Year Ended
Registration number:
Hestia Healthcare Limited
Contents
Balance Sheet |
|
Notes to the Unaudited Financial Statements |
Hestia Healthcare Limited
Balance Sheet
30 September 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
- |
( |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
( |
( |
|
Shareholders' deficit |
( |
( |
Hestia Healthcare Limited
Balance Sheet
30 September 2024
For the financial year ending 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
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
......................................... |
......................................... |
Company Registration Number: 06321543
Hestia Healthcare Limited
Notes to the Unaudited 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, although the entity operates a care home in Bedfordshire, England.
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.
Going concern
At the year end date, the company had net liabilities of £2,260,486 (2023: £1,152,944) and incurred a net loss for the year then ended of £1,107,542 (2023: £730,194).
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. Also, a large loan to cover the building costs for the new carehome is held with Coutts, and was drawn down towards the year end to fund the project.
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.
Hestia Healthcare Limited
Notes to the Unaudited 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 £2,343,839 (2023 - £2,370,736).
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 6 and 7.
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 £2,343,839 (2023 - £2,370,736).
Hestia Healthcare Limited
Notes to the Unaudited 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 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 provision of services in the ordinary course of the Company's activities.
Income relates to monies received for the provision of care home services and is recognised on a straight line basis over the period of residence.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 |
Freehold property |
2% straight line |
Fixtures, fittings & equipment |
20-100% straight line |
Hestia Healthcare Limited
Notes to the Unaudited Financial Statements
Year Ended 30 September 2024
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% Straight Line |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
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.
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Loans with group and connected companies; 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 and connected companies, 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 and connected companies 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
Hestia Healthcare Limited
Notes to the Unaudited Financial Statements
Year Ended 30 September 2024
Intangible assets |
Goodwill |
Total |
|
Cost or valuation |
||
At 1 October 2023 |
|
|
At 30 September 2024 |
|
|
Amortisation |
||
At 1 October 2023 |
|
|
Amortisation charge |
|
|
At 30 September 2024 |
|
|
Carrying amount |
||
At 30 September 2024 |
|
|
At 30 September 2023 |
|
|
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Assets under course of construction |
Total |
|
Cost or valuation |
||||
At 1 October 2023 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
( |
- |
( |
At 30 September 2024 |
|
|
|
|
Depreciation |
||||
At 1 October 2023 |
|
|
- |
|
Charge for the year |
|
|
- |
|
Eliminated on disposal |
- |
( |
- |
( |
At 30 September 2024 |
|
|
- |
|
Carrying amount |
||||
At 30 September 2024 |
|
|
|
|
At 30 September 2023 |
|
|
|
|
Hestia Healthcare Limited
Notes to the Unaudited Financial Statements
Year Ended 30 September 2024
Included within the net book value of land and buildings above is £2,343,839 (2023 - £2,370,736) in respect of freehold land and buildings.
Revaluation
The company's freehold property was revalued on
Debtors |
2024 |
2023 |
|
Trade debtors |
|
- |
Other debtors |
|
|
Prepayments |
|
|
Total current trade and other debtors |
|
|
Creditors |
Note |
2024 |
2023 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
- |
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
|
|
||
Due after one year |
|||
Amounts owed to entities under common control |
|
|
Hestia Healthcare Limited
Notes to the Unaudited Financial Statements
Year Ended 30 September 2024
Loans and borrowings |
Current loans and borrowings
2024 |
2023 |
|
Bank borrowings |
- |
|
Bank overdrafts |
|
- |
|
|
Bank loans and overdrafts are secured by a charge over the freehold properties owned by the company.
Bank borrowings
|
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £1 each |
10 |
10 |
10 |
10 |
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:
Other related parties £48,039,615 (2023 - £37,017,997)
Hestia Healthcare Limited
Notes to the Unaudited Financial Statements
Year Ended 30 September 2024
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 from related parties
2024 |
Entities under common control |
At start of period |
|
Advanced |
|
Repaid |
( |
At end of period |
|
|
2023 |
Entities under common control |
At start of period |
|
Advanced |
|
Repaid |
( |
At end of period |
|
|
Terms of loans from related parties
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate controlling party is