The directors present the strategic report for the year ended 31 December 2024.
2024 has seen Revenue, Profit and EBITDA increase as occupancy has reached “fully operational” status which is encouraging. It is important to state that these figures are not showing Vida’s full financial potential and subsequent efficiency strides have been made in order to increase these margins in 2025’s financials. High renovation and maintenance costs alongside extensive training have contributed to these issues both of which have been value engineered and will not be as high going forward.
Staffing across the group reached full capacity by the end of the year meaning agency use has dropped significantly. This has been bolstered by the investment in overseas staff whom have been sponsored to work with Vida and now make up approx. 24% of the workforce.
Operational standards have remained high with all kitchens receiving 5 star ratings and all homes remaining as rated “Outstanding” by the CQC.
Admissions and Marketing have now merged and have seen very positive results with occupancy rising to budgeted levels, fee levels remaining high and specialist care provision increasing. Vida is now recognised as a “niche” service focusing on complex care for residents living with advanced dementia. This means demand is high constantly as other local services do not provide the specialist services that Vida offers.
Most importantly, the quality of care has remained consistently high and the board would like to thank all staff members for their continued commitment.
Key performance indicators
The Group's key financial and other performance indicators during the year were as follows:
Unit 2024 2023
Turnover: £31,783,860 £29,092,789
Operating profit: £5,417,035 £4,615,344
EBITDA*: £6,408,240 £5,550,274
EBITDA* margin: 20.1% 19.1%
(EBITDA* includes exceptional item as set out in note 4)
Despite the significant cost inflation which has impacted most areas of the UK economy, occupancy rates have increased in the year, particularly in the new Vida Court, resulting in increased profitability in the year.
The balance sheet at the end of the year shows that the Group's financial position has strengthened, with the Group reporting a net asset position of £7,622,439 (2023 - £6,790,094).
The directors are satisfied with the performance of the Group in the period.
The group monitors the risks it faces at regular formal board meetings. The directors consider the following matters to be the principal risks and uncertainties affecting the group.
Damage to reputation as a result of significant safeguarding events could pose a significant risk to the business. Monitoring of staff, training and policies are regularly reviewed in order to minimise the chance of any problems arising.
Staffing shortages and rising utility and other overhead costs are having a significant impact on profitability and the group's ability to provide the best quality of service possible. The directors continually monitor remuneration packages to ensure the group remains competitive and is able to attract and retain the best people. Overheads are regularly reviewed by the directors to ensure costs are controlled as best as possible and that price increases to residents are kept to a minimum.
Borrowing costs
Over the past few months interest rates have risen significantly and this directly impacts the group, with the group's bank borrowings carrying variable rates of interest at a fixed percentage above the Bank of England Base Rate. The directors are keeping the position under review and will consider the options available when the borrowings fall due for renegotiation.
Promoting the success of the company
In accordance with section 172 of the Companies Act 2006, each of the directors acts in a way they consider, in
good faith, would promote the success of the Group for the benefit of its members as a whole. The directors have
taken into consideration, amongst other matters:
- the likely consequences of any decisions in the long term;
- the interests of the Group's employees;
- the need to foster the Group's relationships with suppliers, customers and others;
- the impact of the Group's operations on the community and environment;
- the desirability of the Group maintaining a reputation for high standards of care provision; and
- the need to act fairly between members of the Company.
The board acknowledges that every decision it makes will not necessarily result in a positive outcome for all of the
Group's stakeholders. By considering the Group's purpose, vision and values, together with the strategic priorities
and having a process in place for decision making, the Board does however, aim to make sure its decisions are
consistent.
Stakeholder engagement
The Board believes that considering its stakeholders in key business decisions is not only the right thing to do but
is fundamental to our ability to promote success of the Group. The directors consider the following to be the
Group's key stakeholders:
Employees
The strength of our business is built on the hard work, expertise and dedication of our employees. The key focus
of the Board includes employee health and wellbeing, personal development, pay and benefits. Further details
regarding employment policies of the Group are included in the Directors' Report.
Customers and suppliers
The primary focus of the business is to provide care of the highest quality to its residents and this is the core
principle of the Group. The Board seeks to ensure a high level of care is provided through the expert knowledge
and experience of our employees and the provision of high quality facilities at each of our care homes. Processes
are in place to ensure the knowledge and skills of our employees are kept up to date through provision of regular
training and development opportunities.
The Board recognises that relationships with suppliers are important to the Group's long-term success and the
wellbeing of it residents through provision of quality goods and services. Management works closely with key
suppliers to ensure feedback is acted upon and that strong relationships are maintained. The Board also seeks to
balance the benefit of maintaining these strong relationships along with the need to obtain value for money.
Communities
The Board supports the initiatives with regards to reducing the adverse impacts of the business on the
environment and engages with the communities in which we operate. Key areas of focus include how we can
support local causes and issues, create opportunities to recruit and develop local people and help to look after the
environment.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £2,026,367. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Objectives and policies
The financial risk management objectives of the group are to retain sufficient liquid funds to enable it to meet its
day-to-day requirements, minimise the group's exposure to fluctuating interest rates and match the repayment
schedule of any external borrowings or overdrafts with the future cash flows expected to arise from the group's
trading activities.
Price risk, credit risk, liquidity risk and cash flow risk
The group is exposed to a moderate level of price risk, credit risk, liquidity risk and cash flow risk. The group
manages these risks by financing its operations through retained profits, supplemented by long-term bank
borrowings where necessary to fund expansion or capital expenditure programmes.
The key management personnel of the group regularly engage with members of staff to discuss matters of current
interest and concern to the business.
Demand remains high in the local areas served by Vida Hall and Vida Grange and occupancy rates are expected to
remain high. Demand for places in the local area served by the group's latest care home, Vida Court, also remains
high and occupancy rates are expected to continue increasing until it reaches capacity. Increasing occupancy rates
should ensure the group will increase profitability in line with its long-term business plan.
As the parent company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as
a low energy user under these regulations and is not required to report on its emissions, energy consumption or
energy efficiency activities.
We have audited the financial statements of Vida Healthcare Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include compliance with health and safety regulations and the independent regulator of health and adult social care in England, the Care Quality Commission.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence and legal costs incurred; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,880,849 (2023 - £932,807 profit).
Vida Healthcare Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Vida Court, Beckwith Head Road, Harrogate, England, HG3 1RB.
The group consists of Vida Healthcare Ltd and all of its subsidiaries.
The principal places of business are:
Vida Hall: Station View, Harrogate, HG2 7JA
Vida Grange: Thirkhill Drive, Pannal, Harrogate, HG3 1FE
Vida Court: Beckwith Head Road, Harrogate, HG3 1RB
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Vida Healthcare Limited, as an individual entity, meets the definition of a qualifying entity per FRS 102 and has taken advantage of the exemption available in paragraph 1.12 of FRS 102 from presenting a company-only statement of cash flows. These consolidated financial statements include a consolidated statement of cash flows which include the cash flows of Vida Healthcare Limited.
The consolidated group financial statements consist of the financial statements of the parent company Vida Healthcare Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
In common with many businesses, the Group meets its working capital requirements using funding from its bankers. The directors have prepared profit and cash flow forecasts which show that the Group will be able to meet its liabilities as they fall due.
The directors' review of bank funding requirements and available facilities leads them to believe that it is appropriate to prepare the financial statements on a going concern basis.
Turnover comprises the fair value of the consideration received or receivable for the provision of services in
the ordinary course of the group's activities.
The group recognises revenue when the amount of revenue can be reliably measured; it is probable that
future economic benefits will flow to the entity; and the specific criteria have been met for each of the
group's activities.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received, if considered material to the financial statements.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The group depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management.
Judgement is applied by management when determining the residual values of tangible assets. When determining the residual value management aim to assess the amount that the group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life.
The carrying amount of tangible fixed assets at the reporting date was £31,446,370 (2022 - £32,168,833).
Judgement is involved in determining whether aged trade and other debtors are recoverable and the group makes an estimate of the recoverable value of amounts outstanding at the reporting date. When assessing impairment of trade and other debtors, management considers factors including the ageing profile and historical experience.
All revenue arose within the United Kingdom.
During the financial year ended 31 December 2024, Vida Hall Limited recognised an exceptional item amounting to £505,870 relating to the release of an accrual previously established for non-recurring property repairs.
Following a detailed reassessment during the current period, it was determined that the scope of remedial works, and associated cost estimates, were significantly reduced. As a result, the related accrual was released in part, resulting in a one-time gain recognised in the statement of profit or loss.
This income is considered exceptional and non-recurring in nature, and does not form part of the Group’s normal operating activities.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
During the year, retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.
The main rate of corporation tax increased to 25% from 1 April 2023 under the Finance Bill 2021. Deferred tax has been provided at the rates expected to be in place when the timing differences reverse.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The carrying value of land and buildings comprises:
Included within net book value of land and buildings above is £6,031,660 (2023 - £6,031,660) in respect of freehold land, which is not depreciated.
Details of the company's subsidiaries at 31 December 2024 are as follows:
The company has entered into finance leasing arrangements with its trading subsidiaries, Vida Grange Limited and Vida Court Limited, for the use of certain fixtures, fittings and equipment at the Vida Grange and Vida Court care homes. The lease at Vida Grange ran to 31 December 2023, at which point Vida Grange had the option to purchase the equipment for a residual value of £1. Interest was charged on the lease at 4.19% per annum.
The lease at Vida Court commenced in April 2022 and runs to April 2043, at which point Vida Court has the option to purchase the equipment for a residual value of £1. The lease is interest-free and so has been discounted at a market rate of interest, determined by the directors to be 5% per annum. The excess of the fair value of the equipment transferred over the present value of the discounted minimum lease payments has been accounted for as a capital contribution in the subsidiary and capitalised as part of the cost of investment in that company.
The group's bank borrowings relate to three loan facilities (Facility B, C and D) held under a facilities agreement entered into on 20 November 2019.
Facility B is a £15,500,000 term loan facility, which was set up to be used to refinance Facility A on completion of the Vida Court development. The facility is denominated in Pounds Sterling with a nominal interest rate of Bank of England Base Rate + 1.8%. The loan was drawn down in full on 29 April 2022, following completion and transfer of the Vida Court property, and is repayable in equal quarterly instalments commencing in March 2023, with a final balance of £13,691,669 falling due for repayment on 28 February 2025. The carrying amount of the loan at the year end is £13,792,406 (2023 - £14,466,668).
Facility C is denominated in Pounds Sterling with a nominal interest rate of Bank of England Base Rate + 1.8%. The loan is repayable in equal quarterly instalments, with a final balance of £1,024,024 falling due for repayment on 28 February 2025. The carrying amount of the loan at the year end is £1,031,558 (2023 - £2,168,525).
Facility D in denominated in Pounds Sterling with a nominal interest rate of Bank of England Base Rate +1.8%. The loan is repayable in equal quarterly instalments up to 28 February 2025, with a final repayment of £6,012,816 due on this date. The carrying amount of the loan at the year end is £6,057,056 (2023 - £6,452,317).
The loans are secured by a debenture incorporating a fixed charge against the group's freehold land and buildings and fixed and floating charges over all other assets of the group present and future.
Other loans
Other loans relate to directors' loans and are repayable on demand. During the year ended 31 December 2024 no interest was charged on these balances.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
All shares rank pari passu in all respects, except that on a sale or return of capital on liquidation or otherwise, the holders of the 'D', 'E' and 'F' Ordinary shares will only be entitled to a proportionate share of any proceeds once a set hurdle has been achieved, as defined within the Company's Articles of Association.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
In March 2025 bank loans and overdraft facilities were refinanced with Clydesdale Bank PLC, providing a long term financial partnership to support the strategic plans of the group.
Key management personnel
The key management personnel of the group are the directors. Details of directors' remuneration in the period is provided in note 7.
Dividends totalling £2,026,367 (2023 - £419,802) were paid in the year in respect of shares held by the company's directors.