REGISTERED NUMBER: 05209947 (England and Wales)

Audited Financial Statements for the Year Ended 31 August 2025

for

Avon Lodge UK Limited

Page

Company Information

1

Statement of Financial Position

2

to

3

Notes to the Financial Statements

4

to

12

DIRECTOR:

Mr M Gunputh

SECRETARY:

Mrs D Gunputh

REGISTERED OFFICE:

33 Bridgend Road

Enfield

London

EN1 4PD

REGISTERED NUMBER:

05209947 (England and Wales)

SENIOR STATUTORY AUDITOR:

Suraj Shah BFP ACA FCCA

AUDITORS:

BBK Partnership

Chartered Accountants

& Statutory Auditors

1 Beauchamp Court

10 Victors Way

Barnet

Hertfordshire

EN5 5TZ

FIXED ASSETS

Intangible assets

4

19,045

14,292

Tangible assets

5

5,078,731

5,065,030

Investment Properties

6

1,460,240

1,460,240

6,558,016

6,539,562

CURRENT ASSETS

Stocks

7

3,127

2,924

Debtors

8

2,424,979

2,146,345

Prepayments and accrued income

20,543

16,669

Cash at bank and in hand

423,072

513,104

2,871,721

2,679,042

CREDITORS

Amounts falling due within one year

9

608,803

767,236

NET CURRENT ASSETS

2,262,918

1,911,806

TOTAL ASSETS LESS CURRENT LIABILITIES

8,820,934

8,451,368

CREDITORS

Amounts falling due after more than one year

10

(857,217

)

(834,089

)

PROVISIONS FOR LIABILITIES

13

(625,487

)

(623,329

)

NET ASSETS

7,338,230

6,993,950

CAPITAL AND RESERVES

Called up share capital

14

1,000

1,000

Retained earnings

15

7,337,230

6,992,950

SHAREHOLDERS' FUNDS

7,338,230

6,993,950

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 21 July 2026 and were signed by:

Mr M Gunputh - Director

1.	STATUTORY INFORMATION

Avon Lodge UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

Turnover and other income

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts.

Turnover represents the fee income relating to the provision of care services. Fee income comprises care home fees which are recognised when the delivery of the service is completed. Fees invoiced in advance are included in deferred income until the service is completed.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

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

Freehold property

- Over 300 years

Fixtures and fittings

- 25% on reducing balance

Motor vehicle

- 25% on reducing balance

Computer equipment

- 20% on cost

The company does not provide for depreciation on its freehold property and improvements to the property as the amounts are considered to be immaterial and will not have any influence on the financial statements.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Debtors and creditors receivable / payable within one year

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount.

Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Loans and borrowings

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.

Investment properties

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Leases

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 48 (2024 - 44 ) .

4.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 September 2024

27,285

Additions

12,762

At 31 August 2025

40,047

AMORTISATION

At 1 September 2024

12,993

Amortisation for year

8,009

At 31 August 2025

21,002

NET BOOK VALUE

At 31 August 2025

19,045

At 31 August 2024

14,292

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Freehold

to

and

property

properties

fittings

£

£

£

COST OR VALUATION

At 1 September 2024

5,000,000

24,300

361,718

Additions

-

-

21,775

Disposals

-

-

-

At 31 August 2025

5,000,000

24,300

383,493

DEPRECIATION

At 1 September 2024

-

-

326,185

Charge for year

-

-

17,288

Eliminated on disposal

-

-

-

At 31 August 2025

-

-

343,473

NET BOOK VALUE

At 31 August 2025

5,000,000

24,300

40,020

At 31 August 2024

5,000,000

24,300

35,533

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST OR VALUATION

At 1 September 2024

35,269

2,389

5,423,676

Additions

14,120

-

35,895

Disposals

(20,614

)

-

(20,614

)

At 31 August 2025

28,775

2,389

5,438,957

DEPRECIATION

At 1 September 2024

31,588

873

358,646

Charge for year

4,451

303

22,042

Eliminated on disposal

(20,462

)

-

(20,462

)

At 31 August 2025

15,577

1,176

360,226

NET BOOK VALUE

At 31 August 2025

13,198

1,213

5,078,731

At 31 August 2024

3,681

1,516

5,065,030

Cost or valuation at 31 August 2025 is represented by:

Improvements

Fixtures

Freehold

to

and

property

properties

fittings

£

£

£

Valuation in 2022

2,155,879

-

-

Cost

2,844,121

24,300

383,493

5,000,000

24,300

383,493

Motor

Computer

vehicles

equipment

Totals

£

£

£

Valuation in 2022

-

-

2,155,879

Cost

28,775

2,389

3,283,078

28,775

2,389

5,438,957

6.	INVESTMENT PROPERTIES

Total

£

FAIR VALUE

At 1 September 2024

and 31 August 2025

1,460,240

NET BOOK VALUE

At 31 August 2025

1,460,240

At 31 August 2024

1,460,240

The investment property was valued by the director who is a professionally qualified valuer and has recent experience in the location and class of investment property being revalued.

Fair value at 31 August 2025 is represented by:

£

Valuation in 2017

138,894

Valuation in 2021

81,399

Valuation in 2022

81,000

Cost

1,158,947

1,460,240

7.

STOCKS

31.8.25

31.8.24

£

£

Food and Consumables

3,127

2,924

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.25

31.8.24

£

£

Trade debtors

185,998

101,437

Other debtors

2,204,908

2,044,908

HP Interest

1,976

-

Directors' current accounts

32,097

-

2,424,979

2,146,345

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.25

31.8.24

£

£

Bank loans and overdrafts (see note 11)

98,894

289,739

Hire purchase contracts

4,138

1,908

Tax

103,438

172,331

Social security and other taxes

63,236

39,112

Other creditors

224,070

165,650

Directors' current accounts

-

1,000

Accrued expenses

115,027

97,496

608,803

767,236

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.25

31.8.24

£

£

Bank loans (see note 11)

850,665

834,089

Hire purchase contracts

6,552

-

857,217

834,089

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank Loan 51301466

-

271,397

Bank Loan 45076707

850,665

-

850,665

271,397

Repayable by instalments

Bank Loan 45054312

-

72,905

Bank Loan 47112336

-

110,274

Bank Loan 51264404

-

82,931

-

266,110

11.

LOANS

An analysis of the maturity of loans is given below:

31.8.25

31.8.24

£

£

Amounts falling due within one year or on demand:

Bank loans

98,894

289,739

Amounts falling due between two and five years:

Long Term Loan

-

296,582

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank Loan 51301466

-

271,397

Bank Loan 45076707

850,665

-

850,665

271,397

Repayable by instalments

Bank Loan 45054312

-

72,905

Bank Loan 47112336

-

110,274

Bank Loan 51264404

-

82,931

-

266,110

12.	SECURED DEBTS

The loans have been secured by National Westminster Bank Plc by registering legal charges over all of the property and undertakings of the company and also by registering fixed and floating charges including negative pledges over the following properties;

33 Bridgend Road London EN1 4PD

403 Bowes Road London N11 1AB

129 Latymer Road London N9 9PN

13.	PROVISIONS FOR LIABILITIES

31.8.25

31.8.24

£

£

Deferred tax

625,487

623,329

Deferred

tax

£

Balance at 1 September 2024

623,329

Provided during year

2,158

Balance at 31 August 2025

625,487

14.	CALLED UP SHARE CAPITAL

Number:

Class

Nominal

31.8.25

31.8.24

value:

£

£

1,000

Ordinary

£1

1,000

1,000

15.

RESERVES

Retained

earnings

£

At 1 September 2024

6,992,950

Profit for the year

344,280

At 31 August 2025

7,337,230

Included within the retained earnings of £7,337,230 is £2,457,172 considered non-distributable, representing unrealised revaluation gains on the company’s freehold property and investment property.

16.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Suraj Shah BFP ACA FCCA (Senior Statutory Auditor)

for and on behalf of BBK Partnership

17.	RELATED PARTY DISCLOSURES

Included within other debtors is £1,304,320 (2024: £1,144,320) being amounts owed by Avon Lake Holdings Limited, a company controlled by the director Mr M Gunputh. The balance is unsecured, interest-free, and repayable on demand.

Also included within other debtors is £560,179 (2024: £560,179) and £171,213 (2024: £171,213) being owed by AR Properties North London Ltd and AR Waterfalls Properties Ltd, respectively. Both companies are under the control of the director Mr M Gunputh. The balances are unsecured, interest-free, repayable on demand and no impairment has been recognised.

Included within other debtors is £13,500 (2024: £13,500) being amounts owed by Camden Lodge Residential Care Home, an entity controlled by the director Mr M Gunputh. The balance is unsecured, interest-free, and repayable on demand.

Included within other creditors is £144,901 (2024: £144,901) being amounts owed to St. Michaels Manor Ltd, a company controlled by the director Mr M Gunputh. The balance is unsecured, interest-free, and repayable on demand.

Company secretarial charges amounting to £62,324 (2024: £34,877) were paid to a connected person of the director Mr M Gunputh.

Rent amounting to £24,182 (2024: £23,000) was paid to Mr M Gunputh in respect of office premises owned directly by him.

Included within debtors is £32,097 owed by the director to the company (2024: £1,000 owed by the company to the director). The balance is unsecured, interest-free, repayable on demand. The amounts were repaid within 9 months of the period end.

The director did not receive any remuneration, pension contributions or other benefits from the company during the year ended 31 August 2025 (2024: £nil).

18.	OPERATING LEASE COMMITMENTS

Operating lease payments represent rent payable for the premises. Leases are negotiated for an average term of one year. Rents are fixed for one year with an option to extend annually at the prevailing market rate.

The operating lease commitment falling due within one year is £23,000 (2024: £23,000).