REGISTERED NUMBER: 09826858 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

OXTONCARE LIMITED

Page

Company Information

1

Strategic Report

2

to

4

Report of the Director

5

to

6

Report of the Independent Auditors

7

to

10

Statement of Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

to

25

DIRECTOR:

L D Cox

REGISTERED OFFICE:

Nicholson House

Shakespeare Way

Whitchurch

Shropshire

SY13 1LJ

BUSINESS ADDRESS:

Oxton Grange Care Home

51-53 Bidston road

Prenton

CH43 6UJ

REGISTERED NUMBER:

09826858 (England and Wales)

SENIOR STATUTORY AUDITOR:

Michelle Coates

AUDITORS:

Sumer Auditco Limited

Chartered Accountants & Statutory Auditors

Stone House

Stone Road Business Park

Stoke-on-Trent

ST4 6SR

BANKERS:

Barclays Bank PLC

PO Box 299

Birmingham

B1 3PF

The director presents his strategic report for the year ended 31 December 2024.

The principal activity of the company is that of the provision of residential and care services for the elderly.

REVIEW OF BUSINESS

Financial summary

The results for the year and financial position of the Company are shown in the annexed statements.

The director is pleased with the 2024 contribution for the year from the Group's portfolio of eleven homes. The Group has achieved higher fee rates and stronger occupancy compared to the previous year. Occupancy levels have continued to improve through 2025, maintaining this positive trend.

The Company and the Group put measures in place to protect the business, by actively streamlining the business and cutting unnecessary costs during the year. We have had to review regularly our payroll costs compared to the number of residents that are in the home and their individual needs.

The Group operates in a highly competitive market. Inflationary pressures remain a point of concern and this will depend on the extent on how fees rise to allow to be offset against the inflationary pressures and the resulting cost of care provision. The sector uses a significant amount of labour, energy and food, costs of which all saw price growth in the year. Price monitoring and market research are carried out to help mitigate such risks.

Occupancy levels are improving and referrals are more fluid than previous years. The average occupancy in 2024 has increased by 5% to 97%, together with an increase in the average fee of 11% on the previous year.

KEY PERFORMANCE INDICATORS

The key performance indicators used to monitor progress of the Company against its objectives are:

- Average occupancy

- Average weekly fee levels

- Staff turnover and retention

- Staff and agency costs

- EBITDA

- Compliance with changing legislation i.e. CQC, HSE

Financial

The director regularly monitors EBITDA, occupancy, fee levels, and agency costs to ensure financial stability and operational efficiency.

We have seen an improvement in recruitment and retention in 2024 of staff for all roles across the Group and staff numbers have increased within the home.

The government's shortage list has supported recruitment drives and through a successful to date sponsorship programme, the Company has managed to reduce vacancies for staff.

Non-Financial

Staff KPI's include the review of retention of staff, together with monitoring staff recruitment and ensuring the training of our staff.

Clinical quality monitors safety, service user experience and management education and training and development.

KEY RISKS AND UNCERTAINTIES

The company faces a number of risks and uncertainties from external factors. The following are the most significant;

Reputation

Serious events related to the delivery of care services have the potential to generate negative media coverage and increase scrutiny from both regulators and the families of residents.

To reduce this risk, we provide ongoing training to all staff through a structured programme that includes both mandatory and specialist development. All care staff undergo Disclosure and Barring Service (DBS) checks. We also utilise a leading electronic compliance system to monitor adherence to care standards. Robust procedures are in place to report and review risks and incidents, with lessons learned integrated into practice to help prevent recurrence.

Competition

The Group tries to remain as competitive as possible within the geographical locations of our homes. The business monitors prices to ensure its services are appropriately priced to compete and provide value for residents.

Other key considerations are population density, age profile and the availability of staff.

The UK's over-65 population is expected to grow to approximately 15.3?million by 2030 and 18.8?million by 2050, and current market analysis indicates that this will continue to place significant pressure on the elderly care sector. The market remains at risk of reaching capacity by the end of this decade, with a shortfall of more than 200,000 care beds anticipated by 2050, underscoring the ongoing need for additional investment and development.

Financial risk management

The Company's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of finance and related finance costs.

Key procedures include;

- monthly management account reporting

- regular cashflow re-forecasting as circumstances change; and

- involvement of the management team in the day-to-day operations of the Company and it's subsidiaries

Fee revenue

A proportion of the Company's turnover is derived from government funded clients and as such increases in fee rates are important for the Company to maintain its margins. If fee rates do not increase in line with costs then the Company is likely to suffer lower margins as a result.

Quality and regulation

The Company's current overall CQC rating is good.

The success of the Company is reliant on compliance with our regulators. We continue to strive to provide high quality services within a challenging economic time and are full aware of any failure to comply could include financial penalties, revocation of licences to operate and damage to reputation. The current portfolio of homes in relation to overall compliance finds the Company in a strong position.

Property risks

Property risks include the potential for significant events such as major fires, legionella outbreaks, structural damage, or critical equipment failure. A serious fire could pose a direct threat to the safety of residents and staff, while the loss of key infrastructure or equipment could severely disrupt care delivery.

To mitigate these risks, external fire risk assessments are conducted annually or at the latest every three years, with interim internal reviews ensuring any emerging concerns, whether that is structural or operational, are promptly addressed. We aim for full compliance across all statutory planned maintenance activities, including routine checks of fire alarms and gas systems.

Staff training is a key element of our fire safety strategy, ensuring that team members are not only prepared to respond to emergencies but are also aware of potential fire hazards. Additionally, all care homes operate under a legionella testing and compliance schedule. Our overall approach remains strongly risk-averse, prioritising safety and service continuity at all times.

FUTURE DEVELOPMENTS

The Group plans to continue to develop and deliver high quality nursing and residential services.

As part of our commitment to improving operational efficiency and financial oversight, we have recently implemented several key systems. We introduced a dedicated prepaid card and expense management system to handle residents' monies, providing enhanced transparency, security, and accountability in managing these funds. In addition, in 2025, we deployed a new cash flow management system that enables us to more effectively monitor, manage, and accurately forecast the business's future cash flow position, thereby strengthening our financial planning capabilities.

ON BEHALF OF THE BOARD:

L D Cox - Director

29 September 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

L D Cox held office during the whole of the period from 1 January 2024 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 in relation to future developments of the company.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

L D Cox - Director

29 September 2025

Opinion

We have audited the financial statements of OXTONCARE LIMITED (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Strategic Report and the Report of the Director 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 Report of the Director.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

•

the nature of the industry and sector, control environment and business performance including the design of the company remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;

•

results of our enquiries of management about their own identification and assessment of the risks of irregularities;

•

any matters we identified having obtained and reviewed the company documentation of their policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

•

the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

Based on this approach, we were able to assess the company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information.

Audit response to risks identified

As a result of performing the above, we identified the outcome of CQC inspections as a key audit matter related to the potential risk of fraud or irregularities.

Our procedures to respond to risks identified included the following:

• reviewing the outcome of CQC inspections and other correspondence with CQC.

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• obtaining an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

-

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

-	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

-	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director.

-

Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern.

-	Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

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

Michelle Coates (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Chartered Accountants & Statutory Auditors

Stone House

Stone Road Business Park

Stoke-on-Trent

ST4 6SR

30 September 2025

TURNOVER

2,565,544

2,207,475

Cost of sales

(1,757,493

)

(1,571,018

)

GROSS PROFIT

808,051

636,457

Administrative expenses

(286,877

)

(401,434

)

521,174

235,023

Other operating income

2,446

12,588

OPERATING PROFIT

4

523,620

247,611

Interest receivable and similar income

-

6

523,620

247,617

Interest payable and similar expenses

6

(15,067

)

(2,107

)

PROFIT BEFORE TAXATION

508,553

245,510

Tax on profit

7

(61,052

)

(59,303

)

PROFIT FOR THE FINANCIAL YEAR

447,501

186,207

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

447,501

186,207

FIXED ASSETS

Tangible assets

8

4,765,000

5,309,848

CURRENT ASSETS

Stocks

9

2,078

1,826

Debtors

10

2,620,058

2,051,392

Cash at bank and in hand

18,024

111,358

2,640,160

2,164,576

CREDITORS

Amounts falling due within one year

11

(566,122

)

(586,487

)

NET CURRENT ASSETS

2,074,038

1,578,089

TOTAL ASSETS LESS CURRENT LIABILITIES

6,839,038

6,887,937

PROVISIONS FOR LIABILITIES

14

(38,768

)

(55,602

)

NET ASSETS

6,800,270

6,832,335

CAPITAL AND RESERVES

Called up share capital

15

100

100

Special reserve

16

3,814,229

3,814,229

Non-distributable reserve

16

417,470

897,036

Retained earnings

16

2,568,471

2,120,970

SHAREHOLDERS' FUNDS

6,800,270

6,832,335

The financial statements were approved by the director and authorised for issue on 29 September 2025 and were signed by:

L D Cox - Director

Called up

share

Retained

Special

Non-distributable

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

100

1,934,763

3,814,229

897,036

6,646,128

Changes in equity

Total comprehensive income

-

186,207

-

-

186,207

Balance at 31 December 2023

100

2,120,970

3,814,229

897,036

6,832,335

Changes in equity

Revaluation of fixed assets

-

-

-

(479,566

)

(479,566

)

Total comprehensive income

-

447,501

-

-

447,501

Balance at 31 December 2024

100

2,568,471

3,814,229

417,470

6,800,270

1.	STATUTORY INFORMATION

OXTONCARE LIMITED is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal activity of the company is that of the provision of residential and care services for the elderly.

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

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

The financial statements are prepared in sterling, which is the functional currency of the entity.

GOING CONCERN

The Springcare group forecast shows positive results and cash generation. The director has considered the current inflationary environment and the forecast takes into account cost pressures within the group. Occupancy levels for the Springcare Limited Group have steadily increased during the year and have continued to improve in the new financial year, which encourages us to believe that our forecasts are achievable.

The Director also considers that there is a reasonable expectation that the Company will have sufficient financial support from its fellow group companies when required and therefore have adequate resources to remain in operation for the foreseeable future. For this reason, the Director continues to adopt the going concern basis in preparing the financial statements.

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statement are consolidated into the financial statements of Springcare Limited which can be obtained from Nicholson House, Shakespeare Way, Whitchurch, England, SY13 1LJ. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company.

(b) Disclosures in respect of financial instruments have not been presented.

(c) No disclosure has been given for the aggregate remuneration of key management personnel.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

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

Judgements

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

The tangible fixed assets are regularly revalued based on independent valuations which adopt value in use as the valuation basis. Value in use is determined by considering various factors such as EBITDA, occupancy levels and trading potential. As the valuations are performed at a particular point in time, they may be subject to fluctuation depending on current trading conditions. Due to this, the director regularly reviews the value in use to ensure that it is still appropriate.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidenced by disposals during current and prior accounting periods.

REVENUE RECOGNITION

The company provides residential and care services to the elderly. The turnover shown in the profit and loss account represents the fees due for the services provided during the year. Revenue is recognised in the period of care to which it is applicable.

TANGIBLE FIXED ASSETS

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

Fixtures and fittings

-

25% on cost

Depreciation on land and buildings is not provided, as any uncharged depreciation for the year and the accumulated uncharged depreciation would be immaterial in aggregate, as a result of the estimated high residual value of the properties.

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Tangible fixed assets are valued on a value in use basis as a fully operational entity including fixtures and fittings, tools and equipment held by the company and having regard to its trading potential. Due to the specialist nature of the valuations, no deferred tax has been provided on the increase in value.

FINANCIAL INSTRUMENTS

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

TAXATION

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

Current or deferred taxation assets and liabilities are not discounted.

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

DEFERRED TAX

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

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

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

HIRE PURCHASE AND LEASING COMMITMENTS

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

OPERATING LEASES

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

DEFINED CONTRIBUTION PLANS

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

EMPLOYEE BENEFITS

The company provides a range of benefits to employees.

Short term benefits, including holiday pay, are recognised as an expenses in the profit and loss account in the period in which they are incurred

IMPAIRMENT OF FIXED ASSETS

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

3.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

1,514,731

1,361,679

Social security costs

111,809

20,858

Other pension costs

24,503

93,626

1,651,043

1,476,163

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

31.12.24

31.12.23

Total Staff Costs

67

70

31.12.24

31.12.23

£

£

Director's remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.24

31.12.23

£

£

Other operating leases

8,293

6,111

Depreciation - owned assets

69,990

19,731

5.	AUDITORS' REMUNERATION

31.12.24

31.12.23

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

3,815

3,375

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank interest

-

375

Hire purchase interest

15,067

1,732

15,067

2,107

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

77,886

15,707

Deferred tax

(16,834

)

43,596

Tax on profit

61,052

59,303

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

£

Profit before tax

508,553

245,510

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

127,138

61,378

Effects of:

Expenses not deductible for tax purposes

344

149

Capital allowances in excess of depreciation

(321

)

(817

)

Effects of differing tax rates during the year

-

43,596

Future changes in tax rates

-

(988

)

Group Relief

(66,109

)

(44,015

)

Total tax charge

61,052

59,303

8.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

property

fittings

Totals

£

£

£

COST OR VALUATION

At 1 January 2024

5,063,196

361,667

5,424,863

Additions

-

4,708

4,708

Revaluations

(479,566

)

-

(479,566

)

At 31 December 2024

4,583,630

366,375

4,950,005

DEPRECIATION

At 1 January 2024

-

115,015

115,015

Charge for year

-

69,990

69,990

At 31 December 2024

-

185,005

185,005

NET BOOK VALUE

At 31 December 2024

4,583,630

181,370

4,765,000

At 31 December 2023

5,063,196

246,652

5,309,848

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

31.12.24

31.12.23

£

£

Fixtures and fittings

143,979

25,442

143,979

25,442

The assets are secured under finance leases or hire purchase agreements taken out on behalf of the company by the ultimate parent company, Springcare Limited.

Cost or valuation at 31 December 2024 is represented by:

Fixtures

Freehold

and

property

fittings

Totals

£

£

£

Valuation in 2021

897,036

-

897,036

Valuation in 2024

(479,566

)

-

(479,566

)

Cost

4,166,160

366,375

4,532,535

4,583,630

366,375

4,950,005