REGISTERED NUMBER: 09526697 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

NEXT STEPS MENTAL HEALTHCARE LIMITED

Page

Balance Sheet

1

Statement of Changes in Equity

2

Notes to the Financial Statements

3

FIXED ASSETS

Intangible assets

4

5,462

7,420

Tangible assets

5

89,984

79,494

95,446

86,914

CURRENT ASSETS

Debtors

6

1,242,009

989,457

Cash at bank

30,230

90,623

1,272,239

1,080,080

CREDITORS

Amounts falling due within one year

7

(1,208,216

)

(442,235

)

NET CURRENT ASSETS

64,023

637,845

TOTAL ASSETS LESS CURRENT LIABILITIES

159,469

724,759

PROVISIONS FOR LIABILITIES

10

(5,695

)

(60,348

)

NET ASSETS

153,774

664,411

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

153,674

664,311

153,774

664,411

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

P N Ledgard - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100

539,820

539,920

Changes in equity

Dividends

-

(530,000

)

(530,000

)

Total comprehensive income

-

654,491

654,491

Balance at 31 March 2024

100

664,311

664,411

Changes in equity

Dividends

-

(510,000

)

(510,000

)

Total comprehensive income

-

(637

)

(637

)

Balance at 31 March 2025

100

153,674

153,774

1.	STATUTORY INFORMATION

Next Step Mental Healthcare Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 09526697 and registered office address is 5 Brooklands Place, Brooklands Road, Sale, Cheshire, M33 3SD.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statement are drawn up for the company as a single entity. The presentation and fuctional currency of the financial statements is the Pound Sterling (£).

Related party exemption

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 with wholly owned subsidiaries within the group.

Critical accounting judgements 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 estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Provisions

A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Trade debtors recoverability

Amounts recoverable on trade debtors are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. The directors make estimates as to the recoverability of these debts and provide for them accordingly.

Mobilisation assets

Mobilisation assets relate to the set up cost of individual income generating units (IGU) and reflect the investment required to bring these IGU to operational status, being when a first service user moves in to the home. These IGU are each residential accommodation capable of providing care for people with complex care needs. All are set up to be capable of long-term accommodation support for their respective service users of between 15 and 25 years.

A 7-year useful economic life for amortising the mobilisation asset into the P&L result is used to reflect the period of time over which that initial investment is expected to realise financial benefits until further expenditure is likely to be needed to maintain the IG asset at the high standard required.

Other accounting judgements and key sources of estimation uncertainty

Depreciation

Depreciation is provided over the estimated useful life of the asset. The directors make estimates as to the length of those useful lives.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will recovered.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of 3 or 5 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

33% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

At each balance sheet date the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

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 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, which include trade debtors, other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

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 deducting all of its liabilities.

Basic financial liabilities, including trade creditors, other creditors, amounts owed to group undertakings and directors loan accounts that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The financial statements have been prepared on a going concern basis. Based on internal forecasts and projections considering severe and plausible downside scenarios, prepared for the period to future periods that take in to account the principal risks and uncertainties facing the business and reasonably possible changes in the company's trading performance, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the next 12 months. Accordingly, the going concern basis has continued to be adopted in the preparation of the financial statements

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 67 (2024 - 61 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 April 2024

8,231

Additions

660

At 31 March 2025

8,891

AMORTISATION

At 1 April 2024

811

Charge for year

2,618

At 31 March 2025

3,429

NET BOOK VALUE

At 31 March 2025

5,462

At 31 March 2024

7,420

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Motor

Computer

property

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2024

98,525

23,123

12,833

4,991

139,472

Additions

12,189

7,193

-

21,873

41,255

At 31 March 2025

110,714

30,316

12,833

26,864

180,727

DEPRECIATION

At 1 April 2024

24,603

23,050

11,496

829

59,978

Charge for year

21,139

1,440

1,337

6,849

30,765

At 31 March 2025

45,742

24,490

12,833

7,678

90,743

NET BOOK VALUE

At 31 March 2025

64,972

5,826

-

19,186

89,984

At 31 March 2024

73,922

73

1,337

4,162

79,494

6.

DEBTORS

2025

2024

£

£

Amounts falling due within one year:

Trade debtors

214,881

77,878

Amounts owed by group undertakings

711,607

642,353

Other debtors

145,792

153,018

1,072,280

873,249

2025

2024

£

£

Amounts falling due after more than one year:

Other debtors

169,729

116,208

Aggregate amounts

1,242,009

989,457

Other debtors include mobilisation assets of £198,017 (2024: £141,307), of which £169,729 is included in debtors due after one year.

Amounts owed by group undertakings are repayable on demand.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

33,453

67,005

Amounts owed to group undertakings

647,589

102,706

Taxation and social security

206,698

71,444

Other creditors

320,476

201,080

1,208,216

442,235

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£

£

Within one year

54,540

54,540

Between one and five years

58,630

113,170

113,170

167,710

9.	SECURED DEBTS

On 12 December 2022 the company entered into guarantees in the form of a fixed and floating charges to secure the borrowings of their penultimate parent company, Tristone Healthcare Limited. At 31 March 2025 the amount outstanding in respect of these guarantees was £19,649,000 (2024: £19,399,000). The beneficiary of the securities are Duke Capital Limited.

The company's immediate parent company, Tristone NS Holdings Limited, and its fellow subsidiary companies, THL Investments Limited, Roundhouse Care Holdings Limited, Tristone SSS Holdings Limited, Tristone PCM Holdings Limited, Premier Care Management Limited, Sportfit Support Services Limited, Tristone BL Holdings Limited, Beyond Limits (Plymouth) Ltd, Tristone PW Holdings Limited, Procare Wales Limited, Bangor Centre for Developmental Disabilities Limited, Seaside Care Homes Limited, Tristone Healthcare Properties Limited, South West Intervention Services Limited and South West Intervention Services Holdings Limited are also party to the same borrowings of Tristone Healthcare Limited.

10.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

5,695

348

Other provisions

-

60,000

5,695

60,348

Deferred

Dilapidati

tax

ons

£

£

Balance at 1 April 2024

348

60,000

Provided during year

5,347

-

Utilised during year

-

(60,000

)

Balance at 31 March 2025

5,695

-

Deferred tax of £5,695 (2024: 348) relates to accelerated capital allowances in excess of depreciation.

Dilapidations provision of £nil (2024: £60,000) is in respect of properties occupied

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Frederick Norman (Senior Statutory Auditor)

for and on behalf of Harold Sharp Limited

12.	PENSION COMMITMENTS

During the year the company contributed £31,088 (2024: £ 25,699) to a defined contribution pension scheme. At 31 March 2025 outstanding contributions of £8,345 (2024: £1,999) are included within other creditors.

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2025 and 31 March 2024:

2025

2024

£

£

K Bond

Balance outstanding at start of year

3,552

10,849

Amounts repaid

(3,552

)

(7,297

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

3,552

14.	RELATED PARTY DISCLOSURES

At 31 March 2025 the company was owed £711,607 (2024: £642,353) by Tristone NS Holdings Limited, the immediate parent company, and owed £615,094 (2024: £102,706) to Tristone Healthcare Limited, the penultimate parent company.

At 31 March 2025, the company owed £32,495 (2024: £nil) to ProCare Wales Limited, a fellow subsidiary.

No interest has been charged in respect of these loans, which is repayable on demand.

15.	ULTIMATE CONTROLLING PARTY

The company's immediate parent company is Tristone NS Holdings Limited and its ultimate parent company is Tristone Group Ltd, whose registered office is 5 Brooklands Place, Brooklands Road, Sale, Cheshire, M33 3SD. Consolidated financial statements can be obtained at Companies House, Crown Way, Cardiff, CF14 3UZ.