The director presents the strategic report for the year ended 30 April 2024.

The principal activity of the company is that of nursing home activities.

The company delivered strong revenue growth during the year, with turnover increasing by 21.5% to £4,481,155 (2023: £3,687,051). This reflects improved occupancy levels, enhanced fee income, and underlying demand for the company’s services.

The company returned to a gross profit of £620,884 (2023: £118,091 (as restated) loss of £263,270 as previously reported) representing a significant improvement year-on-year. This marks an important step in the recovery of the business despite continued cost pressures, particularly in relation to staffing.

The care sector continues to face ongoing challenges following the Covid-19 pandemic and Brexit, particularly in relation to staffing availability and cost inflation. The health, safety, and wellbeing of residents and staff remain the company’s highest priority.

Recruitment and retention remain key challenges. During the year, subcontract labour continued to be required to maintain safe staffing levels, with costs increasing modestly by 3.4% to £983,566 (2023: £951,255), reflecting stabilisation following the significant increases seen in prior periods.

The company continues to actively address these challenges through focused recruitment strategies, improved retention, and strengthened workforce planning.

During the financial year, the business made progress in stabilising operations following a period of underperformance in the prior year, although challenges remained in relation to cost control and staffing.

Subsequent to the year end, in December 2024, the director assumed a full-time operational role and initiated a comprehensive turnaround of the business. A strengthened management team has been put in place with a clear mandate to improve performance, efficiency, and quality of care.

Since this transition, a number of targeted measures have been implemented, including:

• Substantial reduction in agency staffing costs through improved recruitment, retention, and workforce planning

• Streamlining of operational processes, improving efficiency and accountability

• Strengthened financial controls, budgetary discipline, and enhanced performance monitoring

• Renewed focus on quality of care, compliance, and resident experience

These actions have driven clear and consistent month-by-month improvements in operational and financial performance since the director’s increased involvement.

Future developments

The Company operates in the residential and nursing care sector and, during the year, provided care services through three registered care homes. Subsequent to the year end, the Director made a strategic decision to rationalise the operating portfolio, resulting in the sale of Hamilton Park Nursing Home in February 2025 and Morgannwg House in June 2025. Following these disposals, Horton Cross Nursing Home remains the Company’s sole operating care home.

The Director's focus has subsequently been on improving the quality of care and the physical environment at Horton Cross, alongside maintaining compliance with regulatory requirements and operating efficiently within a challenging sector. In February 2026, Horton Cross Nursing Home was inspected by the Care Quality Commission and received an overall assessment of “Good”. This outcome reflects meaningful progress in governance, care delivery, and compliance. This improvement represents a key milestone, with further progress expected as changes continue to embed over the required period.

The business is now operating with greater stability, improved staffing structures, and stronger leadership oversight. Early trading in the current financial period is encouraging and supports a positive outlook.

The director is confident that the company is now on a clear upward trajectory and remains a viable going concern. This progress underpins ongoing discussions with stakeholders and provides a strong foundation for securing refinancing to support the next stage of growth.

Although the bank facility has not been formally renewed, Barclays Bank plc has continued to support the company throughout this period. This ongoing support reflects confidence in the business and the progress achieved.

Based on preliminary management financial information for the period to 30 April 2026, the director expects the company to return to a net profitable position, reflecting the actions taken during the year to improve operational and financial performance

The key financial performance indicators used by the business are revenue, gross margin, forecast cash resources, and EBITDA. These are complemented by operational KPIs including occupancy rates, average weekly fees, staffing metrics, and performance against customer service and regulatory standards.

Turnover increased by £794,104 from the previous financial year, reflecting improved occupancy and fee income. The return to a gross profit position represents a significant improvement in underlying performance.

Operational performance has continued to strengthen, particularly following the changes implemented post year end, with improvements in staffing stability, cost control, and regulatory compliance. These trends provide a more sustainable platform for continued growth.

Current trading for the year to date is ahead of internal expectations.

On behalf of the board

The director presents her annual report and financial statements for the year ended 30 April 2024.

The principal activity of the company continued to be that of nursing home activities.

The results for the year are set out on page 8.

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

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

Further details of the company’s strategy, outlook and likely future developments are included in the Strategic Report.

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 she 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; and

• 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 them to ensure that the financial statements comply with the Companies Act 2006. She 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.

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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

Qualified Opinion

We have audited the financial statements of Sentimental Care Ltd (the ‘company’) for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

• give a true and fair view of the state of the company’s affairs as at 30 April 2024 and of the company’s 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.

Basis for qualified opinion

We were unable to obtain sufficient appropriate audit evidence in respect of turnover of £4,481,155, which is a material item in the financial statements.

The Company derives its turnover from private client fees, local authority funding, and NHS funding.

After the year end the company disposed of two of it is operational care homes. This resulted in certain records relating to turnover being unavailable at the time of audit. In particular, certain occupancy records, individual resident contracts, and income remittances were not available and management could not provide alternative supporting evidence. In addition, during and subsequent to the financial year, there were significant changes in personnel and external accounting service providers, including those responsible for maintaining operational and financial records pertaining to the financial year.

Alternative audit procedures were applied where possible however they could not provide sufficient evidence.

As a result of these matters, we were unable to obtain sufficient appropriate audit evidence in respect of the completeness of turnover across all income streams and the occurrence of private client income. Consequently, we were unable to determine whether any adjustments might have been necessary to turnover. In addition, were any adjustment to turnover to be required, the strategic report would also need to be amended.

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.

Material uncertainty related to going concern

We draw your attention to note 1.2 to the financial statements which indicates that the company is dependent upon the support of lenders, Barclays Bank plc and its director T Ellis.

As stated in note 1.2, these events or conditions, along with other matters as set forth in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the completeness of turnover of £4,481,155 across all income streams and the occurrence of private client income. We have concluded that where the other information refers to the relevant income balances or related balances, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

• the information given in the strategic report and the director's report 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.

Except for the matter described in the basis for qualified opinion section of our report, 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 directors’ report.

Arising solely from the limitation on the scope of our work relating to income, referred to above:

• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

• adequate accounting records have not been kept.

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:

• 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

As explained more fully in the director's responsibilities statement, 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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

• We identified the laws and regulations applicable to the company through discussion with directors and our knowledge of the business;

• Performing audit work to address the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

• Assessing whether the judgements made in accounting estimates are indicative of a potential bias;

• Enquiring of management as to actual and potential litigation and claims; and

• Making enquires of management as to their knowledge of actual and suspected fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Sentimental Care Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Horton Cross Nursing Home, Horton Cross, Ilminster, Somerset, TA19 9PT.

The company's business was carried out in 3 locations, Horton Cross Nursing Home, Horton Cross, Ilminster, Somerset, TA19 9PT, Hamilton Park Nursing Home, 6 Hamilton Road, Taunton, Somerset, TA1 2EH and Morgannwg House Care Home, 2 Glamorgan Street, Brecon, LD3 7DW.

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 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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The directortrue has assessed that it is appropriate for the financial statements to be prepared on a going concern basis on the grounds that current or future sources of funding or support will be adequate for the company to continue in operational existence for the foreseeable future, noting its dependence upon the support of its main lenders, Barclays Bank plc, and its director, T Ellis and the successful outcome of refinancing the Barclays Bank plc loan.

Day to day working capital requirements are met through existing cash and banking facilities, bank loans, and from the support of its director. The company has a term loan with Barclays Bank plc that expired in February 2024 and has a variation for a 6 monthly renewal with interest only being paid.

Since the year end, and up to the date of signing, the properties and assets of Hamilton Park and Morgannwg House have been sold. The net proceeds have been utilised to repay £2.1m towards the outstanding capital of the Barclays Bank plc loan. The company is in communication with a broker to refinance the remaining capital of £1.3m.

Since the year end, and up to the date of signing, room occupancy at Horton Cross has increased and has remained stable, this has resulted in the trading losses sustained by the company being significantly lower than the reported year. The director has an expectation that the results of 2025-2026 will see the company return to profitability.

At the year end the company had in place a payment plan with HM Revenue & Customs to repay some of the arrears of PAYE. Since the year end further repayment plans have been agreed with HMRC, the repayment schedules have been adhered to, and at the date of signing these financial statements two of the payment plans had been completed. The remaining plan for Horton Cross will be repaid in full by May 2026. Payments to HM Revenue & Customs for PAYE for 2025-2026 are being paid monthly and within the normal timeframe allowed.

These actions noted above have resulted in the cash balances being maintained up to the date of signing.

The company has obtained a letter of support from the director, whereby they have provided confirmation of their intention to support the company and to provide additional working capital as required to meet any shortfalls that may arise from variances to the forecast cash flows. The level and timing of the potential cash requirements have been considered by the director, however, they acknowledge that the letter of support is not legally binding and there is no contractual certainty that the director will make available such funding. If the support of the director was required and not forthcoming, the company may not be able to raise additional funding to provide sufficient cash to enable it to meet its liabilities as they fall due.

The director is confident that the refinancing of the Barclays Bank plc loan will be successful as the value of the remaining property, Horton Cross is estimated to be 3 times the amount of the loan required. T Ellis will continue providing the financial support, from the recent and expected future trading results, the director believes that the company has adequate resources to continue in operational existence for the foreseeable future for at least the next twelve months from the date of approval of these Financial Statements.

On the basis of the above, in making assessment of going concern, the director has concluded that the conditionality of the continuing support from Barclays Bank plc, the support of the director, T Ellis, and the successful outcome of refinancing the Barclays Bank plc loan, represent material uncertainties which may cast significant doubt on the company’s ability to continue as a going concern.

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

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from contracts for the provision of professional nursing and care 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.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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:

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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, 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.

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.

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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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

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

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

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 subsequently 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 through 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.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

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.

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.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

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.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 1).

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

The unutilised tax losses carried forward at the year end amounted to £3,223,751 (2023: £1,973,037)

The freehold properties of 8 and 6 Hamilton Road, Taunton,TA1 2EH were sold in February 2025 and the freehold property of Morgannwg House, Glamorgan Street, Brecon, LD3 7DW was sold in June 2025.

Further details can be found in Note 17, Events after the reporting date.

Land and buildings with a carrying amount of £6,250,000 were revalued at 15 May 2023 by Pinders Professional & Consultancy Services Limited, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £5,086,564 (2023 - £5,086,564), being cost £5,086,564 (2023 - £5,086,564) and depreciation £Nil (2023 - £Nil).

The bank loan was due for repayment by 21 February 2024 and currently attracts interest at 2.65% above base rate.

The bank loan is secured by a fixed and floating charge over all the company’s property and a first legal charge over the company properties known as Hamilton Park Nursing Home, 6 Hamilton Road, Taunton, TA1 2EH, Horton Cross Nursing Home, Horton Cross, Ilminster, TA19 9PT and Morgannwg House, Glamorgan Street, Brecon, LD3 7DW.

In February 2025 the properties known as Hamilton Park Nursing Home, 6 Hamilton Road, Taunton, TA1 2EH and 8 Hamilton Road, Taunton, TA1 2EH together with the fixed and moveable assets were sold. A part repayment of £1,500,000 was made to Barclays Bank plc in accordance with the release letter.

In June 2025 the property known as Morgannwg House, Glamorgan Street, Brecon, LD3 7DW and the fixed and moveable assets were sold. In accordance with the release letter a further repayment of £616,949.60 was made to Barclays Bank plc.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £21,726 (2023 - £127,820) were payable to the scheme at the end of the year and are included in creditors.

The terms of the lease agreement Clause 9.6 states that the hire payments are not fixed and will increase annually on the anniversary of the hire start date. The increase will be based on the relevant index in the prior period plus 2%, but will not be less than 2%.

Following the early termination of the agreements the director negotiated a reduced settlement figure of £5,000 to be repaid over 12 months from November 2025 and further settlement figure of £27,611.45 to be repaid over 18 months from October 2025.

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

In February 2025 the freehold properties Hamilton Park Nursing Home, 6 Hamilton Road, Taunton, TA1 2EH and 8 Hamilton Road, Taunton, TA1 2EH were sold together with the fixed assets and plant & machinery for £1,650,000.

The property known as Hamilton Park Nursing Home, Taunton, TA1 2EH was valued at £1,450,000 and 6 Hamilton Road, Taunton, TA1 2EH was valued at £325,000 at 30 April 2023.

In June 2025 the freehold property Morgannwg House, Glamorgan Street, Brecon, LD3 7DW was sold together with the plant & machinery for £700,000. The property of Morgannwg House, Glamorgan Street, Brecon, LD3 7DW was valued at £900,000 at 30 April 2023.

The net proceeds were used as a part repayment against the Barclays Bank loan. (See Note 13).

The director's loan account was overdrawn by £618,116 at 30 April 2023 and was repaid in full by 28 December 2023. The director's loan has remained in credit up to the date of signing the financial statements. No interest was charged on this loan. The director has confirmed continued financial support to the company.

During the current year, it was identified that certain wages and salaries previously included within cost of sales for the year ended 30 April 2023 related to employees whose roles are administrative in nature and not directly attributable to revenue‑generating activities. Based on information available at that date, these costs did not meet the definition of cost of sales and should have been classified as administrative expenses.

As a result, the comparative figures have been restated to reclassify relevant staff costs from cost of sales to administrative expenses for the year ended 30 April 2023.

The balance of cost of sales gross wages and salaries as previously reported was £2,416,145 and, following restatement, is £2,070,385.

The balance of cost of sales social security costs as previously reported was £199,812 and, following restatement, is £166,544.

The balance of cost of sales staff pension costs as previously reported was £29,260 and, following restatement, is £26,926.

The balance of administrative gross wages and salaries as previously reported was £nil and, following restatement, is £345,760.

The balance of administrative social security costs as previously reported was £nil and, following restatement, is £33,268.

The balance of administrative staff pension costs as previously reported was £nil and, following restatement, is £2,333.

As a consequence of the reclassification, the gross loss for the year ended 30 April 2023 as previously reported of £263,270 has been restated to a gross profit of £118,091. The reclassification has no impact on profit before tax, total comprehensive income, or net assets previously reported.