REGISTERED NUMBER: 15778972 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 14 JUNE 2024 TO 31 DECEMBER 2024

FOR

SPRINGCARE (BROCKHAMPTON) LIMITED

Page

Company Information

1

Strategic Report

2

to

4

Report of the Director

5

Report of the Independent Auditors

6

to

9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

to

20

DIRECTOR:

L D Cox

REGISTERED OFFICE:

Nicholson House Shakespeare Way

Whitchurch

Whitchurch

United Kingdom

SY13 1LJ

BUSINESS ADDRESS:

Brockhampton Court Care Home

Brockhampton

Hereford

Herefordshire

HR1 4TQ

REGISTERED NUMBER:

15778972 (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

Leicester

Leicestershire

LE87 2BB

The director presents his strategic report for the period 14 June 2024 to 31 December 2024.

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

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 period from the Group's portfolio of eight homes. During the period, the Group significantly expanded its operations by acquiring seven care homes throughout 2024. This strategic growth has increased the Group's footprint in the UK care market, positioning it for further development in the future.

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 period. Price monitoring and market research are carried out to help mitigate such risks.

REVIEW OF BUSINESS

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

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

Staff recruitment and retention have remained stable since we acquired the home, which is a testament to the procedures which we have implemented.

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 Company 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

We inherited the home with a CQC rating of Requires Improvement.

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

26 September 2025

The director presents his report with the financial statements of the company for the period 14 June 2024 to 31 December 2024.

INCORPORATION

The company was incorporated on 14 June 2024 and commenced trading on 30 September 2024.

DIVIDENDS

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

DIRECTOR

L D Cox was appointed as a director on 14 June 2024 and held office during the whole of the period from then to the date of this report.

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 auditors are 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

26 September 2025

Opinion

We have audited the financial statements of Springcare (Brockhampton) Limited (the 'company') for the period 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 loss for the period 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:

o 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;

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

o 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;

o 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 of the company as a key audit matter related to the potential risk of fraud or irregularities.

Our procedures to respond to risks identified included the following:

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

o 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;

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

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

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

o 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

697,814

Cost of sales

(499,112

)

GROSS PROFIT

198,702

Administrative expenses

(169,654

)

29,048

Other operating income

9,208

OPERATING PROFIT

4

38,256

Interest payable and similar expenses

6

(133,784

)

LOSS BEFORE TAXATION

(95,528

)

Tax on loss

7

8,329

LOSS FOR THE FINANCIAL PERIOD

(87,199

)

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

(87,199

)

FIXED ASSETS

Intangible assets

8

1,177,094

Tangible assets

9

5,913,383

7,090,477

CURRENT ASSETS

Stocks

10

8,000

Debtors

11

288,259

Cash at bank

24,175

320,434

CREDITORS

Amounts falling due within one year

12

(7,497,110

)

NET CURRENT LIABILITIES

(7,176,676

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(86,199

)

CAPITAL AND RESERVES

Called up share capital

14

1,000

Retained earnings

15

(87,199

)

SHAREHOLDERS' FUNDS

(86,199

)

The financial statements were approved by the director and authorised for issue on 26 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

-

(87,199

)

(87,199

)

Balance at 31 December 2024

1,000

(87,199

)

(86,199

)

1.	STATUTORY INFORMATION

Springcare (Brockhampton) 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.

The financial statements have been 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.

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

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 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.

GOODWILL

Goodwill, being the amount paid in connection with the acquisition of a business in 2024, is being amortised evenly over its estimated useful life of twenty years.

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.

Fixtures and fittings - 25% straight line

Land and building - not depreciated

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.

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 period 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 period 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

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

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

3.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

433,778

Social security costs

33,841

Other pension costs

5,869

473,488

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

Employees

67

£

Director's remuneration

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

£

Other operating leases

295

Depreciation - owned assets

12,500

Goodwill amortisation

14,900

5.	AUDITORS' REMUNERATION

£

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

978

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

£

Bank loan interest

133,784

7.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the period was as follows:

£

Deferred tax

(8,329

)

Tax on loss

(8,329

)

RECONCILIATION OF TOTAL TAX CREDIT INCLUDED IN PROFIT AND LOSS

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

£

Loss before tax

(95,528

)

Loss multiplied by the standard rate of corporation tax in the UK of 25%

(23,882

)

Effects of:

Expenses not deductible for tax purposes

1,783

Utilisation of tax losses

13,770

Total tax credit

(8,329

)

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

Additions

1,191,994

At 31 December 2024

1,191,994

AMORTISATION

Amortisation for period

14,900

At 31 December 2024

14,900

NET BOOK VALUE

At 31 December 2024

1,177,094

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

property

fittings

Totals

£

£

£

COST

Additions

5,725,883

200,000

5,925,883

At 31 December 2024

5,725,883

200,000

5,925,883

DEPRECIATION

Charge for period

-

12,500

12,500

At 31 December 2024

-

12,500

12,500

NET BOOK VALUE

At 31 December 2024

5,725,883

187,500

5,913,383

10.

STOCKS

£

Stocks

8,000

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Trade debtors

221,885

Other debtors

27,233

Amounts owed by connected companies

11,086

Deferred tax asset

8,329

Prepayments and accrued income

19,726

288,259

Deferred tax asset

£

Accelerated capital allowances

1,967

Tax losses carried forward

5,923

Other timing differences

439

8,329

Amounts owed by connected undertakings are unsecured, interest free, and are repayable on demand.

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Trade creditors

46,416

Amounts owed to group undertakings

7,263,791

Social security and other taxes

30,149

Other creditors

5,717

Accruals and deferred income

151,037

7,497,110

Amounts owed to group and connected undertakings are unsecured, interest free and are repayable on demand.

There is a fixed and floating charge dated 30 September 2024 over the freehold property and the company's assets, in favour of Triodos Bank UK Limited.

13.	DEFERRED TAX

£

Credit to Statement of Comprehensive Income during period

(8,329

)

Balance at 31 December 2024

(8,329

)

14.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

value:

£

1,000

Ordinary

£1

1,000

15.

RESERVES

Retained earnings - This reserve records retained earnings and accumulated losses.

16.	OTHER FINANCIAL COMMITMENTS

The amount of other commitments, guarantees and contingencies is £12,355.

There are cross guarantees between the following companies: Kingsview Homes Limited, Ash Paddock Homes Limited, Activecare Limited, Springcare (River Meadows) Limited, Springcare (Weston) Limited, Llithyia Holdings Limited, Springcare (Shawbury) Limited, Springcare No4 Limited and Hinstock Manor Residential Homes Limited totalling £17,645,202.

17.	RELATED PARTY DISCLOSURES

During the year transactions took place with the following related parties:

i) Springcare Limited, a connected company

The two companies are connected because they are both under common control of the director Mr

L D Cox and his close family.

31.12.24

£

Expenses Paid by the connected company

(143,957

)

Expenses Paid on behalf of the connected company

43

Funds transferred from the connected company

(215,000

)

Funds transferred to the connected company

370,000

Amounts due from the connected company at the end of the year

11,086

18.	ULTIMATE CONTROLLING PARTY

The parent company is Springcare No.4 Limited who owns all of the issued share capital of the company. Springcare No.4 Limited is incorporated in England and Wales.

The ultimate parent company is Springcare Investment 1 Limited, a company incorporated in England and Wales.

19.	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.