The directors present the Annual Report for the year ended 30 April 2025.
The principal activities of the group continue to be that of ownership and the operation of nursing homes primarily for the elderly. Following the acquisition of Onetree Estates Limited on 30 April 2025, the group owns and operates 11 care homes providing nursing and residential care to 645 registered beds within the Greater London area.
The group has achieved another excellent year, building upon the acquisition of the 65-bed Uplands Care Home in January 2024 with the acquisition in April 2025 of the 70-bed Ashbrook Nursing Home.
At the reporting date, the group’s turnover has risen by 25% to £42.4m (2024 - £33.9m) which in part was as a result of a full year contribution from Uplands Care Home. Profit before tax and fair value loss of £0.7m on derivative financial instruments for the year ended 30 April 2025 amounted to £9.2m, up from £5.5m in 2024 (before £0.4m fair value loss on derivative financial instruments.
Strict cost control and operational discipline have allowed the group to maintain strong margins and cash generation despite a challenging market, where Local Authorities have continued to maintain tight budget constraints, with limited or no fee uplifts.
While occupancy rates were under pressure during the year, there has been a strong recovery post year-end leading to great optimism about group’s continued performance. The group is well placed to continue to perform strongly in the foreseeable future and to take advantage of future business opportunities. With the addition of highly skilled experts to our existing team, we are making significant strides in refreshing our strategic foundations. This continued evolution ensures that we are well-prepared for future success.
The management team remains deeply committed to its responsibilities in Sustainability, Environmental, and Social Governance (ESG) and works diligently to uphold these principles across all areas of the business.
Careful financial management has enabled the group to make substantial reinvestments in modernising care home facilities and upgrading infrastructure, ensuring we maintain our position as a high-quality, preferred care provider within our local communities. There is an ongoing focus on developing and improving our portfolio, with continuous enhancements to our care homes. As in previous years, the steady increase in the group's portfolio valuation reflects the quality of the assets from which the income is derived.
Strong governance, corporate responsibility, and sustainability are central to the success of the Abbey brand. The group is dedicated to addressing the challenging healthcare needs of its residents and the wider community. At the heart of our service delivery are our people, who ensure the highest standards of care for our residents. Abbey is well-positioned to remain a sector leader in employee engagement, career development, and training by continually investing in both our people and services. Our team is supported by an innovative learning and development programme that fosters growth and excellence.
The second phase of the group's flagship "Total Care" project at Forest Place is approaching completion. Once complete, the redevelopment will feature 165 high-quality care units, including 45 extra care assisted living units, as well as a range of recreational facilities. A key part of the development will be a hydrotherapy centre, alongside ancillary medical facilities, such as consulting rooms, opticians, dentistry, physiotherapy services, and a pharmacy. The centre will also include wellness facilities, further enhancing the care and services we offer.
As with previous phases, the ongoing development had temporarily reduced the number of available beds and impacted on occupancy rates. However, once the Forest Place, Balham and Ravenscroft projects are completed and fully operational, the value of the group's portfolio is expected to significantly increase. A valuation carried out in May 2023 estimated the portfolio’s worth, based on special assumptions with proposed extension and development plans at £156m. The directors are confident that this has increased subsequently.
As construction at Forest Place moves towards completion, planning permission has already been obtained for expansion at Ravenscroft-Barnet, and we are in the process of seeking approval for further developments in Balham, where additional premises were acquired. There is substantial development potential within the Group's existing property portfolio, particularly with the acquisition of residential properties adjacent to some of our care homes. These opportunities will be explored to maximise value and improve the facilities available to our residents.
The future of Abbey Total Care Group looks very promising, underpinned by strong foundations, a solid financial Balance Sheet, and a continued focus on meeting the evolving needs of our residents. Our commitment to high-quality care remains unwavering, with constant monitoring and assessment by the group’s Executive Board, Governance Teams, Operational and Area Managers and Home Managers. The group’s key focus remains over and above regulatory, the local authority and NHS requirements.
The Group plans to diversify, building on its expertise, into areas associated with its core operations including employee recruitment and training services, community based home care and pharmacy services integrated within existing care settings.
We continue to invest in strengthening our management team, bringing in specialists such as in-house trainers, Care Quality Commission (CQC) experts, Local Authority Contracts Advisors and Environmental Health professionals. Additionally, our associate Medical Consultants and GPs play a vital role in providing more specialised care to residents, working closely with Integrated Commissioning Boards and local hospitals to ensure the best possible outcomes.
Abbey Total Care Group's homes are regulated by the Care Quality Commission (CQC), which ensures that care homes and services in England deliver safe, effective, compassionate, and high-quality care. The group remains fully committed to compliance with all health and safety regulations, as well as labour and employment laws, to provide the highest standards of care to our residents.
In addition to the commercial and regulatory challenges, the impact of rising living costs and inflation continues to challenge the group’s operations. However, the group consistently monitors and assesses the risks facing its business and Balance Sheet, evaluating how these factors interact. By understanding these risks, the group identifies appropriate opportunities for risk diversification and management, enabling it to confidently respond to emerging challenges.
With local authorities and the NHS continuing to restrict annual fee increases and extend payment periods, the group ensures its cash flow remains adequately provisioned to address these financial pressures.
The care sector remains challenging, with recruitment of healthcare workers continuing to be a sector-wide issue. Rising inflation further increases costs across the business. Despite these pressures, the Group is well-positioned to adapt to changing circumstances, balancing the needs of its residents with a focus on growth and long-term sustainability.
While the wider economic environment remains uncertain, the group’s solid foundations, diversified portfolio, and proven operational model position it for sustainable growth. The group continues to actively evaluate strategic opportunities for acquisition and diversification, with a particular emphasis on expansion into healthcare-related sectors. Supported by strong cash reserves and financial position, the group is well position to capitalise on emerging opportunities that align with its long-term growth objectives, ensuring that expansion is achieved without compromising financial stability or the quality of existing operations. With ongoing development projects nearing completion and occupancy rates strengthening, the directors are confident that the group is well prepared in maintaining its growth momentum well into the foreseeable future.
The group’s Key Performance Indicators (KPIs) are regularly reviewed to ensure they align with our strategic objectives. Detailed monthly management reports and accounts are produced, with several KPIs—such as turnover, payroll costs, operating costs, and cash generation from operations—forming an integral part of the review process and are detailed in the financial statements. Over the course of the year, the movement in occupancy was as follows:
| 2024/25 | 2023/24 |
|
Occupancy Rate % | 91% | 93% | Occupancy levels declined during the year due to a combination of factors, including temporary capacity constraints from regulatory and operational requirements, fluctuations in demand and planned refurbishment works to enhance care environments. While these factors affected occupancy levels in short-term, occupancy has now fully recovered. |
Registered Beds
| 645
| 575
| Addition of 70 beds from the acquired Ashbrook Care Home. Registered beds will increase to 690 upon registration of 45 additional beds from Forest Place Phase 2 development. |
The directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
‘A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:
• the likely consequences of any decisions in the long term;
• the interests of the company’s employees;
• the need to foster the company’s business relationships with suppliers, customers and others;
• the impact of the company’s operations on the community and environment;
• the desirability of the company maintaining a reputation for high standards of business conduct; and
• the need to act fairly as between members of the Company.
Risk Management
As we grow, our business and our risk environment also become more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate the risks we face, and that we continue to evolve our approach. We have set out earlier in this report our principle risks and how we manage our risk environment.
Our people
The group remains firmly committed to conducting its business responsibly and sustainably. Our actions and decisions are guided by the expectations of our people, service users, investors, communities, and wider society. Continued success depends on effectively managing performance, developing and retaining talent, and maintaining operational efficiency. We also place strong emphasis on shared values that underpin our culture and guide our conduct, ensuring that our objectives are achieved in a responsible and ethical manner.
Business Relationships
Our strategy priorities organic growth. To do this, we need to develop and maintain strong customer relationships. We value all of our suppliers.
Community and Environment
The Group’s approach is to use our position of strength to create positive change for the people and communities with which we interact.
Reputation maintenance
The board expects the highest standards of business conduct. The directors receive updates in respect of matters of regulatory compliance and further escalated issues.
Shareholders
The board contains all the company’s shareholders so there is never a conflict between the two parties.
The directors take this opportunity to thank all the stakeholders, frontline staff and management, the suppliers, the commissioning and contracting authorities, the social and healthcare workers for their continued invaluable support in the operation of the business. The directors extend our thanks to all the families and relatives for their understanding and working in partnership with the group.
On behalf of the board
The directors present their financial statements for the year ended 30 April 2025.
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's principal financial instruments are credit facilities and loans, the main purpose of which is to finance the group's operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
Liquidity risk is addressed by holding adequate liquid assets and through appropriate controls. The group continually reviews the residual risks arising and has mitigating actions in place to reduce the levels of these risks. Added to the liquid assets, a portion of the bank facility always remains undrawn to overcome unforeseen eventualities.
During May 2022 an interest rate cap was put in place over £20m of debt which capped the interest rate before margin at 1.5% per annum. The group is exposed to fair value interest rate risk on its borrowings over £20m and cashflow interest rate risk on bank overdrafts and loans. The group has agreed substantial interest rates on group cash credit balances which will help to manage interest cost on borrowing.
Investments of cash surpluses and borrowings are made through banks which must fulfil credit rating criteria approved by the Board. All service users enter into formal agreements with the group which stipulate payment terms. The directors regularly review trade debtors and pursue any outstanding debts on a timely basis. Where necessary, provisions are made for doubtful debts.
Abbey Total Care Group Limited has continued its development of an in-house learning facility. The group ensures that all care employees are trained up to the industry standard (appropriate QCF levels). This learning facility provides in-house trainers and assessors to deliver appropriate instructions and evaluation. Our trainers are experts familiar with the company’s values, policies and procedures. These training sessions have been welcomed by employees for their the more interactive style and content.
The group's policy remains that of a positive approach to problem solving and improving efficiency through consultations and discussions with employees at staff councils and meetings, for matters likely to affect employees' interests. All matters of concern by individuals are resolved as they arise by the manager.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
The Group is very pleased with the improving performance in health provision and aged care. We are doing everything we can to offer support to people in need. Our teams continue enthusiastically to deliver high standards of service for our customers at the same time as we transform the business.
The group continues to go from strength to strength, building on its solid foundation and years of expertise in the business. It has grown over the years by making progressive changes to existing buildings, conversions and new-builds. Importance is always given to developments that are superior and can provide a level of customer satisfaction which is exceptional. ‘Value for money and helping people live longer, healthier, happier lives’ are the key principles on which the Group’s foundations lie. We believe Abbey Total Care Group has an increasing part to play in the health of its customers.
Our ‘Care First’ approach will always be at the forefront all our activities. This approach has resulted in continuous training and development initiatives for all employees.
Forest Place, the group’s flagship home in Buckhurst Hill, located within the prestigious Epping Forest District of Essex, continues its Phase two development to supply additional beds, assisted living units for customers, restaurant facilities and an extensive medical centre.
Future planning includes new smaller developments at many of the group's other homes, to be rolled out soon after execution of the above project.
The auditor, Alwyns LLP is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Whilst the overall group has consumed more than 40,000 kWh of energy in this reporting period, none of the individual subsidiaries are large as defined by the Companies Act. In preparing this group Director’s Report, we have taken advantage of the option to exclude any energy and carbon information relating to those subsidiaries.
As the parent entity has very limited energy consumption, there is no energy and carbon information to be reported in respect of the parent entity.
We have audited the financial statements of Abbey Total Care Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Audit procedures undertaken in responses to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claim; inspection of relevant legal correspondence; review of published Care Quality Commission (CQC) inspection reports, inspection of health and safety reports, inspection of Food Standards Agency certificates, testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As stated above, there is an unavoidable risk that material misstatements my not be detected, even though the audit have been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £12,022,960 (2024 - £123,462 profit).
Abbey Total Care Group Limited ("the company") is a private company limited by shares incorporated in England and Wales. The registered office is 9 Spareleaze Hill, Loughton, Essex, IG10 1BS.
The group consists of Abbey Total Care Group Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest whole pound.
The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold properties and derivative financial instruments. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group that prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The consolidated financial statements incorporate those of Abbey Total Care Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 30 April 2025 and have consistent accounting policies.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the directors have a reasonable expectation that the company and its subsidiary undertakings have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately through the profit and loss account, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
The group and parent company have elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of their financial instruments.
Financial instruments are recognised in the balance sheet when the entity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including interest rate caps, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loan stock and loans from fellow group and related companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The group operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period to which they relate.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Liquid resources
Liquid resources for the purpose of preparing the cashflow statement includes cash at bank and in hand.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.
Freehold land and buildings are reflected at fair value based upon a valuation from qualified surveyors. Calculation of the valuation requires judgements to be made and estimates based on information at the time of the valuation including the competitive and economic environment.
At each reporting date the company assesses whether there is any indication of the non recovery of trade debts. If any such indication exists a provision is recognised based on the director's estimate of amounts recoverable.
The group's turnover is generated from its principal activity of the operation of care homes which is wholly undertaken in the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits accrued during the year under defined contribution schemes amounted to 0 (2024 - 2).
Only the directors are considered to be the key management.
The charge for the year can be reconciled to the profit per the profit and loss account as follows:
Land and buildings held at 30 April 2023 were revalued during the year to 30 April 2023 based on a valuation concluded on 24 May 2023 by Knight Frank LLP, independent valuers not connected with the company, on the basis of market value as defined in the publication RICS Valuation - Global Standards, which incorporate the International Valuation Standards and the RICS UK National Supplement.
The directors do not believe there has been any significant change to the values as at 30 April 2025.
There has been no depreciation applied on revalued buildings as the residual value is materially the same as the net book value.
If freehold land and buildings were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
Details of the company's subsidiaries at 30 April 2025 are as follows:
The principal activity of the above undertakings, apart from those identified as dormant, was the operation of care homes and ancillary services. All the above companies are registered in the United Kingdom with the same registered office as the parent undertaking.
The loan notes were issued on 30 April 2025 as part of the consideration for the acquisition of Onetree Estates Limited. The loan notes are unsecured with interest payable at Bank of England base rate. The loan notes are payable by five equal annual instalments of £1,200,000 but can be redeemed earlier on the agreement of the group.
The bank debt is secured by a debenture and unlimited intercompany composite guarantee between the group companies, supported by first legal charges over the assets of those companies.
The bank facilities, comprise term loans and a revolving credit facility, repayable in instalments with bullet repayments at the end of the term on 6 September 2028. Interest is charged on the term loans at between 2.25% and 2.45% above SONIA and on the revolving credit facility at 3.35% above SONIA.
During May 2022 an interest rate cap maturing on 2 October 2025 was agreed with the group's bankers over £20,000,000 of debt which capped the interest rate before margins at 1.5% per annum.
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Defined contribution pension schemes are operated for all qualifying employees. The assets of the schemes are held separately from those of the group in an independently administered fund.
On 30 April 2025 the group acquired 100 percent of the issued capital of Onetree Estates Limited.
The goodwill arising on acquisition relates to a discount on the acquisition cost.
Onetree Estates Limited was acquired from a close family member of a director and the loan notes (company and group) were still held by the related party at 30 April 2025.
During the year the company acquired the remaining non controlled interest in Planshore Limited for £76,000 from an estate of a close family member of a director. This represented 1% of the shares in Planshore Limited and as that company was already a subsidiary undertaking the transaction was accounted for within equity in the consolidated accounts.
During the year the group entered into transactions with related parties as follows: