Company registration number 11347519 (England and Wales)
SANDSTONE HOLDINGS (TGT) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
SANDSTONE HOLDINGS (TGT) LIMITED
COMPANY INFORMATION
Directors
B J Challinor
R C Shore
J A Parkin
Company number
11347519
Registered office
Suite 419 Chadwick House
Birchwood Park
Warrington
WA3 6AE
Auditor
Smith & Goulding Limited
2 Southport Road
Chorley
Lancashire
PR7 1LB
SANDSTONE HOLDINGS (TGT) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 34
SANDSTONE HOLDINGS (TGT) 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 group continued to be that of the provision of residential care through the operation of four care homes located in Burscough, Fleetwood, Longridge, St Helens and Newtown, Powys.

Review of the business

The group's turnover has continued to increase. The year ended 31 October 2024 reported turnover of £19.213m, an increase of 32%. Gross profit has increased from 51.29% to 53.80%.

 

The growth in turnover reported results partly as a result of the opening of the Burscough location in March 2023, which now 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 group 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 group'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 group is financed by retained earnings together with a loan finance. The Directors make efforts to manage the financial risk by the monitoring of cash flow to ensure that the group 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:

 

 

2024

2023

Change

 

£'000

£'000

%

 

 

 

 

Turnover

19,213

14,537

32%

Gross profit as % of turnover

53.80%

51.29%

5%

Operating profit

1,765

910

94%

Profit before taxation

1,732

860

101%

Profit before taxation as % of turnover

9.01%

5.92%

52%

Shareholders' funds

1,793

592

303%

Number of employees

417

367

14%

Occupancy

94.99%

85.38%

11%

 

SANDSTONE HOLDINGS (TGT) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

On behalf of the board

R C Shore
Director
25 July 2025
SANDSTONE HOLDINGS (TGT) 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
R C Shore
J A Parkin
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

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.

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:

 

 

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.

SANDSTONE HOLDINGS (TGT) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
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
R C Shore
Director
25 July 2025
SANDSTONE HOLDINGS (TGT) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SANDSTONE HOLDINGS (TGT) LIMITED
- 5 -
Opinion

We have audited the financial statements of Sandstone Holdings (TGT) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 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, the company 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:

Basis for opinion

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.

Other information

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:

SANDSTONE HOLDINGS (TGT) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SANDSTONE HOLDINGS (TGT) LIMITED
- 6 -
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:

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 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 assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

SANDSTONE HOLDINGS (TGT) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SANDSTONE HOLDINGS (TGT) LIMITED
- 7 -

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

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.

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 HOLDINGS (TGT) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
19,212,590
14,537,221
Cost of sales
(8,875,175)
(7,081,572)
Gross profit
10,337,415
7,455,649
Administrative expenses
(8,572,735)
(6,546,320)
Other operating income
100
500
Operating profit
4
1,764,780
909,829
Interest receivable and similar income
7
36,156
-
0
Interest payable and similar expenses
8
(69,104)
(48,993)
Profit before taxation
1,731,832
860,836
Tax on profit
9
(377,976)
(198,529)
Profit for the financial year
1,353,856
662,307
Profit for the financial year is all attributable to the owners of the parent company.
SANDSTONE HOLDINGS (TGT) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
as restated
£
£
Profit for the year
1,353,856
662,307
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
1,353,856
662,307
Total comprehensive income for the year is all attributable to the owners of the parent company.
SANDSTONE HOLDINGS (TGT) LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
374,543
387,613
Tangible assets
12
621,670
527,153
996,213
914,766
Current assets
Debtors
15
5,350,307
3,547,959
Cash at bank and in hand
368,032
232,315
5,718,339
3,780,274
Creditors: amounts falling due within one year
16
(3,954,271)
(3,712,003)
Net current assets
1,764,068
68,271
Total assets less current liabilities
2,760,281
983,037
Creditors: amounts falling due after more than one year
17
(875,766)
(300,589)
Provisions for liabilities
Deferred tax liability
19
91,979
90,768
(91,979)
(90,768)
Net assets
1,792,536
591,680
Capital and reserves
Called up share capital
22
30
30
Profit and loss reserves
1,792,506
591,650
Total equity
1,792,536
591,680
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:
25 July 2025
R C Shore
Director
Company registration number 11347519 (England and Wales)
SANDSTONE HOLDINGS (TGT) LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Investments
13
130
130
130
130
Current assets
Debtors
15
25,432
25,432
Creditors: amounts falling due within one year
16
(8,226)
(7,798)
Net current assets
17,206
17,634
Net assets
17,336
17,764
Capital and reserves
Called up share capital
22
30
30
Profit and loss reserves
17,306
17,734
Total equity
17,336
17,764

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 £152,572 (2023 - £107,267 profit).

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:
25 July 2025
R C Shore
Director
Company registration number 11347519 (England and Wales)
SANDSTONE HOLDINGS (TGT) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 October 2023:
Balance at 1 November 2022
30
37,343
37,373
Year ended 31 October 2023:
Profit and total comprehensive income
-
662,307
662,307
Dividends
10
-
(108,000)
(108,000)
Balance at 31 October 2023
30
591,650
591,680
Year ended 31 October 2024:
Profit and total comprehensive income
-
1,353,856
1,353,856
Dividends
10
-
(153,000)
(153,000)
Balance at 31 October 2024
30
1,792,506
1,792,536
SANDSTONE HOLDINGS (TGT) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 October 2023:
Balance at 1 November 2022
30
18,467
18,497
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
107,267
107,267
Dividends
10
-
(108,000)
(108,000)
Balance at 31 October 2023
30
17,734
17,764
Year ended 31 October 2024:
Profit and total comprehensive income
-
152,572
152,572
Dividends
10
-
(153,000)
(153,000)
Balance at 31 October 2024
30
17,306
17,336
SANDSTONE HOLDINGS (TGT) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
315,679
660,305
Interest paid
(69,104)
(48,993)
Income taxes (paid)/refunded
(357,121)
1,505
Net cash (outflow)/inflow from operating activities
(110,546)
612,817
Investing activities
Purchase of intangible assets
-
(46,115)
Purchase of tangible fixed assets
(257,548)
(232,491)
Proceeds from disposal of tangible fixed assets
2
600
Interest received
36,156
-
0
Net cash used in investing activities
(221,390)
(278,006)
Financing activities
Proceeds from new bank loans
671,620
-
Repayment of bank loans
(50,967)
(46,155)
Dividends paid to equity shareholders
(153,000)
(108,000)
Net cash generated from/(used in) financing activities
467,653
(154,155)
Net increase in cash and cash equivalents
135,717
180,656
Cash and cash equivalents at beginning of year
232,315
51,659
Cash and cash equivalents at end of year
368,032
232,315
SANDSTONE HOLDINGS (TGT) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Investing activities
Dividends received
153,000
108,000
Net cash generated from investing activities
153,000
108,000
Financing activities
Dividends paid to equity shareholders
(153,000)
(108,000)
Net cash used in financing activities
(153,000)
(108,000)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
1
Accounting policies
Company information

Sandstone Holdings (TGT) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Suite 419 Chadwick House, Birchwood Park, Warrington, WA3 6AE.

 

The group consists of Sandstone Holdings (TGT) 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 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.

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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Sandstone Holdings (TGT) 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 October 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.

SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

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 at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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
Over 22 years and straight line over the life of the lease
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.

SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -

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
At varying rates - 10% on cost; 15% reducing balance; 22 years straight line
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 recognised in the profit and loss account.

1.8
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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
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.

SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 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.

1.10
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.

1.11
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.

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.

SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 20 -
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

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.

SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 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.

1.12
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.

1.13
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.

1.14
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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
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.

SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 22 -
1.17

Prior period adjustment

In the year ended 31 October 2023, an adjustment to recognise a deferred lease incentive amounting to £452,590 was not recognised in one of the subsidiary undertaking's 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 group’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.

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
19,212,590
14,537,221
2024
2023
£
£
Other revenue
Interest income
36,156
-

The whole of the turnover is attributable to the principal activity of the group, wholly undertaken in the United Kingdom    .

SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
151,415
124,715
Loss on disposal of tangible fixed assets
11,614
556
Amortisation of intangible assets
13,070
12,597
Operating lease charges
3,045,851
2,601,875
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
6,000
-
Audit of the financial statements of the company's subsidiaries
24,000
-
30,000
-
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
Care staff
300
262
-
-
Administration and support
107
96
-
-
Key management
10
9
3
3
Total
417
367
3
3

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
9,335,713
7,311,431
-
0
-
0
Social security costs
662,864
444,407
-
-
Pension costs
127,921
96,794
-
0
-
0
10,126,498
7,852,632
-
0
-
0
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
36,156
-

Interest received relates to interest earned on the company's rent deposits.

8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
51,827
42,563
Other interest on financial liabilities
11,353
-
63,180
42,563
Other finance costs:
Other interest
5,924
6,430
Total finance costs
69,104
48,993
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
395,371
174,981
Adjustments in respect of prior periods
(58,225)
-
0
Total current tax
337,146
174,981
Deferred tax
Origination and reversal of timing differences
40,830
23,548
Total tax charge
377,976
198,529
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
9
Taxation
(Continued)
- 25 -

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
1,731,832
860,836
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
432,958
193,860
Tax effect of expenses that are not deductible in determining taxable profit
96
432
Unutilised tax losses carried forward
107
183
Adjustments in respect of prior years
(58,225)
-
0
Effect of change in corporation tax rate
-
1,925
Depreciation on assets not qualifying for tax allowances
586
243
Amortisation on assets not qualifying for tax allowances
3,267
2,836
Other permanent differences
(813)
4,337
Deferred tax adjustments in respect of prior years
-
0
(4,101)
Enhanced capital allowances
-
0
(1,186)
Taxation charge
377,976
198,529
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
153,000
108,000
11
Intangible fixed assets
Group
Capitalised lease costs
£
Cost
At 1 November 2023 and 31 October 2024
427,694
Amortisation and impairment
At 1 November 2023
40,081
Amortisation charged for the year
13,070
At 31 October 2024
53,151
Carrying amount
At 31 October 2024
374,543
At 31 October 2023
387,613
The company had no intangible fixed assets at 31 October 2024 or 31 October 2023.
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
11
Intangible fixed assets
(Continued)
- 26 -

Capitalised lease costs relate to costs incurred when the group entered into leases for the care home properties.

12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 November 2023
240,732
360,222
149,353
87,599
837,906
Additions
118,947
108,471
11,988
18,142
257,548
Disposals
-
0
(17,664)
-
0
(61,873)
(79,537)
At 31 October 2024
359,679
451,029
161,341
43,868
1,015,917
Depreciation and impairment
At 1 November 2023
55,453
129,935
60,226
65,139
310,753
Depreciation charged in the year
33,499
79,630
27,842
10,444
151,415
Eliminated in respect of disposals
-
0
(9,624)
-
0
(58,297)
(67,921)
At 31 October 2024
88,952
199,941
88,068
17,286
394,247
Carrying amount
At 31 October 2024
270,727
251,088
73,273
26,582
621,670
At 31 October 2023
185,279
230,287
89,127
22,460
527,153
The company had no tangible fixed assets at 31 October 2024 or 31 October 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
130
130
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
130
Carrying amount
At 31 October 2024
130
At 31 October 2023
130
14
Subsidiaries

Details of the company's subsidiaries at 31 October 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Sandstone Care North West Limited
England and Wales
Operation of residential care homes
Ordinary shares
100.00
The Oaks (Newtown) Limited
England and Wales
Operation of residential care home
Ordinary shares
100.00
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,038,728
1,073,424
-
0
-
0
Amounts owed by group undertakings
-
-
22,474
22,474
Other debtors
2,819,647
1,034,453
2,958
2,958
Prepayments and accrued income
730,767
669,476
-
0
-
0
4,589,142
2,777,353
25,432
25,432
Deferred tax asset (note 19)
1,811
26,588
-
0
-
0
4,590,953
2,803,941
25,432
25,432
Amounts falling due after more than one year:
Other debtors
759,354
729,176
-
0
-
0
Deferred tax asset (note 19)
-
0
14,842
-
0
-
0
759,354
744,018
-
-
Total debtors
5,350,307
3,547,959
25,432
25,432
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
15
Debtors
(Continued)
- 28 -

Debtors due after more than one year relates to lease deposits.

16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
91,434
45,958
-
0
-
0
Trade creditors
806,849
425,148
-
0
-
0
Amounts owed to group undertakings
-
0
100
-
0
100
Corporation tax payable
235,233
255,208
-
0
-
0
Other taxation and social security
285,732
194,026
-
-
Deferred income
20
621,793
435,382
-
0
-
0
Other creditors
564,827
1,445,645
7,578
6,978
Accruals and deferred income
1,348,403
910,536
648
720
3,954,271
3,712,003
8,226
7,798
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
875,766
300,589
-
0
-
0
Amounts included above which fall due after five years are as follows:
Payable by instalments
432,729
138,706
-
-
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
967,200
346,547
-
0
-
0
Payable within one year
91,434
45,958
-
0
-
0
Payable after one year
875,766
300,589
-
0
-
0
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
18
Loans and overdrafts
(Continued)
- 29 -

Bank loans comprise the following:

 

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.

 

An unsecured loan amounting to £344,492. The loan was advanced in September 2024 for a six year term. Interest is charged on the loan at at a fixed rate of 16.3% for the entire term.

 

A secured loan with balance amounting to £279,625. This loan was advanced in January 2020 for a 9 year term. Interest is charged on the loan at a fixed rate of 8% per annum. The loan is secured by way of debenture - fixed and floating charges over the undertakings and assets of the company and subsidiary undertakings Sandstone Care North West Limited and The Oaks (Newtown) Limited. Corporate guarantees have been provided by the group, together with additional guarantees from Sandstone Care Limited, Caresolve Limited and Caresolve Financial Limited, companies controlled by the Directors.

 

A secured loan with balance amounting to £324,750. This loan was advanced in October 2024 for a 7 year term. Interest is charged on the loan at a fixed rate of 12.25% per annum for 5 years, following which the rate shall equate to 7% above the Bank of England base rate. The loan is secured by way of debenture - fixed and floating charges over the undertakings and assets of the company and subsidiary undertakings Sandstone Care North West Limited and The Oaks (Newtown) Limited. Corporate guarantees have been provided by the group, together with additional guarantees from AP Birkenhead Limited and AP Specialist Care Group Limited, companies controlled by the Directors.

 

The Directors have provided personal guarantees totalling £450,000 in respect of the secured loans noted above.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
91,979
90,768
-
-
Tax losses
-
-
-
41,430
Retirement benefit obligations
-
-
1,811
-
91,979
90,768
1,811
41,430
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
49,338
-
Charge to profit or loss
40,830
-
Liability at 31 October 2024
90,168
-
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
19
Deferred taxation
(Continued)
- 30 -

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.

20
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
621,793
435,382
-
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
127,921
96,794

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.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
30
30
30
30
23
Financial commitments, guarantees and contingent liabilities

In additional to the security provided in relation to the group's borrowings, the group is subject to fixed and floating charges covering all properties and undertakings in respect of their lease obligations to the group's landlords.

SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
24
Operating lease commitments
Lessee

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
3,029,666
2,915,672
-
-
Between two and five years
12,118,665
11,662,689
-
-
In over five years
57,253,367
58,064,368
-
-
72,401,698
72,642,729
-
-

Lease commitments relate to the 5 care homes operated by the group. These are subject to 35 year leases which expire between 2042 and 2055.

25
Events after the reporting date

The group acquired an additional care home in Cockermouth in June 2025, entering into a 35 year lease at this date.

26
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Management charges
Management charges
2024
2023
£
£
Group
Entities with control, joint control or significant influence over the group
779,474
322,067
Cost recharges paid
Cost recharges received
2024
2023
2024
2023
£
£
£
£
Group
Entities with control, joint control or significant influence over the company
543,870
366,405
213,871
211,649

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Entities with control, joint control or significant influence over the group
451,902
799,583
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
26
Related party transactions
(Continued)
- 32 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities with control, joint control or significant influence over the group
2,727,944
1,027,517
27
Controlling party

The company is controlled by the Directors by virtue of their beneficial interest in the company's entire issued share capital.

28
Cash generated from group operations
2024
2023
£
£
Profit after taxation
1,353,856
662,307
Adjustments for:
Taxation charged
377,976
198,529
Finance costs
69,104
48,993
Investment income
(36,156)
-
0
Loss on disposal of tangible fixed assets
11,614
556
Amortisation and impairment of intangible assets
13,070
12,597
Depreciation and impairment of tangible fixed assets
151,415
124,715
Movements in working capital:
Decrease in stocks
-
7,500
Increase in debtors
(1,841,967)
(932,539)
Increase in creditors
30,356
297,820
Increase in deferred income
186,411
239,827
Cash generated from operations
315,679
660,305
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 33 -
29
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
152,572
107,267
Adjustments for:
Investment income
(153,000)
(108,000)
Movements in working capital:
Increase in creditors
428
733
Cash generated from operations
-
-
30
Analysis of changes in net debt - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
232,315
135,717
368,032
Borrowings excluding overdrafts
(346,547)
(620,653)
(967,200)
(114,232)
(484,936)
(599,168)
31
Prior period adjustment

A prior period adjustment has been made to the accounts encompassing the following:

Reconciliation of changes in equity - group
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
37,373
942,356
Equity as adjusted
37,373
591,680
Analysis of the effect upon equity
Profit and loss reserves
-
(350,676)
SANDSTONE HOLDINGS (TGT) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
31
Prior period adjustment
(Continued)
- 34 -
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
1,012,983
Profit as adjusted
662,307
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
107,267
Profit as adjusted
107,267
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.

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