The directors present the strategic report for the year ended 28 February 2026.
The Company continued to experience strong demand for its supported living and domiciliary care services during the year. Turnover increased to £16,142,364 from £13,568,534 in the previous year, representing growth of 19.0%.
Despite continuing inflationary pressures, higher National Living Wage costs and recruitment challenges across the adult social care sector, the Company maintained stable operations and continued to invest in service quality, workforce development, and digital care management systems.
Operational priorities during the year included:
maintaining safe staffing levels,
improving recruitment and retention,
strengthening governance and quality assurance arrangements,
enhancing electronic care planning and medication management systems,
supporting compliance with CQC Fundamental Standards, and
improving outcomes and independence for people receiving care.
The directors consider that these priorities supported the continued delivery of high-quality care. Their assessment of financial resilience is considered alongside the profitability and working capital movements described below.
Financial Performance
Turnover for the year was £16,142,364 (2025: £13,568,534). Gross profit was £4,621,855 (2025: £4,781,721), with the gross profit margin reducing to 28.6% from 35.2%. Administrative expenses increased to £4,370,171 (2025: £3,546,244).
Operating profit was £817,040 (2025: £1,235,477), and profit before taxation was £767,190 (2025: £1,231,824). Profit after taxation was £559,682 (2025: £898,965). The Company remained profitable, although profit was lower than in the previous year despite the increase in turnover.
The results include other operating income of £565,356, comprising management fees receivable of £552,606 and sundry income of £12,750. The management fees were charged to Gateside Housing CIC, a related party, as disclosed in note 21 to the financial statements. This income is separately identified to provide a balanced understanding of the year’s operating performance.
Aggregate employee remuneration, including wages and salaries, social security and pension costs, increased to £13,256,246 (2025: £10,035,556). The directors continued to exercise prudent financial management in response to employment costs, inflation, domiciliary care travel expenses, and regulatory compliance costs.
Net cash inflow from operating activities was £471,899 (2025: £604,270). Cash at bank and in hand at the yearend was £89,800 (2025: £102,728).
Total debtors increased to £3,428,101 (2025: £1,911,145), while creditors due within one year increased to £2,904,469 (2025: £1,477,114).
The directors continue to prepare the financial statements on the going concern basis. The assessment is described under “Going Concern” below.
The directors regularly review the principal risks affecting the Company and the effectiveness of the controls used to manage them. The principal risks and the mitigating arrangements are set out below.
Workforce Recruitment and Retention:
The availability of suitably qualified and experienced care staff remains the Company’s most significant operational risk, particularly as the business grows. The Company continues to invest in recruitment, retention, and workforce development to support staffing capacity and continuity of care.
To address this risk, the Company continues to invest in:
competitive pay and benefits,
structured induction programs,
continuous professional development,
employee wellbeing initiatives,
career progression opportunities; and
domestic recruitment where appropriate, in response to restrictions affecting overseas recruitment.
Funding and Commissioning Risk:
A significant proportion of the Company’s income is derived from local authority and NHS commissioning contracts. Changes to commissioning arrangements, fee rates or public funding may affect future financial performance.
Management maintains close relationships with commissioners and regularly reviews contract profitability to help manage this risk. Maintaining commercially sustainable care packages remains important in the context of rising employment and service delivery costs.
Regulatory Compliance:
As a CQC-regulated provider, the Company considers compliance with statutory and regulatory requirements a key priority. Its governance arrangements include:
internal quality audits,
service reviews,
incident reporting systems,
safeguarding procedures,
regular policy reviews,
compliance monitoring; and
directors’ oversight of quality and risk.
Quality of Care:
Failure to maintain high standards of care could adversely affect the people supported by the Company, its reputation, and its regulatory compliance. The Company promotes continuous improvement through:
person-centered care planning,
regular supervision and appraisal,
employee welfare support and health checks,
involvement of the people supported, and
learning from incidents, complaints, and feedback.
The Company’s emphasis on person-centered care and the involvement of the people it supports remains central to its service delivery approach.
Cyber Security and Data Protection:
The Company processes sensitive personal and health information. It maintains technical and organisational measures designed to support compliance with UK GDPR and data protection legislation, including staff training, secure electronic care records, cyber security controls, and regular system reviews with support from an external IT service provider.
Inflationary Pressures:
Increases in employment costs, mileage expenses, utilities, insurance, repairs, and maintenance, together with wider inflationary pressures, continue to challenge operating margins. The directors monitor expenditure, seek operational efficiencies, and pursue appropriate fee uplifts from commissioners.
Employees:
The average monthly number of employees, including directors, was 270 (2025: 253), comprising 70 administrative employees and 200 operational employees. The directors recognise that high-quality care depends on a skilled, motivated, and supported workforce.
The Company is committed to:
promoting equality, diversity, and inclusion,
providing fair employment opportunities,
supporting employee wellbeing,
investing in learning and development,
maintaining effective communication and engagement; and
ensuring a safe working environment.
The Company encourages employees to contribute to service improvement and values the contribution of every member of staff.
The directors monitor financial and operational indicators to evaluate performance and identify opportunities for continuous improvement.
Indicator | 2026 performance or monitoring arrangement |
Annual turnover | £16,142,364 (2025: £13,568,534). |
Average number of employees | 270 (2025: 253), including directors. |
Care hours delivered | Monitored monthly. |
Staff turnover | Reviewed monthly. |
Staff vacancy levels | Monitored through regular recruitment reporting. |
Mandatory training compliance | Monitored against internal targets by the training department. |
Medication error rates | Reviewed through staff meetings. |
Safeguarding incidents | Monitored and investigated where required. |
CQC compliance | Subject to continuous monitoring against the Fundamental Standards. |
Service user satisfaction | Reviewed through feedback surveys and complaints analysis. |
Future Outlook
Demand for supported living and domiciliary care services continues to increase as more people choose to receive care in their own homes and communities. The Company intends to pursue sustainable long-term growth while continuing to invest in service quality, workforce capacity, and operational systems.
Its investment priorities are:
workforce recruitment and retention,
leadership development,
digital care technologies,
quality improvement initiatives,
expansion of supported living services, and
sustainable long-term growth.
The directors remain confident that the Company’s reputation, experienced management team, and commitment to high-quality care provide a foundation for future development. They recognise that growth must be considered alongside workforce availability, commissioning conditions, operating margins, and cash requirements.
Going Concern
Having reviewed the Company’s financial forecasts, cash flow projections and available funding, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
Accordingly, the financial statements have been prepared on the going concern basis.
On behalf of the board
The directors present their annual report and financial statements for the year ended 28 February 2026.
Principal activities and strategic review
The Company provides supported living and domiciliary care services to adults across England. A review of the business, its financial performance, principal risks, and future outlook is set out in the strategic report, which should be read together with this report.
Supported living represented 89% of revenue for the year and domiciliary care represented 11%, reflecting the Company’s service mix as described in the strategic report.
The results for the year are set out in the profit and loss account. Profit for the financial year was £559,682 (2025: £898,965).
Dividends declared for the year amounted to £411,000 (2025: £360,000) and £280,500 was paid during the year. The balance of £130,500 was paid after the year end.
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:
Quality, safeguarding, and governance
The directors recognise that sustainable business performance depends on the quality and safety of the care delivered. Oversight of quality and risk is supported by the internal quality audits, service reviews, incident reporting, safeguarding procedures, and compliance monitoring described in the strategic report.
The Company’s approach to continuous improvement includes person-centered care planning, staff supervision and appraisal, involvement of the people supported, and learning from incidents, complaints, and feedback. These activities support its commitment to care that promotes independence and dignity.
People receiving care and commissioning relationships
The Company works with local authorities, ICBs, NHS organisations and private service users in delivering its services. Management maintains relationships with commissioners and reviews contract profitability, while feedback surveys and complaints analysis inform its understanding of the experience of people receiving care.
The directors view these relationships, together with workforce development and effective quality assurance, as important to the continuity and sustainable development of the Company’s services.
The Company’s policy is to consult and discuss with employees, through unions, staff councils and meetings, matters likely to affect their interests. Information on matters of concern is communicated through bulletins and reports to promote a shared understanding of the financial and economic factors affecting the Company’s performance.
The Company encourages employee involvement in service improvement and supports workforce wellbeing, learning and development, equality, diversity and inclusion, and a safe working environment. Structured induction, continuing professional development and career progression opportunities form part of its approach to recruitment and retention.
There is currently no employee share scheme. The directors are considering the introduction of such a scheme as a means of further encouraging employee involvement in the Company’s performance.
Digital systems and information governance
The Company continued to invest in digital care management systems, including electronic care planning and medication management. Given the sensitive personal and health information it processes, staff training, secure care records, cyber security controls, and external IT support remain important elements of its information governance arrangements.
Financial oversight and related-party disclosures
The directors continued to monitor expenditure and working capital in the context of increasing service delivery costs. The financial review in the strategic report identifies the movement in profitability, cash, and short-term obligations, rather than relying solely on turnover growth.
Related-party transactions and balances, including management fees charged to Gateside Housing CIC, loans to related entities and amounts receivable from directors, are disclosed in note 21 to the financial statements. The ultimate controlling parties are identified in note 22. These disclosures should be read alongside the financial review to understand the Company’s position.
Future development and going concern
The Company’s planned investment in workforce recruitment and retention, leadership development, digital care technologies, quality improvement, and supported living expansion is described in the strategic report. The directors continue to prepare the financial statements on the going concern basis, following the assessment described in that report and the accounting policies.
KLSA LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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 of the profit or loss of the company 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; and
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 transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Midco Care Limited (the 'company') for the year ended 28 February 2026 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
As explained more fully in the directors' responsibilities statement, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; and
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation.
We also considered potential fraud drivers: including financial or other pressures, opportunity, override of controls and personal or corporate motivations. We considered the programmes and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing journals, evaluating the business rationale of significant transactions outside the normal course of business and validating the appropriateness of internal controls and significant accounting estimations based on our fraud risk criteria;
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims.
We obtained understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those related to the financial reporting framework, tax regulations in the jurisdictions in which the company operates.
Based on this understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: making enquiries of management, those responsible for legal and compliance procedures and reviewing other correspondence.
We communicated identified fraud risks and non-compliance with laws and regulations with those charged with governance, throughout the audit team and remained alert to any indications throughout the audit.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also 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.
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.
Other matters
The comparative period was not subject to audit because the company took advantage of audit exemption by virtue of section 477 of Companies Act 2006 in that period.
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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Midco Care Limited is a private company limited by shares incorporated in England and Wales. The registered office is Laxton House, 191 Lincoln Road, Peterborough, PE1 2PN.
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 nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
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 credited or charged to profit or loss.
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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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 company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company 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 company.
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 when the company has 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.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
In the application of the company’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 directors consider the following to be the key sources of estimation uncertainty and significant judgements which may have the most significant effect on the amounts recognised in the financial statements.
Recoverability of trade receivables and amounts due from related parties:
The company makes an assessment of the recoverability of trade receivables and balances due from related parties at each reporting date. In assessing impairment, the directors consider factors including the age profile of balances, historical collection experience, the financial position of counterparties and expected future recoveries. Provisions are recognised where recovery of balances is considered uncertain.
Useful economic lives of tangible fixed assets:
The company reviews the estimated useful economic lives and residual values of tangible fixed assets annually. Changes in economic conditions or the expected pattern of consumption of economic benefits may result in revisions to these estimates and therefore affect future depreciation charges.
The average monthly number of persons (including directors) employed by the 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:
The bank loan is unsecured and bears interest at commercial rates.
The bank loan is unsecured and subject to commercial interest rates.
Finance lease payments represent rentals payable by the company for motor vehicles and fixtures and fittings. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the company:
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The prior year adjustment relates to the reclassing of finance lease obligation and loan short term balance to creditors due within one year. The amount reclassified is £36,125.
The prior period adjustments do not give rise to any effect upon equity.
During the year the company entered into the following transactions with related parties:
As at the year end, amounts receivable from Luaya Homes Limited comprised a loan balance of £480,381 (2025: £170,536), trade debtors of £54,341 (2025: £30,000), and rent deposits included within other debtors of £7,258 (2025: £7,258). The loan is unsecured, interest free and repayable by annual instalments of £78,500 commencing on 6 October 2027, with the outstanding balance due by 31 July 2032.
Amounts payable to Luaya Homes Limited at the year end were £95,310 (2025: £Nil), included within trade creditors. During the year, Midco Care Limited invoiced Luaya Homes Limited £24,341 (2025: £30,000) in respect of services provided by Midco Care Limited. Luaya Homes Limited is a company under common directors.
At the year end, amounts receivable from Gateside Housing CIC comprised a loan of £378,271 (2025: £Nil), trade debtors of £609,082 (2025: £629), and rent deposits included within other debtors of £68,169 (2025: £45,714). The loan is unsecured, interest free and repayable by annual instalments of £78,500 commencing on 6 October 2027, with the outstanding balance due by 26 July 2032.
Amounts payable to Gateside Housing CIC totalled £308,521 (2025: £6,059) and were included within trade creditors. During the year, the company charged management fees of £552,606 (2025: £Nil) to Gateside Housing CIC. In addition, Midco Care Limited invoiced Gateside Housing CIC £55,847 (2025: £629) for services provided. Midco Care Limited received services from Gateside Housing CIC amounting to £302,461 (2025: £6,059). Gateside Housing CIC is an entity under the common directorship of one of the company's directors.
At the year end, amounts receivable from Gateside Homes CIC comprised trade debtors of £9,877 (2025: £Nil) and rent deposits included within other debtors of £13,407 (2025: £11,273). Amounts payable to Gateside Homes CIC of £63,192 (2025: £Nil) were included within trade creditors. During the year, Midco Care Limited invoiced Gateside Homes CIC £9,877 (2025: £Nil) in respect of services provided. In addition, Gateside Homes CIC provided services to Midco Care Limited amounting to £63,192 (2025: £Nil). Gateside Homes CIC is a company under common directorship of one of the directors.
At the year end, the amounts due from directors, Mr M Bhebe and Mrs L Bhebe were £324,522 (2025: £250,222) and £50,621 (2025: £93,102) respectively. The balances are unsecured, interest free and repayable on demand.