REGISTERED NUMBER: 06237795 (England and Wales)

BEECHCROFT CARE HOMES LTD

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

T D Gow-Smith

J K Gow-Smith

REGISTERED OFFICE:

Holmfield

Grafton Road

Torquay

Devon

TQ1 1QJ

REGISTERED NUMBER:

06237795 (England and Wales)

AUDITORS:

WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

The directors present their strategic report of the company and the group for the year ended 31 May 2025.

REVIEW OF BUSINESS

As an established operator of 4 residential care homes for the elderly in Torquay our business focus is to grow our net revenues, with a disciplined focus on key costs, that doesn't compromise the care service that we provide. At the same time provide the essential financial underpinning required to resource properly an evolving care service.

To grow our revenues we expect to maximise occupancy and drive our weekly rates. In the period in question we increased our residential care revenues by £1,343k (+22%) as our new 4th care home got underway. All our existing care homes did increase their revenues, although the gain was only +5.4% . In the existing homes our sales of resident weeks has reached close to capacity (2024: 95% registration, 2025: 94% registration). Registration includes the challenge of selling some rooms for shared occupancy.

Taking advantage of good levels of demand our weekly revenues per resident again moved upwards from an average across the 3 existing homes.

Overall our care home revenues in the period (2025 v 2024), net of subsidies and the limited property income, grew to £7,322k (2024: £5,981k).

We continue to drive incremental revenue from some residents with local authority funded 121 support packages, although we have felt the pressure from the LAs to negotiate away these fees.

Due to our continued success in recruitment with our sponsorship license we can offer this service in house rather than outsourced to the local authority with their own agency contracts.

Our disciplined approach to staffing costs, which are of course the majority of our costs, resulted in a controlled increase year on year of +£602k (v Revenue increase of +£1,343k). The increased cost also includes the provision of a 6.7% minimum wage increase in April 2025, and 2 months of much higher NI costs due to government legislation.

We have continued our downward pressure on expensive agency staff (2025: £14k, 2024:£19k) which has improved the consistency of our staff relationships with each other and with the customers. Our annualised labour turnover is again holding steady at 12 leavers (14%). Our permanent staff numbers increased to 108 (May 2025) from 86 in May 2024 with the opening of the 4th care home.

We have been better this year with our food costs, continuing our kitchen formula to serve dual sites, serving an extra 20% more meals with the 4th care home, our cost increase on 2024 was 22%.

Our new long term utility contracts from February 2024 helped us reduce our total spend yr on yr, despite fuelling an extra home for 9 months.

Our straightforward approach continues to drive good profits, and funds the considerable investment programmes that we maintain.

PRINCIPAL RISKS AND UNCERTAINTIES

As with most care businesses the single most significant risk is always maintaining a good workforce. Despite the uncertainty over government immigration policy, we continue to recruit for the occasional vacancy from either the local population or the immigrant workers based in this country, who are looking for a new sponsor. Our ongoing license gives us this dual flexibility, and we find it difficult to foresee how any sensible work force planning in the health and social care sector can do without immigration. At the time of publication of our accounts we have received a further 15 licenses for immigrant workers so based on our current rates of labour turnover if we need to bolster local recruitment we have a healthy margin on our manpower planning for the next 12 months.

The majority of our revenues comes from local authority and NHS sources, and that brings the risk of below inflationary annual settlements. We have worked hard to protect our business from this with the ongoing increase in our productivity, as we have brought in more revenues per resident (see above) and we continue to be successful in the current year.

Nonetheless with our new care home opening in August 2024 we made a strategic decision to focus more on the self funded market, and to do this we reshaped our marketing approach. We have benefited in the past from minimal marketing costs but now we have a web site. This is still work in progress, but has helped us to a higher percentage of self funders at the new care home (40%).

KEY PERSONNEL AND ORGANISATION STRUCTURE

We have a consolidated management structure covering all 4 care homes and 3 staff houses within the group of Beechcroft Care Homes Limited. The latter wholly owns 2 further companies: Choice Retirement Home Limited and Beechcroft Home Limited.

The 2 executive directors, David and Julia Gow-Smith pool hotelkeeping skills from a focused corporate environment, with care knowledge of the elderly from a qualified social work background.

As the 2 directors have continued to reduce their working hours, the new senior management team has been put in place. Our group commercial director, who in addition to his registered manager responsibilities, runs our group reservation service, capitalising on our 4 sites clustered within 500 metres of each other, has excelled in increasing our revenues.

In the period under review we were joined by our new Area manager to oversee the registered managers, and insure CQC compliance, with the help of our Training Manager. The new 34 quality standard inspection regime proved challenging for us at our first inspection (Beechcroft July 2025), and we've had to refocus our management team on what needs to be done.

The senior management trio is made up with our Property manager, who has successfully run our property portfolio, including major projects such as Cary Lodge since 2016.

Within the homes we have a traditional organisation structure with Home manager, deputy, and seniors leading our care brigades.

DEVELOPMENTS

Located within the green conservation area of beautiful Babbacombe, and adjoining an elegant level suburban park, all our care homes share an aspirational attractiveness for the elderly and for their families looking for the ideal care location. With good CQC ratings to give our customers confidence, all have additionally benefited from attractive new extensions, but in particular we have finished the complete refurbishment of our 4th care home in Cary park, Cary Lodge, at a cost of 1.8 million.

Registered for 33 elderly our flagship care home is leading our drive to cater more for the self funded private market, and in the current period has already matched the monthly revenues of our existing homes, after only 14 months since opening.

ON BEHALF OF THE BOARD:

T D Gow-Smith - Director

28 May 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 May 2025.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of that of the running of residential care homes for the elderly.

DIVIDENDS

The total distribution of dividends for the year ended 31 May 2025 was £Nil (2024, £76,667.)

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2024 to the date of this report.

T D Gow-Smith

J K Gow-Smith

DISCLOSURE IN THE STRATEGIC REPORT

Disclosures of performance, risk assessment and future developments have been given in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

T D Gow-Smith - Director

28 May 2026

Opinion

We have audited the financial statements of Beechcroft Care Homes Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2025 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 directors' 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 group's and the parent 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Other Matters

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

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

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

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are 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 directors determine 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 directors are responsible for assessing the group's and the parent 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Objectives

The objectives of our audit in respect of fraud, are;

- to identify and assess the risks of material misstatement of the financial statements due to fraud;

- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and

- to respond appropriately to instances of fraud or suspected fraud identified during the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Audit Approach

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Housing Act 2004, Health and Social Care Act, CQC, National Minimum Wage legislation, Companies Act 2006, FRS 102, and UK taxation legislation.

- We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications.

- We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance. We used our knowledge of the company and the industry in which it operates to determine if management's explanations were consistent with our own conclusions.

- Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business.

- Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries and assessing estimates for management bias have enabled us to conclude in this area.

Some instances of non-compliance with laws and regulations were identified from the above procedures, however we have been provided evidence to support subsequent corrective measures in some cases. The directors have provided for an estimate of the potential liabilities arising from the non-compliance. Liabilities have not been provided for or disclosed in all cases of non-compliance, however in these circumstances it is appropriate as the quantum or likelihood or any liability cannot be accurately estimated, and as such the definition of a provision or contingent liability has not been met. As a result, we can conclude that the figures in the accounts are materially accurately stated.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company, to express an opinion on the consolidated financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We have communicated a number of control deficiencies to those charged with governance and have advised them of improvements that they can make to their internal control procedures to ensure that they are compliant with the various laws and regulations going forwards. Despite the control deficiencies identified, we can still conclude that the accounts are free from material misstatement. A number of the suggestions raised during the prior year's audit have been subsequently actioned by those charged with governance, indicating their commitment to improvement.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mrs Stephanie Williams (Senior Statutory Auditor)

for and on behalf of WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

29 May 2026

TURNOVER

4

7,412,995

6,056,523

Cost of sales

(3,296,521

)

(2,602,677

)

GROSS PROFIT

4,116,474

3,453,846

Administrative expenses

(1,589,266

)

(1,549,409

)

OPERATING PROFIT

7

2,527,208

1,904,437

Interest receivable and similar income

119,300

73,054

2,646,508

1,977,491

Interest payable and similar expenses

9

(60,556

)

(9,518

)

PROFIT BEFORE TAXATION

2,585,952

1,967,973

Tax on profit

10

(658,215

)

(567,135

)

PROFIT FOR THE FINANCIAL YEAR

1,927,737

1,400,838

Profit attributable to:

Owners of the parent

1,927,737

1,400,838

PROFIT FOR THE YEAR

1,927,737

1,400,838

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,927,737

1,400,838

Total comprehensive income attributable to:

Owners of the parent

1,927,737

1,400,838

FIXED ASSETS

Intangible assets

13

-

-

Tangible assets

14

10,436,965

5,159,728

Investments

15

-

-

Investment property

16

1,216,495

1,216,495

11,653,460

6,376,223

CURRENT ASSETS

Stocks

17

4,837

3,169

Debtors

18

129,229

488,299

Cash at bank

2,152,932

3,386,359

2,286,998

3,877,827

CREDITORS

Amounts falling due within one year

19

1,083,296

698,975

NET CURRENT ASSETS

1,203,702

3,178,852

TOTAL ASSETS LESS CURRENT LIABILITIES

12,857,162

9,555,075

CREDITORS

Amounts falling due after more than one year

20

(1,406,518

)

-

PROVISIONS FOR LIABILITIES

23

(292,600

)

(324,768

)

NET ASSETS

11,158,044

9,230,307

CAPITAL AND RESERVES

Called up share capital

24

100

100

Retained earnings

25

11,157,944

9,230,207

SHAREHOLDERS' FUNDS

11,158,044

9,230,307

The financial statements were approved by the Board of Directors and authorised for issue on 28 May 2026 and were signed on its behalf by:

T D Gow-Smith - Director

FIXED ASSETS

Intangible assets

13

-

-

Tangible assets

14

11,866

15,250

Investments

15

300

300

Investment property

16

1,216,495

1,216,495

1,228,661

1,232,045

CURRENT ASSETS

Debtors

18

7,090,798

4,420,740

Cash at bank

2,152,932

3,386,359

9,243,730

7,807,099

CREDITORS

Amounts falling due within one year

19

306,228

773,251

NET CURRENT ASSETS

8,937,502

7,033,848

TOTAL ASSETS LESS CURRENT LIABILITIES

10,166,163

8,265,893

PROVISIONS FOR LIABILITIES

23

56,100

70,267

NET ASSETS

10,110,063

8,195,626

CAPITAL AND RESERVES

Called up share capital

24

100

100

Retained earnings

25

10,109,963

8,195,526

SHAREHOLDERS' FUNDS

10,110,063

8,195,626

Company's profit for the financial year

1,914,437

1,385,266

The financial statements were approved by the Board of Directors and authorised for issue on 28 May 2026 and were signed on its behalf by:

T D Gow-Smith - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2023

100

7,906,036

7,906,136

Changes in equity

Dividends

-

(76,667

)

(76,667

)

Total comprehensive income

-

1,400,838

1,400,838

Balance at 31 May 2024

100

9,230,207

9,230,307

Changes in equity

Total comprehensive income

-

1,927,737

1,927,737

Balance at 31 May 2025

100

11,157,944

11,158,044

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2023

100

6,886,927

6,887,027

Changes in equity

Dividends

-

(76,667

)

(76,667

)

Total comprehensive income

-

1,385,266

1,385,266

Balance at 31 May 2024

100

8,195,526

8,195,626

Changes in equity

Total comprehensive income

-

1,914,437

1,914,437

Balance at 31 May 2025

100

10,109,963

10,110,063

Cash flows from operating activities

Cash generated from operations

1

2,721,450

2,180,882

Interest paid

(60,556

)

(9,518

)

Tax paid

(610,931

)

(117,772

)

Net cash from operating activities

2,049,963

2,053,592

Cash flows from investing activities

Purchase of tangible fixed assets

(21,206

)

(370,217

)

Interest received

119,300

73,054

Net cash from investing activities

98,094

(297,163

)

Cash flows from financing activities

Loan repayments in year

(57,161

)

-

Amount introduced by directors

60,462

24,552

Amount withdrawn by directors

(3,384,785

)

(438,470

)

Net cash from financing activities

(3,381,484

)

(413,918

)

(Decrease)/increase in cash and cash equivalents

(1,233,427

)

1,342,511

Cash and cash equivalents at beginning of year

2

3,386,359

2,043,848

Cash and cash equivalents at end of year

2

2,152,932

3,386,359

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

2025

2024

£

£

Profit before taxation

2,585,952

1,967,973

Depreciation charges

243,969

104,639

Finance costs

60,556

9,518

Finance income

(119,300

)

(73,054

)

2,771,177

2,009,076

Increase in stocks

(1,668

)

(93

)

Decrease in trade and other debtors

286

216,323

Decrease in trade and other creditors

(48,345

)

(44,424

)

Cash generated from operations

2,721,450

2,180,882

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

2,152,932

3,386,359

Year ended 31 May 2024

31.5.24

1.6.23

£

£

Cash and cash equivalents

3,386,359

2,043,848

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank

3,386,359

(1,233,427

)

2,152,932

3,386,359

(1,233,427

)

2,152,932

Debt

Debts falling due within 1 year

-

(124,864

)

(124,864

)

Debts falling due after 1 year

-

(1,406,518

)

(1,406,518

)

-

(1,531,382

)

(1,531,382

)

Total

3,386,359

(2,764,809

)

621,550

4.	MAJOR NON-CASH TRANSACTIONS

Within the year, freehold property and fittings were aquired from directors at a market value of £5,500,000. This was not physically paid, and instead was credited to the Director's current account. Mortgages held personally on these properties totalling £1,588,542 were transferred into the business and have been debited to the Director's current account.

As a result, the above fixed asset additions and associated capital introduced by directors transactions have not been recorded in the cash flow statement.

1.	STATUTORY INFORMATION

Beechcroft Care Homes Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been adopted this year and comparisons to the subsidiary companies have been made and all policies are consistently applied.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in a separate accounting policy within these financial statements.

Going concern

After considering the group's budgets and expected trading activity for the coming 12 to 24 months, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries.

Subsidiaries, joint ventures and associates are not consolidated if their influence on the Group’s asset, financial and earnings position is considered to be immaterial, either individually or in total.

Consolidation occurs once control is obtained.

All subsidiaries utilise the same accounting framework and accounting policies.

Assets and liabilities of subsidiaries are shown in the consolidated accounts at their fair value on the date of acquisition. In most cases the fair value has approximated to the book value.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below:

1) Valuation of Investment Property

As described in the notes to the financial statements, investment properties are stated at fair value based on the valuation of the directors. Although this has not been formally valued by a third party, there is an active market. The directors used observable market prices adjusted as necessary for any difference in the future plans for or condition of the specific asset. This has been reassessed and due to the stability of the market over the last year, this value has been kept consistent.

2) Impairment of care home property

The directors have assessed the value of the property as a whole and feel that the value attributed to it is far in excess of the cost value, based on future generatable profits and revenue levels. On this basis they feel no impairment is considered necessary. The property was in the process of being renovated in the prior year, and this has now been completed. Profit generation has increased in the year, supporting the absence of any impairment requirement.

3) Provisions

The directors have calculated an estimated provision associated with non compliance with laws and regulations. This has been calculated based on the expected maximum liability arising, and has then been adjusted for expected actual payments that may be required. As the total level of the liability is impacted by interpretation of the regulations this is considered to be an appropriate approach.

4) Useful economic lives of tangible assets:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover represents net invoiced residential care home fees and is recognised per night that a room is occupied.

Turnover in the parent company represents net invoiced sales regarding property management, excluding value added tax.

Turnover is deferred where amounts have been invoiced, but these relate to services to be provided in future periods.

Turnover is accrued where amounts have yet to be invoiced, but where the services have been provided in the period to date.

Tangible fixed assets

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

Tangible fixed assets are stated at costs less accumulated depreciation and accumulated impairment losses.

Freehold property - straight line over 50 years *

Land - not depreciated

Improvements to property - straight line over 49 or 50 years *

Fixtures and fittings and computer equipment - 15% on reducing balance

Motor vehicles - 25% on reducing balance

* Some assets classified as freehold property and improvements to property were deemed to have had a remaining economic useful life of 50 years from 31 May 2021 onwards. Additions from this date onwards are considered to have a useful life of 50 years.

Impairment of Assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss if recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the assets in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

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

Cash

Cash and cash equivalents comprise of cash at bank and in hand. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Investment property

Investment properties held in the accounts are rented out to third parties and are stated in the statement of financial position at their revalued amounts The valuation is reviewed annually for any uplift or impairment.

Any aggregate surplus or deficit arising from changes in fair value is recognised immediately in profit or loss and treated as an unrealised gain or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at costs less any impairment losses.