REGISTERED NUMBER: 02463465 (England and Wales) |
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ADL PLC |
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GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 |
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REGISTERED NUMBER: 02463465 (England and Wales) |
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ADL PLC |
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GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 |
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ADL PLC (REGISTERED NUMBER: 02463465) |
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CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2021 |
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Page |
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Company Information | 1 |
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Chairman's Report | 2 |
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Group Strategic Report | 3 |
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Report of the Directors | 5 |
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Statement of Directors' Responsibilities | 7 |
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Independent Auditors' Report | 8 |
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Consolidated Profit and Loss account | 11 |
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Consolidated Balance Sheet | 12 |
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Company Balance Sheet | 13 |
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Consolidated Statement of Changes in Equity | 14 |
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Company Statement of Changes in Equity | 15 |
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Consolidated Cash Flow Statement | 16 |
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Notes to the Consolidated Financial Statements | 17 |
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ADL PLC |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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INDEPENDENT AUDITORS : |
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Chartered Accountants and Statutory Auditors |
26 Main Avenue |
Moor Park |
HA6 2HJ |
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BANKERS: | HSBC |
41 Southgate |
Bath |
BA1 1TN |
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SOLICITORS: |
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16-18 Queen Street |
Norwich |
Norfolk |
NR2 4SQ |
ADL PLC (REGISTERED NUMBER: 02463465) |
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CHAIRMAN'S REPORT |
FOR THE YEAR ENDED 31 MARCH 2021 |
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This will be my final report to you as Chairman of the company as it is my intention to retire as a director after 15 years at the helm following the forthcoming AGM. |
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It gives me great pleasure to submit my final report to you on the affairs of the business with the company in such a good financial state. |
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The strategy of retaining excess funds and repaying debt early has benefited shareholders in these uncertain times. Your company managed to deliver a post tax profit of £3.2m (2019/20 £2.3m) which was a considerable achievement. |
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The Government has continued to show little inclination to carry out a review of the social care market which will mean that the uncertainty prevailing in the market continues. |
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Our profits have grown for the last number of years and we are fortunate that the cash generation is significant which is a considerable help when planning ahead. |
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The investment the Company has made in the purchase of shares has meant that the value per share has grown significantly to nearly £3.50 (2019/20 £3.00) |
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The company has continued to. invest in improving the buildings which house the people for whom we are responsible. |
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I am very conscious that the world has changed and that the effect the pandemic will have on our business will be significant. Therefore, I feel that in the short term the company will need to be very careful to continue to do what we are good at, which is providing an excellent service for our clients and keep occupancy as high as possible. This will require very careful management, but I am confident that the company will continue to be able to achieve its goals and come out the other end a stronger and more profitable Company. |
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We are indebted to our staff whose hard work, expertise and kindness create an ambiance which makes us stand out as an excellent provider of care for the elderly. |
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I would like to take this opportunity to thank all our staff very much for all that they do for the company and its clients and to wish my co-directors Jeremy and Pearl and the staff all good fortune in the future. |
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Sir W H W Wells - Chairman |
29 September 2021 |
ADL PLC (REGISTERED NUMBER: 02463465) |
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GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2021 |
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The directors present their strategic report of the company and the group for the year ended 31 March 2021. |
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REVIEW OF BUSINESS AND MANAGING DIRECTORS REPORT |
The company and group results of 2021 are generally in line with those of 2020 with the exception of the effects caused by the Covid 19 Pandemic. |
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As previously reported, at the insistence of the Operations Director Mrs Pearl Jackson, we were one of the first groups to isolate the homes on the 8th March 2020 thus saving us from the worst ravages of the pandemic. However, the later discharge of Covid infected people from hospitals to a number of homes, without appropriate tests, took its toll on a number of our homes. |
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The poor performance of our partnership homes in North Lincolnshire has begun to be rectified with occupancy rates rising. This improvement has continued after the year end. |
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Trading at our other homes is generally in line with our expectations and in some instances exceeds our expectations. |
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Regulators and particularly safeguarding committees take up more and more of our time leaving less time for us to improve the business. However, in this exceptional of years, the group has benefited from grants to assist with PPE and other costs. |
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Net assets per share have increased to £3.48 (2020: £3.00) due mainly to retained earnings and a further reduction in the number of shares in issue. |
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The Board will continue its policy of not declaring a dividend. The board will be offering to purchase any outstanding shares on a first come first served basis for a price of £3.50 per share, subject to available resources. |
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Once again, I would like to express the Boards gratitude to Pearl Jackson and all our staff for their caring and support of our clients during these difficult times. The staff were obviously at great personal risk, and it saddens us that due to government legislation unless doubly jabbed they will not be allowed in the homes from November onwards. This has led to several long standing and valued members of staff leaving teams that provide the bedrock of care. |
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As you will see from the Chairman's statement Sir William Wells has indicated his intention to retire as a director of the company from the AGM. We would like to thank Sir William for all his invaluable advice and support over many years and wish him and his wife a very happy retirement. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The principle risks and uncertainties of the business are as follows: |
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1. The affects and consequences of a Covid 19 outbreak in any of our homes. |
2. The uncertainties in respect of announced inspections and decisions of the Care Quality Commission |
3. Exposure to new legislation and regulatory requirements |
4. The recruitment and retention of a skilled workforce particularly in connection with the uncertainties of Brexit |
5. The potential withdrawal of local authority approval/funding. |
6. The advent of inflationary pressures which have begun to appear in key cost areas |
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KEY PERFORMANCE INDICATORS |
The directors consider the following key performance indicators of the business to be the most important and monitor them on a regular basis. |
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1. Investment in PPE |
2. Investment in the property assets |
3. Occupancy rates |
4. Gross Margin |
5. Wage costs per bed |
6. Debtor turn |
7. Cash balances |
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ADL PLC (REGISTERED NUMBER: 02463465) |
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GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2021 |
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GOING CONCERN |
The directors, after reviewing the group's operating budgets and financing arrangements, consider that the company and group have sufficient financing available at the date of approval of this report. Accordingly, the directors are satisfied that it is appropriate to adopt the going concern basis in preparing the annual report and financial statements. Refer to note 2 of the financial statements for further detail, in particular the assessment by the directors of the impact on the group of the Coronavirus pandemic. |
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A full description of the group's business activities, financial position, cash flows, liquidity position, committed facilities and borrowing position, together with the factors likely to affect its future development and performance, are set out in the Strategic Report. |
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ON BEHALF OF THE BOARD: |
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ADL PLC (REGISTERED NUMBER: 02463465) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2021 |
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The directors present their report with the financial statements of the company and the group for the year ended 31 March 2021. |
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The report of the directors is a document produced by the board of directors under the requirement of UK company law. It details the state of the company and group, and its compliance with applicable financial, accounting and corporate social responsibility regulations. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2021. |
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FUTURE DEVELOPMENTS |
The company and group will continue to raise the standards of care in the existing homes and seek further appropriate acquisitions if available. |
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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. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2020 to the date of this report. |
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FINANCIAL INSTRUMENTS |
On 26th April 2013 ADL plc, as part of a loan arrangement restructure, entered into a new loan agreement for 15 years for a maximum of £7 million with HSBC. The interest on this loan will be charged at 2% per annum over the Bank's Sterling Base Rate as published from time to time. |
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On 12th November 2015 ADL plc entered into a new loan agreement for 15 years for a maximum of £4.04 million with HSBC. The interest on this loan will be charged at 2% per annum over the Bank of England Base Rate as published from time to time. |
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The risk management objectives and policies of the company and group, and the exposure of the company and group to price risk, credit risk, liquidity risk and cash flow risk are contained in the notes to the consolidated financial statements. |
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SHARE CAPITAL |
There were no new shares issued during the current and prior years. |
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Purchase of own shares and cancellation |
Subject to the provisions of the Companies Acts, the company may purchase all or any of its shares of any class in any way. |
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During the reporting period year, the company purchased and cancelled ordinary 5p shares totalling 178,966 (2020: 1,682,945). The cancelled shares represented 0.65% (2020: 5,79%) of the called up share capital. The shares were acquired for a total consideration of £536,898 (2020: £4,988,835) and the nominal value of the shares totalled £8,948 (2020: £84,147). The maximum and minimum prices paid were 300p per share respectively. |
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ADL PLC (REGISTERED NUMBER: 02463465) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2021 |
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EMPLOYEES |
The group operates non-discriminatory employment policies which are designed to attract, retain and motivate the very best people, recognising that this can only be achieved through offering equal opportunities regardless of age, disability, gender, race, religion, colour, nationality, marital status and sexual orientation. |
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Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. |
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In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the group continues and that appropriate facilities are available and training is arranged. It is the policy of the group that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability. |
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Staff are encouraged to plan their careers within the group and to participate in appropriate ongoing training, consistent with the needs of the business. |
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All care homes develop their own internal communications and employees receive regular updates on the group's strategies, policies and results. |
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The group has taken appropriate steps during the financial year to introduce, maintain, or develop arrangements aimed at consulting employees or their representatives on a regular basis so that the views of employees can be taken into account in making decisions that are likely to affect their interests. |
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Our success is due to the teamwork and co-operation of the people within the group. The directors thank all those who have worked so hard and contributed so much to achieve these results during a demanding time. The group continues to develop and maintain a culture which encourages long service and we are proud that so many employees choose to remain with us over many years. |
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DIRECTORS' LIABILITY INSURANCE |
As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the financial year and is currently in force. The company also purchased and maintained throughout the financial year, directors' and officers' liability insurance in respect of itself and its directors. |
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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 group'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 group's auditors are aware of that information. |
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AUDITORS |
Cox, Costello and Horne have indicated their willingness to continue in office, and a resolution that they will be re-appointed will be proposed to the Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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ADL PLC (REGISTERED NUMBER: 02463465) |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
FOR THE YEAR ENDED 31 MARCH 2021 |
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The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. |
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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), 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
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- | 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. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF |
ADL PLC |
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Opinion |
We have audited the financial statements of ADL PLC (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Profit and Loss account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2021 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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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 group 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. |
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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. |
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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent 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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Annual Report, but does not include the financial statements and our Auditors' Report thereon. |
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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. |
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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. |
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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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF |
ADL PLC |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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. |
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In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF |
ADL PLC |
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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 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. |
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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: |
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the engagement partner ensured that the engagement team had the appropriate competence, capabilities and
skills to identify and recognise non-compliance with applicable laws and regulations; |
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obtaining understanding of the legal and regulatory framework the parent and group companies operates in
focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we identified and considered in this context included UK Companies Act, tax legislation, employment law and Health and Safety. |
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internal discussions amongst the engagement team establishing how and where fraud might occur in the
financial statements and any potential indicators of fraud. The discussions identified the following for potential fraud and mitigating procedures: |
- | performed analytical procedures to identify any unusual or unexpected relationships |
- | assess risk of fraud through management bias and override of accounting & financial controls |
- | testing journal entries for appropriateness and reviewing large and unusual bank transactions |
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enquiring of management whether they are aware of any non-compliance with applicable laws & regulations
and any actual or potential litigation claims; |
- | enquiring of management whether they have knowledge of any actual, suspected or alleged fraud; |
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enquiring of management whether internal controls are designed to mitigate risk related to fraud or
non-compliance with laws and regulations. |
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The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that some material misstatements in respect of irregularities may remain undiscovered even through the audit is properly planned and performed in accordance with ISA's (UK). Furthermore, the further removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Our examination should not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors of the company. |
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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. |
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Use of our report |
This report is made solely to the company's shareholders, 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 shareholders 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 shareholders as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Chartered Accountants and Statutory Auditors |
26 Main Avenue |
Moor Park |
HA6 2HJ |
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ADL PLC (REGISTERED NUMBER: 02463465) |
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CONSOLIDATED PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 31 MARCH 2021 |
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31.3.21 | 31.3.20 |
Notes | £ | £ |
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TURNOVER |
Group and share of joint ventures | 13,973,078 | 14,922,408 |
Less: |
Share of joint ventures' turnover | (398,525 | ) | (355,369 | ) |
GROUP TURNOVER | 3 | 13,574,553 | 14,567,039 |
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Cost of sales | 8,704,942 | 9,044,189 |
GROSS PROFIT | 4,869,611 | 5,522,850 |
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Administrative expenses | 2,380,836 | 2,409,366 |
2,488,775 | 3,113,484 |
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Other operating income | 1,723,572 | 129,143 |
OPERATING PROFIT | 5 | 4,212,347 | 3,242,627 |
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Interest receivable and similar income | 2,607 | - |
Interest payable and similar expenses | 6 | (143,480 | ) | (206,444 | ) |
PROFIT BEFORE TAXATION | 4,071,474 | 3,036,183 |
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Tax on profit | 7 | 874,783 | 716,691 |
PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE |
Property revaluation adjustments |
Income tax relating to other comprehensive | 2,280 | (367,255 | ) |
OTHER COMPREHENSIVE FOR THE
YEAR, NET OF INCOME TAX |
2,280 |
(367,255 |
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TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
3,198,971 |
1,952,237 |
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Profit attributable to: |
Owners of the parent | 3,196,691 | 2,319,492 |
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Total comprehensive income attributable to: |
Owners of the parent | 3,198,971 | 1,952,237 |
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Earnings per share expressed |
in pence per share: | 9 |
Basic | 47.03 | 28.50 |
Diluted | 47.03 | 28.50 |
ADL PLC (REGISTERED NUMBER: 02463465) |
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CONSOLIDATED BALANCE SHEET |
31 MARCH 2021 |
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31.3.21 | 31.3.20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 165,645 | 194,279 |
Tangible assets | 11 | 25,254,748 | 25,627,563 |
Investments | 12 |
Interest in joint venture |
Share of gross assets | 88,255 | 88,751 |
Share of gross liabilities | (15,532 | ) | (31,608 | ) |
72,723 | 57,143 |
Other investments | 1,335,000 | 1,335,000 |
26,828,116 | 27,213,985 |
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CURRENT ASSETS |
Stocks | 13 | 14,500 | 14,500 |
Debtors | 14 | 1,680,429 | 1,913,933 |
Cash at bank and in hand | 5,005,799 | 1,948,538 |
6,700,728 | 3,876,971 |
CREDITORS |
Amounts falling due within one year | 15 | 2,853,080 | 2,303,085 |
NET CURRENT ASSETS | 3,847,648 | 1,573,886 |
TOTAL ASSETS LESS CURRENT
LIABILITIES |
30,675,764 |
28,787,871 |
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CREDITORS |
Amounts falling due after more than one
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16 |
(5,673,891 |
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(6,454,571 |
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PROVISIONS FOR LIABILITIES | 20 | (1,725,022 | ) | (1,701,528 | ) |
NET ASSETS | 23,276,851 | 20,631,772 |
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CAPITAL AND RESERVES |
Called up share capital | 21 | 1,362,106 | 1,371,054 |
Share premium | 22 | 3,712,396 | 3,712,396 |
Revaluation reserve | 22 | 8,615,197 | 8,880,830 |
Capital redemption reserve | 22 | 160,590 | 151,641 |
Retained earnings | 22 | 9,426,562 | 6,515,851 |
SHAREHOLDERS' FUNDS | 26 | 23,276,851 | 20,631,772 |
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The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2021 and were signed on its behalf by: |
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Mr W J Davies - Director |
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ADL PLC (REGISTERED NUMBER: 02463465) |
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COMPANY BALANCE SHEET |
31 MARCH 2021 |
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31.3.21 | 31.3.20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
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Tangible assets | 11 |
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Investments | 12 |
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CURRENT ASSETS |
Stocks | 13 |
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Debtors | 14 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 15 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
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16 |
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( |
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PROVISIONS FOR LIABILITIES | 20 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 21 |
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Share premium | 22 |
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Revaluation reserve | 22 |
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Capital redemption reserve | 22 |
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Retained earnings | 22 |
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SHAREHOLDER FUNDS | 26 |
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Company's profit for the financial year | 532,277 | 2,183,941 |
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
|
|
|
|
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
|
Balance at 1 April 2019 | 1,454,333 | 8,434,170 | 3,712,396 |
Total comprehensive income | - | 3,097,604 | - |
Purchase of own shares | - | (5,015,923 | ) | - |
Cancellation of own shares | (83,279 | ) | - | - |
Total transactions with owners,
recognised directly in equity |
(83,279 |
) |
(5,015,923 |
) |
- |
Balance at 31 March 2020 | 1,371,054 | 6,515,851 | 3,712,396 |
Total comprehensive income | - | 3,464,604 | - |
Purchase of own shares | - | (553,893 | ) | - |
Cancellation of own shares | (8,948 | ) | - | - |
Total transactions with owners,
recognised directly in equity |
(8,948 |
) |
(553,893 |
) |
- |
Balance at 31 March 2021 | 1,362,106 | 9,426,562 | 3,712,396 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
|
Balance at 1 April 2019 | 10,026,197 | 67,494 | 23,694,590 |
Total comprehensive income | (1,145,367 | ) | - | 1,952,237 |
Purchase of own shares | - | - | (5,015,923 | ) |
Maintain capital upon redemption | - | 84,147 | 84,147 |
Cancellation of own shares | - | - | (83,279 | ) |
Total transactions with owners,
recognised directly in equity |
- |
84,147 |
(5,015,055 |
) |
Balance at 31 March 2020 | 8,880,830 | 151,641 | 20,631,772 |
Total comprehensive income | (265,633 | ) | - | 3,198,971 |
Purchase of own shares | - | - | (553,893 | ) |
Maintain capital upon redemption | - | 8,949 | 8,949 |
Cancellation of own shares | - | - | (8,948 | ) |
Total transactions with owners,
recognised directly in equity |
- |
8,949 |
(553,892 |
) |
Balance at 31 March 2021 | 8,615,197 | 160,590 | 23,276,851 |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
|
Balance at 1 April 2019 |
|
|
|
Total comprehensive income | - |
|
- |
Purchase of own shares | - | (5,015,923 | ) | - |
Cancellation of own shares | (83,279 | ) | - | - |
Total transactions with owners,
recognised directly in equity |
(83,279 |
) |
(5,015,923 |
) |
- |
Balance at 31 March 2020 |
|
|
|
Total comprehensive income | - |
|
- |
Purchase of own shares | - | (553,893 | ) | - |
Cancellation of own shares | (8,948 | ) | - | - |
Total transactions with owners,
recognised directly in equity |
(8,948 |
) |
(553,893 |
) |
- |
Balance at 31 March 2021 |
|
|
|
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
|
Balance at 1 April 2019 |
|
|
|
Total comprehensive income | ( |
) |
|
|
Purchase of own shares | - | - | (5,015,923 | ) |
Maintain capital upon redemption | - | 84,147 | 84,147 |
Cancellation of own shares | - | - | (83,279 | ) |
Total transactions with owners,
recognised directly in equity |
- |
84,147 |
(5,015,055 |
) |
Balance at 31 March 2020 |
|
|
|
Total comprehensive income | ( |
) |
|
|
Purchase of own shares | - | - | (553,893 | ) |
Maintain capital upon redemption | - | 8,949 | 8,949 |
Cancellation of own shares | - | - | (8,948 | ) |
Total transactions with owners,
recognised directly in equity |
- |
8,949 |
(553,892 |
) |
Balance at 31 March 2021 |
|
|
|
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
31.3.21 | 31.3.20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 27 | 3,992,452 | 4,162,570 |
Interest paid | (143,480 | ) | (206,444 | ) |
Government grants | 1,478,850 | - |
Tax paid | (606,587 | ) | (628,943 | ) |
Net cash from operating activities | 4,721,235 | 3,327,183 |
|
Cash flows from investing activities |
Purchase of tangible fixed assets | (284,132 | ) | (404,209 | ) |
Interest received | 2,607 | - |
Joint venture investment | - | 30,514 |
Net cash from investing activities | (281,525 | ) | (373,695 | ) |
|
Cash flows from financing activities |
Bank loans repaid in year | (749,338 | ) | (746,077 | ) |
Participating interests new/repaid loans | (79,218 | ) | 5,151 |
Purchase of own shares | (553,893 | ) | (5,015,055 | ) |
Net cash from financing activities | (1,382,449 | ) | (5,755,981 | ) |
|
Increase/(decrease) in cash and cash equivalents | 3,057,261 | (2,802,493 | ) |
Cash and cash equivalents at beginning
of year |
28 |
1,948,538 |
4,751,031 |
|
Cash and cash equivalents at end of year | 28 | 5,005,799 | 1,948,538 |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
1. | GENERAL INFORMATION |
|
ADL plc is a public company limited by shares incorporated in England (the "company"). The company has no securities admitted to trading on a regulated market. |
|
The registered office is c/o Woodlands of Woolley Residential Home, Woolley Low Moor Lane, Wakefield, WF4 2LN. |
|
The consolidated financial statements for the year ended 31 March 2021 comprise the financial statements of the company and its subsidiaries (the "group") and the group's share of the post-tax results of its joint venture. |
|
The directors have taken advantage of the exemption, as permitted by Section 408 of the Companies Act 2006 and not presented a profit and loss account nor statement of comprehensive income for the company alone. |
|
The group’s principal activities are set out in the strategic report. |
|
|
2. | ACCOUNTING POLICIES |
|
Basis of accounting |
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 as modified by the revaluation of certain assets. |
|
Going concern and COVID-19 |
In determining the appropriate basis of preparation of the financial statements for the year ended 31 March 2021, the directors are required to consider whether the group can continue in operational existence for the foreseeable future; taken to be 12 months from signing the financial statements. The board of directors have concluded that it is appropriate to adopt the going concern basis, having undertaken a thorough assessment of the financial forecasts with specific consideration to the trading position of the group in the context of the current Coronavirus pandemic in the UK, for the reasons set out below. |
|
The directors have assessed the group’s financial commitments and consider, after taking into account cash generated from operations and existing facilities, the business would have sufficient liquidity to continue to operate and to discharge its liabilities as they fall due. |
|
The directors, after reviewing the group’s operating budgets and financing arrangements, consider that the company and Group have sufficient financing available at the date of approval of this report. |
|
The directors have separately considered the uncertainty as to the future impact of COVID-19 on the ongoing concern assessment. To date the impact on the occupancy rates have remained stable, however the directors cannot predict the longer term impact of the crises. The directors do not consider there to be a material uncertainty arising from the specific downside scenario impact of the crises on the company's and group's occupancy levels and cashflows. |
|
Accordingly, the directors are satisfied that it is appropriate to adopt the going concern basis in preparing the financial statements. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Basis of consolidation |
The group’s consolidated financial statements incorporate the results for the company and all entities controlled by the company including its subsidiaries and the group’s share of its interest in joint ventures made up to the year-end date. |
|
Subsidiaries and related undertakings |
Subsidiary undertakings are all entities over which the group has control. Control exists when the group has the power to direct the relevant activities of an entity so as to affect the return on investment. Joint ventures are investments for which the group shares joint control with a third party. All intercompany balances, transactions and unrealised gains are eliminated upon consolidation. |
|
Investments in joint ventures are carried in the group balance sheet at historical cost plus post-acquisition changes in the group's share of net assets of the entity, less any provision for impairment. |
|
Unlisted investments represent partnership contracts for the operation of care homes. These are valued on a regular basis by a qualified Chartered Surveyor. |
|
Company |
Investments in subsidiaries are carried at cost less any impairment loss in the financial statements of the company. |
|
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
|
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
|
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's and group's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
|
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. |
|
The following are the key sources of estimation uncertainty that the directors have assessed as being applicable to the company and group and that the most significant effect on the amounts recognised in the financial statements. |
|
(a) Useful economic life of goodwill |
The group’s consolidated balance sheet includes goodwill, representing the excess of the cost of investments in subsidiary undertakings over the fair value of the underlying net assets at their date of acquisition. As part of the transition to Financial Reporting Standard 102, the directors were required to make a judgement to the useful economic life of the goodwill, which was determined to be between 3 to 10 years. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Critical accounting judgements and key sources of estimation uncertainty |
(b) Valuation of freehold property |
The valuation method of freehold property is considered most likely to have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. In order to provide an up-to-date accurate valuation an external valuer is contracted to value the property; the latest valuation was undertaken 30 September 2019. In future periods, the directors will continue to review the carrying value of the property to ensure it remains in line with its fair value. |
|
(c) Impairment of investment in subsidiary undertakings |
Determining whether the carrying values of the company's investments is impaired requires an estimation of the value in use of the cash-generating units of each of the investments. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. At the balance sheet date, the directors are satisfied that no further provision was necessary against the carrying amount of investments at the balance sheet. |
|
Risk management |
(a) Financial risk |
The group's activities expose it to a variety of financial risks: market risk (including fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department to limit the adverse effects of such finance risks by monitoring levels of debt and related finance costs. |
|
(a - i) Market risk |
The group has no exposure to equity securities price risk, as it has no listed equity investments. The group has both interest-bearing assets and liabilities. Interest-bearing assets include only cash balances, all of which earn interest at a variable rate. The group has a policy of maintaining debt at a fixed or capped rate to ensure certainty of future interest cash flows. Thus the group is only exposed to fair value interest rate risk, which is not expected to have a significant impact on profit or loss or equity. |
|
(a - ii) Credit risk |
Credit risk arises from cash and cash equivalents as well as exposure to customers including outstanding debtors. |
|
(a - iii) Liquidity risk |
The group actively maintains a mixture of long-term and short-term debt finance that is designed to ensure that the group has sufficient available funds for operations and planned expansions. |
|
(b) Capital risk |
The group's objectives when managing capital are to safeguard the group's ability to continue as a going concern, in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. |
|
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Turnover |
Turnover represents fee income receivable from care services provided. Turnover is recognised in the year in which the company and group obtains the right to consideration as the services provided under contracts have been delivered and is recorded art the value of the consideration due. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors. |
|
Turnover wholly arises within the United Kingdom. |
|
Goodwill |
Goodwill arises on consolidation and represents the surplus of fair value of the amount paid for a business (or company) less the fair value of the net assets acquired (assets, liabilities and contingent liabilities). Revisions to goodwill are accounted for in the same manner as the original goodwill. |
|
Goodwill is stated at cost less accumulated amortisation and any accumulated impairment losses. Goodwill is tested annually for impairment. |
|
Goodwill is amortised in equal instalments over their estimated useful economic lives. |
|
The annual rates used are 5 to 10 years. |
|
Amortisation and impairment losses are recognised in the profit and loss within administration expenses. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - | 2% on cost |
Short leasehold | - | in accordance with the property |
Improvements to property | - | 10% on cost |
Fixtures and fittings | - | 25% on cost |
Computer equipment | - | 33% on cost |
|
Freehold land is considered to have an infinite life and is not depreciated. |
|
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
|
Tangible assets (not including freehold property) are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use. |
|
Freehold property is originally stated at deemed cost held at valuation at the date of transition to FRS 102. Freehold property is subsequently held at their latest revaluation amount less any accumulated depreciation and accumulated impairment losses. Revaluation gains and losses are taken to a revaluation reserve within equity and reported as other comprehensive income. Revaluation loss is taken to the revaluation reserve to the extent that there is a surplus on the revaluation reserve. Any excess of the loss over the surplus is taken to the profit and loss account. Revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. Valuations are undertaken on a "desk top" basis by a Chartered Surveyor from Cushman & Wakefield on a bi annual basis. |
|
Impairment of fixed assets |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. |
|
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
|
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
|
Cost includes all costs incurred in bringing each product to its present location and condition, as follows: |
- raw materials, consumables and goods for resale - purchase cost on a first-in, first-out basis. |
|
Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Basic financial instruments |
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable. |
|
(a) Financial assets |
Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
|
Such assets are subsequently carried at amortised cost using the effective interest method. |
|
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. |
|
If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
|
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
|
(b) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
|
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
|
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
|
Derivatives, including foreign currency swaps and forward foreign exchange contracts, are not basic financial instruments. The group has no such financial instruments. |
|
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
|
(c) Offsetting |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
|
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
2. | ACCOUNTING POLICIES - continued |
Taxation |
Current tax |
Current tax is accounted for on the basis of tax laws enacted or substantively enacted at the balance sheet date. Current tax is charged or credited to the profit and loss account, except when it relates to items charged to equity or other comprehensive income. |
|
Deferred tax |
Deferred tax is accounted for on the basis of temporary differences arising from differences between the tax base and accounting base of assets and liabilities. |
|
Deferred tax is recognised for all temporary differences, except to the extent where it arises from the initial recognition of an asset or a liability in a transaction that is not a business combination and, at the time of transaction, affects neither accounting profit nor taxable profit. It is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. |
|
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. |
|
Deferred tax is charged or credited to the profit and loss account, except when it relates to items charged or credited directly to equity or other comprehensive income. |
|
Deferred tax is provided on temporary differences associated with investments in subsidiaries and joint ventures except where the group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. |
|
Pension costs |
The group operates, for the benefit of its employees, a defined contribution scheme. The scheme is funded by the payment of contributions to trustee administered funds which are kept entirely separate from the assets of the group. The group does not operate any defined benefit retirement arrangements. |
|
As of 1 April 2013 it became a statutory requirement to enroll all eligible staff into a workplace pension scheme. Employees are enrolled in the NEST Pension Scheme, an independently administered scheme, and is a defined contribution pension scheme. The employee can choose to "opt out" of the scheme after they have been auto-enrolled, this opt out lasts for three years, after which time the group will be required to re-enroll the employee. The group is required to make employer contributions of the employee's qualifying salary to the NEST Pension Scheme. The pension costs represents contributions payable under the scheme and the group has no liability under the scheme other than for the payment of those contributions. |
|
Contributions outstanding at the balance sheet date amounted to £36,234 (2020 - £34,031). |
|
Share capital |
All company shares are classified as equity. |
|
Incremental costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds. |
|
When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributable costs, is recognised as a deduction from equity. Repurchased shares are cancelled. |
|
Dividends |
Dividends on ordinary shares are recognised as a liability at the time it becomes obligated to pay. |
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the group. |
|
In the opinion of the directors the disclosure of any information required by class of business and geographical markets would be seriously prejudicial to the interests of the group. |
|
4. | EMPLOYEES AND DIRECTORS |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
31.3.21 | 31.3.20 |
£ | £ |
Wages and salaries | 7,302,134 | 7,486,103 |
Social security costs | 519,415 | 502,456 |
Other pension costs | 104,624 | 104,393 |
7,926,173 | 8,092,952 |
|
The average number of employees during the year was as follows: |
31.3.21 | 31.3.20 |
|
Engaged in the provision of care | 370 | 365 |
Catering, domestic and maintenance | 123 | 121 |
Management and administration | 25 | 25 |
518 | 511 |
Key management compensation |
Key management includes the directors of the company and managerial staff of care homes. Key management compensation includes salaries, national insurance costs and pension costs. Costs of key management compensation are included within operating expenses. |
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging: |
|
31.3.21 | 31.3.20 |
£ | £ |
Depreciation - owned assets | 656,947 | 681,173 |
Goodwill amortisation | 28,634 | 28,634 |
Auditors' remuneration | 21,000 | 20,500 |
The auditing of accounts of any associate of the company | 39,890 | 39,221 |
Non-audit services - accounts preparation | 20,905 | 24,543 |
Non-audit services - company secretarial | 6,000 | 6,000 |
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.21 | 31.3.20 |
£ | £ |
Bank loans interest | 143,480 | 206,444 |
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.21 | 31.3.20 |
£ | £ |
Current tax: |
UK corporation tax | 848,974 | 711,181 |
Under provision in prior years | 35 | 26,377 |
Total current tax | 849,009 | 737,558 |
|
Deferred tax | 25,774 | (20,867 | ) |
Tax on profit | 874,783 | 716,691 |
|
UK corporation tax has been charged at 21.49 % (2020 - 23.42 %). |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
7. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
31.3.21 | 31.3.20 |
£ | £ |
Profit before tax | 4,071,474 | 3,036,183 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2020 - 19 %) |
773,580 |
576,875 |
|
Effects of: |
Expenses not deductible for tax purposes | - | 14,980 |
Depreciation in excess of capital allowances | 82,290 | 112,418 |
Utilisation of tax losses | (6,896 | ) | - |
Adjustments to tax charge in respect of previous periods | 35 | 26,377 |
|
Unutilised tax losses | - | 6,908 |
Deferred tax movement | 25,774 | (20,867 | ) |
Total tax charge | 874,783 | 716,691 |
|
Tax effects relating to effects of other comprehensive income |
|
31.3.21 |
Gross | Tax | Net |
£ | £ | £ |
Property revaluation adjustments | - | 2,280 | 2,280 |
|
31.3.20 |
Gross | Tax | Net |
£ | £ | £ |
Property revaluation adjustments | - | (367,255 | ) | (367,255 | ) |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
7. | TAXATION - continued |
|
Factors that may affect future tax charges |
(a) Tax rate changes |
Changes to the UK corporation tax rates were substantively enacted as part of Finance Act 2021 on 24 May 2021 (Royal Assent received on 10 June 2021). These include increasing the main rate of tax from 19% to 25% from 1 April 2023 on profits over £250,000. The rate for small profits under £50,000 will remain at 19%. |
|
Where a company’s profits fall between £50,000 and £250,000 (the lower and upper limits), it will be able to claim an amount of marginal relief, providing a gradual increase in the corporation tax rate. |
|
A 'super-deduction' will be introduced from 1 April 2021 until 31 March 2023 allowing companies to benefit from a 130% first-year allowance for capital expenditure on qualifying new plant and machinery assets. |
|
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements. |
|
(b) Deferred tax |
Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. At the reporting date, unrecognised capital tax losses is calculated to be £3,138,812 (2020: £3,138,812). At the reporting date, there was a deferred tax liability of £253,650 (2020: £253,650) for temporary differences of £1,335,000 (2020: £1,335,000) related to unlisted investments. However, the liability is not recognised as the group does not plan to dispose of the investments in the foreseeable future. In addition, the group controls the timing of reversal of the related taxable temporary differences and management is satisfied that they will not reverse in the foreseeable future. |
|
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
|
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss account of the parent company is not presented as part of these financial statements. |
|
|
9. | EARNINGS PER SHARE |
|
Earnings per share ("EPS") |
EPS directly reflects returns generated for shareholders. |
|
Basic EPS is calculated by dividing the profit or loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the year. |
|
For diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potentially dilutive ordinary shares. Currently the group has no such dilutive instruments. |
|
|
31.3.21 |
Weighted |
average |
number | Per-share |
Earnings | of | amount |
£ | shares | pence |
Basic EPS |
Earnings attributable to ordinary shareholders | 3,196,691 | 6,797,429 | 47.03 |
Effect of dilutive securities | - | - | - |
Diluted EPS |
Adjusted earnings | 3,196,691 | 6,797,429 | 47.03 |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
9. | EARNINGS PER SHARE - continued |
|
|
31.3.20 |
Weighted |
average |
number | Per-share |
Earnings | of | amount |
£ | shares | pence |
Basic EPS |
Earnings attributable to ordinary shareholders | 2,319,492 | 8,139,097 | 28.50 |
Effect of dilutive securities | - | - | - |
Diluted EPS |
Adjusted earnings | 2,319,492 | 8,139,097 | 28.50 |
|
10. | INTANGIBLE FIXED ASSETS |
|
Group |
Goodwill |
£ |
COST |
At 1 April 2020 |
and 31 March 2021 | 445,015 |
AMORTISATION |
At 1 April 2020 | 250,736 |
Amortisation for year | 28,634 |
At 31 March 2021 | 279,370 |
NET BOOK VALUE |
At 31 March 2021 | 165,645 |
At 31 March 2020 | 194,279 |
|
The directors believe that the carrying value of the goodwill is supported by their underlying carrying values. |
|
Amortisation of £28,634 (2020: £28,634) is included in cost of sales in the profit and loss account. |
|
Impairment tests for goodwill |
Goodwill is allocated to the group's cash-generating units (CGUs) identified according to operating segment. The recoverable amount of a CGU is determined based on value in use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by management covering a five year period. Cash flows beyond the five year period are extrapolated using the estimated growth rates stated below. The growth rate does not exceed the long term average growth rate for the whole business in which the CGU operates. |
|
The key assumptions used for value in use calculations are as follows: |
UK |
Discount rate 12% |
Growth rate 3% |
|
These assumptions have been used for the analysis of each CGU within the operating segment. The growth rate used is consistent with its forecasts and expectations of annual fee increases. |
|
Intangible assets are pledged as security against bank loans. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
11. | TANGIBLE FIXED ASSETS |
|
Group |
Improvements |
Freehold | Short | to |
property | leasehold | property |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2020 | 26,490,000 | 850,000 | 555,034 |
Additions | - | - | 47,152 |
At 31 March 2021 | 26,490,000 | 850,000 | 602,186 |
DEPRECIATION |
At 1 April 2020 | 2,084,171 | 321,950 | 92,496 |
Charge for year | 403,691 | 11,990 | 57,625 |
At 31 March 2021 | 2,487,862 | 333,940 | 150,121 |
NET BOOK VALUE |
At 31 March 2021 | 24,002,138 | 516,060 | 452,065 |
At 31 March 2020 | 24,405,829 | 528,050 | 462,538 |
|
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2020 | 1,938,188 | 8,871 | 23,600 | 29,865,693 |
Additions | 236,980 | - | - | 284,132 |
At 31 March 2021 | 2,175,168 | 8,871 | 23,600 | 30,149,825 |
DEPRECIATION |
At 1 April 2020 | 1,707,043 | 8,870 | 23,600 | 4,238,130 |
Charge for year | 183,641 | - | - | 656,947 |
At 31 March 2021 | 1,890,684 | 8,870 | 23,600 | 4,895,077 |
NET BOOK VALUE |
At 31 March 2021 | 284,484 | 1 | - | 25,254,748 |
At 31 March 2020 | 231,145 | 1 | - | 25,627,563 |
|
Included in cost or valuation of land and buildings is freehold land of £6,260,000 (2020 - £6,260,000) which is not depreciated. |
|
At the reporting date, the directors consider that the carrying value of freehold and leasehold property to be in line with open market expectations. |
|
Bank loans are secured over certain freehold property. All other freehold/leasehold property and fixed assets are pledged as security against bank loans. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
11. | TANGIBLE FIXED ASSETS - continued |
|
Group |
|
Cost or valuation at 31 March 2021 is represented by: |
|
Improvements |
Freehold | Short | to |
property | leasehold | property |
£ | £ | £ |
Valuation in 2017 | 4,314,030 | 576,516 | - |
Valuation in 2019 | 1,840,000 | - | - |
Cost | 20,335,970 | 273,484 | 602,186 |
26,490,000 | 850,000 | 602,186 |
|
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2017 | - | - | - | 4,890,546 |
Valuation in 2019 | - | - | - | 1,840,000 |
Cost | 2,175,168 | 8,871 | 23,600 | 23,419,279 |
2,175,168 | 8,871 | 23,600 | 30,149,825 |
|
If land and buildings had not been revalued they would have been included at the following historical cost: |
|
31.3.21 | 31.3.20 |
£ | £ |
Cost | 14,325,347 | 14,176,894 |
Aggregate depreciation | 2,957,520 | 2,766,007 |
|
Value of land in freehold land and buildings | 4,749,674 | 4,749,674 |
|
Land and buildings were valued on without re-inspection basis on 30 September 2019 by M Robb BSc FRICS of Cushman & Wakefield . |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
11. | TANGIBLE FIXED ASSETS - continued |
|
Group |
|
Due to the uncertainty brought on by Covid, the directors have revisted the "Special Comment Regarding Valuation Methodology in a Covid Environment (see below)" as mentioned in the 31 March 2020 financial statements. The directors have reassessed commentary and have concluded due to the material uncertainty existing in the healthcare market, a formal valuation will be reconsidered for the 31 March 2022 financial statements. |
|
"Special Comment Regarding Valuation Methodology in a Covid-19 Environment by Martin Robb BSc FRICS, International Partner, Cushman & Wakefield Debenham Tie Leung Limited. |
|
As at 31 March 2020, the RICS, as the regulatory body for valuations, had recommended that Material Uncertainty clauses be applied to all valuations. |
|
As agents in the healthcare market we noticed almost all transactional activity come to a halt, rather than terminated. A key factor concerning valuations is the presumption of the "willing buyer and willing seller". In our opinion those circumstances did not exist. Sellers were faced with uncertainty around future trade, but if not forced sellers for any reason, they were comfortable in withdrawing the assets from a sale process. Conversely, buyers were looking to reduce prices often for no better reason than they felt they should ask. The result was an impasse accordingly. We believe that a valuation of the assets at 31 March for balance sheet purposes would be difficult as normal market trading conditions had in effect been suspended. |
|
As at September 2020, a valuation for balance sheet purposes would have to look back at market conditions where transactions were largely being put on hold. We would be adopting a date of valuation when Material Uncertainty applied (as defined by the RICS Red Book) and hindsight confirms this was not lifted until late August 2020. In other words, it was not reasonably foreseeable as at 31 March 2020 that it would be lifted. |
|
It therefore seems reasonable to us that a logical conclusion in the circumstances is not to carry out a revaluation for balance sheet purposes as at 31 March 2020." |
|
Company |
Improvements | Fixtures |
Freehold | to | and | Motor |
property | property | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2020 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 31 March 2021 |
|
|
|
|
|
DEPRECIATION |
At 1 April 2020 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
At 31 March 2021 |
|
|
|
|
|
NET BOOK VALUE |
At 31 March 2021 |
|
|
|
|
|
At 31 March 2020 |
|
|
|
|
|
|
Included in cost or valuation of land and buildings is freehold land of £ 1,870,000 (2020 - £ 1,870,000 ) which is not depreciated. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
11. | TANGIBLE FIXED ASSETS - continued |
|
Company |
|
At the reporting date, the directors consider that the carrying value of freehold leasehold property to be in line with open market expectations. |
|
Bank loans are secured over certain freehold property. All other freehold property and fixed assets are pledged as security against bank loans. |
|
Cost or valuation at 31 March 2021 is represented by: |
|
Improvements | Fixtures |
Freehold | to | and | Motor |
property | property | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2014 | 1,256,559 | - | - | - | 1,256,559 |
Valuation in 2017 | 292,999 | - | - | - | 292,999 |
Cost | 4,970,442 | 86,903 | 414,819 | 8,871 | 5,481,035 |
6,520,000 | 86,903 | 414,819 | 8,871 | 7,030,593 |
|
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
|
31.3.21 | 31.3.20 |
£ | £ |
Cost | 4,970,442 | 4,970,442 |
Aggregate depreciation | 1,392,965 | 1,324,344 |
|
Value of land in freehold land and buildings | 1,539,380 | 1,539,380 |
|
Freehold land and buildings were valued on without re-inspection basis on 30 September 2019 by M Robb BSc FRICS of Cushman & Wakefield . |
|
12. | FIXED ASSET INVESTMENTS |
|
Group |
Interest |
in joint | Unlisted |
venture | investments | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2020 | 57,143 | 1,335,000 | 1,392,143 |
Share of profits | 194,722 | - | 194,722 |
Share of profits remitted | (179,142 | ) | - | (179,142 | ) |
At 31 March 2021 | 72,723 | 1,335,000 | 1,407,723 |
NET BOOK VALUE |
At 31 March 2021 | 72,723 | 1,335,000 | 1,407,723 |
At 31 March 2020 | 57,143 | 1,335,000 | 1,392,143 |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
Group |
|
Interest in joint venture |
|
South Garth Residential Care Home |
The group's share of South Garth Residential Care Home is as follows: |
|
31.3.21 | 31.3.20 |
£ | £ |
Turnover | 398,525 | 355,369 |
|
Profit before tax | 194,723 | 129,143 |
Taxation | (36,997 | ) | (24,537 | ) |
Profit after tax | 157,726 | 104,606 |
|
Share of assets |
Fixed assets | - | - |
Current assets | 88,255 | 92,336 |
|
Share of liabilities |
Liabilities due within one year | (15,532 | ) | (35,193 | ) |
Liabilities due after one year or more | - | - |
|
|
Share of net assets | 72,723 | 57,143 |
|
Cost or valuation at 31 March 2021 is represented by: |
|
Interest |
in joint | Unlisted |
venture | investments | Totals |
£ | £ | £ |
Valuation in 2019 | - | 1,335,000 | 1,335,000 |
Cost | 72,723 | - | 72,723 |
72,723 | 1,335,000 | 1,407,723 |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2020 |
and 31 March 2021 |
|
|
6,879,453 |
PROVISIONS |
At 1 April 2020 |
and 31 March 2021 | 631,995 | - | 631,995 |
NET BOOK VALUE |
At 31 March 2021 |
|
|
6,247,458 |
At 31 March 2020 |
|
|
6,247,458 |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
12. | FIXED ASSET INVESTMENTS - continued |
|
Company |
|
Cost or valuation at 31 March 2021 is represented by: |
|
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
Valuation in 2017 | - | 1,425,000 | 1,425,000 |
Valuation in 2019 | - | (90,000 | ) | (90,000 | ) |
Cost | 5,544,453 | - | 5,544,453 |
5,544,453 | 1,335,000 | 6,879,453 |
|
|
All undertakings listed below are either fully or jointly owned by the company and interests represent ordinary share capital, except where otherwise indicated. All undertakings are consolidated in full. |
|
The nature of business for all the undertakings listed below: operating nursing home(s). |
The registered address for all the undertakings listed below: Woodlands of Woolley Residential Home, Woolley Low Moor Lane, Wakefield, WF4 2LN. |
|
a) Subsidiary undertakings |
Entity |
Country of
incorporation |
Interest |
Holding |
ADL Derby Limited | UK | 100% | Direct |
ADL Leased Homes Limited | UK | 100% | Direct |
ADL Liverpool Limited | UK | 100% | Direct |
Solutions (Yorkshire) Limited | UK | 100% | Direct |
Sunnymede Limited | UK | 100% | Direct |
Woodland Healthcare Limited | UK | 100% | Direct |
Woodland Nursing Homes Limited | UK | 100% | Direct |
Woodlands Of Woolley Limited | UK | 100% | Direct |
|
b) Undertakings other than subsidiary undertakings |
Joint venture |
The company is in a 50% joint venture in operating an unincorporated partnership, South Garth Residential Care, situated in the UK. |
|
Group and company |
The directors consider that the carrying value of investments are supported by their underlying net assets. |
|
Investments are pledged as security against bank loans. |
|
13. | STOCKS |
|
Group | Company |
31.3.21 | 31.3.20 | 31.3.21 | 31.3.20 |
£ | £ | £ | £ |
Stocks | 14,500 | 14,500 |
|
|
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
Group | Company |
31.3.21 | 31.3.20 | 31.3.21 | 31.3.20 |
£ | £ | £ | £ |
Trade debtors | 877,308 | 700,973 |
|
|
Amounts owed by group undertakings | - | - |
|
|
Amounts owed by participating interests | 605,868 | 526,650 | 605,868 | 526,650 |
Other debtors | 81,862 | 569,274 |
|
|
Tax | - | - |
|
|
Prepayments and accrued income | 115,391 | 117,036 |
|
|
1,680,429 | 1,913,933 |
|
|
|
Amounts owed by group undertakings and participating interests are unsecured, attract no interest, have no fixed terms of repayment and considered payable on demand. |
|
All debtors held in the group and company are pledged as security against bank loans. |
|
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
Group | Company |
31.3.21 | 31.3.20 | 31.3.21 | 31.3.20 |
£ | £ | £ | £ |
Bank loans (see note 17) | 749,339 | 717,998 |
|
|
Trade creditors | 218,937 | 250,731 |
|
|
Amounts owed to group undertakings | - | - |
|
|
Tax | 424,965 | 182,543 |
|
|
Social security and other taxes | 229,011 | 219,514 |
|
|
Other creditors | 1,019,717 | 738,103 |
|
|
Accruals and deferred income | 211,111 | 194,196 |
|
|
2,853,080 | 2,303,085 |
|
|
|
Amounts owed to group undertakings and participating interests are unsecured, attract no interest, have no fixed terms of repayment and considered payable on demand. |
|
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
|
Group | Company |
31.3.21 | 31.3.20 | 31.3.21 | 31.3.20 |
£ | £ | £ | £ |
Bank loans (see note 17) | 5,673,891 | 6,454,571 |
|
|
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
17. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
Group | Company |
31.3.21 | 31.3.20 | 31.3.21 | 31.3.20 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 749,339 | 717,998 |
|
|
Amounts falling due between one and two | years: |
Bank loans | 749,339 | 736,392 |
|
|
Amounts falling due between two and five | years: |
Bank loans | 2,248,014 | 2,319,537 |
|
|
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 2,676,538 | 3,398,642 | 2,676,538 | 3,398,642 |
|
18. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
Group | Company |
31.3.21 | 31.3.20 | 31.3.21 | 31.3.20 |
£ | £ | £ | £ |
Bank loans | 6,423,230 | 7,172,569 |
|
|
|
Bank loans are secured by registered legal charges over certain freehold property. The legal charges additionally include fixed and floating charges over all the property and undertakings of the company. There is a negative pledge. |
|
The group's debt facilities comprise: |
- a loan facility of £4,040,000 repayable in monthly instalments over a fifteen year term. These instalments are £26,208. This facility carries interest at 2.0% over the Bank of England Base Rate. |
- |
- a loan facility of £7,000,000 repayable in monthly instalments over a fifteen year term. These instalments are £46,685. This facility carries interest at 2.0% over the Banks' Sterling Base Rate. |
|
The group is required to fulfil certain financial covenant conditions in relation to the cash flows available to cover debt servicing obligations. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
19. | BASIC FINANCIAL INSTRUMENTS |
|
The group has the following basic financial instruments: |
31.3.21 | 31.3.20 |
£ | £ |
Financial assets measured at amortised cost | 6,570,837 | 3,745,435 |
|
Financial liabilities measured at amortised cost | 7,872,995 | 8,161,403 |
|
|
The company has the following basic financial instruments: |
31.3.21 | 31.3.20 |
£ | £ |
Financial assets measured at amortised cost | 6,733,789 | 5,401,946 |
|
Financial liabilities measured at amortised cost | 9,308,390 | 8,075,691 |
|
20. | PROVISIONS FOR LIABILITIES |
|
Group | Company |
31.3.21 | 31.3.20 | 31.3.21 | 31.3.20 |
£ | £ | £ | £ |
Deferred tax | 1,725,022 | 1,701,528 | 78,199 | 63,150 |
|
Group |
Deferred |
tax |
£ |
Balance at 1 April 2020 | 1,701,528 |
Accelerated capital allowances | 23,494 |
Balance at 31 March 2021 | 1,725,022 |
|
Company |
Deferred |
tax |
£ |
Balance at 1 April 2020 |
|
Accelerated capital allowances | 15,049 |
Balance at 31 March 2021 |
|
|
21. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.21 | 31.3.20 |
value: | £ | £ |
|
Ordinary | 0.05 | 334,576 | 343,524 |
|
Deferred | 0.05 | 1,027,530 | 1,027,530 |
1,362,106 | 1,371,054 |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
21. | CALLED UP SHARE CAPITAL - continued |
|
Deferred shares do not entitle the holder to receive notice of and to attend or vote at any general meeting of the company or to receive dividends or other distributions. Upon winding up or dissolution of the company the holders of deferred shares shall be entitled to receive an amount equal to the nominal amount paid up thereon, but only after holders of ordinary shares have received £1,000 per ordinary share. Holders of deferred shares are not entitled to any further rights of participation in the assets of the company. |
|
Purchase of own shares and cancellation |
During the reporting period, the company purchased and cancelled ordinary 5p shares totalling 178,966 (2020: 1,682,945). The cancelled shares represented 0.65% (2020: 5,79%) of the called up share capital. The shares were acquired for a total consideration of £536,898 (2020: £4,988,835) and the nominal value of the shares totalled £8,948 (2020: £84,147). The maximum and minimum prices paid were 300 per share respectively. Share-related expenses in relation to stamp duty and other charges were £16,995 (2020: £27,088). |
|
22. | RESERVES |
|
Group |
Capital |
Retained | Share | Revaluation | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
|
At 1 April 2020 | 6,515,851 | 3,712,396 | 8,880,830 | 151,641 | 19,260,718 |
Profit for the year | 3,196,691 | - | - | - | 3,196,691 |
Tax effect on revaluations | - | - | 2,280 | - | 2,280 |
Depreciation transfer | 267,913 | - | (267,913 | ) | - | - |
Purchase of own shares | (553,893 | ) | - | - | - | (553,893 | ) |
Maintain capital upon
redemption |
- |
- |
- |
8,949 |
8,949 |
At 31 March 2021 | 9,426,562 | 3,712,396 | 8,615,197 | 160,590 | 21,914,745 |
|
Company |
Capital |
Retained | Share | Revaluation | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
|
At 1 April 2020 |
|
|
|
|
8,277,436 |
Profit for the year |
|
- | - | - |
|
Depreciation transfer | 64,543 | - | (64,543 | ) | - | - |
Purchase of own shares | (553,893 | ) | - | - | - | (553,893 | ) |
Maintain capital upon
redemption |
- |
- |
- |
8,949 |
8,949 |
At 31 March 2021 |
|
|
|
|
8,264,769 |
|
Share premium represents the difference between par value of the ordinary shares issued and the subscription price or issue price. |
|
Revaluation reserve represents the surplus or deficit arising between the fair value and book value of freehold/leasehold properties and deferred tax thereon. |
|
Capital redemption reserve represents the movement of the nominal value of ordinary shares cancelled. |
ADL PLC (REGISTERED NUMBER: 02463465) |
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
|
23. | RELATED PARTY DISCLOSURES |
|
Group and company |
Charlton Court Limited and Oakhurst Court Limited |
Company directors Mr W J Davies and Mrs P L Jackson are common key management personnel. |
|
The group has previously entered into separate partnership agreements with the related parties. |
During the reporting period, amounts £362,836 (2020: £408,089) and £163,435 (2020: £100,000) respectively were due to the company. |
|
At the reporting date, the company was owed £88,436 (2020: £93,302) and £517,432 (2020: £433,348) respectively. |
|
Outstanding amounts are unsecured, attract no interest, have no fixed terms of repayment and considered payable on demand. |
|
24. | POST BALANCE SHEET EVENTS |
|
The COVID-19 pandemic has developed rapidly in 2020 & 2021 respectively. Measures taken by various governments to contain the virus have affected economic activity and the extent and quantum of the disruptions remain uncertain. We have taken a number of measures to monitor and mitigate the effects of COVID-19, such as social distancing, working from home and securing the supply of services that are essential to our business. At this stage, the impact on our business and results has not been significant and based on our experience to date we expect this to remain the case. We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our business in the best and safest way possible. |
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25. | ULTIMATE CONTROLLING PARTY |
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The ultimate parent undertaking and controlling party is ADL plc (a public limited company incorporated in England and Wales). ADL plc is both the smallest and largest group the consolidated financial statements are drawn up. The registered office address of ADL plc is c/o Woodlands Of Woolley Residential Home, Woolley, Low Moor Lane, Woolley, Wakefield, England, WF4 2LN. Copies of ADL plc financial statements to 31 March 2021 may be obtained from the registered office address. |
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There has been no change between the reporting date and date of approval of the financial statements. |
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26. | RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS |
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Group |
31.3.21 | 31.3.20 |
£ | £ |
Profit for the financial year | 3,196,691 | 2,319,492 |
Other comprehensive income relating to the year (net) | 2,280 | (367,255 | ) |
Purchase own shares | (553,892 | ) | (5,015,055 | ) |
Net addition/(reduction) to shareholders' funds | 2,645,079 | (3,062,818 | ) |
Opening shareholders' funds | 20,631,772 | 23,694,590 |
Closing shareholders' funds | 23,276,851 | 20,631,772 |
ADL PLC (REGISTERED NUMBER: 02463465) |
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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26. | RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS - continued |
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Company |
|
31.3.21 | 31.3.20 |
£ | £ |
Profit for the financial year |
|
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Other comprehensive income relating to the year (net) | - | (360,458 | ) |
Purchase own shares | (553,892 | ) | (5,015,055 | ) |
Net reduction of shareholder funds | (21,615 | ) | (3,191,572 | ) |
Opening shareholder funds | 9,648,490 | 12,840,062 |
Closing shareholder funds | 9,626,875 | 9,648,490 |
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27. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.21 | 31.3.20 |
£ | £ |
Profit before taxation | 4,071,474 | 3,036,183 |
Depreciation charges | 685,581 | 709,807 |
Government grants | (1,478,850 | ) | - |
Finance costs | 143,480 | 206,444 |
Finance income | (2,607 | ) | - |
3,419,078 | 3,952,434 |
Decrease in trade and other debtors | 312,722 | 183,309 |
Increase in trade and other creditors | 260,652 | 26,827 |
Cash generated from operations | 3,992,452 | 4,162,570 |
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28. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 31 March 2021 |
31.3.21 | 1.4.20 |
£ | £ |
Cash and cash equivalents | 5,005,799 | 1,948,538 |
Year ended 31 March 2020 |
31.3.20 | 1.4.19 |
£ | £ |
Cash and cash equivalents | 1,948,538 | 4,751,031 |
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ADL PLC (REGISTERED NUMBER: 02463465) |
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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29. | ANALYSIS OF CHANGES IN NET DEBT |
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At 1.4.20 | Cash flow | At 31.3.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,948,538 | 3,057,261 | 5,005,799 |
1,948,538 | 3,057,261 | 5,005,799 |
Debt |
Debts falling due within 1 year | (717,998 | ) | (31,341 | ) | (749,339 | ) |
Debts falling due after 1 year | (6,454,571 | ) | 780,680 | (5,673,891 | ) |
(7,172,569 | ) | 749,339 | (6,423,230 | ) |
Total | (5,224,031 | ) | 3,806,600 | (1,417,431 | ) |