Avon Care Homes Limited 03757575 false 2024-04-01 2025-03-31 2025-03-31 The principal activity of the company is the operation of nursing and residential homes. Digita Accounts Production Advanced 6.30.9574.0 true true 03757575 2024-04-01 2025-03-31 03757575 2025-03-31 03757575 bus:Consolidated 2025-03-31 03757575 core:AcceleratedTaxDepreciationDeferredTax 2025-03-31 03757575 core:OtherDeferredTax 2025-03-31 03757575 core:RevaluationPlantEquipmentDeferredTax 2025-03-31 03757575 core:CurrentFinancialInstruments 2025-03-31 03757575 core:CurrentFinancialInstruments core:WithinOneYear 2025-03-31 03757575 core:Non-currentFinancialInstruments core:AfterOneYear 2025-03-31 03757575 core:Goodwill 2025-03-31 03757575 core:FurnitureFittingsToolsEquipment 2025-03-31 03757575 bus:SmallEntities 2024-04-01 2025-03-31 03757575 bus:Audited 2024-04-01 2025-03-31 03757575 bus:FilletedAccounts 2024-04-01 2025-03-31 03757575 bus:SmallCompaniesRegimeForAccounts 2024-04-01 2025-03-31 03757575 bus:RegisteredOffice 2024-04-01 2025-03-31 03757575 bus:Director1 2024-04-01 2025-03-31 03757575 bus:PrivateLimitedCompanyLtd 2024-04-01 2025-03-31 03757575 bus:Agent1 2024-04-01 2025-03-31 03757575 core:Goodwill 2024-04-01 2025-03-31 03757575 core:FurnitureFittingsToolsEquipment 2024-04-01 2025-03-31 03757575 core:UKTax 2024-04-01 2025-03-31 03757575 countries:EnglandWales 2024-04-01 2025-03-31 03757575 2024-03-31 03757575 core:Goodwill 2024-03-31 03757575 core:FurnitureFittingsToolsEquipment 2024-03-31 03757575 2023-04-01 2024-03-31 03757575 2024-03-31 03757575 core:AcceleratedTaxDepreciationDeferredTax 2024-03-31 03757575 core:OtherDeferredTax 2024-03-31 03757575 core:RevaluationPlantEquipmentDeferredTax 2024-03-31 03757575 core:CurrentFinancialInstruments 2024-03-31 03757575 core:CurrentFinancialInstruments core:WithinOneYear 2024-03-31 03757575 core:Non-currentFinancialInstruments core:AfterOneYear 2024-03-31 03757575 core:FurnitureFittingsToolsEquipment 2024-03-31 03757575 core:UKTax 2023-04-01 2024-03-31 iso4217:GBP xbrli:pure

Registration number: 03757575

Prepared for the registrar
Avon Care Homes Limited
Annual Report and Financial Statements
for the Year Ended 31 March 2025

Avon Care Homes Limited

Contents

Company Information | 1
Balance Sheet | 2
Notes to the Financial Statements | 3 to 10

Avon Care Homes Limited

Company Information

Director | M C Bila

Registered office | Mendip Court Bath Road Wells Somerset BA5 3DG

Bankers | Barclays Bank PLC 4th Floor Bridgewater House Counterslip Finzels Reach Bristol BS1 6BX

Auditors | Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Avon Care Homes Limited

(Registration number: 03757575)
Balance Sheet as at 31 March 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Intangible assets | 6 | - | -
Tangible assets | 7 | 163,574 | 142,032
Investment property | 8 | 1,750,000 | 1,750,000
|  | 1,913,574 | 1,892,032
Current assets |  |  |
Stocks | 9 | 4,500 | 4,500
Debtors | 10 | 2,438,807 | 2,309,196
Cash at bank and in hand |  | 148,168 | 70,135
|  | 2,591,475 | 2,383,831
Creditors: Amounts falling due within one year | 11 | (1,756,179) | (1,342,199)
Net current assets |  | 835,296 | 1,041,632
Total assets less current liabilities |  | 2,748,870 | 2,933,664
Creditors: Amounts falling due after more than one year | 11 | (1,545,522) | (1,286,892)
Deferred tax liabilities | 5 | (261,044) | (254,529)
Net assets |  | 942,304 | 1,392,243
Capital and reserves |  |  |
Called up share capital |  | 500 | 500
Capital redemption reserve |  | 500 | 500
Revaluation reserve |  | 942,064 | 942,064
Retained earnings |  | (760) | 449,179
Shareholders' funds |  | 942,304 | 1,392,243

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 4 December 2025

M C Bila
Director

Avon Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

| 1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Mendip Court
Bath Road
Wells
Somerset
BA5 3DG

| 2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Name of parent of group

These financial statements are consolidated in the financial statements of MCB Investments Limited.

The financial statements of MCB Investments Limited may be obtained from Companies House.

Going concern

After reviewing the company's forecasts and projections, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover represents amounts receivable during the year for the provision of care and accommodation, where the amount received relates to a period which covers the balance sheet date, the amount is apportioned over the period to which it relates. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Avon Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Tax

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

The current 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 taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Furniture, fittings and equipment | 15% on cost

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class | Amortisation method and rate
Goodwill | Straight line over 20 years

A policy of 20 years for amortising the goodwill has been retained following the transition to FRS 102 in 2016. Whilst FRS 102 recommends a default maximum economic life for goodwill of 10 years, the directors’ consider that there was no revision required to the existing policy of 20 years and that there is an active and sustainable market for the asset that supports a longer period being used.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Avon Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All debtors are repayable within one year and are hence included at the undiscounted amount of the cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. All creditors are repayable within one year and are hence included at the undiscounted amount of the cash expected to be received. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Avon Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Financial instruments (continued)
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

| 3 | Staff numbers

The average number of persons employed by the company (including the director) during the year, was as follows:

| 2025 No. | 2024 No.
Average employee number | 69 | 71

| 4 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 7,200 | 6,630

Avon Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

| 5 | Taxation

Tax charged/(credited) in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax adjustment to prior periods | - | (9,970)
Deferred taxation |  |
Arising from origination and reversal of timing differences | - | 44,001
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods | 6,515 | -
Total deferred taxation | 6,515 | 44,001
Tax expense in the income statement | 6,515 | 34,031

|  | Deferred tax

Deferred tax assets and liabilities

2025 | Liability £
Fixed asset timing differences | 38,167
Capital gains | 223,614
Other short-term timing differences | (737)
| 261,044

2024 | Liability £
Fixed asset timing differences | 31,408
Capital gains | 223,614
Other short-term timing differences | (493)
| 254,529

| 6 | Intangible assets

| Goodwill £
Cost
At 1 April 2024 and at 31 March 2025 | 1,000
Amortisation
At 1 April 2024 and at 31 March 2025 | 1,000
Carrying amount
At 31 March 2024 and at 31 March 2025 | -

Avon Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

| 7 | Tangible assets

| Furniture, fittings and equipment £
Cost or valuation
At 1 April 2024 | 616,714
Additions | 51,579
At 31 March 2025 | 668,293
Depreciation
At 1 April 2024 | 474,682
Charge for the year | 30,037
At 31 March 2025 | 504,719
Carrying amount
At 31 March 2025 | 163,574
At 31 March 2024 | 142,032

| 8 | Investment properties

| 2025 £
At 1 April 2024 and at 31 March 2025 | 1,750,000

The director considers the value of the investment property at 31 March 2025 to be £1,750,000 (2024 - £1,750,000) on an open market basis. The historical cost of the investment property is £584,389 (2024 - £584,389).

| 9 | Stocks

| 2025 £ | 2024 £
Stocks | 4,500 | 4,500

| 10 | Debtors

| 2025 £ | 2024 £
Trade debtors | 137,900 | 169,591
Other debtors | 471,785 | 507,569
Director's current account | 1,614,598 | 1,424,879
Prepayments | 97,409 | 110,352
Amounts owed by group undertakings | 117,115 | 96,805
| 2,438,807 | 2,309,196

Avon Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

| 11 | Creditors

| 2025 £ | 2024 £
Due within one year |  |
Trade creditors | 44,393 | 33,698
Amounts due to related parties | 1,254,468 | 857,212
Social security and other taxes | 78,831 | 36,015
Other creditors | 52,920 | 36,977
Accrued expenses | 189,597 | 205,916
Corporation tax liability | (9,192) | 81,626
Deferred income | 145,162 | 90,755
| 1,756,179 | 1,342,199

| 2025 £ | 2024 £
Due after one year |  |
Amounts owed to group undertakings | 1,545,522 | 1,286,892

| 12 | Dividends

| 2025 £ | 2024 £
Dividends paid | - | 700,000

| 13 | Obligations under leases and hire purchase contracts

At 31 March 2025, the company had total commitments under non-cancellable operating leases over the remaining life of those assets of £34,514 (2024 - £89,323).

| 14 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £40,132 (2024 - £32,275).

| 15 | Contingent liabilities

The company is bound by an cross company guarantee with its parent company, MCB Investments Limited, a company controlled by M C Bila in respect of bank borrowings. The amount guaranteed is £5,021,798 (2024 - £5,237,813).

| 16 | Parent and ultimate parent undertaking

The company's ultimate and only parent company is MCB Investments Limited, incorporated in England and Wales. The most senior parent entity producing publicly available financial statements is MCB Investments Limited. These financial statements are available upon request from the registered office.

Avon Care Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

| 17 | Disclosure under Section 444(5B) CA 2006 relating to the independent auditor's report

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. Accordingly, the Independent Auditors’ Report has also been omitted.
The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 4 December 2025 was Stephanie Hayman, who signed for and on behalf of Hazlewoods LLP.