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Redwalls Care Services Limited

Annual Report and Financial Statements
Year Ended 30 September 2024

Registration number: 00755609

 

Redwalls Care Services Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 11

 

Redwalls Care Services Limited

Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

210,978

206,867

Current assets

 

Stocks

5

2,691

1,923

Debtors (including £1,374,296 due after more than one year (2023 - £1,292,038))

6

1,576,793

1,434,124

Cash at bank and in hand

 

238,910

223,114

 

1,818,394

1,659,161

Creditors: Amounts falling due within one year

7

(384,998)

(450,607)

Net current assets

 

1,433,396

1,208,554

Total assets less current liabilities

 

1,644,374

1,415,421

Creditors: Amounts falling due after more than one year

7

(106,694)

(101,372)

Provisions for liabilities

(35,243)

(39,265)

Net assets

 

1,502,437

1,274,784

Capital and reserves

 

Called up share capital

9

500

500

Profit and loss account

1,501,937

1,274,284

Shareholders' funds

 

1,502,437

1,274,784

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

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

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

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

 
     

Company Registration Number: 00755609

 

Redwalls Care Services 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, United Kingdom.

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

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

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including Section 1A, and the Companies Act 2006. There are no material departures from FRS102.

Basis of preparation

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

Further information about the trading situation of the company can be found in the group accounts.

 

Redwalls Care Services Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Key accounting judgements and sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The key 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.

Intercompany loan interest
The business trades as part of a group. In addition to recharges of central costs and other trading settlements, management charges are raised to reflect the cost of funding arranged at a group level. Significant balances with group and other connected parties arise, these balances are due after more than one year. The lending company charges interest on these loans using a market rate for an equivalent third party loan.

The carrying value of amounts owed to/from group companies and entities under common control can be found in note 6 and 7.

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the 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.

Government grants

COVID-19 related grants do not have any imposed specified future performance-related conditions on the company, and therefore are recognised when the grant proceeds are received or receivable. The grant agreements do include specific criteria on what these funds can be spent on and therefore spending is monitored closely by management.

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.

 

Redwalls Care Services Limited

Notes to the Financial Statements

Year Ended 30 September 2024

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 company 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 profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

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

Tangible assets

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

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

Depreciation

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

Asset class

Depreciation method and rate

Leasehold buildings

2% Straight line

Furniture, fittings & equipment

20-100% Straight line

Stocks

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

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.

 

Redwalls Care Services 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;
• Loans with group companies and entities under common control; and
• Cash and bank balances.

All financial instruments are classified as basic.

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

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

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

Loans with group companies and 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

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 62 (2023 - 60).

 

Redwalls Care Services Limited

Notes to the Financial Statements

Year Ended 30 September 2024

4

Tangible assets

Leasehold buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 October 2023

126,053

217,309

343,362

Additions

28,319

29,816

58,135

Disposals

-

(52,280)

(52,280)

At 30 September 2024

154,372

194,845

349,217

Depreciation

At 1 October 2023

30,729

105,766

136,495

Charge for the year

3,088

50,936

54,024

Eliminated on disposal

-

(52,280)

(52,280)

At 30 September 2024

33,817

104,422

138,239

Carrying amount

At 30 September 2024

120,555

90,423

210,978

At 30 September 2023

95,324

111,543

206,867

Included within the net book value of land and buildings above is £120,555 (2023 - £95,324) in respect of leasehold land and buildings.
 

5

Stocks

2024
£

2023
£

Other inventories

2,691

1,923

 

Redwalls Care Services Limited

Notes to the Financial Statements

Year Ended 30 September 2024

6

Debtors

2024
 £

2023
 £

Trade debtors

49,977

28,047

Amounts owed by group undertakings

1,177,668

1,289,781

Other debtors

268,139

56,323

Prepayments

11,490

9,132

Accrued income

69,519

50,841

 

1,576,793

1,434,124

Less non-current portion

(1,374,296)

(1,292,038)

Total current trade and other debtors

202,497

142,086

Details of non-current trade and other debtors

£1,177,668 (2023 - £1,289,781) of amounts owed by group undertakings is classified as non current.

£196,628 (2023 - £2,257) of amounts owed by companies under common control, included in other debtors, is classified as non current.

 

Redwalls Care Services Limited

Notes to the Financial Statements

Year Ended 30 September 2024

7

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

8

-

396

Trade creditors

 

24,396

67,645

Social security and other taxes

 

32,260

30,157

Outstanding defined contribution pension costs

 

6,884

5,859

Other creditors

 

66,882

58,654

Accrued expenses

 

254,576

225,879

Corporation tax

-

62,017

 

384,998

450,607

Due after one year

 

Amounts owed to group companies

 

106,050

100,091

Amounts owed to connected companies

 

644

1,281

 

106,694

101,372

8

Loans and borrowings

2024
 £

2023
 £

Current loans and borrowings

Bank overdrafts

-

396

9

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

500

500

500

500

       
 

Redwalls Care Services Limited

Notes to the Financial Statements

Year Ended 30 September 2024

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £143 (2023 - £233). The financial commitments not provided for in the accounts represent operating leases.

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

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

Parent company and fellow subsidiaries £43,828,853 (2023 - £24,378,265)
Other related parties £4,534,543 (2023 - £15,961,847)

Included within the tangible fixed assets NBV of £210,978 is £23,011 (2023 - £1,965) relating to assets held under hire purchase agreements payable by Kingsley Care Homes Limited, a company under common control. The depreciation charged to the financial statements in the year in respect of such assets amounted to £1,987 (2023 - £7,903).

11

Related party transactions

The company has taken advantage of the exemption provided by FRS 102 to not disclose transactions entered in to 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.

Directors' remuneration

Summary of transactions with entities under common control

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

 

Redwalls Care Services Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Loans to related parties

2024

Entities under common control
£

At start of period

2,257

Advanced

225,727

Repaid

(31,356)

At end of period

196,628

2023

Entities under common control
£

At start of period

2,546

Advanced

122,915

Repaid

(123,204)

At end of period

2,257

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

1,281

Advanced

412

Repaid

(1,049)

At end of period

644

2023

Entities under common control
£

At start of period

969

Advanced

1,150

Repaid

(838)

At end of period

1,281

 

Redwalls Care Services 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.

12

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was James Barrett, who signed for and on behalf of PKF Francis Clark on 27 June 2025.

13

Relationship between entity and parents

Relationship between entity and parents

The parent of the smallest group in which these financial statements are consolidated is KCH (UK) Holdings Limited, incorporated in England and Wales.

The address of KCH (UK) Holdings Limited is:
Kingsley House
Clapham Road South
Lowestoft
Suffolk
NR32 1QS