REGISTERED NUMBER: 02698436 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

CUERDEN ESTATES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTORS:

Mr K Lowe

Mrs K J Cramant

SECRETARY:

Mr R J Lowe

REGISTERED OFFICE:

Unit 6

Beecham Court

Pemberton

Wigan

Lancashire

WN3 6PR

REGISTERED NUMBER:

02698436 (England and Wales)

AUDITORS:

Fairhurst Audit Services Ltd

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

BANKERS:

National Westminster Bank

277 Station Road

Bamber Bridge

Preston

Lancashire

PR5 6LE

The directors present their strategic report for the year ended 31 March 2025.

The principal activities of the company during the year under review are the operation of residential and nursing care homes.

REVIEW OF BUSINESS

The company operates homes in Wigan, Preston and Bolton.

In total, our homes can provide accommodation for up to 321 people in purpose built facilities which offer residents, their visitors and staff attractive and safe environments in which to live, visit and work.

The company is proud of the valuable contribution of all staff team members whose commitment to supporting our residents has been consistently impressive despite the many challenges faced by the sector in recent years. The company continues to build upon its brand identity so that residents, relatives and healthcare purchasers can readily identify a "Cuerden Care" home.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider the key risks and uncertainties that the company faces comes from a variety of directions:

Financial risk

The company's credit risk is low, being mainly attributable to trade debtors. Privately funded residents pay a deposit on commencement and all credit risk, both publicly and privately funded, is managed by monitoring payments against contractual agreements. The company monitors cash flow as part of its day to day control procedures.

Operational risk

The UK care home employment market remains competitive and the company continually faces the challenge of recruitment and retention of quality team members. The company has mitigated this by paying all its care home staff above the National Living Wage and also invests in team inductions and training.

Regulatory risk

The company operates in a regulatory environment.

The Care Quality Commission has inspection models for residential care homes under five key lines of enquiry for every provider or service: is it safe, is it caring, is it responsive, is it effective and is it well-led.

Each question is rated one of inadequate, requires improvement, good or outstanding and provides an overall rating for the home. A poor rating may lead to a reduced level of occupational demand, a home being placed on embargo or, in extremis, a home being closed.

The directors are pleased to report that each site is visited on a regular basis and each has received an overall rating of good.

Key performance indicators

In the opinion of the directors, the key performance indicators of the company include gross profit margin and occupancy levels of the care homes, which are closely monitored. The occupancy levels have remained in line with the directors expectations.

SECTION 172(1) STATEMENT

The Directors are fully aware of their responsibilities to promote the success of the company in accordance with S172 of the Companies Act 2006. To ensure the company complies, the board regularly reflects on how the company engages with its stakeholders and reviews opportunities for enhancement in the future.

The board and the senior management team regularly reviews our principal stakeholders and how we engage with them. All stakeholders are key to ensuring that the company's residents receive the best care and value for money. The stakeholder voice is heard through information provided by the management team and also by direct engagement with stakeholders themselves. Such stakeholders include employees, residents, local authorities, suppliers and the wider community in which the company operates. Regular resident meetings are recorded and help steer the strategic direction of each home. Employee and resident engagement has been, and will continue to be, an important consideration in decision making.

The board continues to work responsibly with our suppliers. The importance of supplier relationships is also recognised, as evidenced by paying suppliers to agreed terms.

Engagement with suppliers, customer and others

Matters relating to the company's engagement with suppliers, customers and others is included in the S172 statement above.

Disabled employee policy

The company's policy is to recruit disabled workers for the vacancies that they are able to fulfil. All necessary assistance with initial training is provided.

COVID-19

From early March 2020, the company adopted a pro-active stance to mitigate the risks presented by Covid-19.

Although the majority of the procedures put in place have now been relaxed, Covid-19 remains an on-going challenge for the company and the whole sector. We consider the company well placed to manage such challenges and to continue to provide support, care and fulfilment to all our residents, as well as providing safe work environments for our staff.

FUTURE DEVELOPMENTS

The directors anticipate the business environment will continue to be competitive but are confident the service provided by the company is set up to meet the needs of its customers. Changes and refurbishments will be made to service demand.

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price, credit, liquidity, and cash flow risks arising from trading activities which are conducted in the local market place.

ON BEHALF OF THE BOARD:

Mr K Lowe - Director

18 December 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £ 3,000,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

Mr K Lowe

Mrs K J Cramant

The company is a wholly owned subsidiary of Launchrandom Limited and the interests of the director are disclosed in the financial statements of the parent company.

OPERATION OF THE BUSINESS

The directors continue to strive to offer the best care and experience to the company's residents, rewarding and fulfilled careers to our staff, and a supportive environment to the families and friends of our residents.

In this context, the focus remains on ensuring the "Cuerden Care" ethos and culture is maintained across all homes, whilst ensuring that a robust operational performance both in terms of care service and occupancy is sustained.

GOING CONCERN

The directors continue to monitor the cash flow and reserves of the company to ensure that it remains financially solvent and viable.

The directors therefore believe that the company has adequate resources to remain in operation for a period in excess of 12 months from the date of signing this report and that it is appropriate to adopt the going concern basis for the preparation of these financial statements.

STREAMLINED ENERGY AND CARBON REPORTING

As a large group, under the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, we are required to prepare a Streamlined Energy Carbon Reporting Report. This report contains details of the Company's annual energy usage (in kWh) and the relevant greenhouse gas emissions (in tonnes of carbon dioxide equivalent (CO2e)).

The intensity ratio is calculated by comparing emissions data to the company turnover for the period.

2024/25

2024/25

2023/24

2023/24

Energy usage

Greenhouse Gas

Energy usage

Greenhouse Gas

in kWh

Emissions in CO2e

in kWh

Emissions in CO2e

Electricity & Gas

2,091,248

433,014

2,286,251

473,344

Transport

16,743

4,228

15,778

3,984

Total

2,107,991

437,242

2,302,029

477,328

The conversions factors used in the above table are taken from the UK Government GHG Conversion Factors for Company Reporting.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Fairhurst Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr K Lowe - Director

18 December 2025

Opinion

We have audited the financial statements of Cuerden Estates Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, 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 UK, including the FRC'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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page five, 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 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.

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 a Report of the Auditors 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.

Extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect in the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatements 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 and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

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 obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. As a result of these procedures we consider that the most significant laws and regulations that have a direct impact on the financial statements are Health & Safety regulations, FRS 102 and the Companies Act 2006.

-

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing regulatory reports and inspecting legal correspondence.

In assessing the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur;

-

We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any instances of fraud that had taken place during the year.

To address the risk of fraud through management bias and override of controls;

-

We performed analytical procedures to identify any unusual or unexpected relationships;

-

We tested journal entries to identify unusual transactions; and

-

We assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Jane Dennis BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Fairhurst Audit Services Ltd

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

18 December 2025

TURNOVER

30,787,225

30,071,535

Cost of sales

15,443,730

15,830,082

GROSS PROFIT

15,343,495

14,241,453

Administrative expenses

2,779,702

2,913,777

12,563,793

11,327,676

Other operating income

5,968

8,952

OPERATING PROFIT

6

12,569,761

11,336,628

Income from fixed asset investments

55,985

-

Interest receivable and similar income

2,492

-

58,477

-

12,628,238

11,336,628

Interest payable and similar expenses

7

80,353

16,309

PROFIT BEFORE TAXATION

12,547,885

11,320,319

Tax on profit

8

3,171,179

2,845,638

PROFIT FOR THE FINANCIAL YEAR

9,376,706

8,474,681

OTHER COMPREHENSIVE INCOME

Revaluation of fixed asset investment

343,906

690,690

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

343,906

690,690

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

9,720,612

9,165,371

FIXED ASSETS

Tangible assets

10

4,629,931

4,862,688

Investments

11

8,512,779

4,116,575

13,142,710

8,979,263

CURRENT ASSETS

Debtors

12

27,548,731

13,237,948

Cash at bank and in hand

2,066,333

13,919,914

29,615,064

27,157,862

CREDITORS

Amounts falling due within one year

13

3,830,466

3,909,421

NET CURRENT ASSETS

25,784,598

23,248,441

TOTAL ASSETS LESS CURRENT LIABILITIES

38,927,308

32,227,704

PROVISIONS FOR LIABILITIES

14

163,021

184,029

NET ASSETS

38,764,287

32,043,675

CAPITAL AND RESERVES

Called up share capital

15

2

2

Retained earnings

16

38,764,285

32,043,673

SHAREHOLDERS' FUNDS

38,764,287

32,043,675

The financial statements were approved by the Board of Directors and authorised for issue on 18 December 2025 and were signed on its behalf by:

Mr K Lowe - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

2

25,878,302

25,878,304

Changes in equity

Dividends

-

(3,000,000

)

(3,000,000

)

Total comprehensive income

-

9,165,371

9,165,371

Balance at 31 March 2024

2

32,043,673

32,043,675

Changes in equity

Dividends

-

(3,000,000

)

(3,000,000

)

Total comprehensive income

-

9,720,612

9,720,612

Balance at 31 March 2025

2

38,764,285

38,764,287

Cash flows from operating activities

Cash generated from operations

1

11,820,159

11,948,275

Interest paid

(80,353

)

(16,309

)

Tax paid

(2,750,789

)

(1,812,073

)

Net cash from operating activities

8,989,017

10,119,893

Cash flows from investing activities

Purchase of tangible fixed assets

(41,847

)

(1,638,586

)

Purchase of fixed asset investments

(4,069,207

)

-

Sale of fixed asset investments

16,909

-

Interest received

2,492

-

Dividends received

55,985

-

Net cash from investing activities

(4,035,668

)

(1,638,586

)

Cash flows from financing activities

Amount withdrawn by directors

3,001,766

-

Amount introduced by directors

(3,190,535

)

(620,488

)

Funding from (to) other Group companies

(13,618,161

)

7,590,415

Equity dividends paid

(3,000,000

)

(3,000,000

)

Net cash from financing activities

(16,806,930

)

3,969,927

(Decrease)/increase in cash and cash equivalents

(11,853,581

)

12,451,234

Cash and cash equivalents at beginning of year

2

13,919,914

1,468,680

Cash and cash equivalents at end of year

2

2,066,333

13,919,914

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

12,547,885

11,320,319

Depreciation charges

274,605

151,306

Finance costs

80,353

16,309

Finance income

(58,477

)

-

12,844,366

11,487,934

(Increase)/decrease in trade and other debtors

(694,388

)

376,204

(Decrease)/increase in trade and other creditors

(329,819

)

84,137

Cash generated from operations

11,820,159

11,948,275

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

2,066,333

13,919,914

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

13,919,914

1,468,680

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

13,919,914

(11,853,581

)

2,066,333

13,919,914

(11,853,581

)

2,066,333

Total

13,919,914

(11,853,581

)

2,066,333

1.	STATUTORY INFORMATION

Cuerden Estates Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared under the historical cost convention.

The financial statements contain information about Cuerden Estates Limited as an individual company. The company is a subsidiary and part of a large sized group. Under the provisions of the Companies Act 2006 the parent company is required to prepare consolidated financial statements.

Going concern

The directors continue to monitor the cash flow and reserves of the company to ensure that it remains financially solvent and viable.

The directors therefore believe that the company has adequate resources to remain in operation for a period in excess of 12 months from the date of signing this report and that it is appropriate to adopt the going concern basis for the preparation of these financial statements.

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.

Revenue

Revenue is the total amount receivable by the company for residents fees, excluding value added tax, for the services provided in the year.

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.

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 and 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, and

-

The stage of completion of the contract as the end of the reporting period can be measured reliably.

Tangible fixed assets

Tangible fixed assets are initially measured at costs and are subsequently remeasured at cost or valuation, net of depreciation and any impairment losses.

Deprecation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Freehold property

2% on cost

Fixtures and fittings

15% on cost

Computer equipment

straight line over 3 years

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

The company does not have any financial assets which are not classified as basic financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Other financial liabilities

The company does not have any financial liabilities which are not classified as basic financial instruments.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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.

3.	CRITICAL ACCOUNTING JUDGEMENTS & 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 value 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 revisions affect only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic life of tangible fixed assets

The useful economic life of tangible fixed assets is judged at the point of purchase and is then re-assessed at each reporting date. A useful economic life of 50 years is applied to land and buildings, 7 years for fixtures and fittings and 3 years for computer equipment.

Key sources of estimation uncertainty

At each balance sheet date, management undertake a review of the outstanding trade debtor balances and estimate the balance that should either be impaired or provided against.

This calculation is based on the financial position of the customers, the historical speed of payment and any ongoing discussions.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

12,703,979

12,964,967

Social security costs

1,103,420

1,053,835

Other pension costs

232,954

252,891

14,040,353

14,271,693

The average number of employees during the year was as follows:

2025

2024

Administration staff

8

8

Management staff

5

5

Nursing home staff

515

516

528

529

5.	DIRECTORS' REMUNERATION

2025

2024

£

£

Directors' remuneration

-

-

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

274,604

151,306

Auditors' remuneration

9,528

7,560

Auditors' remuneration for non audit work

34

13

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Corporation tax interest

80,353

16,309

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

3,192,187

2,674,350

Deferred tax

(21,008

)

171,288

Tax on profit

3,171,179

2,845,638