Company registration number 08776429 (England and Wales)
CROWN CARE IV LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
CROWN CARE IV LIMITED
COMPANY INFORMATION
Director
M Ladhar
Company number
08776429
Registered office
Earl Grey Properties
2nd Floor
Adelphi Chambers
20 Shakespeare Street
Newcastle Upon Tyne
NE1 6AQ
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
CROWN CARE IV LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 20
CROWN CARE IV LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
- 1 -

The director presents the strategic report for the year ended 31 October 2025.

Crown Care IV Limited is a family owned care home operator based in the North of England which specialises in the development and operation of high-quality luxury care homes.

The company currently operates seven mature, luxury care home s in the North of England.

The Crown Care Holdings Group of which the company is a member aims to be the premier provider of care services in the regions it operates in.

Fair review of the business

For the year ended 31 October 202 5, turnover was £20,143,318, an increase of 10.9% on the previous trading year.

Staffing costs for care home staff totalled £11,453,555, up from £10,422,430 in 202 4. The company is committed to developing and retaining its highly skilled staffing group and aims to reward employees appropriately through its annual pay increases.

Gross profit increased to £7,580,196 from £6,412,615 in 202 4. As at 31 October 202 5, the company had net current assets of £31,414,160 (2024: £12,201,850), net assets of £35,085,756 (202 4: £30,171,327) and cash balances of £9,561,708 (202 4: £8,960,388).

Principal risks and uncertainties

The director contin uall y analyses the key risks to the business.

Reputational risk

The company aims to maintain its reputation as the premier provider of residential and nursing care (where applicable) in the areas it operates in.

The company ensures it follows all Care Quality Commission (CQC) regulations, including local authority and clinical commissioning group contractual requirements, with senior operations team members attending appropriate courses and conferences to make sure the company is always fully up to date with anticipated updates or changes.

Health and Safety

Maintaining the safety of staff, residents, visitors and any other outside professionals/contractors is critical to the company. The company has a dedicated Health and Safety Manager who overseas the monitoring and compliance of all Health and Safety issues. All company staff members are given the necessary training and equipment to ensure they carry out their duties accordingly to maintain and promote safety at all times.

Financial risk

Whist local authority fees have increased, they are under pressure and struggle to increase fees in line with rising costs.

The company is well-structured and positioned as it has a relatively low reliance on local authority funded placements.

The company has a robust and well organised procurement process for food, utilities and service contracts to ensure goods/services are provided at the best possible rates.

CROWN CARE IV LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 2 -
Key performance indicators

The table below sets out the key financial indicators of the company.

| 202 5 | 202 4
| £ | £
Turnover | 20,143,318 | 18,168,731
Staffing costs | 11,453,555 | 10,422,430
Gross profit | 7,580,196 | 6,412,615

The company continues to achieve strong turnover and maintained gross profit levels.

Future prospects

The director is pleased with the performance of the company for the year ended 31 October 202 5 and expects continued growth in revenue and profitability in the coming year.

The company is committed to continue a programme of substantial investment in staff training and development to deliver the highest standard of care that is thoughtfully tailored to individual needs. The company is further committed to maintaining the quality of care as its key differentiator within environments which are both luxurious and homely.

Promoting the success of the company

The directors have had regard of the matters set out in S172 (1) of the Companies Act 2006 when performing their duties under S172. The directors consider that they have acted in good faith in the way that would be most likely to promote the success of the company for the benefit of its members as a whole, while also considering the broad range of stakeholders who interact with and are impacted by our business, especially with regard to major decisions.

In doing the above the directors have taken into account the following: -

a) The likely consequences of any decision in the long term

The directors have set out a clear strategy for the business over the medium and long term for creating value and growth, what has been shared with staff and shareholders, the key pillars of which are set out below.

Humanity - being passionate about caring for people and organisations by creating an experience that is more human, with a personal connection; and

Technology - investing in new technologies, in order to better connect and make the experience smart, simple and efficient.

b) The interests of the company's employees through:

- Regular leadership meetings, department meetings and conferences,

- Active employee feedback through Q and A, and open culture and regular staff surveys: and

- The provision of learning and development opportunities for staff including management training and mental health.

c) The need to foster the company's business relationships with suppliers, customers and others by ensuring all stakeholders are treated within the spirit and detail of the Crown Care ethics policies and the core values.

d) The impact of the company's operations on the community and the environment including consideration of climate change through supporting appropriate energy saving opportunity scheme recommendations and a push to become as paperless as possible.

e) The desirability of the company maintaining a reputation for high standards of business conduct through the organisations values, culture and ethical standards, as set out in the company's business principles, which are published on its website. Our core values represent the foundation of our culture. They help us develop, grow and better serve our residents and other stakeholders.

f) The need to act fairly between members of the company through treating shareholders equitably.

CROWN CARE IV LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 3 -

On behalf of the board

M Ladhar
Director
13 May 2026
CROWN CARE IV LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
- 4 -

The director presents his annual report and financial statements for the year ended 31 October 2025.

Principal activities

The principal activity of the company continued to be that of a care home operator.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

M Ladhar
Research and development

The Company has not undertaken any material research and development activity in the period.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Energy and carbon report

Full energy and carbon reporting has been completed in the group accounts therefore no specific reporting is deemed necessary in the individual company.

Statement of director's responsibilities

The director is responsible for preparing the annual report 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;

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

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

CROWN CARE IV LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 5 -

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 them 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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
M Ladhar
Director
13 May 2026
CROWN CARE IV LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CROWN CARE IV LIMITED
- 6 -
Opinion

We have audited the financial statements of Crown Care IV Limited (the 'company') for the year ended 31 October 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 October 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

CROWN CARE IV LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CROWN CARE IV LIMITED (CONTINUED)
- 7 -
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 identifie d material misstatements in the strategic report or the director's r eport.

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

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

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

- certain disclosures of 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 director's r esponsibilities s tatement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the 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.

Auditor's 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 auditor's 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.

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework, in which the company operates and how the company complies with that legal and regulatory framework

- inquired with management and those charged with governance about their own identification and assessment of the risks of irregularities, including any know n actual, suspected or alleged instances of fraud

- discussed with management and those charged with governance any non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud.

The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls

CROWN CARE IV LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CROWN CARE IV LIMITED (CONTINUED)
- 8 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's 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 member, for our audit work, for this report, or for the opinions we have formed.

Nicholas Cunningham MSc BSc FCCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited, Statutory Auditor
Accountants
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
NE2 1TJ
England
13 May 2026
CROWN CARE IV LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
20,143,318
18,168,731
Cost of sales
(12,563,122)
(11,756,116)
Gross profit
7,580,196
6,412,615
Administrative expenses
(2,457,494)
(2,409,641)
Other operating income
21,000
6,145
Operating profit
4
5,143,702
4,009,119
Interest receivable and similar income
7
2,523,901
1,906,685
Interest payable and similar expenses
8
(1,112,881)
(726,569)
Profit before taxation
6,554,722
5,189,235
Tax on profit
9
(1,640,293)
(421,299)
Profit for the financial year
4,914,429
4,767,936

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CROWN CARE IV LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2025
31 October 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
23,348,003
23,454,106
Investments
11
997
997
23,349,000
23,455,103
Current assets
Debtors
13
27,414,754
17,988,965
Cash at bank and in hand
9,561,708
8,960,388
36,976,462
26,949,353
Creditors: amounts falling due within one year
14
(5,562,302)
(14,747,503)
Net current assets
31,414,160
12,201,850
Total assets less current liabilities
54,763,160
35,656,953
Creditors: amounts falling due after more than one year
15
(19,610,000)
(5,398,213)
Provisions for liabilities
Deferred tax liability
17
67,404
87,413
(67,404)
(87,413)
Net assets
35,085,756
30,171,327
Capital and reserves
Called up share capital
18
6,000
6,000
Share premium account
6,033,590
6,033,590
Profit and loss reserves
29,046,166
24,131,737
Total equity
35,085,756
30,171,327
The financial statements were approved and signed by the director and authorised for issue on 13 May 2026
M Ladhar
Director
Company registration number 08776429 (England and Wales)
CROWN CARE IV LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2025
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 November 2023
6,000
6,033,590
19,363,801
25,403,391
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
4,767,936
4,767,936
Balance at 31 October 2024
6,000
6,033,590
24,131,737
30,171,327
Year ended 31 October 2025:
Profit and total comprehensive income
-
-
4,914,429
4,914,429
Balance at 31 October 2025
6,000
6,033,590
29,046,166
35,085,756
CROWN CARE IV LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
- 12 -
1
Accounting policies
Company information

Crown Care IV Limited is a private company limited by shares incorporated in England and Wales. The registered office is Earl Grey Properties, 2nd Floor, Adelphi Chambers, 20 Shakespeare Street, Newcastle Upon Tyne, NE1 6AQ.

1.1
Basis of preparation

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts 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. T he company has therefore taken advantage of e xemptions 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 Crown Care Holdings Limited. These consolidated financial statements are available from its registered office.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

A true t the time of approving the financial statements, t he director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Turnover represents care charges receivable (exempt of value added tax) which are recognised either under the terms of contract with local health authorities or under terms of short term letting agreements and is recognised on an accruals basis as those services are provided.

1.4
Tangible fixed assets

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

CROWN CARE IV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 13 -

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:

Freehold land and buildings
Not depreciated
Fixtures and fittings
15% straight line

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.

Freehold land and buildings are not depreciated as in the opinion of the directors the estimated residual value of the tangible fixed assets is not materially different from the carrying value of the asset, any depreciation thus calculated would be immaterial.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of fixed assets

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.

1.7
Cash and cash equivalents

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.

1.8
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CROWN CARE IV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

CROWN CARE IV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 15 -

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Operation of care homes
20,143,318
18,168,731
2025
2024
£
£
Other revenue
Interest income
193,741
4,404
4
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Depreciation of tangible fixed assets
251,104
255,488
CROWN CARE IV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 16 -
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,000
7,700
6
Employees

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

2025
2024
Number
Number
Directors
-
1
Management and staff
427
431
Total
427
432

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
10,247,064
9,521,512
Social security costs
1,054,750
760,913
Pension costs
151,741
140,005
11,453,555
10,422,430
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Other interest income
193,741
4,404
Income from fixed asset investments
Income from other fixed asset investments
2,330,160
1,902,281
Total income
2,523,901
1,906,685
8
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
1,112,881
726,569
CROWN CARE IV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 17 -
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
1,667,676
399,597
Adjustments in respect of prior periods
(7,374)
2,925
Total current tax
1,660,302
402,522
Deferred tax
Origination and reversal of timing differences
(20,009)
11,587
Adjustment in respect of prior periods
-
0
7,190
Total deferred tax
(20,009)
18,777
Total tax charge
1,640,293
421,299

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
6,554,722
5,189,235
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
1,638,681
1,297,309
Tax effect of expenses that are not deductible in determining taxable profit
591,526
470,682
Tax effect of income not taxable in determining taxable profit
(582,540)
(475,570)
Adjustments in respect of prior years
(7,374)
10,115
Group relief
-
0
(873,139)
Depreciation on assets not qualifying for tax allowances
-
0
(9,100)
Other permanent differences
-
0
1,002
Taxation charge for the year
1,640,293
421,299
CROWN CARE IV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 18 -
10
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 November 2024
22,694,053
3,725,571
26,419,624
Additions
-
0
145,001
145,001
At 31 October 2025
22,694,053
3,870,572
26,564,625
Depreciation and impairment
At 1 November 2024
169,974
2,795,544
2,965,518
Depreciation charged in the year
-
0
251,104
251,104
At 31 October 2025
169,974
3,046,648
3,216,622
Carrying amount
At 31 October 2025
22,524,079
823,924
23,348,003
At 31 October 2024
22,524,079
930,027
23,454,106
11
Fixed asset investments
2025
2024
Notes
£
£
Investments in subsidiaries
12
997
997
12
Subsidiaries

Details of the company's subsidiaries at 31 October 2025 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Crown Care II LLP
1
Member
99.70

Registered office addresses (all UK unless otherwise indicated):

1
C/O Earl Grey Properties Ltd, 2nd Floor Adelphi Chambers, 20 Shakespeare Street, Newcastle upon Tyne, NE1 6AQ
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
637,371
1,194,115
Corporation tax recoverable
81,997
7,298
Amounts owed by group undertakings
26,620,350
16,704,819
Prepayments and accrued income
75,036
82,733
27,414,754
17,988,965
CROWN CARE IV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 19 -
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans
16
1,060,000
10,169,875
Trade creditors
295,181
327,533
Amounts owed to group undertakings
600,000
500,000
Taxation and social security
197,365
160,334
Other creditors
2,836,873
3,101,791
Accruals and deferred income
572,883
487,970
5,562,302
14,747,503
15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Bank loans and overdrafts
16
19,610,000
5,398,213
16
Loans and overdrafts
2025
2024
£
£
Bank loans
20,670,000
15,568,088
Payable within one year
1,060,000
10,169,875
Payable after one year
19,610,000
5,398,213

The bank loans are secured by first legal charges over the company's property and by a fixed and floating charges created 6 December 2013.

Borrowings are denominated and repaid in pounds sterling, have contractual interest rates that are either fixed or variables rates linked to SONIA, are not leveraged, and do not contain conditional returns or repayment provisions other than to protect the lender against credit deterioration or changes inn relevant legislation or taxation.

CROWN CARE IV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 20 -
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Fixed asset timing differences
72,190
91,750
Short term timing differences
(4,786)
(4,337)
67,404
87,413
2025
Movements in the year:
£
Liability at 1 November 2024
87,413
Credit to profit or loss
(20,009)
Liability at 31 October 2025
67,404
18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
6,000
6,000
6,000
6,000
19
Financial commitments, guarantees and contingent liabilities

The company has guaranteed the bank loan of a fellow group company, Crown Care VII Limited, to the value of £5,000,000. The guarantee is supported by a debenture over the company's properties and fixed and floated charges.

20
Ultimate controlling party

Crown Care Holdings Limited is the immediate and ultimate parent company and is the smallest and largest group for which consolidated accounts including Crown Care IV Limited are prepared. The consolidated accounts of Crown Care Holdings Limited are available from its registered office, C/O Earl Grey Properties, 2nd Floor Adelphi Chambers, 20 Shakespeare Street, Newcastle-upon-Tyne, NE1 6AQ.

In the opinion of the directors of the company and group is controlled by the Ladhar family though no individual is available to control the company by virtue of their shareholding.

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