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Althea Healthcare (Holdings) Limited

Annual Report and Consolidated Financial Statements
Year Ended 30 September 2024

Registration number: 07295250

 

Althea Healthcare (Holdings) Limited

Contents

Strategic Report

1 to 6

Directors' Report

7 to 8

Statement of Directors' Responsibilities

9

Independent Auditor's Report

10 to 14

Consolidated Profit and Loss Account

15

Consolidated Statement of Comprehensive Income

16

Consolidated Balance Sheet

17

Balance Sheet

18

Consolidated Statement of Changes in Equity

19

Statement of Changes in Equity

20

Consolidated Statement of Cash Flows

21

Notes to the Financial Statements

22 to 46

 

Althea 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 Althea Healthcare (Holdings) Limited operating group whilst references to the “Company” will refer to Althea Healthcare (Holdings) Limited itself.

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.

 

Althea 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.

Althea Healthcare (Holdings) Limited

The Group operates care facilities across the East of England, providing high quality residential & nursing care.

Principal activity

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

Fair review of the business

When analysing Althea Healthcare Holding’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 £4.5m. In comparison to the revenue results achieved last year, the Group has seen a healthy increase of £0.6m or 14.4%. 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 90% (2023: 87%), 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.

 

Althea Healthcare (Holdings) Limited

Strategic Report

Year Ended 30 September 2024

Group EBITDA for the year was £1,085,180 (2023: £908,391). Net Profit Before Tax, meanwhile, increased to £686,071 (2023: £596,012). This increase 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 Coutts & Co., with whom the Group has renewed its loan facilities during the financial year.

The Group’s Fixed Assets amount to £10.5m whilst Net Debt totals £0.5m, excluding intercompany loans.

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

2023

Average Occupancy

90%

87%

Turnover

£4,495,033

£3,930,250

EBITDA

£1,085,180

£908,391

Net Profit Before Tax

£686,071

£596,012

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.

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.

 

Althea Healthcare (Holdings) Limited

Strategic Report

Year Ended 30 September 2024

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.

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.

 

Althea Healthcare (Holdings) Limited

Strategic Report

Year Ended 30 September 2024

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.

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.

 

Althea Healthcare (Holdings) Limited

Strategic Report

Year Ended 30 September 2024

We maintain strong relationships with our banking partners and have once again secured long-term facilities, during the year, 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

   
     
 

Althea Healthcare (Holdings) Limited

Directors' Report

Year Ended 30 September 2024

The directors present their report and the consolidated financial statements 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 E D Thayan

Mr C D Thayan

Mr I Jarvis

Financial Instruments

Objectives & 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 Company’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.

 

Althea Healthcare (Holdings) Limited

Directors' Report

Year Ended 30 September 2024

Employees

The Group gives full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities. Employees of the Group who become disabled during the year of their employment are given appropriate training wherever possible. Disabled employees are given the same opportunities for career advancement as able-bodied employees.


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.

Disclosure of Information to the Auditor

Each member of the board has taken all necessary steps to make themselves aware of any relevant audit information and to establish that the Group’s auditor is aware of that information. The directors also confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

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

   
     
 

Althea 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.

 

Althea Healthcare (Holdings) Limited

Independent Auditor's Report to the Members of Althea Healthcare (Holdings) Limited

Opinion

We have audited the financial statements of Althea 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 profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

 

Althea Healthcare (Holdings) Limited

Independent Auditor's Report to the Members of Althea 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.

 

Althea Healthcare (Holdings) Limited

Independent Auditor's Report to the Members of Althea Healthcare (Holdings) Limited

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 9, 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.

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:

 

Althea Healthcare (Holdings) Limited

Independent Auditor's Report to the Members of Althea 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 the 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 company'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 used by management in making the 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.

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.

 

Althea Healthcare (Holdings) Limited

Independent Auditor's Report to the Members of Althea Healthcare (Holdings) Limited

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

 

Althea Healthcare (Holdings) Limited

Consolidated Profit and Loss Account

Year Ended 30 September 2024

Note

2024
 £

2023
 £

Turnover

3

4,495,033

3,930,250

Cost of sales

 

(3,272,914)

(2,918,018)

Gross profit

 

1,222,119

1,012,232

Administrative expenses

 

(543,232)

(392,976)

Other operating income

4

37,591

21,804

Operating profit

5

716,478

641,060

Other interest receivable and similar income

9

166,190

163,962

Interest payable and similar charges

10

(196,597)

(209,010)

Profit before tax

 

686,071

596,012

Taxation

11

(220,268)

308

Profit for the financial year

 

465,803

596,320

Profit attributable to:

 

Owners of the company

 

365,387

461,089

minority interests

 

100,416

135,231

 

465,803

596,320

The above results were derived from continuing operations.

The group has no recognised gains or losses for the year other than the results above.

 

Althea Healthcare (Holdings) Limited

Consolidated Statement of Comprehensive Income

Year Ended 30 September 2024

2024
 £

2023
 £

Profit for the year

465,803

596,320

Surplus on property, plant and equipment revaluation

-

3,232,919

Deferred tax movement on revalued properties

45,680

(772,343)

45,680

2,460,576

Total comprehensive income for the year

511,483

3,056,896

Total comprehensive income attributable to:

Owners of the company

395,840

2,306,521

minority interests

115,643

750,375

511,483

3,056,896

 

Althea Healthcare (Holdings) Limited

Consolidated Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

12

48,927

-

Tangible assets

13

10,442,046

10,559,564

 

10,490,973

10,559,564

Current assets

 

Stocks

15

23,646

20,129

Debtors (including £743,315 due after more than one year (2023 - £2,621,511))

16

1,356,752

3,258,495

Cash at bank and in hand

 

27,794

6,535

 

1,408,192

3,285,159

Creditors: Amounts falling due within one year

18

(1,721,679)

(4,566,417)

Net current liabilities

 

(313,487)

(1,281,258)

Total assets less current liabilities

 

10,177,486

9,278,306

Creditors: Amounts falling due after more than one year

18

(769,434)

(244,571)

Provisions for liabilities

22

(1,182,010)

(1,241,079)

Net assets

 

8,226,042

7,792,656

Capital and reserves

 

Called up share capital

24

166

166

Revaluation reserve

2,679,246

2,708,815

Profit and loss account

3,831,968

3,401,331

Equity attributable to owners of the company

 

6,511,380

6,110,312

minority interests

 

1,714,662

1,682,344

Shareholders' funds

 

8,226,042

7,792,656

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: 07295250

 

Althea Healthcare (Holdings) Limited

Company Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

14

1,578,109

1,578,109

Current assets

 

Debtors (including £1,408,626 due after more than one year (2023 - £1,393,723))

16

1,416,497

1,401,037

Creditors: Amounts falling due within one year

18

(1,055,638)

(1,107,630)

Net current assets

 

360,859

293,407

Total assets less current liabilities

 

1,938,968

1,871,516

Creditors: Amounts falling due after more than one year

18

(7,178)

(6,671)

Net assets

 

1,931,790

1,864,845

Capital and reserves

 

Called up share capital

24

166

166

Profit and loss account

1,931,624

1,864,679

Shareholders' funds

 

1,931,790

1,864,845

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 profit after tax for the financial year of £76,944 (2023 - profit of £68,200).

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: 07295250

 

Althea Healthcare (Holdings) Limited

Consolidated Statement of Changes in Equity

Year Ended 30 September 2024

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

Non-controlling interests - Equity
£

Total equity
£

At 1 October 2023

166

2,708,815

3,401,331

6,110,312

1,682,344

7,792,656

Profit for the year

-

-

365,387

365,387

100,416

465,803

Other comprehensive income

-

45,680

-

45,680

15,227

60,907

Total comprehensive income

-

45,680

365,387

411,067

115,643

526,710

Dividends

-

-

(9,999)

(9,999)

(83,325)

(93,324)

Transfer of realised profits

-

(75,249)

75,249

-

-

-

At 30 September 2024

166

2,679,246

3,831,968

6,511,380

1,714,662

8,226,042

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

Non-controlling interests - Equity
£

Total equity
£

At 1 October 2022

166

865,279

2,948,345

3,813,790

1,015,294

4,829,084

Profit for the year

-

-

461,089

461,089

135,231

596,320

Other comprehensive income

-

1,845,432

-

1,845,432

615,144

2,460,576

Total comprehensive income

-

1,845,432

461,089

2,306,521

750,375

3,056,896

Dividends

-

-

(9,999)

(9,999)

(83,325)

(93,324)

Transfer of realised profits

-

(1,896)

1,896

-

-

-

At 30 September 2023

166

2,708,815

3,401,331

6,110,312

1,682,344

7,792,656

 

Althea Healthcare (Holdings) Limited

Company Statement of Changes in Equity

Year Ended 30 September 2024

Share capital
£

Profit and loss account
£

Total
£

At 1 October 2023

166

1,864,679

1,864,845

Profit for the year

-

76,944

76,944

Dividends

-

(9,999)

(9,999)

At 30 September 2024

166

1,931,624

1,931,790

Share capital
£

Profit and loss account
£

Total
£

At 1 October 2022

166

1,806,478

1,806,644

Profit for the year

-

68,200

68,200

Dividends

-

(9,999)

(9,999)

At 30 September 2023

166

1,864,679

1,864,845

 

Althea Healthcare (Holdings) Limited

Consolidated Statement of Cash Flows

Year Ended 30 September 2024

Note

2024
 £

2023
 £

Cash flows from operating activities

Profit for the year

 

465,803

596,320

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

368,702

267,639

Finance income

9

(166,190)

(163,962)

Finance costs

10

196,597

209,010

Corporation tax expense

11

220,268

(308)

 

1,085,180

908,699

Working capital adjustments

 

Increase in stocks

15

(3,517)

(884)

Decrease/(increase) in debtors

16

1,901,743

(529,984)

(Decrease)/increase in creditors

18

(29,223)

124,330

Cash generated from operations

 

2,954,183

502,161

Corporation taxes paid

 

(328,164)

(173,942)

Net cash flow from operating activities

 

2,626,019

328,219

Cash flows from investing activities

 

Interest received

166,190

163,962

Acquisitions of tangible assets

(238,952)

(266,507)

Acquisition of intangible assets

12

(61,159)

-

Net cash flows from investing activities

 

(133,921)

(102,545)

Cash flows from financing activities

 

Interest paid

10

(196,597)

(209,010)

Repayment of bank borrowing

 

(2,705,781)

(103,906)

Proceeds from connected company borrowings

 

524,863

-

Dividends paid

(93,324)

(93,324)

Net cash flows from financing activities

 

(2,470,839)

(406,240)

Net increase/(decrease) in cash and cash equivalents

 

21,259

(180,566)

Cash and cash equivalents at 1 October

 

6,535

187,101

Cash and cash equivalents at 30 September

17

27,794

6,535

 

Althea 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.

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 Althea Healthcare group.

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 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.

The presentational currency is pounds sterling, £. This is the functional currency of the group because this is the currency of the primary economic enviroment in which the company operates. These financial statements are rounded to the nearest pound.

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Basis of consolidation

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

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.

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

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.

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 £10,231,221 (2023 - £10,360,915).

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 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 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 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 £10,231,221 (2023 - £10,360,915).

 

Althea Healthcare (Holdings) Limited

Notes to the 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 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 15 and 17.

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 £925,652 (2023 - £986,559).

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 sale of goods and 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.

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.

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

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

Assets under course of construction

Not depreciated

Motor vehicles

20% straight line

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.

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

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Dividends on equity securities are recognised in income when receivable.

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

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

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.

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans;
• Loans to entities under common control; 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 the 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, 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 to entities under common control 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 services

4,495,033

3,930,250

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

2024
£

2023
£

UK

4,495,033

3,930,250

 

Althea 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

10,000

4,522

Sub lease rental income

27,591

17,282

37,591

21,804

5

Operating profit

Arrived at after charging

2024
£

2023
£

Depreciation expense

356,470

267,638

Amortisation expense

12,232

1

Operating lease expense - plant and machinery

5,931

5,715

Operating lease expense - other

1,346

1,100

6

Staff costs

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

2024
£

2023
£

Wages and salaries

2,607,770

2,159,330

Social security costs

223,520

177,122

Pension costs, defined contribution scheme

58,680

51,494

2,889,970

2,387,946

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

3

2

Nursing staff

105

98

109

101

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

89,625

89,794

Contributions paid to money purchase schemes

25,593

24,488

115,218

114,282

Of the remuneration above a total of £55,605 (2023 - £100,000), including £Nil (2023 - £14,885) of contributions paid to money purchase scheme, were capitalised or recharged to entities under common control.

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

1

1

8

Auditor's remuneration

2024
£

2023
£

Audit of these financial statements

2,281

2,888

Audit of the financial statements of subsidiaries of the company

6,834

6,353

9,115

9,241


 

9

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

7,769

-

Interest on loans to entities under common control

158,421

163,962

166,190

163,962

10

Interest payable and similar charges

2024
£

2023
£

Interest on bank overdrafts and borrowings

123,230

177,481

Interest on loans from entities under common control

73,367

31,529

196,597

209,010

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

11

Taxation

Tax charged in the profit and loss account

2024
 £

2023
 £

Current taxation

UK corporation tax

227,069

144,904

UK corporation tax adjustment to prior periods

(8,639)

-

218,430

144,904

Deferred taxation

Arising from origination and reversal of timing differences

1,838

(145,212)

Tax expense/(receipt) in the income statement

220,268

(308)

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

The differences are reconciled below:

2024
£

2023
£

Profit before tax

686,071

596,012

Corporation tax at standard rate

171,518

131,182

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

(8,639)

-

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

57,389

49,593

Deferred tax expense relating to changes in tax rates or laws

-

4,568

Decrease from effect of tax incentives

-

(1,975)

Tax decrease from effect of indexation allowance on capital gains

-

(183,408)

Tax decrease from other tax effects

-

(268)

Total tax charge/(credit)

220,268

(308)

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital

-

233,316

Other short term timing differences

1,139

-

Deferred tax on revalued properties

-

925,652

1,139

1,158,968

2023

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital

-

231,400

Other short term timing differences

1,061

-

Deferred tax on revalued properties

-

986,559

1,061

1,217,959

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

2024
£

2023
£

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

45,680

579,257

12

Intangible assets

Group

Goodwill
 £

Software
 £

Total
£

Cost or valuation

At 1 October 2023

205,000

-

205,000

Additions acquired separately

-

61,159

61,159

At 30 September 2024

205,000

61,159

266,159

Amortisation

At 1 October 2023

205,000

-

205,000

Amortisation charge

-

12,232

12,232

At 30 September 2024

205,000

12,232

217,232

Carrying amount

At 30 September 2024

-

48,927

48,927

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

13

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Assets under course of construction
 £

Total
£

Cost or valuation

At 1 October 2023

10,360,915

171,129

54,564

10,586,608

Additions

113,935

107,513

17,504

238,952

Disposals

-

(98,258)

-

(98,258)

At 30 September 2024

10,474,850

180,384

72,068

10,727,302

Depreciation

At 1 October 2023

-

27,044

-

27,044

Charge for the year

243,629

112,841

-

356,470

Eliminated on disposal

-

(98,258)

-

(98,258)

At 30 September 2024

243,629

41,627

-

285,256

Carrying amount

At 30 September 2024

10,231,221

138,757

72,068

10,442,046

At 30 September 2023

10,360,915

144,085

54,564

10,559,564

Included within the net book value of land and buildings above is £10,231,221 (2023 - £10,360,915) in respect of freehold land and buildings.
 

Revaluation

The group's freehold property was revalued on 24 October 2023 . An independent valuer was not involved. The basis of this valuation was at existing use value, which is considered by the Directors to approximate to fair value. The name and qualification of the independent valuer is Colliers International, Chartered Surveyors, who is external to the group. Had this class of asset been measured on a historical cost basis, their carrying amount would have been £5,869,905 (2023 - £5,899,268). 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.
 

 

Althea 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
£

Equipment

25,537

17,625

   

Restriction on title and pledged as security

Freehold land and buildings with a carrying amount of £10,231,221 (2023 - £10,360,915) 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

Althea Healthcare Limited*

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

Ordinary shares

75%

75%

Althea Healthcare Investments Limited

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

Ordinary shares

100%

100%

* indicates direct investment of the company

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Subsidiary undertakings

Althea Healthcare Limited

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

Althea Healthcare Investments Limited

The principal activity of Althea Healthcare Investments Limited is being a dormant company.

Company

2024
£

2023
£

Investments in subsidiaries

1,578,109

1,578,109

Subsidiaries

£

Cost or valuation

At 1 October 2023

1,578,109

At 30 September 2024

1,578,109

Provision

Carrying amount

At 30 September 2024

1,578,109

At 30 September 2023

1,578,109

15

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Other inventories

23,646

20,129

-

-

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

16

Debtors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Trade debtors

 

142,400

220,187

-

-

Amounts owed by group undertakings

28

-

-

1,402,236

1,387,785

Other debtors

 

1,102,704

2,947,992

14,261

13,252

Prepayments

 

71,911

47,957

-

-

Accrued income

 

39,737

42,359

-

-

   

1,356,752

3,258,495

1,416,497

1,401,037

Less non-current portion

 

(743,315)

(2,621,511)

(1,408,626)

(1,393,723)

 

613,437

636,984

7,871

7,314

Details of non-current trade and other debtors

Group

£743,315 (2023 - £2,621,511) of amounts owed by entities under common control, included in other debtors, is classified as non current.

Company

£1,402,236 (2023 - £1,387,785) of amounts owed by group undertakings is classified as non current.

£6,390 (2023 - £5,938) of amounts owed by entities under common control, included in other debtors, is classified as non current.

17

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

390

187

-

-

Cash at bank

27,404

6,348

-

-

27,794

6,535

-

-

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

18

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

19

497,445

3,203,226

497,445

497,445

Trade creditors

 

83,093

66,152

-

-

Social security and other taxes

 

60,165

58,853

-

-

Outstanding defined contribution pension costs

 

11,922

12,020

-

-

Other creditors

 

621,730

731,247

526,432

588,837

Accruals

 

355,047

292,908

-

-

Corporation tax

11

92,277

202,011

31,761

21,348

 

1,721,679

4,566,417

1,055,638

1,107,630

Due after one year

 

Amounts owed to entities under common control

 

769,434

244,571

7,178

6,671

19

Loans and borrowings

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

-

2,705,781

-

-

Redeemable preference shares

497,445

497,445

497,445

497,445

497,445

3,203,226

497,445

497,445

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Bank borrowings

The first bank loan is denominated in pounds sterling, £, with a nominal interest rate of 2.35% above LIBOR, and the final instalment was paid on 31 January 2024. The carrying amount at year end is £Nil (2023 - £2,705,781).

The bank loans are secured by a charge over the freehold properties owned by the group and the freehold property owned by a company under common control. A debenture over the whole assets of the group is also in place.

Redeemable preference shares

The Redeemable Preference shares are redeemable at the option of the holder, however the amount of preference shares that can be redeemed by a single holder is capped at £250,000 per annum unless by agreement with the company and with the prior consent of the ordinary shareholders. 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. Winding up value for redeemable preference share is £1.

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

6,535

21,259

-

27,794

Bank overdrafts

-

-

-

-

Cash and cash equivalents

6,535

21,259

-

27,794

Finance leases

-

-

-

-

Loans to connected companies

(244,571)

(524,863)

(769,434)

Redeemable preference shares

(497,445)

-

(497,445)

Bank loans

(2,705,781)

2,705,781

-

Net debt

(3,196,691)

2,727,040

-

(469,651)

21

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

380

380

Later than one year and not later than five years

222

602

602

982

The amount of non-cancellable operating lease payments recognised as an expense during the year was £7,277 (2023 - £6,815).

 

Althea 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

1,216,898

24,181

1,241,079

Increase (decrease) in existing provisions

(59,069)

-

(59,069)

At 30 September 2024

1,157,829

24,181

1,182,010

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 £58,680 (2023 - £51,494).

Contributions totalling £11,922 (2023 - £12,020) were payable to the scheme at the end of the year and are included in creditors.

24

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £1 each

8

8

8

8

Ordinary 'A' shares of £0.01 each

7,500

75.00

7,500

75.00

Ordinary 'B' shares of £0.01 each

7,500

75.00

7,500

75.00

Ordinary 'C' shares of £1 each

8

8

8

8

 

15,016

166

15,016

166

25

Minority interests

The minority interests relate to:

Althea Healthcare Limited of which 25% (2023 - 25%) of the voting rights are held outside of the group.


 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

26

Dividends

Interim dividends paid

   

2024
£

 

2023
£

Interim dividend of £33.33 per each Ordinary B shares of Althea Healthcare Limited share

 

93,324

 

93,324

         

Some shareholders waived their right to the declared dividend.

27

Contingent liabilities

Group

The group 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. At the balance sheet date amounted to:

Other related parties £48,363,396 (2023 - £37,634,331)

Included within the tangible fixed assets net book value of £10,442,046 is £25,537 (2023 - £17,625) 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 £9,592 (2023 - £13,070).

28

Related party transactions

Group

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. The directors also redeemed preference shares in the year totalling £Nil (2023 - £Nil).

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Transactions with directors

2024

At 1 October 2023
£

Advances to director
£

Repayments by director
£

At 30 September 2024
£

Director 1

Loan account, including interest charged at 3%, repayable within less than 1 year

(588,838)

78,977

(16,571)

(526,432)

Director 2

Interest free, unsecured and repayable on demand

206,900

44,775

-

251,675

2023

At 1 October 2022
£

Advances to director
£

Repayments by director
£

At 30 September 2023
£

Director 1

Loan account, including interest charged at 3%, repayable within less than 1 year

(650,984)

78,923

(16,777)

(588,838)

Director 2

Interest free, unsecured and repayable on demand

171,000

35,900

-

206,900

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.

Summary of transactions with common control

During the year the group entered into various transactions, in the ordinary course of business. Transactions entered into, and trading balances outstanding at the year end, are as shown below. Purchases between related parties are made at normal market prices. Outstanding balances with entities are unsecured, interest bearing and cash settled.
 

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Loans to related parties

2024

Entities under common control
£

At start of period

2,621,511

Advanced

462,471

Repaid

(2,340,667)

At end of period

743,315

2023

Entities under common control
£

At start of period

2,187,992

Advanced

1,622,424

Repaid

(1,188,905)

At end of period

2,621,511

Terms of loans to 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.

 

Althea 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

244,571

Advanced

826,380

Repaid

(301,517)

At end of period

769,434

2023

Entities under common control
£

At start of period

192,851

Advanced

270,235

Repaid

(218,515)

At end of period

244,571

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.

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Company

Transactions with directors

2024

At 1 October 2023
£

Advances to director
£

Repayments by director
£

At 30 September 2024
£

Director 1

Loan account, including interest charged at 3%, repayable within less than 1 year

(588,838)

78,977

(16,571)

(526,432)

2023

At 1 October 2022
£

Advances to director
£

Repayments by director
£

At 30 September 2023
£

Director 1

Loan account, including interest charged at 3%, repayable within less than 1 year

(650,984)

78,923

(16,777)

(588,838)

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 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.
 

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Loans to related parties

2024

Entities under group control
£

Entities under common control
£

At start of period

1,387,785

5,938

Advanced

119,930

13,874

Repaid

(105,479)

(13,332)

At end of period

1,402,236

6,480

2023

Entities under group control
£

Entities under common control
£

At start of period

1,379,607

5,116

Advanced

103,737

14,643

Repaid

(95,559)

(13,821)

At end of period

1,387,785

5,938

Terms of loans to 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.

Loans from related parties

2024

Entities under common control
£

At start of period

6,671

Advanced

507

At end of period

7,178

2023

Entities under common control
£

At start of period

6,264

Advanced

407

At end of period

6,671

 

Althea Healthcare (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 September 2024

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.

29

Parent and ultimate parent undertaking

The ultimate controlling party and the immediate parent is The Thayan Trust.