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Registered number: 05814316










BIRTLEY HOUSE GROUP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 AUGUST 2024

 
BIRTLEY HOUSE GROUP LIMITED
 

COMPANY INFORMATION


Directors
S Whalley 
C Whalley 
F Whalley 
T Whalley 
M Whalley 




Registered number
05814316



Registered office
Birtley House
Birtley Road

Bramley

Guildford

Surrey

GU5 0LB




Independent auditor
TWP Accounting LLP
Chartered Accountants & Statutory Auditors

The Old Rectory

Church Street

Weybridge

Surrey

KT13 8DE




Bankers
Lloyds Bank Plc
147 High Street

Guildford

Surrey

GU1 3AG




Solicitors
Stevens & Bolton
The Billings

Guildford

Surrey

GU1 4YD





 
BIRTLEY HOUSE GROUP LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditor's Report
6 - 9
Consolidated Statement of Comprehensive Income
10
Consolidated Balance Sheet
11
Company Balance Sheet
12
Consolidated Statement of Changes in Equity
13
Company Statement of Changes in Equity
14
Consolidated Statement of Cash Flows
15
Notes to the Financial Statements
16 - 39


 
BIRTLEY HOUSE GROUP LIMITED
 

GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2024

Introduction
The directors present the strategic report for the year ended 31 August 2024.
The Group's principal trading subsidiaries are involved in the management of a nursing home, Birtley House, and the development and management of close care apartments. The parent company's principal activity is that of a holding company.

Business Review
 
Celebrating its 92nd Birthday in July 2024, Birtley House continues in the tradition of remaining an independent, wholly family-owned nursing home business.  At the same time, it has maintained its reputation for leading, innovating and championing the sector, playing a significant role by working alongside Local Government groups, Care England and Surrey Care Association.
Birtley House is forward-thinking in its commitment to the environment and is well advanced in its green credentials with its wood fueled boiler, home grown produce and many other environmentally friendly initiatives. It prides itself on a strong community engagement, with several charitable and/or community organisations accessing the grounds and its facilities including a preschool.  The combination of these factors creates an environment of continuity, integrity, and a market leading caring ethos, quite unlike any other nursing home. This gives the residents not only the best care but also a quality of life that embraces the peacefulness of beautiful surroundings as well as a thriving community to be part of. 
The economy has been through a great deal of uncertainty in recent years with changes of government leadership, the enormous rise of inflation and interest rates, all of which has affected the housing marketing and in turn the sales of our West Wing Apartments and Mews Flats. As well as a cost of living crisis affecting our workforce and our own costs. 
The Board of Directors have recognised the long term change in the market with people staying in their own homes longer. They have identified a number of ways in which to tweak the current business model for the West Wing Apartments to make profitability, income and long term security greater, and will be working towards those goals. 
The year 2023-24 continued its upward trend following the Covid 19 pandemic with occupancy back to pre pandemic levels. In order to keep occupancy high and consistent, we have a number of online marketing strategies including Internet search engine optimisation bringing traffic into our website, which continues to be a reliable source of enquiries.  We also have an extremely high review score on the carehome.co.uk platform in comparison to other care homes (9.7 out of 10). As well as our significant online presence, we have close links with community and charity groups and continue our PR and print format adverts in our surrounding villages which is where a majority of our residents come from.  
Other challenges remain including cyber vigilance and the maintaining and upgrading of an historic building, including the newly introduced fire regulations following the Grenfell inquiry. The group continues to invest substantially in its property and facilities for the clients (residents) of its subsidiary businesses to maximise asset value and reinforce the quality and ambience of the property and its grounds, which has always been the unique selling point for the businesses. The building has been re-painted and an order placed for new windows for installation in the Autumn 2024.
Staffing of the home is managed and monitored by the Group Finance Manager to ensure most cost-effective quality resourcing. Relationships with local staffing agencies are also well maintained with preferable rates and consistent staffing.  Meanwhile Birtley House continues to be a nurturing and supportive employer and provides an outstanding working environment, a robust training and induction program, and a market-leading employee benefits package. Being independent and owner managed gives greater flexibility when dealing with employee requests. To recognise and validate this, Birtley House won the Surrey Care Awards 2023 in the category of ‘Innovation in Workforce Recruitment and Retention’.

Page 1

 
BIRTLEY HOUSE GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024

 
The key performance indicators used by the Board in monitoring the performance of the business are the valuation of the company's properties in relation to the level of bank borrowing; the return on these investments and the level of administrative and financing costs incurred.
The Group showed a pre-tax profit for the year of £543,493 (2023 - £173,259). The Group’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is £848,092 (2023 - £418,603).
During the year the company incurred administrative expenses of £800,253 (2023 - £721,829) in connection with the management of the group and the Birtley House property. In addition, the company paid interest of £228,370 (2023 - £188,803) in respect of its borrowings. Investment income of £nil (2023 - £850,000) was received from the company's shares in group undertakings. Overall the company showed a pre-tax loss of £748,386 (2023 - profit of £188,803).

Results of Subsidiaries
 
The nursing home business, operated by Eyhurst Court Limited, continued to perform well in the year, producing income of £4,549,970 (2023 - £4,058,397) and a pre-tax profit of £1,317,952 (2023 - £884,562).
The company involved in the management of the close care apartments, Birtley Mews Limited, traded in-line with expectations. Turnover was £633,557 (2023 - £638,271) as a result of the sale of one apartment during the year (one in 2023), and the company generated a pre-tax loss of £25,579 (2023 - pre-tax loss of £116,645).

Principal risks and uncertainties
 
The Board has been mindful of the potential impact of the recent economic climate on its business and on the financial status of its customers and suppliers. The Board considers that appropriate processes are in place to manage the Group’s relationships with all third parties to ensure the Group's exposure to potential losses is minimised. Specific financial risks and how these are mitigated are discussed further below in this report.
Competition 
Competition comes from the growing number of new build care homes in the area.  However these developments are designed to maximise profits by not employing Registered Nurses as well as utilising the entire foot map as income generating accommodation leaving very little or no outside space. It is widely acknowledged that spending time outside in nature has many benefits and therefore our 48 acres of formal gardens, ponds, lakes, an orchard as well as the woodland area (home to various local crafts people and a forest preschool), provide a sense of community and opportunities for interaction for the residents of Birtley House and the Mews and their families and friends; all of which undoubtably sets us apart from the competition. 
Regulatory
The groups’s activities are subject to a high level of regulation and inspection by the Care Quality Commission. The risk from the negative effects of any non-compliance is the impact which it may have on the company’s reputation and profits. The risks are mitigated by a strict management reporting regime that is part of a rigorous process of internal control over quality and compliance, along with investment in evolving policies and practices that take into account any changes in regulatory obligations. This is overseen by all Board members who are on site and involved in the business daily.
Cyber Security
With increased reliance on IT infrastructure the business will invest in ensuring it protects data and systems from external threats. The Directors remain committed to achieving and upholding the very highest standards for clients, their families and staff. 

Page 2

 
BIRTLEY HOUSE GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024

 
Financial instruments
The Group's significant financial instruments at the balance sheet date comprised bank loans and overdrafts, debentures and loans from Group undertakings. Operations are financed by a mixture or retained profits, bank borrowings and long-term loans. Long-term loans are at a fixed rate plus base rate and are used to finance capital investment. Working capital requirements are met principally out of floating rate overdrafts and retained profits.
It is, and has been throughout the year under review, the Group's policy that no trading in financial instruments shall be undertaken. 
The main risks arising from the Group's financial instruments are interest rate risk and liquidity risk.
Interest rate risk
The Group has a policy to manage any exposure to interest rate fluctuations so as to finance its operations through retained profits
.
Liquidity risk
The Group's objectives are to maintain a balance between continuity of funding and the flexible use of funding by way of overdrafts, loans and similar financial arrangements. Short-term flexibility is achieved by overdraft facilities.
Financial assets
The Group has no financial assets other than short term debtors and cash at bank.
Borrowing facilities
The Group has no undrawn committed borrowing facilities.

 



This report was approved by the board on 28 August 2025 and signed on its behalf.



___________________________
S Whalley
Director

Page 3

 
BIRTLEY HOUSE GROUP LIMITED
 

 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 AUGUST 2024

The directors present their report and the financial statements for the period ended 31 August 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company and group continued to be that of management of a nursing home at Birtley House, eight independent living apartments on the site of Birtley Nursing Home and the Birtley House property and residential care home.

Results and dividends

The profit for the period, after taxation, amounted to £395,569 (2023 - £202,948).

No dividends will be declared for the period.

Directors

The directors who served during the period were:

S Whalley 
C Whalley 
F Whalley 
T Whalley 
M Whalley 

Page 4

 
BIRTLEY HOUSE GROUP LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024

Provision of information under S414C (11)

Under S414C(11) of the Companies Act 2006, information not included in the Directors' Report is required to be shown in the Strategic Report. Information on the future developments, financial risk management, financial instruments and exposure to risk which is not shown in the Directors' Report is included within the Strategic Report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditor

The auditor, TWP Accounting LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 August 2025 and signed on its behalf.
 







S Whalley
Director

Page 5

 
BIRTLEY HOUSE GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRTLEY HOUSE GROUP LIMITED
 

Opinion


We have audited the financial statements of Birtley House Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 August 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 August 2024 and of the Group's profit for the period 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.


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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.


Page 6

 
BIRTLEY HOUSE GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRTLEY HOUSE GROUP LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
BIRTLEY HOUSE GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRTLEY HOUSE GROUP LIMITED (CONTINUED)


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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Obtain an understanding of the policies and procedures management has in place to detect and prevent
fraud and non-compliance with laws and regulations.
Enquire of management any cases of actual or suspected fraud and non-compliance with laws and
regulations.
Enquire of management and those charged with governance around actual and potential litigation and
claims. 
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.
Assess the key risk areas within the financial statements which are susceptible to fraud or error and design
our audit approach thereon.
Perform substantive tests on a sample of transactions throughout the financial statements to ensure that no
material errors have been identified.
Perform cut off tests on a sample of transactions to ensure income has been accounted for in the correct
period.
Review of after year end information to ensure expenditure have been accounted for in the correct period.
Perform analytical review procedures to identify any irregularities and investigation thereon.
Auditing the risk of management override of controls, including through testing journal entries and other
adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Page 8

 
BIRTLEY HOUSE GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRTLEY HOUSE GROUP LIMITED (CONTINUED)


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 2006Our 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.






Jonathan Graham (FCA) (Senior Statutory Auditor)
for and on behalf of
TWP Accounting LLP
Chartered Accountants & Statutory Auditors
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE

28 August 2025
Page 9

 
BIRTLEY HOUSE GROUP LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2024

2024
2023 (restated)
Note
£
£

  

Turnover
 3 
5,213,548
5,463,668

Cost of sales
  
(3,015,245)
(3,881,648)

Gross profit
  
2,198,303
1,582,020

Administrative expenses
  
(1,421,040)
(1,271,858)

Other operating income
 4 
-
52,573

Operating profit
 5 
777,263
362,735

Interest receivable and similar income
 9 
800
823

Interest payable and similar expenses
 10 
(234,570)
(190,299)

Profit before taxation
  
543,493
173,259

Tax on profit
 11 
(147,924)
29,689

Profit for the financial period
  
395,569
202,948

Profit for the period attributable to:
  

Owners of the parent Company
  
395,569
202,948

  
395,569
202,948

There were no recognised gains and losses for 2024 or 2023 (restated) other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023 (restated):£NIL).

The notes on pages 16 to 39 form part of these financial statements.

Page 10

 
BIRTLEY HOUSE GROUP LIMITED
REGISTERED NUMBER: 05814316

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2024

2024
2023 (restated)
Note
£
£

Fixed assets
  

Tangible assets
 13 
12,103,904
12,154,543

  
12,103,904
12,154,543

Current assets
  

Stocks
 15 
3,500
3,500

Debtors: amounts falling due within one year
 16 
523,766
470,924

Cash at bank and in hand
 17 
71,195
112,590

  
598,461
587,014

Creditors: amounts falling due within one year
 18 
(1,512,397)
(1,532,508)

Net current liabilities
  
 
 
(913,936)
 
 
(945,494)

Total assets less current liabilities
  
11,189,968
11,209,049

Creditors: amounts falling due after more than one year
 19 
(2,290,645)
(2,696,315)

Deferred taxation
 22 
(1,043,735)
(1,052,715)

  
 
 
(1,043,735)
 
 
(1,052,715)

Net assets
  
7,855,588
7,460,019


Capital and reserves
  

Called up share capital 
 23 
2,300
2,300

Share premium account
 24 
814,559
814,559

Revaluation reserve
 24 
4,948,310
4,948,310

Capital redemption reserve
 24 
998
998

Profit And loss account
 24 
2,089,421
1,693,852

  
7,855,588
7,460,019


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 August 2025.




___________________________
S Whalley
Director

The notes on pages 16 to 39 form part of these financial statements.

Page 11

 
BIRTLEY HOUSE GROUP LIMITED
REGISTERED NUMBER: 05814316

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024

2024
2023 (restated)
Note
£
£

Fixed assets
  

Tangible assets
 13 
11,893,496
11,911,410

Investments
 14 
2,196
2,196

  
11,895,692
11,913,606

Current assets
  

Debtors
 16 
-
1

Debtors: amounts falling due within one year
 16 
416,018
1,584,858

  
416,018
1,584,859

Creditors: amounts falling due within one year
 18 
(3,066,625)
(3,103,390)

Net current liabilities
  
 
 
(2,650,607)
 
 
(1,518,531)

Total assets less current liabilities
  
9,245,085
10,395,075

  

Creditors: amounts falling due after more than one year
 19 
(2,286,918)
(2,686,589)

Provisions for liabilities
  

Deferred taxation
 22 
(1,011,014)
(1,011,980)

  
 
 
(1,011,014)
 
 
(1,011,980)

Net assets
  
5,947,153
6,696,506


Capital and reserves
  

Called up share capital 
 23 
2,300
2,300

Share premium account
 24 
99
99

Capital redemption reserve
 24 
998
998

Profit and loss account
  
5,943,756
6,693,109

  
5,947,153
6,696,506


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 August 2025.


___________________________
S Whalley
Director

The notes on pages 16 to 39 form part of these financial statements.

Page 12

 
BIRTLEY HOUSE GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2024


Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£
£


At 1 September 2022
2,300
814,559
998
4,948,310
1,526,904
7,293,071


Comprehensive income for the year

Profit for the year

-
-
-
-
202,948
202,948


Other comprehensive income for the year
-
-
-
-
-
-


Total comprehensive income for the year
-
-
-
-
202,948
202,948


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
-
(36,000)
(36,000)


Total transactions with owners
-
-
-
-
(36,000)
(36,000)



At 1 September 2023
2,300
814,559
998
4,948,310
1,693,852
7,460,019


Comprehensive income for the period

Profit for the period

-
-
-
-
395,569
395,569


Other comprehensive income for the period
-
-
-
-
-
-


Total comprehensive income for the period
-
-
-
-
395,569
395,569


Total transactions with owners
-
-
-
-
-
-


At 31 August 2024
2,300
814,559
998
4,948,310
2,089,421
7,855,588


The notes on pages 16 to 39 form part of these financial statements.

Page 13

 
BIRTLEY HOUSE GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2024


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 September 2022
2,300
99
998
6,406,618
6,410,015


Comprehensive income for the year

Profit for the year
-
-
-
322,491
322,491
Total comprehensive income for the year
-
-
-
322,491
322,491


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(36,000)
(36,000)


Total transactions with owners
-
-
-
(36,000)
(36,000)



At 1 September 2023
2,300
99
998
6,693,109
6,696,506


Comprehensive income for the year

Loss for the period
-
-
-
(749,353)
(749,353)
Total comprehensive income for the period
-
-
-
(749,353)
(749,353)


At 31 August 2024
2,300
99
998
5,943,756
5,947,153


The notes on pages 16 to 39 form part of these financial statements.

Page 14

 
BIRTLEY HOUSE GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2024

2024
2023 (restated)
£
£

Cash flows from operating activities

Profit for the financial period
395,569
202,948

Adjustments for:

Depreciation of tangible assets
58,925
55,868

Loss on disposal of tangible assets
11,904
-

Government grants
-
(34,573)

Interest paid
233,916
189,782

Interest received
(800)
(823)

Taxation charge
147,924
(29,689)

(Increase) in debtors
(35,511)
(118,774)

(Decrease)/increase in creditors
(11,142)
190,646

Corporation tax (paid)/received
(155,161)
58,699

Net cash generated from operating activities

645,624
514,084


Cash flows from investing activities

Purchase of tangible fixed assets
(19,553)
(39,585)

Interest received
800
823

Net cash from investing activities

(18,753)
(38,762)

Cash flows from financing activities

Repayment of loans
(128,325)
(143,733)

Repayment of finance leases
(7,251)
(15,119)

Dividends paid
-
(36,000)

Interest paid
(233,916)
(189,782)

Finance lease interest paid
(654)
(517)

Net cash used in financing activities
(370,146)
(385,151)

Net increase in cash and cash equivalents
256,725
90,171

Cash and cash equivalents at beginning of period
(229,404)
(319,575)

Cash and cash equivalents at the end of period
27,321
(229,404)


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
71,195
112,590

Bank overdrafts
(43,874)
(341,994)

27,321
(229,404)


Page 15

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

1.


General information

Birtley House Group Ltd ("the company'') is a private limited company domiciled and incorporated in England and Wales. The registered office is Birtley House, Birtley Road, Bramley, Guildford, Surrey GU5 OLB.
The group consists of Birtley House Group Ltd and all of its subsidiaries.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

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 at fair value. The principal accounting policies adopted are set out below.

 
2.2

Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Birtley House Group Ltd together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 August 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.

Page 16

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.3

Going concern

After reviewing the Company's and the group's forecasts and projections and taking into account the economic conditions  and possible changes in trading performance, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.
In arriving at this assessment, the Directors have prepared detailed financial projections to July 2026  factoring in the recent reduced Bank of England interest rate, however have taken a precautionary view. 
The Directors have a good working relationship with their bank and have no reason to believe the bank's future support will change.  Bank covenants are reviewed regularly to ensure these are not breached and at the date of signing these accounts no such instance has been noted.
The Board work with our local Care Association to build on the increasing awareness of the importance of care for the future and to identify and implement new models of care to meet the need for better integration with the NHS.
After considering the above matters and current trading, the Directors believe that the company will continue to have adequate resources to meets its liabilities as they fall due and so to operate as a going concern for at least  twelve months following the date of approval of these financial statements. The Directors therefore consider it appropriate to continue to apply the going concern basis for preparing the financial statements.

 
2.4

Turnover

Turnover for the group comprises revenue recognised from the sale of apartments, fees receivable from the operation of the company's care home, service charges for other services rendered during the year and other fees receivable from events and functions that have taken place during the year. All sales are recognised in the period to which they relate, and exclude value added tax.
Licence fees received on assignment of the West Wing apartments had been held as returnable debentures within liabilities until the year ended 31 August 2009. Following an alteration to the legal contracts agreed with the resident on commencement of occupancy, the directors consider that recognition as income more accurately reflects the nature of the transaction and have treated such fees on this basis within the financial statements for all agreements under the new form of contract. Any sales completed under the old format of legal agreement have continued to be treated on a returnable debenture basis.

 
2.5

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.

Page 17

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.6

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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 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 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.

Page 18

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

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:


Plant and machinery
-
10%
on cost
Motor vehicles
-
25%
on reducing balance
Fixtures and fittings
-
10%
and 33% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Revaluation of fixed assets
Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
The freehold properties used by it's subsidiaries are recognised in the company as investment properties and any associated gains and losses and deferred taxation thereon are recognised in the profit and loss reserve.
The freehold properties used by it's subsidiaries are recognised in the group as tangible fixed assets and any associated gains and losses and deferred taxation thereon are recognised in the revaluation reserve.

Page 19

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.9

Current and deferred 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.


 
2.10

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.11

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

Page 20

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.12

Fixed asset investments

Interests in subsidiaries are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.
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.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.16

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.
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.
 
Page 21

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)

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 and loans from fellow group, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 22

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.19

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

  
2.20

Retirement benefits

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

  
2.21

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.
Critical judgements/estimates
The following judgements/estimates have had the most significant effect on amounts recognised in the financial statements:
- Revaluing the properties and the calculation of deferred taxation in this respect.
The directors do not believe there are any other key judgements or estimations used in preparing these financial statements.

Page 23

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

3.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023 (restated)
£
£

Sales of flats/apartments
392,601
1,410,000

Service charges
232,029
221,391

Sales of service
4,582,390
3,830,400

Other income
6,528
1,877

5,213,548
5,463,668


All turnover arose within the United Kingdom.


4.


Other operating income

2024
2023 (restated)
£
£

Government grants receivable
-
34,573

Sundry income
-
18,000

-
52,573



5.


Operating profit

The operating profit is stated after charging:

2024
2023 (restated)
£
£

Other operating lease rentals
22,368
18,891

Share-based payment
226,237
234,123

248,605
253,014


6.


Auditor's remuneration

2024
2023 (restated)
£
£

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
19,200
39,840

Page 24

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023 (restated)
2024
2023 (restated)
£
£
£
£


Wages and salaries
2,485,099
2,391,987
435,017
410,735

Social security costs
202,091
226,062
47,748
42,007

Cost of defined contribution scheme
41,154
30,690
-
-

2,728,344
2,648,739
482,765
452,742


The average monthly number of employees, including the directors, during the period was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Directors
5
5
5
5



Administration
4
4
-
-



Activites
7
7
-
-



Housekeeping
11
11
-
-



Kitchen
8
8
-
-



Nursing
35
35
-
-



Wardens
4
4
-
-



Management
1
1
-
-



Group
3
3
-
-

78
78
5
5




8.


Directors' remuneration

2024
2023 (restated)
£
£

Directors' emoluments
309,709
288,396

Group contributions to defined contribution pension schemes
1,085
1,256

310,794
289,652


The highest paid director received remuneration of £108,345 (2023 - £99,945).

Page 25

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

9.


Interest receivable

2024
2023 (restated)
£
£


Other interest receivable
800
823

800
823


10.


Interest payable and similar expenses

2024
2023 (restated)
£
£


Bank interest payable
20,469
21,307

Other loan interest payable
208,718
168,475

Finance leases and hire purchase contracts
654
517

Other interest payable
4,729
-

234,570
190,299


11.


Taxation


2024
2023 (restated)
£
£


Current tax on profits for the year
149,088
39,841

Adjustments in respect of previous periods
7,816
-


156,904
39,841


Total current tax
156,904
39,841

Deferred tax


Origination and reversal of timing differences
(8,980)
(69,530)

Total deferred tax
(8,980)
(69,530)


Tax on profit
147,924
(29,689)
Page 26

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024
 
11.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023 (restated)
£
£


Profit on ordinary activities before tax
543,493
173,259


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
135,873
43,315

Effects of:


Capital allowances for period/year in excess of depreciation
8,588
(1,935)

Short term timing difference leading to an (decrease)/increase in taxation
(8,980)
(69,530)

Other timing differences leading to an increase (decrease) in taxation
12,443
(1,539)

Total tax charge for the period/year
147,924
(29,689)


12.


Dividends

2024
2023 (restated)
£
£


Interim paid
-
36,000

-
36,000

Page 27

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

13.


Tangible fixed assets

Group






Freehold commercial property
Freehold land and buildings
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£
£



Cost or valuation


At 1 September 2023
11,281,094
600,000
356,199
79,402
593,168
12,909,863


Additions
-
-
12,370
-
7,183
19,553


Disposals
(10,494)
-
(7,860)
-
-
(18,354)



At 31 August 2024

11,270,600
600,000
360,709
79,402
600,351
12,911,062



Depreciation


At 1 September 2023
-
-
241,503
57,528
456,289
755,320


Charge for the period on owned assets
-
-
29,215
5,468
23,606
58,289


Disposals
-
-
(6,451)
-
-
(6,451)



At 31 August 2024

-
-
264,267
62,996
479,895
807,158



Net book value



At 31 August 2024
11,270,600
600,000
96,442
16,406
120,456
12,103,904



At 31 August 2023 (restated)
11,281,094
600,000
114,696
21,874
136,879
12,154,543

Page 28

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

           13.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023 (restated)
£
£



Plant and machinery
6,011
12,023

Motor vehicles
10,797
14,396

16,808
26,419



If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2024
2023 (restated)
£
£

Group


Cost
5,894,735
5,905,228

Accumulated depreciation
(1,199,516)
(1,118,722)

Net book value
4,695,219
4,786,506

Page 29

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

           13.Tangible fixed assets (continued)


Company






Investment Property
Freehold land and buildings
Motor vehicles
Fixtures, fittings and equipment
Total

£
£
£
£
£

Cost or valuation


At 1 September 2023
11,281,094
600,000
9,378
440,170
12,330,642


Additions
-
-
-
6,704
6,704


Disposals
(10,494)
-
-
-
(10,494)



At 31 August 2024

11,270,600
600,000
9,378
446,874
12,326,852



Depreciation


At 1 September 2023
-
-
9,073
410,159
419,232


Charge for the period on owned assets
-
-
76
14,048
14,124



At 31 August 2024

-
-
9,149
424,207
433,356



Net book value



At 31 August 2024
11,270,600
600,000
229
22,667
11,893,496



At 31 August 2023 (restated)
11,281,094
600,000
305
30,011
11,911,410

Freehold land and buildings and investment properties with an original cost of £5,894,735 consist of various elements which were revalued on the basis of market value at 12 July 2023 by Coverwood Chartered Surveyors & Property Agents. The valuers reconfirmed that the market value they determined at 12 July 2023 remains appropriate at 31 August 2024. Coverwood Chartered Surveyors & Property Agents are independent valuers not connected with the group. The valuations conformed to International Valuation Standards and were based on recent market transactions at the time on arm's length terms for comparable properties.
The directors considered this value to be applicable as at 31 August 2022 and therefore revalued the freehold land and buildings to £11,860,000 as at that date and have applied subsequent depreciation on this amount since this date. The directors also consider the valuation to be appropriate as at 31 August 2024.






If the land and buildings had not been included at valuation they would have been included under the historical cost convention in line with the amounts disclosed at group level.

Page 30

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2023
2,196



At 31 August 2024
2,196





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Eyhurst Court Limited
Ordinary
100
Birtley Mews Limited
Ordinary
100

The registered office for the above subsidiary undertakings is Blrtley House, Bramley, Guildford, Surrey GUS 0LB.


15.


Stocks

Group
Group
2024
2023 (restated)
£
£

Stock
3,500
3,500

3,500
3,500


Page 31

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

16.


Debtors

Group
Group
Company
Company
2024
2023 (restated)
2024
2023 (restated)
£
£
£
£


Trade debtors
87,751
23,571
-
-

Amounts owed by group undertakings
-
-
-
1,157,312

Other debtors
369,857
352,539
351,226
345,568

Prepayments and accrued income
66,158
94,814
64,792
81,978

523,766
470,924
416,018
1,584,858



17.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023 (restated)
2024
2023 (restated)
£
£
£
£

Cash at bank and in hand
71,195
112,590
-
-

Less: bank overdrafts
(43,874)
(341,994)
(43,874)
(341,994)

27,321
(229,404)
(43,874)
(341,994)


Page 32

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023 (restated)
2024
2023 (restated)
£
£
£
£

Debenture loans
150,000
-
150,000
-

Bank overdrafts
43,874
341,994
43,874
341,994

Bank loans
333,208
211,863
333,208
211,863

Trade creditors
148,034
195,820
76,782
88,079

Amounts owed to group undertakings
-
-
2,443,237
2,439,961

Corporation tax
149,088
130,028
-
143

Other taxation and social security
49,941
57,643
-
-

Obligations under finance lease and hire purchase contracts
4,203
5,455
-
-

Other creditors
465,739
367,315
-
5,000

Accruals and deferred income
168,310
222,390
19,524
16,350

1,512,397
1,532,508
3,066,625
3,103,390


The debenture loans are interest free and repayable on demand, subject to the grant of a new debenture and a new licence by the company to a new resident on substantially the same terms as the original debenture and for a loan amount at least equal to the debenture sum repaid. The directors expect the debenture to be repaid within one year of the balance sheet date. 
The debenture loans are secured by the group and company by way of floating charge over the group's and company's assets.
The obligations under finance leases are secured on the assets to which they relate.

Page 33

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023 (restated)
2024
2023 (restated)
£
£
£
£

Debentures loans
-
150,000
-
150,000

Bank loans
2,286,918
2,536,589
2,286,918
2,536,589

Net obligations under finance leases and hire purchase contracts
3,727
9,726
-
-

2,290,645
2,696,315
2,286,918
2,686,589


The debenture loans are interest free and repayable on demand, subject to the grant of a new debenture and a new licence by the company to a new resident on substantially the same terms as the original debenture and for a loan amount at least equal to the debenture sum repaid. The directors expect the debenture to be repaid within one year of the balance sheet date and as such has been reclassified as a current liability at year end.
Secured Debts
Debenture loans are secured by the group and company by way of floating charge over the group's and company's assets.
The bank loans are secured by the bank on the freehold property, together with a fixed and floating charge over the group's and company's assets.
The obligations under finance leases are secured on the assets to which they relate.

Page 34

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

20.


Loans and overdrafts


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023 (restated)
2024
2023 (restated)
£
£
£
£

Amounts falling due within one year

Bank loans
333,208
211,863
333,208
211,863

Bank overdraft
43,874
341,994
43,874
341,994

Debenture loans
150,000
-
150,000
-


527,082
553,857
527,082
553,857

Amounts falling due 1-2 years

Bank loans
2,286,918
2,536,589
2,286,918
2,536,589

Debenture loans
-
150,000
-
150,000


2,286,918
2,686,589
2,286,918
2,686,589



2,814,000
3,240,446
2,814,000
3,240,446



21.


Hire purchase and finance leases


Group
Group
2024
2023 (restated)
£
£


Within one year
9,726
5,455

Between 2-5 years
-
9,726

9,726
15,181

Finance lease payments represent rentals payable by the Group for certain items of plant and machinery and motor vehicles. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Page 35

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

22.


Deferred taxation


Group



2024
2023 (restated)


£

£






At beginning of year
(1,052,717)
(1,122,247)


Movement during the year
8,980
69,530



At end of year
(1,043,737)
(1,052,717)

Company


2024
2023 (restated)


£

£






At beginning of year
(1,011,981)
(1,081,727)


Movement during the year
967
69,746



At end of year
(1,011,014)
(1,011,981)

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2024
2023 (restated)
2024
2023 (restated)
£
£
£
£


Accelerated capital allowances
(16,182)
(25,162)
16,541
15,574

Deferred tax on revaluation gains
(1,027,555)
(1,027,555)
(1,027,555)
(1,027,555)

(1,043,737)
(1,052,717)
(1,011,014)
(1,011,981)


23.


Share capital

2024
2023 (restated)
£
£
Allotted, called up and fully paid



1,100 (2023 - 1,100) Ordinary A shares of £1 each
1,100
1,100
1,200 (2023 - 1,200) Ordinary B shares of £1 each
1,200
1,200

2,300

2,300

Page 36

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

23.Share capital (continued)

The A shares confer upon the holders the right to receive dividends and other distributions out of distributable profits or assets of the company as at 31 August 2008, but do not confer the right to any further participation in the profits or assets of the company.
The B shares confer upon the holders the right to receive dividends and other distributions out of distributable profits or assets of the company accumulated since 1 September 2008 and all future profits or assets of the company.
The holders of B shares are entitled to one vote per share held on all resolutions proposed. The holders of A shares are not entitled to vote on general matters, however, they are entitled to one vote per share held on certain resolutions specifically provided in the Articles of Association. These resolutions cover amendments to the articles, amendments to rights attached to shares, the allotment or issue of shares and the declaration or payment of dividends on the A shares only.



24.


Reserves

Revaluation reserve

The revaluation reserve represents the cumulate effect of revaluations of tangible fixed assets where a policy of revaluation has been adopted.

Capital redemption reserve

The capital redemption reserve represents the accumulative ordinary share capital repurchased and subsequently cancelled by the company.

Profit and loss account

The profit and loss accounts represent cumulative profits and losses,net of dividends and other adjustments. The company only includes the cumulative effect of revaluations of investment properties and deferred taxation thereon totalling £4,948,310 which is not available for distribution as dividends until the properties are sold.

25.


Analysis of net debt





At 1 September 2023
Cash flows
Other non-cash changes
At 31 August 2024
£

£

£

£

Cash at bank and in hand

112,590

(41,395)

-

71,195

Bank overdrafts

(341,994)

298,120

-

(43,874)

Debt due after 1 year

(2,686,589)

-

399,670

(2,286,919)

Debt due within 1 year

(211,863)

211,863

(483,208)

(483,208)

Finance leases

(15,181)

7,251

-

(7,930)


(3,143,037)
475,839
(83,538)
(2,750,736)

Page 37

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

26.


Prior year adjustment

Company
A prior year adjustment has been made to reclassify the element of land and buildings which was rented to group entities as investment property. This has resulted in the removal of the prior year depreciation of £178,255 charged on the property as it is now held under investment property. The remainder of the property classified as land and buildings represents the element not rented to group entities. A further prior year adjustment has been made to deferred tax to represent the change in valuation used, this has resulted in a decrease to the deferred tax liability position of £25,344. As a result, this has reduced the profit and loss reserve brought forward in the current year by £203,599. There is no tax impact on this adjustment as it relates to depreciation and deferred tax. 
Group
A prior year adjustment has been made to land and buildings to reflect the fair value as at the respective year end, which has resulted in the removal of the prior year depreciation charge to the property of £178,255. A further prior year adjustment has been made to deferred tax to represent the change in valuation used when calculating the estimate, this has resulted in an increase to the deferred tax liability position of £80,657. There is no tax impact on this adjustment as it relates to depreciation and deferred tax. These prior year adjustments has increased the current year profit and loss reserve brought forward in the amount of £97,598. As the property is held as a freehold property within the group financial statements, any revaluation on the properties and deferred tax thereon should be reflected within the revaluation reserve and not the profit and loss reserve. As a result, a prior year reclassification from the profit and loss reserve to the revaluation reserve in the amount of £4,948,310 has been made. Such adjustment has been correctly reflected in the current year financial statements as shown within the consolidated statement of changes in equity. 


27.


Financial commitments, guarantees and contingent liabilities

Birtley Mews Limited ("BML") has given security to Stevens & Bolton Trustees Limited over the proceeds of future sales of apartments by BML up to the value of the amounts received from the sales of apartments by BML to the current residents. The aggregate of these amounts at 31 August 2024 was £3,390,000 (2023 : £3,425,000). The security given to Stevens & Bolton Trustees Limited by BML shall be in priority to any other security given by BML to its bankers.
Birtley House Group Limited ("BHGL") has given security in the form of individually registered legal charges over the West Wing apartments sold, excluding amounts held as returnable debentures (within creditors due in more than one year). The potential additional liability to BHGL is limited to the lower of the sum paid by the existing resident, the aggregate of which, at 31 August 2024, amounted to £4,540,000 (2023: £4,540,000), and the sum obtained on resale. However, this is contingent upon the apartment concerned being resold and an equivalent payment received from the purchaser, otherwise no liability to the current resident will arise.


28.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £41,154 (2023 - £30,690). Contributions totalling £17,958 (2023 - £8,267) were payable to the fund at the balance sheet date and are included in group other creditors.

Page 38

 
BIRTLEY HOUSE GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024

29.


Commitments under operating leases

At 31 August 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023 (restated)
£
£

Not later than 1 year
-
1,906

-
1,906


30.


Related party transactions

The company has taken advantage of the 33.1A exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.
Birtley Estates Management Limited is a company under the control of Mr S Whalley and Mrs C Whalley, directors of Birtley House Group Limited. During the year, £39,500 (2023 : £39,500) was paid to Birtley Estates Management Limited in respect of rent and £127,716 (2023 : £139,098) was paid in respect of ground maintenance. In addition, a management charge of £19,781 (2023 : £18,000) was paid from Birtley Estates Management Limited. At 31 August 2024, an outstanding balance receivable of £297,712 (2023:   £326,567) was included in other debtors.


31.


Directors' transactions

At 31 August 2024, included within debtors is an amount due from Mr F Whalley of £10,400 (2023 : £10,400). The loan accrues interest at a rate of 4% per annum until such time as the loan is repaid in full. During the year the company received £400 (2023 : £400) in interest in respect of the loan outstanding.
At 31 August 2024, included within debtors is an amount due from Mrs M Whalley of £11,656 (2023 : £11,422). The loan accrues interest at a rate of 4% per annum until such time as the loan is repaid in full. During the year, the company received £400 (2023 : £423) in interest in respect of the loan outstanding.


32.


Controlling party

The ultimate controlling parties are the directors Mr S Whalley, Mrs C Whalley, Mr T Whalley and Mr F Whalley together, by virtue of their controlling interest in the share capital of the company.


Page 39