Company registration number SC669687 (Scotland)
DAWNSIDE CARE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
DAWNSIDE CARE GROUP LIMITED
Company Information
Directors
Mr G K Donaldson
Mr A Donaldson
Company number
SC669687
Registered office
Geddes House
Kirkton North
Livingston
Scotland
EH54 6GU
Auditor
William Duncan + Co (Audit) Limited
Ellersley House
30 Miller Road
Ayr
KA7 2AY
Bankers
Virgin Money
Cairngorm House
Almondvale Blvd
Livingston
EH54 6QL
Accountants and Tax Advisors
Condie & Co Limited trading as Dains
10 Abbey Park Place
Dunfermline
Fife
KY12 7NZ
Solicitors
Young & Partners LLP
1 George Square
Castle Brae
Dunfermline
Fife
KY11 8QF
DAWNSIDE CARE GROUP LIMITED
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group statement of financial position
8
Company statement of financial position
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 28
DAWNSIDE CARE GROUP LIMITED
Strategic Report
For The Year Ended 30 September 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Fair review of the business
The principal activities of the group during the year were the purchase and development of property, the rental of property and the operation of care homes. The group will continue to consolidate relationships with existing clients. The directors will continue to look for opportunities that will be beneficial to the group. On 17 October 2022 an application was made to strike Merithelp Limited off the register. The company was dissolved on 24 January 2023.
Principal risks and uncertainties
The directors continually assess the risks which could impact on the group's performance. Steps are taken to understand and evaluate these risks and to mitigate against them in order to achieve the directors' long term goal of creating a sustainable business which delivers benefits to all stakeholders. The most fundamental risks face by the group are:
UK economic growth which challenges the groups' own growth potential
To meet customers' demands in challenging and changing sectors
To attract, train and motivate suitably qualified staff
To continue to maintain high health and safety standards
To comply with regulations which, in extreme cases, could result in the removal of a care home's
registration
To meet quality standards resulting in an operating embargo on new admissions
To achieve budgeted occupancy levels
To achieve budgeted average fee rates
To maximise labour efficiencies
Risk management
The risk management framework of the group is established within Dawnside Care Group Limited's overall risk management framework and relevant guidelines.
The board has ultimate responsibility for risk management and is required to approve the overall risk framework for the group, including risk policies, reviewing and approving the identification and prioritisation of all material risks facing the business, ensuring that arrangements are put in place to control these risks.
Key performance indicators
The key financial indicators used by the directors are detailed below:
2024 2023
Turnover £5,899,456 £5,579,981
Gross Profit Margin 25% 25%
Net Profit Margin 11% 17%
Return on Capital Employed 10% 10%
Safety and health, environment and quality
The group recognises the importance of, and has policies and procedures in place to ensure its environment, health and safety requirements are met at all times.
Mr A Donaldson
Director
27 June 2025
DAWNSIDE CARE GROUP LIMITED
Directors' Report
For The Year Ended 30 September 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activities of the group during the year were the purchase and development of property, the rental of property and the operation of care homes.
The principal activity of the company was a holding company.
Results and dividends
The results for the year are set out on page 7.
£478,264 of ordinary dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr G K Donaldson
Mr A Donaldson
Auditor
William Duncan + Co (Audit) Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible 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 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 then 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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
DAWNSIDE CARE GROUP LIMITED
Directors' Report (Continued)
For The Year Ended 30 September 2024
- 3 -
On behalf of the board
Mr A Donaldson
Director
27 June 2025
DAWNSIDE CARE GROUP LIMITED
Independent Auditor's Report
To The Members Of Dawnside Care Group Limited
- 4 -
Opinion
We have audited the financial statements of Dawnside Care Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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).
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.
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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
DAWNSIDE CARE GROUP LIMITED
Independent Auditor's Report (Continued)
To The Members Of Dawnside Care Group Limited
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 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:
Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims;
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations;
Reviewing external regulatory bodies’ inspection reports;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
DAWNSIDE CARE GROUP LIMITED
Independent Auditor's Report (Continued)
To The Members Of Dawnside Care Group Limited
- 6 -
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.
Mr Stephen Bargh CA MAAT (Senior Statutory Auditor)
For and on behalf of William Duncan + Co (Audit) Limited
27 June 2025
Chartered Accountants
Statutory Auditor
30 Miller Road
Ayr
Ayrshire
KA7 2AY
DAWNSIDE CARE GROUP LIMITED
Group Statement Of Comprehensive Income
For The Year Ended 30 September 2024
- 7 -
Continuing
Discontinued
30 September
Continuing
Discontinued
30 September
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Turnover
3
5,899,456
-
5,899,456
5,579,981
-
5,579,981
Cost of sales
(4,430,423)
-
(4,430,423)
(4,195,690)
-
(4,195,690)
Gross profit
1,469,033
-
1,469,033
1,384,291
-
1,384,291
Administrative expenses
(616,515)
-
(616,515)
(623,677)
-
(623,677)
Other operating income
53
-
53
5,381
-
5,381
Exceptional items
4
-
-
-
(13,788)
138
(13,650)
Operating profit
5
852,571
-
852,571
752,207
138
752,345
Interest receivable and similar income
8
20,132
-
20,132
7,501
-
7,501
Amounts written off investments
9
(137,200)
-
(137,200)
390,964
-
390,964
Profit before taxation
735,503
-
735,503
1,150,672
138
1,150,810
Tax on profit
10
(217,494)
-
(217,494)
(196,435)
-
(196,435)
Profit for the financial year
518,009
-
518,009
954,237
138
954,375
Other comprehensive income
Revaluation of tangible fixed assets
175,000
Total comprehensive income for the year
693,009
954,375
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
DAWNSIDE CARE GROUP LIMITED
Group Statement Of Financial Position
As At 30 September 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,714,930
3,560,449
Investment properties
13
1,752,800
1,890,000
5,467,730
5,450,449
Current assets
Stocks
17
725
725
Debtors
18
2,403,224
2,443,639
Cash at bank and in hand
1,232,815
981,293
3,636,764
3,425,657
Creditors: amounts falling due within one year
19
(1,026,114)
(1,008,026)
Net current assets
2,610,650
2,417,631
Total assets less current liabilities
8,078,380
7,868,080
Provisions for liabilities
Deferred tax liability
20
88,616
93,060
(88,616)
(93,060)
Net assets
7,989,764
7,775,020
Capital and reserves
Called up share capital
22
9,164,589
9,164,589
Revaluation reserve
(422,500)
(597,500)
Other reserves
(5,383,808)
(5,383,808)
Profit and loss reserves
4,631,483
4,591,739
Total equity
7,989,764
7,775,020
The financial statements were approved by the board of directors and authorised for issue on 27 June 2025 and are signed on its behalf by:
27 June 2025
Mr A Donaldson
Director
Company registration number SC669687 (Scotland)
DAWNSIDE CARE GROUP LIMITED
Company Statement Of Financial Position
As At 30 September 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
5,384,610
5,384,610
Current assets
Debtors
18
819,605
848,707
Creditors: amounts falling due within one year
19
(28,332)
(24,438)
Net current assets
791,273
824,269
Net assets
6,175,883
6,208,879
Capital and reserves
Called up share capital
22
9,164,589
9,164,589
Profit and loss reserves
(2,988,706)
(2,955,710)
Total equity
6,175,883
6,208,879
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 £445,268 (2023 - £49,812 profit).
The financial statements were approved by the board of directors and authorised for issue on 27 June 2025 and are signed on its behalf by:
27 June 2025
Mr A Donaldson
Director
Company registration number SC669687 (Scotland)
DAWNSIDE CARE GROUP LIMITED
Group Statement Of Changes In Equity
For The Year Ended 30 September 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
9,164,589
(597,500)
(5,383,808)
3,637,364
6,820,645
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
-
954,375
954,375
Balance at 30 September 2023
9,164,589
(597,500)
(5,383,808)
4,591,739
7,775,020
Year ended 30 September 2024:
Profit for the year
-
-
-
518,009
518,009
Other comprehensive income:
Revaluation of tangible fixed assets
-
175,000
-
-
175,000
Total comprehensive income for the year
-
175,000
-
518,009
693,009
Dividends
11
-
-
-
(478,265)
(478,265)
Balance at 30 September 2024
9,164,589
(422,500)
(5,383,808)
4,631,483
7,989,764
DAWNSIDE CARE GROUP LIMITED
Company Statement Of Changes In Equity
For The Year Ended 30 September 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
9,164,589
(3,005,522)
6,159,067
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
49,812
49,812
Balance at 30 September 2023
9,164,589
(2,955,710)
6,208,879
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
445,268
445,268
Dividends
11
-
(478,264)
(478,264)
Balance at 30 September 2024
9,164,589
(2,988,706)
6,175,883
DAWNSIDE CARE GROUP LIMITED
Group Statement Of Cash Flows
For The Year Ended 30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
911,042
(209,638)
Income taxes paid
(179,950)
(74,747)
Net cash inflow/(outflow) from operating activities
731,092
(284,385)
Investing activities
Purchase of tangible fixed assets
(21,437)
-
Interest received
20,131
7,500
Net cash (used in)/generated from investing activities
(1,306)
7,500
Financing activities
Dividends paid to equity shareholders
(478,264)
Net cash used in financing activities
(478,264)
-
Net increase/(decrease) in cash and cash equivalents
251,522
(276,885)
Cash and cash equivalents at beginning of year
981,293
1,258,178
Cash and cash equivalents at end of year
1,232,815
981,293
DAWNSIDE CARE GROUP LIMITED
Company Statement Of Cash Flows
For The Year Ended 30 September 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
(121,728)
Investing activities
Dividends received
478,264
121,728
Net cash generated from investing activities
478,264
121,728
Financing activities
Dividends paid to equity shareholders
(478,264)
-
Net cash used in financing activities
(478,264)
-
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements
For The Year Ended 30 September 2024
- 14 -
1
Accounting policies
Company information
Dawnside Care Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Geddes House, Kirkton North, Livingston, Scotland, EH54 6GU.
The group consists of Dawnside Care Group Limited and all of its subsidiaries.
1.1
Accounting convention
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Dawnside Care Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
The consolidated group financial statements have been prepared under merger accounting which assumes that the group, headed by Dawnside Care Group Limited, has always been in existence.
All financial statements are made up to 30 September 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.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors continue to monitor performance and operations on an ongoing basis. The directors remain confident that the company can continue to operate for the next 12 months, especially given the trading performance to date and the balance sheet position. On this basis, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Turnover represents rental income receivable in the year and income receivable from the care services provided.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
nil
Leasehold improvements
10% straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Computer equipment
15% reducing balance
Motor vehicles
20% straight line
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 income statement.
1.7
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.8
Fixed asset investments
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.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Impairment of fixed assets
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of food purchases and consumables.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
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 statement of financial position 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.
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial assets
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.
Classification of financial liabilities
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
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.
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.
1.13
Equity instruments
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.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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
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 income statement, 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.
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Employee benefits
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
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.
2
Judgements and key sources of estimation uncertainty
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.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Operation of care homes
5,711,174
5,397,771
Rental of care homes and property
188,282
182,210
5,899,456
5,579,981
The whole of the turnover is attributable to the principal activities of the group wholly undertaken in the United Kingdom.
4
Exceptional item
2024
2023
£
£
Expenditure
Intercompany loan write off
-
13,650
-
13,650
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 19 -
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
41,957
48,457
Operating lease charges
91,998
91,998
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
18,384
23,616
Audit of the financial statements of the company's subsidiaries
20,503
17,817
38,887
41,433
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Operational staff
217
223
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,758,344
3,569,105
Social security costs
192,132
176,345
-
-
Pension costs
34,501
39,357
3,984,977
3,784,807
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 20 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
19,984
7,494
Other interest income
148
7
Total income
20,132
7,501
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
19,984
7,494
9
Amounts written off investments
2024
2023
£
£
Amounts (written off)/written back to investments held at fair value
(137,200)
390,964
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
221,938
179,802
Deferred tax
Origination and reversal of timing differences
(4,444)
16,633
Total tax charge
217,494
196,435
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:
2024
2023
£
£
Profit before taxation
735,503
1,150,810
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
183,876
218,654
Tax effect of expenses that are not deductible in determining taxable profit
34,213
2,550
Tax effect of income not taxable in determining taxable profit
(74,283)
Permanent capital allowances in excess of depreciation
24,596
Tax at marginal rate
(595)
24,918
Taxation charge
217,494
196,435
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 21 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
478,264
-
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 22 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 October 2023
3,325,000
64,839
148,701
253,190
71,295
12,232
3,875,257
Additions
19,607
1,830
21,437
Revaluation
175,000
175,000
At 30 September 2024
3,500,000
64,839
148,701
272,797
73,125
12,232
4,071,694
Depreciation and impairment
At 1 October 2023
57,199
55,179
156,076
34,122
12,232
314,808
Depreciation charged in the year
5,573
14,027
16,711
5,645
41,956
At 30 September 2024
62,772
69,206
172,787
39,767
12,232
356,764
Carrying amount
At 30 September 2024
3,500,000
2,067
79,495
100,010
33,358
3,714,930
At 30 September 2023
3,325,000
7,640
93,522
97,114
37,173
3,560,449
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 23 -
Land and buildings with a carrying amount of £3,500,000 have been included in the financial statements at directors' valuation and external valuations by DM Hall. The directors are of the opinion that the value at 30 September 2024 is a fair reflection of the market value.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2024
2023
£
£
Group
Cost
3,922,500
3,922,500
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 October 2023 and 30 September 2024
1,890,000
-
Net gains or losses through fair value adjustments
(137,200)
-
At 30 September 2024
1,752,800
-
In 2019 the commercial property was revalued using a fair open market valuation basis by DM Hall LLP. The residential property has been included in the financial statements at directors’ valuation. The directors are of the opinion that the value at 30 September 2024 is a fair reflection of the market value.
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
5,384,610
5,384,610
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
5,384,610
Carrying amount
At 30 September 2024
5,384,610
At 30 September 2023
5,384,610
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 24 -
15
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Dawnside Properties Ltd
Geddes House, Kirkton North, Livingston, EH54 6GU
Rental property
Ordinary
100.00
Livingston Care Home Ltd
Geddes House, Kirkton North, Livingston, EH54 6GU
Operation of care home
Ordinary
100.00
Banff Care Ltd
Geddes House, Kirkton North, Livingston, EH54 6GU
Operation of care home
Ordinary
100.00
16
Joint ventures
Details of joint ventures at 30 September 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Brooklea Developments Ltd
Geddes House, Kirkton North, Livingston, EH54 6GU
Rental of nursing home
Ordinary
50.00
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
725
725
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
504,345
772,231
Other debtors
1,862,708
1,637,609
819,605
848,707
Prepayments and accrued income
36,171
33,799
2,403,224
2,443,639
819,605
848,707
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 25 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
198,370
164,642
Corporation tax payable
221,783
179,795
Other taxation and social security
38,966
32,018
-
-
Other creditors
22,213
90,667
Accruals and deferred income
544,782
540,904
28,332
24,438
1,026,114
1,008,026
28,332
24,438
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
88,616
93,060
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
93,060
-
Credit to profit or loss
(4,444)
-
Liability at 30 September 2024
88,616
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,501
39,357
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.
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 26 -
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of 1p each
230,031,183
230,031,183
2,300,312
2,300,312
Ordinary B Shares of 1p each
456,396,532
456,396,532
4,563,965
4,563,965
Ordinary C Shares of 1p each
230,031,183
230,031,183
2,300,312
2,300,312
916,458,898
916,458,898
9,164,589
9,164,589
The issued "A" Ordinary shares, issued "B" Ordinary shares and issued "C" Ordinary shares rank pari passu with each other except that the director of the company may resolve to declare a dividend on one or more classes of share.
23
Operating lease commitments
Lessee
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:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
184,919
187,689
-
-
Between two and five years
735,984
735,984
-
-
In over five years
505,989
690,908
-
-
1,426,892
1,614,581
-
-
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 27 -
24
Related party transactions
Transactions with related parties
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Other related parties
-
134,562
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities with control, joint control or significant influence over the group
99,927
-
Other related parties
1,859,124
1,734,081
Company
Entities over which the company has control, joint control or significant influence
119,398
148,500
Other related parties
700,207
700,207
Other information
The group has taken advantage of Section 33.1A of FRS102 whereby only transactions which are not with wholly owned members of a group need to be disclosed.
All balances are interest free and repayable on demand.
During the period, the group was charged rent of £183,995 (2023: £183,995) by Brooklea Developments Limited, a company in which Dawnside Care Group Limited has joint control.
25
Directors' transactions
Description
% Rate
Opening balance
Closing balance
£
£
Mr G K Donaldson
-
74
74
74
74
The balance due to the director, which is included in other creditors, is interest free and repayable on demand.
DAWNSIDE CARE GROUP LIMITED
Notes To The Group Financial Statements (Continued)
For The Year Ended 30 September 2024
- 28 -
26
Controlling party
The company was under the control of the directors in the current period. No individual party had control over the company.
27
Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. This reserve includes a fair value reserve of which £532,964 (2023 - £532,964) is non-distributable.
Revaluation - This reserve records movement in the fair value of freehold land and buildings.
Other reserves - This reserve records the merger relief.
28
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
518,009
954,375
Adjustments for:
Taxation charged
217,494
196,435
Investment income
(20,132)
(7,501)
Depreciation and impairment of tangible fixed assets
41,956
48,456
Other gains and losses
137,200
(390,964)
Movements in working capital:
Decrease/(increase) in debtors
40,415
(1,082,374)
(Decrease)/increase in creditors
(23,900)
71,935
Cash generated from/(absorbed by) operations
911,042
(209,638)
29
Analysis of changes in net funds - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
981,293
251,522
1,232,815
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