REGISTERED NUMBER: 16811162 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD

27 OCTOBER 2025 TO 31 MARCH 2026

FOR

H CARE 2025 LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditor

8

Consolidated Income Statement

12

Consolidated Other Comprehensive Income

13

Consolidated Balance Sheet

14

Company Balance Sheet

15

Consolidated Statement of Changes in Equity

16

Company Statement of Changes in Equity

17

Consolidated Cash Flow Statement

18

Notes to the Consolidated Cash Flow Statement

19

Notes to the Consolidated Financial Statements

20

DIRECTORS:

P A de Savary

H J de Savary

A M de Savary

Ms J Hurley

Mr A F Rosenbach

H S Greene

M A Quantock Shuldham

REGISTERED OFFICE:

55 Loudoun Road

London

NW8 0DL

REGISTERED NUMBER:

16811162 (England and Wales)

AUDITOR:

mgr Audit Limited

Chartered Accountants

Statutory Auditors

55 Loudoun Road

St John's Wood

London

NW8 0DL

The directors present their strategic report of the company and the group for the period 27 October 2025 to 31 March 2026.

REVIEW OF BUSINESS

The accounts reflect the trading performance from the acquisition date of 25th November 2025 and have been prepared in accordance with UK GAAP and company law. However, to give a better understanding of trading performance, Home From Home Care Limited will form the basis of the numbers of the strategic review, being the principal trading entity in the group.

Home From Home Care Limited's turnover from its business increased by 9.0% (2025: 4.5%) in the year with the average occupancy of beds/ apartments at 98% (which was in line with the previous year (2025: 98%)).

Home From Home Care Limited's staff wages increased by 13% reflecting the need to invest in increasing pay rates in response to a very competitive and shifting labour market and the increasing complexity of new placements. During the year the minimum hourly rate was increased to £12.60 per hour, 39p above the April 2025 National Minimum Wage, with the company continuing to pay the Real Living Wage. Throughout the period, the company used no agency staff.

During the year:

-

Development commenced in a related party entity, Housing Thirty Five Limited on a new 4 bedded Supported Living service, with completion of the accommodation scheduled for October 2026.

-

Turnover increased largely resulting from inflationary increases, and higher fees for more complex Individuals.

Our focus remains on delivering specialist services for individuals with the highest acuity needs who are difficult to place as few providers can meet their exacting needs and manage the increased risk. Operationally, these niche services rely on our unique data informed care model which underpins care delivery and influences the development of our operational structure with associated cost implications.

Direct costs for Home From Home Care Limited increased by 8% (2025: 0.2% decrease) during the year reflecting the above. These increases peaked during the financial year as the company's operational model became more complete.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider the main risks faced by the business are:

-

Those relating to the provision of substandard care. The directors are aware of these risks and continue the development of its sophisticated care planning and recording systems to ensure that the group's care users receive the best quality care, while keeping fully up to date with current and proposed legislation and regulations, together with enhanced Business Continuity planning.

-

The risks associated with the Care Quality Commission and specifically the group's ongoing legal challenge in the Administrative Court around legal matters relating to inspections.

-

The political landscape and financial pressures on Councils and ICBs. This is making it increasingly necessary to challenge in order to obtain the required fees to maintain the same level of care for individuals in our service due to inflationary cost pressures.

-

The impact of legislation regarding foreign employees and visas for retention of staff.

DEVELOPMENT AND PERFORMANCE

The directors continue with the conscious decision to increase investment beyond what would normally be expected in recognition of market challenges, continuing the resetting of its services in line with the risks and opportunities it faced. They are encouraged by the actions taken in the face of continued inflation and the significant increases in the NLW, which have increased pressures on funding, as well as the persistently tight employment market which has shown some signs of improvement due to overseas recruitment. They believe that over an extended period, this strategy will secure the group's sustainability.

POSITION OF THE GROUP AT THE YEAR END

In the opinion of the directors, the group is in a strong position at the year end with shareholders' fund at £627k.

KEY PERFORMANCE INDICATORS

The group's management continually monitors the performance of the homes with particular regard to the quality of the care provision.

Home From Home Care Limited is rated Platinum by Investors in People, whilst 7 of its 11 residential services are rated Outstanding and 3 are rated Good by the Care Quality Commission. The rating of one home was previously the subject of a legal challenge with the Care Quality Commission, with the current legal action relating to issues associated with inspections.

In addition, the group reviews monthly management information including management accounts, occupancy ratios and staffing requirements. The main key financial performance indicators are sales growth referred to above and the operating profit margin which was 6.7% (2025: 2.2%).

DUTY TO PROMOTE THE SUCCESS OF THE COMPANY AND EMPLOYEE ENGAGEMENT

During the period, the directors have built on their strategy of supporting individuals with higher acuity and more complex needs. Underpinning the operations of its specialist services is "Zone Standard" the group's single-entry IT platform. Zone Standard provides real time data allowing the group to better manage risk, increasing information available to care home managers, giving them greater insight.

This strategy is building sustainability both for the individuals the group supports and for the longer-term prospects for the group through the increasing effectiveness of data, management, staff teams, specialist teams and highly personalised environments, together comprising the group's groundbreaking data informed care model. This is significantly enhanced by embracing artificial intelligence (AI) and has led to the development of EHI (Enhanced Human Intelligence) which leverages off the Zone Standard platform. This remains a key focus in financial year 2027 and will enable growth and increased support for employees in an increasingly complex environment.

The directors have regard to relationships with employees, the individuals being supported, their families and all key business stakeholders. The individuals are supported to engage with the wider community which in turn supports the local economies, enhancing the group's overall social impact.

Relationships and engagement with staff are fostered through regular direct meetings and communications, with multiple channels for staff to engage with managers and the directors. Regular updates ensure that staff are recognised and our values-based recruitment processes actively encourage progression opportunities, supported by ongoing training and mentoring.

ON BEHALF OF THE BOARD:

H S Greene - Director

30 September 2026

The directors present their report with the financial statements of the company and the group for the period 27 October 2025 to 31 March 2026.

INCORPORATION

The group was incorporated on 27 October 2025 .

PRINCIPAL ACTIVITY

The principal activity of the group is the provision and operation of care homes for adults 18+ with learning disabilities and high acuity needs, including autism, epilepsy, complex health and mental health, the provision of personnel and the provision of building services.

DIVIDENDS

No dividends will be distributed for the period ended 31 March 2026.

DIRECTORS

The directors during the period under review were:

P A de Savary

- appointed 25.11.2025

H J de Savary

- appointed 27.10.2025

A M de Savary

- appointed 25.11.2025

J Hurley

- appointed 25.11.2025

A F Rosenbach

- appointed 25.11.2025

H S Greene

- appointed 23.01.2026

M A Quantock Shuldham

- appointed 25.11.2025

MARKET VALUE OF LAND AND BUILDINGS

The group's care homes were valued at the period end by the directors at their current market value as reflected in the consolidated accounts.

DISABLED PERSONS

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitude of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues, that reasonable adjustments are made and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

EMPLOYEE INVOLVEMENT

The group's policy is to consult and discuss with employees matters likely to affect their interests. This is achieved amongst other things through survey's staff meetings and one2ones.

Information relating to financial and economic matters is additionally disseminated to employees using information bulletins and reports which seek to achieve a common awareness on the part of all employees of those factors affecting the group's performance.

STREAMLINED ENERGY AND CARBON REPORTING

The assessment has been verified by a third-party (Antea Group) and carried out in accordance with ISO14064-1:2018 Greenhouse Gases - Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals.

The information below sets out total energy consumption and resulting GHG emissions by Scope arising from business operations.

tCO2e

Scope 1 - Heating Fuels

88.74

Scope 1 - Company Vehicles

65.01

Scope 2 - Purchased Electricity

39.11

Scope 3 - Employee Mileage

28.15

Total

221.01

Intensity Ratios

kgCO2e/m2/year

51.05

tCO2e/employee/year

1.53

tCO2e/£m/year

21.09

H Care 2025 Limited is committed to delivering the highest level of care for individuals with learning disabilities whilst also reducing its environmental impact.

In the period the group has utilised renewable electricity tariffs, ensuring that we procure energy from cleaner and renewable sources.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group 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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

AUDITOR

The auditors, mgr Audit Limited, are deemed to be reappointed under Section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

H S Greene - Director

30 September 2026

Opinion

We have audited the financial statements of H Care 2025 Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2026 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 March 2026 and of the group's loss for the period 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 Auditor 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 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditor 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 Directors 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 Directors 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 Directors.

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 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 Statement of Directors' Responsibilities set out on page six, 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 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.

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 Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud

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.

As part of our planning of the audit work required we obtained an understanding of the legal and regulatory frameworks that are applicable to the entity via enquiries of the company's management, carried out analytical procedures, held discussions amongst the engagement team and using knowledge of the sector determined that the most significant laws and regulation are those that relate to:

- The regulation of Health and Social Care.

- Health and safety regulations.

- Employment law including right to work in the UK and Disclosure and Barring Service (DBS).

- Medicine Regulation.

- Mental Capacity Act.

- Food Safety Act.

- Environmental protection and waste disposal.

- Fire safety regulations.

- Data Protection.

- Modern Slavery Act.

- UK Tax legislation.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as FRS102 and the Companies Act 2006.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with the laws and regulations and the fraud risks identified. This included enquiries with management to understand their policies and procedures for compliance with those regulations and we completed the following tests:

- Obtained an understanding of relevant controls.

- Reviewed the company's risk assessments, procedures and systems.

- Checked samples of documentation including minutes of the meetings of the directors, service agreements with regulatory advisors and reports by the Care Quality commission,the regulator

We also assessed the risks of material misstatement in respect of fraud as follows:

- Revenue fraud.

- Unauthorised expenditure and/or payments.

- Management override of controls.

- Manipulation of accounting estimates.

- Related party fraud.

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud. This included the risk of management bias relating to judgements and assumptions used in the valuing the leasehold properties and the reporting of the loan covenants.

No significant issues were identified during our testing.

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 Auditor.

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 Auditor 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.

Nigel Walfisz FCA (Senior Statutory Auditor)

for and on behalf of mgr Audit Limited

Chartered Accountants

Statutory Auditors

55 Loudoun Road

St John's Wood

London

NW8 0DL

30 September 2026

TURNOVER

10,583,698

Cost of sales

(8,639,430

)

GROSS PROFIT

1,944,268

Administrative expenses

(4,043,013

)

(2,098,745

)

Other operating income

15,000

OPERATING LOSS

4

(2,083,745

)

Interest receivable and similar income

Group

201

Associates

210,508

(1,873,036

)

Interest payable and similar expenses

6

(1,364,135

)

LOSS BEFORE TAXATION

(3,237,171

)

Tax on loss

7

(327,810

)

LOSS FOR THE FINANCIAL PERIOD

(3,564,981

)

Loss attributable to:

Owners of the parent

(3,564,981

)

LOSS FOR THE PERIOD

(3,564,981

)

OTHER COMPREHENSIVE INCOME

Revaluation of tangible fixed assets

540,937

Income tax relating to other comprehensive income

(135,234

)

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

405,703

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

(3,159,278

)

Total comprehensive income attributable to:

Owners of the parent

(3,159,278

)

FIXED ASSETS

Intangible assets

9

21,520,672

Tangible assets

10

36,785,578

Investments

11

1,571

58,307,821

CURRENT ASSETS

Debtors

12

5,782,289

Cash at bank and in hand

2,744,115

8,526,404

CREDITORS

Amounts falling due within one year

13

5,146,569

NET CURRENT ASSETS

3,379,835

TOTAL ASSETS LESS CURRENT LIABILITIES

61,687,656

CREDITORS

Amounts falling due after more than one year

14

(57,620,531

)

PROVISIONS FOR LIABILITIES

17

(3,440,237

)

NET ASSETS

626,888

CAPITAL AND RESERVES

Called up share capital

18

3,786,166

Revaluation reserve

405,703

Retained earnings

(3,564,981

)

SHAREHOLDERS' FUNDS

626,888

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2026 and were signed on its behalf by:

H S Greene - Director

FIXED ASSETS

Intangible assets

9

-

Tangible assets

10

-

Investments

11

40,200,015

40,200,015

CURRENT ASSETS

Debtors

12

166,751

CREDITORS

Amounts falling due within one year

13

908,593

NET CURRENT LIABILITIES

(741,842

)

TOTAL ASSETS LESS CURRENT LIABILITIES

39,458,173

CREDITORS

Amounts falling due after more than one year

14

36,913,834

NET ASSETS

2,544,339

CAPITAL AND RESERVES

Called up share capital

18

3,786,166

Retained earnings

(1,241,827

)

SHAREHOLDERS' FUNDS

2,544,339

Company's loss for the financial year

(1,241,827

)

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

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2026 and were signed on its behalf by:

H S Greene - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Changes in equity

Issue of share capital

3,786,166

-

-

3,786,166

Total comprehensive income

-

(3,564,981

)

405,703

(3,159,278

)

Balance at 31 March 2026

3,786,166

(3,564,981

)

405,703

626,888

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

3,786,166

-

3,786,166

Total comprehensive income

-

(1,241,827

)

(1,241,827

)

Balance at 31 March 2026

3,786,166

(1,241,827

)

2,544,339

Cash flows from operating activities

Cash generated from operations

1

(2,548,924

)

Interest paid

(258,613

)

Interest element of finance lease payments paid

(326,356

)

Net cash from operating activities

(3,133,893

)

Cash flows from investing activities

Purchase of tangible fixed assets

(357,316

)

Acquisition of group

(40,200,015

)

Cash and cash equivalents acquired

5,735,138

Interest received

201

Net cash from investing activities

(34,821,992

)

Cash flows from financing activities

New loans in year

8,700,000

Share issue

3,786,166

Proceeds from preference shares

28,213,834

Net cash from financing activities

40,700,000

Increase in cash and cash equivalents

2,744,115

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

2,744,115

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

£

Loss before taxation

(3,237,171

)

Depreciation charges

821,014

Finance costs

1,364,135

Finance income

(210,709

)

(1,262,731

)

Increase in trade and other debtors

(5,782,288

)

Increase in trade and other creditors

4,496,095

Cash generated from operations

(2,548,924

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 March 2026

31.3.26

27.10.25

£

£

Cash and cash equivalents

2,744,115

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 27.10.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank and in hand

-

2,744,115

2,744,115

-

2,744,115

2,744,115

Debt

Finance leases

-

(21,357,049

)

(21,357,049

)

Debts falling due after 1 year

-

(36,913,834

)

(36,913,834

)

-

(58,270,883

)

(58,270,883

)

Total

-

(55,526,768

)

(55,526,768

)

1.	STATUTORY INFORMATION

H Care 2025 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 General 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

Investments in subsidiaries are accounted for at cost less impairment.

The consolidated financial statements incorporate those of H Care 2025 and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of the H Care Group in 2025, is being amortised evenly over its estimated useful life of 10 years.

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 has been fully amortised in the current year.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

Nil

Fixtures and fittings

-

20% - 33% straight line

Motor vehicles

-

25% straight line

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 period 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was as follows:

Care

510

Admin

27

537

£

Directors' remuneration

739,858

Information regarding the highest paid director is as follows:

£

Emoluments

119,604