REGISTERED NUMBER: 15063145 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SPRINGCARE INVESTMENT 1 LIMITED

Page

Company Information

1

Group Strategic Report

2

to

5

Report of the Director

6

Report of the Independent Auditors

7

to

10

Consolidated Income Statement

11

Consolidated Statement of Financial Position

12

Company Statement of Financial Position

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Notes to the Consolidated Financial Statements

16

to

27

DIRECTOR:

L D Cox

REGISTERED OFFICE:

Nicholson House

Shakespeare Way

Whitchurch

Shropshire

SY13 1LJ

REGISTERED NUMBER:

15063145 (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

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

The company holds investments in trading subsidiaries which provide residential and care services for the elderly.

FINANCIAL AND BUSINESS REVIEW

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

During the year, the Group significantly expanded its operations by acquiring seven care homes. This strategic growth has increased the Group’s footprint in the UK care market, positioning it for further development in the future.

Several of the acquired care homes have required significant capital expenditure (approximately £1.41m across 2024 and 2025) primarily due to a historic lack of maintenance and investment over the past 10 to 15 years of operation. This prolonged underinvestment has adversely impacted the historic performance of several homes, which the Group has inherited. In addition, recent CQC inspections have contributed to the decision to temporarily close one site in 2025 to allow for full refurbishments. This home is scheduled to reopen in late summer or early autumn 2025.

As at 31 December 2024 the Group provided nursing and residential care to more than 420 residents across 8 care homes, with an average occupancy of 84%.

Total revenue increased by £11.9m to £12,443,647 in the year (2023: £489,904). This increase in revenue is reflected by both the contribution of the newly acquired homes and increases in average weekly fees.

Gross margins have been supported through careful management of staffing levels, with staffing levels aligned to occupancy and residents’ individual needs. EBITDA for the year stands at £1.4m (2023: £97k). This has been driven by an increase in occupancy, fee rate inflation and reducing agency usage offset by an increase to labour pay rates.

The group operates in a highly competitive market. Inflationary pressures remain a point of concern, and this will depend on the extent to which fees rise to allow for 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.

The financials presented in this year’s accounts are a testament to the robustness and resilience of the healthcare sector. Going forward the key concern is to the extent to which operations can absorb rising costs and subsequently pass onto residents via fee increases.

Key performance indicator

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 Risk Management

The groups 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 group 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.

Credit risk

The Group’s principal financial assets are cash and trade debtors. The principal credit risk arises primarily from delays or defaults in payments by local authorities, NHS bodies, and private residents. While public sector funding typically carries low default risk, delayed payments can impact cash flow. Private residents, especially those self-funding, may present higher risk due to reliance on personal assets or guarantors. To mitigate this the Group maintains clear payment terms and actively monitors aged debt.

Liquidity risk

The Group has continued to maintain liquidity and sufficient working capital for its ongoing operations and future developments. The company finances its business using a mixture of retained profit, trade credit and funding facilities provided by various lenders.

Interest rate risk

Interest rate risk requires significant consideration due to the Group’s reliance on long-term financing for property development, refurbishment, and ongoing operational support. Fluctuations in interest rates can materially impact the cost of borrowing and, consequently, the financial sustainability of care home operations.

KEY RISKS AND UNCERTAINTIES

The Group faces several 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.

Regulatory risk

Under the Health and Social Care Act 2008, the regulator for health and social care in England is the Care Quality Commission (CQC) which began operating in April 2009.

The group depends on its continued service quality and compliance with regulations. Failure to comply could result in regulatory action which could include penalties or revocation of licences to operate.

Competition

The Group try 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.

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. We continue to explore other are categories / demands with local authorities.

We continue to implement systems across the group including electronic care planning and medications, auto rostering and a recruitment onboarding system.

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.

During 2025, the Group acquired an additional care home, and we are currently reviewing further opportunities for expansion, with additional acquisitions under consideration towards the end of the year.

ON BEHALF OF THE BOARD:

L D Cox - Director

30 September 2025

The director presents his report with the financial statements of the company and the group 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.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and 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 group's auditors are aware of that information.

AUDITORS

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

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

L D Cox - Director

30 September 2025

Opinion

We have audited the financial statements of Springcare Investment 1 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company 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 group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

-	the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Director.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page six, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent 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 group 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 group 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 group risks and ensure the risks were considered throughout all areas of audit testing across all group companies. 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 within the group 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;

• obtained 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 group'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 group or the parent 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 group or the parent 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.

-	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express and opinion on the consolidated financial statements.

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

12,443,647

489,904

Cost of sales

(8,766,644

)

(200,699

)

GROSS PROFIT

3,677,003

289,205

Administrative expenses

(2,489,181

)

(273,001

)

1,187,822

16,204

Other operating income

9,208

-

OPERATING PROFIT

4

1,197,030

16,204

Interest receivable and similar income

46,254

-

1,243,284

16,204

Interest payable and similar expenses

(1,220,025

)

(63,249

)

PROFIT/(LOSS) BEFORE TAXATION

23,259

(47,045

)

Tax on profit/(loss)

9,910

7,173

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

33,169

(39,872

)

Profit/(loss) attributable to:

Owners of the parent

33,169

(39,872

)

FIXED ASSETS

Intangible assets

7

5,212,096

1,168,908

Tangible assets

8

18,767,452

1,077,569

Investments

9

-

-

23,979,548

2,246,477

CURRENT ASSETS

Stocks

10,812

1,878

Debtors

10

2,414,205

199,790

Cash at bank and in hand

1,110,063

44,713

3,535,080

246,381

CREDITORS

Amounts falling due within one year

11

(5,290,753

)

(342,279

)

NET CURRENT LIABILITIES

(1,755,673

)

(95,898

)

TOTAL ASSETS LESS CURRENT LIABILITIES

22,223,875

2,150,579

CREDITORS

Amounts falling due after more than one year

12

(22,229,578

)

(2,189,451

)

NET LIABILITIES

(5,703

)

(38,872

)

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Retained earnings

(6,703

)

(39,872

)

SHAREHOLDERS' FUNDS

(5,703

)

(38,872

)

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

The financial statements were approved by the director and authorised for issue on 30 September 2025 and were signed by:

L D Cox - Director

FIXED ASSETS

Intangible assets

7

-

-

Tangible assets

8

-

-

Investments

9

2,201

-

2,201

-

CURRENT ASSETS

Debtors

10

1,000

1,000

CREDITORS

Amounts falling due within one year

11

(2,317

)

-

NET CURRENT (LIABILITIES)/ASSETS

(1,317

)

1,000

TOTAL ASSETS LESS CURRENT LIABILITIES

884

1,000

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Retained earnings

(116

)

-

SHAREHOLDERS' FUNDS

884

1,000

Company's loss for the financial year

(116

)

-

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

The financial statements were approved by the director and authorised for issue on 30 September 2025 and were signed by:

L D Cox - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

1,000

-

1,000

Total comprehensive income

-

(39,872

)

(39,872

)

Balance at 31 December 2023

1,000

(39,872

)

(38,872

)

Changes in equity

Total comprehensive income

-

33,169

33,169

Balance at 31 December 2024

1,000

(6,703

)

(5,703

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

1,000

-

1,000

Balance at 31 December 2023

1,000

-

1,000

Changes in equity

Total comprehensive income

-

(116

)

(116

)

Balance at 31 December 2024

1,000

(116

)

884

1.	STATUTORY INFORMATION

Springcare Investment 1 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 General Information page.

The principal activity of the company is that of a holding company.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

GOING CONCERN

The Springcare Investment 1 Limited Group 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 Group are stable and are improving in the new financial year, which encourages us to believe that our forecasts are achievable.

While the Group has access to financial support from fellow Group companies, and is reliant on external lending, the forecasts prepared indicate that the Group is able to maintain operations from its own cash generation. For this reason, the Director continues to adopt the going concern basis in preparing the financial statements.

BASIS OF CONSOLIDATION

The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method. The results of companies acquired or disposed of are included in the profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

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.

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 intangible and 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 group 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.

GOODWILL

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: .

Goodwill - 5% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

INTANGIBLE ASSETS

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

TANGIBLE FIXED ASSETS

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

Plant and machinery

-

25% reducing balance

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% reducing balance

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 premises. The decision not to depreciate land and buildings was taken during the year and the accumulated depreciation to date has been reversed as at the date of the Statement of Financial Position.

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.

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.

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 Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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

FINANCE LEASES AND HIRE PURCHASE CONTRACTS

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 group 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

INVESTMENTS

Fixed asset investments are initially recorded at cost, including all associated acquisition costs, and subsequently stated at cost less any accumulated impairment losses.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 549 (2023 - 43 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Depreciation - owned assets

(49,272

)

29,785

Goodwill amortisation

214,806

18,709

Operating leases

204,790

-

Depreciation of owned assets includes the reversal of £205,398 accumulated depreciation of land and buildings.

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

18,265

-

6.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

7.	INTANGIBLE FIXED ASSETS

Group

Goodwill

£

COST

At 1 January 2024

1,187,617

Additions

4,257,994

At 31 December 2024

5,445,611

AMORTISATION

At 1 January 2024

18,709

Charge for year

214,806

At 31 December 2024

233,515

NET BOOK VALUE

At 31 December 2024

5,212,096

At 31 December 2023

1,168,908