Company No: 07877705 (England and Wales)

Contents

• Company Information
• Balance Sheet
• Notes to the Financial Statements

DIRECTOR

K A Kumah

REGISTERED OFFICE	20c Selsdon Road
	Croydon
	South Croydon
	CR2 6PA
	United Kingdom

COMPANY NUMBER

07877705 (England and Wales)

ACCOUNTANT	S&W Partners (Thames Valley) Limited
	22 Wycombe End
	Beaconsfield
	Buckinghamshire
	HP9 1NB

	Note	2025		2024
		£		£
Fixed assets
Tangible assets	4, 5	377,754		3,732
		377,754		3,732
Current assets
Debtors	6	252,362		153,586
Cash at bank and in hand		913		8,910
		253,275		162,496
Creditors: amounts falling due within one year	7	( 269,188)		( 122,075)
Net current (liabilities)/assets		(15,913)		40,421
Total assets less current liabilities		361,841		44,153
Creditors: amounts falling due after more than one year	8	( 345,718)		0
Net assets		16,123		44,153
Capital and reserves
Called-up share capital	10	100		100
Profit and loss account		16,023		44,053
Total shareholder's funds		16,123		44,153

For the financial year ending 31 December 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of CTK Residential Care Homes 2 Ltd (registered number: 07877705) were approved and authorised for issue by the Director on 24 April 2026. They were signed on its behalf by:

K A Kumah Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

CTK Residential Care Homes 2 Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 20c Selsdon Road, Croydon, South Croydon, CR2 6PA, United Kingdom.

Accounting convention

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, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Going concern

The director has assessed all available information for the foreseeable future, being a period of at least twelve months from the date of approval. The director has a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Change in accounting policies

The company has early adopted FRS 102 periodic review amendments 2024 with effect from 1 January 2025 with the amendments being applied retrospectively subject to exceptions set out in the standard. In accordance with the transitional provisions of the standard, comparatives have not been restated. The accounting policies for Leases and Revenue have been impacted as a result of the adoption of FRS 102 (2024). See Leases and Revenue accounting policies to understand the revised accounting policies.

Turnover

Revenue from contracts with customers:
There is no material financial impact on the revenue of the company resulting from the application of the revised revenue accounting policy on the adoption of the FRS 102 Periodic Review Amendments 2024. The point of revenue recognition for care home services has continued to remain the same under the new accounting policies.

Revenue from care home services is recognised over time, as residents receive and consume the benefits of the services as they are provided, consistent with the revised FRS 102 requirements that revenue is recognised when (or as) a performance obligation is satisfied.

Revenue is measured at the agreed fee for the provision of residential and care services, net of VAT (if applicable). Fees are typically billed monthly, and the company acts as principal in providing all care services.
Contracts do not include significant financing components or material variable consideration.

Employee benefits

Short term 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.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery etc.

7 years straight line

Leases and right of use assets

The revised FRS 102 Section 20 Leases changes how the company recognises leases which were previously classified as operating leases. With the exception of short-term leases and leases for low-value assets, the company now recognises right-of-use assets and lease liabilities on the balance sheet. initially measured at the present value of the future lease payments. The depreciation of the right-of-use asset and interest charges on the outstanding lease liability replace the straight-line rental expense previously booked to operating costs.

Right-of-use assets will be tested for impairment in accordance with Section 27 Impairment of Assets. This replaces the previous requirement to recognise a provision for onerous lease contracts. The company is not a party to any leases where it acts as a lessor, but it does contract as a lessee for office buildings.

At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The lease liability is initially measured at the present value of future lease payments due over the lease term, discounted at the rate implicit in the lease or, if not readily determinable, the Company's incremental borrowing rate. Lease payments include fixed payments, variable lease payments that depend on an index or a tax and amounts reasonably expected to be payable over the life of the lease.

The right of use asset is initially measured at the initial amount of the lease liability and is adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle or restore the underlying asset, less any lease incentives received.

The lease liability is subsequently measured at amortised cost using the effective interest method, with an interest expense recognised in the profit or loss.

After initial recognition, the right of use asset is depreciated on a straight line basis over the shorter of the asset's useful life or the lease term. The right of use assets are subject to impairment reviews in accordance with the Company's policy on the impairment of non financial assets.

It is remeasured when there is a change in future lease payments arising from a change in an index or rate, or if the Company changes its assessment of whether it will exercise a purchase, extension, or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right of use asset. In any case an equivalent adjustment is made to the carrying value of the right of use asset, with the revised carrying amount being amortised over the remaining (revised) lease term. If the carrying amount of the right of use asset is adjusted to zero, any further reduction is recognised in the profit or loss.

Financial instruments

The company has elected to apply the provisions of Section 11” Basic Financial Instruments” 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.

Basic financial assets
Short term debtors are measured at transaction price less any provision for impairment. Loans receivables are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.

Basic financial liabilities
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.

Retirement benefits

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

Transition Impact

The company has reviewed the effects of adopting the revised FRS 102 amendments on transition. No material adjustments were required for areas other than leases, and no restatement of comparative figures has been made. The changes to lease accounting were significant; however, the company has applied the revised lessee accounting requirements prospectively, as permitted under the transition provisions of the amendments. As a result, right‑of‑use assets and lease liabilities have been recognised from the date of adoption, with no adjustment to comparative information.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, the director is required to make judgements that have a significant impact on the amounts recognised. The following are the critical judgements that the director has made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Revenue recognition — care home services
Management has exercised judgement in determining that revenue from residential and care services should be recognised over time, as residents simultaneously receive and consume the benefits of these services as they are provided. This conclusion is based on the nature of the continuous care and support delivered throughout each day and is consistent with the revised FRS 102 revenue requirements.

Going concern
In assessing the company’s ability to continue as a going concern, management has considered forecast cash flows, occupancy levels, cost pressures, and funding arrangements for a period of at least twelve months from the date of approval of these financial statements. Management concluded that the going concern basis of preparation remains appropriate.

3. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	14		14

4. Tangible assets

	Plant and machinery etc.		Total
	£		£
Cost
At 01 January 2025	25,637		25,637
At 31 December 2025	25,637		25,637
Accumulated depreciation
At 01 January 2025	21,905		21,905
Charge for the financial year	927		927
At 31 December 2025	22,832		22,832
Net book value
At 31 December 2025	2,805		2,805
At 31 December 2024	3,732		3,732

5. Right of use assets

	Land and buildings		Total
	£		£
Cost
At 01 January 2025	0		0
Additions	435,139		435,139
At 31 December 2025	435,139		435,139
Accumulated depreciation
At 01 January 2025	0		0
Charge for the financial year	60,190		60,190
At 31 December 2025	60,190		60,190
Net book value
At 31 December 2025	374,949		374,949

The right-of-use assets are included in the Tangible fixed assets on the balance sheet.

6. Debtors

	2025		2024
	£		£
Trade debtors	36,713		31,679
Other debtors	215,649		121,907
	252,362		153,586

7. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank loans and overdrafts	17,153		( 979)
Trade creditors	31,631		16,550
Taxation and social security	92,640		57,823
Lease liabilities (note 9)	57,072		0
Obligations under finance leases and hire purchase contracts	4,400		0
Other creditors	66,292		48,681
	269,188		122,075

8. Creditors: amounts falling due after more than one year

	2025		2024
	£		£
Lease liabilities (note 9)	331,051		0
Obligations under finance leases and hire purchase contracts (secured)	14,667		0
	345,718		0

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	2025		2024
	£		£
Lease liabilities	53,307		0

9. Lease liabilities

	2025		2024
	£		£
Lease liabilities due within 1 year	57,072		0
Lease liabilities due after 1 year	331,051		0
	388,123		0

The lease liabilities are included in the creditors due within 1 year and creditors due after 1 year on the balance sheet.

10. Called-up share capital

	2025		2024
	£		£
Allotted, called-up and fully-paid
100 Ordinary shares of £ 1.00 each	100		100

11. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2025		2024
	£		£
within one year	0		6,250