Company registration number 02935370 (England and Wales)
GAINFORD CARE HOMES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
GAINFORD CARE HOMES LIMITED
COMPANY INFORMATION
Directors
Mr I Khaliq
Ms S McAlear
Secretary
Ms L Kell
Company number
02935370
Registered office
Gainford House
Picktree Lane
Chester le Street
Co Durham
DH3 3SR
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
GAINFORD CARE HOMES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 37
GAINFORD CARE HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
The Group delivered a robust financial performance in 2024, marking another year of sustained growth and strategic execution. Revenue increased by 7.0% to £52.7 million (2023: £49.3 million, +4.0%), reflecting the Group’s continued market expansion and resilience amidst a competitive trading environment. Operating profit rose by 26.6% to £10.7 million (2023: £8.6 million, +20.0%), driven by improved operational leverage and cost efficiencies. Profit before tax recorded a notable increase of 34.7% to £11.3 million (2023: £8.4 million, +30.8%), underlining the Group’s strong financial discipline and effective margin management.
Overall, the Group’s performance demonstrates sound financial stewardship, operational excellence, and adaptability in navigating evolving market and regulatory conditions. The Board would like to express its sincere appreciation to the Directors, management team, and all staff for their continued dedication, professionalism, and significant contribution to this strong performance.
Principal risks and uncertainties
Economic downturn
The group acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of financial difficulty. Sales trends in its major markets are constantly reviewed to enable early action to be taken in the event of sales declining. The hotel operations operate in a service sector which is largely dependent upon individuals' surplus disposable income. The group manages this risk by entering into contracts which can guaranteе occupancy at their hotels, by developing the wedding function / conference side of the business and by strong marketing to specific groups of individuals with greater disposable income.
Competitor pressure
The market in which the group operates is considered to be relatively competitive, and therefore competitor pressure could result in losing sales to key competitors. The group manages this risk by maintaining strong relationships with its key customers. The hotel and leisure market and geographical locations within which the group operates are without doubt very competitive. The group faces pressure both from large leisure chains and also local boutique brands. The group manages this risk by continually seeking to enhance the service it offers, by providing quality product and services, by maintaining strong relationships with key customers and contacts and close monitoring over suppliers.
Reliance on key suppliers
The Group's purchasing activities could expose it to over reliance on certain suppliers and inflationary pricing pressure. The Group manages this risk ensuring there is enough depth in its supplier base and by seeking to find alternative suppliers where necessary.
Key performance indicators
Management use a range of performance measures to monitor and manage the business - the key ones being turnover, gross profit and profit before tax. These measures are clearly distinguishable in the Group profit and loss account.
Section 172(1) statement
The board of directors of Gainford Care Homes Limited consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company and the group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172 (1)(a-f) of the Act) in the decisions taken during the year ended 31 December 2024. Material decisions taken in the year include approval of individual entity budgets and strategies. Our growth strategy is designed to have a long term beneficial impact on all of our stakeholders: it is customer focused and also provides security and development opportunities for our employees, effective management of oursupply chain and enables us to deliver shareholder value whilst contributing and supporting our North East industry and communities.
GAINFORD CARE HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Mr I Khaliq
Director
30 June 2025
GAINFORD CARE HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the group is the operation of nursing and residential care for the elderly, child care and the operation of hotels, bars and leisure facilities.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr I Khaliq
Ms S McAlear
Financial instruments
Cash flow and liquidity risk
The group aims to mitigate risk by managing cash generated by its operations.
Interest rate risk
The group's interest income and expenses are affected by movement in interest rates. The group does not undertake any hedging activity.
Credit risk
The group has external debtors on which it undertakes assessments of its customers in order to manage credit risk where there is a likelihood of default.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
During the year, the policy providing employees with information about the group has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the group's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas.
GAINFORD CARE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Future developments
In line with the Group’s long-term strategy of sustainable growth through expansion and diversification, several strategic projects are currently progressing.
The Group is in the advanced stages of finalising the acquisition of a 60-bed care home, reinforcing its footprint in the healthcare sector. Additionally, land has been acquired at multiple locations across the North East for the development of new care homes. Planning approvals have been secured, with construction scheduled to commence in 2025.
A key component of the Group’s investment strategy is the £200 million mixed-use development at the historically acquired Newbridge Street site in Newcastle city centre. The project includes a 190-unit residential tower, a 200-bed hotel, commercial office space, and a public realm with restaurants, bars, and fitness facilities, aimed at contributing to the area’s regeneration.
To complement this, the Group is in the process of acquiring Croft House which is adjacent to the Newbridge site. Discussions are underway with planning engineers to explore its integration into the wider scheme, which could add a further connectivity to the project. Both major developments are currently under review by Newcastle City Council’s planning department.
Auditor
In accordance with the company's articles, a resolution proposing that Robson Laidler Accountants Limited be reappointed as auditor of the group will be put at a General Meeting.
Energy and carbon report
We have considered the recommendations of the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. Gainford Care Homes Group supports these recommendations and are committed to disclosing the relevant information which can be found below.
The kWh energy usage has been converted to a tonnes of carbon dioxide equivalent (tCO2e) using the government's published conversion factors.
During the year end 31 December 2024, the group recorded greenhouse gas emissions from:
Gas of 1,838.16 tonnes of CO2e per year (2023: 1,786.22 tonnes)
Purchased electricity of 802.45 tonnes of CO2e per year (2023: 1,006.34 tonnes)
Fleet mileage of 86.46 tonnes of CO2e per year (2023: 92.50 tonnes)
GAINFORD CARE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
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.
On behalf of the board
Mr I Khaliq
Director
30 June 2025
GAINFORD CARE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GAINFORD CARE HOMES LIMITED
- 6 -
Opinion
We have audited the financial statements of Gainford Care Homes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 31 December 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.
GAINFORD CARE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GAINFORD CARE HOMES LIMITED
- 7 -
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing system walkthroughs to ensure they are operating effectively. Analytical review and substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework, in which the company operates and how the company complies with that legal and regulatory framework.
inquired with management and those charged with governance about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud.
discussed with management and those charged with governance any non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud.
The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation significant, unusual transactions entered into outside the normal course of business.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
GAINFORD CARE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GAINFORD CARE HOMES LIMITED
- 8 -
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.
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.
Peter Charles BSc FCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited, Statutory Auditor
Accountants
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
30 June 2025
GAINFORD CARE HOMES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
52,743,839
49,273,370
Cost of sales
(28,929,237)
(27,844,232)
Gross profit
23,814,602
21,429,138
Administrative expenses
(14,307,566)
(13,510,995)
Other operating income
1,215,374
550,075
Operating profit
4
10,722,410
8,468,218
Interest receivable and similar income
8
1,617,695
1,239,460
Interest payable and similar expenses
9
(1,019,559)
(1,302,900)
Profit before taxation
11,320,546
8,404,778
Tax on profit
10
(3,624,171)
(2,083,248)
Profit for the financial year
7,696,375
6,321,530
Profit for the financial year is all attributable to the owners of the parent company.
GAINFORD CARE HOMES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit for the year
7,696,375
6,321,530
Other comprehensive income
Revaluation of tangible fixed assets
4,177,493
Cash flow hedges gain arising in the year
Tax relating to other comprehensive income
1,365,070
(456,911)
Other comprehensive income for the year
1,365,070
3,720,582
Total comprehensive income for the year
9,061,445
10,042,112
Total comprehensive income for the year is all attributable to the owners of the parent company.
GAINFORD CARE HOMES LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
178,338
293,338
Negative goodwill
13
(282,700)
(376,932)
Net goodwill
(104,362)
(83,594)
Total intangible assets
(104,362)
(83,594)
Tangible assets
14
122,423,122
123,725,442
Investment property
15
5,520,000
5,520,000
Investments
16
83,435
83,435
127,922,195
129,245,283
Current assets
Stocks
18
277,978
290,074
Debtors
19
2,709,542
2,393,656
Cash at bank and in hand
40,573,709
32,371,660
43,561,229
35,055,390
Creditors: amounts falling due within one year
20
(13,534,606)
(11,481,030)
Net current assets
30,026,623
23,574,360
Total assets less current liabilities
157,948,818
152,819,643
Creditors: amounts falling due after more than one year
21
(12,079,522)
(14,479,522)
Provisions for liabilities
Deferred tax liability
23
16,959,855
18,492,125
(16,959,855)
(18,492,125)
Net assets
128,909,441
119,847,996
Capital and reserves
Called up share capital
25
100
100
Revaluation reserve
26
68,384,804
68,703,086
Profit and loss reserves
60,524,537
51,144,810
Total equity
128,909,441
119,847,996
The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
30 June 2025
Mr I Khaliq
Director
Company registration number 02935370 (England and Wales)
GAINFORD CARE HOMES LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
58,904,447
60,434,763
Investment property
15
2,000,000
2,000,000
Investments
16
25,620,859
25,620,859
86,525,306
88,055,622
Current assets
Stocks
18
52,870
46,989
Debtors
19
1,889,801
1,271,537
Cash at bank and in hand
38,722,122
29,017,482
40,664,793
30,336,008
Creditors: amounts falling due within one year
20
(19,293,198)
(12,551,859)
Net current assets
21,371,595
17,784,149
Total assets less current liabilities
107,896,901
105,839,771
Creditors: amounts falling due after more than one year
21
(12,079,522)
(14,479,522)
Provisions for liabilities
Deferred tax liability
23
10,092,170
10,425,857
(10,092,170)
(10,425,857)
Net assets
85,725,209
80,934,392
Capital and reserves
Called up share capital
25
100
100
Revaluation reserve
26
40,242,534
40,827,660
Profit and loss reserves
45,482,575
40,106,632
Total equity
85,725,209
80,934,392
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 £4,375,193 (2023 - £2,940,897 profit).
The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
30 June 2025
Mr I Khaliq
Director
Company registration number 02935370 (England and Wales)
GAINFORD CARE HOMES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
100
66,563,933
44,578,551
111,142,584
Year ended 31 December 2023:
Profit for the year
-
-
6,321,530
6,321,530
Other comprehensive income:
Revaluation of tangible fixed assets
-
4,177,493
-
4,177,493
Tax relating to other comprehensive income
-
(456,911)
(456,911)
Total comprehensive income
-
3,720,582
6,321,530
10,042,112
Dividends
11
-
-
(1,336,700)
(1,336,700)
Transfers
-
(1,581,429)
1,581,429
-
Balance at 31 December 2023
100
68,703,086
51,144,810
119,847,996
Year ended 31 December 2024:
Profit for the year
-
-
7,696,375
7,696,375
Other comprehensive income:
Tax relating to other comprehensive income
-
1,365,070
1,365,070
Total comprehensive income
-
1,365,070
7,696,375
9,061,445
Transfers
-
(1,683,352)
1,683,352
-
Balance at 31 December 2024
100
68,384,804
60,524,537
128,909,441
GAINFORD CARE HOMES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
100
37,474,098
37,551,373
75,025,571
Year ended 31 December 2023:
Profit for the year
-
-
2,940,897
2,940,897
Other comprehensive income:
Revaluation of tangible fixed assets
-
4,961,742
-
4,961,742
Tax relating to other comprehensive income
-
(657,118)
(657,118)
Total comprehensive income
-
4,304,624
2,940,897
7,245,521
Dividends
11
-
-
(1,336,700)
(1,336,700)
Transfers
-
(951,062)
951,062
-
Balance at 31 December 2023
100
40,827,660
40,106,632
80,934,392
Year ended 31 December 2024:
Profit for the year
-
-
4,375,194
4,375,194
Other comprehensive income:
Tax relating to other comprehensive income
-
415,623
415,623
Total comprehensive income
-
415,623
4,375,194
4,790,817
Transfers
-
(1,000,749)
1,000,749
-
Balance at 31 December 2024
100
40,242,534
45,482,575
85,725,209
GAINFORD CARE HOMES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
15,584,431
12,987,785
Interest paid
(1,019,559)
(1,302,900)
Income taxes paid
(2,304,069)
(2,901,143)
Net cash inflow from operating activities
12,260,803
8,783,742
Investing activities
Purchase of tangible fixed assets
(3,389,532)
(1,588,612)
Proceeds from disposal of tangible fixed assets
115,992
151,346
Repayment of loans
(2,909)
2,821
Interest received
1,615,033
1,237,128
Dividends received
2,662
2,332
Net cash used in investing activities
(1,658,754)
(194,985)
Financing activities
Proceeds from new bank loans
-
16,879,522
Repayment of bank loans
(2,400,000)
(18,960,365)
Dividends paid to equity shareholders
(1,336,700)
Net cash used in financing activities
(2,400,000)
(3,417,543)
Net increase in cash and cash equivalents
8,202,049
5,171,214
Cash and cash equivalents at beginning of year
32,371,660
27,200,446
Cash and cash equivalents at end of year
40,573,709
32,371,660
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
1
Accounting policies
Company information
Gainford Care Homes Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Gainford House, Picktree Lane, Chester le Street, Co Durham, DH3 3SR.
The group consists of Gainford Care Homes 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 UK sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards, modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Gainford Care Homes Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised as follows:-
Care home and nursery fees receivable
Turnover represents' fees receivable (exempt from value added tax) which are recognised either under the terms of contracts with local authorities or under the terms of short term letting agreements.
Bar, hotel and leisure income
Bar and leisure outlet takings are recognised at point of sale excluding value added tax.
Hotel income is recognised at point of sale or booking and is exclusive of value added tax.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.7
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
2% straight line
Operational properties
2% straight line
Property improvements
10% straight line
Plant and equipment
10-20% straight line
Fixtures and fittings
20% straight line
Motor vehicles
25% 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 profit and loss account.
Freehold land is not depreciated.
1.8
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.
The methods and significant assumptions used to ascertain the fair value of £5,520,000 and fair value movement of £Nil included in the profit/loss for the year are as follows:
Investment property was valued on an open market basis on 31 December 2021 by Lambert Smith Hampton, a registered RICS valuer. In the opinion of the directors there has been no significant change in fair value since that date
1.9
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.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
1.12
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.
1.13
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 balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
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.
1.15
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.19
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements. If, in the future, such estimates and assumptions, which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and judgements will be modified as appropriate in the year in which the circumstances change.
The key assumptions concerning the future and other key sources of of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
The estimated useful lives of tangible fixed assets
The estimated fair value of the investment property
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Hotels
22,474,154
21,919,673
Care homes and nurseries
30,269,685
27,353,697
52,743,839
49,273,370
2024
2023
£
£
Turnover analysed by geographical market
UK
52,743,839
49,273,370
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 23 -
2024
2023
£
£
Other revenue
Interest income
1,615,033
1,237,128
Dividends receivable
2,662
2,332
Grants receivable
159,548
101,197
Rents receivable
1,032,470
446,087
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(159,548)
(101,197)
Depreciation of owned tangible fixed assets
4,581,492
4,408,844
Impairment of owned tangible fixed assets
-
421,272
Profit on disposal of tangible fixed assets
(5,632)
(151,346)
Amortisation of intangible assets
20,768
18,291
Operating lease charges
19,268
16,885
5
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
18,000
26,000
Audit of the financial statements of the company's subsidiaries
18,000
18,742
36,000
44,742
For other services
Taxation compliance services
-
3,500
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
6
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
Directors
2
2
2
2
Care home and nursery
666
696
616
644
Management
68
55
56
43
Bar, hotel and leisure
467
499
-
-
Total
1,203
1,252
674
689
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
22,811,092
21,387,624
14,796,445
13,602,365
Social security costs
1,699,935
1,629,337
1,239,173
1,213,509
Pension costs
359,592
349,235
267,351
252,012
24,870,619
23,366,196
16,302,969
15,067,886
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
127,699
117,272
Company pension contributions to defined contribution schemes
1,219
1,321
128,918
118,593
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,615,033
1,236,190
Other interest income
-
938
Total interest revenue
1,615,033
1,237,128
Other income from investments
Dividends receivable
2,662
2,332
Total income
1,617,695
1,239,460
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
1,013,104
1,190,357
Other interest
6,455
112,543
Total finance costs
1,019,559
1,302,900
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
3,801,410
2,802,884
Adjustments in respect of prior periods
(10,039)
(118,949)
Total current tax
3,791,371
2,683,935
Deferred tax
Origination and reversal of timing differences
(167,200)
(600,687)
Total tax charge
3,624,171
2,083,248
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 26 -
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
11,320,546
8,404,778
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
2,830,137
2,101,195
Tax effect of expenses that are not deductible in determining taxable profit
69,932
164,004
Tax effect of income not taxable in determining taxable profit
(666)
(583)
Adjustments in respect of prior years
(10,039)
(118,949)
Effect of change in corporation tax rate
-
(158,159)
Depreciation on assets not qualifying for tax allowances
896,815
691,673
Amortisation on assets not qualifying for tax allowances
5,192
4,754
Deferred tax
(167,200)
(600,687)
Taxation charge
3,624,171
2,083,248
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of freehold property
(1,365,070)
456,911
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
-
1,336,700
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
12
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
14
-
421,272
Recognised in:
Administrative expenses
-
421,272
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
13
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 January 2024 and 31 December 2024
1,150,004
(942,324)
207,680
Amortisation and impairment
At 1 January 2024
856,666
(565,392)
291,274
Amortisation charged for the year
115,000
(94,232)
20,768
At 31 December 2024
971,666
(659,624)
312,042
Carrying amount
At 31 December 2024
178,338
(282,700)
(104,362)
At 31 December 2023
293,338
(376,932)
(83,594)
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
The positive goodwill mainly relates to the acquisition of The County Hotel and the associated business.
The negative goodwill relates to the acquisition of Carewell (Health Care) Limited and the associated business in the year end 31 December 2017.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
14
Tangible fixed assets
Group
Freehold land and buildings
Operational properties
Property improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2024
59,213,231
58,463,571
16,821,828
4,084,914
3,352,344
675,015
142,610,903
Additions
2,598,026
150,732
127,166
141,112
255,582
116,914
3,389,532
Disposals
(196,621)
(196,621)
At 31 December 2024
61,811,257
58,614,303
16,948,994
4,226,026
3,607,926
595,308
145,803,814
Depreciation and impairment
At 1 January 2024
2,585,371
466,291
9,507,384
3,508,122
2,358,365
459,928
18,885,461
Depreciation charged in the year
1,282,858
1,102,863
1,685,394
158,841
265,840
85,696
4,581,492
Eliminated in respect of disposals
(86,261)
(86,261)
At 31 December 2024
3,868,229
1,569,154
11,192,778
3,666,963
2,624,205
459,363
23,380,692
Carrying amount
At 31 December 2024
57,943,028
57,045,149
5,756,216
559,063
983,721
135,945
122,423,122
At 31 December 2023
56,627,860
57,997,280
7,314,444
576,792
993,979
215,087
123,725,442
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
Company
Freehold land and buildings
Operational properties
Property improvements
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2024
629,258
58,445,512
6,350,313
236,826
65,661,909
Additions
150,732
66,068
9,468
226,268
Disposals
(90,379)
(90,379)
At 31 December 2024
629,258
58,596,244
6,416,381
155,915
65,797,798
Depreciation and impairment
At 1 January 2024
90,659
450,232
4,481,754
204,501
5,227,146
Depreciation charged in the year
7,555
1,102,863
633,300
8,748
1,752,466
Eliminated in respect of disposals
(86,261)
(86,261)
At 31 December 2024
98,214
1,553,095
5,115,054
126,988
6,893,351
Carrying amount
At 31 December 2024
531,044
57,043,149
1,301,327
28,927
58,904,447
At 31 December 2023
538,599
57,995,280
1,868,559
32,325
60,434,763
The carrying value of land and buildings comprises:
Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
120,785,539
122,128,695
58,727,555
60,402,438
Short leasehold
147,965
147,965
120,933,504
122,128,695
58,875,520
60,402,438
Included in the cost of freehold land and buildings is land of £213,991 (2023 £213,991) which is not depreciated.
Included in the cost of operational properties is land of £1,235,741 (2023 £1,235,741) which is not depreciated.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Tangible fixed assets
(Continued)
- 30 -
Group
Freehold land and buildings
The fair value of the company's land and buildings were revalued via a full valuation on 31 December 2021 by Lambert Smith Hampton, a RICS registered valuer. A desk top valuation was performed by Lambert Smith Hampton on 31 December 2023 which indicated that the value was not materially different to the carrying value.
Operational properties
The fair value of the company's operational properties were revalued via a full valuation on 31 December 2023 by CBRE, a RICS registered valuer.
Company
Operational properties
The fair value of the company's operational properties were revalued via a full valuation on 31 December 2023 by CBRE, a RICS registered valuer.
The revaluation surplus is disclosed in note 26.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Operational properties
Property improvements
2024
2023
2024
2023
£
£
£
£
Group
Cost
43,916,468
43,765,736
6,350,313
6,350,313
Accumulated depreciation
(2,971,657)
(2,044,803)
(4,829,211)
(4,427,951)
Carrying value
40,944,811
41,720,933
1,521,102
1,922,362
Company
Cost
17,958,904
17,808,172
6,350,313
6,350,313
Accumulated depreciation
(998,888)
(664,733)
(4,829,211)
(4,427,951)
Carrying value
16,960,016
17,143,439
1,521,102
1,922,362
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
15
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024 and 31 December 2024
5,520,000
2,000,000
Group
The historic cost of the investment property is £3,468,240 (2023 £3,468,240).
Company
The historic cost of the investment property is £1,310,000 (2023 £1,310,000).
16
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
17
25,537,424
25,537,424
Listed investments
83,435
83,435
83,435
83,435
83,435
83,435
25,620,859
25,620,859
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2024 and 31 December 2024
83,435
Carrying amount
At 31 December 2024
83,435
At 31 December 2023
83,435
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2024 and 31 December 2024
25,537,424
83,435
25,620,859
Carrying amount
At 31 December 2024
25,537,424
83,435
25,620,859
At 31 December 2023
25,537,424
83,435
25,620,859
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
17
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Gainford Hotels Limited
England and Wales
Operation of hotels and bars
Ordinary
100.00
Carewell (Health Care) Limited
England and Wales
Operation of a private nursing home for the elderly
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Gainford Hotels Limited
65,178,764
2,759,188
Carewell (Health Care) Limited
4,016,382
467,761
For the year ended 31 December 2024 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act relating to subsidiary companies:
Carewell (Health Care) Limited (company registration number: 02322360)
18
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
52,870
46,989
52,870
46,989
Finished goods and goods for resale
225,108
243,085
277,978
290,074
52,870
46,989
19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,693,102
1,454,018
1,356,234
1,133,133
Other debtors
407,804
133,074
334,201
31,672
Prepayments and accrued income
608,636
806,564
199,366
106,732
2,709,542
2,393,656
1,889,801
1,271,537
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
22
2,400,000
2,400,000
2,400,000
2,400,000
Trade creditors
1,915,217
1,505,943
587,766
449,940
Amounts owed to group undertakings
11,998,337
6,875,848
Corporation tax payable
3,732,960
2,245,658
1,977,754
1,190,651
Other taxation and social security
1,227,192
1,352,098
244,617
227,068
Other creditors
1,515,474
1,258,134
868,777
492,245
Accruals and deferred income
2,743,763
2,719,197
1,215,947
916,107
13,534,606
11,481,030
19,293,198
12,551,859
21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
22
12,079,522
14,479,522
12,079,522
14,479,522
22
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
14,479,522
16,879,522
14,479,522
16,879,522
Payable within one year
2,400,000
2,400,000
2,400,000
2,400,000
Payable after one year
12,079,522
14,479,522
12,079,522
14,479,522
Company and Group
The bank loan is secured by charges over the company's freehold property as well as the issued share capital of the company's subsidiary companies. The loan will be repaid through monthly instalments of £200,000.
The loan is denoted in sterling with an interest rate which is the aggregate of the applicable:
a) Margin; and
b) the Bank of England Base Rate
The final instalment is due in December 2028. The carrying amount at the year end is £14,479,522 (2023: £16,879,522).
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
23
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
3,318,450
3,486,248
Revaluation of freehold property
13,157,772
14,522,842
Revaluation of investment property
484,563
484,563
Short term timing differences
(930)
(1,528)
16,959,855
18,492,125
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
2,766,393
2,685,252
Revaluation of freehold property
7,153,277
7,568,900
Revaluation of investment property
172,500
172,500
Short term timing differences
-
(795)
10,092,170
10,425,857
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
18,492,125
10,425,857
(Credit)/charge to profit or loss
(167,200)
81,936
Credit to other comprehensive income
(1,365,070)
(415,623)
Liability at 31 December 2024
16,959,855
10,092,170
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
359,592
349,235
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.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 35 -
25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
26
Revaluation reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
68,703,086
66,563,933
40,827,660
37,474,098
Revaluation surplus arising in the year
4,177,493
4,961,742
Deferred tax on revaluation of tangible assets
1,365,070
(456,911)
415,623
(657,118)
Transfer to retained earnings
(1,683,352)
(1,581,429)
(1,000,749)
(951,062)
At the end of the year
68,384,804
68,703,086
40,242,534
40,827,660
The value of the asset revaluations and fair value movements on assets recognised in other comprehensive income.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 36 -
27
Operating lease commitments
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
7,521
17,344
7,521
17,344
Between two and five years
-
7,521
-
7,521
7,521
24,865
7,521
24,865
Lessor
The investment properties are let under operating lease agreements.
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
374,021
259,067
-
-
Between two and five years
1,189,800
754,501
-
-
In over five years
506,017
554,427
-
-
2,069,838
1,567,995
-
-
28
Directors' transactions
Advances or credits have been granted by the group to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Mr I Khaliq - director
-
-
2,812
2,812
-
2,812
2,812
29
Controlling party
The ultimate controlling party is the trustees of The Khaliq Family Discretionary Trust, Ms S McAlear and Mr M Khaliq.
GAINFORD CARE HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 37 -
30
Cash generated from group operations
2024
2023
£
£
Profit after taxation
7,696,375
6,321,530
Adjustments for:
Taxation charged
3,624,171
2,083,248
Finance costs
1,019,559
1,302,900
Investment income
(1,617,695)
(1,239,460)
Gain on disposal of tangible fixed assets
(5,632)
(151,346)
Amortisation and impairment of intangible assets
20,768
18,291
Depreciation and impairment of tangible fixed assets
4,581,492
4,830,116
Movements in working capital:
Decrease/(increase) in stocks
12,096
(2,549)
Increase in debtors
(312,977)
(2,361,125)
Increase in creditors
566,274
2,186,180
Cash generated from operations
15,584,431
12,987,785
31
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
32,371,660
8,202,049
40,573,709
Borrowings excluding overdrafts
(16,879,522)
2,400,000
(14,479,522)
15,492,138
10,602,049
26,094,187
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