The directors present the Annual Report for the year ended 30 April 2026.

The principal activities of the Group continue to be the ownership and operation of care homes, providing accommodation, nursing care, dementia care, rehabilitation and specialist support services for older people and individuals with complex healthcare needs.

The Group owns and operates 11 care homes comprising 645 registered beds within Greater London. Through continued investment in its facilities, services and infrastructure, the Group remains committed to delivering high-quality, person-centred care whilst pursuing sustainable long-term growth.

The Group delivered a strong financial and operational performance during the year despite continued challenges affecting the health and social care sector.

Turnover increased to £49.4m (2025: £42.4m), reflecting improved operational performance, sustained demand for the Group's services and the full-year contribution from Ashbrook Nursing Home acquired on 30 April 2025. Operating profit increased to £13.6m (2025: £10.8m), whilst profit before taxation increased to £11.3m (2025: £8.5m).

Strong cash generation throughout the year supported continued investment across the Group's property portfolio and strategic development programme. Total equity increased to £75.2m (2025: £66.8m), further strengthening the Group's financial position and providing a robust platform to support future growth opportunities.

Whilst the operating environment continued to be influenced by inflationary pressures, workforce shortages and funding constraints within Local Authority and NHS commissioning arrangements, the Group maintained strong profitability through disciplined financial management, operational efficiency and a continued focus on service quality.

Occupancy levels were temporarily affected during the year by redevelopment activities, regulatory capacity restrictions and certain operational factors. Occupancy has strengthened following the year end and remains a key focus of management as redevelopment projects reach completion and additional capacity becomes available.

The Group continues to benefit from an experienced management team, established governance structures and a resilient operating model. This has enabled the business to navigate challenging market conditions whilst continuing to invest in future growth and service development.

The Group's long-term strategy remains focused on operational excellence, selective expansion and the development of complementary healthcare and wellbeing services.

A significant milestone has been achieved at Forest Place, where the second phase of the redevelopment project is approaching completion. Upon completion, the scheme will provide 165 high-quality care units, including 45 extra-care assisted living apartments together with a range of supporting healthcare and wellbeing facilities.

During the year, the Group also acquired an additional development site within the RM5 postcode area, providing an opportunity to further expand its healthcare offering and support future growth. The Directors continue to evaluate opportunities across the portfolio, including the expansion of existing facilities, redevelopment projects and strategic acquisitions where these align with the Group's long-term objectives.

Planning consent has already been secured for future expansion at it’s Ravenscroft care home and additional opportunities continue to be assessed at it’s Balham care home and other strategically important locations.

An important component of the Group's future strategy is the proposed Forest Palace Medical and Wellbeing Centre, which is intended to complement existing care services through the provision of integrated healthcare, rehabilitation and wellbeing facilities. The project reflects the Group's broader objective of investing in infrastructure that supports changing healthcare needs whilst enhancing service provision for both residents and the wider community.

The Group believes that demand for integrated care, rehabilitation, preventative healthcare and wellbeing services will continue to increase in the coming years. Its development strategy is therefore designed to position the business to respond to evolving healthcare requirements whilst creating sustainable long-term value for service users, employees, commissioners and shareholders.

The continued success of the Group depends upon the commitment, professionalism and expertise of its workforce.

Average employee numbers increased to 842 (2025: 745), reflecting continued growth across the portfolio. The Group remains committed to attracting, developing and retaining skilled employees through training, professional development and leadership programmes that support both service quality and career progression.

The Group also continues to draw upon specialist expertise in areas including clinical governance, quality assurance, regulatory compliance and operational support, helping to ensure consistently high standards across all services.

The Group operates within a highly regulated environment and maintains robust systems of governance, quality assurance and regulatory oversight. These arrangements support compliance with Care Quality Commission requirements, safeguarding obligations, health and safety legislation and other applicable regulatory standards.

Investment continues to be made in care management systems, digital technologies and data-driven processes that support improved resident outcomes, stronger clinical governance and enhanced operational efficiency.

The Group maintains constructive relationships with residents, relatives, Local Authorities, NHS organisations, Integrated Care Boards, General Practitioners and other healthcare partners. These relationships remain fundamental to the delivery of safe, effective and person-centred care.

The Board recognises that environmental, social and governance ("ESG") considerations form an important part of the Group's long-term sustainability and responsible business practices.

The Group seeks to reduce its environmental impact through responsible energy management, investment in more efficient infrastructure, building modernisation programmes, waste reduction initiatives and sustainable procurement practices. Environmental considerations are incorporated into development and refurbishment projects where appropriate.

The Group's primary social purpose remains the delivery of high-quality care that improves lives and supports communities. Through its services, the Group provides care, employment and training opportunities across diverse communities whilst maintaining strong relationships with residents, families, healthcare professionals, suppliers and commissioning authorities.

The proposed Forest Palace Medical and Wellbeing Centre further reflects the Group's commitment to supporting community wellbeing through improved access to rehabilitation, preventative healthcare and integrated health services.

Strong governance underpins all aspects of the Group's activities. The Board maintains oversight of strategy, financial performance, risk management, safeguarding, regulatory compliance and clinical governance, supporting effective decision-making and accountability throughout the organisation.

The Group operates within a highly regulated and increasingly challenging environment and is exposed to a range of strategic, operational, financial and regulatory risks. These include inflationary pressures on operating costs, workforce recruitment and retention challenges, regulatory and legislative developments, and ongoing constraints within Local Authority and NHS funding arrangements.

The Group is also affected by broader economic conditions, including occupancy fluctuations, increases in utility and insurance costs, interest rate movements and risks associated with development and capital investment projects. Such factors have the potential to influence both short-term financial performance and the delivery of the Group's long-term strategic objectives.

The Board maintains a comprehensive framework for identifying, assessing and managing principal risks and uncertainties and regularly reviews the effectiveness of internal controls and risk mitigation measures. The Group's strong balance sheet, substantial property asset base, healthy liquidity position and diversified revenue streams provide a significant degree of resilience and support the continued delivery of its long-term strategy.

The Group's key performance indicators ("KPIs") are reviewed regularly by the Board and senior management team as part of the ongoing assessment of operational and financial performance. Detailed monthly management accounts and performance reports are prepared and reviewed throughout the year.

Future Outlook

The Directors remain confident in the Group's long-term prospects and believe that the business is well positioned to benefit from opportunities arising across the health, wellbeing and care sectors.

Supported by a strong balance sheet, substantial property assets, healthy liquidity and an experienced management team, the Group has a solid platform from which to pursue its strategic objectives. Key elements of the Group's growth strategy include the completion and operational ramp-up of the Forest Place development, the progression of expansion opportunities at Ravenscroft and Balham, the longer-term development of the recently acquired RM5 site and the continued evaluation of selective acquisition opportunities.

The proposed Forest Palace Medical and Wellbeing Centre is expected to play an important role in broadening the Group's healthcare offering and supporting the delivery of integrated care, rehabilitation and preventative health services. Together with ongoing investment in healthcare, pharmacy, wellbeing and community-based services, these initiatives are intended to support the Group's long-term growth ambitions and enhance the range of services available to residents, patients and local communities.

Whilst recognising the challenges inherent within an evolving and highly regulated sector, including economic conditions, workforce availability, regulatory developments and commissioning arrangements, the Directors remain confident in the Group's ability to deliver sustainable long-term growth whilst maintaining its commitment to high-quality care and positive outcomes for residents, patients, families and communities.

The directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:

‘A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:

•    the likely consequences of any decisions in the long term;

•    the interests of the company’s employees;

•    the need to foster the company’s business relationships with suppliers, customers and others;

•    the impact of the company’s operations on the community and environment;

•    the desirability of the company maintaining a reputation for high standards of business conduct; and

•    the need to act fairly as between members of the Company.

Risk Management

As we grow, our business and our risk environment also become more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate the risks we face, and that we continue to evolve our approach. We have set out earlier in this report our principle risks and how we manage our risk environment.

Our people

The group remains firmly committed to conducting its business responsibly and sustainably. Our actions and decisions are guided by the expectations of our people, service users, investors, communities, and wider society. Continued success depends on effectively managing performance, developing and retaining talent, and maintaining operational efficiency. We also place strong emphasis on shared values that underpin our culture and guide our conduct, ensuring that our objectives are achieved in a responsible and ethical manner.

Business Relationships

Our strategy priorities organic growth. To do this, we need to develop and maintain strong customer relationships. We value all of our suppliers.

Community and Environment

The Group’s approach is to use our position of strength to create positive change for the people and communities with which we interact.

Reputation maintenance

The board expects the highest standards of business conduct. The directors receive updates in respect of matters of regulatory compliance and further escalated issues.

Shareholders

The board contains all the company’s shareholders so there is never a conflict between the two parties.

The directors take this opportunity to thank all the stakeholders, frontline staff and management, the suppliers, the commissioning and contracting authorities, the social and healthcare workers for their continued invaluable support in the operation of the business. The directors extend our thanks to all the families and relatives for their understanding and working in partnership with the group.

On behalf of the board

The directors present their financial statements for the year ended 30 April 2026.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £85,000. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The group made the following political donations in the current year:

Epping Forest Conservatives - £2,750

The group's principal financial instruments are credit facilities and loans, the main purpose of which is to finance the group's operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.

Liquidity risk is addressed by holding adequate liquid assets and through appropriate controls. The group continually reviews the residual risks arising and has mitigating actions in place to reduce the levels of these risks. Added to the liquid assets, a portion of the bank facility always remains undrawn to overcome unforeseen eventualities.

The group is exposed to interest rate risk on its bank and loan note. The group has agreed favourable interest rates on group cash credit balances which will help to offset the interest rate risk on borrowing.

Investments of cash surpluses and borrowings are made through banks which must fulfil credit rating criteria approved by the Board. All service users enter into formal agreements with the group which stipulate payment terms. The directors regularly review trade debtors and pursue any outstanding debts on a timely basis. Where necessary, provisions are made for doubtful debts.

Abbey Total Care Group Limited has continued its development of an in-house learning facility. The group ensures that all care employees are trained up to the industry standard (appropriate QCF levels). This learning facility provides in-house trainers and assessors to deliver appropriate instructions and evaluation. Our trainers are experts familiar with the company’s values, policies and procedures. These training sessions have been welcomed by employees for their the more interactive style and content.

The group's policy remains that of a positive approach to problem solving and improving efficiency through consultations and discussions with employees at staff councils and meetings, for matters likely to affect employees' interests. All matters of concern by individuals are resolved as they arise by the manager.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

The Group is very pleased with the improving performance in health provision and aged care. We are doing everything we can to offer support to people in need. Our teams continue enthusiastically to deliver high standards of service for our customers at the same time as we transform the business.

The group continues to go from strength to strength, building on its solid foundation and years of expertise in the business. It has grown over the years by making progressive changes to existing buildings, conversions and new-builds. Importance is always given to developments that are superior and can provide a level of customer satisfaction which is exceptional. ‘Value for money and helping people live longer, healthier, happier lives’ are the key principles on which the Group’s foundations lie. We believe Abbey Total Care Group has an increasing part to play in the health of its customers.

Our ‘Care First’ approach will always be at the forefront all our activities. This approach has resulted in continuous training and development initiatives for all employees.

Forest Place, the group’s flagship home in Buckhurst Hill, located within the prestigious Epping Forest District of Essex, in the final stages of its Phase two development to supply additional beds, assisted living units for customers, restaurant facilities and an extensive medical centre.

Future planning includes new smaller developments at many of the group's other homes, to be rolled out soon after execution of the above project.

The auditor, Alwyns LLP is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Whilst the overall group has consumed more than 40,000 kWh of energy in this reporting period, none of the individual subsidiaries are large as defined by the Companies Act. In preparing this group Director’s Report, we have taken advantage of the option to exclude any energy and carbon information relating to those subsidiaries.

As the parent entity has very limited energy consumption, there is no energy and carbon information to be reported in respect of the parent entity.

The directors are responsible for preparing the Annual Report 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 prepared the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of Abbey Total Care Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2026 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 the parent company's affairs as at 30 April 2026 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

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 group's and 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 parent company or to cease operations, or have no realistic alternative but to do so.

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 an auditor's report 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, is detailed below.

Audit procedures undertaken in responses to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claim; inspection of relevant legal correspondence; review of published Care Quality Commission (CQC) inspection reports, inspection of health and safety reports, inspection of Food Standards Agency certificates, testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As stated above, there is an unavoidable risk that material misstatements my not be detected, even though the audit have been planned and performed in accordance with ISAs (UK).

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.

Use of our report

This report is made solely to the parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £11,849,134 (2025 - £12,022,960 profit).

Abbey Total Care Group Limited ("the company") is a private company limited by shares incorporated in England and Wales. The registered office is 9 Spareleaze Hill, Loughton, Essex, IG10 1BS.

The group consists of Abbey Total Care Group Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest whole pound.

The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold properties and derivative financial instruments. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group that prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination and includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

The consolidated financial statements incorporate those of Abbey Total Care Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 30 April 2026 and have consistent accounting policies.

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.

At the time of approving the financial statements, the directors have a reasonable expectation that the company and its subsidiary undertakings have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.

Goodwill represents the difference between the fair value of the consideration paid on the acquisition of a business and the fair value of the separable net assets. Goodwill is capitalised and amortised in equal annual instalments over its estimated useful economic life. Apart from negative goodwill attributable to fixed assets which is amortised over the shorter of expected life of the assets or 50 years. The balance sheet carrying value of goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recovered.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Land and buildings are not depreciated. The buildings are continually maintained, therefore the residual value is such that the depreciation on buildings is nil.

Apart from land and buildings, depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately through the profit and loss account, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities and bank overdrafts.

The group and parent company have elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of their financial instruments.

Financial instruments are recognised in the balance sheet when the entity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including interest rate caps, 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.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loan stock and loans from fellow group and related companies 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 receipts 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.

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 though 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 group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The group operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period to which they relate.

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Liquid resources

Liquid resources for the purpose of preparing the cashflow statement includes cash at bank and in hand.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

Freehold land and buildings are reflected at fair value based upon a valuation from qualified surveyors. Calculation of the valuation requires judgements to be made and estimates based on information at the time of the valuation including the competitive and economic environment.

At each reporting date the company assesses whether there is any indication of the non recovery of trade debts. If any such indication exists a provision is recognised based on the director's estimate of amounts recoverable.

The group's turnover is generated from its principal activity of the operation of care homes which is wholly undertaken in the United Kingdom.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

Only the directors are considered to be the key management.

The charge for the year can be reconciled to the profit per the profit and loss account as follows:

Land and buildings held at 30 April 2023 were revalued during the year to 30 April 2023 based on a valuation concluded on 24 May 2023 by Knight Frank LLP, independent valuers not connected with the company, on the basis of market value as defined in the publication RICS Valuation - Global Standards, which incorporate the International Valuation Standards and the RICS UK National Supplement.

The directors do not believe there has been any significant change to the values as at 30 April 2026.

There has been no depreciation applied on revalued buildings as the residual value is materially the same as the net book value.

If freehold land and buildings were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

During the year the company subscribed in the shares of a newly formed company, Abbey Staff Agency Limited representing 100% of the issued capital.

Details of the company's subsidiaries at 30 April 2026 are as follows:

On 7 November 2025 Abbey Kingston Care Home Limited was renamed to Abbey Total Community Care Limited.

The principal activity of the above undertakings, apart from those identified as dormant, was the operation of care homes and ancillary services. All the above companies are registered in the United Kingdom with the same registered office as the parent undertaking.

The loan notes were issued on 30 April 2025 as part of the consideration for the acquisition of Onetree Estates Limited. The loan notes are unsecured with interest payable at Bank of England base rate. The loan notes are payable by five equal annual instalments of £1,200,000 but can be redeemed earlier on the agreement of the company.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. 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 bank debt is secured by a debenture and unlimited intercompany composite guarantee between the group companies, supported by first legal charges over the assets of those companies.

The bank facilities, comprise term loans and a revolving credit facility, repayable in instalments with bullet repayments at the end of the term on 6 September 2028. Interest is charged on the term loans at between 2.25% and 2.45% above SONIA and on the revolving credit facility at 3.35% above SONIA.

On 2 October 2025 an interest rate cap agreed with the group's bankers over £20,000,000 of debt matured which capped the interest rate before margins at 1.5% per annum.

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Defined contribution pension schemes are operated for all qualifying employees. The assets of the schemes are held separately from those of the group in an independently administered fund.

During the year there was a variation of rights and share class name of the shares and each Ordinary Share of £1 was split into 100 shares of 1p.

All share classes rank pari pasu in all respects with the existing Ordinary shares except the Ordinary A shareholder consent is required to issue new shares and for share rights to be varied.

During the year the group entered into transactions with related parties as follows:

The controlling party was considered to be Mr J M Patel by virtue of his 100% shareholding up until 13 November 2025 when 90% of the company's shares were acquired by The JMP and DJP Discretionary Trust, in which Mr J M Patel is a non controlling trustee.