ACCOUNTS - Final Accounts

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

Registered number: 07172004

PURECARE CARE HOMES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

PURECARE CARE HOMES LIMITED

COMPANY INFORMATION

Directors	R P Herkanaidu
	R Herkanaidu


Registered number	07172004


Registered office	Rock House
	109 Rock Avenue
	Gillingham
	Kent
	ME7 5PY


Independent auditors	Barnes Roffe Audit Limited
	Chartered Accountants & Statutory Auditor
	Charles Lake House
	Claire Causeway
	Crossways Business Park
	Dartford
	Kent
	DA2 6QA

PURECARE CARE HOMES LIMITED

CONTENTS

	Page
Group strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 8
Consolidated statement of comprehensive income	9
Consolidated statement of financial position	10 - 11
Company statement of financial position	12 - 13
Consolidated statement of changes in equity	14
Company statement of changes in equity	14
Consolidated statement of cash flows	15 - 16
Notes to the financial statements	17 - 34

PURECARE CARE HOMES LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

Principal activities

The principal activity of the Group during the year was the provision of residential and supported living social care services to its clients who have mental health needs.

Business review

In the financial year ended 31st March 2025 the company generated turnover totalling £5.2m (2024: £4.3m), profit before tax of £1.7m (2024: £1.3m) and had shareholder funds of £3.6m (2024: £3.3m).

The Group continues to invest in new properties to drive growth, with Caspian House being fully operational in the year after opening in October 2024. Caspian House's sixteen rooms increased the Group's portfolio to a total of 79 rooms.

Principal risks and uncertainties

Government funding of local authorities presents the main risk to the business The primary focus on mitigating this risk is to focus on delivering expertise and homes in which our clients can feel welcomed and are the first choice when social care managers are placing clients into the community.

The Group is assessed by the Care Quality Commission on an ongoing basis and all homes, where rated, have achieved ratings of 'good', with one exception as disclosed in post balance sheet events in the directors report.

The UK economy saw inflation and interest rates rising and they remained high during the year. The Group continues to monitor the financial markets to ensure its portfolio is financed optimally.

Financial key performance indicators

The Group monitors its performance against strategic objectives by means of key performance indicators. The main KPl's used are orientated around turnover, gross margin, profit before tax and occupancy rates. These are summarised as follows:

   Mar-25 Mar-24 Mar-23 Mar-22
   £'000 £'000 £'000 £'000
Turnover 5,163 4,357 3,585 2,674
Gross margin % 58% 58% 57% 59%
Profit before Tax 1,727 1,336 1,286 1,269
Occupancy Rates 95% 97% 95% 93%

These KPl's are reviewed on a regular basis to assess whether expectations are met.

Page 1

PURECARE CARE HOMES LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Going Concern

The directors are confident that the Group has adequate resources to continue operating as it currently does as well as being able to invest in the long-term future of the business. For this reason, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

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

Rodney Herkanaidu

Director

Date: 3 December 2025

Page 2

PURECARE CARE HOMES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The directors present their report and the financial statements for the year ended 31 March 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,381,022 (2024 - £987,305).

Ordinary dividends were paid amounting to £1,110,000 (2024 – £950,000). The directors do not recommend payment of a further dividend.

Directors

The directors who served during the year were:

R P Herkanaidu

R Herkanaidu

Future developments

There are no future developments that the directors consider noteworthy.

Page 3

PURECARE CARE HOMES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

Subsequent to the year-end, in April 2025, a report was published by the Care Quality Commission (CQC) following an inspection of one of the Group’s trading care homes conducted during the financial year. The report rated the service as "Inadequate," leading to the home being placed into special measures and the imposition of an embargo by the local authority on new admissions.

Management has taken immediate steps to address the findings, including the engagement of external quality consultants and the appointment of new quality management personnel. The Group is actively working to implement a comprehensive improvement plan. At the date of approval of these financial statements, the home is awaiting reinspection and the embargo is therefore still in place. Also since the rating from CQC, the occupancy of the home has not been impacted by the embargo. This is not expected to have a significant impact on the trading position of the Group.

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

Auditors

After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006.

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

R Herkanaidu

Director

Date: 3 December 2025

Page 4

PURECARE CARE HOMES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PURECARE CARE HOMES LIMITED

Opinion

We have audited the financial statements of Purecare Care Homes Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting 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 Group's and of the parent company's affairs as at 31 March 2025 and of the Group's profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 5

PURECARE CARE HOMES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PURECARE CARE HOMES LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Page 6

PURECARE CARE HOMES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PURECARE CARE HOMES LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 Group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:

• 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 discussion with directors and other management, and from our commercial knowledge and experience of the social care sector;
• The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, are as follows;
o Companies Act 2006
o FRS102
o Health and Safety legislation
o Care Quality Commission (CQC) & asociated laws and regulations
o Employment legislation
o Tax legislation
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and CQC correspondence and inspection reports;and
• Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of non-compliance throughout the audit; and

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

• Making enquires of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
• Reviewing the financial statements and testing the disclosures against supporting documentation;

Page 7

PURECARE CARE HOMES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PURECARE CARE HOMES LIMITED (CONTINUED)

• Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
• Inspecting and testing journal entries to identify unusual or unexpected transactions;
• Assessing whether judgement and assumptions made in determining significant accounting estimates, including the useful economic life of tangible fixed assets and the valuation of freehold property,
were indicative of management bias; and
• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the group’s usual course of business.

The areas that we identified as being susceptible to misstatement through fraud were:

• Management bias in the estimates and judgements made;
• Management override of controls; and
• Posting of unusual journals or transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Ben Bradley (Senior statutory auditor)

for and on behalf of

Barnes Roffe Audit Limited

Chartered Accountants

Statutory Auditor

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA

Date: 4 December 2025

Page 8

PURECARE CARE HOMES LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

	2025	2024
Note	£	£


Turnover	4	5,163,188	4,357,545
Cost of sales		(2,172,613)	(1,838,813)
Gross profit		2,990,575	2,518,732
Administrative expenses		(816,126)	(711,522)
Other operating income	5	-	9,805
Operating profit	6	2,174,449	1,817,015
Interest receivable and similar income	10	1,432	9,196
Interest payable and similar expenses	11	(448,015)	(489,978)
Profit before tax		1,727,866	1,336,233
Tax on profit	12	(346,844)	(348,928)
Profit for the financial year		1,381,022	987,305

Profit for the year attributable to:
Owners of the parent company	(1,381,022)	(987,305)
	(1,381,022)	(987,305)

There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 17 to 34 form part of these financial statements.

Page 9

PURECARE CARE HOMES LIMITED

REGISTERED NUMBER: 07172004

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	13		9,993,536		9,547,753
			9,993,536		9,547,753
Current assets
Debtors: amounts falling due within one year	15	359,913		229,544
Cash at bank and in hand	16	532,257		684,688
		892,170		914,232
Creditors: amounts falling due within one year	17	(1,415,663)		(761,331)
Net current (liabilities)/assets			(523,493)		152,901
Total assets less current liabilities			9,470,043		9,700,654
Creditors: amounts falling due after more than one year	18		(5,690,266)		(6,190,751)
Provisions for liabilities
Deferred tax	22	(173,089)		(174,237)
			(173,089)		(174,237)
Net assets			3,606,688		3,335,666

Capital and reserves
Called up share capital	23	100	100
Revaluation reserve		582,606	582,606
Profit and loss account		3,023,982	2,752,960
		3,606,688	3,335,666

Page 10

PURECARE CARE HOMES LIMITED

REGISTERED NUMBER: 07172004

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 MARCH 2025

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

R Herkanaidu

Director

Date: 3 December 2025

The notes on pages 17 to 34 form part of these financial statements.

Page 11

PURECARE CARE HOMES LIMITED

REGISTERED NUMBER: 07172004

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	13		9,874,772		9,434,673
Investments	14		2		2
			9,874,774		9,434,675
Current assets
Debtors: amounts falling due within one year	15	3,791,110		4,953,240
Cash at bank and in hand	16	113,305		370,109
		3,904,415		5,323,349
Creditors: amounts falling due within one year	17	(489,647)		(214,548)
Net current assets			3,414,768		5,108,801
Total assets less current liabilities			13,289,542		14,543,476

Creditors: amounts falling due after more than one year	18		(5,690,266)		(6,190,751)
Provisions for liabilities
Deferred taxation	22	(144,040)		(146,756)
			(144,040)		(146,756)
Net assets			7,455,236		8,205,969

Capital and reserves
Called up share capital	23	100	100
Revaluation reserve		582,606	582,606
Profit and loss account		6,872,530	7,623,263
		7,455,236	8,205,969

Page 12

PURECARE CARE HOMES LIMITED

REGISTERED NUMBER: 07172004

COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 MARCH 2025

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

R Herkanaidu

Director

Date: 3 December 2025

The notes on pages 17 to 34 form part of these financial statements.

Page 13

PURECARE CARE HOMES LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Revaluation reserve	Profit and loss account	Equity attributable to owners of parent company	Total equity
	£	£	£	£	£
At 1 April 2023	100	582,606	2,715,655	3,298,361	3,298,361

Profit for the year	-	-	987,305	987,305	987,305
Dividends: Equity capital	-	-	(950,000)	(950,000)	(950,000)

At 1 April 2024	100	582,606	2,752,960	3,335,666	3,335,666

Profit for the year	-	-	1,381,022	1,381,022	1,381,022
Dividends: Equity capital	-	-	(1,110,000)	(1,110,000)	(1,110,000)
At 31 March 2025	100	582,606	3,023,982	3,606,688	3,606,688

The notes on pages 17 to 34 form part of these financial statements.

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 April 2023	100	582,606	8,487,501	9,070,207

Profit for the year	-	-	85,762	85,762
Dividends: Equity capital	-	-	(950,000)	(950,000)

At 1 April 2024	100	582,606	7,623,263	8,205,969

Profit for the year	-	-	359,267	359,267
Dividends: Equity capital	-	-	(1,110,000)	(1,110,000)
At 31 March 2025	100	582,606	6,872,530	7,455,236

The notes on pages 17 to 34 form part of these financial statements.

Page 14

PURECARE CARE HOMES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	1,381,022	987,305
Adjustments for:
Depreciation of tangible assets	51,518	52,177
Loss on disposal of tangible assets	-	10,849
Interest paid	448,015	489,978
Interest received	(1,432)	(9,196)
Taxation charge	346,844	348,928
(Increase) in debtors	(130,369)	(147,854)
Increase in creditors	297,411	279,139
Taxation charged	(176,860)	(247,660)
Net cash generated from operating activities	2,216,149	1,763,666

Cash flows from investing activities
Purchase of tangible fixed assets	(497,301)	(2,590,778)
Interest received	1,432	9,196
HP interest paid	(3,100)	(3,100)
Net cash from investing activities	(498,969)	(2,584,682)

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PURECARE CARE HOMES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

		2025	2024
		£	£


Cash flows from financing activities
New secured loans	-	2,178,000
Repayment of loans	(297,883)	(125,129)
Repayment of/new finance leases	(16,813)	(27,504)
Dividends paid	(1,110,000)	(950,000)
Interest paid	(444,915)	(486,878)
Net cash used in financing activities	(1,869,611)	588,489
Net (decrease) in cash and cash equivalents	(152,431)	(232,527)
Cash and cash equivalents at beginning of year	684,688	917,215
Cash and cash equivalents at the end of year	532,257	684,688

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	532,257	684,688
	532,257	684,688

The notes on pages 17 to 34 form part of these financial statements.

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PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Purecare Care Homes Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is, Rock House, 109 Rock Avenue, Gillingham, Kent, ME7 5PY.

The group consists of Purecare Care Homes Limited and Purecare Care Services Limited. The principle addess of the group is Rock House, 109 Rock Avenue, Gillingham, Kent, ME7 5PY.

The principal activity of the Group during the year was the provision of residential and supported living social care services to its clients who have mental health needs.

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

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

The 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 £.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has 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.

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PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.4

Business combinations

In the parent company financial statements, the cost of a business combination is the fair value of the acquisition date of the assets given, equity instrument issued and liabilities incurred or assumed, plus cost directly attributable to be business combination. The excess of the cost of business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of combination includes the estimated amount of contingent consideration that is probable and can be measured reliably and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combination in previous periods are adjusted retrospectively for final fair value determined in the 12 months following the acquisition date. Investment in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognises on differences between the value of assets (other then goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill and negative goodwill.

2.5

Revenue

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

Rendering of services

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

∙the amount of revenue can be measured reliably;

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

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

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

2.6

Operating leases: the Group 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.

2.7

Interest income

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

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PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.8

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.

2.9

Borrowing costs

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

2.10

Pensions

Defined contribution pension plan

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

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

2.11

Current and deferred taxation

The tax expense for the year 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 and the Group operate and generate income.

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

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

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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

Page 19

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.12

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases.

Freehold land and buildings	-		Not depreciated
Motor vehicles	-	25%	Straight line
Fixtures and fittings	-	25%	Reducing balance/Straight line
Office equipment	-	25%	Straight line

The company has not provided for depreciation on land and buildings and has therefore not complied with Companies Act 2006 requirements. It is the company's policy to maintain its properties in a sound state of repair and, accordingly, the directors consider that the economic lives of the properties are so long and the residual value at such a level that depreciation would be inappropriate.

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.

2.13

Revaluation of tangible fixed assets

Individual freehold properties are carried at current year value 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.

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.15

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.

Page 20

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.16

Cash and cash equivalents

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

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

2.17

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.

2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.19

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.

2.20

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.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

a)Critical judgements in applying the company’s accounting policies

No significant judgements have had to be made by the company in preparing these financial statements.

b) Key accounting estimates and assumptions

The useful economic life of tangible fixed assets which is further described in note 2.12 of accounting policies, and the valuation of freehold properties which is further described in note 2.13 of accounting policies.

Page 21

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Principal Activity (See note 1)	5,163,188	4,357,545
	5,163,188	4,357,545

					2025	2024
					£	£

United Kingdom	5,163,188	4,357,545
	5,163,188	4,357,545

5.	Other operating income
		2025	2024
		£	£

Sundry income	-	9,805
	-	9,805

	Depreciation and amortisation	51,518	52,177
	Other operating lease rentals	16,001	13,240

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

15,480

14,450

Page 22

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

8.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Wages and salaries	2,075,582	1,792,152	18,000	18,000
Social security costs	188,877	138,069	-	-
Cost of defined contribution scheme	38,361	29,960	-	-
	2,302,820	1,960,181	18,000	18,000

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

Group	Group	Company	Company
2025	2024	2025	2024
No.	No.	No.	No.

89	74	2	2

9.	Directors' remuneration
		2025	2024
		£	£


Directors' emoluments	18,000	18,000
Benefits in kind	4,457	4,847
	22,457	22,847

10.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	1,432	9,196
		1,432	9,196

Page 23

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

11.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	444,915	486,610
Finance leases and hire purchase contracts	3,100	3,100
Other interest payable	-	268
	448,015	489,978

Corporation tax
Current tax on profits for the year	385,411	191,888
Adjustments in respect of previous periods	(37,419)	-

Total current tax	347,992	191,888

Deferred tax
Origination and reversal of timing differences	(1,148)	157,040
Total deferred tax	(1,148)	157,040


		346,844	348,928

	Factors affecting tax charge for the year
	There were no significant factors that affected the tax charge for the year which has been calculated on the profits on ordinary activities before tax at the standard rate of corporation tax in the UK of 25% (2024 - 25%).

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 24

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.	Tangible fixed assets
	Group

	Freehold property	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 April 2024	9,391,220	102,177	140,399	9,633,796
Additions	450,962	-	46,339	497,301
At 31 March 2025	9,842,182	102,177	186,738	10,131,097
Depreciation
At 1 April 2024	-	40,125	45,918	86,043
Charge for the year on owned assets	-	15,513	36,005	51,518
At 31 March 2025	-	55,638	81,923	137,561
Net book value
At 31 March 2025	9,842,182	46,539	104,815	9,993,536
At 31 March 2024	9,391,220	62,052	94,481	9,547,753

Page 25

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2025	2024
	£	£


Motor vehicles	32,590	43,453
	32,590	43,453

Cost or valuation at 31 March 2025 is as follows:

			Land and buildings
			£

		At cost	8,917,182
		At valuation:
		March 2018 - Market value with vacant possession	925,000

			9,842,182

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
	2025	2024
	£	£

Group
Cost	8,917,182	8,808,614
Net book value	8,917,182	8,808,614

Page 26

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.Tangible fixed assets (continued)

	Company

	Freehold property	Motor vehicles	Total
	£	£	£
Cost or valuation
At 1 April 2024	9,391,220	77,250	9,468,470
Additions	450,962	-	450,962
At 31 March 2025	9,842,182	77,250	9,919,432
Depreciation
At 1 April 2024	-	33,797	33,797
Charge for the year on owned assets	-	10,863	10,863
At 31 March 2025	-	44,660	44,660
Net book value
At 31 March 2025	9,842,182	32,590	9,874,772
At 31 March 2024	9,391,220	43,453	9,434,673

Page 27

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2025	2024
	£	£


Motor vehicles	32,590	43,453
	32,590	43,453

Cost or valuation at 31 March 2025 is as follows:

			Land and buildings
			£

		At cost	8,917,182
		At valuation:
		March 2018 - Market value with vacant possession	925,000

			9,842,182

Page 28

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

14.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 April 2024	2
	At 31 March 2025	2

Subsidiary undertaking
The following was a subsidiary undertaking of the company:
Name	Registered office	Class of shares	Holding

Purecare Care Services Limited

England and Wales

Ordinary

100%

15.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Trade debtors	292,815	162,368	-	-
Amounts owed by group undertakings	-	-	3,791,110	4,947,026
Prepayments and accrued income	67,098	67,176	-	6,214
	359,913	229,544	3,791,110	4,953,240

16.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	532,257	684,688	113,305	370,109
	532,257	684,688	113,305	370,109

Page 29

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

17.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank loans	318,624	132,835	318,624	132,835
Trade creditors	383,483	117,076	46,142	9,910
Corporation tax	363,020	191,888	44,629	-
Other taxation and social security	43,463	32,824	1,088	-
Obligations under finance lease and hire purchase contracts	16,812	16,812	16,812	16,812
Other creditors	14,310	24,498	13,066	17,583
Accruals and deferred income	275,951	245,398	49,286	37,408
	1,415,663	761,331	489,647	214,548

18.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank loans	5,677,018	6,160,690	5,677,018	6,160,690
Net obligations under finance leases and hire purchase contracts	13,248	30,061	13,248	30,061
	5,690,266	6,190,751	5,690,266	6,190,751

Page 30

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

19.	Loans and overdrafts
		Group 2024	Company 2024	Group 2023	Company 2023
		£	£	£	£


Payable within one year	318,625	318,625	132,835	132,835
Payable after one year	5,677,017	5,677,017	6,160,690	6,160,690
	5,995,642	5,995,642	6,293,525	6,293,525

The long-term loans are secured by fixed charges over the company's freehold properties.

In June 2022 the company secured a long-term loan of £4,320,000 payable over 5 years, with an interest rate of 2.65% per annum, over the Bank of England Base Rate. The loan is repayable over 5 years by monthly instalments with a final repayment of the outstanding balance of the loan and all accrued interest. During the year the terms of the above loan were updated, interest rate now 1.95% per annum over the Bank of England Base Rate.

In May 2023 the company secured a long-term loan of £2,178,000 payable over 5 years, with an interest rate of 2.65% per annum, over the Bank of England Base Rate. The loan is repayable over 5 years by monthly instalments with a final repayment of the outstanding balance of the loan and all accrued interest. During the year the terms of the above loan were updated, interest rate now 1.95% per annum over the Bank of England Base Rate.

20.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Amounts falling due within one year
Bank loans	318,624	132,835	318,624	132,835

Amounts falling due 2-5 years
Bank loans	5,677,018	6,160,690	5,677,018	6,160,690

	5,995,642	6,293,525	5,995,642	6,293,525

Page 31

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

21.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Within one year	16,812	16,812	16,812	16,812
Between 1-5 years	13,248	30,061	13,248	30,061
	30,060	46,873	30,060	46,873

22.	Deferred taxation
	Group

	2025	2024
	£	£

At beginning of year	(174,237)	(17,197)
Charged to profit or loss	(1,568)	(27,481)
Utilised in year	2,716	(129,559)
At end of year	(173,089)	(174,237)

Page 32

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

22.Deferred taxation (continued)

	Company

	2025	2024
	£	£

At beginning of year	(146,756)	(17,197)
Utilised in year	2,716	(129,559)
At end of year	(144,040)	(146,756)

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£

Accelerated capital allowances	43,530	44,678	14,481	17,197
Revalued property capital gains	(129,559)	(129,559)	(129,559)	(129,559)
	173,089	174,237	144,040	146,756

23.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

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

24.	Pension commitments

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £37,040 (2024: £29,960). Contributions totalling £1,244 (2024: £6,915) were payable to these funds at the balance sheet date and are included in other creditors falling due within one year.

25.	Related party transactions
	Included within other creditors due within one year is an amount of £13,065 (2024 - £17,583) due from the directors of the company.

Page 33

PURECARE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

26.	Post balance sheet events

Subsequent to the year-end, in April 2025, a report was published by the Care Quality Commission (CQC) following an inspection of one of the Group’s care homes conducted during the financial year. The report rated the service as "Inadequate," leading to the home being placed into special measures and the imposition of an embargo by the local authority on new admissions.

Management has taken immediate steps to address the findings, including the engagement of external quality consultants and the appointment of new quality management personnel. The Group is actively working to implement a comprehensive improvement plan. At the date of approval of these financial statements, the home is awaiting reinspection and the embargo is therefore still in place. Also since the rating from CQC, the occupancy of the home has not been impacted by the embargo. This is not expected to have a significant impact on the trading position of the Group.

Page 34