2024

Kingsley proactively continues to invest in new platforms to support its staff with their career and personal progression. Since the year end, one of the most notable achievements has been the successful implementation of Workday, a comprehensive financial accounting and reporting system. While this transition demanded considerable effort and resources, the results are clear and we now enjoy faster, more streamlined processes that enable our leadership team to focus on delivering innovative care. With integrated AI and machine learning capabilities, these systems offer data-driven insights that will help Kingsley further enhance its efficiency and service quality.

As a leading national provider of residential, nursing, and specialist care services, we have an inherent duty to be a dependable support system for those who rely on us—our residents, colleagues, and partners alike. We take this responsibility seriously and our stakeholder management approach is built on fostering strong, mutually beneficial relationships grounded in integrity, compassion and kindness. These core values are woven into every aspect of our organisation, setting Kingsley apart as the trusted and respected provider it is today.

Looking ahead, we are confident that the financial year ending 30 September 2024 has been tremendously positive, marked by our continued commitment to delivering exceptional care while advancing the aspirations of our stakeholders. The Board remains focused on making strategic, long-term investment decisions that prioritise the well-being of all those we serve.

Environmental, Social & Governance (ESG)

As noted above, achieving B Corp certification represents a key milestone in our sustainability journey. We have integrated sustainability across all aspects of our service delivery framework, with a focus on community wellbeing, environmental responsibility and strong governance.

Principal risks and uncertainties

Sector and Market Risk

The UK care sector benefits from favourable demographic trends but faces constraints in capacity due to rising building costs and planning limitations. We have proactively invested in our property portfolio to ensure that our homes remain modern, efficient and aligned with evolving customer expectations.

There remains a strong demand for high quality care from self-funding clients, complemented by stable relationships with local commissioning bodies, supported by transparent cost of care models.

Operational and Regulatory Risk

The care sector is subject to extensive regulatory oversight, which means non-compliance can lead to both reputational damage, limitations on admissions and even the closure of services.

Our compliance teams work in close coordination with our operational teams to ensure all regulatory standards are met and our governance framework remains strong. Where improvements are required, comprehensive action plans are put in place.

People Risk

Sector-wide workforce shortages, high turnover and reliance on agency staff can impact the quality of care and operational continuity.

 

Regal Healthcare Holdings Limited

Strategic Report

Year Ended 30 September 2024

Our strategic focus on staff retention, remuneration and wellbeing mitigates the wider sector challenge of staffing shortages. Immigration changes present only a limited risk, given our strong domestic workforce and low reliance on overseas recruitment.

Financial and Funding Risk

Exposure to interest rate volatility, funding constraints or regional property value fluctuations could impact our financial performance and growth plans.

We maintain strong relationships with our banking partners that support both ongoing operations and future expansion. Our advisory committee is constantly monitoring interest rate volatility, bond rates and hedging movements. We are pleased that, given the strength of our balance sheet, these are managed in a sensible manner. Our diversified property portfolio mitigates location-specific risks.

Going Concern

The Directors have reviewed the Group’s trading projections, cash flow forecasts and financial plans for the foreseeable future and confirm that the Group has significant resources that are more than adequate to allow it to meet its obligations for a period of twelve months from the signing of these accounts. With a robust balance sheet, growing revenues and resolute banking support, the Directors are confident in the Group’s ongoing viability.

As such, the Directors consider it appropriate to prepare these financial statements on a going concern basis.

We remain confident in the strength and resilience of our business model. Meanwhile, our continued investment in infrastructure, digital systems, talent and real property positions Kingsley Healthcare for sustained growth and leadership in the care sector.

The Directors are cautiously optimistic about the sector’s long-term prospects and have confidence in Kingsley’s unique ability, as a family-owned operator, to respond with agility and purpose to emerging opportunities.

We will continue to invest in our services, expand our reach and enrich the lives of those we serve, being always guided by our core values of integrity, kindness, compassion and empathy.

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

.........................................
Mr V Thayanandarajah
Director

   
     
 

Regal Healthcare Holdings Limited

Directors' Report

Year Ended 30 September 2024

The directors present their report and the for the year ended 30 September 2024.

Directors of the group

The directors who held office during the year were as follows:

Mr V Thayanandarajah

Mrs S C Thayanandarajah

Mr I Jarvis

Mr C D Thayan

Mr E D Thayan

Financial instruments

Objectives and policies

The directors make use of a range of financial resources to further the operation and development of the Group’s business. Secured senior debt facilities are provided, on an approximately equal basis, by three well established and highly regarded banks. The Group continues to believe that its working partnership with these institutions appropriately diversifies its counterparty risk and the failure of one or other of the Group’s banking partners is deemed to be very unlikely.

The Group’s capital expenditure and working capital requirements are funded by a blend of secured term loans and overdraft facilities, which are secured against the Group’s property assets. The directors monitor debt servicing capability and covenant compliance on an ongoing basis, utilising three-year financial forecasts to ensure adequacy in these areas.

Certain of the Group’s future development projects, including several that have been recently initiated, will feature funding arrangements with a prominent real estate investment trust that specialises in providing sustainable support for operators in the healthcare sector. The directors recognise that it is largely down to the financial strength and historic performance of the Group that it has been able to maintain a strong negotiating position in this context. They are also confident that the Group’s relationship with its funding partners continues to be stable and productive.

Price risk, credit risk, liquidity risk and cash flow risk

The directors believe that the Group’s diversification of its service offering across a range of geographical locations nationally provides fundamental protection against price risk in relation to its fixed asset investment portfolio. The recent appointment of a dedicated Credit Controller, meanwhile, has bolstered the Group’s capability in the area of debt collection and income management across both the privately-funded and local authority-funded market segments. Bad debts remain at minimal levels and electronic fee processing provides for efficient and timely settlement of issued invoices. Management accounting information is carefully collated and delivered to the board on a monthly basis, which allows the directors to accurately monitor the Group’s cash flow position and mitigate any risk in this critical operating space.

Future developments
This area of the Group’s activities has been analysed in some detail within the body of the Strategic Report, which can be found above at page 2.

 

Regal Healthcare Holdings Limited

Directors' Report

Year Ended 30 September 2024

Employees
The Group gives full and fair consideration to applications for employment received from both able-bodied and disabled persons, with due regard being given to the personal abilities and aptitudes of each applicant. Disabled employees are afforded equal opportunities to advance their careers and their efforts to succeed further are properly recognised where applicable.

The Group makes every effort to ensure its employees are kept informed as to the Group’s activities in a timely manner and it encourages open discussions between employees and the management team.

The Strategic Report above contains a Section 172 statement that elaborates on the activities undertaken by the Group during the year to promote the interests of its employees.

Business Relationships

The directors are acutely aware that the Group will be best placed to maximise its profitability and efficiency if it nurtures healthy and long-term relationships with its key business partners, including its service users, suppliers and providers of finance. Accordingly, principal decisions taken by the Group during the year have been agreed after due consideration of the wider interests of the Group’s stakeholders. Detailed comment concerning the fostering of the Group’s business relationships is included in the Section 172 statement forming part of the Strategic Report at Page 2.

Streamlined Energy and Carbon Reporting (SECR)

In accordance with the regulations introduced during 2018, the Group is identified as being large. Despite this categorisation, no energy and carbon reporting is required as none of the individual subsidiaries within the Group breach the large company threshold in their own right. Further, the parent company of the Group does not purchase or consume >40MWh of energy per annum. Accordingly, no separate SECR analysis is required to be included in this Directors’ Report.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Disclosure Requirements

In accordance with Section 414C(11) of the Companies Act 2006, the directors have chosen to include certain disclosures in the Strategic Report that would otherwise be required in the Directors’ Report. These include:
• An indication of the group’s future developments;
• Information on the group’s engagement with employees and stakeholders;
• Details of the group’s environmental, social, and governance (ESG) initiatives, including its B
Corp certification.
The directors believe that including this information in the Strategic Report provides a more cohesive and comprehensive overview of the group’s strategy, performance, and impact.

 

Regal Healthcare Holdings Limited

Directors' Report

Year Ended 30 September 2024

Reappointment of auditors

The auditors PKF Francis Clark are deemed to be reappointed under section 487(2) of the Companies Act 2006.

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

.........................................
Mr V Thayanandarajah
Director

   
     
 

Regal Healthcare Holdings Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Regal Healthcare Holdings Limited

Independent Auditor's Report to the Members of Regal Healthcare Holdings Limited

Opinion

We have audited the financial statements of Regal Healthcare Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's loss 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Regal Healthcare Holdings Limited

Independent Auditor's Report to the Members of Regal Healthcare Holdings Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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 Statement of Directors' Responsibilities set out on page 10, 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

 

Regal Healthcare Holdings Limited

Independent Auditor's Report to the Members of Regal Healthcare Holdings Limited

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.

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:

 

Regal Healthcare Holdings Limited

Independent Auditor's Report to the Members of Regal Healthcare Holdings Limited

As part of our audit planning, through discussions with management, we obtained an understanding of the legal and regulatory framework that is applicable to the group and the sector in which it operates to identify the key laws and regulations affecting the group.

The group operates in the health and adult social care sector which is regulated by the Care Quality Commission (CQC). The regulator sets out a constantly evolving list of regulations that all care homes must follow such as compliance with keys laws and regulations including Health and Safety, Manual Handling and Food Hygiene regulations. CQC carry out routine inspections to ensure care homes are following these regulations and have the power to bring legal proceedings against any home that does not comply.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Companies Act 2006, the reporting framework (FRS 102), and relevant tax compliance regulations in the UK.

We discussed with management how compliance with these laws and regulations is monitored and we discussed the policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the group's ability to continue trading and the risk of material misstatement to the accounts.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
- Enquiries of management and those charged with governance regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
- Review of latest CQC reports; and
- Review of the homes Food Hygiene rating.

As part of our enquiries, we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none.

We also evaluated the risk of fraud through management override including that arising from management's incentives. The key risk we identified was fraudulent financial reporting to meet the companies bank loan covenants.

In response to the identified risk, as part of our audit work we:
- Used data analytics to test journal entries throughout the year and yearend adjustments, for appropriateness;
- Reviewed estimates and judgements made in the accounts for any indication of bias and challenged
assumptions made by management in making estimates; and
- Reviewed the basis of costs recharged between group companies, making sure that there is a clear justification. We challenged management and assessed the reasonableness of all recharges.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

 

Regal Healthcare Holdings Limited

Independent Auditor's Report to the Members of Regal Healthcare Holdings Limited

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 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.

......................................
James Barrett (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

27 June 2025

 

Regal Healthcare Holdings Limited

Consolidated Profit and Loss Account

Year Ended 30 September 2024

Note

2024
 £

2023
 £

Turnover

3

15,892,564

14,442,127

Cost of sales

 

(12,265,375)

(10,711,894)

Gross profit

 

3,627,189

3,730,233

Administrative expenses

 

(2,905,288)

(5,016,504)

Other operating income

4

42,460

83,353

Operating profit/(loss)

5

764,361

(1,202,918)

Other interest receivable and similar income

9

719,314

588,741

Interest payable and similar charges

10

(2,289,841)

(1,763,940)

Loss before tax

 

(806,166)

(2,378,117)

Taxation

11

(303,814)

(217,152)

Loss for the financial year

 

(1,109,980)

(2,595,269)

Profit/(loss) attributable to:

 

Owners of the company

 

(1,109,980)

(2,595,269)

 

(1,109,980)

(2,595,269)

The above results were derived from continuing operations.

 

Regal Healthcare Holdings Limited

Consolidated Statement of Comprehensive Income

Year Ended 30 September 2024

2024
£

2023
£

Loss for the year

(1,109,980)

(2,595,269)

Surplus on property revaluation

10,182,912

-

Deferred tax movement on revalued properties

(2,265,422)

1,230,707

7,917,490

1,230,707

Total comprehensive income for the year

6,807,510

(1,364,562)

Total comprehensive income attributable to:

Owners of the company

6,807,510

(1,364,562)

 

Regal Healthcare Holdings Limited

Consolidated Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

12

374,145

124,259

Tangible assets

13

46,861,714

31,530,129

 

47,235,859

31,654,388

Current assets

 

Stocks

15

60,515

59,039

Debtors (including £9,642,481 due after more than one year (2023 - £8,394,430))

16

11,379,916

10,480,821

Cash at bank and in hand

 

1,853,707

2,584,871

 

13,294,138

13,124,731

Creditors: Amounts falling due within one year

18

(3,571,045)

(3,846,841)

Net current assets

 

9,723,093

9,277,890

Total assets less current liabilities

 

56,958,952

40,932,278

Creditors: Amounts falling due after more than one year

18

(32,194,055)

(25,529,260)

Provisions for liabilities

22

(5,804,319)

(3,249,950)

Net assets

 

18,960,578

12,153,068

Capital and reserves

 

Called up share capital

24

300

300

Capital redemption reserve

861,012

861,012

Revaluation reserve

17,371,829

9,551,677

Profit and loss account

727,437

1,740,079

Equity attributable to owners of the company

 

18,960,578

12,153,068

Total equity

 

18,960,578

12,153,068

Company Registration Number: 07336195

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

.........................................
Mr V Thayanandarajah
Director

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

 
     
 

Regal Healthcare Holdings Limited

Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

13

26,503,401

16,113,784

Investments

14

10,703,113

10,703,113

 

37,206,514

26,816,897

Current assets

 

Debtors (including £16,761,336 due after more than one year (2023 - £15,213,828))

16

16,985,111

15,536,129

Cash at bank and in hand

 

892,361

1,072,609

 

17,877,472

16,608,738

Creditors: Amounts falling due within one year

18

(546,959)

(665,259)

Net current assets

 

17,330,513

15,943,479

Total assets less current liabilities

 

54,537,027

42,760,376

Creditors: Amounts falling due after more than one year

18

(43,428,156)

(36,492,687)

Provisions for liabilities

22

(3,023,763)

(1,538,601)

Net assets

 

8,085,108

4,729,088

Capital and reserves

 

Called up share capital

24

300

300

Capital redemption reserve

861,012

861,012

Revaluation reserve

5,456,171

1,324,899

Profit and loss account

1,767,625

2,542,877

Shareholders' funds

 

8,085,108

4,729,088

The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a loss after tax for the financial year of £775,252 (2023 - loss of £2,678,804).

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

.........................................
Mr V Thayanandarajah
Director

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

 
     

Company Registration Number: 07336195

 

Regal Healthcare Holdings Limited

Consolidated Statement of Changes in Equity

Year Ended 30 September 2024

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 October 2023

300

861,012

9,551,677

1,740,079

12,153,068

Total comprehensive income

-

-

7,917,490

(1,109,980)

6,807,510

Transfer of realised profits

-

-

(97,338)

97,338

-

At 30 September 2024

300

861,012

17,371,829

727,437

18,960,578


 

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 October 2022

300

861,012

8,407,934

4,248,384

13,517,630

Total comprehensive income

-

-

1,230,707

(2,595,269)

(1,364,562)

Transfer of realised profits

-

-

(86,964)

86,964

-

At 30 September 2023

300

861,012

9,551,677

1,740,079

12,153,068

 

Regal Healthcare Holdings Limited

Statement of Changes in Equity

Year Ended 30 September 2024

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 October 2023

300

861,012

1,324,899

2,542,877

4,729,088

Total comprehensive income

-

-

4,131,272

(775,252)

3,356,020

At 30 September 2024

300

861,012

5,456,171

1,767,625

8,085,108

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 October 2022

300

861,012

556,040

5,221,681

6,639,033

Total comprehensive income

-

-

768,859

(2,678,804)

(1,909,945)

At 30 September 2023

300

861,012

1,324,899

2,542,877

4,729,088

 

Regal Healthcare Holdings Limited

Consolidated Statement of Cash Flows

Year Ended 30 September 2024

Note

2024
£

2023
£

Cash flows from operating activities

Loss for the year

 

(1,109,980)

(2,595,269)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

1,229,539

1,430,670

Loss on disposal of tangible assets

-

2,238,206

Finance income

9

(719,314)

(588,741)

Finance costs

10

2,289,841

1,763,940

Corporation tax expense

11

303,814

217,152

 

1,993,900

2,465,958

Working capital adjustments

 

(Increase)/decrease in stocks

15

(1,476)

160,328

Increase in trade debtors

16

(937,843)

(1,272,222)

(Decrease)/increase in trade creditors

18

(310,495)

2,256,210

Cash generated from operations

 

744,086

3,610,274

Corporation taxes received/(paid)

 

24,734

(474,847)

Net cash flow from operating activities

 

768,820

3,135,427

Cash flows from investing activities

 

Interest received

719,314

588,741

Acquisitions of tangible assets

(6,277,707)

(2,797,346)

Proceeds from sale of tangible assets

 

10,472

-

Acquisition of intangible assets

12

(360,863)

(102,527)

Net cash flows from investing activities

 

(5,908,784)

(2,311,132)

Cash flows from financing activities

 

Interest paid

10

(2,289,841)

(1,763,940)

Proceeds from bank borrowing draw downs

 

6,000,000

-

Proceeds from other connected companies

 

664,765

-

Receipts from finance lease debtors

 

53,014

-

Payments to finance lease creditors

 

(19,138)

(899)

Net cash flows from financing activities

 

4,408,800

(1,764,839)

Net decrease in cash and cash equivalents

 

(731,164)

(940,544)

Cash and cash equivalents at 1 October

 

2,584,871

3,525,415

Cash and cash equivalents at 30 September

 

1,853,707

2,584,871

 

Regal Healthcare Holdings Limited

Notes to the 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 care homes across various locations in 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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. There are no material departures.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 September 2024.

As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Summary of disclosure exemptions for parent company

FRS 102 grants a qualifying entity exemptions from the full requirements of FRS 102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity:

The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and its cash flows are included in the consolidated financial statements of the group. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other members of the Regal Healthcare group.

Key accounting judgements and sources of estimation uncertainty

In the application of the group'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.

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

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 £39,223,582 (2023 - £29,344,212).

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

Group and connected company 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 16 and 18.

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, existing use value is the industry standard for setting the price, and therefore represents market value. These assets are used through the group for trading purposes; they are not held by the group 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 £39,223,582 (2023 - £29,344,212).

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 group 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 16 and 18.

Deferred tax on revalued land and buildings
Deferred tax on revalued land and buildings is estimated by comparing the indexed cost to the net book value of the revalued asset and then using the expected future tax rate to estimate the future tax liability. The carrying value of the deferred tax liability is £5,084,338 (2023 - £2,816,916).

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

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’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.

The current corporation 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 group operates and generates taxable 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 consolidated 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.

Deferred tax movements on the timing differences of revalued properties are recognised in the revaluation reserve via other comprehensive income. Where the revaluation reserve is nil, the deferred tax movement is charged to the profit and loss.

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 land

Not depreciated

Freehold property

2% straight line

Furniture, fittings and equipment

20-100% straight line

Motor vehicles

20% straight line

Assets under course of construction

Not depreciated

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the
useful life cannot be made.

Intangible assets

Intangible assets are stated in the balance sheet at cost, less subsequent accumulated amortisation. Costs include software development expenditure.

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

Software

20% straight line

Current asset investments

Current asset investments are included at the lower of cost and net realisable value.

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.

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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Financial instruments

Classification
The group holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans;
• Loans with entities under common control and groups; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The group 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 bank loans and loans with entities under common control and groups, 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.

Bank loans and loans with entities under common control and groups are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

3

Turnover

The analysis of the group's revenue for the year from continuing operations is as follows:

2024
 £

2023
 £

Care fees

15,892,564

14,394,114

Other revenue

-

48,013

15,892,564

14,442,127

The analysis of the group's Turnover for the year by market is as follows:

2024
£

2023
£

UK

15,892,564

14,442,127

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2024
£

2023
£

Government grants

4,912

27,451

Sub lease rental income

33,105

24,353

Miscellaneous other operating income

4,443

31,549

42,460

83,353

5

Operating profit/(loss)

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

1,118,562

1,199,645

Amortisation expense

110,977

231,025

Operating lease expense - plant and machinery

96,667

86,185

Operating lease expense - other

36,988

-

Loss on disposal of property, plant and equipment

-

2,238,206

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

9,389,764

7,449,179

Social security costs

855,967

618,527

Pension costs, defined contribution scheme

209,388

157,231

10,455,119

8,224,937

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
 No.

2023
 No.

Management

1

1

Administration and support

25

22

Nursing staff

353

343

379

366

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

146,621

150,912

Of the remuneration above a total of £146,621 (2023 - £Nil), including £Nil (2023 - £Nil) of contributions paid to money purchase scheme, were recharged to entities under common control.

8

Auditor's remuneration

2024
 £

2023
 £

Audit of these financial statements

4,296

3,581

Audit of the financial statements of subsidiaries of the company pursuant to legislation

16,692

15,015

20,988

18,596

Other fees to auditors

Taxation compliance services

-

3,685

All other non-audit services

10,796

9,030

10,796

12,715

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024


 

9

Other interest receivable and similar income

2024
 £

2023
 £

Interest income on bank deposits

21,491

18,050

Interest on loans to entities under common control

697,823

570,691

719,314

588,741

10

Interest payable and similar charges

2024
£

2023
£

Interest on bank overdrafts and borrowings

2,030,004

1,530,005

Interest on loans from entities under common control

259,837

233,935

2,289,841

1,763,940

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

-

164,923

UK corporation tax adjustment to prior periods

(42,978)

(14,665)

(42,978)

150,258

Deferred taxation

Arising from origination and reversal of timing differences

346,792

66,894

Tax expense in the income statement

303,814

217,152

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 22.01%).

The differences are reconciled below:

2024
£

2023
£

Loss before tax

(806,166)

(2,378,117)

Corporation tax at standard rate

(201,542)

(523,424)

Decrease in UK and foreign current tax from adjustment for prior periods

(42,978)

-

Tax increase from effect of capital allowances and depreciation

-

28,300

Effect of revenues exempt from taxation

357,458

-

Effect of expense not deductible in determining taxable profit (tax loss)

140,906

725,973

Effect of tax losses

(310)

-

Tax increase from effect of unrelieved tax losses carried forward

50,280

-

Deferred tax credit from unrecognised tax loss or credit

-

(13,129)

Deferred tax credit from unrecognised temporary difference from a prior period

-

(1,535)

Deferred tax expense relating to changes in tax rates or laws

-

8,003

Decrease from effect of tax incentives

-

(7,036)

Total tax charge

303,814

217,152

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital

-

708,731

Deferred tax on revalued properties

-

5,027,390

Other short term timing differences

5,128

-

5,128

5,736,121

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

2023

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital

-

360,508

Deferred tax on revalued properties

-

2,819,814

Other short term timing differences

3,697

-

3,697

3,180,322

Company

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital

-

333,775

Deferred tax on revalued properties

-

2,689,988

-

3,023,763

2023

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital

-

27,887

Deferred tax on revalued properties

-

1,510,714

-

1,538,601

Tax relating to items recognised in other comprehensive income or equity - group

2024
£

2023
£

Deferred tax increase/(decrease) related to items recognised as items of other comprehensive income

2,265,422

(1,230,707)

Tax relating to items recognised in other comprehensive income or equity - company

2024
£

2023
£

Deferred tax related to items recognised as items of other comprehensive income

1,137,831

(768,859)

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

12

Intangible assets

Group

Goodwill
 £

Software
 £

Total
£

Cost or valuation

At 1 October 2023

3,277,780

194,010

3,471,790

Additions acquired separately

-

360,863

360,863

At 30 September 2024

3,277,780

554,873

3,832,653

Amortisation

At 1 October 2023

3,277,780

69,751

3,347,531

Amortisation charge

-

110,977

110,977

At 30 September 2024

3,277,780

180,728

3,458,508

Carrying amount

At 30 September 2024

-

374,145

374,145

At 30 September 2023

-

124,259

124,259

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

13

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Assets under course of construction
 £

Total
£

Cost or valuation

At 1 October 2023

30,753,929

1,084,456

210,897

1,376,776

33,426,058

Additions

291,627

658,377

9,944

5,317,759

6,277,707

Disposals

(10,506)

(500,621)

(23,247)

-

(534,374)

Revaluations

8,188,532

-

-

-

8,188,532

At 30 September 2024

39,223,582

1,242,212

197,594

6,694,535

47,357,923

Depreciation

At 1 October 2023

1,409,717

419,647

66,565

-

1,895,929

Charge for the year

584,697

490,481

43,384

-

1,118,562

Eliminated on disposal

(34)

(500,621)

(23,247)

-

(523,902)

Revaluations

(1,994,380)

-

-

-

(1,994,380)

At 30 September 2024

-

409,507

86,702

-

496,209

Carrying amount

At 30 September 2024

39,223,582

832,705

110,892

6,694,535

46,861,714

At 30 September 2023

29,344,212

664,809

144,332

1,376,776

31,530,129

Included within the net book value of land and buildings above is £39,223,582 (2023 - £29,344,212) in respect of freehold land and buildings.
 

Revaluation

The group's freehold property was revalued on 16 December 2024. An independent valuer was not involved. The basis of this valuation was value in existing use, which is considered by the Directors to approximate to fair value. The name and qualification of the independent valuer is Knight Frank, Chartered Surveyors, who is external to the group. Had this class of asset been measured on a historical cost basis, the carrying amount would have been £21,693,194 (2023 - £21,888,926).The Directors have assessed that the existing use value calculated by the independent valuer in the latest valuation described above represents the accurate fair value of the freehold properties as at 30 September 2024.
 

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Furniture, fittings and equipment

137,621

110,420

   

Restriction on title and pledged as security

Freehold land and buildings with a carrying amount of £39,223,582 (2023 - £29,344,212) has been pledged as security for the loans and borrowings included in creditors: amounts due within and after one year.

Company

Land and buildings
£

Properties under construction
 £

Total
£

Cost or valuation

At 1 October 2023

15,631,015

1,186,992

16,818,007

Additions

-

5,317,759

5,317,759

Disposals

(10,506)

-

(10,506)

Revaluations

4,378,141

-

4,378,141

At 30 September 2024

19,998,650

6,504,751

26,503,401

Depreciation

At 1 October 2023

704,223

-

704,223

Charge for the year

286,062

-

286,062

Eliminated on disposal

(34)

-

(34)

Revaluations

(990,251)

-

(990,251)

At 30 September 2024

-

-

-

Carrying amount

At 30 September 2024

19,998,650

6,504,751

26,503,401

At 30 September 2023

14,926,792

1,186,992

16,113,784

Included within the net book value of land and buildings above is £19,998,650 (2023 - £14,926,792) in respect of freehold land and buildings.
 

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Revaluation

The company's freehold property was revalued on 16 December 2024 by an independent valuer. The basis of this valuation was value in existing use, which is considered by the Directors to approximate to fair value. The name and qualification of the independent valuer is Knight Frank, Chartered Surveyors, who is external to the group. Had this class of asset been measured on a historical cost basis, the carrying amount would have been £14,374,402 (2023 - £14,691,402). The Directors have assessed that the existing use value calculated by the independent valuer in the latest valuation described above represents the accurate fair value of the freehold properties as at 30 September 2024.

Restriction on title and pledged as security

Freehold land and buildings with a carrying amount of £19,998,650 (2023 - £14,926,792) has been pledged as security for the loans and borrowings included in creditors: amounts due within and after one year.

14

Investments

Group

Details of undertakings

Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Regal Investment (Holdings) Limited*

Kingsley House Clapham Road South Lowestoft NR32 1QS England & Wales

Ordinary shares

100%

100%

Regal Healthcare Properties Limited*

Kingsley House Clapham Road South Lowestoft NR32 1QS England & Wales

Ordinary shares

100%

100%

Spring Lodge Care Homes Limited

Kingsley House Clapham Road South Lowestoft NR32 1QS England & Wales

Ordinary shares

100%

100%

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Country Retirement & Nursing Homes (Holdings) Limited*

Kingsley House Clapham Road South Lowestoft NR32 1QS England & Wales

Ordinary shares

100%

100%

Country Retirement & Nursing Homes (Investments) Limited*

Kingsley House Clapham Road South Lowestoft NR32 1QS England & Wales

Ordinary shares

100%

100%

Country Retirement & Nursing Homes Limited*

Kingsley House Clapham Road South Lowestoft NR32 1QS England & Wales

Ordinary shares

100%

100%

* indicates direct investment of the company

Subsidiary undertakings

Regal Investment (Holdings) Limited

The principal activity of Regal Investment (Holdings) Limited is being a holding company.

Regal Healthcare Properties Limited

The principal activity of Regal Healthcare Properties Limited is the provision of residential care for the elderly.

Spring Lodge Care Homes Limited

The principal activity of Spring Lodge Care Homes Limited is being a dormant company.

Country Retirement & Nursing Homes (Holdings) Limited

The principal activity of Country Retirement & Nursing Homes (Holdings) Limited is being a holding company.

Country Retirement & Nursing Homes (Investments) Limited

The principal activity of Country Retirement & Nursing Homes (Investments) Limited is being a holding company.

Country Retirement & Nursing Homes Limited

The principal activity of Country Retirement & Nursing Homes Limited is the provision of residential care for the elderly.

Company

2024
£

2023
£

Investments in subsidiaries

10,703,113

10,703,113

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Subsidiaries

£

Cost or valuation

At 1 October 2023

10,703,113

At 30 September 2024

10,703,113

Carrying amount

At 30 September 2024

10,703,113

At 30 September 2023

10,703,113

15

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Other inventories

60,515

59,039

-

-

16

Debtors

 

Group

Company

2024
 £

2023
 £

2024
 £

2023
 £

Trade debtors

493,792

655,436

-

-

Amounts owed by group undertakings

-

-

7,706,756

6,897,996

Other debtors

10,176,513

9,027,579

9,054,580

8,373,678

Prepayments

468,647

530,582

223,775

264,455

Accrued income

240,964

228,476

-

-

Corporation tax debtor

-

38,748

-

-

 

11,379,916

10,480,821

16,985,111

15,536,129

Less non-current portion

(9,642,481)

(8,394,430)

(16,761,336)

(15,213,828)

Total current trade and other debtors

1,737,435

2,086,391

223,775

322,301

Details of non-current trade and other debtors

Group

£9,642,481 (2023 - £8,394,430) of amounts owed by entities under common control is classified as non current.

Company

£7,706,756 (2023 - £6,897,996) of amounts owed by group undertakings is classified as non current.

£9,054,580 (2023 - £8,315,832) of amounts owed by entities under common control is classified as non current.

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

17

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

2,089

1,472

-

-

Cash at bank

1,851,618

2,583,399

892,361

1,072,609

1,853,707

2,584,871

892,361

1,072,609

18

Creditors

   

Group

Company

Note

2024
 £

2023
 £

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

19

304,203

270,327

303,406

269,530

Trade creditors

 

253,423

273,461

-

-

Corporation tax

 

9,322

441,837

-

(13,039)

Social security and other taxes

 

370,218

464,587

11,894

253,600

Outstanding defined contribution pension costs

 

56,007

38,864

-

-

Other creditors

 

636,088

603,214

9,000

5

Accrued expenses

 

1,941,784

1,754,551

222,659

155,163

 

3,571,045

3,846,841

546,959

665,259

Due after one year

 

Loans and borrowings

19

28,800,000

22,800,000

28,800,000

22,800,000

Amounts owed to group undertakings

 

-

-

13,984,880

12,970,006

Amounts owed to entities under common control

 

3,394,055

2,729,260

643,276

722,681

 

32,194,055

25,529,260

43,428,156

36,492,687

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

19

Loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

28,800,000

22,800,000

28,800,000

22,800,000

 

Group

Company

2024
 £

2023
 £

2024
 £

2023
 £

Current loans and borrowings

HP and finance lease liabilities

34,673

797

33,876

-

Redeemable preference shares

269,530

269,530

269,530

269,530

304,203

270,327

303,406

269,530

Bank borrowings

The bank loans are denominated in pounds sterling, £, with a nominal interest rate of 3.1% above SONIA, and the final instalment is due on 23 February 2027. The carrying amount at year end is £28,800,000 (2023 - £22,800,000).

The bank loans and overdrafts are secured by a charge over the freehold properties owned by the group and the freehold property owned by Aragon Care Timperley Limited, a company under common control.

Other borrowings

Finance lease and hire purchase contracts with a carrying amount of £34,673 (2023 - £797) are secured on the assets to which they relate.

Company

Bank borrowings

The bank loans are denominated in pounds sterling, £, with a nominal interest rate of 3.1% above SONIA%, and the final instalment is due on 23 February 2027. The carrying amount at year end is £28,800,000 (2023 - £22,800,000).

The bank loans and overdrafts are secured by a charge over the freehold properties owned by the group and the freehold property owned by Aragon Care Timperley Limited, a company under common control.

Redeemable preference shares

The Redeemable Preference shares are redeemable at the option of the holder. They are redeemable at £1 per share and carry the same rights as the Ordinary shares with the exception that the shareholders are not entitled to attend or vote at meetings of the company except in specific circumstances. Dividends are declared separately and any distribution and redemption is at the discretion of the shareholders. Winding up value for redeemable preference share is £1.

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

20

Analysis of changes in net debt

Group

At 1 October 2023

Cash flow

Other non cash changes

At 30 September 2024

£

£

£

£

Cash at bank and on hand

2,584,871

(731,164)

-

1,853,707

Bank overdrafts

-

-

Cash and cash equivalents

2,584,871

(731,164)

-

1,853,707

Finance leases

(797)

(33,876)

-

(34,673)

Preference shares

(269,530)

-

-

(269,530)

Loans from connected companies

(2,729,260)

(664,795)

(3,394,055)

Bank loans

(22,800,000)

(3,996,996)

(2,003,004)

(28,800,000)

Net debt

(23,214,716)

(5,426,831)

(2,003,004)

(30,644,551)

21

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

34,673

797

34,673

797

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

30,577

47,106

Later than one year and not later than five years

10,809

38,986

41,386

86,092

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

22

Deferred tax and other provisions

Group

Deferred tax
£

Other provisions
£

Total
£

At 1 October 2023

3,176,625

73,326

3,249,951

Increase (decrease) in existing provisions

2,554,368

-

2,554,368

At 30 September 2024

5,730,993

73,326

5,804,319

Company

Deferred tax
£

Total
£

At 1 October 2023

1,538,601

1,538,601

Increase (decrease) in existing provisions

1,485,162

1,485,162

At 30 September 2024

3,023,763

3,023,763

23

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £209,388 (2023 - £157,231).

Contributions totalling £56,007 (2023 - £38,864) were payable to the scheme at the end of the year and are included in creditors.

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

24

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary A shares of £1 each

100

100

100

100

Ordinary B shares of £1 each

100

100

100

100

Ordinary C shares of £1 each

100

100

100

100

300

300

300

300

The company also holds Redeemable Preference shares. Refer to note 19 for more detail.

25

Contingent liabilities

Group

Included within the tangible fixed assets NBV of £46,861,714 is £137,621 (2023 - £110,420) relating to assets held under hire purchase agreements payable by an entity under common control. The depreciation charged to the financial statements in the year in respect of such assets amounted to £67,511 (2023 - £57,871).

Between 2014 and 2018, the group contributed to a Remuneration Trust, which was properly reflected in the audited accounts, that has been the subject of an ongoing HMRC enquiry. The directors have provided for their best estimate of the potential liability in the financial statements based on professional advice received and the information currently available to them. The outcome of the enquiry remains uncertain and is contingent on ongoing negotiations with HMRC, and there may be additional liabilities beyond those provided for.

26

Commitments

Group

Capital commitments

There is a commitment for the demolition and rebuild of Eversley Nursing Home.
The total amount contracted for but not provided in the financial statements was £2,407,089 (2023 - £Nil).

27

Related party transactions

Group

The group 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.

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Key management personnel

The directors do not consider any employees other than statutory directors to be key management personnel within the definition contained in FRS102. The directors' remuneration is disclosed in note 7.

Summary of transactions with key management

Transactions with directors

2023

At 1 October 2022
£

Advances to director
£

Repayments by director
£

At 30 September 2023
£

Director 1

Loan account, including interest charged at 2.0%, repayable within less than 1 year

-

215,846

(215,846)

-

Summary of transactions with entities under common control

During the year the group 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.
 

Income and receivables from related parties

2023

Entities under common control
£

Amounts receivable from related party

36,686

Expenditure with and payables to related parties

2024

Entities under common control
£

Rendering of services

45,938

Charitable donations

23,565

69,503

Amounts payable to related party

-

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

2023

Entities under common control
£

Rendering of services

54,983

Property rent

28,813

83,796

Amounts payable to related party

-

Loans to related parties

2024

Entities under common control
£

At start of period

8,394,430

Advanced

15,250,954

Repaid

(14,002,903)

At end of period

9,642,481

2023

Entities under common control
£

At start of period

7,465,620

Advanced

4,787,499

Repaid

(3,858,689)

At end of period

8,394,430

Terms of loans to related parties

The loans with entities under common control 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.

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Loans from related parties

2024

Entities under common control
£

At start of period

2,729,260

Advanced

3,708,550

Repaid

(3,043,755)

At end of period

3,394,055

2023

Entities under common control
£

At start of period

1,387,911

Advanced

1,754,087

Repaid

(412,738)

At end of period

2,729,260

Terms of loans from related parties

The loans with entities under common control 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.

Company

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.

Transactions with directors

2023

At 1 October 2022
£

Advances to director
£

Repayments by director
£

At 30 September 2023
£

Director 1

Loan account, including interest charged at 2.0%, repayable within less than 1 year

-

215,846

(215,846)

-

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

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 to related parties

2024

Entities under common ownership
£

At start of period

8,315,832

Advanced

12,195,949

Repaid

(11,457,201)

At end of period

9,054,580

2023

Entities under common ownership
£

At start of period

7,465,620

Advanced

1,715,273

Repaid

(865,061)

At end of period

8,315,832

Terms of loans to related parties

The loans with entities under common control 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.

 

Regal Healthcare Holdings Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Loans from related parties

2024

Entities under common ownership
£

At start of period

722,681

Advanced

2,262,441

Repaid

(2,341,846)

At end of period

643,276

2023

Entities under common ownership
£

At start of period

381,046

Advanced

510,669

Repaid

(169,034)

At end of period

722,681

Terms of loans from related parties

The loans with entities under common control 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.

Transactions outside the course of normal business

During the 2023 year end £20,000 was advanced to a unconnected company which is used by one of the directors. At year end £13,692 (2023 - £16,680) remained due and is included in other debtors.

28

Parent and ultimate parent undertaking

The ultimate controlling party and immediate parent is The Thayan Trust by way of owning 77% of the total ordinary share capital.