LDC Group Ltd Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 12582195

LDC Group Ltd

Financial Statements

31 August 2025

LDC Group Ltd

Financial Statements

Year ended 31 August 2025

Contents	Page

Strategic report	1

Directors' report	3

Independent auditor's report to the members	5

Consolidated statement of income and retained earnings	9

Company statement of income and retained earnings	10

Consolidated statement of financial position	11

Company statement of financial position	12

Consolidated statement of cash flows	13

Notes to the financial statements	14

LDC Group Ltd

Strategic Report

Year ended 31 August 2025

The directors present their strategic report for the year ended 31 August 2025. The directors are pleased to announce the overall profit before tax for the year of £1,890,819 (2024: £1,617,314). The financial key performance indicators for the period are as follows:

	2025	2024
	£	£
Turnover	23,646,735	18,673,601
Gross profit	6,200,648	5,297,527
Gross proft margin %	26	28
Net profit margin (before tax) %	8	9

Similar to last year, turnover has risen significantly due to an increased number of people supported. Gross profit margins have reduced slightly versus the previous year, however despite inflationary pressure on costs as well as significant impact from the changes to National Insurance rates and thresholds in April 2025, net profit remains robust. In the current economic climate, the group continues to maintain healthy profit margins. The group has continued with its capital investments and remains in a stable financial position at the balance sheet date. Principal risks and uncertainties The business is subject to a number of risks which are monitored by the Board. The principal risks facing the group remains the availability of future council funding and pressures of meeting an ever increasing demand; increasing staff, food and utility costs; whilst managing the safe care of individuals with a wide range of needs and various complexity. The increase in fees awarded by Local Authorities has not kept pace with the increase in costs experienced by the group, particularly wages, which have risen significantly, across the board, driven by the mandated increase in National Minimum Wage. The Local Authorities cash position and resultant decisions on fee increase levels have the potential to reduce profitability across the social care sector in Kent. The group has carefully considered the impact of these risks and uncertainties and is taking steps to broaden the risk profile across varying local authorities and continue on a growth trajectory. There is also a liquidity risk which could be adversely affected by the late payment of trade debts or a claim against the group. To mitigate the risks the Board regularly monitors the cash position and care requirements. The group's finances are supervised at Board level. Its financial instruments comprise cash, trade debtors, trade creditors, mortgages, hire purchase and finance leases which arise from its trade. The group depends on key personnel and staff and to mitigate the risks of retention issues the group provides training and reward schemes. It is the policy of the Board to settle trade and other debts within the terms agreed. Future developments The directors are committed to continue investing in the growth and evolution of the business including the acquisition of further supported living locations where financially viable. This includes expanding our geographical foot print into other areas of Kent. Assessment of conflict in Ukraine The directors have considered the impact of the events in Ukraine with particular reference to how this may disrupt their business model, strategy and operations. It is noted that the group has no dealings with either Ukraine or any nation or individual currently experiencing sanctions as a result of the events in Ukraine. The directors have liaised with suppliers and customers and similarly they have no dealings that will impact the company's supply chain or recoverability of debt and credit. It is is is clear that there is a worldwide impact on the cost of particular goods, to include fuel, which in turn has increased the base costs of consumables in the business. The directors have calculated the effect and believe that this will not significantly impact the ability to trade or going concern.

This report was approved by the board of directors on 29 May 2026 and signed on behalf of the board by:

D D Marsh

Director

Registered office:

109 Barton Road

Dover

Kent

CT16 2LX

LDC Group Ltd

Directors' Report

Year ended 31 August 2025

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

Principal activities

The principal activity of the group during the year was the provision of care for adults with learning disabilities in our residential care homes or in a supported living environment in the East Kent area.

Directors

The directors who served the company during the year were as follows:

A D Marsh
L E Bywater
D D Marsh
J P Marsh	(Resigned 26 December 2024)

Dividends

Particulars of recommended dividends are detailed in note 13 to the financial statements.

Employment of disabled persons

It is the policy of the group that applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of employees becoming disabled all reasonable effort is made to ensure that their employment within the group continues. It is the policy of the group that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of an able-bodied person.

Employee involvement

During the year, the policy of providing employees with information about the group has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the group's performance. Regular meetings are held between management and employees to allow a free flow of information and ideas.

Disclosure of information in the strategic report

The directors have chosen to incorporate their assessment of the performance of the business, future developments, and the principal risks and uncertainties facing the company in the Strategic Report.

Directors' responsibilities statement

The directors are responsible for preparing the directors' report 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 profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 group will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 29 May 2026 and signed on behalf of the board by:

D D Marsh

Director

Registered office:

109 Barton Road

Dover

Kent

CT16 2LX

LDC Group Ltd

Independent Auditor's Report to the Members of LDC Group Ltd

Year ended 31 August 2025

Opinion

We have audited the financial statements of LDC Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes, 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 FRS 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's affairs as at 31 August 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; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 or 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 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:

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

- the strategic report and the directors' report 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 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: - 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 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 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.

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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We 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 responsive 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 have considered; the nature of the industry, control environment and business performance. We also consider the results of our enquiries of management and the finance team, relating to their own identification and assessment of the risks of irregularities and possible related fraud. This includes asking questions and reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness. Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end and posting of unusual journals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit. Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 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 group'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 group's or the parent 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 group or the parent 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. 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alexander Baker

(Senior Statutory Auditor)

For and on behalf of

Burgess Hodgson Audit Limited

Chartered accountants & statutory auditor

Camburgh House

27 New Dover Road

Canterbury

Kent

CT1 3DN

29 May 2026

LDC Group Ltd

Consolidated Statement of Income and Retained Earnings

Year ended 31 August 2025

		2025	2024
Note		£	£
Turnover	4	23,646,735	18,673,601

Cost of sales	17,446,087	13,376,074
	-------------	-------------
Gross profit	6,200,648	5,297,527

Administrative expenses		4,830,802	3,998,337
Other operating income	5	574,179	402,588
		------------	------------
Operating profit	6	1,944,025	1,701,778

Other interest receivable and similar income	10	32,945	20,179
Interest payable and similar expenses	11	86,151	104,643
		------------	------------
Profit before taxation		1,890,819	1,617,314

Tax on profit	12	473,974	389,245
		------------	------------
Profit for the financial year and total comprehensive income		1,416,845	1,228,069
		------------	------------

Dividends paid and payable	13	( 1,385,000)	( 1,030,000)

Retained earnings at the start of the year	5,670,568	5,472,499
	------------	------------
Retained earnings at the end of the year	5,702,413	5,670,568
	------------	------------

All the activities of the group are from continuing operations.

LDC Group Ltd

Company Statement of Income and Retained Earnings

Year ended 31 August 2025

		2025	2024
Note		£	£
Profit for the financial year and total comprehensive income		1,402,334	1,208,602
Dividends paid and payable	13	( 1,385,000)	( 1,030,000)

Retained earnings at the start of the year	3,085,131	2,906,529
	------------	------------
Retained earnings at the end of the year	3,102,465	3,085,131
	------------	------------

LDC Group Ltd

Consolidated Statement of Financial Position

31 August 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	14	5,108,822	5,002,300

Current assets

Debtors	16	3,069,590	1,833,549
Cash at bank and in hand		2,317,908	3,237,374
		------------	------------
		5,387,498	5,070,923

Creditors: amounts falling due within one year	17	4,216,074	3,544,356
		------------	------------
Net current assets		1,171,424	1,526,567
		------------	------------
Total assets less current liabilities		6,280,246	6,528,867

Creditors: amounts falling due after more than one year	18	640,230	913,487

Provisions	20	( 65,409)	( 58,200)
		------------	------------
Net assets		5,705,425	5,673,580
		------------	------------

Capital and reserves

Called up share capital	24	3,012	3,012
Profit and loss account	25	5,702,413	5,670,568
		------------	------------
Shareholders funds		5,705,425	5,673,580
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 29 May 2026 , and are signed on behalf of the board by:

D D Marsh

Director

Company registration number: 12582195

LDC Group Ltd

Company Statement of Financial Position

31 August 2025

	2025	2024
Note	£	£

Fixed assets

Investments	15	3,018	3,018

Current assets

Debtors	16	5,308,693	3,569,351
Cash at bank and in hand		867,741	1,071,796
		------------	------------
		6,176,434	4,641,147

Creditors: amounts falling due within one year	17	3,073,975	1,556,022
		------------	------------
Net current assets		3,102,459	3,085,125
		------------	------------
Total assets less current liabilities		3,105,477	3,088,143
		------------	------------
Net assets		3,105,477	3,088,143
		------------	------------

Capital and reserves

Called up share capital	24	3,012	3,012
Profit and loss account	25	3,102,465	3,085,131
		------------	------------
Shareholders funds		3,105,477	3,088,143
		------------	------------

The profit for the financial year of the parent company was £ 1,402,334 (2024: £ 1,208,602 ).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 29 May 2026 , and are signed on behalf of the board by:

D D Marsh

Director

Company registration number: 12582195

LDC Group Ltd

Consolidated Statement of Cash Flows

Year ended 31 August 2025

	2025	2024
	£	£

Cash flows from operating activities

Profit for the financial year	1,416,845	1,228,069

Adjustments for:
Depreciation of tangible assets	220,015	223,320
Other interest receivable and similar income	( 32,945)	( 20,179)
Interest payable and similar expenses	86,151	104,643
Loss/(gains) on disposal of tangible assets	63,699	( 4,228)
Tax on profit	473,974	389,245
Accrued income	( 131,080)	( 34,091)

Changes in:
Trade and other debtors	( 1,236,041)	( 331,571)
Trade and other creditors	784,315	338,896
	------------	------------
Cash generated from operations	1,644,933	1,894,104

Interest paid	( 86,151)	( 104,643)
Interest received	32,945	20,179
Tax paid	( 457,750)	( 418,911)
	------------	------------
Net cash from operating activities	1,133,977	1,390,729
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 482,751)	( 426,670)
Proceeds from sale of tangible assets	92,515	102,185
	------------	------------
Net cash used in investing activities	( 390,236)	( 324,485)
	------------	------------

Cash flows from financing activities

Repayment of borrowings	( 201,671)	( 132,056)
Repayment of finance lease liabilities	( 76,536)	( 107,711)
Dividends paid	( 1,385,000)	( 1,030,000)
	------------	------------
Net cash used in financing activities	( 1,663,207)	( 1,269,767)
	------------	------------

Net decrease in cash and cash equivalents	( 919,466)	( 203,523)
Cash and cash equivalents at beginning of year	3,237,374	3,440,897
	------------	------------
Cash and cash equivalents at end of year	2,317,908	3,237,374
	------------	------------

LDC Group Ltd

Notes to the Financial Statements

Year ended 31 August 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 109 Barton Road, Dover, Kent, CT16 2LX.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. The financial information has been prepared using merger accounting following a reorganisation of the group and the results of the company and its wholly-owned subsidiaries for the period from 1 September 2019 have been consolidated and included in these financial statements. All intragroup transactions, balances, income and expenses are eliminated.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102: (a) Disclosures in respect of financial instruments have not been presented.

Consolidation

The financial statements consolidate the financial statements of the Group and all of its subsidiary undertakings. The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not included its individual statement of comprehensive income.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: (i) Purchase recognition - Directors recognise the purchases when significant risks and rewards of ownership are passed to them as buyer. They consider this has taken place on delivery and therefore record all deliveries not yet invoiced as accruals at the year end. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: (i) Bad debt - Directors have included bad debt provisions for items which have not yet been paid. (ii) Useful economic life of fixed and intangible assets - The annual depreciation and amortisation charges are based upon management's assessment of the useful economic lives and residual values of the group's tangible assets. These are re-assessed annually and amended where necessary. (iii) The Directors include a provision for liabilities where they are considered probable.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for care services provided during the year. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. Lease income is recognised in profit or loss on a straight line basis over the lease term.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	50 years straight line
Plant and machinery	-	25% straight line
Fixtures and fittings	-	25% reducing balance
Motor vehicles	-	25% reducing balance
Equipment	-	25% reducing balance

The value of land within freehold property is considered to be trivial, therefore the value of additions is depreciated in full.

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Rendering of services	23,646,735	18,673,601
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5. Other operating income

	2025	2024
	£	£
Rental income	562,208	462,889
Other operating income	11,971	( 60,301)
	---------	---------
	574,179	402,588
	---------	---------

6. Operating profit/(loss)

Operating profit or loss is stated after charging/crediting:

	2025	2024
	£	£
Depreciation of tangible assets	220,015	223,320
Loss/(gains) on disposal of tangible assets	63,699	( 4,228)
Impairment of trade debtors	46,153	27,944
	---------	---------

7. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	36,739	27,840
	--------	--------

8. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Administrative staff	51	46
Management staff	3	4
Number of care staff	489	431
	----	----
	543	481
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	17,160,554	13,539,302
Social security costs	1,828,058	1,275,557
Other pension costs	267,738	375,054
	-------------	-------------
	19,256,350	15,189,913
	-------------	-------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	177,369	154,678
Company contributions to defined contribution pension plans	1,692	140,954
	---------	---------
	179,061	295,632
	---------	---------

The number of directors who accrued benefits under company pension plans was as follows:

	2025	2024
	No.	No.
Defined contribution plans	2	2
	----	----

10. Other interest receivable and similar income

	2025	2024
	£	£
Interest on cash and cash equivalents	30,496	19,324
Other interest receivable and similar income	2,449	855
	--------	--------
	32,945	20,179
	--------	--------

11. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	26,436	32,345
Interest on obligations under finance leases and hire purchase contracts	11,403	24,121
Other interest payable and similar charges	48,312	48,177
	--------	---------
	86,151	104,643
	--------	---------

12. Tax on profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense/(income)	486,687	440,372
Adjustments in respect of prior periods	( 5,504)	–
	---------	---------
Total current tax	481,183	440,372
	---------	---------

Deferred tax:

Origination and reversal of timing differences	( 7,209)	( 51,127)
	---------	---------
Tax on profit	473,974	389,245
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2024: lower than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit on ordinary activities before taxation	1,890,819	1,617,314
	------------	------------
Profit on ordinary activities by rate of tax	471,863	403,903
Adjustment to tax charge in respect of prior periods	( 5,504)	–
Effect of expenses not deductible for tax purposes	9,777	( 5,378)
Effect of capital allowances and depreciation	5,047	41,847
Deferred tax	( 7,209)	( 51,127)
	------------	------------
Tax on profit	473,974	389,245
	------------	------------

13. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2025	2024
	£	£
'A' Ordinary	285,000	174,000
'B' Ordinary	550,000	407,500
'C' Ordinary	550,000	448,500
	------------	------------
	1,385,000	1,030,000
	------------	------------

14. Tangible assets

Group	Freehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£	£
Cost
At 1 Sep 2024	5,520,786	2,199	104,202	425,733	115,500	6,168,420
Additions	215,264	–	80,300	173,969	13,218	482,751
Disposals	–	–	–	( 214,148)	( 25,180)	( 239,328)
	------------	-------	---------	---------	---------	------------
At 31 Aug 2025	5,736,050	2,199	184,502	385,554	103,538	6,411,843
	------------	-------	---------	---------	---------	------------
Depreciation
At 1 Sep 2024	865,528	2,199	61,149	171,309	65,935	1,166,120
Charge for the year	112,200	–	22,510	70,522	14,783	220,015
Disposals	–	–	–	( 68,091)	( 15,023)	( 83,114)
	------------	-------	---------	---------	---------	------------
At 31 Aug 2025	977,728	2,199	83,659	173,740	65,695	1,303,021
	------------	-------	---------	---------	---------	------------
Carrying amount
At 31 Aug 2025	4,758,322	–	100,843	211,814	37,843	5,108,822
	------------	-------	---------	---------	---------	------------
At 31 Aug 2024	4,655,258	–	43,053	254,424	49,565	5,002,300
	------------	-------	---------	---------	---------	------------

The company has no tangible assets.

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

Group	Motor vehicles
	£
At 31 August 2025	83,598
	--------
At 31 August 2024	223,516
	---------

15. Investments

The group has no investments.

Company	Shares in group undertakings
	£
Cost
At 1 September 2024 and 31 August 2025	3,018
	-------
Impairment
At 1 September 2024 and 31 August 2025	–
	-------

Carrying amount
At 1 September 2024 and 31 August 2025	3,018
	-------
At 31 August 2024	3,018
	-------

Subsidiaries, associates and other investments

Details of the investments in which the parent company has an interest of 20% or more are as follows:

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
LDC Care Company Ltd	109 Barton Road, Dover, Kent, CT16 2LX	'A' Ordinary	33.333
		'B' Ordinary	33.333
		'C' Ordinary	33.333
LDC Care Property Co Ltd	109 Barton Road, Dover, Kent, CT16 2LX	'A' Ordinary	33.333
		'B' Ordinary	33.333
		'C' Ordinary	33.333
LDC Care Rental Co Ltd	109 Barton Road, Dover, Kent, CT16 2LX	'A' Ordinary	33.333
		'B' Ordinary	33.333
		'C' Ordinary	33.333
LDC Care Medway Ltd	109 Barton Road, Dover, Kent, CT16 2LX	Ordinary	100

16. Debtors

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Trade debtors	870,173	365,735	–	300
Amounts owed by group undertakings	–	–	3,909,051	3,569,051
Prepayments and accrued income	795,999	1,192,175	–	–
Directors loan account	1,399,642	–	1,399,642	–
Other debtors	3,776	275,639	–	–
	------------	------------	------------	------------
	3,069,590	1,833,549	5,308,693	3,569,351
	------------	------------	------------	------------

17. Creditors: amounts falling due within one year

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Bank loans and overdrafts	207,754	201,745	–	–
Trade creditors	105,893	131,375	199	–
Amounts owed to group undertakings	–	–	2,229,647	1,028,817
Accruals and deferred income	921,598	1,052,678	41,506	39,303
Corporation tax	239,581	216,148	3,361	–
Social security and other taxes	474,357	333,540	–	–
Obligations under finance leases and hire purchase contracts	11,325	22,284	–	–
Director loan accounts	799,262	487,902	799,262	487,902
Other creditors	1,456,304	1,098,684	–	–
	------------	------------	------------	------------
	4,216,074	3,544,356	3,073,975	1,556,022
	------------	------------	------------	------------

Included in creditors falling due within one year is £11,325 (2024: £22,284) in relation to assets held under hire purchase. These agreements are secured upon the assets to which they relate. Included within creditors due within one year is £207,754 (2024: £201,745) secured by means of a fixed charge over a group company's freehold property together with all fixtures, fixed plant and machinery and book and other debts; there is also a floating charge over all moveable plant and machinery, implements, utensils, furniture and equipment by way of assignment, the goodwill and all licences and guarantees of the business.

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

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Bank loans and overdrafts	584,542	792,222	–	–
Obligations under finance leases and hire purchase contracts	55,688	121,265	–	–
	---------	---------	----	----
	640,230	913,487	–	–
	---------	---------	----	----

At the year end date, the group has one loan which has a total amount outstanding of £792,296 (2024: £993,967). The loan is repayable over the period until 2029. The interest on the loan during the year was at a fixed interest rate at 2.93% per annum.

Included within creditors due after one year is £584,542 (2024: £792,222) secured by means of a fixed charge over a group company's freehold property together with all fixtures, fixed plant and machinery and book and other debts; there is also a floating charge over all moveable plant and machinery, implements, utensils, furniture and equipment by way of assignment, the goodwill and all licences and guarantees of the business.

19. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Not later than 1 year	11,325	22,284	–	–
Later than 1 year and not later than 5 years	55,688	121,265	–	–
	--------	---------	----	----
	67,013	143,549	–	–
	--------	---------	----	----

20. Provisions

Group	Deferred tax (note 21)
	£
At 1 September 2024	( 58,200)
Additions	( 7,209)
	--------
At 31 August 2025	( 65,409)
	--------

The company does not have any provisions.

21. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Included in provisions (note 20)	( 65,409)	( 58,200)	–	–
	--------	--------	----	----

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Timing differences on capital allowances	( 65,409)	( 58,200)	–	–
	--------	--------	----	----

22. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 267,738 (2024: £ 235,054 ).

23. Financial instruments

The carrying amount for each category of financial instrument is as follows: Financial assets that are debt instruments measured at amortised cost

	2025	2020
	£	£
Trade debtors	681,963	973,831
Other debtors	9,002	13,559
	---------	---------
	690,965	987,390
	---------	---------

Financial liabilities measured at amortised cost

	2025	2024
	£	£
Bank loans and overdrafts	1,564,614	1,326,500
Trade creditors	66,707	29,509
Obligations under finance leases and hire purchase contracts	129,152	158,780
Director loan accounts	498,615	541,257
Other creditors	603,282	558,599
	------------	------------
	2,862,370	2,614,645
	------------	------------

24. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
'A' ORDINARY shares of £ 1 each	1,004	1,004	1,004	1,004
'B' ORDINARY shares of £ 1 each	1,004	1,004	1,004	1,004
'C' ORDINARY shares of £ 1 each	1,004	1,004	1,004	1,004
	-------	-------	-------	-------
	3,012	3,012	3,012	3,012
	-------	-------	-------	-------

25. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

26. Analysis of changes in net debt

	At 1 Sep 2024	Cash flows	At 31 Aug 2025
	£	£	£
Cash at bank and in hand	3,237,374	(919,466)	2,317,908
Debt due within one year	(711,931)	(306,410)	(1,018,341)
Debt due after one year	(913,487)	273,257	(640,230)
	------------	---------	------------
	1,611,956	( 952,619)	659,337
	------------	---------	------------

LDC Group Ltd

Notes to the Financial Statements (continued)

Year ended 31 August 2025

27. Operating leases

As lessee

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

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Not later than 1 year	372,903	190,092	–	–
Later than 1 year and not later than 5 years	852,175	248,973	–	–
Later than 5 years	913,174	–	–	–
	------------	---------	----	----
	2,138,252	439,065	–	–
	------------	---------	----	----

As lessor

The total future minimum lease payments receivable under non-cancellable operating leases are as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Not later than 1 year	17,000	–	–	–
	--------	----	----	----

28. Related party transactions

Company

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the group was £294,073 (2024: £297,925). At the year end date, the group owed directors £799,262 (2024: £487,902) and a director owed £1,399,642 (2024: £nil) to the group. Dividends of £1,385,000 (2024: £1,030,000) were paid to the directors during the year.

29. Controlling party

No one individual controls the company by virtue of their shareholding.