Karlyon Care Limited

	Page
Strategic Report	1—2
Directors' Report	3—4
Independent Auditor's Report	5—8
Consolidated Statement of Income and Retained Earnings	9
Consolidated Balance Sheet	10
Company Balance Sheet	11
Consolidated Statement of Cash Flows	12
Notes to the Consolidated Statement of Cash Flows	13
Notes to the Financial Statements	14—23

The directors present their strategic report for the year ended 31 March 2026.

Principal Activity

The group's principal activity continues to be that of running residential care homes.

Review of the Business

The group has had another profitable year and the company expects this will continue into the future.

The group has enjoyed increased turnover and gross profits due to a number of factors. The efficiency in running the care homes has continued to improve further and ensured better results year on year.

It is expected that the group will continue to improve in the following year and directors continue to seek avenues for improving existing care homes and sourcing other quality care homes.

Financial KPIs

	Unit	2026	2025
Turnover	£	8,390,633	7,528,982
Gross Profit	£	3,868,315	3,555,938
Gross Profit Margin	%	46	47
Net Profit Margin	%	21	25

Principal Risks and Uncertainties

The group operates in a industry that is somewhat dependant on funding from councils and government bodies. There are also risks around the rise of interest rates and inflationary costs.

The group has made steps in order to mitigate each of these risks by building good relationships with funding providers, building good reputations for each care home and having strong management in place.

The interest rates on loans have been fixed to mitigate the risk of increasing interest rates.

The inflationary costs risk is mitigated through taking every effort to minimise non-essential outgoings whilst ensuring there is no impact on the quality of the service provided. This is done by ensuring the best suppliers in terms of value for money are sourced, reducing waste and keeping tight financial controls in place.

The group remains in a good financial position, which has been sustained for a number of years. Any future expansion plans will be carefully considered alongside specific cash flow forecasts.

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Karlyon Care Limited

Strategic Report (continued)

For The Year Ended 31 March 2026

Financial Instruments

Financial risk management objectives and policies

Trading activities expose the group to a number of financial risks. These risks include cash flow risk and overall liquidity risk. The group seeks to manage and mitigate these risks by adopting a policy of frequent monitoring of the bank balance. Management also remains hands-on reviewing cash flows, pre-empting future cash movements and planning accordingly. The directors maintain regular contact with the group's banks and keeping them informed of business cash flow levels and results as required.

Price risk, credit risk, liquidity risk and cash flow risk

The principal risks are that of liquidity and cash flow.

Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to manage liquidity risk by managing cash generation by applying cash collection targets through the year. Liquidity is also managed via credit facilities and short-term debt.

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular asset or liability. The company manages this risk through the use of comprehensive cash flow and forecasting processes and hands-on management by the directors.

Foreign exchange risk is the risk of exposure to fluctuations in the currency exchange rates against the pound sterling. The risk is minimal due to no trading overseas and no investments and assets held overseas.

On behalf of the board

Mrs Julie Franks

Director

2 November 2026

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Karlyon Care Limited

Company No. 06833976

Directors' Report For The Year Ended 31 March 2026

Directors' Report

The directors present their report and the financial statements for the year ended 31 March 2026.

Directors

The directors who held office during the year were as follows:

Mrs Julie Franks
Mr Peter Franks
Mr Karl Franks
Mrs Emma Woodworth-Franks	Appointed	13/11/2025

Matters covered in the Strategic Report

Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, 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 and 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

so far as the director is aware, there is no relevant audit information of which the company and group's auditors are unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company and group's auditors are aware of that information.

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Karlyon Care Limited

Directors' Report (continued)

For The Year Ended 31 March 2026

Independent Auditors

The auditors, Sumer Auditco Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mrs Julie Franks

Director

2 November 2026

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Independent Auditor's Report

to the Members of

Karlyon Care Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of Karlyon Care Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Balance Sheet, the Parent Company Balance Sheet, the Consolidated Statement of Cash Flows, the Parent Company Statement of Cash Flows and the related 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 FRS 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 31 March 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 group and parent company 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 or parent company's ability to continue as a going concern for a period of at least 12 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.

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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

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Independent Auditor's Report (continued)

to the Members of

Karlyon Care Limited

Matters on Which We Are Required to Report by Exception

In the light of the knowledge and understanding of the group and 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.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3—4, 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.

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Independent Auditor's Report (continued)

to the Members of

Karlyon Care Limited

Auditor's 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 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.

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 arising from irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our audit planning, through discussions with management, we obtained an understanding of the legal and regulatory framework applicable to the group and the sector in which it operates. The key laws and regulations identified included the Companies Act 2006, the applicable financial reporting framework, relevant tax legislation, the Health and Social Care Act 2008 and associated regulations, employment and immigration legislation, and Care Quality Commission requirements applicable to the group's care home operations.

We discussed with management how compliance with these laws and regulations is monitored, including the policies and procedures in place and the individuals responsible for ensuring compliance. We considered the company's compliance history and the potential impact of non-compliance on the financial statements.

Our procedures in relation to laws and regulations included:

Enquiries of management regarding known or suspected instances of non-compliance with laws and regulations.
Reviewing Care Quality Commission reports and accident logs for matters indicating potential regulatory non-compliance.
Reviewing legal and professional expenses for evidence of non-compliance, litigation or regulatory penalties.

During the audit, we became aware of a breach of immigration legislation at a subsidiary within the group which had resulted in a financial penalty. In response, we reassessed the risk of non-compliance within payroll and examined right-to-work documentation for all foreign workers within the relevant audit population. No further instances of non-compliance were identified from these procedures.

We assessed the risk of material misstatement due to fraud, including management override of controls and revenue recognition.

In response to these risks, our audit procedures included:

Testing journal entries and financial statement preparation adjustments.
Evaluating accounting policies, estimates and significant transactions for indicators of fraud or management bias.
Performing substantive analytical procedures using data analytics to identify unusual transactions and relationships.
Testing resident commencement and cessation periods to support the occurrence of income.
Performing year-end cut-off testing to assess whether income had been recognised in the correct accounting period.
Agreeing rental and dividend income to supporting board minutes.

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. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve deliberate concealment through collusion, forgery, intentional misrepresentations or the override of internal controls.

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 auditor's report.

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Independent Auditor's Report (continued)

to the Members of

Karlyon Care Limited

Use Of Our Report

This report is made solely to the group’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.

Richard Baker FCA (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited , Statutory Auditor

2 November 2026

Sumer Auditco Limited

T/A Sumer Audit

6 Houndiscombe Road

Plymouth

Devon

PL4 6HH

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Karlyon Care Limited

Consolidated Statement of Income and Retained Earnings

For The Year Ended 31 March 2026

Consolidated Statement of Income and Retained Earnings

		2026	2025
	Notes	£	£
TURNOVER	3	8,390,633	7,528,982
Cost of sales		(4,522,318 )	(3,973,044 )

GROSS PROFIT		3,868,315	3,555,938

Administrative expenses		(2,016,677 )	(1,562,298 )
Other operating income		301	20,242

OPERATING PROFIT	5	1,851,939	2,013,882
(Loss)/profit on disposal of fixed assets		(9,952 )	9,602
Other interest receivable and similar income	10	18,492	12,846
Interest payable and similar charges	11	(130,861 )	(149,783 )

PROFIT BEFORE TAXATION		1,729,618	1,886,547
Tax on Profit	12	(476,345 )	(487,240 )

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT		1,253,273	1,399,307
RETAINED EARNINGS
As at 1 April 2025		5,404,783	4,513,476
Dividends paid		(972,000)	(508,000)
As at 31 March 2026		5,686,056	5,404,783

The notes on pages 13 to 23 form part of these financial statements.

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Karlyon Care Limited

Consolidated Balance Sheet

As At 31 March 2026

Consolidated Balance Sheet

Registered number: 06833976

		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	13		239,500		275,000
Tangible Assets	14		6,270,630		6,307,566

			6,510,130		6,582,566
CURRENT ASSETS
Debtors	16	1,082,620		821,292
Cash at bank and in hand		1,684,624		2,249,406

		2,767,244		3,070,698
Creditors: Amounts Falling Due Within One Year	17	(1,178,508 )		(1,505,719 )

NET CURRENT ASSETS (LIABILITIES)			1,588,736		1,564,979

TOTAL ASSETS LESS CURRENT LIABILITIES			8,098,866		8,147,545

Creditors: Amounts Falling Due After More Than One Year	18		(2,293,510 )		(2,619,862 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	20		(119,200 )		(122,800 )

NET ASSETS			5,686,156		5,404,883

CAPITAL AND RESERVES
Called up share capital	22		100		100
Profit and Loss Account			5,686,056		5,404,783

SHAREHOLDERS' FUNDS			5,686,156		5,404,883

On behalf of the board

Mrs Julie Franks

Director

2 November 2026

The notes on pages 13 to 23 form part of these financial statements.

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Karlyon Care Limited

Company Balance Sheet

As At 31 March 2026

Company Balance Sheet

Registered number: 06833976

		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	14		5,377,375		5,433,337
Investments	15		600		600

			5,377,975		5,433,937
CURRENT ASSETS
Debtors	16	902,869		1,138,631
Cash at bank and in hand		670,060		526,068

		1,572,929		1,664,699
Creditors: Amounts Falling Due Within One Year	17	(473,323 )		(982,096 )

NET CURRENT ASSETS (LIABILITIES)			1,099,606		682,603

TOTAL ASSETS LESS CURRENT LIABILITIES			6,477,581		6,116,540

Creditors: Amounts Falling Due After More Than One Year	18		(2,293,510 )		(2,556,698 )

NET ASSETS			4,184,071		3,559,842

CAPITAL AND RESERVES
Called up share capital	22		100		100
Profit and Loss Account			4,183,971		3,559,742

SHAREHOLDERS' FUNDS			4,184,071		3,559,842

In accordance with section 408(3) of the Companies Act 2006, the company has not presented its own profit and loss account and the related notes. The company's profit for the year was £ 1,596,229 (2025: £ 1,599,800 profit).

On behalf of the board

Mrs Julie Franks

Director

2 November 2026

The notes on pages 13 to 23 form part of these financial statements.

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Karlyon Care Limited

Consolidated Statement of Cash Flows

For The Year Ended 31 March 2026

Consolidated Statement of Cash Flows

		2026	2025
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	1,864,712	2,334,796
Interest paid		(130,861 )	(149,783 )
Tax paid		(778,440 )	(372,877 )

Net cash generated from operating activities		955,411	1,812,136

Cash flows from investing activities
Purchase of tangible assets		(283,460 )	(379,714 )
Proceeds from disposal of tangible assets		51,797	27,500
Interest received		18,492	12,846

Net cash used in investing activities		(213,171 )	(339,368 )

Cash flows from financing activities
Equity dividends paid		(972,000 )	(508,000 )
Repayment of bank borrowings		(263,188 )	(251,998 )
Repayment of finance leases		(71,834 )	(44,054 )

Net cash used in financing activities		(1,307,022 )	(804,052 )



(Decrease)/increase in cash and cash equivalents		(564,782 )	668,716
Cash and cash equivalents at beginning of year	2	2,249,406	1,580,690

Cash and cash equivalents at end of year	2	1,684,624	2,249,406

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Karlyon Care Limited

Notes to the Consolidated Statement of Cash Flows

For The Year Ended 31 March 2026

Notes to the Consolidated Statement of Cash Flows

1. Reconciliation of profit for the financial year to cash generated from operations

	2026	2025
	£	£
Profit for the financial year	1,253,273	1,399,307
Adjustments for:
Tax on profit	476,345	487,240
Interest expense	130,861	149,783
Interest income	(18,492 )	(12,846 )
Amortisation of intangible assets	35,500	35,500
Depreciation of tangible assets	258,647	242,626
Loss/(profit) on disposal of tangible assets	9,952	(9,602)
Movements in working capital:
Increase in trade and other debtors	(253,224 )	(225,729 )
(Decrease)/increase in trade and other creditors	(28,150 )	268,517

Net cash generated from operations	1,864,712	2,334,796

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2026	2025
	£	£
Cash at bank and in hand	1,684,624	2,249,406

3. Analysis of changes in net debt

	As at 1 April 2025	Cash flows	As at 31 March 2026
	£	£	£
Cash at bank and in hand	2,249,406	(564,782)	1,684,624
Finance leases	(115,732)	71,834	(43,898)
Debts falling due within one year	(252,000 )	-	(252,000 )
Debts falling due after more than one year	(2,556,698)	263,188	(2,293,510)

	(675,024)	(229,760)	(904,784)

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Karlyon Care Limited

Notes to the Financial Statements

For The Year Ended 31 March 2026

Notes to the Financial Statements

1. General Information

Karlyon Care Limited is a private company, limited by shares, incorporated in England & Wales, registered number 06833976 . The registered office is 3 Stoke Damerel Business Centre, 5 Church Street, Plymouth, Devon, PL3 4DT.

The presentation currency of the financial statements is the Pound Sterling (£).

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and 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 are rounded to the nearest pound.

2.2. Basis Of Consolidation

The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 31 March 2026.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity, it accounts for that entity as a subsidiary.

Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements.

Any subsidiary undertakings or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively.

Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated income statement. The cumulative amounts of any exchange differences on translation, recognised in equity, are not included in the gain or loss on disposal and are transferred to retained earnings. The gain or loss also includes amounts included in other comprehensive income that are required to be reclassified to profit or loss but excludes those amounts that are not required to be reclassified.

Where control of a subsidiary is achieved in stages, the initial acquisition that gave the group control is accounted for as a business combination. Thereafter where the group increases its controlling interest in the subsidiary the transaction is treated as a transaction between equity holders. Any difference between the fair value of the consideration paid and the carrying amount of the non-controlling interest acquired is recognised directly in equity. No changes are made to the carrying value of assets, liabilities or provisions for contingent liabilities.

2.3. Business Combinations

Business combinations are accounted for by applying the purchase method.

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction.

Contingent consideration is initially recognised at estimated amount where the consideration is probable and can be measured reliably. Where (i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or (ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

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Karlyon Care Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.4. Turnover

Turnover represents net invoiced residential care home fees. Turnover is recognised per night that a room is occupied. Deferred income is recognised when payment is received in advance of the service being provided.

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

2.5. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of 10 years.

2.6. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	2% Straight line on buildings, none on land
Leasehold	2%-10% Straight line
Plant & Machinery	25% Reducing balance
Motor Vehicles	25% Reducing balance
Fixtures & Fittings	25% Reducing balance

2.7. Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

2.8. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over their economic useful lives. Assets acquired under hire purchase contracts are depreciated over their economic useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.

2.9. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.10. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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.

...CONTINUED

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Karlyon Care Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.10. Taxation - continued

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.11. Pensions

The group operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

3. Turnover

Analysis of the group's turnover by geographical market is as follows:

	2026	2025
	£	£
United Kingdom	8,390,633	7,528,982

	8,390,633	7,528,982

4. Other Operating Income

	2026	2025
	£	£
Other operating income	301	20,242

	301	20,242

5. Operating Profit

Group operating profit is stated after charging:

	2026	2025
	£	£
Operating lease rentals	54,281	50,901
Depreciation of tangible fixed assets	258,647	242,626
Amortisation of intangible fixed assets	35,500	35,500

6. Auditor's Remuneration

Remuneration received by the group's auditors and their associates during the year was as follows:

	2026	2025
	£	£
Audit Services
Audit of the group and company's financial statements	33,000	22,980


Other Services
Other non-audit services	4,800	3,780

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Karlyon Care Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

7. Staff Costs

Group staff costs, including directors' remuneration, were as follows:

	2026	2025
	£	£
Wages and salaries	3,678,993	3,335,603
Social security costs	433,190	263,693
Other pension costs	347,726	222,244

	4,459,909	3,821,540

8. Average Number of Employees

Group

Average number of employees, including directors, during the year was as follows:

	2026	2025
Office and administration	4	3
Other departments	158	155

	162	158

Company

Average number of employees, including directors, during the year was: 4 (2025: 3)

9. Directors' remuneration

	2026	2025
	£	£
Emoluments	25,140	9,680
Company contributions to money purchase pension schemes	269,023	155,234

	294,163	164,914

10. Interest Receivable and Similar Income

	2026	2025
	£	£
Other interest receivable	18,492	12,846

11. Interest Payable and Similar Charges

	2026	2025
	£	£
Bank loans and overdrafts	127,176	136,783
Finance charges payable under finance leases and hire purchase contracts	3,685	13,000

	130,861	149,783

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Karlyon Care Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

12. Tax on Profit

The tax charge on the consolidated profit for the year was as follows:

	Tax Rate		2026	2025
	2026	2025	£	£
Current tax
UK Corporation Tax	25.0%	25.0%	479,945	508,440
Deferred Tax
Deferred taxation			(3,600 )	(21,200 )


Total tax charge for the period			476,345	487,240

The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:

	2026	2025
	£	£
Profit before tax	1,729,618	1,886,547

Tax on profit at 25% (UK standard rate)	432,404	471,637
Goodwill/depreciation not allowed for tax	64,662	60,657
Expenses not deductible for tax purposes	10,279	(1,615 )
Capital allowances	(27,400 )	(22,239 )
Deferred tax from unrecognised timing difference from a prior period	(3,600 )	(21,200 )

Total tax charge for the period	476,345	487,240

13. Intangible Assets

Group

	Goodwill
	£
Cost
As at 1 April 2025	961,000

As at 31 March 2026	961,000

Amortisation
As at 1 April 2025	686,000
Provided during the period	35,500

As at 31 March 2026	721,500

Net Book Value
As at 31 March 2026	239,500

As at 1 April 2025	275,000

Company

The company had no intangible fixed assets as at 31 March 2026 or 31 March 2025.

Page 18

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Karlyon Care Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

14. Tangible Assets

Group

	Land & Property
	Freehold	Leasehold	Plant & Machinery	Motor Vehicles	Total
	£	£	£	£	£
Cost
As at 1 April 2025	5,596,308	239,943	901,150	606,575	7,343,976
Additions	-	38,315	91,955	153,190	283,460
Disposals	-	-	-	(142,175 )	(142,175 )

As at 31 March 2026	5,596,308	278,258	993,105	617,590	7,485,261

Depreciation
As at 1 April 2025	162,971	30,601	666,302	176,536	1,036,410
Provided during the period	55,962	15,755	92,802	94,128	258,647
Disposals	-	-	-	(80,426 )	(80,426 )

As at 31 March 2026	218,933	46,356	759,104	190,238	1,214,631

Net Book Value
As at 31 March 2026	5,377,375	231,902	234,001	427,352	6,270,630

As at 1 April 2025	5,433,337	209,342	234,848	430,039	6,307,566

Non-depreciating assets

Land and buildings

Within land and buildings is a carrying amount for land of £2,744,650 (2025: £2,744,650) on which no depreciation has been charged. This is due to the fact that the land value is not expected to reduce over time. The value is reviewed annually for impairments in relation to its condition and recoverable value.

Restriction on title and pledged as security

Land and buildings with a carrying amount of £4,900,534 (2025: £4,951,581) has been pledged as security for the bank loans as disclosed in note 18.

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

	2026	2025
	£	£
Motor Vehicles	33,748	112,012

Company

	Land & Property
	Freehold
	£
Cost
As at 1 April 2025	5,596,308

As at 31 March 2026	5,596,308

...CONTINUED

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Karlyon Care Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

Depreciation
As at 1 April 2025	162,971
Provided during the period	55,962

As at 31 March 2026	218,933

Net Book Value
As at 31 March 2026	5,377,375

As at 1 April 2025	5,433,337

Non-depreciating assets

Land and buildings

Restriction on title and pledged as security

Land and buildings with a carrying amount of £4,900,534 (2025: £4,951,581) has been pledged as security for the bank loans as disclosed in note 18.

15. Investments

Company

	Subsidiaries
	£
Cost or Valuation
As at 1 April 2025	600

As at 31 March 2026	600

Provision
As at 1 April 2025	-

As at 31 March 2026	-

Net Book Value
As at 31 March 2026	600

As at 1 April 2025	600

Subsidiaries

Details of the group's subsidiaries as at 31 March 2026 are as follows:

Name of undertaking	Registered Office	Class of shares held	Direct holding	Indirect holding
Tamara House Care Home Limited	3 Stoke Damerel Business Centre, 5 Church Street, Plymouth, Devon, United Kingdom, PL3 4DT	Ordinary	100.00%	-
Balmain Care Home Limited	3 Stoke Damerel Business Centre, 5 Church Street, Plymouth, Devon, United Kingdom, PL3 4DT	Ordinary	100.00%	-
Trenant House Limited	3 Stoke Damerel Business Centre, 5 Church Street, Plymouth, Devon, United Kingdom, PL3 4DT	Ordinary	100.00%	-

...CONTINUED

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Karlyon Care Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

Alexandra Housing Limited	3 Stoke Damerel Business Centre, 5 Church Street, Plymouth, Devon, United Kingdom, PL3 4DT	Ordinary	100.00%	-
St Minver House Care Home Limited	3 Stoke Damerel Business Centre, 5 Church Street, Plymouth, Devon, United Kingdom, PL3 4DT	Ordinary	100.00%	-
Bethany House Care Home (Plymouth) Limited	3 Stoke Damerel Business Centre, 5 Church Street, Plymouth, Devon, United Kingdom, PL3 4DT	Ordinary	100.00%	-

The aggregate capital and reserves and the result for the year of the subsidiaries listed above was as follows:

	Capital and Reserves	Profit/(loss)
	£	£
Tamara House Care Home Limited	164,193	223,033
Balmain Care Home Limited	360,084	141,635
Trenant House Limited	125,171	92,588
Alexandra Housing Limited	138,900	109,959
St Minver House Care Home Limited	387,719	387,044
Bethany House Care Home (Plymouth) Limited	326,615	202,783

16. Debtors

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Due within one year
Trade debtors	136,915	59,859	-	-
Amounts owed by group undertakings	-	-	-	379,292
Other debtors	945,705	761,433	902,869	759,339

	1,082,620	821,292	902,869	1,138,631

17. Creditors: Amounts Falling Due Within One Year

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Net obligations under finance lease and hire purchase contracts	43,898	52,568	-	-
Trade creditors	191,661	88,779	-	900
Bank loans and overdrafts	252,000	252,000	252,000	252,000
Amounts owed to group undertakings	-	-	192,414	671,287
Other creditors	57,411	69,114	1,778	1,330
Corporation tax	218,049	508,440	20,831	52,019
Taxation and social security	86,165	121,023	-	-
Accruals and deferred income	329,324	413,795	6,300	4,560

	1,178,508	1,505,719	473,323	982,096

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Karlyon Care Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

18. Creditors: Amounts Falling Due After More Than One Year

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Net obligations under finance lease and hire purchase contracts	-	63,164	-	-
Bank loans	2,293,510	2,556,698	2,293,510	2,556,698

	2,293,510	2,619,862	2,293,510	2,556,698

Of the creditors falling due after more than one year the following amounts are due after more than five years.

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Bank loans	1,093,493	1,403,018	-	1,403,018

Bank Borrowings

NatWest fixed rate loan is denominated in Pounds with a nominal interest rate of 3.97%, and the final instalment is due on 31 March 2032. The carrying amount at year end is £1,291,146 (2025: £1,478,278).

There is a fixed and floating charge held over the assets of Karlyon Care Limited and its subsidiaries, excluding St Minver House Care Home Limited and Bethany House Care Home (Plymouth) Limited, for this loan.

NatWest fixed rate loan is denominated in Pounds with a nominal interest rate of 5%, and the final instalment is due on 31 October 2037. The carrying amount at year end is £1,254,364 (2025: £1,330,420).

There is a fixed and floating charge held over the assets of Karlyon Care Limited and its subsidiaries, excluding Bethany House Care Home (Plymouth) Limited, for this loan.

19. Obligations Under Finance Leases and Hire Purchase

	Group
	2026	2025
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	43,898	52,568
Later than one year and not later than five years	-	63,164

	43,898	115,732

	43,898	115,732

These are secured against the asset to which they were used to finance. The value of the assets held on security is disclosed in note 14.

20. Deferred Taxation

The provision for deferred tax is made up as follows:

	2026	2025
	£	£
Other timing differences	119,200	122,800

Page 22

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Karlyon Care Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

21. Provisions for Liabilities

Group
	Deferred Tax	Total
	£	£
As at 1 April 2025	122,800	122,800
Deferred taxation	(3,600 )	(3,600 )

Balance at 31 March 2026	119,200	119,200

22. Share Capital

	2026	2025
Allotted, called up and fully paid	£	£
100 Ordinary Shares of £ 1.00 each	100	100

23. Pension Commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.

During the year the charge to profit or loss in respect of defined contribution schemes was £347,726 (2025: £222,244).

24. Directors Advances, Credits and Guarantees

Included within Debtors are the following loans to directors:

	As at 1 April 2025	Amounts advanced	Amounts repaid	Amounts written off	As at 31 March 2026
	£	£	£	£	£
Mrs Julie Franks	379,670	646,155	(574,391 )	-	451,434
Mr Peter Franks	379,670	646,156	(574,391 )	-	451,435

The above loan is unsecured and repayable on demand. Interest is charged by the company at the HMRC official rate for beneficial loan arrangements.

25. Dividends

	2026	2025
	£	£
On equity shares:
Interim dividend paid	972,000	508,000

26. Controlling Parties

The company has no ultimate controlling party. Joint control is exercised by Mr Peter Franks and Mrs Julie Franks.

Page 23