160
false
false
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false
true
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No description of principal activity
2022-04-01
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02077314
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02077314
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02077314
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COMPANY REGISTRATION NUMBER:
02077314
Year Ended 31 March 2023
Officers and professional advisers |
1 |
|
|
Independent auditor's report to the members |
6 to 9 |
|
|
Statement of comprehensive income |
10 |
|
|
Statement of financial position |
11 |
|
|
Statement of changes in equity |
12 |
|
|
Notes to the financial statements |
13 to 21 |
|
|
Officers and Professional Advisers |
|
The board of directors |
J A Hill |
|
W J Waddicor |
|
|
Company secretaries
A Hill
I P Mitchell
Registered office |
91-97 Saltergate |
|
Chesterfield |
|
Derbyshire |
|
S40 1LA |
|
|
Auditor |
MCABA Limited t/a Mitchells |
|
Chartered Accountants & Statutory Auditor |
|
91-97 Saltergate |
|
Chesterfield |
|
Derbyshire |
|
S40 1LA |
|
|
Bankers |
HSBC UK Bank plc |
|
East Midlands Corporate Banking Centre |
|
Second Floor |
|
Donnington Court |
|
Pegasus Business Park |
|
Castle Donnington |
|
DE74 2BU |
|
|
Solicitors |
Knights Professional Services Limited |
|
14 Commercial Street |
|
Sheffield |
|
S1 2AT |
|
|
Year Ended 31 March 2023
The directors present their strategic report of the company for the year ended 31 March 2023. Business review The principal activity of the company during the year was the provision of residential and nursing care to the elderly. Results and performance The directors are satisfied with the performance of the company during the year. The company monitors direct costs on an ongoing basis whilst striving to deliver a high quality of care to its residents. The company continues to perform well despite a challenging environment and has sought to consolidate its position within the market during the year. Key performance indicators The directors monitor the progress of the company by reference to key performance indicators. The key performance indicators for the company are those that communicate the financial performance of the company, being turnover, gross profit and staff costs as a proportion of fees. The company has experienced a increase in resident fee income of 8.2%. this year. This is due to both increased occupancy and an increase in average fees. With a nationwide shortage in nurses and healthcare staff, the company has remained reliant on agency staff during the year. The company has maintained a tight control over direct costs as far as possible under the current circumstances, which has assisted the company in achieving a gross profit margin for the year of 15.4% (2022: 16.7%). Staff costs as a proportion of fees were 79.7% (2022: 79.2%). The company hopes to build on these results in the coming year by increasing occupancy and reducing its cost base whilst still maintaining a high quality of care. Principal risks and uncertainties The senior management team meet regularly to consider the risks that face the company and how established processes and controls are used to manage these risks. Key risks and uncertainties are outlined below: Market risk The market in which the company operates is highly competitive. As a result, there is constant pressure on margins, amplified by increases in UK inflation. The sector uses a significant amount of food, energy and labour, all of which saw high price growth particularly as a result of the increases in the National Living Wage. Recruitment and retention of competent and qualified personnel remains challenging. Legislative and regulatory risk The company's operations are subject to a high level of regulation by various regulators in the UK. Inspections at our care homes are frequent and primarily unannounced. The results of such inspections are crucial in determining the operational capability of a home and compliance with regulatory standards. Failure to comply with the appropriate standards set down by the regulators can result in either temporary, or in the worst-case scenario, permanent closure. To mitigate the risk, the group has invested in quality and compliance personnel who regularly visit the homes to ensure that the appropriate standards of care are being delivered. Reputational risk The company provides care to elderly people. Any serious breach in the standard of care provided could result in negative publicity and increased scrutiny from regulators, residents and families. To mitigate this risk, the company devotes a considerable amount of time to delivering comprehensive and mandatory clinical training to employees. All employees are checked prior to being offered employment. Financial risks he wider group as a whole has outstanding bank loans. The current economic environment and the increases in the base rate are a risk to the company and wider group. The group prepares cash flow forecast and applies sensitivities as applicable to ensure they are well placed to be able to meet capital and interest repayments as they fall due. The group has an open relationship with the bank and provides monthly, quarterly and annual financial and operating information to them and is currently covenant compliant.
This report was approved by the board of directors on 28 March 2024 and signed on behalf of the board by:
Year Ended 31 March 2023
The directors present their report and the financial statements of the company for the year ended
31 March 2023
.
Directors
The directors who served the company during the year were as follows:
Dividends
Particulars of recommended dividends are detailed in note 10 to the financial statements.
Future developments
The company intends to consolidate its position within the market in the coming period.
Financial instruments
Financial risk management objectives and policies
The company is partly funded by intra-group loans. The company expects to continue to receive this funding support when required and therefore has adequate resources to remain in operation for the foreseeable future.
At 31 March 2023 the value of group wide bank borrowings was £37.3 million (2022: £40 million), but the company itself has no bank debt. The intra-group loans to this company partly originate from this bank funding.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the 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 judgments 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
28 March 2024
and signed on behalf of the board by:
Independent Auditor's Report to the Members of
Aaroncare Limited |
|
Year Ended 31 March 2023
Opinion
We have audited the financial statements of Aaroncare Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity 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 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 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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.
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 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.
Responsibilities of directors
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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at https: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Auditor's responsibilities for detecting irregularities, including fraud The objectives of our audit are: to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that 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). In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: - We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant; the Companies Act 2006, UK corporate taxation laws, the Health and Social Care Act 2012 and the Care Quality Commission (Registration) Regulations 2009. - We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to relevant members of the management team. We corroborated our inquiries though our review of board minutes (where applicable) and inquiry into legal fees incurred in the year. - We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: - Identifying the controls management has in place to prevent and detect fraud and assessing the operation of these controls - Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process - Identifying and testing journal entries, in particular any journal entries that were large or unusual in nature - Assessing the extent of compliance with the relevant laws and regulations governing the company and the sector it operates within. This included a review of any potential breaches during and since the year end; and - Challenging assumptions and judgements made by management in its significant accounting estimates. There are inherent limitations in the audit procedures described above 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. 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, intentional misrepresentations or collusion.
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.
Tony Hornsby BA(Hons) FCA |
(Senior Statutory Auditor) |
|
For and on behalf of |
MCABA Limited t/a Mitchells |
Chartered Accountants & Statutory Auditor |
91-97 Saltergate |
Chesterfield |
Derbyshire |
S40 1LA |
|
28 March 2024
Statement of Comprehensive Income |
|
Year Ended 31 March 2023
|
2023 |
2022 |
Note |
£ |
£ |
Turnover |
4 |
5,092,338 |
4,705,487 |
|
|
|
|
Cost of sales |
4,305,589 |
3,922,409 |
|
------------ |
------------ |
Gross Profit |
786,749 |
783,078 |
|
|
|
Administrative expenses |
683,868 |
534,631 |
Other operating income |
5 |
155,102 |
437,105 |
|
|
--------- |
--------- |
Operating Profit |
6 |
257,983 |
685,552 |
|
|
|
|
|
--------- |
--------- |
Profit Before Taxation |
257,983 |
685,552 |
|
|
|
Tax on profit |
9 |
– |
9,911 |
|
--------- |
--------- |
Profit for the Financial Year |
257,983 |
675,641 |
|
--------- |
--------- |
|
|
|
|
Revaluation of tangible assets |
– |
1,197,918 |
|
--------- |
------------ |
Total Comprehensive Income for the Year |
257,983 |
1,873,559 |
|
--------- |
------------ |
|
|
|
All the activities of the company are from continuing operations.
Statement of Financial Position |
|
31 March 2023
Fixed Assets
Tangible assets |
11 |
|
6,373,194 |
6,440,001 |
|
|
|
|
|
Current Assets
Stocks |
12 |
3,120 |
|
3,522 |
Debtors |
13 |
1,856,314 |
|
1,219,412 |
Cash at bank and in hand |
278,584 |
|
658,429 |
|
------------ |
|
------------ |
|
2,138,018 |
|
1,881,363 |
|
|
|
|
|
Creditors: amounts falling due within one year |
14 |
1,354,890 |
|
1,213,025 |
|
------------ |
|
------------ |
Net Current Assets |
|
783,128 |
668,338 |
|
|
------------ |
------------ |
Total Assets Less Current Liabilities |
|
7,156,322 |
7,108,339 |
|
|
------------ |
------------ |
Net Assets |
|
7,156,322 |
7,108,339 |
|
|
------------ |
------------ |
|
|
|
|
|
Capital and Reserves
Called up share capital |
19 |
|
1 |
1 |
Revaluation reserve |
20 |
|
2,040,571 |
2,040,571 |
Capital redemption reserve |
20 |
|
25,500 |
25,500 |
Profit and loss account |
20 |
|
5,090,250 |
5,042,267 |
|
|
------------ |
------------ |
Shareholders Funds |
|
7,156,322 |
7,108,339 |
|
|
------------ |
------------ |
|
|
|
|
|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the
board of directors
and authorised for issue on
28 March 2024
, and are signed on behalf of the board by:
Company registration number:
02077314
Statement of Changes in Equity |
|
Year Ended 31 March 2023
|
Called up share capital |
Revaluation reserve |
Capital redemption reserve |
Profit and loss account |
Total |
Note |
£ |
£ |
£ |
£ |
£ |
At 1 April 2021 |
1 |
842,653 |
25,500 |
4,366,626 |
5,234,780 |
|
|
|
|
|
|
Profit for the year |
|
|
|
675,641 |
675,641 |
Other comprehensive income for the year: |
|
|
|
|
|
|
Revaluation of tangible assets |
11 |
– |
1,197,918 |
– |
– |
1,197,918 |
|
---- |
------------ |
-------- |
------------ |
------------ |
Total Comprehensive Income for the Year |
– |
1,197,918 |
– |
675,641 |
1,873,559 |
|
|
|
|
|
|
At 31 March 2022 |
1 |
2,040,571 |
25,500 |
5,042,267 |
7,108,339 |
|
|
|
|
|
|
Profit for the year |
|
|
|
257,983 |
257,983 |
|
---- |
------------ |
-------- |
------------ |
------------ |
Total Comprehensive Income for the Year |
– |
– |
– |
257,983 |
257,983 |
|
|
|
|
|
|
Dividends paid and payable |
10 |
– |
– |
– |
(
210,000) |
(
210,000) |
|
---- |
---- |
---- |
--------- |
--------- |
Total Investments by and Distributions to Owners |
– |
– |
– |
(
210,000) |
(
210,000) |
|
|
|
|
|
|
|
---- |
------------ |
-------- |
------------ |
------------ |
At 31 March 2023 |
1 |
2,040,571 |
25,500 |
5,090,250 |
7,156,322 |
|
---- |
------------ |
-------- |
------------ |
------------ |
|
|
|
|
|
|
|
|
Notes to the Financial Statements |
|
Year Ended 31 March 2023
(continued)
1.
General information
The company is a private limited company limited by shares, registered in England and Wales. The address of the registered office is 91-97 Saltergate, Chesterfield, Derbyshire, S40 1LA. The place of business is Unit 5, Dunston Place, Dunston Road, Chesterfield, S41 8NL.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, except for the modification to fair value basis for certain fixed assets as specified in the accounting policies below. The financial statements are prepared in sterling, which is the functional currency of the entity. Going concern The directors and management produce a number of forecasts to ensure that they monitor costs and protect cashflow. The directors have reviewed the forecasts and they are confident that these show the company is able to operate within its available facilities and meet its external liabilities as they fall due for the foreseeable future. The wider group has indicated they will continue to provide full financial support to the company and do not plan to recall the intra-group loans in favour of or to the detriment of external creditors for the foreseeable future. Therefore, the directors have determined that at the time of approving these financial statements it is appropriate to prepare them on a going concern basis.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of A J Hill Holdings Limited which can be obtained from The Registrar of Companies (England and Wales). As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) No disclosure has been given for the aggregate remuneration of key management personnel.
Judgements and key sources of estimation uncertainty
In the process of applying the company's accounting policies, the directors are required to make certain estimates, judgements and assumptions that they believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be relevant to the company, including the impact of COVID-19. Actual results may differ from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The estimate and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Useful life and residual values Tangible assets The charge in respect of depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of the company's assets may vary depending on several factors such as, technological innovation, maintenance programmes and future market conditions. They are determined by management at the time the asset is acquired and reviewed annually for appropriateness. There is no charge in respect of depreciation on freehold buildings for the period. In determining the residual value of freehold buildings, the directors have considered the amount they would currently obtain from disposal of the asset if the asset were already of the age and condition expected at the end of its useful life, having regard to the factors mentioned above. As a result, the directors estimate any depreciation charge to be immaterial and as such the depreciation charge is nil for the period. Impairment of fixed assets The company reviews all categories of fixed assets annually for indicators of impairment and performs an impairment review considering any such indicators identified. Judgements are required to make an assessment as to whether there is an indication of impairment. At the year end the directors feel the carrying value of the fixed assets is not materially different to its fair value. Recoverability of trade debtors The directors make provisions for doubtful debts based on an assessment of the recoverability of trade debtors. Provisions are applied to trade debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. This methodology is applied on an individual resident basis. Recoverability of intercompany and related party balances Determination of whether the group's intercompany and related party balances have been impaired requires estimation of the fellow group and related party entities' net assets or liabilities position and their ability to generate future cash flows to settle the balances. The directors have performed a review of each balance based on these indicators and assessed recoverability. Leases Determining whether leases entered into by the company as a lessee are operating or finance leases requires judgement. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee based on the evaluation of the terms and conditions of the arrangements on a lease by lease basis.
Revenue recognition
The turnover shown in the profit and loss account represents residents' fees earned during the year.
Income tax
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Fixtures and fittings |
- |
15% reducing balance |
|
|
|
|
No depreciation charge is included in the financial statements for freehold property for the reasons detailed in the judgements and key sources of estimation uncertainty accounting policy.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at cost.
Government grants
Government and local authority grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model.
Financial instruments
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other administrative expenses.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
Irrecoverable VAT
The company is a member of a VAT group. Irrecoverable VAT is calculated using the partial exemption method and is charged to the statement of comprehensive income.
4.
Turnover
Turnover arises from:
|
2023 |
2022 |
|
£ |
£ |
Rendering of services - residents' fees |
5,092,338 |
4,705,487 |
|
------------ |
------------ |
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Other operating income
|
2023 |
2022 |
|
£ |
£ |
Government grant income |
155,102 |
437,105 |
|
--------- |
--------- |
|
|
|
6.
Operating profit
Operating profit or loss is stated after charging/crediting:
|
2023 |
2022 |
|
£ |
£ |
Depreciation of tangible assets |
70,977 |
78,617 |
Loss on disposal of tangible assets |
27,978 |
19,209 |
Fair value adjustments to investment property |
– |
(
188,344) |
Impairment of trade debtors |
(69,879) |
46,500 |
|
-------- |
--------- |
|
|
|
7.
Auditor's remuneration
|
2023 |
2022 |
|
£ |
£ |
Fees payable for the audit of the financial statements |
17,650 |
15,810 |
|
-------- |
-------- |
|
|
|
8.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2023 |
2022 |
|
No. |
No. |
Management, care and support staff |
160 |
180 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2023 |
2022 |
|
£ |
£ |
Wages and salaries |
2,907,636 |
2,890,928 |
Social security costs |
249,213 |
228,419 |
Other pension costs |
67,528 |
64,451 |
|
------------ |
------------ |
|
3,224,377 |
3,183,798 |
|
------------ |
------------ |
|
|
|
9.
Tax on profit
Major components of tax expense
Deferred tax:
Origination and reversal of timing differences |
– |
9,911 |
|
---- |
------- |
Tax on profit |
– |
9,911 |
|
---- |
------- |
|
|
|
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: lower than) the
standard rate of corporation tax in the UK
of
19
% (2022:
19
%).
|
2023 |
2022 |
|
£ |
£ |
Profit on ordinary activities before taxation |
257,983 |
685,552 |
|
--------- |
--------- |
Profit on ordinary activities by rate of tax |
49,017 |
130,255 |
Effect of expenses not deductible for tax purposes |
(
312) |
(
217) |
Effect of capital allowances and depreciation |
(
13,276) |
(
69,017) |
Group relief |
(
35,429)
|
(
61,021)
|
Deferred tax movement |
– |
9,911 |
|
--------- |
--------- |
Tax on profit |
– |
9,911 |
|
--------- |
--------- |
|
|
|
10.
Dividends
|
2023 |
2022 |
|
£ |
£ |
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year ) |
210,000 |
– |
|
--------- |
---- |
|
|
|
11.
Tangible assets
|
Freehold property |
Fixtures and fittings |
Total |
|
£ |
£ |
£ |
Cost or valuation |
|
|
|
At 1 April 2022 |
5,956,203 |
4,496,366 |
10,452,569 |
Additions |
– |
32,147 |
32,147 |
Disposals |
– |
(
78,888) |
(
78,888) |
|
------------ |
------------ |
------------- |
At 31 March 2023 |
5,956,203 |
4,449,625 |
10,405,828 |
|
------------ |
------------ |
------------- |
Depreciation or impairment |
|
|
|
At 1 April 2022 |
– |
4,012,568 |
4,012,568 |
Charge for the year |
– |
70,977 |
70,977 |
Disposals |
– |
(
50,911) |
(
50,911) |
|
------------ |
------------ |
------------- |
At 31 March 2023 |
– |
4,032,634 |
4,032,634 |
|
------------ |
------------ |
------------- |
Carrying amount |
|
|
|
At 31 March 2023 |
5,956,203 |
416,991 |
6,373,194 |
|
------------ |
------------ |
------------- |
At 31 March 2022 |
5,956,203 |
483,798 |
6,440,001 |
|
------------ |
------------ |
------------- |
|
|
|
|
In March 2022 the properties were valued at £6,440,000 based on the existing use as fully equipped and operational care homes. This includes freehold property, fixtures and fittings. The valuations were performed by Jones Lang LaSalle Limited, part of Jones Lang LaSalle IP, Inc. At 31 March 2023, the directors have evaluated the properties and consider the previous valuations are adequate at the year end and any variations would be immaterial.
Tangible assets held at valuation
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
|
Freehold property |
|
£ |
At 31 March 2023 |
|
Aggregate cost |
8,900,146 |
Aggregate depreciation |
(4,032,635) |
|
------------ |
Carrying value |
4,867,511 |
|
------------ |
|
|
At 31 March 2022 |
|
Aggregate cost |
8,946,887 |
Aggregate depreciation |
(4,012,569) |
|
------------ |
Carrying value |
4,934,318 |
|
------------ |
|
|
12.
Stocks
|
2023 |
2022 |
|
£ |
£ |
Consumables |
3,120 |
3,522 |
|
------- |
------- |
|
|
|
13.
Debtors
|
2023 |
2022 |
|
£ |
£ |
Trade debtors |
428,313 |
285,291 |
Amounts owed by group undertakings |
1,232,586 |
818,199 |
Deferred tax asset |
82,289 |
82,289 |
Prepayments and accrued income |
111,838 |
33,633 |
Other debtors |
1,288 |
– |
|
------------ |
------------ |
|
1,856,314 |
1,219,412 |
|
------------ |
------------ |
|
|
|
14.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£ |
£ |
Trade creditors |
193,957 |
218,414 |
Amounts owed to group undertakings |
519,775 |
515,744 |
Accruals and deferred income |
466,959 |
361,898 |
Social security and other taxes |
20,412 |
39,231 |
Other creditors |
153,787 |
77,738 |
|
------------ |
------------ |
|
1,354,890 |
1,213,025 |
|
------------ |
------------ |
|
|
|
15.
Securities and contingencies
The company has entered into cross-guarantees for overdraft and loan facilities made available to the ultimate parent company. It is not anticipated that any material liabilities will arise from the contingent liabilities other than those provided for in these financial statements.
The company treats guarantees and indemnities of this nature as contingent liabilities until such time as it becomes probable that the company will be required to make a payment under the terms of the arrangement.
As at 31 March 2023 the value of the group wide bank borrowings is £37.3 million (2022: £40 million).
There is a legal charge, incorporating a fixed and floating charge, over the properties and assets owned by the company.
16.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2023 |
2022 |
|
£ |
£ |
Included in debtors (note 13) |
82,289 |
82,289 |
|
-------- |
-------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2023 |
2022 |
|
£ |
£ |
Accelerated capital allowances |
(
82,289) |
(
82,289) |
|
-------- |
-------- |
|
|
|
17.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
67,528
(2022: £
64,451
).
18.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
Recognised in other operating income:
Government grants recognised directly in income |
155,102 |
437,105 |
|
--------- |
--------- |
|
|
|
19.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
1 |
1 |
1 |
1 |
|
---- |
---- |
---- |
---- |
|
|
|
|
|
20.
Reserves
Called up share capital - this represents the nominal value of the shares that have been issued. Revaluation reserve - this reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income and any deferred tax thereon. Capital redemption reserve - this reserve has arisen from the purchase of own share capital in prior years. Profit and loss account - this reserve records retained earnings and accumulated losses.
21.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2023 |
2022 |
|
£ |
£ |
Not later than 1 year |
13,795 |
10,782 |
Later than 1 year and not later than 5 years |
3,449 |
13,478 |
|
-------- |
-------- |
|
17,244 |
24,260 |
|
-------- |
-------- |
|
|
|
22.
Related party transactions
The company has taken advantage of exemption conferred by FRS 102 S33.1A, removing the requirement to disclose transactions between wholly owned group members. During the year the company provided and received loans from related parties. The balance outstanding due from/(to) related parties at 31 March 2023 are as follows:
|
|
2023 |
2022 |
|
|
£ |
£ |
|
Amounts due from entities holding a participating interest |
1,042,956 |
686,031 |
|
Amounts due from entities under common control |
189,630 |
132,168 |
|
Amounts owed to entities under common control |
(519,775) |
(515,744) |
|
|
|
|
Outstanding balances with entities are unsecured, interest free and repayable on demand.
23.
Controlling party
Aaroncare Limited
is the 100% subsidiary of Hill Care Holdings Limited, a company registered in England and Wales. The directors consider the ultimate parent undertaking to be A J Hill Holdings Limited, a company registered in England and Wales. Consolidated financial statements can be obtained from the company's registered address; 91-97 Saltergate, Chesterfield, Derbyshire, S40 1LA.