Company registration number SC164546 (Scotland)
THIRD LIFE CARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
THIRD LIFE CARE LIMITED
COMPANY INFORMATION
Directors
Mr M P Kilmurray
Mrs M Kilmurray
Mr J D Beaton
Mrs V A Beaton
Mr Duncan Beaton
Miss Ruth Beaton
Ms Rebecca Kilmurray
Mr Scott Kilmurray
Secretary
Mr J D Beaton
Company number
SC164546
Registered office
6th Floor, Gordon Chambers
90 Mitchell Street
Glasgow
United Kingdom
G1 3NQ
Auditor
bk plus Audit Limited
6th Floor
Gordon Chambers
90 Mitchell Street
Glasgow
Scotland
G1 3NQ
THIRD LIFE CARE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12 - 13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 35
THIRD LIFE CARE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
- 1 -

The directors present the strategic report for the year ended 31 August 2025.

Principal activities

The principal activity of the company and group continued to be that of the provision of residential care home services.

Operating review

The company’s trading performance during the year was in line with the directors’ expectations.

Turnover increased by £609k to £10,210k. Operating profit decreased by £81k to £1,516k. This was as anticipated.

Overall occupancy and profit levels continued to improve following the Covid affected preceding years. Agency bills and staff costs in general, however, also increased. This reflected the trend for much higher than inflation wage rises and a general lack of nursing staff.

Northwood House Care Home in Helensburgh is registered as a single care home for 20 residents. It has 20 bedrooms all of which have en-suite wet shower rooms. It consists of an original Victorian manse house converted and extended. The home performed well with good occupancy levels and a reasonable level of private clients producing improved average weekly rates. Grades achieved at last Care Inspectorate inspection of 17.07.2025 were 5/5/5/4/5. There were no staff recruitment or retention issues.

Westlea Care Home in Barrhead is registered as a single care home for 55 residents. It has 51 bedrooms, all of which have en-suite wet shower rooms. It is a purpose-built home completed in 2005. The improved occupation levels from the previous year were maintained. Agency bills, however, remained high, reflecting the difficulties of recruiting and retaining trained staff. The general trend, however, remains positive. The last inspection was carried on 26.11.2025 and grades achieved were 5/4/4/5/4.

Rosehall Care Home in Shotts is registered as a single care home for 64 residents. It has 64 bedrooms all of which have en-suite wet shower rooms. It is a purpose-built home, extended and upgraded in 2017. Occupation levels were consistently good. Grades achieved at the inspection of 27.02.2026 were 5/5/5/5/5. Rosehall is the only care home in Shotts, a former mining town with a population of c. 8500 excluding surrounding catchment areas. There were no significant staff recruitment or retention issues.

Craig en Goyne Care Home in Kilsyth is registered as a single care home for 48 residents. It has 48 bedrooms all of which have en-suite wet shower rooms. It consists of an original Victorian manse house, converted and enlarged in 2008 by the addition of a 41-bedroom extension. Grades achieved at the inspection of 12.12.2025 were 4/4/4/5/4. Craig en Goyne is the only care home in Kilsyth, a former mining town with a population of c. 11,000 excluding surrounding catchment areas. There were no significant staff recruitment or retention issues. Agency costs were as the previous year but are an area that could be reduced.

Gades received at Care Inspectorate inspections of the 4 homes have been exclusively “4’s” & “5’s”, where a “4” is classed as “Good” and a “5” as “Very Good”. This is a very strong performance and quality indicator.

The last of the rental properties at the former Belhaven Care Home in Airdrie has been sold. Proceeds of the sale have been used to reduce bank borrowings.

Principal risk and uncertainties

Financial Risk Management

The company monitors working capital management strictly. Financial risk management is negated due to limited exposure to credit risk and market risk.

Competitive Risk Management

The company operates in a competitive environment. The directors believe, however, that the company is well placed to continue to develop its market share. The demographics of the ageing population support future expansion. The proportion of old and very old people in West Central Scotland is increasing by 3% per annum

THIRD LIFE CARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 2 -
Key performance indicators

Financial KPI’s

The directors use Financial Key Performance Indicators to measure gross and net profit margins as well as Return on Capital Employed (ROCE), Return on Investment (ROI) and current ratios to review the company’s development and performance during the year and year end position.

The KPI’s were in line with management expectations.

Non-Financial KPI’s

Non-Financial Key Performance Indicators are also used by the directors and include statistical information relating to staff hours and service levels. The directors believe that monitoring non-financial KPI’s contributes substantially in assessing non-financial business performance which inevitably leads to increase in customer satisfaction and an increase in profitability

Future Prospects

Despite the ongoing issues with staff availability and the rising costs of labour, the company’s operations have generated healthy cash flows, and the balance sheet remains strong. The continued focus on cost management combined with the increasing profits generated at each of the company’s sites should ensure that the company continues to improve its’ performance going forward. At the time of writing, performance in all 4 homes has continued to improve in line with expectations.

On behalf of the board

Mr M P Kilmurray
Director
28 May 2026
THIRD LIFE CARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 August 2025.

Results and dividends

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

Ordinary dividends were paid amounting to £314,780. The directors do not recommend payment of a further dividend. (2024: £457,000)

 

Directors

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

Mr M P Kilmurray
Mrs M Kilmurray
Mr J D Beaton
Mrs V A Beaton
Mr Duncan Beaton
Miss Ruth Beaton
Ms Rebecca Kilmurray
Mr Scott Kilmurray
Disabled persons

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

Employee involvement

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

 

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

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Energy and carbon report

The group is not required to provide energy and carbon information under the Companies Act 2006 as it does not meet the definition of a large group.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.

THIRD LIFE CARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 4 -
On behalf of the board
Mr M P Kilmurray
Director
28 May 2026
THIRD LIFE CARE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2025
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THIRD LIFE CARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THIRD LIFE CARE LIMITED
- 6 -
Opinion

We have audited the financial statements of Third Life Care Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

THIRD LIFE CARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THIRD LIFE CARE LIMITED
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 directors are responsible for assessing the group's and 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures to respond to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following:

- The nature of the industry, control environment and business performance of the company- The requests of our enquires with management and Directors about their own identification and assessment of risks of irregularities.

- The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we consider the opportunities and incentives that may exist within the company for fraud. In common with all audits under ISAs (UK), we perform specific procedures to respond to the risk of management override.

We also obtain an understanding of the legal and regulatory environment in which the company operates, focusing on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements and those which may be fundamental to the company's ability to operate.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to The Health and Safety at Work Act, compliance with industry specific regulations regarding the care sector, and compliance with FRS 102 and the Companies Act 2006.

The audit engagement team identified the risk of management override of controls, revenue recognition and compliance with laws and regulations as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures for management override of controls performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. For revenue recognition procedures included but were not limited to testing revenue substantively, cut-off testing and testing of credit notes. For compliance with laws and regulations procedures included but were not limited to review of care inspectorate reports, review of legal fees and enquiring with management about any non compliance.

THIRD LIFE CARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THIRD LIFE CARE LIMITED
- 8 -

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 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.

 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment 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 relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose 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 group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

 

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.

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.

Andrew McAulay FCCA (Senior Statutory Auditor)
For and on behalf of bk plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
6th Floor
Gordon Chambers
90 Mitchell Street
Glasgow
G1 3NQ
Scotland
29 May 2026
THIRD LIFE CARE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
10,210,640
9,601,227
Administrative expenses
(8,702,788)
(8,018,182)
Other operating income
8,590
14,260
Operating profit
4
1,516,442
1,597,305
Interest receivable and similar income
8
12,861
18,380
Interest payable and similar expenses
9
(387,031)
(446,256)
Fair value gains and losses on investment properties
14
9,620
-
0
Profit before taxation
1,151,892
1,169,429
Tax on profit
10
(320,577)
(336,848)
Profit for the financial year
25
831,315
832,581
Profit for the financial year is all attributable to the owners of the parent company.
THIRD LIFE CARE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2025
- 10 -
2025
2024
£
£
Profit for the year
831,315
832,581
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
831,315
832,581
Total comprehensive income for the year is all attributable to the owners of the parent company.
THIRD LIFE CARE LIMITED
GROUP BALANCE SHEET
AS AT 31 AUGUST 2025
31 August 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
13
9,145,492
9,340,338
Investment property
14
104,620
95,000
9,250,112
9,435,338
Current assets
Debtors
18
804,118
549,386
Cash at bank and in hand
1,309,952
1,244,186
2,114,070
1,793,572
Creditors: amounts falling due within one year
19
(1,296,538)
(1,101,887)
Net current assets
817,532
691,685
Total assets less current liabilities
10,067,644
10,127,023
Creditors: amounts falling due after more than one year
20
(5,040,779)
(5,618,032)
Provisions for liabilities
Deferred tax liability
22
771,314
769,975
(771,314)
(769,975)
Net assets
4,255,551
3,739,016
Capital and reserves
Called up share capital
24
100
100
Capital redemption reserve
25
10
10
Profit and loss reserves
25
4,255,441
3,738,906
Total equity
4,255,551
3,739,016
The financial statements were approved by the board of directors and authorised for issue on 28 May 2026 and are signed on its behalf by:
28 May 2026
Mr M P Kilmurray
Director
Company registration number SC164546 (Scotland)
THIRD LIFE CARE LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2025
31 August 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
13
5,262,000
5,412,054
Investment property
14
104,620
95,000
Investments
15
4,505,395
4,505,395
9,872,015
10,012,449
Current assets
Debtors
18
733,931
483,904
Cash at bank and in hand
1,156,643
1,097,275
1,890,574
1,581,179
Creditors: amounts falling due within one year
19
(1,060,584)
(889,425)
Net current assets
829,990
691,754
Total assets less current liabilities
10,702,005
10,704,203
Creditors: amounts falling due after more than one year
20
(5,040,779)
(5,618,032)
Provisions for liabilities
Deferred tax liability
22
232,127
230,064
(232,127)
(230,064)
Net assets
5,429,099
4,856,107
Capital and reserves
Called up share capital
24
100
100
Capital redemption reserve
25
10
10
Profit and loss reserves
25
5,428,989
4,855,997
Total equity
5,429,099
4,856,107
THIRD LIFE CARE LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2025
31 August 2025
- 13 -

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £887,772 (2024 - £932,581 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 28 May 2026 and are signed on its behalf by:
28 May 2026
Mr M P Kilmurray
Director
Company registration number SC164546 (Scotland)
THIRD LIFE CARE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2023
100
10
3,363,325
3,363,435
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
832,581
832,581
Dividends
11
-
-
(457,000)
(457,000)
Balance at 31 August 2024
100
10
3,738,906
3,739,016
Year ended 31 August 2025:
Profit and total comprehensive income
-
-
831,315
831,315
Dividends
11
-
-
(314,780)
(314,780)
Balance at 31 August 2025
100
10
4,255,441
4,255,551
THIRD LIFE CARE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025
- 15 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2023
100
10
4,380,417
4,380,527
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
-
932,580
932,580
Dividends
11
-
-
(457,000)
(457,000)
Balance at 31 August 2024
100
10
4,855,997
4,856,107
Year ended 31 August 2025:
Profit and total comprehensive income
-
-
887,772
887,772
Dividends
11
-
-
(314,780)
(314,780)
Balance at 31 August 2025
100
10
5,428,989
5,429,099
THIRD LIFE CARE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2025
- 16 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,804,093
1,987,900
Interest paid
(387,031)
(446,256)
Income taxes paid
(391,834)
(219,338)
Net cash inflow from operating activities
1,025,228
1,322,306
Investing activities
Purchase of tangible fixed assets
(99,258)
(109,597)
Interest received
12,861
18,380
Net cash used in investing activities
(86,397)
(91,217)
Financing activities
Repayment of bank loans
(558,285)
(521,463)
Dividends paid to equity shareholders
(314,780)
(457,000)
Net cash used in financing activities
(873,065)
(978,463)
Net increase in cash and cash equivalents
65,766
252,626
Cash and cash equivalents at beginning of year
1,244,186
991,560
Cash and cash equivalents at end of year
1,309,952
1,244,186
THIRD LIFE CARE LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2025
- 17 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,142,152
1,420,094
Interest paid
(387,031)
(446,256)
Income taxes paid
(257,374)
(118,985)
Net cash inflow from operating activities
497,747
854,853
Investing activities
Purchase of tangible fixed assets
(78,044)
(90,465)
Interest received
12,730
18,270
Dividends received
500,000
450,000
Net cash generated from investing activities
434,686
377,805
Financing activities
Repayment of bank loans
(558,285)
(521,463)
Dividends paid to equity shareholders
(314,780)
(457,000)
Net cash used in financing activities
(873,065)
(978,463)
Net increase in cash and cash equivalents
59,368
254,195
Cash and cash equivalents at beginning of year
1,097,275
843,080
Cash and cash equivalents at end of year
1,156,643
1,097,275
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
- 18 -
1
Accounting policies
Company information

Third Life Care Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is .

 

The group consists of Third Life Care Limited and all of its subsidiaries.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary 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.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Third Life Care Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 August 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
- 19 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Revenue

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

 

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.6
Intangible fixed assets - goodwill

Goodwill arising on business combinations represents the excess of the consideration paid in excess of the fair value of the net assets acquired in a business combination. It is initially recognised as an asset at cost and subsequently measured at cost less accumulated amortisation. Goodwill is amortised over its useful life of five years.

Purchased goodwill, being the amount paid in connection with the acquisition of businesses in 2002,2004 and 2005 has been fully amortised.

1.7
Tangible fixed assets

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

THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
- 20 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and property
2% on a straight line basis
Plant and equipment
20% on a reducing balance basis
Fixtures and fittings
20/25% on a reducing balance basis
Computers
33% on a straight line basis

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 recognised in the profit and loss account.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
- 21 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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

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.

THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
- 22 -
Other financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.

Classification of financial liabilities

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 group after deducting all of its liabilities.

Basic financial 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.

THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
- 23 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
Taxation

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

Current tax

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

Deferred tax

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

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 if, and only if, there is 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.

THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
- 24 -
1.15
Employee benefits

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

 

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

 

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.

1.16
Retirement benefits

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

1.17
Leases
As lessee

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 leased asset are consumed.

As lessor

When the group acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the group allocates the consideration in the contract to the two elements.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2025
2024
£
£
Other revenue
Interest income
12,861
18,380
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 25 -
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging:
Depreciation of tangible fixed assets
294,104
302,189
Operating lease charges
11,759
-
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,600
11,399
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Directors
8
8
8
8
Managers
4
4
4
4
Care Staff
260
255
190
185
Total
272
267
202
197

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
6,149,706
5,693,831
4,452,174
4,126,991
Social security costs
385,964
295,541
385,964
295,541
Pension costs
432,512
348,775
432,512
348,775
6,968,182
6,338,147
5,270,650
4,771,307
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 26 -
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
29,333
36,233
Company pension contributions to defined contribution schemes
360,000
270,000
389,333
306,233
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
5,045
11,160
Other interest income
7,816
7,220
Total income
12,861
18,380
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
5,045
11,160
9
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
387,031
446,256
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
319,238
335,307
Deferred tax
Origination and reversal of timing differences
1,339
1,541
Total tax charge
320,577
336,848
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
10
Taxation
(Continued)
- 27 -

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

2025
2024
£
£
Profit before taxation
1,151,892
1,169,429
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
287,973
292,357
Effects of:
Expenses that are not deductible in determining taxable profit
1,795
988
Adjustments in respect of prior years
(10,500)
-
0
Permanent capital allowances in excess of depreciation
39,970
41,962
Deferred tax adjustments in respect of prior years
1,339
1,541
Taxation charge in the financial statements
320,577
336,848
11
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Interim paid
314,780
457,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 September 2024
942,973
Disposals
(50,000)
At 31 August 2025
892,973
Amortisation and impairment
At 1 September 2024
942,973
Disposals
(50,000)
At 31 August 2025
892,973
Carrying amount
At 31 August 2025
-
0
At 31 August 2024
-
0
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
12
Intangible fixed assets
(Continued)
- 28 -
Company
Goodwill
£
Cost
At 1 September 2024
346,383
Disposals
(50,000)
At 31 August 2025
296,383
Amortisation and impairment
At 1 September 2024
346,383
Disposals
(50,000)
At 31 August 2025
296,383
Carrying amount
At 31 August 2025
-
0
At 31 August 2024
-
0
13
Tangible fixed assets
Group
Freehold land and property
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 September 2024
11,611,668
1,110,950
1,085,639
122,949
13,931,206
Additions
-
0
20,162
63,312
15,784
99,258
At 31 August 2025
11,611,668
1,131,112
1,148,951
138,733
14,030,464
Depreciation and impairment
At 1 September 2024
2,625,400
978,676
873,310
113,482
4,590,868
Depreciation charged in the year
192,567
30,485
58,320
12,732
294,104
At 31 August 2025
2,817,967
1,009,161
931,630
126,214
4,884,972
Carrying amount
At 31 August 2025
8,793,701
121,951
217,321
12,519
9,145,492
At 31 August 2024
8,986,268
132,274
212,329
9,467
9,340,338
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
13
Tangible fixed assets
(Continued)
- 29 -
Company
Freehold land and property
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 September 2024
7,334,900
1,099,032
876,531
103,731
9,414,194
Additions
-
0
19,355
48,502
10,187
78,044
At 31 August 2025
7,334,900
1,118,387
925,033
113,918
9,492,238
Depreciation and impairment
At 1 September 2024
2,221,701
971,732
713,232
95,475
4,002,140
Depreciation charged in the year
146,698
29,331
42,360
9,709
228,098
At 31 August 2025
2,368,399
1,001,063
755,592
105,184
4,230,238
Carrying amount
At 31 August 2025
4,966,501
117,324
169,441
8,734
5,262,000
At 31 August 2024
5,113,199
127,300
163,299
8,256
5,412,054
14
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 September 2024
95,000
95,000
Net gains or losses through fair value adjustments
9,620
9,620
At 31 August 2025
104,620
104,620
15
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
4,505,395
4,505,395
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
15
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2024 and 31 August 2025
4,505,395
Carrying amount
At 31 August 2025
4,505,395
At 31 August 2024
4,505,395
16
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Chipfuse Limited
6th Floor Gordon Chambers, 90 Mitchell Street, Glasgow, G1 3NQ
Residential care provider
Ordinary
100.00
Craig-En-Goyne Care Company Limited
6th Floor Gordon Chambers, 90 Mitchell Street, Glasgow, G1 3NQ
Holding Company
Ordinary
100.00

All companies within the group have conterminous year ends

17
Financial instruments
Group
Company
2025
2024
2025
2024
£
£
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
787,280
549,386
717,093
483,904
Carrying amount of financial liabilities include:
Measured at fair value through profit or loss
- Other financial liabilities
(6,058,861)
(6,402,015)
(6,012,923)
(6,350,981)
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 31 -
18
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
519,948
350,235
518,701
336,087
Corporation tax recoverable
16,838
-
0
16,838
-
0
Amounts owed by group undertakings
-
0
-
0
38,145
25,145
Other debtors
107,085
76,479
-
0
-
0
Prepayments and accrued income
160,247
122,672
160,247
122,672
804,118
549,386
733,931
483,904
19
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
21
423,944
404,976
423,944
404,976
Trade creditors
94,898
118,148
77,767
92,228
Corporation tax payable
160,454
216,212
-
0
81,884
Other taxation and social security
118,002
83,111
88,440
60,833
Other creditors
173,927
23,772
167,595
16,755
Accruals and deferred income
325,313
255,668
302,838
232,749
1,296,538
1,101,887
1,060,584
889,425
20
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
21
5,040,779
5,618,032
5,040,779
5,618,032
21
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
5,464,723
6,023,008
5,464,723
6,023,008
Payable within one year
423,944
404,976
423,944
404,976
Payable after one year
5,040,779
5,618,032
5,040,779
5,618,032
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
21
Loans and overdrafts
(Continued)
- 32 -

The bank term loan and overdraft facilities are secured by first ranking standard securities over the Westlea and Rosehall Manor Nursing Homes, flats which were previously Belhaven nursing home, the area of ground at Northwood and Craig-En-Goyne Care Home, Tak ma DoonRoad, Kilsyth,together with a bond and floating charge over the assets of the company and group.

All companies in the group are party to a cross guarantee in respect of group loan facilities.At the year end the group cross guarantee amounted to £6m and relates to all freehold land and buildings owned by all group entities

22
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
336,527
335,188
Fair value increases on business combinations
434,787
434,787
771,314
769,975
Liabilities
Liabilities
2025
2024
Company
£
£
Accelerated capital allowances
232,127
230,064
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 September 2024
769,975
230,064
Charge to profit or loss
1,339
2,063
Liability at 31 August 2025
771,314
232,127

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
432,512
348,775

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 33 -
24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of 10p each
175
175
16
16
B Ordinary of 10p each
125
125
13
13
C Ordinary of 10p each
175
175
18
18
D Ordinary of 10p each
125
125
13
13
E Ordinary of 10p each
400
400
40
40
1,000
1,000
100
100
25
Reserves
Revaluation reserve

Profit and loss reserves include all current and prior period retained profits and losses. Included in this balance is £49,430 (2024:£41,810) of revaluation gains on freehold and investment property, less associated deferred tax liabilities, that are not distributable to shareholders.

26
Operating lease commitments
As lessee
Group
Company
2025
2024
2025
2024
£
£
£
£
Within 1 year
17,198
-
17,198
-
Years 2-5
30,096
-
30,096
-
47,294
-
47,294
-
27
Directors' transactions
Advances
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Mr J D Beaton - Directors loan
-
-
(33,188)
(33,188)
Mr M P Kilmurray - Directors loan
-
-
(33,188)
(33,188)
Mrs M Kilmurray - Directors loan
-
-
(33,188)
(33,188)
Mrs V A Beaton - Directors loan
-
-
(33,188)
(33,188)
-
(132,752)
(132,752)
28
Controlling party
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
28
Controlling party
(Continued)
- 34 -

The Kilmurray & Beaton family beneficially own 100% of the company's issued share capital. The directors therefore control the company.

29
Cash generated from group operations
2025
2024
£
£
Profit after taxation
831,315
832,581
Adjustments for:
Taxation charged
320,577
336,848
Finance costs
387,031
446,256
Investment income
(12,861)
(18,380)
Fair value gain on investment properties
(9,620)
-
0
Depreciation and impairment of tangible fixed assets
294,104
302,189
Movements in working capital:
(Increase)/decrease in debtors
(237,894)
76,842
Increase in creditors
231,441
11,564
Cash generated from operations
1,804,093
1,987,900
30
Cash generated from operations - company
2025
2024
£
£
Profit after taxation
887,772
932,580
Adjustments for:
Taxation charged
160,715
205,062
Finance costs
387,031
446,256
Investment income
(512,730)
(468,270)
Fair value gain on investment properties
(9,620)
-
0
Depreciation and impairment of tangible fixed assets
228,098
227,197
Movements in working capital:
(Increase)/decrease in debtors
(233,189)
77,746
Increase/(decrease) in creditors
234,075
(477)
Cash generated from operations
1,142,152
1,420,094
THIRD LIFE CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 35 -
31
Analysis of changes in net debt - group
1 September 2024
Cash flows
31 August 2025
£
£
£
Cash at bank and in hand
1,244,186
65,766
1,309,952
Borrowings excluding overdrafts
(6,023,008)
558,285
(5,464,723)
(4,778,822)
624,051
(4,154,771)
32
Analysis of changes in net debt - company
1 September 2024
Cash flows
31 August 2025
£
£
£
Cash at bank and in hand
1,097,275
59,368
1,156,643
Borrowings excluding overdrafts
(6,023,008)
558,285
(5,464,723)
(4,925,733)
617,653
(4,308,080)
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