REGISTERED NUMBER: 02748547 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2025

FOR

LINDEN CARE HOMES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Independent Auditors' Report

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTOR:

D Charles

REGISTERED OFFICE:

Linden Lodge Nursing Home

Church Road

Warton

Tamworth

Staffordshire

B79 0JR

REGISTERED NUMBER:

02748547 (England and Wales)

INDEPENDENT AUDITORS:

Armstrongs

Chartered Accountants and Statutory Auditors

Gethin House

36 Bond Street

Nuneaton

Warwickshire

CV11 4DA

The director presents his strategic report for the year ended 31st March 2025.

REVIEW OF BUSINESS

The company continues to successfully operate three care homes in Warwickshire offering nursing, dementia, residential and respite care. Each of our residential care homes is purpose built, elegantly decorated, equipped with en-suite facilities, quite lounges and beautifully landscaped gardens.

Our outstanding care is shaped around the needs of the people we look after. All our homes provide high light, homely and relaxed atmosphere with an extremely high standard of comfort and personal care.

This year the company has shown a positive rent with a notable revenue growth of 3% compared to last year. This increase reflects the company's ongoing commitment to excellence in care and its ability to adapt and expand its services to meet the needs of its residents.

The company aims to continue this upwards trend by focusing on innovation in care services., expanding its facilities, and maintaining a strong emphasis on resident-centered care. The company is well-positioned to build on its successes and deliver even greater value to its residents and stakeholders in the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors recognise that within the business there are a number of risks which may affect the performance of the company.The risks are subject to regular review, and where appropriate, processes are established to minimise the level of exposure. The principal risks and uncertainties facing the group are broadly as follows:

Legislative risks

The company faces regular monitoring from Care Quality Commission (CQC). Compliance with CQC regulations imposes costs and failure to comply with the standards could materially affect the company's ability to operate. The directors ensure that care homes are run to high standards and to-date no such adverse findings. The company faces increase costs with the rise of the national minimum wage with wages being one of the largest costs to the company.

Financial risks

The company's exposed to financial risk thorough its assets and liabilities. The principal financial instruments comprise of cash, trade debtors, bank loans and the inter-company balances which arise directly from its operations.

The main risks arising from the company's financial instruments are credit risk, interest rate risk and liquidity risk.

Credit risk

The company continues to minimise commercial credit risk and has not suffered unduly from bad debts.

Interest rate risk

The company's borrowing are on variable rate basis and is exposed to potential increases in interest rates. The directors continue to monitor its interest obligations and its investment portfolio to ensure that future increases in the interest rates will not unduly affect the performance of the business.

Liquidity risk

Liquidity risk exist when the company may face difficulty in meeting obligations associated with financial liabilities. The directors aim to mitigate liquidity risk by managing cash generation by its operations and applying cash collections targets.

PRINCIPAL RISKS AND UNCERTAINTIES

The key management has established a risk and financial management framework whose primary objectives are to protect the company from events that can impact the achievement of the company's performance objectives. Financial framework's main aim is to limit the undue counterparty exposure, ensure working capital adequacy and monitor and manage these risks at a business unit level.

The company has a robust financial control environment, controls are in place ensuring the production of accurate and timely management information.

The director has well-defined management structure with clear lines of delegation coupled with a culture of open communication with management. Our managers have a clear focus on quality care, selective recruitment and staff development.

KEY PERFORMANCE INDICATORS

Turnover for the year increased by 3.4% to £6.6m. Direct costs have increased and this has resulted in an decrease in the company's gross profit percentage to 32.02% (2024: 33.4%).

Turnover and occupancy rates are continuing to improve in the year to 31 March 2026 and on current performance turnover should show an increase.

No other statistics or rates are shown as the directors feel that they are identifiable from the figures contained in the financial statements attached.

ON BEHALF OF THE BOARD:

D Charles - Director

19th December 2025

The director presents his report with the financial statements of the company for the year ended 31st March 2025.

DIVIDENDS

An interim dividend of £2000 per share was paid on 31st March 2025. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31st March 2025 will be £ 22,000 .

FUTURE DEVELOPMENTS

The company continues to operate within the care home sector. There are challenges ahead within the sector which the company's strategic plan must address and overcome. The worsening United Kingdom economy and global economy present potential financial constraints, The company's director and management team are confident that the initiatives already put in place will mitigate any disruption ensuring the company can continue to see increased turnover growth and continual strengthening of the company's operations.

DIRECTOR

D Charles held office during the whole of the period from 1st April 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Armstrongs, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Charles - Director

19th December 2025

Opinion

We have audited the financial statements of Linden Care Homes Limited (the 'company') for the year ended 31st March 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31st 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Auditors' Report 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the industry, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting unusual journal entries to increase revenue and profits or the manipulation of accounting estimates which could be subject to management bias. Audit procedures performed by the engagement team included:

- Enquiry with management, those charged with governance around actual and potential litigation and claims;

- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;

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

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

- Performing audit work over the risk of understatement of turnover including analytical review and obtaining corroborated explanations from management.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Jane Biggs (Senior Statutory Auditor)

for and on behalf of Armstrongs

Chartered Accountants and Statutory Auditors

Gethin House

36 Bond Street

Nuneaton

Warwickshire

CV11 4DA

19th December 2025

TURNOVER

6,643,285

6,425,167

Cost of sales

4,492,289

4,281,667

GROSS PROFIT

2,150,996

2,143,500

Administrative expenses

1,960,621

1,935,947

190,375

207,553

Other operating income

3,897

18,836

OPERATING PROFIT

4

194,272

226,389

Interest receivable and similar income

15,460

12,023

209,732

238,412

Interest payable and similar expenses

6

138,014

152,570

PROFIT BEFORE TAXATION

71,718

85,842

Tax on profit

7

(530,166

)

420,626

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

601,884

(334,784

)

OTHER COMPREHENSIVE INCOME

Revaluation

(181,961

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(181,961

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

419,923

(334,784

)

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

6,902,992

7,268,294

6,902,992

7,268,294

CURRENT ASSETS

Stocks

11

40,000

16,000

Debtors

12

810,075

790,593

Cash at bank and in hand

797,717

964,707

1,647,792

1,771,300

CREDITORS

Amounts falling due within one year

13

1,321,533

1,305,963

NET CURRENT ASSETS

326,259

465,337

TOTAL ASSETS LESS CURRENT LIABILITIES

7,229,251

7,733,631

CREDITORS

Amounts falling due after more than one year

14

(1,348,738

)

(1,658,222

)

PROVISIONS FOR LIABILITIES

17

(2,701

)

(595,520

)

NET ASSETS

5,877,812

5,479,889

CAPITAL AND RESERVES

Called up share capital

18

11

11

Revaluation reserve

19

1,408,636

3,097,692

Retained earnings

19

4,469,165

2,382,186

SHAREHOLDERS' FUNDS

5,877,812

5,479,889

The financial statements were approved by the director and authorised for issue on 19th December 2025 and were signed by:

D Charles - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st April 2023

11

2,733,470

3,097,692

5,831,173

Changes in equity

Dividends

-

(16,500

)

-

(16,500

)

Total comprehensive income

-

(334,784

)

-

(334,784

)

Balance at 31st March 2024

11

2,382,186

3,097,692

5,479,889

Changes in equity

Dividends

-

(22,000

)

-

(22,000

)

Total comprehensive income

-

2,108,979

(1,689,056

)

419,923

Balance at 31st March 2025

11

4,469,165

1,408,636

5,877,812

Cash flows from operating activities

Cash generated from operations

1

369,593

509,228

Interest paid

(138,014

)

(152,570

)

Tax paid

(71,049

)

(7,680

)

Net cash from operating activities

160,530

348,978

Cash flows from investing activities

Purchase of tangible fixed assets

(11,496

)

-

Interest received

15,460

12,023

Net cash from investing activities

3,964

12,023

Cash flows from financing activities

New loans in year

-

276,297

Loan repayments in year

(309,484

)

(301,569

)

Equity dividends paid

(22,000

)

(16,500

)

Net cash from financing activities

(331,484

)

(41,772

)

(Decrease)/increase in cash and cash equivalents

(166,990

)

319,229

Cash and cash equivalents at beginning of year

2

964,707

645,478

Cash and cash equivalents at end of year

2

797,717

964,707

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

2025

2024

£

£

Profit before taxation

71,718

85,842

Depreciation charges

194,837

220,915

Loss on disposal of fixed assets

-

100

Finance costs

138,014

152,570

Finance income

(15,460

)

(12,023

)

389,109

447,404

Increase in stocks

(24,000

)

-

Increase in trade and other debtors

(19,482

)

(319,781

)

Increase in trade and other creditors

23,966

381,605

Cash generated from operations

369,593

509,228

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

797,717

964,707

Year ended 31st March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

964,707

645,478

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

964,707

(166,990

)

797,717

964,707

(166,990

)

797,717

Debt

Debts falling due within 1 year

(301,570

)

-

(301,570

)

Debts falling due after 1 year

(1,658,222

)

309,484

(1,348,738

)

(1,959,792

)

309,484

(1,650,308

)

Total

(995,085

)

142,494

(852,591

)

1.	STATUTORY INFORMATION

Linden Care Homes 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.

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 in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Turnover

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

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.

Revenue from contracts for the provision of professional 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 and materials, 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 be recovered.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2004, is being amortised evenly over its estimated useful life of twenty years.

The useful life is based on management's estimate of the period over which it is expected to generate benefits. Provision is made for any impairment.

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.

Tangible fixed assets

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

Freehold property

-

2% on cost

Fixtures and fittings

-

25% on reducing balance and 20% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

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 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.

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.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,094,481

3,836,290

Social security costs

316,331

279,647

Other pension costs

123,639

117,592

4,534,451

4,233,529

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

2025

2024

Office and management

11

11

Care, cleaning and maintenance

193

195

204

206

2025

2024

£

£

Director's remuneration

102,129

96,936

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

194,837

197,478

Loss on disposal of fixed assets

-

100

Goodwill amortisation

-

23,438

Auditors' remuneration

10,858

11,538

5.	EXCEPTIONAL ITEMS

2025

2024

£

£

Exceptional items

-

(99,307

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

133,532

152,570

Interest on overdue taxation

4,482

-

138,014

152,570

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

62,653

75,455

Deferred tax

(592,819

)

345,171

Tax on profit

(530,166

)

420,626

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

71,718

85,842

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

17,930

21,461

Effects of:

Expenses not deductible for tax purposes

1,321

409

Depreciation in excess of capital allowances

35,254

53,585

Origination and reversal of timing differences

(584,671

)

345,171

Total tax (credit)/charge

(530,166

)

420,626

Tax effects relating to effects of other comprehensive income

2025

Gross

Tax

Net

£

£

£

Revaluation

(181,961

)

-

(181,961

)

8.

DIVIDENDS

2025

2024

£

£

Ordinary shares of 1 each

Interim

22,000

16,500

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1st April 2024

and 31st March 2025

1,125,000

AMORTISATION

At 1st April 2024

and 31st March 2025

1,125,000

NET BOOK VALUE

At 31st March 2025

-

At 31st March 2024

-