FOR THE YEAR ENDED 30 JUNE 2021
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92 HIGHER DRIVE LIMITED
COMPANY INFORMATION
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92 HIGHER DRIVE LIMITED
CONTENTS
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92 HIGHER DRIVE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2021
Year on year turnover within the company reduced from £7.08m to £6.85m. Profit before tax, was £168k compared to £220k in 2020.
The directors consider that annual fluctuations in financial performance are primarily linked to the impact of COVID-19 on admissions and operational costs as well as factors such as the impact of resident mix on the level of required care for residents. Despite the impact of COVID-19, the care home continued to operate at a high level of occupancy throughout the year maximising utilisation of the available bed space. The directors expect the impact of COVID-19 and the uncertainty surrounding Brexit to have an impact on its base costs but feel that that the company is well placed to see it through these short-term fluctuations.
The management of the business and the execution of the company’s strategy are subject to a number of risks.
The company manages its cash, borrowing requirements and interest rate risk through variable rate loan finance in the overall group. In common with other businesses operating in the sector, the company’s future prospects are reliant on maintaining strong collaborative links with the local Clinical Commissioning Groups (CCGs) from whom residents are primarily referred. The directors have worked to establish productive and proactive dialogues to ensure that these relationships are maintained. Maintaining the highest standards of residential care is dependent on the ability to recruit and retain a highly qualified and motivated workforce. The directors are confident that they have the right team in place to ensure that the company is viewed as a desirable employer in a competitive labour market. The directors implemented a large overseas recruitment campaign which has resulted in a significant number of nurses joining the company, further strengthening our workforce. The effect of COVID-19 continues to impact on operational costs, especially PPE, which saw a quadrupling in costs. This has been further exacerbated by the need to keep clinically required stock at a higher-than-normal level due to the ongoing impact of COVID-19 and Brexit on supplies. However, the directors have developed robust stock management strategies to help minimise these impacts. The directors envisage supply chains stabilising and the NHS PPE Portal becoming better established over the course of the pandemic which will further mitigate the impact.
The directors consider that turnover, net profit and cash generated from operations are the financial key performance indicators of the business.
The key non-financial performance indicator is occupancy rates in the available 45 beds space – this was at 77% for the year (82% in the previous year). Although below optimal, the directors attribute this to the home temporarily closing to new admissions due to the impact of COVID-19 and had returned to 90% occupancy by the balance sheet date. The home has since re-opened to new admissions and the occupancy level has now increased to similar levels to that seen in the prior year.
We continue to seek new opportunities for further growth as well as focusing on maintaining the highest levels of residential care at Highfield House.
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92 HIGHER DRIVE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
This report was approved by the board on 31 March 2022
and signed on its behalf.
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92 HIGHER DRIVE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2021
The directors present their report and the financial statements for the year ended 30 June 2021.
The profit for the year, after taxation, amounted to £
173,737
(2020:
£
177,533
)
.
The directors who served during the year were:
The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 requires a Strategic Report to be prepared. Where mandatory disclosures in the Directors' Report are considered by the directors to be of strategic importance, these may alternatively be contained in the Strategic Report, provided that the Directors' Report contains a statement disclosing which information has been placed there.
The auditors, Bishop Fleming Bath Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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92 HIGHER DRIVE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2021
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements 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 to 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.
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92 HIGHER DRIVE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
92 HIGHER DRIVE LIMITED
We have audited the financial statements of 92 Higher Drive Limited (the 'company') for the year ended 30 June 2021, which comprise the Statement of income and retained earnings, the Statement of financial position
and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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92 HIGHER DRIVE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
92 HIGHER DRIVE LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the 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.
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92 HIGHER DRIVE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
92 HIGHER DRIVE LIMITED (CONTINUED)
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 Auditors' 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:
We have considered the following:
∙
The nature of the industry and sector, control environment and business performance;
∙
Results of our enquires of management and directors in relation to their own identification and assessment of the risks of irregularities within the Company; and
∙
Any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or noncompliance with laws and regulations.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the areas of high risk to be in relation to revenue recognition. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Reporting Standard 102 and UK tax legislation. In addition we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental for the Company’s ability to operate or avoid a material penalty. These included the provisions pertaining to the employment of overseas workers, the Care Quality Commission, safeguarding regulations, health and safety regulations; employment legislation; and data protection laws. Our audit procedures performed to respond to the risks identified included, but were not limited to:
∙
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙
Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
∙
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
∙
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
∙
Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud; and
∙
Challenging assumptions and judgements made by management in their significant accounting estimates.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, |
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92 HIGHER DRIVE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
92 HIGHER DRIVE LIMITED (CONTINUED)
recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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 Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
10 Temple Back
BS1 6FL
5 May 2022
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92 HIGHER DRIVE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2021
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92 HIGHER DRIVE LIMITED
REGISTERED NUMBER:
01906108
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on form part of these financial statements.
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
92 Higher Drive Limited is a limited liability company incorporated in England. The registered office is 2-6 Uffington Road, West Norwood, London, SE27 0RW.
2.
ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Fairlie Holdings Limited as at 30 June 2021 and these financial statements may be obtained from Companies House.
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
The revenue streams for the company are provided by Clinical Commissioning Groups (CCGs) and Social Services and so have remained relatively strong and are forecast to continue to do so for the foreseeable future. Following on from the Covid 19 outbreak, the company has introduced various measures to ensure the safety of its patients and therefore its revenue streams.
The Company is a part of the Fairlie Holdings Limited group (“the Group”) and the Group has two distinct and separate funding groups, one of which has borrowings from Barclays (“the Barclays borrowing group”) and the other which has borrowings from Triodos (“the Triodos borrowing group”). The Company is a member of the Triodos borrowing group, and as disclosed in Note 14, cross guarantees exist amongst the members of the Triodos borrowing group. The response to Covid 19 as noted above and in the director's report ensures that the group has the ability to continue trading profitably and in a cash generative manner. The directors have prepared forecasts which allow for the additional costs of operation caused by COVID-19 and considered the impact of any outbreaks of COVID-19 within the homes that the wider group operates. The directors have also updated forecasts to reflect delays caused to the development of the group’s new properties. The directors have also updated forecasts to reflect delays caused to the development of the group’s new properties. Due to the breach of a financial covenant attaching to the Triodos borrowing facilities at 30 June 2021 (see note 14) the loan has been reclassified as repayable on demand. No formal waiver of enforcement action as a result of this breach has been obtained by the directors that would impact disclosure at the balance sheet date. The lender has otherwise agreed not to take action to recall the loan and has continued to advance funds as required for relevant projects that are ongoing in the group. Notwithstanding the covenant breach, based on these forecasts, the directors are satisfied that the Company and other companies in the Triodos borrowing group has sufficient resources to meet its debt finance service and working capital requirements. Certain companies within the Triodos borrowing group have also received funding from companies within the Barclays borrowing group. Companies within the Triodos borrowing group are dependent upon the construed availability of these advances, which is in turn dependent upon the companies within the Barclays borrowing group continuing as going concerns. The directors expect this to be the case. The directors therefore consider that it is appropriate to prepare the accounts on a going concern basis. |
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
There were no significant judgments or estimates applied in the preparation of the financial statements.
The whole of the turnover is attributable to the company's principal activity.
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
There were no factors that may affect future tax charges.
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
13.
DEFERRED TAXATION (CONTINUED)
The company is subject to a fixed charge over its assets in favour of Triodos Bank plc with Higher Drive Nursing Home (Holdings) Limited, Abercorn Property Limited, Woodstown House Property Limited and by a cross guarantee with Woodstown Healthcare Limited and Abercorn House Healthcare Limited fellow group companies, on loans totalling £16,451,646 (2020: £13,475,470).
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £130,023 (2020: £123,211). Contributions totalling £22,219 (2020: £23,557) were payable to the fund at the reporting date.
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92 HIGHER DRIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
The immediate parent undertaking is Higher Drive Nursing Home (Holdings) Limited, a company incorporated in the UK. The ultimate parent undertaking is Fairlie Holdings Limited, a company incorporated in the UK. The consolidated accounts are available from Companies House and the registered office of Fairlie Holdings Limited is Minerva House, Lower Bristol Road, Bath, BA2 9ER.
The ultimate controlling party is J Whelan by virtue of his majority shareholding in Fairlie Holdings Limited. |