The directors present the strategic report for the year ended 31 January 2025.
Our business aims are to:
to be a provider of choice across the UK by continuing to build and publicise our reputation as a high-quality provider of complex physical care and rehabilitation
maintain financial and market stability and continued growth whilst providing a high value service to care commissioners
Continue to be prepared for market contingencies
During the year we provided a service throughout the UK, although predominantly within a 100-mile radius. Our services were commissioned in the main by NHS led services and the local authority; we take patients from 14 different commissioning bodies nationwide. There are very few other providers that are able to supply the complex care and rehabilitation offering that we do.
The challenges facing our business this year are common to most businesses in what continues to be a challenging landscape. Although the overall inflation rate has fallen back to an average of 2.5% during the year, the aftermath of the previous years means that food and energy inflation has remained stubbornly high and specialist supplies and services have all raised prices well above inflation. Government change has led to increases in business costs for employment amounting to an additional 12.5% in the pay bill. Public bodies have had financial difficulties that have led them to making cuts and economies that we have had to navigate to ensure we are paid a fair rate and that patients’ care packages are not compromised. Recruitment and retention continue to be a strain on the business leading to restricting the number of beds we are able to make available.
During the year we have recognised the challenges and responded by:
1. Reducing our service capacity to a level that can be fulfilled by our ability to service a working rota without using agency or reducing employment standards
2. Using our reduced capacity and staffing numbers as an opportunity to introduce changes to working practices, introducing technology-based care solutions and upskilling
3. Refining our service offering. Increasing our ability to manage highly complex physical care. We are fulfilling a market need that is hard to address and in increasingly short supply, despite rising numbers of people needing this service
4. Ensuring we are appropriately remunerated for the complexity of the care that we deliver. We have engaged the use of an industry recognised programme, Care Cubed, for assessing true care costs.
5. Ensuring transparency, meritocracy, equality and fairness through a published pay spine. Staff are able to understand how they can increase their earning opportunities through increased skill sets and how their pay stacks up against others in the care landscape.
6. Increasing investment in our staff skills and capability
a. Increasing skill sets
b. Increasing team sizes and breadth of ability to service complex needs
c. Redefining teams and responsibilities, for example introducing fully nurse led units
7. Increasing investment in IT infrastructure to meet the needs of a more data driven service. This includes a greater awareness of cyber security and our preparedness and resilience to tolerate cyber threats.
8. Continuing to invest and roll out software for care planning, telecommunications, staff communication and medication management
9. Embedding changes in legislation and governance
10. Ensuring we are managing our cashflow to accommodate vastly increased running costs
The Care Landscape
During the year we have been prepared for changes in the way we are regulated by the Care Quality Commission (CQC).
Most care companies continue to fight a rear-guard action to preserve and increase fees and ensure the vastly increased costs of care can be met. Commissioners have become more aggressive in their commissioning and reviewing with the emphasis on reducing fees rather than promoting patient choice or outcomes.
The local Authorities and Health Authorities although reorganised to form Integrated Care Boards (ICBs) are still navigating what this change means to them and continue to wrangle internally regarding payment of patient fees.
We have completed our move to digital processes to ensure a smoother more efficient way of managing our systems and records across all areas from care delivery through to all aspects of running the business. We continue to revise the cost of our care packages and what is contained within our offering to suit the new financial aims of our commissioners. This can lead to frustration from patients and their families who have expectations that need to be managed as their aspirations of care cannot necessarily be met within the new financial strictures. During the year recruitment and retention has improved from the previous year and we constantly assess how we can improve retention. We have also continued to flex occupancy to accommodate staffing numbers. Along with many homes we reduced our bed capacity in order to ensure we were correctly staffed. We have continued in our commitment not to employ agency staff.
As in the previous year, we acknowledge our banking partners at Santander who have been proactive and supportive with sound advice and guidance.
Staffing and Training
Many of our long term aims and training programs are now bearing fruit, for instance we now have a number of staff who have completed their NVQ level 5, expanded roles within the Senior Team and we have seen our further qualified Nursing Associates who have completed their apprenticeships. Four of these newly qualified Ans have now started their university courses to complete them on their journeys to become Level 1 Registered Nurses. This is a large financial commitment from the company. We now see a regular supply of staff qualifying for registered professional roles within the company. This allows for the company to offer complexity of care safe within the knowledge that the expertise is in plentiful supply within the company. There is also a value held within the company that we should ensure that we are not denuding the NHS of qualified staff but are adding to the national pool of registered staff. The recruitment market remains problematic with a great deal of difficulty in recruiting into non-registered posts. We still find we have a high level of staff turnover predominantly within staff who have been with the company for less than 6 months and generally within non registered staff, although it is not out of line with the national norm. We have a very low level of sickness and absence, generally below 3%. We continue to look for ways to build workforce resilience and therefore increase retention.
We continued to peg our pay spine to mimic the NHS Agenda for Change pay spine. Pay is placed alongside a required skills and competency platform which we call our Bronze, Silver and Gold Passports. The more clinical competence a person can demonstrate and use the more they are paid. This in turn allows us to take patients with increasing levels of complexity and larger care packages that come with them. The Training team ensures staff have equal access to these opportunities. This approach supports staff sustainability by providing real career skills and development so that a pathway in care employment has been established. The measures that we have put in place have led to an improvement in recruitment and retention from the previous 2 years but there is still much work to be done.
As with last year we continue to work with University of Lincoln and now also University of Nottingham to develop the Nursing Associate role. We are sponsoring and supporting a Speech and Language Therapy Graduate Student and Physiotherapy Graduate Student both at Sheffield University. In addition to our funding, we also have gained funding from our Local Authorities to support this training. These educational routes continue to be fully funded for study with us providing fully paid employment status. We know that having this pathway attracts candidates for employment and longer term, provide stability in numbers of registered staff available to Pathfinders-Care.
Quality Markers
During the year we had reviews and onsite inspections for infection control and general compliance from the Local Authorities and NHS Commissioners. These are published in the usual manner and are available on both our websites and those of the relevant public bodies. Our CQC rating remains Good. We passed all fire inspections and safety inspections from the Local Authorities, Fire and Rescue Authority and ICBs. The state of repair of the buildings, facilities and equipment remain good with constant rolling maintenance and routine inspection schedules. We anticipate refreshing and renewing Kitchen facilities which we started in 2024 and will continue through the home throughout 2025. We have once again been recognised by the Alantra Specialist Care Fast 50 for the financial stability and growth of the company.
Actions taken to give full and fair consideration to applications for employment of disabled persons with regard to their particular aptitudes and abilities
Familiarisation Days - Allows for us to see the full abilities of the candidate - those that may struggle with interviews due to learning disabilities, anxiety, may thrive on the floor with patients whilst shadowing
We use values-based recruitment which focuses on the company’s core values and means that as long as applicants show the correct values then previous experience is not necessary (which they may have been excluded from due to their disability)
Raised thresholds for absence procedures and probation when absence is linked to a person’s disability and wellbeing conversations to ensure that adjustments remain relevant supported by Occupational Health advice where necessary. We offer flexibility around timing, length and number of shifts so that employees may attend appointments and thus avoid absence. We offer flexibility around job roles wherever this is possible to roles that might make the most of abilities and limit difficulties. Examples have been Enabler to Ward Clerk, Training admin to Pharmacy Assistant.
Adjusting working times to suit individual needs- e.g., if pain is in the morning and gets better throughout the day then offering later or afternoon hours
An Employee Assistance Programme and a well promoted wellbeing support process is in place for those that would otherwise go off with anxiety, depression or other mental wellbeing issues.
Special arrangements for assisting disabled employees to further their careers, train, gain promotion
The Training team extensively use learning aids as they are identify and respond to staff who may require additional support to help them achieve the continuous professional development or career goals they may have. Examples also include:
Extra time is given to complete training where disability has become a barrier
support from the training team where disabled staff member makes us aware they are struggling with training
Mentoring system for all new staff where any additional requirements are identified
Employee Engagement
With a large staffing contingent covering diverse shifts, it has become vital to include the staff in ensuring good communication of company messages and involvement in the implementation of the company performance and vision.
This is accomplished through:
1. Regular Senior Management meetings (average 2 per month) involving all heads of departments
2. Regular staff meetings at unit level
3. Use of PlanDay for real-time online messaging and involvement of staff
4. Ensuring registered staff have their Union or registered body sponsored by the company (this also ensure that we know our registered staff are still within their respective registers and have individual professional indemnity in place)
5. Stakeholder involvement through regular meeting led by the Business Services team, public notice boards and social media through Facebook, company website and Instagram
6. Regular feedback surveys of staff and stakeholders that are reported back into the regular Senior Management Meeting
7. Updates posted on PlanDay from the Director twice a year on the company performance and financial position including how this will be affecting or improving their financial reward through the pay spine.
8. The Senior Management Team are involved in the review of Management Accounts on a monthly basis to they can understand the impact of their decisions and their performance on the running of the company.
Despite continued uncertainty within the healthcare market, we have remained steady due to good senior management collaboration and communication. We continue to reposition our offering to ensure relevance to the market. We continue to establish ourselves as a trusted deliverer of complex physical care and in particular for patients with respiratory, spinal involvement and rehabilitation needs. We are seeing a build-up of patients and families who are increasingly frustrated with the care and funding system and overstretched professionals. This has led to an increase in fractious behaviours and moving forward we will address the most challenging of these by expanding our ability to manage challenging behaviours. We have set in train the plan for 2025 to set aside a unit with specially trained staff for these patients. We have continued to increase and modernise our staff complement and our approach to the delivery of care and collaboration with our business partners. We have a highly skilled and sufficient workforce, we have our costs under control (world events and inflation not withstanding), we have a robust well managed facility, we have a viable patient offering and pricing structure. We will enter the new financial year ready to take advantage of this groundwork.
Financial Review
The results for the year which are set out in the consolidated income statement show a turnover of £9,283,832 (2024 - 8,549,942) and a gross profit of £2,361,795 (2024 - £2,029,406) a rise of 15.13%.
Cost of sales were up on the previous year by 5.9% representing a levelling out of the increasing inflationary pressures experience the previous year but still higher than the national inflation rate. Administrative expenses were increased by 3.4% and still showing positive returns on our digital investment with increased individual productivity.
Key performance indicators including weekly rates, gross margin, operating profit and EBITDA are an integral part of the monthly management accounts which focus on actual performance against forecast performance. During the year we can see continued performance can be erratic although the overall trend is upwards. Management accounts show that the business costs are well controlled and the moveable factor is patient package dependant. Energy costs continue to be controlled by rolling out environmental improvement schemes to ensuring lighting was moved to energy saving LED lights (this rolling 18-month programme concluded during the year) and the use of solar panels that cover the roof of all three buildings and provides a useful source of electricity to the business and to sell back into the grid). Medical supplies often continue to be in short supply and have therefore seen increases well above inflation. Interest rates have stabilised and we have negotiated a lower rate due to good business performance. Our overall aim continued to be to maintain stability and ensure potential for future growth whenever that became possible. The company continues to make investments in IT infrastructure, software for care delivery and telecommunications upgrades. We have addressed the increasing problem of pigeons that were nesting and multiplying on the roof under the solar panels. We have invested in the garden spaces to ensure a welcoming space for patients, their families and staff to spend meaningful time within. The gardening project was heavily sponsored by companies in the local community and the engagement of a gardener who has also had significant input into the newly established gardening club: this is well attended by patients and their families.
We have also invested heavily in our staff to ensure we can pursue the niche and under-served market of highly complex physical care. We became more assertive in cash flow management, in particular in ensuring invoices were paid in a timelier manner continuing with no aged debt.
By the close of the financial year although we showed a much-increased cash position than at the beginning of the year which has been retained within the company, cash flow remains vigorously managed moving from a cash negative position at the beginning of the year to cash positive at the end of the year.
We were able to report a 33.34% increase in operating profit of £1,040,454 (2024 – 743,101) this being due to continuing a strategy of individually priced packages for highly complex physical care patients and a continuing strong stance on fees based on understanding of real costs gleaned through the comprehensive monthly management accounts and use of Care Cubed software. Although potential income was offset by the reduction in bed numbers to accommodate staffing numbers. The turbulence of the year and impact of reducing bed numbers can be clearly seen in the weekly bed totals. The overall impact of our strategy with income shows a 20k rise in overall weekly fees and the strategy can be seen in the weekly bed register range in the chart below
At 31st January 2025 the group had increased net assets of £5,854,704 (2024 – £5,748,334)
The overall profit for the year after tax was 49.39% higher at £554,608 (2024 – £334,931)
The Directors consider the performance for the year to be a significant improvement on the previous year as we move further into the long-term improvement plan and post pandemic repositioning and digital upgrading. The Directors consider the performance to be robust in the face of external pressures and the financial position to be fair, particularly considering the challenges of the year.
Principle Risks and Uncertainties
The main risks as we see them are unpredictable world events that may destabilise the economy and energy and food supplies, workforce availability and expectations, inflationary forces including taxes and availability/price of energy, cyber security.
Secondary risks are around legislation and regulatory practice as these continue in their latest iteration untested.
Ongoing risks are around commissioning processes and the squeeze on the public purse that translates into pressure on patient packages and lowering of public resources.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 January 2025.
The results for the year are set out on page 15.
Ordinary dividends were paid amounting to £449,438. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Pathfinders-Care (Ollerton) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2025 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).
Basis for opinion
Emphasis of matter
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.
Other information
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
1) We obtained an understanding of the legal and regulatory framework applicable to the Group in the sector in which they operate.
2) We obtained an understanding of how the Group is complying with those legal and regulatory frameworks by making inquiries to management. We corroborated our inquiries through review of the legal and professional expenditure incurred as well as available information on the Company's website.
3) We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
- Challenging assumptions and judgements made by management in accounting estimates;
- Identifying and testing journal entries, in particular any that appear unusual;
- Reviewing most recent inspection reports by regulatory bodies and assess the impact on the financial statements (if any). The fundamental regulations required by the company are those enforced and inspected by the CQC (Care Quality Commission).
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.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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 £555,808 (2024 - £336,225 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Pathfinders-Care (Ollerton) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Cabourn House, Station Street, Bingham, Nottinghamshire, United Kingdom, NG13 8AQ.
The group consists of Pathfinders-Care (Ollerton) Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Pathfinders-Care (Ollerton) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 January 2025. 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.
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.
At the balance sheet date, the company had a loan facility that was due to expire within 12 months. Consequently the legal form is such that the balances are recognised as falling due within one year, creating a net current liability position. The banking facility was renewed in March 2025 as disclosed in note 26. As a result of this renewal, the directors conclude that there is no material concern over the use of the going concern basis.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover on care services provided is recognised at the agreed rates for each individual patient for the days that these services are provided. Consideration is made therefore at the period end for services either not yet invoiced or invoiced in advance, with adjustments made to accrued and deferred income respectively.
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.
An apportionment between the land and the property included within freehold property is not available and as such the freehold property is deemed to have a residual value equal to its fair value and is therefore not depreciated. This would be the case regardless for the freehold land element, which would be deemed to have an unlimited useful life and therefore not depreciated.
Revaluations are made periodically ensuring the carrying amount does not differ materially from the fair value. Revaluation gains and losses are charged to other comprehensive income and accumulated in the revaluation reserve in equity. Revaluation losses are charged to other comprehensive income only to the extent that they reverse any previous gains in the revaluation reserve. If a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess is recognised in profit and loss. If the revaluation has resulted in the carrying value increasing, this is recognised in other comprehensive income and accumulated in equity. However the increase is recognised in profit and loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit and loss.
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.
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, 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.
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, 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.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).
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:
Freehold land and buildings with a carrying amount of £10,001,159 were revalued at 4 March 2024 by Avison Young (UK) Limited, independent valuers not connected with the company on the basis of market value.
The revaluation surplus is disclosed in note 22.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Details of the company's subsidiaries at 31 January 2025 are as follows:
The subsidiary Bikow Developments Limited (registered number 05931604) has claimed audit exemption for the year ended 31st January 2025 under section 479A of the Companies Act 2006.
Financial assets measured at amortised cost comprise all current assets excluding stocks.
Financial liabilities measured at amortised cost comprise all creditors due in less than and in more than one year.
The bank loans are secured by debentures over all assets of the company. There is also a cross-company guarantee between Pathfinders-Care (Ollerton) Limited and Bikow Developments Limited (wholly owned subsidiary of Pathfinders-Care (Ollterton) Limited).
During the year there were breaches in the covenants of the bank financing provided by Santander UK plc. The carrying amount of the related financing is the amount disclosed above as secured debts. Following the year end, the banking facility has been renewed and covenants have been revised. There have been no breaches to these revised covenants.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
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.
This reserve represents the cumulative revaluation gains and losses on revaluation of land and buildings held as tangible assets.
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:
The bank renewed the company's banking facilities on 11 March 2025. As a result the outstanding bank loan of £3,442,587, included within creditors due less than one year, is repayable on 11 September 2026. Interest is payable on this loan at a rate of 3.85% above base.
On 28 May 2025, the company disposed of its entire shareholding in Bikow Developments Limited. The disposal resulted in the subsidiary ceasing to be part of the group from that date.
The remuneration of key management personnel is as follows.
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
Dividends totalling £449,438 (2024 - £262,788) were paid in the year in respect of shares held by the company's directors.
Another director was owed a total of £15,127 (2024: £14,637).
A director of the subsidiary company was owed a total of £41,531 (2024: £41,531) of which £20,000 (2024: £20,000) is due in over one year. There were no advances or repayments in either this year or the previous.
The balances above are unsecured, interest free and repayable on demand.