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Registered number: 02796155









Foxholes Nursing Home Limited









Annual report and financial statements

For the Year Ended 31 August 2024

 
Foxholes Nursing Home Limited
 
 
Company Information


Director
Usha Gandecha 




Company secretary
Neeti Gandecha (appointed 25/01/2025)



Registered number
02796155



Registered office
Pirton Road
Hitchin

Herts

SG5 2EN




Independent auditors
Mantax Lynton
Chartered Accountants & Statutory Auditors

2nd Floor Equitable House

7 General Gordon Square

London

United Kingdom




Accountants
Base52 Ltd t/as 3E'S Accountants
Suite 9, 30 Bancroft

Hitchin

SG5 1LE





 
Foxholes Nursing Home Limited
 

Contents



Page
Strategic report
1
Director's report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 26


 
Foxholes Nursing Home Limited
 
 
Strategic report
For the Year Ended 31 August 2024

Introduction
 
The director present the strategic report for the year ended 31 August 2024.

Business review
 
Principal activity
The principal activity of the company was operating a residential care home.

Principal risks and uncertainties
 
The business is faced with a number of risks and uncertainties, including the following:
Price Risk
The Company operates in a competitive industry and manages the risk this poses though continued investment in people, equipment, and service offering.
Credit risk
The Company is primarily exposed to credit risk from credit sales. It is Company policy that all new customers are reviewed for credit worthiness and appropriate credit limits are established at the outset of any new customer relationship. Ongoing monitoring involved the services of an external credit agency which provide alerts to changes in financial circumstances.
Liquidity risk
The Company actively manages working capital and its debt facilities through rolling cash flow projections and live cash reporting. The policies seek to ensure sufficient liquidity is available to meet the working capital needs of the business whilst maintaining a healthy level of investment and re-investment.
Cash flow risk
The Company finances its operations through a mixture of retained profits and cash balances as well as secured bank and hire purchase debt. Debt facilities are subject to a mixture of fixed and variable rate interest in order to mitigate risk associated with rising interest rates whilst providing opportunity for upside potential should interest rates fall.

Financial key performance indicators
 
The business has performed well in the year with turnover of £5,872,588 (2023: £5,927,168). Profit before tax for
the period was £2,308,162 (2023: £2,321,224). The company's balance sheet remained strong in the year with net assets standing at £9,971,155 at the end of the year (2023: £8,072,383).

Other key performance indicators
 
The turnover, gross margin, operating profit and net assets are considered as the key performance indicators by the Company.


This report was approved by the board on 29 August 2025 and signed on its behalf.



Usha Gandecha
Director

Page 1

 
Foxholes Nursing Home Limited
 
 
 
Director's report
For the Year Ended 31 August 2024

The director presents her report and the financial statements for the year ended 31 August 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:


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

make judgments and accounting estimates that are reasonable and prudent;

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

The director is 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 to enable her to ensure that the financial statements comply with the Companies Act 2006She is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,898,772 (2023 - £1,819,964).

No dividends will be distributed for the year ended 31 August 2024 (2023: £nil).

Director

The director who served during the year was:

Usha Gandecha 

Page 2

 
Foxholes Nursing Home Limited
 
 
 
Director's report (continued)
For the Year Ended 31 August 2024

Future developments

The Company continued to operate Foxholes Care Home in Hitchin alongside Sloe Hill Lodge as high-quality residential care homes. Average occupancy for the financial year was approximately 70%. Following recent inspections, both homes are rated “Good” by the Care Quality Commission.
During the year the Company advanced a major programme to enhance the grounds and outdoor amenity at Foxholes, with total investment of approximately £1.3 million. The programme supports accessibility, safety and resident wellbeing, and includes new paths with improved grip, specialist lighting, water features and extensive planting. A 110,000-litre rainwater harvesting and irrigation system was installed to improve sustainability and reduce potable water use.
In addition, a 59 kW solar installation has been completed. The Board is evaluating further efficiency measures, including high-efficiency heat pumps and on?site battery storage, to reduce operating costs and increase resilience. Landscaping costs have largely been paid; the lighting phase is expected to reach practical completion in the first quarter of the next financial year, subject to seasonal light conditions and establishment of new planting.
At Sloe Hill, continual property investment has been required due to the condition inherited from the previous owner. The Company is considering new planning applications to improve and enhance the building, with particular emphasis on fire prevention and safety measures. Depending on feasibility, a replacement building with a larger car park may be considered, which could support a higher bed capacity. No commitment has been made at this stage; any scheme would be progressed prudently and remains subject to planning, demand and funding.
Operational priorities remain focused on quality of care, compliance, prudent cost control and clear pricing/room?mix management to support sustainable occupancy and cash flows.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as she is aware, there is no relevant audit information of which the Company's auditors are unaware, and

she 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's auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsMantax Lyntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 August 2025 and signed on its behalf.
 





Usha Gandecha
Director

Page 3

 
Foxholes Nursing Home Limited
 
 
 
Independent auditors' report to the members of Foxholes Nursing Home Limited
 

Opinion


We have audited the financial statements of Foxholes Nursing Home Limited (the 'Company') for the year ended 31 August 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the 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 Company's affairs as at 31 August 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.


Page 4

 
Foxholes Nursing Home Limited
 
 
 
Independent auditors' report to the members of Foxholes Nursing Home Limited (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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 Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's responsibilities statement set out on page 2, the director is 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 director determines 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 director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
Foxholes Nursing Home Limited
 
 
 
Independent auditors' report to the members of Foxholes Nursing Home Limited (continued)


Auditors' 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 Auditors' 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.


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:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and relevant taxation legislation.

We identified the greatest risks of material impact on the financial statements from irregularities, including fraud, to be override of controls by management, inappropriate revenue recognition, carrying value of intangibles and going concern. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, reviewing accounting estimates for biases, corroborating revenue recognised by the company through agreements to supporting documentation and ensuring accounting policies are appropriate under United Kingdom Generally Accepted Accounting Practice and applicable law.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.


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 Auditors' report.


Page 6

 
Foxholes Nursing Home Limited
 
 
 
Independent auditors' report to the members of Foxholes Nursing Home 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 Auditors' 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.





Mr. Janak Raj Pokhrel (Senior statutory auditor)
  
for and on behalf of
Mantax Lynton
 
Chartered Accountants & Statutory Auditors
  
2nd Floor Equitable House
7 General Gordon Square
London
United Kingdom

29 August 2025
Page 7

 
Foxholes Nursing Home Limited
 
 
Statement of comprehensive income
For the Year Ended 31 August 2024

2024
2023
Note
£
£

  

Turnover
 4 
5,872,588
5,927,168

Cost of sales
  
(334,294)
(277,658)

Gross profit
  
5,538,294
5,649,510

Administrative expenses
  
(3,357,203)
(3,264,501)

Other operating income
 5 
11,170
29,926

Operating profit
  
2,192,261
2,414,935

Fair value movements
  
324,252
105,853

Interest receivable and similar income
 8 
48,972
13,747

Interest payable and similar expenses
 9 
(257,323)
(213,311)

Profit before tax
  
2,308,162
2,321,224

Tax on profit
 10 
(409,390)
(501,260)

Profit for the financial year
  
1,898,772
1,819,964

Other comprehensive income for the year
  

Total comprehensive income for the year
  
1,898,772
1,819,964

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

The notes on pages 13 to 26 form part of these financial statements.

Page 8

 
Foxholes Nursing Home Limited
Registered number: 02796155

Statement of financial position
As at 31 August 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
1
1

Tangible assets
 12 
9,372,343
8,492,708

Investments
 13 
1,041,364
631,983

  
10,413,708
9,124,692

Current assets
  

Debtors: amounts falling due within one year
 14 
503,281
492,058

Cash at bank and in hand
 15 
3,466,694
3,242,378

  
3,969,975
3,734,436

Creditors: amounts falling due within one year
 16 
(1,543,327)
(1,595,987)

Net current assets
  
 
 
2,426,648
 
 
2,138,449

Total assets less current liabilities
  
12,840,356
11,263,141

Creditors: amounts falling due after more than one year
 17 
(2,869,201)
(3,190,758)

  

Net assets
  
9,971,155
8,072,383


Capital and reserves
  

Called up share capital 
 20 
2
2

Profit and loss account
 21 
9,971,153
8,072,381

  
9,971,155
8,072,383


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 August 2025.




Usha Gandecha
Director

The notes on pages 13 to 26 form part of these financial statements.

Page 9

 
Foxholes Nursing Home Limited
 

Statement of changes in equity
For the Year Ended 31 August 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 September 2022
2
6,252,417
6,252,419


Comprehensive income for the year

Profit for the year

-
1,819,964
1,819,964


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,819,964
1,819,964


Total transactions with owners
-
-
-



At 1 September 2023
2
8,072,381
8,072,383


Comprehensive income for the year

Profit for the year

-
1,898,772
1,898,772


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,898,772
1,898,772


Total transactions with owners
-
-
-


At 31 August 2024
2
9,971,153
9,971,155


The notes on pages 13 to 26 form part of these financial statements.

Page 10

 
Foxholes Nursing Home Limited
 

Statement of cash flows
For the Year Ended 31 August 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
2,308,162
2,321,224

Adjustments for:

Depreciation of tangible assets
193,124
217,700

Government grants
-
(27,520)

Interest paid
257,323
213,311

Interest received
(48,972)
(13,747)

Decrease in debtors
12,586
14,489

Increase in creditors
14,278
76,058

Net fair value (gains) recognised in P&L
(324,252)
(105,853)

Corporation tax (paid)
(462,845)
(346,048)

Net cash generated from operating activities

1,949,404
2,349,614


Cash flows from investing activities

Purchase of tangible fixed assets
(1,072,759)
(259,791)

Purchase of listed investments
(85,129)
(116,373)

Interest received
48,972
13,747

Net cash from investing activities

(1,108,916)
(362,417)

Cash flows from financing activities

Repayment of loans
(358,849)
(389,771)

Interest paid
(257,323)
(213,311)

Government grants
-
27,520

Net cash used in financing activities
(616,172)
(575,562)

Net increase in cash and cash equivalents
224,316
1,411,635

Cash and cash equivalents at beginning of year
3,242,378
1,830,743

Cash and cash equivalents at the end of year
3,466,694
3,242,378


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,466,694
3,242,378

3,466,694
3,242,378


The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
Foxholes Nursing Home Limited
 

Analysis of Net Debt
For the Year Ended 31 August 2024




At 1 September 2023
Cash flows
At 31 August 2024
£

£

£

Cash at bank and in hand

3,242,378

224,316

3,466,694

Debt due after 1 year

(3,190,758)

321,557

(2,869,201)

Debt due within 1 year

(418,772)

27,530

(391,242)


(367,152)
573,403
206,251

The notes on pages 13 to 26 form part of these financial statements.

Page 12

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

1.


General information

Foxholes Nursing Home Limited is a company, limited by shares, registered in England and Wales. The company's registration number is 02796155 and has its registered office address at Pirton Road, Hitchin, Herts, SG5 2EN.

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.3

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 13

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 14

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

2.Accounting policies (continued)

 
2.9

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.10

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property
-
over 100 years straight line
Plant and machinery
-
15%
Reducing balance
Motor vehicles
-
15%
Reducing balance

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.

Page 15

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

2.Accounting policies (continued)

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the 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 Company's cash management.

 
2.14

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.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement
Page 16

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)

of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amount reported. These estimates and judgments are continually reviewed and are based on experience and other factors including expectations of future events that are believed to be reasonable under the circumstances.

Page 17

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

4.


Turnover

2024
2023
£
£

Residential care
5,872,588
5,927,168

5,872,588
5,927,168


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Government grants receivable
-
27,520

Sundry income
11,170
2,406

11,170
29,926



6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
10,200
12,000
Page 18

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
2,000,150
2,030,948

Social security costs
180,774
141,562

Cost of defined contribution scheme
40,505
150,174

2,221,429
2,322,684


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Care staff
60
50



Admin and management
26
26

86
76


8.


Interest receivable

2024
2023
£
£


Other interest receivable
48,972
13,747

48,972
13,747


9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
257,323
213,311

257,323
213,311

Page 19

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
445,600
482,305

Adjustments in respect of previous periods
(12,401)
-


433,199
482,305


Total current tax
433,199
482,305

Deferred tax


Origination and reversal of timing differences
(23,809)
18,955

Total deferred tax
(23,809)
18,955


Tax on profit
409,390
501,260

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 21.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,308,162
2,321,224


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.5%)
577,041
499,411

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
575
4,046

Capital allowances for year in excess of depreciation
(51,027)
1,606

Adjustments to tax charge in respect of prior periods
(12,401)
-

Fair value movements
(80,989)
(22,758)

Deferred tax
(23,809)
18,955

Total tax charge for the year
409,390
501,260

Page 20

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024
 
10.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Intangible assets



Goodwill

£



Cost


At 1 September 2023
1



At 31 August 2024

1






Net book value



At 31 August 2024
1



Page 21

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

12.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 September 2023
8,711,339
2,799,429
256,959
11,767,727


Additions
1,007,542
65,217
-
1,072,759



At 31 August 2024

9,718,881
2,864,646
256,959
12,840,486



Depreciation


At 1 September 2023
938,184
2,258,352
78,483
3,275,019


Charge for the year on owned assets
75,408
90,944
26,772
193,124



At 31 August 2024

1,013,592
2,349,296
105,255
3,468,143



Net book value



At 31 August 2024
8,705,289
515,350
151,704
9,372,343




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
8,705,289
7,773,155

8,705,289
7,773,155


Page 22

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

13.


Fixed asset investments





Listed investments
Cryptocurrencies
Total

£
£
£



Cost or valuation


At 1 September 2023
264,762
367,221
631,983


Additions
85,129
-
85,129


Revaluations
(28,283)
352,535
324,252



At 31 August 2024
321,608
719,756
1,041,364





Listed investments


The fair value of the listed investments at 31 August 2024 was £321,608 (2023 - £264,762).



14.


Debtors

2024
2023
£
£


Trade debtors
421,000
441,413

Other debtors
9,867
11,300

Prepayments and accrued income
34,045
24,785

Deferred taxation
38,369
14,560

503,281
492,058



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
3,466,694
3,242,378

3,466,694
3,242,378


Page 23

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
381,480
418,772

Corporation tax
452,659
482,305

Other taxation and social security
33,810
37,126

Other creditors
29,117
37,146

Accruals and deferred income
646,261
620,638

1,543,327
1,595,987


2024
2023
£
£

Other taxation and social security

PAYE/NI control
33,810
37,126

33,810
37,126



17.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
2,869,201
3,190,758

2,869,201
3,190,758


Page 24

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024

18.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
381,480
418,772


381,480
418,772

Amounts falling due 1-2 years

Bank loans
410,075
427,652


410,075
427,652

Amounts falling due 2-5 years

Bank loans
1,424,045
1,338,134


1,424,045
1,338,134

Amounts falling due after more than 5 years

Bank loans
1,035,081
1,424,972

1,035,081
1,424,972

3,250,681
3,609,530


Bank loan is secured by a fixed and floating charge over the company's assets.


19.


Deferred taxation




2024


£






At beginning of year
14,560


Charged to profit or loss
23,809



At end of year
38,369

Page 25

 
Foxholes Nursing Home Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 August 2024
 
19.Deferred taxation (continued)

The deferred tax asset is made up as follows:

2024
2023
£
£


Accelerated capital allowances
38,369
14,560

38,369
14,560


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2 (2023 - 2) Ordinary shares of £1.00 each
2
2



21.


Reserves

Profit and loss account

Profit and loss account represents accumulated retained earnings and is a distributable reserve.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £40,505 (2023: £150,174). 
Contributions totaling £9,762 (2023: £8,095) were payable to the fund at the reporting date and are included in creditors.


23.


Related party transactions

During the year, the Company employed close family members of the director and paid total remuneration of  £84,000 (2023: £84,000). 


24.


Controlling party

The ultimate controlling party at reporting date is Usha Gandecha by virtue of her shareholding in the company.

 
Page 26