Kingsley Healthcare (Birmingham) Limited

Notes to the Financial Statements

Year Ended 30 September 2025

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Kingsley House
Clapham Road South
Lowestoft
NR32 1QS
United Kingdom

The business address is the same as the registered office address, although the entity operates a care home in Birmingham, England.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

At the year-end, the company held a cash balance of £13,246, providing a foundation for its ongoing operations. While the company reported net liabilities of £243,653 (2024: net liabilities of £535,157) and a net profit of £460,504 (2024: loss of £227,386), the figures from the prior year primarily reflect the impact of recognising a finance leased asset, which resulted in non-cash charges including interest of £402,851 and depreciation of £492,857.

Despite these accounting adjustments, the directors remain confident in the company’s financial resilience. With continued support from the parent company and their own commitment, they believe the company has sufficient working capital to meet its obligations and continue trading for the foreseeable future.

Accordingly, the financial statements have been prepared on a going concern basis, and no adjustments have been made that would be necessary if the company were unable to continue as a going concern.

Kingsley Healthcare (Birmingham) Limited

Notes to the Financial Statements

Year Ended 30 September 2025

Key accounting judgements and sources of estimation uncertainty
In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The key judgements that have a significant impact on the financial statements are described below:

Leasehold land and buildings
There is an element of judgment involved in the accounting treatment of the leasehold land and buildings. Management determined that the lease meets the definition of a finance lease under FRS 102 and should therefore be recognised in the financial statements as both an asset and a corresponding finance lease liability. In assessing the fair value of the leasehold property, and consequently the lease liability, management concluded that the present value of the minimum lease payments exceeded the fair value of the leasehold property. As a result, the fair value of the leasehold property was used as the basis for recognition in the accounts. Carrying value of leasehold land and buildings at year end is £6,953,834 (2024 - £6,527,530).

The key estimates that have a significant effect on the amounts recognised in the financial statements are described below:

Group recharges
Cost re-allocations are required in order to fairly reflect the cost of management services borne by group companies and entities under common control. These are based on judgemental estimates of the proportion of management time spent in areas of the business which are different from where the payroll cost is originally processed, and where joint contracts of employment are in place. The carrying value of amounts owed to/from group companies and entities under common control can be found in note 7 and 8.

Intercompany loan interest
The business trades as part of a group. In addition to recharges of central costs and other trading settlements, management charges are raised to reflect the cost of funding arranged at a group level. Significant balances with group and other connected parties arise, these balances are due after more than one year. The lending company charges interest on these loans using a market rate for an equivalent third party loan. The carrying value of amounts owed to/from group companies and entities under common control can be found in note 7 and 8.

Finance lease liability
The finance liability in note 9 of £8,551,202 (2024 - £7,817,690) is calculated based on discounting future minimum lease payments over the term of lease using the company's obtainable borrowing rate. A finance charge is then accounted for to unwind this discount each year.

Management are required to make estimates as to the outflow of economic benefits which will be required to settle an obligation in making provisions.

Kingsley Healthcare (Birmingham) Limited

Notes to the Financial Statements

Year Ended 30 September 2025

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of
services in the ordinary course of the Company's activities.

Income relates to monies received for the provision of care home services and is recognised on a
straight line basis over the period of residence.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Leasehold land and buildings are recognised at cost less accumulated depreciation with the cost being measured at the lower of the fair value of the asset and the present value of minimum lease payments.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold land	Not depreciated
Leasehold property	Over the life of the lease
Freehold property	2% straight line
Fixture, fitting and equipment	20% - 100% straight line

Intangible assets

Intangible assets are stated in the balance sheet at cost, less subsequent accumulated amortisation.
Costs include software development expenditure.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Kingsley Healthcare (Birmingham) Limited

Notes to the Financial Statements

Year Ended 30 September 2025

Asset class	Amortisation method and rate
Software	20% straight line

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Kingsley Healthcare (Birmingham) Limited

Notes to the Financial Statements

Year Ended 30 September 2025

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Loans with group companies and entities under common control; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for loans with group companies and entities under common control, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Loans with group companies and entities under common control are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 85 (2024 - 78).

Kingsley Healthcare (Birmingham) Limited

Notes to the Financial Statements

Year Ended 30 September 2025

4	Intangible assets

	Software  £
Cost or valuation
At 1 October 2024	1,138
Additions acquired separately	900
At 30 September 2025	2,038
Amortisation
At 1 October 2024	228
Amortisation charge	408
At 30 September 2025	636
Carrying amount
At 30 September 2025	1,402
At 30 September 2024	910

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 October 2024	7,043,651	149,147	7,192,798
Additions	760,099	53,354	813,453
Disposals	-	(18,383)	(18,383)
At 30 September 2025	7,803,750	184,118	7,987,868
Depreciation
At 1 October 2024	504,369	52,827	557,196
Charge for the year	272,096	55,207	327,303
Eliminated on disposal	-	(18,383)	(18,383)
At 30 September 2025	776,465	89,651	866,116
Carrying amount
At 30 September 2025	7,027,285	94,467	7,121,752
At 30 September 2024	6,539,282	96,320	6,635,602

Kingsley Healthcare (Birmingham) Limited

Notes to the Financial Statements

Year Ended 30 September 2025

Included within the net book value of land and buildings above is £73,451 (2024 - £11,752) in respect of freehold land and buildings and £6,953,834 (2024 - £6,527,530) in respect of long leasehold land and buildings.
 

6

Stocks

	2025 £	Unaudited 2024 £
Other inventories	3,766	3,766

7

Debtors

	Note	2025 £	Unaudited 2024 £
Trade debtors		112,069	38,822
Amounts owed by group undertakings	13	2,538,484	738,270
Prepayments		29,634	40,816
Other debtors		134,551	218,718
Accrued income		22,359	-
		2,837,097	1,036,626
Less non-current portion		(2,538,484)	(738,426)
		298,613	298,200

Details of non-current trade and other debtors

£2,538,484 (2024 - £738,270) of amounts owed by group undertakings is classified as non current.

£Nil (2024 - £156) of amounts owed from connected companies, included in other debtors, is classified as non current.

Kingsley Healthcare (Birmingham) Limited

Notes to the Financial Statements

Year Ended 30 September 2025

8

Creditors

	Note	2025 £	Unaudited 2024 £
Due within one year
Loans and borrowings	9	63,201	51,631
Trade creditors		41,555	68,496
Taxation and social security		77,898	40,608
Accruals and deferred income		463,523	144,543
Other creditors		114,337	327,499
		760,514	632,777