Company registration number 12316289 (England and Wales)
SANDSTONE CARE NORTH WEST LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
SANDSTONE CARE NORTH WEST LIMITED
COMPANY INFORMATION
Directors
B J Challinor
J A Parkin
R C Shore
Company number
12316289
Registered office
Suite 419 Chadwick House
Birchwood Park
Warrington
WA3 6AE
Auditor
Smith & Goulding Limited
2 Southport Road
Chorley
Lancashire
PR7 1LB
SANDSTONE CARE NORTH WEST LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
SANDSTONE CARE NORTH WEST LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Principal activities
The principal activity of the company continued to be that of the provision of residential care through the operation of four care homes located in Burscough, Fleetwood, Longridge and St Helens.
Review of the business
The company's turnover has continued to increase. The year ended 31 October 2024 reported turnover of £15.235m, an increase of 39%. Gross profit has increased from 53.15% to 53.84%.
The growth in turnover reported results partly as a result of the opening of the Burscough location in March 2023, which not reports a full year; together with increases in occupancy rates and pricing levels.
A prior year adjustment has been made to the 2023 comparative amounts in the accounts in respect of a deferred lease incentive which has been recognised in the accounts.
The company acquired an additional care home in Cockermouth in June 2025.
Principal risks and uncertainties
Local authority funding changes
The Directors consider that the most significant risk facing the business are the levels of funding by local authorities compared to the costs required to ensure the required level of care. Changes in the national minimum wage have a significant impact on labour cost differentials. The Directors budget carefully for these differentials and minimum wage increases and the associated impact on cash flow and profitability.
Commercial risk management
As with all providers of residential care there is a risk of the loss of reputation through any adverse reports from relevant regulators. The Directors have put in place measures to ensure that standards are maintained and enhanced through regular training; the recruitment and retention of quality staff and the maintenance and provision of high quality facilities.
Financial risk management
The company's policy is to ensure that adequate and cost effective arrangements are maintained to finance current and future activities and that exposure to financial risk is minimised.
Liquidity and funding
The company is financed by retained earnings together with a loan received towards the end of the year. The Directors make efforts to manage the financial risk by the monitoring of cash flow to ensure that the company is able to meet foreseeable debts as they fall due.
Key performance indicators
The company's key financial and other performance indicators during the year were as follows:
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Gross profit as % of turnover | | | |
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Profit before taxation as % of turnover | | | |
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SANDSTONE CARE NORTH WEST LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
R C Shore
Director
25 July 2025
SANDSTONE CARE NORTH WEST LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £153,000. 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:
B J Challinor
J A Parkin
R C Shore
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 company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company'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 company's performance..
Post reporting date events
The company acquired an additional care home in Cockermouth in June 2025.
Auditor
Smith & Goulding Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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 company and of the profit or loss of the company 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
SANDSTONE CARE NORTH WEST LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
R C Shore
Director
25 July 2025
SANDSTONE CARE NORTH WEST LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SANDSTONE CARE NORTH WEST LIMITED
- 5 -
Opinion
We have audited the financial statements of Sandstone Care North West Limited (the 'company') for the year ended 31 October 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 31 October 2024 and of its 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 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 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.
SANDSTONE CARE NORTH WEST LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SANDSTONE CARE NORTH WEST LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its 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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 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 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 engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussions with Directors and other management, and from our commercial knowledge and experience of the sector;
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, environmental and health and safety legislation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
SANDSTONE CARE NORTH WEST LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SANDSTONE CARE NORTH WEST LIMITED (CONTINUED)
- 7 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative or potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment or collusion.
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.
Other matters which we are required to address
Comparative information in the financial statements is derived from the company's prior period financial statements, which were not audited.
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.
Andrew Simm F.C.A. (Senior Statutory Auditor)
For and on behalf of Smith & Goulding Limited, Statutory Auditor
Chartered Accountants
2 Southport Road
Chorley
Lancashire
PR7 1LB
28 July 2025
SANDSTONE CARE NORTH WEST LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
15,158,722
10,961,425
Cost of sales
(7,033,063)
(5,134,931)
Gross profit
8,125,659
5,826,494
Administrative expenses
(6,739,646)
(4,983,016)
Operating profit
4
1,386,013
843,478
Interest receivable and similar income
7
26,723
Interest payable and similar expenses
8
(23,226)
(7,401)
Profit before taxation
1,389,510
836,077
Tax on profit
9
(289,775)
(200,105)
Profit for the financial year
1,099,735
635,972
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SANDSTONE CARE NORTH WEST LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
as restated
£
£
Profit for the year
1,099,735
635,972
Other comprehensive income
-
-
Total comprehensive income for the year
1,099,735
635,972
SANDSTONE CARE NORTH WEST LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
77,409
80,806
Tangible assets
12
542,384
454,158
619,793
534,964
Current assets
Debtors falling due after more than one year
13
626,083
599,360
Debtors falling due within one year
13
3,925,939
2,662,143
Cash at bank and in hand
328,235
182,351
4,880,257
3,443,854
Creditors: amounts falling due within one year
14
(3,162,164)
(2,893,875)
Net current assets
1,718,093
549,979
Total assets less current liabilities
2,337,886
1,084,943
Creditors: amounts falling due after more than one year
15
(321,390)
(18,051)
Provisions for liabilities
Deferred tax liability
17
78,795
75,926
(78,795)
(75,926)
Net assets
1,937,701
990,966
Capital and reserves
Called up share capital
20
30
30
Profit and loss reserves
1,937,671
990,936
Total equity
1,937,701
990,966
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 25 July 2025 and are signed on its behalf by:
R C Shore
Director
Company registration number 12316289 (England and Wales)
SANDSTONE CARE NORTH WEST LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 October 2023:
Balance at 1 November 2022
30
462,964
462,994
Year ended 31 October 2023:
Profit and total comprehensive income
-
635,972
635,972
Dividends
10
-
(108,000)
(108,000)
Balance at 31 October 2023
30
990,936
990,966
Year ended 31 October 2024:
Profit and total comprehensive income
-
1,099,735
1,099,735
Dividends
10
-
(153,000)
(153,000)
Balance at 31 October 2024
30
1,937,671
1,937,701
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information
Sandstone Care North West Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 419 Chadwick House, Birchwood Park, Warrington, WA3 6AE.
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 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. The principal accounting policies adopted are set out below.
This 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:
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.
The financial statements of the company are consolidated in the financial statements of Sandstone Holdings (TGT) Limited. These consolidated financial statements are available from its registered office, Suite 419 CHadwick House, Birchwood Park, Warrington, WA3 6AE.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.
Revenue from contracts for the provision of services is recognised by reference to the delivery of care to the home residents. Income which is invoiced in advance or arrears is apportioned so that only that relating to the period of the financial statements is included in turnover.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
Amortisation 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:
Capitalised lease costs
Straight line over 22 years and over the lease period
1.5
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:
Leasehold improvements
15% on costs and straight line over 22 years
Plant and equipment
20% on cost
Fixtures and fittings
20% on cost
Computers
33% on cost
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 credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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.
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.
1.7
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.
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
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 company 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 company after deducting all of its liabilities.
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
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
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
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 when the company has 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
As lessee
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 leases asset are consumed.
1.14
In the year ended 31 October 2023, an adjustment to recognise a deferred lease incentive amounting to £452,590 was not recognised in the financial statements, together with the associated reduction in the corporation tax charge. As such, accruals has been adjusted to recognise this provision, with a corresponding increase in rent costs reported by the company. The corporation tax charge in the 2023 comparatives has been reduced by £101,914, with a corresponding decrease in the corporation tax liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation and amortisation
The judgement that has had the most significant effect on the amounts recognised in the financial statements relates to the estimate of the useful economic lives of the various fixed assets in the accounts for the purpose of the depreciation and amortisation charges. The carrying values of the fixed assets after depreciation are disclosed in the notes to the accounts.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Operation of residential care homes
15,158,722
10,961,425
2024
2023
£
£
Other revenue
Interest income
26,723
-
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,200
Depreciation of owned tangible fixed assets
123,878
101,249
Loss on disposal of tangible fixed assets
8,385
606
Amortisation of intangible assets
3,397
2,924
Operating lease charges
2,508,447
2,085,365
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Care staff
228
200
Administration and support
87
76
Key management
8
7
Total
323
283
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
5
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
7,243,377
5,222,214
Social security costs
516,858
347,988
Pension costs
93,672
70,206
7,853,907
5,640,408
6
Directors' remuneration
No remuneration was paid to the directors.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
26,723
Interest received relates to interest earned on the company's rent deposits.
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
6,327
971
Other interest on financial liabilities
11,353
Other interest
5,546
6,430
23,226
7,401
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
346,942
174,981
Adjustments in respect of prior periods
(58,225)
Total current tax
288,717
174,981
Deferred tax
Origination and reversal of timing differences
1,058
25,124
Total tax charge
289,775
200,105
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
9
Taxation
(Continued)
- 19 -
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
1,389,510
836,077
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
347,378
188,285
Adjustments in respect of prior years
(58,225)
Effect of change in corporation tax rate
1,942
Depreciation on assets not qualifying for tax allowances
586
243
Amortisation on assets not qualifying for tax allowances
849
658
Other permanent differences
(813)
4,337
Deferred tax adjustments in respect of prior years
5,645
Enhanced capital allowances
(1,005)
Taxation charge for the year
289,775
200,105
10
Dividends
2024
2023
£
£
Final paid
153,000
108,000
11
Intangible fixed assets
Capitalised lease costs
£
Cost
At 1 November 2023 and 31 October 2024
89,154
Amortisation and impairment
At 1 November 2023
8,348
Amortisation charged for the year
3,397
At 31 October 2024
11,745
Carrying amount
At 31 October 2024
77,409
At 31 October 2023
80,806
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
11
Intangible fixed assets
(Continued)
- 20 -
Capitalised lease costs relate to costs incurred when the company entered into 35 year leases for the care home properties.
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 November 2023
225,817
299,580
105,822
65,001
696,220
Additions
105,256
91,756
11,637
11,841
220,490
Disposals
(16,404)
(43,119)
(59,523)
At 31 October 2024
331,073
374,932
117,459
33,723
857,187
Depreciation and impairment
At 1 November 2023
54,164
104,422
35,820
47,656
242,062
Depreciation charged in the year
29,589
66,097
19,169
9,023
123,878
Eliminated in respect of disposals
(8,951)
(42,186)
(51,137)
At 31 October 2024
83,753
161,568
54,989
14,493
314,803
Carrying amount
At 31 October 2024
247,320
213,364
62,470
19,230
542,384
At 31 October 2023
171,653
195,158
70,002
17,345
454,158
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
981,607
905,018
Amounts owed by group undertakings
74,795
194,689
Other debtors
2,296,098
1,030,649
Prepayments and accrued income
571,628
531,787
3,924,128
2,662,143
Deferred tax asset (note 17)
1,811
3,925,939
2,662,143
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
626,083
599,360
Total debtors
4,552,022
3,261,503
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
13
Debtors
(Continued)
- 21 -
Debtors due after more than one year relates to lease deposits.
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
41,436
10,000
Trade creditors
742,772
312,519
Amounts owed to group undertakings
22,474
22,474
Corporation tax
186,804
255,208
Other taxation and social security
246,036
128,192
Deferred income
18
562,464
376,223
Other creditors
137,114
958,556
Accruals and deferred income
1,223,064
830,703
3,162,164
2,893,875
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
321,390
18,051
Creditors which fall due after five years are payable as follows:
Payable by instalments
78,344
-
16
Loans and overdrafts
2024
2023
£
£
Bank loans
362,826
28,051
Payable within one year
41,436
10,000
Payable after one year
321,390
18,051
Bank loans comprise an unsecured bounceback loan amounting to £18,333. Interest is incurred at 2.5% and the loan will be fully repaid during the year ended 31 October 2026.
In addition, there is an unsecured loan amounting to £344,492. The loan was advanced in September 2026 for a six year term. Interest is charged on the loan at at a fixed rate of 16.3% for the entire term.
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
78,795
75,926
-
-
Retirement benefit obligations
-
-
1,811
-
78,795
75,926
1,811
-
2024
Movements in the year:
£
Liability at 1 November 2023
75,926
Charge to profit or loss
1,058
Liability at 31 October 2024
76,984
The deferred tax asset set out above is expected to reverse within 12 months and relates to the pension contributions not paid as at the year end. The deferred tax liability set out above is expected to largely reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period.
18
Deferred income
2024
2023
£
£
Other deferred income
562,464
376,223
Deferred income relates to income received from residents in advance.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
93,672
70,206
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
30
30
30
30
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
20
Share capital
(Continued)
- 23 -
21
Financial commitments, guarantees and contingent liabilities
The company is subject to fixed and floating charges covering all properties and undertakings in respect of their lease obligations to the company's landlords.
There is also a fixed and floating charge over the company's properties, assets and undertakings relating to a guarantee provided on borrowing entered into by The Oaks (Newtown) Limited, a fellow subsidiary of Sandstone Holdings (TGT) Limited.
22
Operating lease commitments
As lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within 1 year
2,489,567
2,375,573
Years 2-5
9,958,269
9,502,293
After 5 years
43,750,892
44,021,794
56,198,728
55,899,660
Lease commitments relate to the 4 care homes operated by the company. These are subject to 35 year leases which expire between 2042 and 2055. Parent company Sandstone Holdings (TGT) Limited acts as guarantor to the company's leases.
23
Events after the reporting date
The company acquired an additional care home in Cockermouth in June 2025, entering into a 35 year lease at this date.
24
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Management charges
Management charges
2024
2023
£
£
Entities with control, joint control or significant influence over the company
623,117
204,000
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
24
Related party transactions
(Continued)
- 24 -
Cost recharges paid
Cost recharges received
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
457,244
271,432
191,199
175,649
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
39,089
335,426
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
2,238,277
1,027,517
25
Prior period adjustment
A prior period adjustment has been made to the accounts encompassing the following:
Reconciliation of changes in equity
1 November
31 October
2022
2023
£
£
Adjustments to prior year
Increase in creditors - deferral of lease incentive over the life of the lease
-
(452,590)
Decrease in creditors - reduction in corporation tax arising from deferral of lease incentive
-
101,914
Total adjustments
-
(350,676)
Equity as previously reported
462,994
1,341,642
Equity as adjusted
462,994
990,966
Analysis of the effect upon equity
Profit and loss reserves
-
(350,676)
SANDSTONE CARE NORTH WEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
25
Prior period adjustment
(Continued)
- 25 -
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Increase in creditors - deferral of lease incentive over the life of the lease
(452,590)
Decrease in creditors - reduction in corporation tax arising from deferral of lease incentive
101,914
Total adjustments
(350,676)
Profit as previously reported
986,648
Profit as adjusted
635,972
Notes to reconciliation
The prior period adjustment has been recognised in order to correct the comparative amounts, to introduce an accrual to account for the lease incentive for a lease commencing in March 2023. In accordance with FRS102, the incentive is to be recognised over the remaining lease term.
26
Ultimate controlling party
The immediate and ultimate parent company is Sandstone Holdings (TGT) Limited. The company is included in the consolidated accounts of Sandstone Holdings (TGT) Limited. The registered office of this entity is Suite 419 Chadwick House, Birchwood Park, Warrington, England, WA3 6AE.
The ultimate controlling parties are B J Challinor, J A Parkin and R C Shore by virtue of their beneficial interest in Sandstone Holdings (TGT) Limited.
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