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Registered number: 03509050
AGECROFT PRISON MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AGECROFT PRISON MANAGEMENT LIMITED
COMPANY INFORMATION
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Sodexo Corporate Services (No.2) Limited
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AGECROFT PRISON MANAGEMENT LIMITED
CONTENTS
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Directors' Responsibilities Statement
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Changes in Equity
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Notes to the Financial Statements
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AGECROFT PRISON MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
Agecroft Prison Management Limited (the “Company”) is a Special Purpose Vehicle ("SPV") whose purpose is to design, construct, manage and finance (“DCMF”) HMP Forest Bank. The establishment holds 1,470 male prisoners at full capacity and currently the Home Office utilises all of these places. It has a contract with the Home Office which it entered into on 6 July 1998.
The facility opened on 20 January 2000 and completed its phase-in of prisoners in accordance with the DCMF contractual requirements. The entity provides services in terms of managing day to day operations of the prison to Home Office for which the entity has hired a sub-contractor. The original contract expired on 19 January 2025, and a new one year contract has been put in place which expires on 19th of January 2026.
As shown in the Company’s statement of comprehensive income, the Company’s turnover £59,641,000 (2023: £58,232,000) has increased by £1,409,000 compared to the prior year resulting in a profit before tax of £6,355,000 compared to a profit of £5,803,000 in the prior year. All billing rates are consistent with the profile set out in DCMF contract. The company is forecasting to remain in profitability in FY25.
Principal risks and uncertainties
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The Company has exposure to a variety of financial risks, which are managed with the purpose of minimising any potential adverse effect on performance. These are further explained below under financial risk management objectives and policies.
The company has not been materially adversely affected by recent increases in inflation and interest rates as it has inflation protection in its contract with the Authority and does not have exposure to floating rate debt or employee costs.
Financial risk management objectives and policies:
The Company’s project revenue and most of its costs were linked to inflation at the inception of the project, resulting in the project being largely insensitive to inflation.
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company believes that due to the financial position there is no significant liquidity risk.
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. The Directors have not identified any recoverability concerns as Home Office is the sole customer of the Company. In addition, all cash is held with reputable third-party banks with strong credit scores.
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AGECROFT PRISON MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is no longer a going concern as the Company is a Special Purpose Vehicle whose contract with the Home Office is ending in January 2026. On conclusion of the contract and settlement of residual liabilities the company will cease to trade and will become dormant. Consequently, the financial statements are prepared on a basis other than going concern. No material adjustment arose as a result of ceasing to apply other than going concern basis.
Key performance indicators
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The company considers available prisoner places as its key performance indicators. The prison operated at full capacity during the year, the total spaces available were 1,470.
This report was approved by the board on 26 September 2025 and signed on its behalf.
Jonathan Cowdell
Director
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AGECROFT PRISON MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Details of principal risks and uncertainties along with financial risk management and objective, review of business, results and KPIs can be found in the Strategic Report on page 1. The information relating to engagement with suppliers, customers and others can be found in strategic report on page 2.
The profit for the year, after taxation, amounted to £4,784,000 (2023 - £4,829,000 ).
The directors do not propose a dividend in respect of the year ended 31 December 2024 (2023 - nil).
The directors who served during the year and up to the date of financial statements were:
The Company will become dormant after expiry of current contract in January 2026 and settlement of residual liabilities.
The company is no longer a going concern as the Company is a Special Purpose Vehicle whose contract with the Home Office is ending in January 2026. On conclusion of the contract the company will cease to trade and will become dormant. Consequently, the financial statements are prepared on a basis other than going concern. No material adjustment arose as a result of ceasing to apply other than going concern basis.
Carbon and energy reporting
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Company has obtained the exemption from the energy and carbon reporting disclosure as the annual consumption of the Company is less than 40,000 Kwh.
Disclosure of information to auditor
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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'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's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
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AGECROFT PRISON MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditor, Deloitte LLP, have indicated their willingness to be reappointed for another term and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 26 September 2025 and signed on its behalf.
Jonathan Cowdell
Director
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AGECROFT PRISON MANAGEMENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing 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), 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 of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make 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; and
∙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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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AGECROFT PRISON MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGECROFT PRISON MANAGEMENT LIMITED
Report on the audit of the financial statements
Opinion
In our opinion the financial statements of Agecroft Prison Management Limited (the ‘company’):
∙give a true and fair view of the state of the company’s affairs as at 31 December 2024 and of its profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
∙the statement of comprehensive income;
∙the balance sheet;
∙the statement of changes in equity;
∙the statement of cashflows;
∙the related notes 1 to 18.
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).
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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.
Emphasis of matter – Financial statements prepared other than on a going concern basis
We draw attention to note 2.2 in the financial statements, which indicates that the financial statements have been prepared on a basis other than that of a going concern. Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or
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AGECROFT PRISON MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGECROFT PRISON MANAGEMENT LIMITED
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.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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 considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector.
We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:
∙had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act and tax legislation; and
∙do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist
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AGECROFT PRISON MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGECROFT PRISON MANAGEMENT LIMITED
within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the area of revenue recognition and more precisely cut off. This is because there may be an incentive to misstate revenue by recognising revenue in the incorrect year. The procedures we performed to respond to this risk included checking a sample of revenue transactions to invoices and bank statements, to ensure that the amounts had been recorded accurately and in the correct period. In addition, we checked a sample of invoices both pre and post year end, to ensure that revenue had been recognised in the appropriate financial year.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
∙reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
∙enquiring of management actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
∙reading minutes of meetings of those charged with governance.
Report on other legal and regulatory requirements
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 strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
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 any material misstatements in the strategic report or the directors’ report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors’ remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
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AGECROFT PRISON MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGECROFT PRISON MANAGEMENT LIMITED
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Daryl Winstone FCA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
Date: 26 September 2025
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AGECROFT PRISON MANAGEMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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There was no other comprehensive income for 2024 (2023:£NIL).
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The notes on pages 14 to 23 form part of these financial statements.
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AGECROFT PRISON MANAGEMENT LIMITED
REGISTERED NUMBER: 03509050
BALANCE SHEET
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 September 2025.
The notes on pages 14 to 23 form part of these financial statements.
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AGECROFT PRISON MANAGEMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Comprehensive income for the year
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Comprehensive income for the year
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The notes on pages 14 to 23 form part of these financial statements.
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AGECROFT PRISON MANAGEMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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Corporation tax (paid)/received
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Net cash generated from operating activities
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Cash flows from investing activities
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Proceeds from finance asset
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Net cash from investing activities
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Cash flows from financing activities
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Repayment of finance leases
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Decrease in amounts owed to group undertakings
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Interest on finance lease
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 14 to 23 form part of these financial statements.
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Agecroft Prison Management Limited (‘the Company’) is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and registered in England and Wales. The address of the registered office is One Southampton Row, London, WC1B 5HA. The nature of the Company’s operations and its principal activities are set out in the strategic report.
2.Accounting policies
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Basis of preparation of financial statements
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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 presentational currency of these financial statements is Pounds sterling. All amounts in the financial statements have been rounded to the nearest £1,000. The functional currency of the Company is considered to be Pounds sterling because that is the currency of the primary economic environment in which the Company operates.
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:
The company is no longer a going concern as the Company is a Special Purpose Vehicle whose contract with the Home Office is ending in January 2026. On conclusion of the contract the Company will cease to trade and will become dormant. Consequently, the financial statements are prepared on a basis other than going concern. No material adjustment arose as a result of ceasing to apply other than going concern basis.
Turnover represents amounts received for goods and services provided in the normal course of business, net of VAT, arising in the United Kingdom. The contract with H.M. Principal Secretary of State for the Home Office Department is for a period of 25 years, commencing on the 20 January 2000 when the facility opened. Following a one-year extension for service provision only, the Company will continue to recognise revenue from services provided during the additional year on the same basis. Revenue is calculated and recognised daily on the basis of the number of available prisoner places at agreed contractual rates and certain agreed costs incurred by the prison that are recharged to H.M. Principal Secretary of State for the Home Office Department at nil margin. Invoices are raised on a monthly basis in arrears.
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Private finance initiative contract ("PFI") accounting
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On commencement of its management of Her Majesty’s Prison (HMP) Forest Bank the Company recorded a financial asset, equal to the fair value of the property at that date. This amount is reduced in subsequent years as payments are received. In addition, finance income on this asset is recorded using a property-specific interest rate. The remaining PFI payments, being the full amounts received less the capital repayment and the imputed finance charge, are recorded within operating profit.
The capital element of future lease obligations arising from the Company’s leasing of the HMP and YOI Forest Bank property was recorded as a liability. The amount is reduced in subsequent years as payments were made, with the final payment made in December 2024, fully settling the liability. The interest element was charged to the profit and loss account over the period of the lease (25 years) to produce a constant rate of charge on the balance of any capital repayments outstanding.
The financial asset initially recorded is equal to the amounts due for the fair value of the property. The financial asset is reduced in subsequent years as payments are received.
Following a one-year extension of the contract for the provision of services only, the Company will continue to recognise service revenue over the extended period in accordance with the terms of the extension. This extension does not affect the financial asset, lease liability, or interest charge, as these relate solely to the original 25-year term of the property arrangement.
Start-up costs are capitalised within the financial asset and amortised on a straight-line basis over the 25-year contract period.
Interest income is recognised in profit or loss using the effective interest method.
Borrowing costs which are directly attributable to the construction of tangible fixed assets are capitalised as part of the cost of those assets. Borrowing costs were capitalised at the beginning of the contract amounting to £1,370,000 and have been amortised over the life of the contract, currently valued at £nil. Capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.
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 balance sheet date in the countries where the Company operates and generates income.
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
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.
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. Subsequent to initial recognition then financial assets and liabilities are recognised at amortised cost.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Critical accounting judgments and key sources of estimation uncertainty
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In the application of the Company’s accounting policies, which are described in note 2 the directors are required to make judgments, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgments in applying the Company's accounting policies
The directors of Agecroft Prison Management Limited have not identified any critical accounting judgments, key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Key sources of estimation uncertainty
The directors do not consider there to be any key sources of estimation uncertainty.
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An analysis of turnover by class of business is as follows:
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Analysis of turnover by country of destination:
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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During the year, the Company obtained the following services from the Company's auditor and its associates:
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Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements
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Fees payable to the Company's auditor and its associates in respect of:
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Taxation compliance services
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The Company had no employees other than the directors. During the year Director’s fee of £60,000 (2023: £240,000) was charged by the Company’s controlling parties.
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Interest receivable and similar income
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Interest income from financial asset
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Interest payable and similar expenses
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Other loan interest payable
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Finance leases and hire purchase contracts
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Taxation on profit on ordinary activities
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Factors affecting tax charge for the year
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The tax assessed for the year is the same as (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
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Utilisation of tax losses
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Adjustments to tax charge in respect of prior periods
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Total tax charge for the year
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Factors that may affect future tax charges
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On 11 July 2023, the UK Finance (No.2) Act 2023 enacted Pillar Two income taxes legislation effective from 1 January 2025. The Company has assessed the impact of the Pillar Two income taxes legislation and concluded that there is no impact given the Company’s tax rate is above 15%.
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Due after more than one year
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Amounts recoverable on long-term contracts
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Prepayments and accrued income
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Amounts recoverable on long-term contracts
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The amounts recoverable on long-term contracts represents the fair value of the prison property at the date the Company commenced management of HMP Forest Bank, subsequently reduced by payments received from H.M. Principal Secretary of State for the Home Office Department.
The amount would be received in full in January 2025 and has been classified as due within one year accordingly.
Accrued income above include the amounts retained on a monthly basis by the Home Office for the repair and maintenance as per the contract with the Company. The full amount has been recovered subsequent to the year end.
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The obligation under finance lease and hire purchase contracts have been fully paid during the year.
Accruals above include the amount retained by the Company on a monthly basis for the repair and maintenance as per the contract. The full amount has been settled subsequent to the year end.
The amount owed to group undertakings falling due within one year relates to subordinated debt payable to group undertakings. This debt is unsecured, carries an interest rate of 13.367% and is repayable in 2025.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Amounts owed to group undertakings
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The amount owed to group undertakings falling due after one year relate to subordinated debt payable to group undertakings, which is payable in 2025, therefore, moved to amounts payable within one year.
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Obligations under finance lease
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Minimum lease payments under hire purchase fall due as follows:
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Cash and Cash Equivalents
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Trade and other receivables at amortised cost
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Trade and other payables at amortised cost
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Debt instruments at amortised cost
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Allotted, called up and fully paid
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50,000 (2023 - 50,000) Ordinary shares of £1.00 each
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The Company has one class of ordinary shares which carry no right to fixed income.
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AGECROFT PRISON MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Related party transactions
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During the year the Company entered into the following transactions with companies, which were related
parties during the year:
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Operations fee and similar expenses - 2024
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Operations fee and similar expenses - 2023
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Creditor - at 31 December 2024
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Creditor - at 31 December 2023
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Operation fees payable relate to the main prison management contract and NOC (Notices of Change) billing from Sodexo Justice Services to Agecroft Prison Management in the year.
Creditor balances held with Sodexo Holdings Limited. and CoreCivic Inc. relate to the subordinated debt which is repayable at the end of the project.
The cross charge of Director's fee was received from CoreCivic Inc. and Sodexo during the year. For details see Note 6.
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Corrections Corporation of America (UK) Limited and Sodexo S.A., incorporated in France, together are the controlling parties by virtue of their 50% each ownership in the Company’s equity capital.
The entity is a joint venture between CCA (UK) Limited and Sodexo S.A., therefore, the entity's financial statements will not be consolidated in the group.
CCA (UK) Limited is a 100% subsidiary of CoreCivic, Inc, incorporated in the United States of America.
Sodexo Ltd is considered a related party as it is a 100% subsidiary of Sodexo S.A. incorporated in France.
The financial statements of the ultimate shareholders, CoreCivic and Sodexo S.A., can be obtained from 5501 Virginia Way, Suite 110, Brentwood, TN, USA and 255 Quai de la Bataille de Stalingrad, 92866 Issy- Les - Moulineaux, France, respectively.
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