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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Netto Care Limited is a private company limited by shares incorporated in England and Wales. The registered office is 57-59 Avenue Road, Westcliff On Sea, Essex, England, SS0 7PJ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Johnson Care Limited. These consolidated financial statements are available from its registered office, 57-59 Avenue Road, Westcliff on Sea, Essex SS0 7PJ.

The financial statements have been prepared on a going concern basis. As at the date of approval of these financial statements, the company has incurred a loss and is dependent on continued financial support from its fellow group companies. The group has provided assurances that it will continue to support the company, both financially and operationally, until it trueachieves profitability. Based on this support, the directors are confident that the company will be able to continue as a going concern and that the financial statements are prepared appropriately on this basis.

Netto Care Limited has received confirmations from the parent company and fellow group companies that they will continue to provide the necessary resources to enable the company to meet its obligations as they fall due for the foreseeable future. At the date of the directors approval of these financial statements the care home operated by the company had opened and was gradually increasing its occupancy. It is expecting to reach break even occupancy in the Spring of 2026, and generate profits from the Summer of 2026.

The financial support from the group will be assessed on an ongoing basis to ensure that it is adequate to meet the company's future financial requirements. If this support were to be withdrawn, there could be a material uncertainty regarding the company’s ability to continue as a going concern.

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

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

Assets in the course of construction are not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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

The directors are required to consider the potential impairment of the fixed assets

The directors are required to make judgements as to whether expenses on the redevelopment of the care home should be considered as fixed asset additions or a pre-trading expense.

The average monthly number of persons (including directors) employed by the company during the year was:

At the balance sheet date the company was still in the process of completing the redevelopment work on the care home it owned. At the balance sheet date the works had not been completed and so no depreciation has been provided in respect of this building.

During the prior year the group adopted a policy of reclassifying all inter company balances as being due to or due from the ultimate holding company Johnson Care Limited to simplify the disclosure within the financial statements.

For further details of the Bank loan, see Note 8 below.

At the balance sheet date, the company had borrowings consisting of two loans totaling £2,500,000 which was secured against the property known as Kingsclere Care Home, Fairview Drive, Westcliff on Sea.

At the year end the first loan is an interest only loan. Originally for a period of 2 years from inception followed by a period of interest and capital for the remaining 3 years.

At the year end the second loan is an interest only loan for the term of the loan.

Both loans are charged interest at Bank of England base rate plus 6.5%.

However, subsequent to the year-end, the company has repaid the entire loan balances in full. As a result, the loan is no longer outstanding, and the associated security, to this lender, over the company’s assets has been released.

The loan was refinanced as part of a whole group loan package. Kingsclere Care Home is part of the security given in respect of this loan. This security remains in place until the new loan is repaid in full, at which point the charge on the asset will be released.

This event has been disclosed in accordance with FRS 102 Section 32, as it is an event occurring after the reporting period that is of material significance to the financial position of the company.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss 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.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Subsequent to the balance sheet date, the company repaid its outstanding bank loan of £2,500,000 in August 2025. The repayment was made in full and the loan was settled.

Following the repayment, the group holding company entered into a new loan agreement. This new loan is secured against the Company's freehold assets located at Kingsclere Court, Fairview Drive, Westcliff on Sea. The terms of the new loan are disclosed in Note 8

This replacement loan has provided the group with the necessary liquidity and working capital to meet its ongoing financial requirements and commitments. The security over the company’s freehold property has been pledged as security for the new loan and will remain in place until the loan is repaid.

This event is disclosed in accordance with FRS 102 Section 32, as it is a subsequent event that is material to the financial position of the company.

The parent company of Netto Care Limited is Johnson Care Limited and its registered office is at 57-59 Avenue Road, Westcliff on Sea, Essex, SS9 7PJ.

Dr D Vive-Kananda is considered to be the ultimate controlling party, due to his majority shareholding in the ultimate holding company..

Johnson Care Limited is considered to be the largest group in which the company's results are consolidated.