Year Ended
Registration number:
C E Property Holdings Limited
Balance Sheet
30 September 2024
Note |
2024 |
2023 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Debtors (including £256,268 due after more than one year (2023 - £124,726)) |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
( |
( |
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Shareholders' deficit |
( |
( |
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
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Company Registration Number: 09479330
C E Property Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The business address is the same as the registered office address.
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.
Going concern
At the year end date, the company had net current liabilities of £113,713 (2023: £162,402) and net liabilities of £993,953 (2023: £899,750),
The directors believe, with the support of the parent company and the directors, the company has sufficient working capital to continue to trade for the foreseeable future.
Therefore the directors continue to adopt a going concern basis in preparing the financial statements. The financial statements do not include any adjustments that would result from any change in the company's circumstances such that the going concern basis would no longer be appropriate.
Prior period errors
The prior period adjustment is classification only due to the change in principal activity resulting in rental income being recognised in turnover rather than other operating income.
C E Property Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Key accounting judgements and sources of estimation uncertainty
In the application of the 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 judgements that have a significant impact on the financial statements are described below:
Existing use value
The Existing Use Value of each property is driven by current trading performance using EBITDA as the key parameter. Management have reviewed the EBITDA used in the original valuation against current year trade and budgeted results and concluded that it is still reflective of Existing Use Value. The carrying value of land and buildings is £1,809,706 (2023 - £1,849,939).
The key estimates that have a significant effect on the amounts recognised in the financial statements are described below:
Group recharges
Cost re-allocations are required in order to fairly reflect the cost of management services borne by group companies and entities under common control. These are based on judgemental estimates of the proportion of management time spent in areas of the business which are different from where the payroll cost is originally processed, and where joint contracts of employment are in place. The carrying value of amounts owed to/from group companies and entities under common control can be found in note 5 and 6.
Property valuations
The business invests in care homes and, in common with standard industry practice, has adopted a policy under FRS 102 of carrying these assets at Existing Use Value, which is considered by the directors to approximate to Fair Value as set out below. This is due to the expectation that a care home is the main value generating purpose of each site. Valuations are performed by professional valuation experts on a routine basis as required based on a multiple of earnings. The earnings used vary depending on the performance of the business with the multiples applied varying depending on factors such as the location, condition and market position of the asset. Given the variability of these factors the fair value of these assets is a judgemental estimate which will fluctuate over time. In an arm's length sale between willing parties the best price would still be Existing use value rather than Open Market Value. These assets are used through the group for trading purposes; they are not held by the company for their investment potential and no rent is charged. Consequently, they are not classed as investment properties under FRS 102. The carrying value of land and buildings is £1,809,706 (2023 - £1,849,939).
C E Property Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Intercompany loan interest
The business trades as part of a group. In addition to recharges of central costs and other trading settlements, management charges are raised to reflect the cost of funding arranged at a group level. Significant balances with group and other connected parties arise, these balances are due after more than one year. The lending 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 5 and 6.
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 provision of services in the ordinary course of the Company's activities.
Income from residents is recognised, as earned, through the provision of contracted services.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the 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.
Deferred tax movements on the timing differences of revalued properties are recognised in the revaluation reserve via other comprehensive income. Where the revaluation reserve is nil, the deferred tax movement is charged to the profit and loss.
Tangible assets
Tangible assets 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.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold buildings |
2% straight line |
Furniture, fittings and equipment |
20% straight line |
C E Property Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Financial instruments
Classification
• 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
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.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
C E Property Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 October 2023 |
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Additions |
- |
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Disposals |
- |
( |
( |
At 30 September 2024 |
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Depreciation |
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At 1 October 2023 |
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Charge for the year |
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Eliminated on disposal |
- |
( |
( |
At 30 September 2024 |
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Carrying amount |
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At 30 September 2024 |
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At 30 September 2023 |
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Included within the net book value of land and buildings above is £1,809,706 (2023 - £1,849,939) in respect of freehold land and buildings.
Revaluation
The fair value of the company's freehold property was revalued on
C E Property Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Debtors |
2024 |
2023 |
|
Amounts due from group undertakings |
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Other debtors |
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Prepayments |
|
- |
|
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Less non-current portion |
( |
( |
49,926 |
59,411 |
Details of non-current trade and other debtors
£256,268 (2023 - £124,726) of amounts due from group undertakings is classified as non current.
Creditors |
Note |
2024 |
2023 |
|
Due within one year |
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Loans and borrowings |
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Trade creditors |
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Accrued expenses |
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Due after one year |
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Amounts owed to group undertakings |
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Loans and borrowings |
Current loans and borrowings
2024 |
2023 |
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Bank overdrafts |
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Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £1 each |
1 |
1 |
1 |
1 |
C E Property Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Financial commitments, guarantees and contingencies |
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 £43,430,980 (2023 - £24,061,599)
Other related parties £4,534,543 (2023 - £15,961,847)
Related party transactions |
The company has taken advantage of the exemption provided by FRS102 to not disclose transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
Summary of transactions with entities under common control
Loans to related parties
2024 |
Entities under common control |
Advanced |
|
Repaid |
( |
At end of period |
- |
|
2023 |
Entities under common control |
Advanced |
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Repaid |
( |
At end of period |
- |
|
Terms of loans to related parties
C E Property Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Audit report |
Relationship between entity and parents |
Relationship between entity and parents
The parent of the smallest group in which these financial statements are consolidated is
The address of KCH (UK) Holdings Limited is:
Clapham Road South
Lowestoft
Suffolk
NR32 1QS