REGISTERED NUMBER: 05453744 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements for the Year Ended 31 December 2025

for

Church Farm Nursing Home Limited Group

Page

Company Information

1

Group Strategic Report

2

Report of the Director

6

Report of the Independent Auditors

8

Consolidated Income Statement

12

Consolidated Other Comprehensive Income

13

Consolidated Balance Sheet

14

Company Balance Sheet

15

Consolidated Statement of Changes in Equity

17

Company Statement of Changes in Equity

18

Consolidated Cash Flow Statement

19

Notes to the Consolidated Cash Flow Statement

20

Notes to the Consolidated Financial Statements

22

DIRECTOR:

P Atkinson

SECRETARY:

L Atkinson

REGISTERED OFFICE:

Church Lane

Cotgrave

Nottingham

NG12 3HR

REGISTERED NUMBER:

05453744 (England and Wales)

AUDITORS:

Samantha Allan

3 Holloway Close

East Bridgford

Nottingham

NG13 8NG

The director presents his strategic report of the company and the group for the year ended 31 December 2025.

Objectives

As a specialist Dementia care provider our aim is to create an environment where people want to live and work in harmony.

The strategy is to continue to develop our existing sites, with a continued programme of development and refurbishment, alongside seeking strategic acquisitions to increase bed capacity across the wider group.

Church Farm Nursing Home Group has three nursing homes, Church Farm at Cotgrave which is a 46-bedroom home and Church Farm at Skylarks which is a 52-bedroom home, and Wren Hall an outstanding CQC rated 55 bed care home acquired in April 2025 all homes provide specialist Dementia care.

Church Farm has successfully achieved planning permission for a 42 bed extension at Church Farm at Skylarks in West Bridgford, with opening late 2027.

We have our own training centre, and all staff undergo our three-day induction training.

We continue to work to maintain our current banding level of 5 and CQC rating of Good and our Dementia Quality Kite Mark.

REVIEW OF BUSINESS

Business Model

At Church Farm Care Nursing Home Group we aim to provide the highest quality dementia care, the people who live with us and their relatives, are considered family.

To provide high quality specialist care, with a highly motivated and trained staff team.

Church Farm predominately provides specialist Dementia Care.

The market has moved with a push for people to stay at home longer, and as such people are coming to live with us much further on in their stage of dementia.

Business Environment

Despite the market moving with an emphasis on staying at home for longer, we believe we are well placed as we provide high-end specialist care that cannot be substituted at home.

Both funding levels and recruitment/retention of staff remain challenging and as key focuses of management planning and effort.

A key driver is occupancy levels, which remained strong at 95% to 31 December 2025 (96% 2024).

PRINCIPAL RISKS AND UNCERTAINTIES

The board has overall responsibility for the company’s approach to assessing risk and recognises that creating value is the reward for taking and accepting risk.

The home management teams are responsible for managing risk and maintaining appropriate control environments within their home.

The principal risks and uncertainties are set out below in summary:

· Negative publicity in the care industry could adversely impact the homes and with this in mind we aim to maintain our current band 5 banding.

· Largely due to financial constraints and the wish to stay at home longer, we have continued to see a decrease in privately funded people. We therefore continue to rely on providing services to publicly funded entities such as Local Authorities (LA) and the NHS, through Clinical Commissioning Groups and NHS England. Any reduction in revenue from the LA or NHS would adversely impact the business. Changes in the rate of the National Living Wage has had a significant impact on labour costs for the social care sector. With increase in wage costs exceeding revenue increases.

· The senior management team is critical to our continued performance.

· Health & Safety – we understand the need to provide a safe environment for our staff, residents, families, and guests. Everyone in our business has accountability for health and safety and they are given the necessary tools (including training, safety equipment and resources) to operate safely. Compliance is organised and monitored by internal teams across the business and our H&S consultants, Peninsula.

· Clinical quality risk – we are committed to provide a consistent level of care. Church Farm have invested in several key areas to monitor care provision, including a head of quality. A comprehensive programme of service audits is undertaken across all homes with reports and resulting action plans being the subject of comprehensive review.

· With staff costs representing 66% of turnover, one of largest constraints are within staff recruitment, retention and utilisation, when necessary, of agency staff. It is widely documented that there are staff shortages in the care industry, in particular trained nurses and this is expected to increase nationwide.

31.12.25

31.12.24

31.12.23

31.12.22

31.12.21

Total no' leavers

33

50

74

50

109

Total no' starters

28

32

69

118

70

Average total no employees

273

184

202

205

219

Staff turnover

12%

27%

37%

24%

50%

To counteract these pressures Church Farm applied for a sponsorship licence with the Home Office in December 2021. This application was granted in May 2022. This licence allows Church Farm to bring in suitably qualified workers from outside the U.K.

In October 2021, Church Farm joined the ‘real living wage’ foundation to help retain and acknowledge our excellent staff, we have honoured our promise to stay in this foundation in 2023.

Church Farm were also proud to be awarded the regional Great British Care awards ‘Care employer’ award.

BUSINESS PERFORMANCE AND KEY INDICATORS

The two main areas for us to manage is bed occupancy and staff costs. Budgetary controls have been put in place to review these.

Bed Occupancy - average no' beds

31.12.25

31.12.24

31.12.23

31.12.22

Cotgrave

44

45

44

41

Skylarks

47

49

49

49

Wren Hall

54

-

-

-

Total Average

145

94

93

90

Average occupancy rate

95%

96%

97%

94%

Average fee-per week

31.12.25

31.12.24

31.12.23

31.12.22

Cotgrave

£1,533.00

£1,511.00

£1,407.00

£1,246.00

Skylarks

£1,590.00

£1,554.00

£1,518.00

£1,365.00

£1,647.00

Total average-weekly fee

£1,599.00

£1,532.00

£1,463.00

£1,306.00

Our target staff costs as a percentage of turnover are 65%, this is higher than the average for the area of 59% as we pride ourselves on higher staff to resident ratio and we aim for agency costs to be 5% or less of total staff costs.

Payroll/agency costs: Fees

31.12.25

31.12.24

31.12.23

31.12.22

Fees

11,435,937

7,501,694

7,091,969

6.269,813

Staff & payroll costs, excl Director & pension

7,212,707

4,614,185

4,562,296

3,877,994

Agency costs

93,052

143,688

238,948

663,249

Total staff & agency costs

7,305,759

4,757,873

4,801,244

4,541,243

Staff costs: fees (target 65%)

63.88%

63.42%

67.70%

72.43%

Agency costs:staff costs (target 5%)

1.27%

3.02%

4.98%

14.61%

Financial Covenants

The following financial covenants apply and are calculated using the aggregated management financial information: Church Farm Nursing Home Ltd, Wren Hall Nursing home Limited, Church Farm at Rusticus Ltd and Field House Ltd.

Y/e 31.12.25 - Management information (excluding one off items, including development costs). Financial Covenant - minimum requirement for the year ended 31.12.25. Debt service costs 1.75x minimum. Gross Leverage 7.5:1 maximum

ON BEHALF OF THE BOARD:

P Atkinson - Director

29 September 2026

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

the operation of nursing homes specialising in dementia care.

DIVIDENDS

An interim dividend of £1,270.83 per share was paid on the A Ordinary 0.25 shares on 18 September 2025. No dividends were paid on any other classes of shares.

An interim dividend of £1,625 per share on the C Ordinary 0.25 shares was paid on the 18 September 2025. The director recommends that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 December 2025 will be £370,000.

DIRECTOR

P Atkinson held office during the whole of the period from 1 January 2025 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Samantha Allan, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P Atkinson - Director

29 September 2026

Opinion

We have audited the financial statements of Church Farm Nursing Home Limited Group (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 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; and

-	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 Auditors' 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 director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 Group Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where 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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page six, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).

We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Samantha Allan (Senior Statutory Auditor)

for and on behalf of Samantha Allan

3 Holloway Close

East Bridgford

Nottingham

NG13 8NG

29 September 2026

TURNOVER

11,435,937

7,501,694

Cost of sales

(7,334,465

)

(4,731,096

)

GROSS PROFIT

4,101,472

2,770,598

Administrative expenses

(2,928,180

)

(1,574,223

)

1,173,292

1,196,375

Other operating income

3

110,054

9,100

OPERATING PROFIT

5

1,283,346

1,205,475

Interest receivable and similar income

59,953

56,940

1,343,299

1,262,415

Interest payable and similar expenses

6

(413,395

)

(170,611

)

PROFIT BEFORE TAXATION

929,904

1,091,804

Tax on profit

7

(378,925

)

(282,750

)

PROFIT FOR THE FINANCIAL YEAR

550,979

809,054

Profit attributable to:

Owners of the parent

550,979

809,054

PROFIT FOR THE YEAR

550,979

809,054

OTHER COMPREHENSIVE INCOME

-

(216,929

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(216,929

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

550,979

592,125

Total comprehensive income attributable to:

Owners of the parent

550,979

592,125

FIXED ASSETS

Intangible assets

10

1,596,340

-

Tangible assets

11

9,227,371

5,204,732

Investments

12

-

-

Investment property

13

-

-

10,823,711

5,204,732

CURRENT ASSETS

Stocks

14

2,000

2,000

Debtors

15

2,152,670

1,677,987

Cash at bank and in hand

790,795

550,499

2,945,465

2,230,486

CREDITORS

Amounts falling due within one year

16

(2,234,060

)

(1,410,581

)

NET CURRENT ASSETS

711,405

819,905

TOTAL ASSETS LESS CURRENT LIABILITIES

11,535,116

6,024,637

CREDITORS

Amounts falling due after more than one year

17

(7,467,113

)

(2,220,113

)

PROVISIONS FOR LIABILITIES

21

(257,500

)

(175,000

)

NET ASSETS

3,810,503

3,629,524

CAPITAL AND RESERVES

Called up share capital

22

100

100

Capital redemption reserve

23

10

10

Retained earnings

23

3,810,393

3,629,414

SHAREHOLDERS' FUNDS

3,810,503

3,629,524

The financial statements were approved by the director and authorised for issue on 29 September 2026 and were signed by:

P Atkinson - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

5,788,029

5,204,732

Investments

12

2,817,452

-

Investment property

13

-

-

8,605,481

5,204,732

CURRENT ASSETS

Stocks

14

2,000

2,000

Debtors

15

4,061,622

1,677,987

Cash at bank

455,381

550,499

4,519,003

2,230,486

CREDITORS

Amounts falling due within one year

16

(1,670,464

)

(1,410,581

)

NET CURRENT ASSETS

2,848,539

819,905

TOTAL ASSETS LESS CURRENT LIABILITIES

11,454,020

6,024,637

CREDITORS

Amounts falling due after more than one year

17

(7,456,086

)

(2,220,113

)

PROVISIONS FOR LIABILITIES

21

(180,000

)

(175,000

)

NET ASSETS

3,817,934

3,629,524

CAPITAL AND RESERVES

Called up share capital

22

100

100

Capital redemption reserve

23

10

10

Retained earnings

23

3,817,824

3,629,414

SHAREHOLDERS' FUNDS

3,817,934

3,629,524

Company's profit for the financial year

558,410

809,054

The financial statements were approved by the director and authorised for issue on 29 September 2026 and were signed by:

P Atkinson - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

90

3,635,289

10

3,635,389

Changes in equity

Issue of share capital

10

-

-

10

Dividends

-

(598,000

)

-

(598,000

)

Total comprehensive income

-

592,125

-

592,125

Balance at 31 December 2024

100

3,629,414

10

3,629,524

Changes in equity

Dividends

-

(370,000

)

-

(370,000

)

Total comprehensive income

-

550,979

-

550,979

Balance at 31 December 2025

100

3,810,393

10

3,810,503

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

90

3,635,289

10

3,635,389

Changes in equity

Issue of share capital

10

-

-

10

Dividends

-

(598,000

)

-

(598,000

)

Total comprehensive income

-

592,125

-

592,125

Balance at 31 December 2024

100

3,629,414

10

3,629,524

Changes in equity

Dividends

-

(370,000

)

-

(370,000

)

Total comprehensive income

-

558,410

-

558,410

Balance at 31 December 2025

100

3,817,824

10

3,817,934

Cash flows from operating activities

Cash generated from operations

1

1,649,115

1,292,369

Interest paid

(412,556

)

(170,611

)

Interest element of hire purchase payments paid

(839

)

-

Tax paid

(339,561

)

(398,060

)

Net cash from operating activities

896,159

723,698

Cash flows from investing activities

Purchase of tangible fixed assets

(873,589

)

(1,001,902

)

Sale of investment property

44,391

-

Acquisition of subsidiaries

(2,633,403

)

-

Interest received

59,953

56,940

Net cash from investing activities

(3,402,648

)

(944,962

)

Cash flows from financing activities

New loans in year

5,895,968

2,165,000

Loan repayments in year

(2,843,863

)

(1,540,072

)

Notional interest on loans

-

(216,929

)

Capital repayments in year

16,320

-

Amount introduced by directors

370,000

584,809

Amount withdrawn by directors

(321,640

)

(632,735

)

Share issue

-

10

Equity dividends paid

(370,000

)

(598,000

)

Net cash from financing activities

2,746,785

(237,917

)

Increase/(decrease) in cash and cash equivalents

240,296

(459,181

)

Cash and cash equivalents at beginning of year

2

550,499

1,009,680

Cash and cash equivalents at end of year

2

790,795

550,499