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Registered number: 15183412


KONKU CARE (SUTTON) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024




 
KONKU CARE (SUTTON) LIMITED
 
 
COMPANY INFORMATION


Director
S K Konkumalla (appointed 3 October 2023)




Company secretary
B Konkumalla



Registered number
15183412



Registered office
Orchard House
35 Hallmead Road

Sutton

Surrey

SM1 1RD





 
KONKU CARE (SUTTON) LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Director's report
3 - 4
Independent auditors' report
5 - 9
Consolidated statement of comprehensive income
10
Consolidated balance sheet
11 - 12
Company balance sheet
13
Consolidated statement of changes in equity
14
Company statement of changes in equity
15
Consolidated statement of cash flows
16
Consolidated analysis of net debt
17
Notes to the financial statements
18 - 36


 
KONKU CARE (SUTTON) LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024

Introduction
 
The director presents his strategic report on the accounts for the period ended 31 December 2024.

Business review
 
The group's principal activity continues to be the operation of two nursing homes based in Surrey.

Principal risks and uncertainties
 
The principal risk to the growth in fees generated in the companies is that local authorities and the NHS do not increase their payments at the same rate as the rise in cost of operating the care homes. Experience shows, however, that supply and demand over the long-term help to adjust this difference.
Historically, staff costs account for typically 65% to 70% of the total operation costs in a care home. Any government pay rises to NHS nursing staff need to be matched for those working in the care home in order to retain staff.
The lower paid staff wage rates are linked directly to the level of the minimum wage. Any percentage increases in the minimum wage above the percentage rate of increase in the fees agreed by local goverment to be paid to care homes impacts on the group's profitability.
The director ensures that there are agreements in place with the local authorities, together with regular dialogue, to ensure occupancy rates are maintained at a high level.
The director recognises the importance of staff and in particular nursing staff. Staff is the company's greatest asset. For this reason the director dedicates time and resources to ensuring the permanent recruitment of nursing staff instead of being reliant on agency staff, who are only used as a last resort. This ensures continuity with quality of care.

Financial key performance indicators
 
The group's key performance indication is the monthly turnover. The results for the nine months to 31 December 2024 showed turnover amounting to £3,192,098. The major reason for better performance compared to the group performance prior to acquisition was the higher bed occupancy as a result of more shared rooms during the financial period which results in a greater turnover.
The group's other key performance indicator is the monthly staff costs. As noted above the total costs are typically 65% to 70% of fee income. For 31 December 2024 this amounted to 61.95% and was the result of the high occupancy level achieved referred to above.

Other key performance indicators
 
The company's key performance indication is the weekly occupancy report. The group has managed to maintain occupancy rates of 95%, which in turn enables the delivery of the care noted above using permanent staff.

Page 1

 
KONKU CARE (SUTTON) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024


This report was approved by the board on 2 October 2025 and signed on its behalf.








S K Konkumalla
Director

Page 2

 
KONKU CARE (SUTTON) LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024

The director presents his report and the financial statements for the period ended 31 December 2024.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the 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 for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He 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.

Results and dividends

The profit for the period, after taxation, amounted to £146,543.

No dividends have been proposed for the period.

Director

The director who served during the period was:

S K Konkumalla (appointed 3 October 2023)

Future developments

The director is working towards increasing the bed capacity through alterations to the existing buildings to increase turnover and therefore the group's profitability.

Page 3

 
KONKU CARE (SUTTON) LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsCWMwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 2 October 2025 and signed on its behalf.
 








S K Konkumalla
Director

Page 4

 
KONKU CARE (SUTTON) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KONKU CARE (SUTTON) LIMITED
 

Opinion


We have audited the financial statements of KONKU CARE (SUTTON) LIMITED (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's profit 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the 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 or 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.


Page 5

 
KONKU CARE (SUTTON) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KONKU CARE (SUTTON) LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 Director's report.


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


adequate accounting records have not been kept 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.


Page 6

 
KONKU CARE (SUTTON) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KONKU CARE (SUTTON) LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 3, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the 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.


Page 7

 
KONKU CARE (SUTTON) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KONKU CARE (SUTTON) LIMITED (CONTINUED)


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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of designing our audit approach, we determined a materiality level and assessed the risks of material misstatement in the financial statements, including how fraud may occur through enquiries of management regarding its assessment of the areas and liklihood of fraud.
We looked at the areas where subjective judgements were made by management. In particular we looked at significant accounting estimates which were the result of assumptions made and based upon future events which are inherently uncertain. We also considered the effect of potential financial and other pressures, opportunity and motivations for fraud. We identified the use of internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management motitor these procedures. As part of our audit we reviewed and tested journals, key estimates and judgements made by management.
Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management.
We did not identify any key audit matters relating to irregularites, including fraud. We considered the risk of management override of internal controls and carried out tests to to evaluate this.
Our audit procedures are designed to identify risks of material misstatement, recognising that risks of not detecting such material misstatements due to fraud is greater then the risk due to error, due to the fact that fraud may well involve deliberate concealment. The audit procedures have inherent limitations. The further removed that non-compliance with laws and regulations are from the events and transactions included in the financial statements, the less likely we are to detect it.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 8

 
KONKU CARE (SUTTON) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KONKU CARE (SUTTON) LIMITED (CONTINUED)


Use of our report
 

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








Mark Cooper FCA (Senior statutory auditor)
  
for and on behalf of
CWM
 
Chartered Accountants
Registered Auditors
  
1a High Street
Epsom
Surrey
KT19 8DA

2 October 2025
Page 9

 
KONKU CARE (SUTTON) LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024

Period ended
31 December
2024
Note
£

  

Turnover
 4 
3,192,098

Cost of sales
  
(1,006,905)

Gross profit
  
2,185,193

Administrative expenses
  
(1,711,014)

Operating profit
  
474,179

Interest receivable and similar income
 8 
14

Interest payable and similar expenses
 9 
(143,978)

Profit before taxation
  
330,215

Tax on profit
 10 
(183,672)

Profit for the financial period
  
146,543

  

Unrealised surplus on revaluation of tangible fixed assets
  
251,175

Other comprehensive income for the period
  
251,175

Total comprehensive income for the period
  
397,718

Profit for the period attributable to:
  

Owners of the parent Company
  
146,543

  
146,543

Total comprehensive income for the period attributable to:
  

Owners of the parent Company
  
397,718

  
397,718

The notes on pages 18 to 36 form part of these financial statements.

Page 10

 
KONKU CARE (SUTTON) LIMITED
REGISTERED NUMBER: 15183412

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
Note
£

Fixed assets
  

Intangible assets
 11 
1,421,404

Tangible assets
 12 
5,118,330

  
6,539,734

Current assets
  

Debtors: amounts falling due within one year
 14 
340,286

Cash at bank and in hand
 15 
175,455

  
515,741

Creditors: amounts falling due within one year
 16 
(4,182,799)

Net current (liabilities)/assets
  
 
 
(3,667,058)

Total assets less current liabilities
  
2,872,676

Creditors: amounts falling due after more than one year
  
(2,403,906)

Provisions for liabilities
  

Deferred taxation
 19 
(70,952)

  
 
 
(70,952)

Net assets excluding pension asset
  
397,818

Net assets
  
397,818


Capital and reserves
  

Called up share capital 
 20 
100

Profit and loss account
  
397,718

Equity attributable to owners of the parent Company
  
397,818

  
397,818


Page 11

 
KONKU CARE (SUTTON) LIMITED
REGISTERED NUMBER: 15183412
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 October 2025.







S K Konkumalla
Director

The notes on pages 18 to 36 form part of these financial statements.

Page 12

 
KONKU CARE (SUTTON) LIMITED
REGISTERED NUMBER: 15183412

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
Note
£

Fixed assets
  

Investments
 13 
4,225,000

  
4,225,000

Current assets
  

Debtors: amounts falling due within one year
 14 
2,376,769

Cash at bank and in hand
 15 
10,375

  
2,387,144

Creditors: amounts falling due within one year
 16 
(4,207,636)

Net current (liabilities)/assets
  
 
 
(1,820,492)

Total assets less current liabilities
  
2,404,508

  

Creditors: amounts falling due after more than one year
  
(2,403,906)

  

Net assets excluding pension asset
  
602

Net assets
  
602


Capital and reserves
  

Called up share capital 
 20 
100

Profit for the period
  
502

Profit and loss account carried forward
  
502

  
602


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 October 2025.







S K Konkumalla
Director

The notes on pages 18 to 36 form part of these financial statements.

Page 13

 
KONKU CARE (SUTTON) LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£


Comprehensive income for the period

Profit for the period

-
146,543
146,543
146,543

Fair value adjustments
-
251,175
251,175
251,175


Other comprehensive income for the period
-
251,175
251,175
251,175


Total comprehensive income for the period
-
397,718
397,718
397,718


Contributions by and distributions to owners

Shares issued during the period
100
-
100
100


Total transactions with owners
100
-
100
100


At 31 December 2024
100
397,718
397,818
397,818

The notes on pages 18 to 36 form part of these financial statements.

Page 14

 
KONKU CARE (SUTTON) LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


Comprehensive income for the period

Profit for the period

-
502
502


Other comprehensive income for the period
-
-
-


Total comprehensive income for the period
-
502
502


Contributions by and distributions to owners

Shares issued during the period
100
-
100


Total transactions with owners
100
-
100


At 31 December 2024
100
502
602

The notes on pages 18 to 36 form part of these financial statements.

Page 15

 
KONKU CARE (SUTTON) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024

2024
£

Cash flows from operating activities

Profit for the financial period
146,543

Adjustments for:

Amortisation of intangible assets
115,249

Depreciation of tangible assets
12,820

Interest paid
143,978

Interest received
(14)

Taxation charge
183,672

(Increase)/decrease in debtors
(340,284)

Increase in creditors
373,437

Increase in amounts owed to groups
3,586,818

Corporation tax (paid)/received
(111)

Net cash generated from operating activities

4,222,108


Cash flows from investing activities

Purchase of intangible fixed assets
(1,536,653)

Purchase of tangible fixed assets
(4,879,976)

Interest received
14

Net cash from investing activities

(6,416,615)

Cash flows from financing activities

Issue of ordinary shares
100

New secured loans
2,513,840

Interest paid
(143,978)

Net cash used in financing activities
2,369,962

Net increase in cash and cash equivalents
175,455

Cash and cash equivalents at the end of period
175,455


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
175,455

175,455


The notes on pages 18 to 36 form part of these financial statements.

Page 16

 
KONKU CARE (SUTTON) LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 DECEMBER 2024



Cash flows
At 31 December 2024
£

£

Cash at bank and in hand

175,455

175,455

Debt due after 1 year

-

-

Debt due within 1 year

(2,513,840)

(2,513,840)


(2,338,385)
(2,338,385)

The notes on pages 18 to 36 form part of these financial statements.

Page 17

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

1.Accounting policies

 
1.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
1.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 03 October 2023.

Page 18

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

 
1.3

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

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

 
1.4

Interest income

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

 
1.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
1.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

Page 19

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

 
1.7

Pensions

Defined contribution pension plan

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

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

 
1.8

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 20

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

 
1.9

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
10
years

 
1.10

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as set out below.

Depreciation is provided on the following basis:

Freehold property
-
based on fair value
Motor vehicles
-
25%
Reducing balance basis
Fixtures and fittings
-
25%
Reducing balance basis
Office equipment
-
25%
Reducing balance basis
Computer equipment
-
33%
Straight line basis

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

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

Page 21

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

 
1.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
1.12

Debtors

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

 
1.13

Cash and cash equivalents

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

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

 
1.14

Creditors

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

 
1.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
1.16

Financial instruments

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

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Page 22

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

1.Accounting policies (continued)


1.16
Financial instruments (continued)

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

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

Other financial assets

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

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

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

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

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Page 23

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

1.Accounting policies (continued)


1.16
Financial instruments (continued)


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

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.


2.


General information

The company is a private limited company incorporated in England and Wales. Its registered office is situated at Orchard House, 35 Hallmead Road, Sutton, Surrey SM1 1RD.

Page 24

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will therefore seldom equal the related actual results.
The significant estimates and assumptions are detailed below:-
Revenue Recognition
Revenue recoginition is based on the charges for bed spaces relating to the period in which the bed is occupied. 


4.


Turnover

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


Period ended
31 December
2024
£

Resident occupancy fees
510,883

NHS occupancy fees
2,118,341

RNCC fees
292,350

Other fees
270,524

3,192,098


Analysis of turnover by country of destination:

Period ended
31 December
2024
£

United Kingdom
3,192,098

3,192,098


Page 25

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

5.


Auditors' remuneration

During the period, the Group obtained the following services from the Company's auditors:


Period ended
31 December
2024
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
14,400


6.


Employees

Staff costs were as follows:


Group
2024
£


Wages and salaries
1,801,185

Social security costs
161,226

Cost of defined contribution scheme
233,557

2,195,968


The average monthly number of employees, including the director, during the period was as follows:


     Period ended
     31 December
        2024
            No.






S J Pittman Limited
37



Sutton Nursing Homes Limited
43

80

The Company has no employees other than the directors, who did not receive any remunerationNIL)
Page 26

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

7.


Director's remuneration

Period ended
31 December
2024
£

Group contributions to defined contribution pension schemes
200,000

200,000



8.


Interest receivable

Period ended
31 December
2024
£


Other interest receivable
14

14


9.


Interest payable and similar expenses

Period ended
31 December
2024
£


Bank interest payable
143,978

143,978

Page 27

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

10.


Taxation


Period ended
31 December
2024
£

Corporation tax


Current tax on profits for the year
112,720


112,720


Total current tax
112,720

Deferred tax


Origination and reversal of timing differences
70,952

Total deferred tax
70,952


183,672

Factors affecting tax charge for the period

The tax assessed for the period is higher than the standard rate of corporation tax in the UK of 25%. The differences are explained below:

Period ended
31 December
2024
£


Profit on ordinary activities before tax
330,215


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25%
82,554

Effects of:


Non-tax deductible amortisation of goodwill and impairment
28,813

Capital allowances for period in excess of depreciation
1,353

Short-term timing difference leading to an increase (decrease) in taxation
70,952

Total tax charge for the period
183,672

Page 28

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
 
10.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Intangible assets

Group and Company




Goodwill

£



Cost


Additions
1,536,653



At 31 December 2024

1,536,653



Amortisation


Charge for the period on owned assets
115,249



At 31 December 2024

115,249



Net book value



At 31 December 2024
1,421,404



Page 29

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

12.


Tangible fixed assets

Group






Freehold property
Motor vehicles
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


Additions
4,808,825
714
44,147
20,353
5,937
4,879,976


Revaluations
251,175
-
-
-
-
251,175



At 31 December 2024

5,060,000
714
44,147
20,353
5,937
5,131,151



Depreciation


Charge for the period on owned assets
-
134
6,622
3,817
2,248
12,821



At 31 December 2024

-
134
6,622
3,817
2,248
12,821



Net book value



At 31 December 2024
5,060,000
580
37,525
16,536
3,689
5,118,330




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


2024
£

Freehold
5,060,000

5,060,000



13.


Fixed asset investments

Group












Page 30

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Company





Investments in subsidiary companies

£



Cost or valuation


Additions
4,225,000



At 31 December 2024
4,225,000





Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Pittman (Holdings) Limited
Orchard House, 35 Hallmead Road, Sutton SM1 1RD
Ordinary
100%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

LNH Properties Limited
Orchard House, 35 Hallmead Road, Sutton SM1 1RD
Ordinary
100%
SNH Properties Limited
Orchard House, 35 Hallmead Road, Sutton SM1 1RD
Ordinary
100%
S J Pittman Limited
Orchard House, 35 Hallmead Road, Sutton SM1 1RD
Ordinary
100%
Sutton Nursing Homes Limited
Orchard House, 35 Hallmead Road, Sutton SM1 1RD
Ordinary
100%


14.


Debtors

Group
Company
2024
2024
£
£


Trade debtors
271,971
-

Amounts owed by group undertakings
-
2,376,769
Page 31

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

14.Debtors (continued)


Prepayments and accrued income
68,315
-

340,286
2,376,769



15.


Cash and cash equivalents

Group
Company
2024
2024
£
£

Cash at bank and in hand
175,455
10,375

175,455
10,375



16.


Creditors: Amounts falling due within one year

Group
Company
2024
2024
£
£

Bank loans
109,934
109,934

Trade creditors
98,291
-

Amounts owed to group undertakings
3,586,818
4,097,535

Corporation tax
112,609
167

Other taxation and social security
56,624
-

Other creditors
177,247
-

Accruals and deferred income
41,276
-

4,182,799
4,207,636



The following liabilities were secured:
Group
Company
2024
2024
£
£

Bank loans
109,934
109,934

109,934
109,934

Details of security provided:

The bank loans are secured on the company's freehold property.

Page 32

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

17.


Creditors: Amounts falling due after more than one year

Group
Company
2024
2024
£
£

Bank loans
2,403,906
2,403,906

2,403,906
2,403,906



The following liabilities were secured:
Group
Company
2024
2024
£
£


Bank loans
2,403,906
2,403,906

2,403,906
2,403,906

Details of security provided:

The bank loans are secured on the company's freehold property.


The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
Group
Company
2024
2024
£
£


Repayable by instalments
2,403,906
2,403,906

2,403,906
2,403,906



Page 33

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

18.


Loans


Analysis of the maturity of loans is given below:


Group
Company
2024
2024
£
£

Amounts falling due within one year

Bank loans
109,934
109,934

Amounts falling due 1-2 years

Bank loans
114,098
114,098

Amounts falling due 2-5 years

Bank loans
404,486
404,486

Amounts falling due after more than 5 years

Bank loans
1,885,322
1,885,322

2,513,840
2,513,840



19.


Deferred taxation


Group



2024


£






Charged to profit or loss
(70,952)



At end of year
(70,952)

Page 34

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
 
19.Deferred taxation (continued)

Company


2024






At end of year
-
The deferred taxation balance is made up as follows:

Group
2024
£

Accelerated capital allowances
(8,158)

Tax provision on revaluation of properties
(62,794)

(70,952)


20.


Share capital

2024
£
Allotted, called up and fully paid


100 Ordinary shares of £1.00 each
100


The company issued 100 ordinary shares of £1 each on incorporation to raise working capital.


21.


Contingent liabilities

There is a fixed and floating charge over all the assets of the company by Barclays Bank Plc. The charge includes a cross guarantee between all the members of the group. The amount outstanding to Barclays Bank Plc by the group at the balance sheet date amounted to £4,715,819.


22.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £233,557. Contributions totalling £8,867 were payable to the fund at the balance sheet date and are included in creditors.


23.


Related party transactions

Included in creditors falling due within one year is the amount of £3,586,818 due to the parent company, Konku Holdings Limited, a company in which the director has a material interest.

Page 35

 
KONKU CARE (SUTTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

24.


Controlling party

The company and group are controlled by S K Konkumalla and B Konkumalla.

 
Page 36