ACCOUNTS - Final Accounts preparation

Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:

Registered number: 04425969

LINCOLN HOUSE CARE HOME LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

LINCOLN HOUSE CARE HOME LTD

COMPANY INFORMATION

Directors	Dr S Kaushal
	Mrs S Kaushal


Company secretary	Mrs S Kaushal


Registered number	04425969


Registered office	Lincoln House Care Home
	Dereham Road
	Swanton Morley
	Dereham
	Norfolk
	NR20 4LT


Independent auditors	BW Audit Limited
	Chartered Accountants & Statutory Auditors
	Berry & Warren
	54 Thorpe Road
	Norwich
	NR1 1RY

LINCOLN HOUSE CARE HOME LTD

CONTENTS

	Page
Strategic Report	1
Directors' Report	2 - 3
Independent Auditors' Report	4 - 7
Statement of Comprehensive Income	8
Balance Sheet	9 - 10
Statement of Changes in Equity	11
Notes to the Financial Statements	12 - 25

LINCOLN HOUSE CARE HOME LTD

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

Introduction

The board are pleased to present the company's strategic report for the year ended 31 March 2025.

Business review

The company's principal activity during the year continued to be that of provision of care services for the elderly.

We aim to present a balanced and comprehensive review of development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. Overall we are satisfied with the results for the year, achieved in a challenging climate, and aim to continue maintaining these results in the next 12 months.

The company continues to provide a high level of care to its residents, meeting a variety of care needs.

Principal risks and uncertainties

The directors believe that principal risks associated with the company would be the provision of substandard care and non-compliance with regulatory requirements. For all of these risks the company has in place policies and procedures and has implemented all possible measures.

Financial key performance indicators

We consider that our key financial performance indicators are those that communicate the financial performance and strengths of the company as a whole, these being turnover, occupancy rate and net profit margin. Due to the confidential nature of occupancy rates they have not been reproduced in this report.

		2025	2024
		£	£

	Turnover	3,663,862	3,289,367
	Net profit margin	15%	7%

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

Dr S Kaushal

Director

Date: 19 December 2025

Page 1

LINCOLN HOUSE CARE HOME LTD

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

The directors who served during the year were:

Dr S Kaushal

Mrs S Kaushal

Results and dividends

The profit for the year, after taxation, amounted to £559,820 (2024 - £213,582).

Ordinary dividends were paid amounting to £325,000 (2024 - £75,000). The directors do not recommend payment of a further dividend.

Directors' responsibilities statement

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

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

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

∙select suitable accounting policies for the company'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 company will continue in business.

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

Matters covered in the Strategic Report

In accordance with section 414C (11) of the Companies Act 2006, information on exposure to risks and future developments is covered in the strategic report.

Page 2

LINCOLN HOUSE CARE HOME LTD

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's auditors are unaware, and

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

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

Dr S Kaushal

Director

Date: 19 December 2025

Page 3

LINCOLN HOUSE CARE HOME LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINCOLN HOUSE CARE HOME LTD

Opinion

We have audited the financial statements of Lincoln House Care Home Ltd (the 'company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 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

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.

Page 4

LINCOLN HOUSE CARE HOME LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINCOLN HOUSE CARE HOME LTD (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic Report and the Directors' Report for the financial 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.

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Page 5

LINCOLN HOUSE CARE HOME LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINCOLN HOUSE CARE HOME LTD (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

The objectives of our audit in respect of fraud are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both the management and those charged with governance of the company.

Due to the field in which the company operates, we identified the areas most likely to have a direct material impact on the financial statements as compliance with UK tax legislation, UK accounting standards and the Companies Act 2006. In addition, we considered the provisions of other laws and regulations which whilst not having a direct impact on the financial statements, are fundamental to the company's ability to operate including health and safety, CQC regulations, employment law, and compliance with various other regulations relevant to the operation of the company.

Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:

∙Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace, potential litigation or claims and fraud;

∙Reviewing legal and professional fees for indicators of litigation;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

∙Assessing the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance;

∙Challenging assumptions and judgments made by management in their significant accounting estimates;

∙Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of any significant transactions outside the normal course of business.

Page 6

LINCOLN HOUSE CARE HOME LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINCOLN HOUSE CARE HOME LTD (CONTINUED)

Due to 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.

Joanne Fox BA FCA (Senior Statutory Auditor)

for and on behalf of

BW Audit Limited

Chartered Accountants

Statutory Auditors

Berry & Warren

54 Thorpe Road

Norwich

NR1 1RY

22 December 2025

Page 7

LINCOLN HOUSE CARE HOME LTD

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

	2025	2024
Note	£	£


Turnover	4	3,663,862	3,289,367
Cost of sales		(2,382,844)	(2,315,297)
Gross profit		1,281,018	974,070
Administrative expenses		(574,878)	(584,131)
Other operating income	5	2,436	41,958
Operating profit		708,576	431,897
Interest receivable and similar income	8	-	(48,427)
Interest payable and similar expenses	9	(141,125)	(151,556)
Profit before tax		567,451	231,914
Tax on profit	10	(7,631)	(18,332)
Profit for the financial year		559,820	213,582

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

The notes on pages 12 to 25 form part of these financial statements.

Page 8

LINCOLN HOUSE CARE HOME LTD

REGISTERED NUMBER: 04425969

BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	12		3,655,405		3,689,717
			3,655,405		3,689,717
Current assets
Debtors: amounts falling due within one year	13	4,451,480		4,209,981
Cash at bank and in hand	14	169,661		257,978
		4,621,141		4,467,959
Creditors: amounts falling due within one year	15	(767,645)		(770,246)
Net current assets			3,853,496		3,697,713
Total assets less current liabilities			7,508,901		7,387,430
Creditors: amounts falling due after more than one year			(1,745,700)		(1,866,680)
Provisions for liabilities
Deferred tax	18	(462,940)		(455,309)
			(462,940)		(455,309)
Net assets			5,300,261		5,065,441

Capital and reserves
Called up share capital		100	100
Revaluation reserve	20	1,710,122	1,763,722
Profit and loss account	20	3,590,039	3,301,619
		5,300,261	5,065,441

Page 9

LINCOLN HOUSE CARE HOME LTD

REGISTERED NUMBER: 04425969

BALANCE SHEET (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:

Dr S Kaushal

Director

Date: 19 December 2025

The notes on pages 12 to 25 form part of these financial statements.

Page 10

LINCOLN HOUSE CARE HOME LTD

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	1,817,322	3,109,437	4,926,859
Comprehensive income for the year
Profit for the year	-	-	213,582	213,582
Dividends: Equity capital	-	-	(75,000)	(75,000)
Transfer to/from profit and loss account	-	(53,600)	53,600	-

At 1 April 2024	100	1,763,722	3,301,619	5,065,441
Comprehensive income for the year
Profit for the year	-	-	559,820	559,820
Dividends: Equity capital	-	-	(325,000)	(325,000)
Transfer to/from profit and loss account	-	(53,600)	53,600	-
At 31 March 2025	100	1,710,122	3,590,039	5,300,261

The notes on pages 12 to 25 form part of these financial statements.

Page 11

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Lincoln House Care Home Ltd is a private company limited by shares incorporated in England and Wales. The registered office is shown on the company information page.

2.Accounting policies

2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

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

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Castlemeadow Group Holdings Ltd as at 31 March 2025 and these financial statements may be obtained from Companies House.

2.3

Going concern

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

Page 12

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.4

Revenue

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

Rendering of services

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

∙the amount of revenue can be measured reliably;

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

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

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

2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

2.6

Interest income

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

2.7

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.

2.8

Pensions

Defined contribution pension plan

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

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

Page 13

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.9

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 balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

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

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

2.10

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	2%
Plant and machinery	-	10%
Fixtures and fittings	-	15% - 33%

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

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

Page 14

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.11

Revaluation of tangible fixed assets

Individual freehold and leasehold 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 balance sheet 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.

2.12

Debtors

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

2.13

Cash and cash equivalents

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

2.14

Creditors

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

Page 15

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.15

Financial instruments

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

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

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

Basic financial assets

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

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

Impairment of financial assets

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

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

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

Financial liabilities

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

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

Page 16

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.15

Financial instruments (continued)

where the effect of discounting is immaterial.

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

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

2.16

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

In the application of the company’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 judgements, estimates and assumptions which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are addressed below:

Depreciation of tangible fixed assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Valuation of freehold property
The company commissions independent valuers, on a regular basis, to assess the value of the freehold properties. The directors use these values, updated with their knowledge of other factors, for the basis of their valuation estimation.

Turnover

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.

Page 17

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

5.	Other operating income
		2025	2024
		£	£

Government grants receivable	-	40,464
Sundry income	2,436	1,494
	2,436	41,958

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

10,200

9,720

Wages and salaries	2,105,396	2,035,307
Social security costs	147,712	123,204
Cost of defined contribution scheme	31,638	26,990
	2,284,746	2,185,501

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

	2025	2024
	No.	No.

Care home staff	85	81

Page 18

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

8.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	-	(48,427)
		-	(48,427)

The above charge reflects interest that had been accrued in 2023 and was waived in the current year.

9.	Interest payable and similar expenses
		2025	2024
		£	£

	Bank interest payable	141,125	151,556
		141,125	151,556



Total current tax	-	-

Deferred tax
Origination and reversal of timing differences	7,631	18,332
Total deferred tax	7,631	18,332


	Tax on profit	7,631	18,332

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LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

10.Taxation (continued)

Profit on ordinary activities before tax

567,451

231,914

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	141,863	57,979
Effects of:
Depreciation on assets not qualifying for tax allowances	21,868	21,868
Short-term timing difference leading to an increase (decrease) in taxation	214	247
Other timing differences leading to an increase (decrease) in taxation	(749)	-
Group relief	(155,565)	(61,762)
Total tax charge for the year	7,631	18,332

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

11.	Dividends
		2025	2024
		£	£

	Dividends paid	325,000	75,000
		325,000	75,000

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LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

12.	Tangible fixed assets

	Freehold property	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 April 2024	4,373,630	103,500	277,017	4,754,147
Additions	-	60,000	29,041	89,041
At 31 March 2025	4,373,630	163,500	306,058	4,843,188
Depreciation
At 1 April 2024	787,341	10,350	266,739	1,064,430
Charge for the year on owned assets	87,473	16,350	19,530	123,353
At 31 March 2025	874,814	26,700	286,269	1,187,783
Net book value
At 31 March 2025	3,498,816	136,800	19,789	3,655,405
At 31 March 2024	3,586,289	93,150	10,278	3,689,717

The Freehold property has been included at the directors' valuation. This valuation is based on a professional external valuation undertaken in 2021, based on recent market transactions on arm's length basis for similar properties.

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
	£	£


Cost	1,693,617	1,693,617
Accumulated depreciation	(372,590)	(338,718)
Net book value	1,321,027	1,354,899

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LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.

Debtors

					2025	2024
					£	£


Trade debtors	337,520	302,959
Amounts owed by group undertakings	3,926,226	3,705,689
Other debtors	143,308	151,332
Prepayments and accrued income	44,426	50,001
	4,451,480	4,209,981

14.	Cash and cash equivalents
		2025	2024
		£	£

Cash at bank and in hand	169,661	257,978
	169,661	257,978

15.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank loans	119,019	110,303
Trade creditors	65,687	76,152
Amounts owed to group undertakings	308,262	307,962
Other taxation and social security	32,340	31,951
Other creditors	76,898	72,614
Accruals and deferred income	165,439	171,264
	767,645	770,246

For details of the bank loan, see note 17.

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LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

16.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Bank loans	1,745,700	1,866,680
	1,745,700	1,866,680

For details of the bank loan, see note 17.

Amounts falling due within one year
Bank loans	119,019	110,303
	119,019	110,303
Amounts falling due 1-2 years
Bank loans	128,425	119,019
	128,425	119,019
Amounts falling due 2-5 years
Bank loans	449,439	416,523
	449,439	416,523
Amounts falling due after more than 5 years
Bank loans	1,167,836	1,331,138
	1,167,836	1,331,138
	1,864,719	1,976,983

Bank loans include a loan of £1,864,719 (2024 - £1,976,983) which is repayable at a variable rate of 2.38% over base rate, and is secured by a debenture and a charge over the freehold property of the company.

Page 23

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

18.	Deferred taxation

		2025
		£

	At beginning of year	455,309
	Charged to profit or loss	7,631
	At end of year	462,940

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

Accelerated capital allowances	29,050	21,419
Capital gains	433,890	433,890
	462,940	455,309

The deferred tax set out above is not expected to reverse significantly within the next 12 months.

19.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

100 (2024 - 100) Ordinary shares of £1 each	100	100

20.

Reserves

Revaluation reserve

The revaluation reserve includes all current and prior period revaluations where the fair value of an asset exceeded its original cost.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

Page 24

LINCOLN HOUSE CARE HOME LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

21.	Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £31,638 (2024 - £26,990). Contributions totalling £6,535 (2024 - £5,681) were payable to the fund at the balance sheet date and are included in creditors.

22.	Related party transactions
	The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions between wholly owned members of a group.. Included within other debtors is £142,553 (2024 - £142,553) owed from companies controlled by the directors.

23.	Controlling party

The ultimate parent company and smallest and largest group to consolidate these financial statements is Castlemeadow Group Holdings Ltd, a company incorporated in England, registered office Lincoln House Care Home, Dereham Road, Swanton Morley, Dereham, Norfolk NR20 4LT. The Castlemeadow Group Holdings Ltd consolidated financial statements are publicly available from Companies House.

The group is controlled by the directors.

Page 25