REGISTERED NUMBER: 03275554 (England and Wales)

EXTEL LIMITED

T/A

CARE THROUGH THE MILLENNIUM

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Profit and Loss Account

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

Mr C M Higgins

Mrs S J Higgins

Mr T Brooks

Mrs J Nash

SECRETARY:

Mrs S J Higgins

REGISTERED OFFICE:

Primrose Hill Farm

Meadowsweet Avenue

Kings Norton

Birmingham

West Midlands

B38 9QW

REGISTERED NUMBER:

03275554 (England and Wales)

SENIOR STATUTORY AUDITOR:

Harendra Kishorlal Shah (FCCA)

AUDITORS:

Harendra Kishorlal Shah (FCCA) (Senior Auditor)

For and behalf of Shah & Co (Accountants) Ltd

Chartered Accountants & Statutory Auditors

Cash's Business Centre

1st Floor

228 Widdrington Road

Coventry

West Midlands

CV1 4PB

The directors present their strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

The objective of the company is to provide high quality care and support services to people with challenging behaviour, both within its residential care homes and those under the 'Supported Living Service', in Birmingham and neighbouring areas. This is achieved through the implementation of robust company policies and procedures, employment of qualified and experienced staff in key positions of care, provision of ongoing training and support to staff and, as a registered care provider with the Care Quality Commission (CQC), compliance with regulatory requirements.

On 10 July 2015, the company changed from being a family owned business in the hands of two shareholders, to becoming a majority employee owned company. On 21 December 2022, there was a change of ownership from being a majority employee owned company and back to a family owned business with the two shareholders. Subsequently on 30 December 2024, the company carried out a share buy-back of 12 ordinary shares, effectively transferring full ownership to one shareholder, Mr C M Higgins. The authorized share capital remain as 100, however the allotted and issued shares decreased to 88 during the year (2024: 100). Despite the structural change, there was complete continuity of business activity with no interruption

The company achieved higher turnover during the year and maintains a strong net asset position. Additionally, average occupancy in residential care facilities improved over the period, with a 98% occupancy rate. Nearly all the company's turnover is derived from UK Government funded Local Authorities and Clinical Commissioning Groups (CCGs). The company continued to provide quality care and support to its service users and funding was adequate to meet their need despite the ongoing economic challenges such as cost of living crisis and inflation.

On 20 June 2025, the company obtained a new loan facility with its previous lender, HSBC Bank Plc, with a five-year maturity to support the continued expansion, growth, and stabilization of its business operations.

The company is well placed to continue its operational activities through this period with a healthy cash balance. The directors are confident that the company is in a good position to continue performing well by increasing its occupancy levels and meet its debts as and when they fall due.

BUSINESS STRATEGY

The company's success to date is largely the result of providing high quality care and support services and attracting new service users to maximise occupancy levels within its residential care homes, whilst maintaining compliance with regulatory requirements.

Investment in the Supported Living Service continues to remain a key strategic development for the company which will continue to improve its profitability and position.

The company continually attracts expressions of interest from friends and families of potential service users including referrals from Local Authorities and CCGs.

The directors will also consider diversification into new relevant markets based on geography and type of service to compliment the existing services provided.

KEY PERFORMANCE INDICATORS

The directors consider the most appropriate key performance indicators to be Turnover, Gross Profit, Operating Profit, Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) and liquidity. The results of these key performance indicators for the year were as follows:

2025

2024

£

£

Turnover

17.2m

16.7m

Gross profit

6.5m

7.1m

Operating profit

3.1m

3.8m

EBITDA

3.5m

4.2m

Cash at bank and in hand

2.5m

6.8m

Gross profit margin for the year was 38.0% (2024: 42.6%).

Operating profit margin for the year was 18.2% (2024: 23.0%).

PRINCIPAL RISKS AND UNCERTAINTIES

There are various risks and uncertainties affecting the business some of which are inherent to the industry in which the company operates such as economic instability and healthcare and social care challenges. There are increased pressures in the healthcare system and funding shortages however, the directors believe that despite these significant challenges from the wider economy, the company is well placed to maintain the high quality care and support it provides to its service users and therefore attract expressions of interest from various sources and maximise occupancy levels. The directors have carried out their risk assessments and have taken all reasonable steps to mitigate those risks. The specialist nature of the care homes market in the UK and increasing external regulation continues to benefit quality care providers such as Extel Limited.

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprises trade and other debtors, trade creditors, cash deposits and bank borrowing. The company manages its risks in relation to these as follows:

Liquidity risk

The company manages its cash and borrowing requirements so as to maximise interest income and minimise interest expense whilst ensuring that the company has sufficient liquid resources to meet the operating needs of the business.

Credit risk

The company's customers are predominantly public sector councils however there are some private customers who supplement public sector funding. Both are provided with credit and are encouraged to settle their invoices within 28 days, from the inception of raising fee invoices. Monies due are monitored on a on-going basis and chased as part of the company credit control procedures. There are instances when cost of care package for individual service user is under review with the customer and invoices are continually raised at the current rate for payment which are put on hold until a new cost is agreed. Although the company continues to chase payment for such invoices the directors acknowledge there can be a delay in payment.

Price risk

The company conducts an initial assessment of all potential service users to assess their individual needs prior to admission. Bespoke care package is based around a person centred approach. Therefore, the company does not have material exposure to price risks.

Regulatory risk

The company is a registered care service provider and therefore regulated by the Care Quality Commission (CQC), the independent regulator of health and social care in England. The company ensures the provision of high quality care and support to its service users at all times. Any serious breach of regulatory requirements could result in public censure, penalties and/or removal of its registration.

Internal control risk

The company employs external consultant to review the system of internal controls both financial and non-financial. These include controls designated to ensure proper accounting records are maintained.

FUTURE DEVELOPMENTS

The company remains fortunate not to have been significantly affected, financially or otherwise by the ongoing economic instability and healthcare and social care challenges, for which it is able to access government financial support as and when required. By keeping the standard of the care homes at a high level together with providing quality care and support service the business will continue to attract new service users and maximise occupancy levels.

ON BEHALF OF THE BOARD:

Mr C M Higgins - Director

25 November 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of high quality care and support services to people with challenging behaviour, both within in its residential care homes and those under the supported living service in Birmingham and neighbouring areas.

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of £2613.63 per share.

The total distribution of dividends for the year ended 31 March 2025 will be £ 230,000 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

Mr C M Higgins

Mrs S J Higgins

Mr T Brooks

Mrs J Nash

ENGAGEMENT WITH EMPLOYEES

During the financial year the company continued with its arrangements aimed at:

- providing employees systematically with information on matters of concern to them as employees;

- consulting employees or their representatives on a regular basis so that their views can be taken into account in

making decisions which affect their interests;

- encouraging the involvement of employees in the company's performance through employee benefits or by some

other means; and

- achieving a common awareness on the part of all employees of the financial and economic factors affecting the

performance of the company;

DISABLED PERSONS

Full and fair consideration is given to applications for employment from disabled persons and to continuing the employment of those who become disabled while employed. The policy is to give equal opportunity for training, career development and promotion.

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with Section 414C(11) of the Companies Act 2006, the Directors have set out certain information in the Strategic Report which would otherwise be required by Schedule 7 to be contained in the Report of the Directors. It has done so in respect of principal risks and uncertainties, financial instruments and future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Shah & Co (Accountants) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr C M Higgins - Director

25 November 2025

Opinion

We have audited the financial statements of Extel Limited (the 'company') for the year ended 31 March 2025 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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:

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. However, the primary responsibility for the prevention and detection of fraud and other irregularities rests with both management and those charged with governance of the company.

Based on our understanding of the company and industry in which it operates, we identified that the principal risks of

non-compliance with laws and regulations relate to the Care Quality Commission regulations, and we considered the

extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements of the company and determined that the most significant are those that relate to the United Kingdom Generally Accepted Accounting Practice, Companies Act 2006 and UK corporate taxation laws.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements

(including the risk of override of controls) and determined that the principal risks were related to revenue recognition,

and posting inappropriate journal entries to manipulate financial results. Audit procedures performed included:

- Discussions with management and those charged with governance including consideration of known or suspected

instances of non-compliance with laws and regulation and fraud;

- Review of correspondence between the company and regulator in relation to compliance with laws and regulation;

- Review of correspondence between the company and tax authorities;

- Carry out testing, on a sample basis, on the company's main income and expenditure cycle and consider the impact

on our assessment of irregularities;

- Identifying and understanding related party relationships and transactions including rationale for any significant

transactions outside the normal course of business;

- Identifying and testing of significant journal entries throughout the year and at the year-end;

- Review of financial statement disclosures and agreeing these to underlying supporting evidence for compliance

with applicable laws and regulations;

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Harendra Kishorlal Shah (FCCA) (Senior Statutory Auditor)

for and on behalf of Harendra Kishorlal Shah (FCCA) (Senior Auditor)

For and behalf of Shah & Co (Accountants) Ltd

Chartered Accountants & Statutory Auditors

Cash's Business Centre

1st Floor

228 Widdrington Road

Coventry

West Midlands

CV1 4PB

25 November 2025

TURNOVER

3

17,219,520

16,712,142

Cost of sales

(10,678,397

)

(9,594,651

)

GROSS PROFIT

6,541,123

7,117,491

Administrative expenses

(3,404,700

)

(3,276,579

)

3,136,423

3,840,912

Other operating income

4

675

1,407

OPERATING PROFIT

3,137,098

3,842,319

Profit/loss on sale of tangibl

e fixed assets

6

-

(5,960

)

3,137,098

3,836,359

Interest receivable and similar income

162,140

93,072

3,299,238

3,929,431

Interest payable and similar expenses

7

(370,606

)

(388,102

)

PROFIT BEFORE TAXATION

8

2,928,632

3,541,329

Tax on profit

9

(731,518

)

(958,108

)

PROFIT FOR THE FINANCIAL YEAR

2,197,114

2,583,221

PROFIT FOR THE YEAR

2,197,114

2,583,221

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,197,114

2,583,221

FIXED ASSETS

Intangible assets

11

9,442

14,164

Tangible assets

12

5,115,728

5,267,672

5,125,170

5,281,836

CURRENT ASSETS

Debtors

13

5,438,089

2,443,801

Cash at bank and in hand

14

2,532,649

6,757,907

7,970,738

9,201,708

CREDITORS

Amounts falling due within one year

15

(4,453,993

)

(2,958,001

)

NET CURRENT ASSETS

3,516,745

6,243,707

TOTAL ASSETS LESS CURRENT LIABILITIES

8,641,915

11,525,543

CREDITORS

Amounts falling due after more than one year

16

(25,783

)

(2,757,598

)

PROVISIONS FOR LIABILITIES

20

(171,305

)

(188,039

)

NET ASSETS

8,444,827

8,579,906

CAPITAL AND RESERVES

Called up share capital

21

88

100

Capital redemption reserve

22

12

-

Retained earnings

22

8,444,727

8,579,806

SHAREHOLDERS' FUNDS

8,444,827

8,579,906

The financial statements were approved by the Board of Directors and authorised for issue on 25 November 2025 and were signed on its behalf by:

Mr C M Higgins - Director

Mr T Brooks - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

100

9,484,226

-

9,484,326

Changes in equity

Dividends

-

(3,360,000

)

-

(3,360,000

)

Total comprehensive income

-

2,583,221

-

2,583,221

Gifts to Employee Ownership

Trust

-

(127,641

)

-

(127,641

)

Balance at 31 March 2024

100

8,579,806

-

8,579,906

Changes in equity

Issue of share capital

(12

)

-

-

(12

)

Dividends

-

(230,000

)

-

(230,000

)

Total comprehensive income

-

247,114

12

247,126

Gifts to Employee Ownership

Trust

-

(152,193

)

-

(152,193

)

Balance at 31 March 2025

88

8,444,727

12

8,444,827

Cash flows from operating activities

Cash generated from operations

1

(41,337

)

2,567,998

Interest paid

(366,908

)

(386,124

)

Interest element of hire purchase payments paid

(3,698

)

(1,978

)

Tax paid

(1,380,331

)

(424,721

)

Government grants

-

602

Net cash from operating activities

(1,792,274

)

1,755,777

Cash flows from investing activities

Purchase of tangible fixed assets

(53,885

)

(89,105

)

Sale of tangible fixed assets

413

(1,057

)

Interest received

162,140

93,072

Net cash from investing activities

108,668

2,910

Cash flows from financing activities

Bank loan capital repayments

(178,829

)

(84,802

)

Hire purchase capital repayments

(22,708

)

(6,625

)

Amount introduced by directors

856,099

3,560,000

Amount withdrawn by directors

(864,021

)

(519,686

)

Share issue

(12

)

-

Share buyback

(1,949,988

)

-

Equity dividends paid

(230,000

)

(3,360,000

)

Gifts to Employee Ownership Trust paid

(152,193

)

(127,641

)

Net cash from financing activities

(2,541,652

)

(538,754

)

(Decrease)/increase in cash and cash equivalents

(4,225,258

)

1,219,933

Cash and cash equivalents at beginning of year

2

6,757,907

5,537,974

Cash and cash equivalents at end of year

2

2,532,649

6,757,907

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

31.3.25

31.3.24

£

£

Profit before taxation

2,928,632

3,541,329

Depreciation charges

207,058

216,024

Loss on disposal of fixed assets

3,082

-

Government grants

-

(602

)

Finance costs

370,606

388,102

Finance income

(162,140

)

(93,072

)

3,347,238

4,051,781

Increase in trade and other debtors

(2,994,288

)

(535,030

)

Decrease in trade and other creditors

(394,287

)

(948,753

)

Cash generated from operations

(41,337

)

2,567,998

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

2,532,649

6,757,907

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

6,757,907

5,537,974

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

6,757,907

(4,225,258

)

2,532,649

6,757,907

(4,225,258

)

2,532,649

Debt

Finance leases

(73,975

)

22,708

(51,267

)

Debts falling due within 1 year

(178,677

)

(2,527,504

)

(2,706,181

)

Debts falling due after 1 year

(2,706,331

)

2,706,331

-

(2,958,983

)

201,535

(2,757,448

)

Total

3,798,924

(4,023,723

)

(224,799

)

1.	STATUTORY INFORMATION

Extel Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

Management have conducted a going concern assessment, taking into account all plausible downside scenarios, including reduced occupancy levels, inflationary pressures, and rising labour costs. Under all considered scenarios, the company was able to maintain sufficient liquidity to continue operations, generate positive EBITDA, and comply with its covenant requirements.

On 11 May 2021, the company successfully secured a £3,333,000 funding for the re-finance of its bank loan with HSBC Bank Plc. On the same date, the company also entered into a new cross guarantee on the £2,841,000 bank borrowing of CTTM Trustees Limited with the same lender. Both loans were on a four year term, with both loans having matured and fully repaid on June 2025. Subsequently, on 20 June 2025, the company secured a new loan facility of £4,980,000 from the same lender, with a maturity period of five years.

The directors continually monitor the impact of rising factors such as costs, inflation, operational cost pressures and occupancy demands on the company with information available to it, and do not believe it will affect the company's ability to continue its operations for the foreseeable future. The company has utilised government support where applicable and appropriate.

The directors have reviewed the company's financial forecast and they show that the company has adequate cash available during the foreseeable future.

At the date of approving these financial statements, the directors are satisfied that the company will continue its activities for a period of at least twelve months from the date of signing these financial statements. On that basis, the directors have prepared these financial statements on a going concern basis.

Turnover

Turnover represents fees receivable in respect of residential care and supported living services provided to service users.

Turnover is generally recognised to the extent that performance occurs and is measured at fair value of the fees receivable. Fees not invoiced to customers by the balance sheet date are included in debtors as accrued income. Fees invoiced to customers in advance of a future period is included in creditors as deferred income.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Computer software is being amortised evenly over its estimated useful life.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold land and buildings

-

2% on cost

Improvements to property

-

2% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% on reducing balance

All fixed assets are stated at cost. Each purchase is considered on its merits as to whether it is a fixed asset irrespective of value.

Freehold land is not depreciated. Freehold buildings represents residential care homes owned by the company and occupied by service users.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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