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

The directors are pleased with the performance of the company for the year ended 31 March 2026, having achieved another set of strong year on year results. Revenue growth helped mitigate the financial impact on UK employers arising from the changes as set out in the 2024 Autumn Statement, the gross profit margin was consequently slightly lower than the prior year as a result.

The company outperformed budgeted expectation in terms of profit before tax, having achieved significant cost savings in the period, a reflection of the heightened focus of the established management team as the business faced into its challenges. Continued high staff retention, low vacancy numbers and above industry standard occupancy levels were also maintained.

The board continues to be focussed on the company’s core values and vision, utilising every available resource to deliver care above and beyond any other provider. Company staffing levels have been consistently strong across the year, driving down the reliance on agency staff to lows not seen before, supporting the delivery of the company’s vision through a well-trained and motivated workforce. The directors very much value the contribution of its staff, which is reflected in the decision to pay above the National Living Wage in the recent annual pay award.

The directors are committed to the delivery of the company’s strategic vision, remaining close to the core operation whilst critically assessing the industry risks and opportunities in the context of the wider economic climate. Growth remains a key strategic objective through the addition of a tenth home to the existing portfolio, one that enhances the company’s offering, and aligns completely with the company’s vision. The directors are very pleased to report that an exciting development opportunity has been successfully sourced accordingly, a significant project that will pave the way to what tomorrow’s care will look like, truly differentiating the company within its marketplace.

The board invested in its marketing capability in the year, bringing in dedicated resource to enhance and optimise the existing strategy, raising the company’s profile and elevating its digital reach. The board is vigilant to new operators, benchmarking fees and monitoring the competitor offering, it remains confident that the company will continue to be a market leader in terms of care delivery.

Interest rates dropped by 75 basis points in the first nine months of the year but the Bank of England have held the rate at 3.75% since, in anticipation of inflationary pressures arising from the war in Iran. The board have monitored the situation with caution, particularly in relation to any planned additional borrowing, and to help mitigate this risk, the company has continued to use surplus cash to significantly reduce its level of debt.

Supply chain management has been a noteworthy area of focus in the year, with numerous critical contracts having been successfully renegotiated, realising cost reductions and service improvements that will carry forward into future years. The board recognise the value of strong supplier relations, adherence to payment terms, swift dispute resolution, and maintaining honest and open communication are key to helping navigate the challenges of the current uncertain economic landscape.

Scarcity of quality care home staff remains an industry wide challenge; our dedicated recruitment function coupled with our staff engagement focus continues to deliver industry leading results. The board are very much committed to its staff retention strategy and recognises the importance of an established, well-trained, appreciated workforce.

Prevailing challenges in the world economy, the impact of ongoing conflict, and the evolving political landscape all fuel significant levels of uncertainty. The company continues to be vigilant and proactive in its approach, working closely with its partners in managing operational issues as they arise, and mitigating any adverse impact.

The company is widely recognised for providing first class service and care for the elderly, offering in excess of 400 beds in the areas of Nursing, Dementia and Residential care.

The competence, capability and compassion of our staff continue to be a great asset to the company. There is a strong focus on developing qualified staff from within the organisation, coupled with robust recruitment and screening processes, ensuring we get the best staff from the external job market.

Staff welfare remains a priority for the company, utilising staff surveys and numerous staff engagement events to encourage a collaborative, inclusive environment. We also continue to offer a health and wellbeing confidential support service, which is able to offer advice on health, finance, legal and mental health issues.

Ongoing investment in our market leading HR & Payroll system, Dayforce, continues to deliver numerous staff orientated benefits; including real time visibility of, and on-demand access to, their earnings. The system also enables staff to ‘bid’ for extra shifts, manages their training and development needs, as well as their performance management.

The directors rolled out a companywide Equality, Diversity and Inclusion programme during the year, which was received well by all staff, and now forms part of its induction and on-boarding programme. The company values are paramount, as is fostering a culture of inclusion, where incivility has no place.

Continuous investment in the infrastructure of the business, maintaining a first-rate safe environment for our residents and staff is of upmost importance. The company also continues to invest in sustainable, renewable, ecologically aware initiatives, including increasing and maintaining its extensive photovoltaic installations.

The directors and shareholders of the business are committed to maintaining and enhancing the company’s reputation within the care sector.

On behalf of the board

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

The results for the year are set out on page 9.

Dividends totalling £591,833 (2025 - £340,000) were declared during the period. The directors do not recommend payment of a final dividend.

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

The company operates a number of policies to ensure there is sufficient liquidity and cash. Regular cash flow forecasts are prepared to ensure the company is able to cover its interest payments.

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests. It operates a companywide employee survey and undertakes numerous informal social events.

Information of 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 company's performance.

The business has built its success over the years with a significant contribution from the employees of the business, with a significant number of employees with long service, some of which having worked their way up to home management. Employee renumeration is reviewed regularly and the company has a policy to pay its staff at the level of the National Living Wage as a minimum.

The managers of each of the homes are encouraged to meet regularly with their staff. The directors and senior leadership team also ensure that there are regular meetings with the managers, and that any training required for them is implemented.

Business relationships

The directors have a philosophy of fairness and honesty with all our residents and their families and decisions are made always with regard to the wellbeing of the home residents in conjunction with relatives.

The directors have built a business where there are a significant number of long-term suppliers to the business. The company also has robust systems in place whereby suppliers are paid within their credit terms and it reports separately on this. The company will offer equal terms to new and existing suppliers.

The company continues to support numerous local and national charities, both through activities within the homes themselves and through director approved donations, Turning Tides homeless charity was supported this year.

The directors have detailed future developments requiring disclosure within the strategic report.

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

In line with the Government's new Streamlined Energy and Carbon Reporting (SECR) policy, the company has disclosed the following in respect of its annual energy consumption. The energy data has been compiled from supplier invoices and calculated using UK Government GHG Conversion Factors.

The company continues to increase and maintain its extensive installations of photovoltaic equipment in order to maximise the solar electricity generated and used within its homes.

Eliminating waste continued to be a focus for the company in the year, monitoring type, quantity and disposal methodology of all waste. The company constantly seeks more sustainable solutions.

Proactive management of business travel is ongoing, minimising face to face meetings where possible, and coordinating trips to address multiple needs. The management of the maintenance team, who use the fleet of company vans, is also focussed on eliminating unnecessary trips. The company has increased its number of EV charge points across the estate during the year, and is committed to evaluating when the company fleet should move to Electric.

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 company’s auditor 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 company’s auditor is aware of that information.

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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

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

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

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

We have audited the financial statements of South Coast Nursing Homes Limited (the 'company') for the year ended 31 March 2026 which comprise the Statement of Comprehensive Income, the Statement Of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and 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 company's affairs as at 31 March 2026 and of its 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 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 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 company and its 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, or returns adequate for our audit have not been received from branches not visited by us; or

• the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 in respect of irregularities, including fraud. the extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;

• Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and

• Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law, the valuation of investment properties and compliance with the UK Companies Act.

In addition to the above, our procedures to respond to risks identified included the following:

• Making enquiries of management about any known or suspected instances of non-compliance with laws, Care Quality Commission and other regulations, and fraud;

• Reviewing minutes of meetings of the board and senior management;

• Reading correspondence with regulators;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to depreciation and embedded assets included within freehold property; and

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

South Coast Nursing Homes Limited is a company limited by shares incorporated in England and Wales. The registered office is Winchester House, 34 Crescent Road, Worthing, West Sussex, BN11 1RL.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.  Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.true

Revenue represents the total invoice value of residential room fees and other services recognised net of trade discounts, other sales taxes, VAT and on an accruals basis.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold land and assets under construction are not depreciated. Depreciation will start to be charged on assets under construction once the construction is complete.

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

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

At each reporting period end date, the company 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

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

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and loans from related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at the transaction price (including transaction costs) and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire.

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

The 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 net profit as reported in the income statement 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 company’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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

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

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

The company operates in one principal activity, that of the supply of services, which is wholly undertaken in the United Kingdom. Revenue is therefore made up 100% by the fees in relation to the supply of these services.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2025 - 2).

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

Their aggregate remuneration comprised:

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

The company applied the transitional arrangements of Section 35 of FRS 102 and used a previous valuation as the deemed cost for certain freehold land and buildings. These buildings are being depreciated from the valuation date. As the assets are being depreciated or sold an appropriate transfer is made from the revaluation reserve to retained earnings.

If assets were stated on an historical cost basis rather than a deemed cost basis, the total amounts included would have been as follows:

The fair value of the investment properties has been arrived at on the basis of a valuation carried out by the directors at the reporting date, who deemed that there had been no material movements in the market values between the dates of acquisition and the reporting date.

Included within other receivables is the overdrawn directors’ current account balances of £12,400 (2025 - £Nil).

Included within other payables is a directors' current account balance of £819 (2025 - £367,835).

The bank loan is subject to a rate of interest being SONIA plus 1.4%.

The bank loan is secured by the way of first legal charges over the company's freehold land and buildings as well as a debenture over all assets of the company.

Deferred tax assets and liabilities are offset where the 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:

The directors have considered the deferred tax liabilities noted above and concluded that it is not possible to state the estimated liabilities which will reverse within the next 12 months. This is due to the level of reversal being dependant on events which are not yet known.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the statement of financial position date £64,784 (2025 - £85,347) of pension costs remained unpaid.

Ordinary shares have attached to them full voting and dividend rights.

The preferred ordinary shares of £1 each are non-voting and have a preferred ordinary share entitlement of £1,000 per share.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The remuneration of key management personnel is as follows.

During the year, dividends were declared to shareholders who are also directors totalling £591,833 (2025 - £340,000).

During the year the company was charged £455,000 (2025 - £755,000) in management charges from a connected company under the control of the directors. At the statement of financial position date £200,000 was due to the connected company (2025 - £122,081), which is included within other payables.

During the year, the company employed two close family members of the directors, who received combined remuneration of £145,020 (2025 - £131,442).

During the comparative period, the company purchased an investment property from a director for £285,000. There were no such transactions during the period ended 31 March 2026.

Advances or credits have been granted by the company to its directors as follows:

Amounts owed by the company to its directors as follows:

The company is jointly controlled by its Board of Directors, who are also shareholders. There is no ultimate controlling party.