The directors present the strategic report for the year ended 31 August 2025.
Meathop Park Ltd is a holding company that holds investments in 2 portfolios for Appletree Treatment Centre, which provides Therapeutic care and education for children aged between 6 and 13 years. The children are placed with us by various local authorities over the country.
During the current year Appletree has continued to provide creative child-centred care packages for children and young people who are looked after, with an over-arching philosophy that every child has equal rights to the highest quality childcare. This focus provides each young person with a safe, supportive, trusting environment, with challenges that promote growth, responsibility, learning and positive outcomes, all of which contribute to continually high levels of referrals and growth in turnover.
A low level of staff turnover means that Appletree has a wealth of highly experienced well-trained staff enabling the children placed with us to achieve the best possible outcomes to ensure they have the skills to a better future.
Following a change in senior management and the appointment of a Registered Manager at the larger home, we kept placements lower than usual to allow for a settling-in period, resulting in lower income in 2025.
Demand for the service is high due to the age and level of needs that we treat, there are few places that only work with this age group of children with these complex needs.
Care quality risk: The Group primarily cares for high-acuity service users with complex needs. Services are delivered by a highly skilled staff team with service quality being monitored and managed daily through the implementation and operation of robust policies and procedures. Internal compliance processes and skills training programmes are supplemented by regular independent external compliance reviews on each operating site, in turn monitored by Ofsted inspections. High levels of staff engagement are delivered through proactive training, coaching and mentoring programmes throughout the business, all focused on enhancing the quality of service delivery.
Regulatory risk: The Group operates in a regulated sector, with the key regulatory body being Ofsted. The Group works closely and constructively with the regulatory body to maintain and improve its historic quality and regulatory compliance ratings, with a clear focus on regulatory compliance throughout its operational governance and people management processes.
Financial risk: The Group’s customers are exclusively Local Authorities funded in part by Central Government. Management have developed robust financial management control to allow proactive management of potential margin pressures arising from local Government funding constraints.
The Group has generated trading income of £5,238,641 (2024: £5,771,184) with an operating profit of £43,401 (2024: £662,649). After other gains and interest income the Group has generated a post tax profit of £99,413 (2024: £640,709). At the year end the Group had cash of £2,556,267 and net assets of £4,597,632.
Appletree monitors its performance using a number of measures, primarily focused on care quality and occupancy.
The directors consider that these indicators show that their prime focus on quality throughout all activities of the business is borne-out by the evidence of external regulatory inspection findings.
Occupancy levels remained strong up to the financial year end.
In May 2026, an Ofsted inspection at one of the Group's three homes resulted in an inadequate judgement. Similar concerns were subsequently raised in respect of the other two homes, resulting in compliance notices being issued and restrictions on admitting new placements. Management has since addressed the matters identified, and the first home has recently been reinspected and verbally informed that a judgement of Good is expected, although the final inspection report had not been issued at the date of approval of these financial statements.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 August 2025.
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £180,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
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.
We have audited the financial statements of Meathop Park Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise 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 and notes to the financial statements, including material 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).
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management about any known or suspected instances with non compliance with laws and regulations and fraud;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Auditing the risk of fraud in revenue by way of sales transaction testing to obtain evidence that revenue occurred and is recognised in the correct accounting period;
Auditing the risk of fraud in revenue by way of sales transaction testing to obtain evidence that revenue is complete and is recognised in the correct accounting period;
An evaluation of the risk of management override of controls and subsequent testing, including through testing journal entries and other adjustments for appropriateness;
An evaluation of the group's internal control environment; and
Reviewing board minutes and resolutions.
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 a 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.
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.
Comparatives
The group did not require an audit for the year ended 31 August 2024 and so the comparative figures were not audited.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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 £58,196 (2024 - £299,838 profit).
Meathop Park Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Meathop Park, Meathop, Grange-Over-Sands, LA11 6RF.
The group consists of Meathop Park Limited and all of its subsidiaries.
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. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Meathop Park 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.
Subsequent to the balance sheet date, but prior to the approval of these financial statements, the company's subsidiary's care homes received an inadequate Ofsted rating, resulting in a temporary pause in new placements. The directors have considered the impact of this matter as part of their going concern assessment, including the actions taken to address the matters identified and the financial resources available within the group.
The directors have reviewed forecasts covering a period of at least twelve months from the date of approval of these financial statements and are satisfied that the company and its subsidiary have sufficient cash reserves and resources to continue to meet their obligations as they fall due. The directors have also confirmed their intention to provide financial support to the subsidiary, if required. Accordingly, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future and have therefore prepared the financial statements on the going concern basis.
Revenue comprises amounts receivable in respect of residential care, educational and therapeutic services provided to children placed with the company by local authorities and other commissioning bodies.
Fees receivable are recognised as revenue in the period in which the related services are provided. Revenue is measured at the fair value of the consideration receivable, net of any discounts, rebates or allowances.
Where fees are invoiced in advance of the provision of services, the amounts received are recognised as deferred income and released to revenue over the period in which the services are delivered. Where services have been provided but not yet invoiced at the reporting date, the related income is recognised as accrued income.
Revenue is recognised only when it is probable that the economic benefits associated with the transaction will flow to the company and the amount of revenue can be measured reliably.
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.
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.
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. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.
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, 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.
Financial assets 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.
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.
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, including creditors, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 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.
The costs of short-term employee benefits are recognised as a liability and an expense. 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The Company holds an investment in a subsidiary which is carried at cost less impairment. In assessing whether any impairment is required, the directors have considered the recoverable value of the investment using a maintainable earnings approach and the application of an appropriate valuation multiple.
This assessment requires significant judgement, particularly in determining the level of maintainable earnings to be used in the valuation. The directors have concluded that the trading performance in the current year is not representative of the subsidiary's longer-term earnings capacity and have therefore placed greater reliance on historic performance and expected future trading when assessing recoverable value. Judgement is also required in determining the valuation multiple applied.
Based on this assessment, the directors are satisfied that the recoverable amount of the investment exceeds its carrying value at the reporting date and therefore no impairment has been recognised. As the investment relates to a wholly owned subsidiary, the carrying value is eliminated on consolidation and accordingly any impairment would affect only the Company financial statements and not the consolidated financial statements.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
Details of the company's subsidiaries at 31 August 2025 are as follows:
The following are the major deferred tax liabilities and assets recognised by the group and company:
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.
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.
The merger reserve arose on a group reconstruction accounted for using the merger accounting method permitted by FRS 102 Section 19. The reserve represents the difference arising on consolidation between the nominal value of shares issued and the book value of the net assets combined. There were no movements in the reserve during the year.
The merger relief reserve was created following the acquisition of subsidiary undertakings through a share-for-share exchange transaction. The transaction qualified for merger relief under sections 612-615 of the Companies Act 2006 and, consequently, the premium that would otherwise have been recognised within share premium was recorded within a separate merger relief reserve. The reserve is non-distributable and forms part of shareholders' funds.
Subsequent to the year end, the Group's subsidiary operating the residential care homes was subject to Ofsted inspections. Following these inspections, each of the subsidiary's three homes received an inadequate judgement and compliance notices were issued. As a result, the subsidiary was unable to admit new placements for a period whilst the matters identified were addressed.
The subsidiary has since implemented the actions required to achieve compliance. One of the homes has subsequently been reinspected and management has been verbally informed that a judgement of Good is expected, although the final inspection report had not been issued at the date these financial statements were approved.
The directors have considered the impact of these matters on the Group and have concluded that no adjustment to the amounts recognised in these financial statements is required.
During the year wages totalling £51,425 (2024: £57,512) were paid to close family members of the directors.