ACCOUNTS - Final Accounts

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

18 October 2024

30 September 2024

Registered number: 04655190

OHI CHECK HOUSE LTD

(FORMERLY KNOWN AS THE CHECK HOUSE LIMITED)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

OHI CHECK HOUSE LTD

COMPANY INFORMATION

DIRECTORS	Mr R Cannon (resigned 18 October 2024)
	Mr V Gupta (appointed 18 October 2024)
	Mr N A Ballew (appointed 18 October 2024)
	Mr D J Booth (appointed 18 October 2024, resigned 2 January 2025)
	Mr R O Stephenson (appointed 18 October 2024)


REGISTERED NUMBER	04655190


REGISTERED OFFICE	C/O Arnold & Porter Kaye Scholer (UK) LLP Tower 42
	25 Old Broad Street
	London
	EC2N 1HQ


INDEPENDENT AUDITORS	Albert Goodman LLP
	Goodman House
	Blackbrook Park Avenue
	Taunton
	United Kingdom
	TA1 2PX

OHI CHECK HOUSE LTD

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 8
Statement of comprehensive income	9
Statement of financial position	10
Statement of changes in equity	11
Notes to the financial statements	12 - 26

OHI CHECK HOUSE LTD

STRATEGIC REPORT

FOR THE PERIOD ENDED 18 OCTOBER 2024

INTRODUCTION

The principal activity of the company during the period was that of a residential care home operator.

On 18 October 2024, the entire share capital of Cannon Care Home Limited (the company's ultimate parent company) was acquired by OHI UK Healthcare Properties Limited.
Immediately following the ownership change the company's trade and assets were acquired by a fellow group company, excluding the property, which was not transferred until 31 December 2024.
Following the transfer of the property the company ceased to trade, and as such the Directors consider it appropriate to prepare the financial statements on a basis other than a going concern basis. All assets have been adjusted to reflect their expected net realisable value and provisions have been made for all known current and future liabilities. It should be noted that the historic classification of assets and liabilities have been retained, reflecting the future use of the assets by the wider group. For example the fixed assets have not been reclassified as current assets.

BUSINESS REVIEW

The loss for the period, amounted to £55,193 (2024: (Profit) £461,594).
The directors acknowledge that the shortened period impacts a users ability to understand the results. However, they are satisfied with the results for the period as set in the comprehensive income statement and the new owners of the trade are positive that the home will continue to provide an excellent service to the community. The care home continues to be rated “Outstanding” by The Care Quality Commission, providing a high quality of care and environment for both residents and staff to enjoy. Whilst staffing still remains one of the key challenges across the sector, the company has benefited from the employment of overseas workers and some easing in the recruitment within the local area.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are trading performance and the ability of the company to continue as a going concern. See note 2.3 to the accounts for further details. However, as noted above the company ceased to trade following the transfer of its trade and assets to a fellow group company, and as a result the directors consider it appropriate to prepare the financial statements on a basis other than a going concern basis.
Exposure to liquidity and cashflow risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company has aimed to mitigate this by the managing of cash generation by its operations.
Cash flow risk is the risk to variability that is attributable to a particular risk associated with the recognised asset or liability. The Company has managed this risk by maintaining a rolling cash flow forecast to ensure it has sufficient working capital to operate efficiently.
Regulation and compliance risk
The Company has faced risks from noncompliance with key regulation and compliance required within the care home sector. The Company aimed to mitigate this risk by maintaining compliance with all key regulations, and regularly monitoring these throughout the period.

FINANCIAL KEY PERFORMANCE INDICATORS

Key financial performance indicators which the company uses to monitor performance are salary costs as a percentage of income, and EBITDA.

Page 1

OHI CHECK HOUSE LTD

STRATEGIC REPORT (CONTINUED)

FOR THE PERIOD ENDED 18 OCTOBER 2024

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

Mr V Gupta

Director

Date: 9 October 2025

Page 2

OHI CHECK HOUSE LTD

DIRECTORS' REPORT

FOR THE PERIOD ENDED 18 OCTOBER 2024

The directors present their report and the financial statements for the period ended 18 October 2024.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the director is required to:

∙select suitable accounting policies for the Company's financial statements 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PRINCIPAL ACTIVITY

The principal activity of the Company during the year was that of a residential care home operator. As noted within the introduction section of the strategic report the company has now ceased to trade.

RESULTS AND DIVIDENDS

The loss for the period, after taxation, amounted to £55,193 (2024: profit £461,594).

DIRECTORS

The directors who served during the period were:

Mr R Cannon (resigned 18 October 2024)

Mr V Gupta (appointed 18 October 2024)

Mr N A Ballew (appointed 18 October 2024)

Mr D J Booth (appointed 18 October 2024, resigned 2 January 2025)

Mr R O Stephenson (appointed 18 October 2024)

FUTURE DEVELOPMENTS

As noted within the Strategic report the company, following the transfer of its trade and assets to another group company, has ceased to trade. The directors are therefore preparing the financial statements on a basis other than a going concern basis.

Page 3

OHI CHECK HOUSE LTD

DIRECTORS' REPORT (CONTINUED)

FOR THE PERIOD ENDED 18 OCTOBER 2024

FINANCIAL RISK MANAGEMENT

The principal financial risk faced by the company is liquidity risk. However, the Company is trading profitably and maintains a positive cash balance. In addition, regular cash flow forecasts are prepared which take into account the predictable operational revenue and cost streams.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

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

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

Mr V Gupta

Director

Date: 9 October 2025

C/O Arnold & Porter Kaye Scholer (UK) LLP Tower 42

25 Old Broad Street

London

EC2N 1HQ

Page 4

OHI CHECK HOUSE LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OHI CHECK HOUSE LTD

OPINION

We have audited the financial statements of OHI Check House Limited (the 'company') for the period ended 18 October 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related Notes, 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 18 October 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 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.

EMPHASIS OF MATTER - CONCLUSIONS RELATING TO GOING CONCERN

We draw your attention to note 2.3 and the strategic report to the financial statements which explains that following a transfer of the company’s trade and assets to fellow group companies the company ceased to trade. As such the directors consider it appropriate to prepare the financial statements on a basis other than a going concern basis. All assets have been adjusted to reflect their expected net realisable value and provisions have been made for all known current and future liabilities.

It should be noted that the historic classification of assets and liabilities have been retained, reflecting the future use of the assets by the wider group. For example, the fixed assets have not been reclassified as current assets. Our opinion is not modified in respect of this matter.

OTHER INFORMATION

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Page 5

OHI CHECK HOUSE LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OHI CHECK HOUSE LTD (CONTINUED)

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

∙the information given in the Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

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

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

∙certain disclosures of directors' remuneration specified by law are not made; or

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

RESPONSIBILITIES OF THE DIRECTOR

As explained more fully in the set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 6

OHI CHECK HOUSE LTD

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

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

∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the care home sector;

∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, environmental, health and safety legislation and the CQC requirements;

∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

∙performed analytical procedures to identify any unusual or unexpected relationships;

∙tested journal entries to identify unusual transactions;

∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

∙investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

∙agreeing financial statement disclosures to underlying supporting documentation;

∙reading the minutes of meetings;

∙enquiring of management as to actual and potential litigation and claims; and

∙reviewing relevant correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Page 7

OHI CHECK HOUSE LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OHI CHECK HOUSE LTD (CONTINUED)

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.

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 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.

Christopher Walford BSc FCA (Senior statutory auditor)

for and on behalf of

Albert Goodman LLP

Statutory Auditors

Goodman House

Blackbrook Park Avenue

Taunton

United Kingdom

TA1 2PX

Date: 10 October 2025

Page 8

OHI CHECK HOUSE LTD

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 18 OCTOBER 2024

	2024	2024
Note	£	£


Turnover	4	195,898	4,475,051
Cost of sales		(200,721)	(2,824,259)
GROSS (LOSS)/PROFIT		(4,823)	1,650,792
Administrative expenses		(58,303)	(927,672)
OPERATING (LOSS)/PROFIT	5	(63,126)	723,120
Interest receivable and similar income	8	-	2
Interest payable and similar expenses	9	(3,380)	(107,764)
(LOSS)/PROFIT BEFORE TAX		(66,506)	615,358
Tax on (loss)/profit	10	11,313	(153,764)
(LOSS)/PROFIT FOR THE FINANCIAL PERIOD		(55,193)	461,594

OTHER COMPREHENSIVE INCOME FOR THE PERIOD
Unrealised loss on revaluation of tangible fixed assets	-	(652,967)
Deferred tax on revaluation loss	-	163,242
OTHER COMPREHENSIVE INCOME FOR THE PERIOD	-	(489,725)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	(55,193)	(28,131)

The notes on pages 12 to 26 form part of these financial statements.

Page 9

OHI CHECK HOUSE LTD

REGISTERED NUMBER:04655190

STATEMENT OF FINANCIAL POSITION

AS AT 18 OCTOBER 2024

	18 October	30 September
	2024	2024
Note	£	£

FIXED ASSETS
Tangible assets	12		9,607,906		9,766,000
			9,607,906		9,766,000
CURRENT ASSETS
Stocks		-		2,625
Debtors: amounts falling due within one year	13	319,308		510,074
Cash at bank and in hand	14	-		8,773
		319,308		521,472
Creditors: amounts falling due within one year	15	(2,030,752)		(2,335,212)
NET CURRENT LIABILITIES			(1,711,444)		(1,813,740)
TOTAL ASSETS LESS CURRENT LIABILITIES			7,896,462		7,952,260
PROVISIONS FOR LIABILITIES
Deferred tax			(1,584,560)		(1,585,165)
			(1,584,560)		(1,585,165)
NET ASSETS			6,311,902		6,367,095

CAPITAL AND RESERVES
Called up share capital	18	100	100
Profit and loss account	19	6,311,802	6,366,995
		6,311,902	6,367,095

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr V Gupta

Director

Date: 9 October 2025

The notes on pages 12 to 26 form part of these financial statements.

Page 10

OHI CHECK HOUSE LTD

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 18 OCTOBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 October 2023	100	6,695,126	6,695,226
COMPREHENSIVE INCOME FOR THE YEAR
Profit for the year	-	461,594	461,594
Movements relation to revaluation of property and associated deferred tax	-	(489,725)	(489,725)
OTHER COMPREHENSIVE INCOME FOR THE YEAR	-	(489,725)	(489,725)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	-	(28,131)	(28,131)
CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS
Dividends: Equity capital	-	(300,000)	(300,000)
TOTAL TRANSACTIONS WITH OWNERS	-	(300,000)	(300,000)

At 1 October 2024	100	6,366,995	6,367,095
COMPREHENSIVE INCOME FOR THE PERIOD
Loss for the period	-	(55,193)	(55,193)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-	(55,193)	(55,193)
AT 18 OCTOBER 2024	100	6,311,802	6,311,902

The notes on pages 12 to 26 form part of these financial statements.

Page 11

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

1.	GENERAL INFORMATION

OHI Check House Ltd (formerly known as The Check House Ltd) is a private company, limited by shares and registered in the UK. The registered number is 04655190, the address of the registered office is C/O Arnold & Porter Kaye Scholer (UK) LLP Tower 42, 25 Old Broad Street, London, EC2N 1HQ. Its principal place of business is The Check House Nursing Home, 61 Beer Road, Seaton, Devon. The company operates a residential care home.
However, as noted in the strategic report, following the transfer of the company's trade and assets to another group company the company ceased to trade.

2.ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

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

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

The following principal accounting policies have been applied:

2.2

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 the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23.

This information is included in the consolidated financial statements of OHI Cannon Care Homes Ltd (formerly known as Cannon Care Homes Ltd) as at 18 October 2024 and these financial statements may be obtained from Companies House.

2.3

GOING CONCERN

As explained in the strategic report, following the transfer of the trade and property the company ceased to trade, and as such the directors consider it appropriate to prepare the financial statements on a basis other than a going concern basis. All assets have been adjusted to reflect their expected net realisable value and provisions have been made for all known current and future liabilities. It should be noted that the historic classification of assets and liabilities have been retained, reflecting the future use of the assets by the wider group. For example the fixed assets have not been reclassified as current assets.

Page 12

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

2.ACCOUNTING POLICIES (continued)

2.4

REVENUE

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

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 not provided on freehold buildings as the director is of the opinion that the residual values of such properties are not less than cost or valuation, and therefore any depreciation would be immaterial.

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

Depreciation is provided on the following basis:

Freehold property	-		Not depreciated
Plant and machinery	-	15%	reducing balance and straight line
Motor vehicles	-	25%	reducing balance
Fixtures and fittings	-	25%	reducing balance

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 13

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

2.ACCOUNTING POLICIES (continued)

2.6

REVALUATION OF TANGIBLE FIXED ASSETS

Individual freehold and leasehold properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
As noted, the company has transferred its trade and assets to another group company. The tangible fixed assets are recognised at the anticipated realisable value. As these assets will be retained as fixed in the group the directors have retained them as fixed in the current year accounts.
The property was transferred on 31 December 2024.

2.7

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.

2.8

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.

Page 14

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

2.ACCOUNTING POLICIES (continued)

2.9

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

2.10

CREDITORS

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

2.11

GOVERNMENT GRANTS

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

2.12

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.

2.13

DIVIDENDS

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

2.14

OPERATING LEASES: THE COMPANY AS LESSEE

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

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

2.15

LEASED ASSETS: THE COMPANY AS LESSEE

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

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OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

2.ACCOUNTING POLICIES (continued)

2.16

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

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

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

2.17

INTEREST INCOME

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

2.18

BORROWING COSTS

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

2.19

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive
obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate
can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware
of the obligation, and are measured at the best estimate at the reporting date of the expenditure
required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of
financial position.

Page 16

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

2.ACCOUNTING POLICIES (continued)

2.20

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 reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 reporting date.

3.	JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the year. However the nature of estimation means that actual outcomes could differ from those estimates. The following judgments have had the most significant effect on amounts recognised in the financial statements.
Classification of leases:
The Company obtains use of fixed assets as a lessee. The classification of such leases as operating or finance lease required the Company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the Statement of Financial Position.
Valuation of properties:
The Company carries its freehold property at fair value, with changes in fair value being recognised in other comprehensive income. The Company engaged independent valuation specialists, Cushman & Wakefield, to determine fair value at 12 June 2024. The valuer used the profits method of valuation as they consider the market norm is to assess this type of asset for sale purposes by reference to its trading characteristics and profitability. The directors have then assessed their understanding of the market and adjusted the value recognised as materially required.

Page 17

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

	Residents fees	195,898	4,475,051

All turnover arose within the United Kingdom.

	Depreciation of tangible fixed assets	1,940	41,175
	Other operating lease rentals	641	9,132

6.	AUDITORS' REMUNERATION
	The disclosure for the Group is £7,500. It is estimated that the portion of this for OHI Check House Limited is £1,735.

Page 18

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

Wages and salaries	178,475	2,349,136
Social security costs	10,964	231,588
Cost of defined contribution scheme	2,341	48,605
	191,780	2,629,329

Key management personnel are employed by the ultimate parent Company. It is not practical to split the costs between individual Group companies. Total compensation of key management personnel for the period across the Group is disclosed in the accounts for the period ended 18 October 2024.

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

	18 October 2024	30 September 2024
	No.	No.

Employees	76	76

8.	INTEREST RECEIVABLE
		18 October 2024	30 September 2024
		£	£

	Other interest receivable	-	2
		-	2

9.	INTEREST PAYABLE AND SIMILAR EXPENSES
		18 October 2024	30 September 2024
		£	£

Bank interest payable	3,371	104,236
Finance leases and hire purchase contracts	9	3,528
	3,380	107,764

Page 19

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

CORPORATION TAX
Current tax on profits for the year	(10,708)	148,682
	(10,708)	148,682

TOTAL CURRENT TAX	(10,708)	148,682

DEFERRED TAX
Origination and reversal of timing differences	(605)	16,841
Adjustments in respect of prior periods	-	(11,759)
TOTAL DEFERRED TAX	(605)	5,082


	TAXATION ON (LOSS)/PROFIT ON ORDINARY ACTIVITIES	(11,313)	153,764

Page 20

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

10.TAXATION (CONTINUED)

(Loss)/profit on ordinary activities before tax

(66,506)

615,358

(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024: 25%)	(16,626)	153,840
EFFECTS OF:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	9	26
Utilisation of tax losses	5,304	-
Adjustments to tax charge in respect of prior periods	-	(102)
TOTAL TAX CHARGE FOR THE PERIOD/YEAR	(11,313)	153,764

Dividends paid

300,000

Page 21

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 18 OCTOBER 2024

	12.	TANGIBLE FIXED ASSETS

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Office equipment	Total
	£	£	£	£	£	£
COST OR VALUATION
At 1 October 2024	9,607,906	126,914	48,605	740,487	1,629	10,525,541
Additions	-	-	-	156	-	156
Disposals	-	(126,914)	(48,605)	(740,643)	(1,629)	(917,791)
At 18 October 2024	9,607,906	-	-	-	-	9,607,906

At 1 October 2024	-	103,804	43,740	611,997	-	759,541
Charge for the period on owned assets	-	366	-	1,518	-	1,884
Charge for the period on financed assets	-	-	56	-	-	56
Disposals	-	(104,170)	(43,796)	(613,515)	-	(761,481)
At 18 October 2024	-	-	-	-	-	-
NET BOOK VALUE
At 18 October 2024	9,607,906	-	-	-	-	9,607,906
At 30 September 2024	9,607,906	23,110	4,865	128,490	1,629	9,766,000

Page 22

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

12.TANGIBLE FIXED ASSETS (CONTINUED)


Plant and machinery	-	2,376
	-	2,376

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
	18 October	30 September
	2024	2024
	£	£

Cost	3,150,863	3,150,863
Valuation	6,457,043	6,457,043
	9,607,906	9,607,906

As noted within the strategic report the company has transferred its trade and assets to another group company following which it will cease to trade. The directors have assessed the recognised net value of the tangible assets and are confident that the value is at the lower of cost and net realisable value.
The property was transferred on 31 December 2024.

13.

DEBTORS

					18 October	30 September
					2024	2024
					£	£


Trade debtors	-	153,521
Amounts owed by group undertakings	319,308	318,168
Other debtors	-	23,728
Prepayments and accrued income	-	14,657
	319,308	510,074

Page 23

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

	Cash at bank and in hand	-	8,773

Bank loans	-	225,355
Trade creditors	-	38,262
Amounts owed to group undertakings	1,826,032	1,600,735
Corporation tax	197,601	208,309
Other taxation and social security	-	61,884
Obligations under finance lease and hire purchase contracts	-	3,511
Other creditors	-	11,899
Accruals and deferred income	7,119	185,257
	2,030,752	2,335,212

AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans	-	225,355
	-	225,355



	-	225,355

Included in creditors is an unsecured loan totalling £225,355 at the prior year balance sheet date. Interest accrues at a rate of 2.75% per month and the loan is guaranteed by the Director. The loan was repaid in full during the current period.

Page 24

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

17.	DEFERRED TAXATION

	18 October 2024	30 September 2024
	£	£

At beginning of year	(1,585,165)	(1,743,325)
Charged to profit or loss	605	(5,082)
Charged to other comprehensive income	-	163,242
AT END OF YEAR	(1,584,560)	(1,585,165)

Accelerated capital allowances	(197,258)	(200,551)
Short term timing differences	-	1,089
Capital gains	(1,387,302)	(1,385,703)
	(1,584,560)	(1,585,165)

ALLOTTED, CALLED UP AND FULLY PAID

100 (2024: 100) Ordinary shares of £1.00 each	100	100

19.

RESERVES

Profit and loss account

The profit and loss reserve is represented by £854,688 relating to distributable profits and £5,457,114 relating to previous revaluations of the property.

Page 25

OHI CHECK HOUSE LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 18 OCTOBER 2024

20.	PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £2,341 (2024: £48,605). Contributions totalling £Nil (2024: £10,156) were payable to the fund at the statement of financial position date and are included in creditors.

21.	RELATED PARTY TRANSACTIONS
	As a wholly owned subsidiary of OHI Cannon Care Homes Ltd (formerly known as Cannon Care Homes Ltd) the Company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33 "Related party disclosures" in not disclosing intra Group transactions where 100% of the voting rights are controlled within the Group.

22.	CONTROLLING PARTY

The parent Company is OHI Cannon Care Homes Ltd, (formerly known as Cannon Care Homes Ltd), Company number 05317825, registered in England and Wales. Copies of the financial statements can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
The controlling party is now OHI UK Healthcare Properties Limited. Company number 09532166, registered in England and Wales. Copies of the financial statements can be obtained from Companies House.

23.	CHARGES AND GUARANTEES

On the 12 January 2018 charges were registered in line with Chapter A1 Part 25 of the Companies Act 2006 with Companies House. Pursuant to the charge, Triodos Bank NV, acting through its registered office at Deanery Road, Bristol, BS1 5AS, placed a fixed and floating charge on all property of The Check House Limited. Charges were satisfied on 23 October 2024.

Page 26