REGISTERED NUMBER: SC695773 (Scotland)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended

31 December 2024

for

AYRSHIRE CARE HOMES LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other 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 Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mr A J Jamieson

Mr P G Mcniven

Mr M Singh

REGISTERED OFFICE:

Barncluith Business Centre

Townhead Street

Hamilton

ML3 7DP

REGISTERED NUMBER:

SC695773 (Scotland)

AUDITORS:

WDM Associates (Statutory Auditors)

Oakfield House

378 Brandon Street

Motherwell

ML1 1XA

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The results for the year and financial position of the company are shown in the financial statements. An increase in both public sector and private fees, coupled with an increase in average occupancy throughout the year have given rise to an increase in turnover from the previous year. The directors are satisfied with the results for the period. The directors anticipate that the company will continue to develop and provide quality care to our residents.

During the financial year to 31st December 2024, the directors undertook a complete refurbishment of Heathfield Care Home, and have reduced the number of beds from 88 to 60. At the year end it had 58 beds fully occupied.

Whiteford House opened to residents on 23rd October 2023. It has capacity for 31 beds with occupancy high throughout the year.

Wallacetown Gardens has 20 beds, and was full throughout the whole year.

Atlantic View opened up on 21st March 2024, and has 50 beds with 48 fully utilised at the year end.

The directors consider key performance indicators to primarily be occupancy and payroll costs. These are monitored at each home on a weekly basis.

The directors consider the employees to be crucial to the Group's success. Accordingly, the Group invests in training programmes, both internal and external, and ensures there is good communication of ideas and issues by having monthly meetings of key members of the Care Homes management personnel.

PRINCIPAL RISKS AND UNCERTAINTIES

During the forthcoming year the directors consider the principle risks and uncertainties affecting the company to be:

- Managing the impact of the funding constraints imposed on local authorities.

- Continuing cost pressures and challenging economic environment

- Managing the operational aspects of the business due to the continued pressure in recruiting staff in the sector.

- operating within a highly regulated sector which is potentially subject to continuous review and updates.

The review of the the Care Sector is still continuing under the instruction of the Scottish Government. The national care service bill is progressing through the Scottish Parliament - currently in the second stage. There is no confirmation at this time with regard to a timeframe for the implementation of the National Care Service

There continues to be a shortage of qualified nursing staff and care staff affecting both the sector and wider healthcare industry. Both recruitment and retention of staff, at all levels, is currently challenging. The Directors continue to monitor the position whilst putting measures into place to minimise the risk.

Having considered the risks to the business, the directors are of the opinion that the company can respond to and mitigate these risks and uncertainties.

KEY PERFORMANCE INDICATORS

The financial and other key performance indicators, which are continuously monitored within the business, include the following:

- Average weekly fee rates per resident

- Average weekly costs per resident

- Percentage occupancy levels

- Regulatory inspection grades

- Internal quality audit grades

- Average weekly payroll costs

The KPI's showed no stress during the financial year. The directors will continue to monitor the KPI's and are satisfied with the results during the year.

ON BEHALF OF THE BOARD:

Mr M Singh - Director

24 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the provision of residential care.

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of 2350 per share.

The total distribution of dividends for the year ended 31 December 2024 will be £ 2,350,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr A J Jamieson

Mr P G Mcniven

Mr M Singh

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently;

-	make judgements 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, WDM Associates (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M Singh - Director

24 September 2025

Opinion

We have audited the financial statements of Ayrshire Care Homes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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.

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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which it operates. We determined that the following laws and regulations were the most significant: - the Companies Act 2006, UK corporate taxation laws and Health and Social Care Standards.

- We obtained an understanding of how the company is complying with these legal and regulatory frameworks by making enquiries to the management.

- We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included:

- identifying and assessing the design and effectiveness of controls management has in place to prevent and detect fraud;

- understanding how those charged with governance considered and addressed the potential for override controls or other inappropriate influence over the reporting process;

- challenging assumptions and judgements made by management in its significant accounting estimates;

- identifying and testing journal entries, in particular any journal entries posted with unusual accounting combinations;

- assessing the extent of compliance with relevant laws and regulations.

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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Graham Bonomy (Senior Statutory Auditor)

for and on behalf of WDM Associates (Statutory Auditors)

Oakfield House

378 Brandon Street

Motherwell

ML1 1XA

24 September 2025

TURNOVER

9,638,214

4,393,990

Cost of sales

(6,194,239

)

(2,967,937

)

GROSS PROFIT

3,443,975

1,426,053

Administrative expenses

(2,283,107

)

(1,016,367

)

1,160,868

409,686

Other operating income

16,173

12,020

OPERATING PROFIT

4

1,177,041

421,706

Interest payable and similar expenses

5

(4,032

)

(33,228

)

PROFIT BEFORE TAXATION

1,173,009

388,478

Tax on profit

6

(584,380

)

(39,043

)

PROFIT FOR THE FINANCIAL YEAR

588,629

349,435

Profit attributable to:

Owners of the parent

588,629

349,435

PROFIT FOR THE YEAR

588,629

349,435

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

588,629

349,435

Total comprehensive income attributable to:

Owners of the parent

588,629

349,435

FIXED ASSETS

Tangible assets

9

13,634,374

13,226,937

Investments

10

-

-

13,634,374

13,226,937

CURRENT ASSETS

Debtors

11

530,617

382,440

Cash at bank and in hand

769,725

89,500

1,300,342

471,940

CREDITORS

Amounts falling due within one year

12

(10,327,986

)

(7,949,844

)

NET CURRENT LIABILITIES

(9,027,644

)

(7,477,904

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,606,730

5,749,033

CREDITORS

Amounts falling due after more than one year

13

(34,688

)

-

PROVISIONS FOR LIABILITIES

15

(719,698

)

(135,318

)

NET ASSETS

3,852,344

5,613,715

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

3,852,244

5,613,615

SHAREHOLDERS' FUNDS

3,852,344

5,613,715

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2025 and were signed on its behalf by:

Mr M Singh - Director

Mr P G Mcniven - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

401

401

401

401

CURRENT ASSETS

Debtors

11

2,325,006

-

Cash at bank

46

-

2,325,052

-

CREDITORS

Amounts falling due within one year

12

(2,350,301

)

(25,055

)

NET CURRENT LIABILITIES

(25,249

)

(25,055

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(24,848

)

(24,654

)

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

(24,948

)

(24,754

)

SHAREHOLDERS' FUNDS

(24,848

)

(24,654

)

Company's profit/(loss) for the financial year

2,349,806

(23,695

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2025 and were signed on its behalf by:

Mr M Singh - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2023

501

5,264,180

5,264,681

Changes in equity

Issue of share capital

(401

)

-

(401

)

Total comprehensive income

-

349,435

349,435

Balance at 31 December 2023

100

5,613,615

5,613,715

Changes in equity

Dividends

-

(2,350,000

)

(2,350,000

)

Total comprehensive income

-

588,629

588,629

Balance at 31 December 2024

100

3,852,244

3,852,344

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2023

100

(1,059

)

(959

)

Changes in equity

Total comprehensive income

-

(23,695

)

(23,695

)

Balance at 31 December 2023

100

(24,754

)

(24,654

)

Changes in equity

Dividends

-

(2,350,000

)

(2,350,000

)

Total comprehensive income

-

2,349,806

2,349,806

Balance at 31 December 2024

100

(24,948

)

(24,848

)

Cash flows from operating activities

Cash generated from operations

1

2,127,872

652,154

Interest paid

(165

)

(33,228

)

Interest element of hire purchase payments paid

(3,867

)

-

Tax paid

-

(126,484

)

Net cash from operating activities

2,123,840

492,442

Cash flows from investing activities

Purchase of tangible fixed assets

(817,921

)

(239,820

)

Net cash from investing activities

(817,921

)

(239,820

)

Cash flows from financing activities

Loan repayments in year

-

(595,954

)

Capital repayments in year

50,798

-

Amount withdrawn by directors

-

(2,342,691

)

Share issue

-

(401

)

Loaned to group companies

1,673,508

2,732,873

Equity dividends paid

(2,350,000

)

-

Net cash from financing activities

(625,694

)

(206,173

)

Increase in cash and cash equivalents

680,225

46,449

Cash and cash equivalents at beginning of year

2

89,500

43,051

Cash and cash equivalents at end of year

2

769,725

89,500

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.3.23

Year Ended

to

31.12.24

31.12.23

£

£

Profit before taxation

1,173,009

388,478

Depreciation charges

410,485

110,900

Government grants

(12,500

)

(9,109

)

Finance costs

4,032

33,228

1,575,026

523,497

(Increase)/decrease in trade and other debtors

(148,177

)

90,872

Increase in trade and other creditors

701,023

37,785

Cash generated from operations

2,127,872

652,154

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

769,725

89,500

Period ended 31 December 2023

31.12.23

1.3.23

£

£

Cash and cash equivalents

89,500

43,051

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

89,500

680,225

769,725

89,500

680,225

769,725

Debt

Finance leases

-

(50,798

)

(50,798

)

-

(50,798

)

(50,798

)

Total

89,500

629,427

718,927

1.	STATUTORY INFORMATION

Ayrshire Care Homes Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of 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.

Critical accounting judgements and key sources of estimation uncertainty

The most significant estimation within the company's financial statements relates to depreciation. The directors review depreciation rates on a regular bias to ensure that the policy rate remains appropriate.

The directors also require to exercise judgement in assessing reconcilability of trade debtors and make provision where credit control procedures indicate that trade debtor balances may not be fully recoverable.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised in the period in which it is earned. The revenue earned is from the provision of care home services only.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Improvements to property

-

20% on reducing balance

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Basic financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, where 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 instruments, which include trade and other 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.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other creditors and loans from related undertakings, 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 as transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

Period

1.3.23

Year Ended

to

31.12.24

31.12.23

£

£

Wages and salaries

5,357,759

2,561,357

Social security costs

288,044

110,490

Other pension costs

34,069

39,157

5,679,872

2,711,004

The average number of employees during the year was as follows:

Period

1.3.23

Year Ended

to

31.12.24

31.12.23

Care Home staff

256

188

Period

1.3.23

Year Ended

to

31.12.24

31.12.23

£

£

Directors' remuneration

-

-