| Adelaide Care Limited |
| Strategic Report |
|
| Business Review |
The company maintained its upward trajectory in 2024, with turnover growing by 20% (from £13.4million to £16.1million). This growth was mainly driven by the increased capacity created by the introduction of a new care home in 2023, which significantly added to the company’s supported living offering.
The company’s cost of sales (mainly comprising of salaries) were well controlled, illustrated by the higher gross profit margins achieved in 2024 of 43% (compared to 38% in 2023).
Increased property maintenance costs, a rise in administrative / head office personnel, investment in staff training and general cost inflation, resulted to administrative expenses increasing by 21.6% (from £3.4million to £2.8million).
Overall performance saw profit (before taxation) rising to £3.54million, from £2.3million in 2023.
The increased profitability, combined with higher Corporation Tax rates, resulted to a significant rise in the corporation tax charge (£934K in 2024, compared to £504K in 2023).
The net assets of the company fell from £2.4million in 2023 to £1.7million in 2024, largely as a result of higher dividend payments during the year (of £3.27million compared to £1.4million in 2023). |
| Principle risks and uncertainties |
Controlling labour costs by improving staff retention, reducing agency usage and increasing occupancy numbers and hourly fee rates continue to be the company’s immediate priorities. The rise in Employers’ National Insurance, annual wage increases, and the National Minimum Wage, results in significant increases in company costs.
Staff shortages are a significant risk within the industry as a whole. In the post-Brexit labour market the company is resorting to sponsoring overseas care workers to meet staffing requirements.
If the company is judged by the regulator to be providing poor care at any of its sites, then it can be liable to financial penalties and reputational damage which can impair the growth and profitability of the business.
The current economic environment and pressure on public sector bodies to cut costs have an impact on the company’s ability to achieve performance targets and increase risks. |
| Future developments |
| There are no current plans to add new care homes, however improvements to existing sites are being considered to boost future capacity. |
| Financial Instruments |
| The company has a low level of exposure to price, credit, liquidity and cash flow risks arising from its trading activities. There is no foreign exchange risk because all trading activity takes place in the UK. |
|
|
| This report was approved by the board on 22 September 2025 and signed on its behalf. |
|
|
|
|
| Frederick Jude |
| Director |
|
|
| 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
|
| Other information |
| The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
| We have nothing to report in this regard. |
|
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of 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. |
|
| Matters on which we are required to report by exception |
| The extent to which the audit was considered capable of detecting irregularities including fraud |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| ● |
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| ● |
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the care sector; |
| ● |
we focused on laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and environmental and health and safety legislation; |
| ● |
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
| ● |
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
|
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| ● |
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
| ● |
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
|
To address the risk of fraud through management bias and override of controls, we: |
| ● |
performed analytical procedures to identify any unusual or unexpected relationships; |
| ● |
tested journal entries to identify unusual transactions; |
| ● |
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
| ● |
investigated the rationale behind significant or unusual transactions. |
|
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| ● |
agreeing financial statement disclosures to underlying supporting documentation; |
| ● |
reading the minutes of meetings of those charged with governance; |
| ● |
enquiring of management as to actual and potential litigation and claims; and |
| ● |
reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
|
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
|
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
| A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. |
|
| 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. |
|
|
|
|
| Panos Karageorghis |
| (Senior Statutory Auditor) |
75 Westow Hill |
| for and on behalf of |
London |
| API Partnership Ltd T/A Chandler & Georges |
SE19 1TX |
| Statutory Auditor |
| 22 September 2025 |
|
| Adelaide Care Limited |
| Statement of Cash Flows |
| for the year ended 31 December 2024 |
|
| Notes |
|
2024 |
|
2023 |
| £ |
£ |
| Operating activities |
| Profit for the financial year |
2,608,163 |
|
1,794,019 |
|
| Adjustments for: |
| Interest receivable |
(41,745) |
|
(3,082) |
| Interest payable |
3,635 |
|
- |
| Tax on profit on ordinary activities |
933,966 |
|
503,871 |
| Depreciation |
334,388 |
|
296,649 |
| Increase in debtors |
(104,567) |
|
(137,714) |
| (Decrease)/increase in creditors |
(155,871) |
|
624,657 |
|
|
|
3,577,969 |
|
3,078,400 |
|
| Interest received |
41,745 |
|
3,082 |
| Interest paid |
|
|
(3,635) |
|
- |
| Corporation tax paid |
(1,020,337) |
|
(188,403) |
|
| Cash generated by operating activities |
2,595,742 |
|
2,893,079 |
|
|
|
|
|
|
| Investing activities |
| Payments to acquire tangible fixed assets |
(482,200) |
|
(631,758) |
|
| Cash used in investing activities |
(482,200) |
|
(631,758) |
|
|
|
|
|
|
| Financing activities |
| Equity dividends paid |
(3,270,000) |
|
(1,400,500) |
|
| Cash used in financing activities |
(3,270,000) |
|
(1,400,500) |
|
|
|
|
|
|
| Net cash (used)/generated |
| Cash generated by operating activities |
2,595,742 |
|
2,893,079 |
| Cash used in investing activities |
(482,200) |
|
(631,758) |
| Cash used in financing activities |
(3,270,000) |
|
(1,400,500) |
|
| Net cash (used)/generated |
(1,156,458) |
|
860,821 |
|
| Cash and cash equivalents at 1 January |
1,373,936 |
|
513,115 |
| Cash and cash equivalents at 31 December |
217,478 |
|
1,373,936 |
|
|
|
|
|
|
| Cash and cash equivalents comprise: |
| Cash at bank |
217,478 |
|
1,373,936 |
|
|
|
|
|
|
|
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
| 2 |
Analysis of turnover |
2024 |
|
2023 |
| £ |
£ |
|
|
Supported living |
11,916,293 |
|
9,837,085 |
|
Residential |
4,201,765 |
|
3,596,163 |
|
|
|
|
|
|
16,118,058 |
|
13,433,248 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
16,118,058 |
|
13,433,248 |
|
|
|
|
|
|
|
|
|
|
| 3 |
Operating profit |
2024 |
|
2023 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
334,388 |
|
296,649 |
|
Auditors' remuneration for audit services |
22,200 |
|
18,000 |
|
Auditors' remuneration for other services |
10,800 |
|
10,800 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Directors' emoluments |
2024 |
|
2023 |
| £ |
£ |
|
|
Emoluments |
36,813 |
|
34,241 |
|
Company contributions to defined contribution pension plans |
1,123 |
|
1,027 |
|
|
|
|
|
|
37,936 |
|
35,268 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Staff costs |
2024 |
|
2023 |
| £ |
£ |
|
Their aggregate remuneration comprised: |
|
|
Provision of care and related services |
7,527,183 |
|
6,675,126 |
|
HR and Administration |
647,015 |
|
505,401 |
|
Social security costs |
829,007 |
|
719,066 |
|
Other pension costs |
147,874 |
|
157,416 |
|
|
|
|
|
|
9,151,079 |
|
8,057,009 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Provision of care and related services |
224 |
|
201 |
|
HR and Administration |
20 |
|
17 |
|
|
|
|
|
|
244 |
|
218 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Interest payable |
2024 |
|
2023 |
| £ |
£ |
|
|
Other loans |
3,635 |
|
- |
|
|
|
|
|
|
|
|
|
|
| 7 |
Taxation |
2024 |
|
2023 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
904,217 |
|
452,056 |
|
Adjustments in respect of previous periods |
12,832 |
|
- |
|
|
|
|
|
|
917,049 |
|
452,056 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
16,917 |
|
51,815 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
933,966 |
|
503,871 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
Profit on ordinary activities before tax |
3,542,129 |
|
2,297,890 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25.00% |
|
23.52% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
885,532 |
|
540,464 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
107,593 |
|
500 |
|
Capital allowances for period in excess of depreciation |
(88,908) |
|
(88,908) |
|
Adjustments to tax charge in respect of previous periods |
12,832 |
|
- |
|
|
Current tax charge for period |
917,049 |
|
452,056 |
|
|
|
|
|
|
|
|
|
|
|
|
| 8 |
Intangible fixed assets |
£ |
|
Goodwill: |
|
|
Cost |
|
At 1 January 2024 |
20,000 |
|
At 31 December 2024 |
20,000 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 January 2024 |
20,000 |
|
At 31 December 2024 |
20,000 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2024 |
- |
|
|
|
|
|
|
|
|
|
|
Goodwill has been written off in equal annual instalments over its estimated economic life of 5 years. |
|
|
| 9 |
Tangible fixed assets |
|
|
|
|
Land and buildings |
|
Plant and machinery |
|
Total |
|
|
|
|
At cost |
|
At cost |
| £ |
£ |
£ |
|
Cost or valuation |
|
At 1 January 2024 |
655,968 |
|
2,313,955 |
|
2,969,923 |
|
Additions |
242,470 |
|
239,730 |
|
482,200 |
|
At 31 December 2024 |
898,438 |
|
2,553,685 |
|
3,452,123 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2024 |
430,693 |
|
1,331,328 |
|
1,762,021 |
|
Charge for the year |
73,831 |
|
260,557 |
|
334,388 |
|
At 31 December 2024 |
504,524 |
|
1,591,885 |
|
2,096,409 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2024 |
393,914 |
|
961,800 |
|
1,355,714 |
|
At 31 December 2023 |
225,275 |
|
982,627 |
|
1,207,902 |
|
|
|
|
|
|
|
|
|
|
|
| 10 |
Debtors |
2024 |
|
2023 |
| £ |
£ |
|
|
Trade debtors |
953,225 |
|
857,963 |
|
Other debtors |
547,331 |
|
570,155 |
|
Prepayments and accrued income |
54,096 |
|
21,967 |
|
|
|
|
|
|
1,554,652 |
|
1,450,085 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
| £ |
£ |
|
|
Trade creditors |
24,547 |
|
15,661 |
|
Corporation tax |
348,874 |
|
452,162 |
|
Other taxes and social security costs |
- |
|
50,000 |
|
Other creditors |
162,435 |
|
153,550 |
|
Accruals and deferred income |
643,179 |
|
766,821 |
|
|
|
|
|
|
1,179,035 |
|
1,438,194 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Deferred taxation |
2024 |
|
2023 |
| £ |
£ |
|
|
Accelerated capital allowances |
221,032 |
|
204,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January |
204,115 |
|
152,300 |
|
Charged to the profit and loss account |
16,917 |
|
51,815 |
|
|
At 31 December |
221,032 |
|
204,115 |
|
|
|
|
|
|
|
|
|
|
|
| 13 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
101 |
|
101 |
|
101 |
|
|
|
|
|
|
|
|
|
|
| 14 |
Share premium |
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January |
99 |
|
99 |
|
|
At 31 December |
99 |
|
99 |
|
|
|
|
|
|
|
|
|
|
| 15 |
Profit and loss account |
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January |
2,389,414 |
|
1,995,895 |
|
Profit for the financial year |
2,608,163 |
|
1,794,019 |
|
Dividends |
(3,270,000) |
|
(1,400,500) |
|
|
At 31 December |
1,727,577 |
|
2,389,414 |
|
|
|
|
|
|
|
|
|
|
| 16 |
Dividends |
2024 |
|
2023 |
| £ |
£ |
|
|
Dividends on ordinary shares (note 15) |
3,270,000 |
|
1,400,500 |
|
|
|
|
|
|
|
|
|
|
|
| 17 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| £ |
£ |
£ |
£ |
|
Falling due: |
|
within one year |
536,400 |
|
542,400 |
|
59,528 |
|
94,868 |
|
within two to five years |
403,000 |
|
847,500 |
|
2,196 |
|
55,555 |
|
|
939,400 |
|
1,389,900 |
|
61,724 |
|
150,423 |
|
|
|
|
|
|
|
|
|
|
| 18 |
Related party transactions |
|
|
Frederick Jude - Director
The company occupies premises partly owned by Mr Frederick Jude. A normal commercial rent of £59,100 (2023: £63,600) was payable during the year.
Donald David - Director
The company occupies premises partly owned by Mr Donald David and family members. A normal commercial rent of £59,100 (2023: £63,600) was payable during the year.
Brisbane Properties Ltd - Shareholder
The company occupies premises owned by Brisbane Properties Limited. A normal commercial rent of £420,000 (2023:£420,000) was payable during the year. During the year the company paid dividends of £3,000,000 (2023:£1,013,000) to Brisbane Properties Ltd. Amount due to the related party was £5,675.69 (2023:£3,784 Debtor).
Melbourne Housing Association Limited (Co-operative and Community Benefit Society): Common members/directors
Included in turnover is an amount of £698,407(2023: £499,687) being expenses re-charged to Melbourne Housing Association Limited. |
|
| 19 |
Controlling party |
|
|
The company is under no overall control. |
|
| 20 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
| 21 |
Legal form of entity and country of incorporation |
|
|
Adelaide Care Limited is a private company limited by shares and incorporated in England. |
|
| 22 |
Principal place of business |
|
|
The address of the company's principal place of business is: |
|
|
36a High Street |
|
Chatteris |
|
PE16 6BG |