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Registered number: 03092509










REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
COMPANY INFORMATION


Directors
A Shams 
N Saeedi-Faskhoudi 




Company secretary
S Shams and N Saeedi-Fashkoudi



Registered number
03092509



Registered office
Reach House
Churchfield Road

Chalfont St. Peter

Gerrards Cross

England

SL9 9EN




Independent auditor
MHA

910 The Crescent

Colchester Business Park

Colchester

CO4 9YQ





 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Statement of cash flows
 
12
Notes to the financial statements
 
13 - 24

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The Directors present the Company's Strategic Report for the year ended 31 December 2024.

Business review
 
Provision of residential care continues to be high on the political agenda, with ongoing developments in legislation, political priorities, and financial restraints. There remains a strong shift towards supported living and similar schemes, which are seen by government and local authorities as the preferred way forward. Supported living is promoted at the expense of residential care by all local authorities and is consistently the first funding option for commissioning bodies.
Given these challenges and the uncertainties referred to below, the Directors consider the Company’s results for the year to be satisfactory.

Principal risks and uncertainties
 
IIn addition to the above, the year was challenging and this is expected to continue. All parties are implementing increasing requirements around the standard and delivery of care, alongside a shift away from traditional funding methods for health and social care.
The Care Act 2014, which came into effect in spring 2015, continues to encourage individuals to choose how their care is delivered. Supported living schemes and personal budgets are now widely viewed as the preferred route for adults with learning disabilities.
The Directors regularly assess the risks to the business, the nature of those risks, and their potential impact. Key risks include:
1. 
Workforce shortages – Recruitment and retention remain a significant challenge since Brexit has made   sourcing staff more difficult.
2. 
Cost-of-living impact – The continued rise in living costs, combined with inflationary pressures on gas,    electricity, food, and supplier contracts, it has substantially increased operational costs.
3. 
Salary costs and NI contributions – The Company continued to face upward pressure on wages to    remain competitive, while also preparing to absorb the increase in National Insurance contributions, which   would further increase staffing costs.
4. 
Local authority funding uplifts – Fee uplifts from local authorities have not kept pace with rising    operational costs, closing the gap between income and expenditure.
5. 
Regulatory and compliance costs – Care Quality Commission (CQC) compliance requirements,    together with the ongoing digitisation of care delivery, continue to drive up operational expenses.
6. 
Broader economic pressures – Higher interest rates and overall economic uncertainty may impact     the Company’s borrowing costs.
While competition from other providers is always a consideration, the Company is well placed to control its costs as far as possible and will continue to demonstrate its value on the basis of the quality of its provision.
The Directors continue to attach high priority to managing the risks posed by IT security breaches, with cybersecurity remaining under regular review. All General Data Protection Regulation (GDPR) and Caldicott Guardian requirements continue to be met.
The Company has managed cost pressures and increased our service offerings  without compromising service quality. However, following a detailed review of available resources and risk mitigation measures, the Directors are satisfied that the Company remains a going concern.

Page 1

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Financial key performance indicators
 
The Directors consider turnover and operating profit to be key financial performance indicators and these are set out as follows:
            
2024            2023
Turnover     £9,280,045   £9,181,285
Operating profit    £1,221,555  £1,822,684
While the Directors are pleased with turnover, they are conscious that economic constraints, digitalisation costs, wage inflation, corporation tax increases, and incoming NI increases will place further pressure on profitability.

Other key performance indicators
 
The key non-financial performance indicator is the quality of care, which is continuously monitored internally and externally inspected. The Directors consider that this indicator continues to be of a high standard.


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



A Shams
Director

Date: 30 September 2025
Page 2

 
REHABILITATION EDUCATION AND COMMUNITY HOMES 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,103,441 (2023 - £1,357,873).

Dividends paid for the year amounted to £nil (2023 - £250,000)

Directors

The directors who served during the year and up to the date of this report were:

A Shams 
N Saeedi-Faskhoudi 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

The 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 2006They 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.

Future developments

In this context, the Company’s growth strategy is accompanied by a continued focus on efficiency, workforce development, and proactive engagement with commissioners. The Directors believe that by combining targeted expansion with prudent financial management, the Company can strengthen its position, maintain quality of care, and adapt successfully to increase its offering.

Page 3

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Matters covered in the Strategic report

The Directors have chosen, in accordance with section 414c (11) of the Companies Act 2006 to include the strategic report matters otherwise required to be disclosed in the Directors’ Report as the Directors consider these to be of strategic importance to the Company. These matters include:
 
Principal risks and uncertainties
Future developments

Disclosure of information to auditor

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

Post balance sheet events

In July 2025 the Directors voted a dividend of £1.33 per share, totalling £50,000 and this will be recognised in the year ended 31 December 2025.

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





A Shams
Director

Date: 30 September 2025
Page 4

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 

Opinion


We have audited the financial statements of Rehabilitation Education and Community Homes Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 5

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


adequate accounting records have not been kept, 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.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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.


Page 6

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED (CONTINUED)


Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
enquiry of management around actual and potential litigation and claims;
enquiry of staff to identify any instances of non-compliance with laws and regulations;
performing audit work over the risk of management override of controls, including testing of journal entries and there other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias:
reviewing minutes of meetings of those charged with governance;and
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable law 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 Auditor's report.
Page 7

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Ryan Swann BA FCA (Senior statutory auditor)
  
for and on behalf of
MHA, Statutory Auditor
 
Colchester, United Kingdom

Date:
 
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542). 
30 September 2025
Page 8

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
9,280,045
9,181,285

Cost of sales
  
(206,799)
(214,934)

Gross profit
  
9,073,246
8,966,351

Administrative expenses
  
(7,873,520)
(7,156,956)

Other operating income
 5 
21,829
13,289

Operating profit
 6 
1,221,555
1,822,684

Interest receivable and similar income
 10 
369,409
167,668

Profit before tax
  
1,590,964
1,990,352

Tax on profit
 11 
(487,523)
(632,479)

Profit for the financial year
  
1,103,441
1,357,873

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

The notes on pages 13 to 24 form part of these financial statements.
Page 9

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
REGISTERED NUMBER: 03092509

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
7,098,586
5,052,279

  
7,098,586
5,052,279

Current assets
  

Debtors: amounts falling due within one year
 14 
354,598
639,801

Cash at bank and in hand
 15 
8,149,550
9,126,786

  
8,504,148
9,766,587

Creditors: amounts falling due within one year
 16 
(702,915)
(1,022,488)

Net current assets
  
 
 
7,801,233
 
 
8,744,099

  

Net assets
  
14,899,819
13,796,378


Capital and reserves
  

Called up share capital 
 17 
37,500
37,500

Capital redemption reserve
 18 
162,500
162,500

Other reserves
 18 
5,000,000
5,000,000

Profit and loss account
 18 
9,699,819
8,596,378

  
14,899,819
13,796,378


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 September 2025.




A Shams
Director

The notes on pages 13 to 24 form part of these financial statements.
Page 10

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Capital redemption reserve
Other reserves
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2023
37,500
162,500
3,500,000
8,988,505
12,688,505


Comprehensive income for the year

Profit for the year
-
-
-
1,357,873
1,357,873

Dividends: Equity capital
-
-
-
(250,000)
(250,000)

Transfer to/from profit and loss account
-
-
1,500,000
(1,500,000)
-



At 1 January 2024
37,500
162,500
5,000,000
8,596,378
13,796,378


Comprehensive income for the year

Profit for the year
-
-
-
1,103,441
1,103,441


At 31 December 2024
37,500
162,500
5,000,000
9,699,819
14,899,819


The notes on pages 13 to 24 form part of these financial statements.
Page 11

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,103,441
1,357,873

Adjustments for:

Depreciation of tangible assets
770,400
700,472

Loss on disposal of tangible assets
-
(3,612)

Government grants
(21,829)
(13,289)

Interest received
(369,409)
(167,668)

Taxation charge
487,523
632,479

Decrease/(increase) in debtors
285,203
(121,966)

(Decrease)/increase in creditors
(251,888)
92,157

Corporation tax (paid)
(555,208)
(400,000)

Net cash generated from operating activities

1,448,233
2,076,446


Cash flows from investing activities

Purchase of tangible fixed assets
(2,816,707)
(321,641)

Sale of tangible fixed assets
-
3,612

Government grants received
21,829
13,289

Interest received
369,409
167,668

Net cash from/(used in) investing activities

(2,425,469)
(137,072)

Cash flows from financing activities

Dividends paid
-
(250,000)

Net cash used in financing activities
-
(250,000)

Net (decrease)/increase in cash and cash equivalents
(977,236)
1,689,374

Cash and cash equivalents at beginning of year
9,126,786
7,437,412

Cash and cash equivalents at the end of year
8,149,550
9,126,786


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
8,149,550
9,126,786

8,149,550
9,126,786


The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Rehabilitation Education and Community Homes Limited is a private company limited by shares and incorporated in England and Wales. The registered office of the Company is Reach House, Churchfield Road, Chalfont St. Peter, Gerrards Cross, England, SL9 9EN.
The financial statements are presented in pound sterling and are rounded to the nearest pound.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for the foreseeable future and meet its liabilities as they fall due. The Company has net current assets of £7,801,233 (2023- net current assets of £8,744,099) and net assets of £14,899,819 (2023 - £13,796,378). 
The Company’s financial forecasts, taking into consideration the current environment, show that the Company is expected to remain profitable and generate positive cash flows giving the Company the ability to operate for the foreseeable future. 
Consequently, the Directors have concluded that there are no material uncertainties that may cast significant doubt about the Company's ability to continue as a going concern for the next 12 months from the date of approval of these financial statements. Accordingly, the going concern basis has been adopted in preparing the financial statements.

Page 13

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Revenue

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

Rendering of services

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

 
2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Government grants

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

 
2.6

Interest income

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

Page 14

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

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

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

 
2.8

Taxation

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.


 
2.9

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
6%
on cost
Motor vehicles
-
25%
reducing balance basis
Fixtures and fittings
-
25%
reducing balance basis

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

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

 
2.10

Debtors

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

Page 15

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.12

Creditors

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

 
2.13

Financial instruments

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

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, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for
Page 16

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

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

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

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

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

 
2.14

Dividends

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the opinion of the Directors, there are no critical judgments required or key sources of estimation uncertainty.

Page 17

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

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


2024
2023
£
£

Residential care
9,280,045
9,181,285



5.


Other operating income

2024
2023
£
£

Government grants receivable
21,829
13,289



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
770,400
700,472

Exchange differences
-
(3,612)

Other operating lease rentals
83,881
94,825


7.


Auditor's remuneration

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


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
15,800
19,000

Fees payable to the Company's auditor in respect of:

Taxation compliance services
5,390
4,750
Page 18

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Employees

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


2024
2023
£
£

Wages and salaries
5,029,648
4,441,196

Social security costs
450,865
394,161

Cost of defined contribution scheme
209,222
95,389

5,689,735
4,930,746


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


        2024
        2023
            No.
            No.







Staff
180
169


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
231,201
225,000

Company contributions to defined contribution pension schemes
116,512
16,512

347,713
241,512


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £125,000 (2023 - £125,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £57,200 (2023 - £7,200).


10.


Interest receivable

2024
2023
£
£


Bank interest receivable
369,409
167,668

369,409
167,668

Page 19

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
503,961
640,000

Adjustments in respect of previous periods
(16,438)
(7,521)


487,523
632,479


Total current tax
487,523
632,479

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,590,964
1,990,352


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
397,741
467,733

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,043
19,343

Depreciation on assets not qualifying for capital allowances
105,177
152,924

Adjustments to tax charge in respect of prior periods
(16,438)
(7,521)

Total tax charge for the year
487,523
632,479


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Dividends

2024
2023
£
£


Dividends paid
-
250,000

-
250,000


13.


Tangible fixed assets





Freehold property
Motor vehicles
Fixtures and fittings
Assets under construction
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
11,019,674
277,972
479,964
-
11,777,610


Additions
453,552
6,699
-
2,356,456
2,816,707



At 31 December 2024

11,473,226
284,671
479,964
2,356,456
14,594,317



Depreciation


At 1 January 2024
6,066,025
216,905
442,401
-
6,725,331


Charge for the year on owned assets
724,979
36,030
9,391
-
770,400



At 31 December 2024

6,791,004
252,935
451,792
-
7,495,731



Net book value



At 31 December 2024
4,682,222
31,736
28,172
2,356,456
7,098,586



At 31 December 2023
4,953,649
61,067
37,563
-
5,052,279




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


2024
2023
£
£

Freehold
4,682,222
4,953,649


Page 21

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Debtors

2024
2023
£
£


Trade debtors
176,110
51,560

Other debtors
8,170
6,888

Prepayments and accrued income
170,318
581,353

354,598
639,801



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
8,149,550
9,126,786



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
212,033
481,072

Corporation tax
306,584
374,269

Other taxation and social security
134,949
122,065

Other creditors
300
349

Accruals and deferred income
49,049
44,733

702,915
1,022,488



17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



37,500 (2023 - 37,500) Ordinary shares of £1 each
37,500
37,500


Page 22

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


Reserves

Capital redemption reserve

This reserve represents the nominal value of shares redeemed.

Other reserves

This reserve represents development capital for new investment and expansion.

Profit and loss account

This reserve represents accumulated profits and losses of the Company.


19.


Capital commitments

The Company has capital commitments as at the balance sheet date to complete projects at Chalvey Park and Farnham Lane. 
The total amount contracted for but not provided in the financial statements was £1,904,974 (2023 - £Nil). 


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £209,222 (2023 - £95,389). Contributions totalling £23,738 (2023 - £21,875) were payable to the fund at the balance sheet date and are included in creditors.


21.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
99,633
91,672

Later than 1 year and not later than 5 years
295,571
340,975

Later than 5 years
-
33,000

395,204
465,647

Page 23

 
REHABILITATION EDUCATION AND COMMUNITY HOMES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

22.


Related party transactions

Remuneration relating to key management personnel amounted to £567,367 (2023: £424,881).
During the year rent of £44,000 (2023: £44,000) was paid to a pension scheme of which the Directors are beneficiaries.
The ultimate controlling party of the current and preceding year are the Directors.


23.


Post balance sheet events

In July 2025 the Directors voted a dividend of £1.33 per share, totalling £50,000 and this will be recognised in the year ended 31 December 2025.

 
Page 24