Registered number:
FOR THE YEAR ENDED 31 MARCH 2023
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LIFECARE RESIDENCES LIMITED
COMPANY INFORMATION
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LIFECARE RESIDENCES LIMITED
CONTENTS
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LIFECARE RESIDENCES LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their strategic report together with the audited financial statements for the year ended 31 March 2023.
LifeCare Residences and its subsidiaries ("the group") develops and operates continuing care retirement communities in London and Southern England. The results for the group show a pre tax loss of £3.2 million (2022 – loss of £3.8 million). The group has a net asset position of £38.5 million (2022 - £41.8 million).
During the year, the group recognised a surplus on revaluation of the investment property of £1.2 million (2022- deficit of £0.4 million) and generated £0.3 million (2022 – profit of £1.6 million) of operating profit at its three retirement villages. The group currently operates 286 retirement village apartments and 68 nursing home beds.
The key focus of the group in delivering exceptional retirement communities is under pinned by our staff providing impeccable service to our residents. To maintain these standards, the group operates a tailored development programme which involves annual target setting and consistent training programmes.
Furthermore, all new employees receive a role specific induction to ensure a coherent understanding of the business and its primary objective of providing exceptional retirement communities and care. Cross village participation and communication is proactively encouraged to ensure best practice ideas and ways of working are shared throughout the group.
Since all of the apartments in the Battersea Place development were sold, the company has been operating three completed and fully sold-down retirement villages in the UK. The directors have confidence the business strategy is a viable, profitable and scalable business, and focus is being placed on maintaining and building upon the high standards of luxury care and 5 star amenities provided at the villages.
The company continues to assess the development opportunities available to it with regards to its proposed North London retirement village on the land owned in Hampstead and is committed to delivering a nursing home proposition at Grove Place Village. Planning options for a revised scheme in Hampstead are continuing, whilst the Grove Place nursing home has been granted revised planning permission in January 2023.
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LIFECARE RESIDENCES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The management of the business and the execution of the group's strategy are subject to a number of risks.
At the time of writing, management is confident that they have reacted to the global COVID-19 pandemic in a way that has protected its staff and residents and has maintained a platform for future growth. Demand for retirement living continues to outweigh supply and the nursing homes occupancy remains stable. Management therefore believe that the future financial wellbeing of the group has been safeguarded. Other key business risks and uncertainties affecting the group are considered to relate to competition from other national and independent operators, executive retention, events leading to reputational risk, product availability, regulatory requirements and tightening of the debt markets.
1. Value of resales
The table below illustrates the number of resales that have taken place at each retirement community, what the total resale value was and how much of the proceeds were attributable to the group:
2. Care facility occupancy
This is the occupancy rate at the Somerleigh Court and Battersea Place nursing homes. The objective of the group is to maximise the occupancy rate for the nursing homes by providing high quality care services. This objective is important to the group as occupancy is a key driver for EBITDA. For the year ended 31 March 2023 the average occupancy at Somerleigh Court was 80% (2022 - 91%). Somerleigh management during FY23 focused on increasing average weekly fee levels and providing the appropriate care types for the home. This resulted in a move away from high-dependency-dementia care as well as a period of upgrade within the home, both of which created a transitional period of lower occupancy. The lower-than-expected average occupancy in FY23 is therefore viewed as a temporary outcome of the operational improvement process with EBITDA margins improving in FY24. Battersea Place average occupancy of 61% (2022 - 47%) is seeing a steady increase through referrals for post-operative care.
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LIFECARE RESIDENCES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
This report was approved by the board on 8 February 2024 and signed on its behalf.
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LIFECARE RESIDENCES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.
The loss for the year, after taxation, amounted to £3.57 million (2022 - £8.56 million)).
During the year, distributions of £Nil were made to the shareholders (2022: £Nil).
The directors who served during the year were:
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LIFECARE RESIDENCES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The Group's subsidiaries are below the size threshold for reporting energy and carbon information. The parent company's UK energy use is below 40 MWh in the reporting period.
A summary of the future developments of the business is given in the strategic report set out on pages 1 - 3.
The group has implemented a robust framework for employee engagement, which includes regular team meetings, feedback sessions, and an open-door policy that encourages staff to voice their concerns and suggestions. These initiatives have fostered a positive work environment. Additionally, the introduction of specialised training programmes has not only enhanced the skills of our staff but also demonstrated a significant investment in their professional development. This proactive approach in engaging with employees has contributed to the delivery of high-quality care and services, aligning with the organisation's commitment to excellence in the retirement village sector.
The £2,922,818 (Nominal Amount) LCR Zero-Coupon Deep Discount Bonds (Bonds A) were settled on 15 June 2023 through the issuance of £3,391,110 (Nominal Amount) LCR Zero-Coupon Deep Discount Bonds (Bonds D) at a discounted subscription price of £2,922,818 and a redemption date of 14 June 2025.
On 4th May 2023, the £2.5m Leumi Loan at Somerleigh was extended, with a prepayment of £0.5m payable immediately and the remaining £2m balance payable on termination date 30th April 2024.
The auditors, White Hart Associates (London) Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
As permitted by paragraph 1A of schedule 7 to the Large and Medium Sized Companies and Group (Accounts and Reports) Regulation 2008, certain matters which are required to be disclosed in the directors’ report have been omitted as they are included in the strategic report on page 1 - 2. These matters relate to the principal activity and financial risk.
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LIFECARE RESIDENCES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
This report was approved by the board on
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LIFECARE RESIDENCES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIFECARE RESIDENCES LIMITED
We have audited the financial statements of Lifecare Residences Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Group Income Statement, the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the group and the parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or 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.
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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LIFECARE RESIDENCES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIFECARE RESIDENCES LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the 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 Directors' Report.
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LIFECARE RESIDENCES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIFECARE RESIDENCES LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We exercise professional judgment and maintain professional skepticism throughout the audit; - We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control; - We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control; - We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made; - We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, assessing whether the judgements made in making accounting estimates, in particular revenue recognition as well as the valuation of investment properties and property plant and equipment, are indicative of a potential bias; and evaluating the business rationale of significant transactions outside the normal course of business; - We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;
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LIFECARE RESIDENCES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIFECARE RESIDENCES LIMITED (CONTINUED)
- We conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. if we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditors
2nd Floor, Nucleus House
2 Lower Mortlake Road
TW9 2JA
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LIFECARE RESIDENCES LIMITED
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
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LIFECARE RESIDENCES LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
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LIFECARE RESIDENCES LIMITED
REGISTERED NUMBER: 05110137
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
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LIFECARE RESIDENCES LIMITED
REGISTERED NUMBER: 05110137
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 February 2024.
The notes on pages 21 to 46 form part of these financial statements.
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LIFECARE RESIDENCES LIMITED
REGISTERED NUMBER: 05110137
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
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LIFECARE RESIDENCES LIMITED
REGISTERED NUMBER: 05110137
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023
The notes on pages 21 to 46 form part of these financial statements.
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LIFECARE RESIDENCES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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LIFECARE RESIDENCES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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LIFECARE RESIDENCES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
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LIFECARE RESIDENCES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
LifeCare Residences Limited is a private company, limited by shares, incorporated in England & Wales under the Companies Act 2006. The address of the registered office is given on the company information page and the nature of the company’s operations and its principal activities are set out in the directors’ report.
The financial statements have been presented in pound sterling as this is the currency of the primary economic environment in which the company operates and is rounded to the nearest pound.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
Parent company disclosure exemptions
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102: - only one reconciliation of the number of shares outstanding at the beginning and end of the year has been presented as the reconciliation for the company and the parent company would be identical; - no statement of cash flows has been presented for the parent company; - disclosures in respect of the parent company’s financial instruments have not been presented as equivalent disclosures have been provided in respect of the company as a whole; and - no disclosures have been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the company as a whole.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are deconsolidated from the date control ceases.
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
The group meets its day-to-day working capital requirements primarily through its income, bank loan facilities and when required, the continuing support of its shareholders. The directors prepare financial forecasts and monitor performance of the group on an ongoing basis and have prepared a financial projection for a period of 12 months from the date of approval of the financial statements. These forecasts as approved by the directors are also used to assess the bank loan facilities which includes covenants over annualised interest cover and Loan to Value.
The Group was in compliance with all of its loan covenants as at 31 March 2023. The forecasts prepared by the directors reflect the repayment of the Leumi loan facility is payable within the 12-month going concern period. It is the intention of the LCR Group to extend and refinance the loan, with Leumi working on a proposal to extend such facility. At the date of signing the accounts, no formal loan agreement has been agreed, and the shareholders have provided a deed of support confirming their intention to support the Group for the duration of the going concern period which includes providing funding to repay the bank debt as required. As described in the strategic report the Group has been impacted by COVID-19 and the resultant impact on the economy. In assessing going concern the directors have produced cash flow forecasts as stated above which they consider to be an accurate forecast of the business operating in the COVID-19 environment. Given the revised covenant requirements and anticipated future property sales that are suitably advanced for the directors to incorporate the sales into their cashflows, the directors do not consider there be an indication that there is a material uncertainty over the group’s ability to continue as a going concern. Income from the provision of property management and care services is recognised in the period the service is provided. Sales of properties are recognised on legal completion. The group sells properties under a long lease, under the lease the group transfers the risks and rewards of ownership to the lessee. Grants of such leases are treated as sales, with the attributable income and costs of sales being taken to the statement of comprehensive income.
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated Income Statement in the same period as the related expenditure. The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase/(decrease) in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Land is not depreciated. Depreciation on other assets charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Page 27
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
• The directors have considered the nature of the group’s assets and consider it appropriate to classify as investment property the freehold and leasehold property interests on which the group will generate future income from the receipts of deferred fees. Other key sources of estimation uncertainty • Tangible fixed assets (see note 11) Tangible fixed assets, other than investments properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing assets lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. • The freehold property valuations are based on a multiple between 7 to 8.25 times EBITDA. • The freehold investment property is based on a professional valuation using a net present value of expected cashflow method. Key inputs into the valuations, were: Length of cashflows: 25 years WACC: 8.50% - 10.00% Average length of stay: 6.5 – 7.5 years Average property value growth rate: 4 % per annum 50% capital gains share in some properties Service charge subsidies of £81,890 or service charge losses of up to £930,000 depending on the nature of the property . • Accruals (note 17) In order to provide for all valid liabilities which exist at the reporting date, the group is required to accrue for certain costs or expenses which have not been invoiced and therefore the amount of which cannot be known with certainty such accruals are based on managements best judgement and past experience.
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 29
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 30
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 31
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
10.Taxation (continued)
The group has a potential deferred tax asset amounting to £6,569,120 (2022 - £5,591,132) which has not been recognised on the grounds that there is insufficient evidence at the current time that the asset will be recoverable in the foreseeable future.
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11.Tangible fixed assets (continued)
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 35
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 36
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The 2023 valuations were made by Colliers international, on an open market value for existing use basis.
Directors assessments of valuations were based on valuations given by qualified professional external advisers in the year to 31 March 2023.
The historical cost of the investment property was £5,015,000 (2022: £5,015,000).
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 38
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 39
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Bank loans include a loan in Somerleigh Court Limited with Leumi, which is secured over this subsidiary’s property which is held at a valuation of £5,445,000. Interest is repayable at SONIA +3% per annum. On 15th March 2023, Somerleigh Court Limited extended the £2,500,000 Leumi loan facility to 16th May 2023; which was further extended on 4th May 2023, requiring £500,000 (2022: £2,495,000) payable within a year and disclosed under Note 17, with the remaining £2,000,000 (2022: £Nil) payable on the loan termination date of 30th April 2024 and disclosed in the table above as payable after more than a year.
Bank loans also include a loan in Battersea Place Retirement Village Limited with Investec Bank Plc, which is secured over this subsidiary’s freehold property at Battersea held at valuation of £70,840,000. On 17th March 2023, Battersea Place Retirement Village Limited extended the £6,300,000 Investec loan facility to 31st March 2026. Principle payments will commence on 31 March 2023 on a 6 monthly basis, whilst interest will remain payable on a quarterly basis. Furthermore, the annualised interest cover and EBITDA to net debt financial covers were removed. As at the year-end £5,400,000 (2022 - £Nil) is reflected in the above table payable after more than a year, with £600,000 (2022 - £7,200,000) payable within a year reflected in Note 17. Included in the amounts due to other participating interests after more than a year include the LCR Zero-Coupon Deep Discount Bonds with an accumulated value of £5,523,048 (2022 - £Nil) at year end. The total of preference shares in issue at 31 March 2023 amounts to £32,788,763 (2022 - £29,301,339), with £4,632,041 (2022: Nil) shares redeemed and £8,119,465 (2022 - £Nil) new shares issued, on 18th July 2022. £3,487,424 (2022: Nil) of the accumulated dividend was also paid on such date. The shares accrued a 5% annual dividend of £1,705,567 (2022 - £1,465,067) during the year, with £1,149,853 (2022 - £2,931,710) accrued at the year end. Disclosure of the terms and conditions attached to these non-equity shares is made in Note 22.
Page 40
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Financial assets measured at amortised cost comprise trade and other debtors, amounts due from group undertakings, accrued income and cash at bank and in hand.
Financial liabilities measured at amortised cost comprise trade and other creditors, amounts due to group undertakings, loans and accruals and bank overdrafts.
Page 41
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 42
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
22.Share capital (continued)
In July 2022, £4,632,041 preference shares were redeemed from PHC Treasury (UK) Limited and £8,119,465 preference shares were issued to Renaissance Holdings (NZ) Limited. These were all settled through the promissory notes.
Share premium account
Revaluation reserve
Retained earnings
Page 43
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 44
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amouonted to £124,873 (2022- £127,042). Contributions totalling £29,182 (2022 - £23,847) were payable to the fund at the reporting date.
Page 45
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LIFECARE RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The Leumi Loan at Somerleigh was extended on 4th May 2023, with further details made in Note 18.
Th company's immediate parent company is Renaissance Holdings (NZ) Limited incorporated in New Zealand. At 31 March 2023 the company's ultimate controlling shareholders are the family trusts of Cliff and Sue Cook.
Page 46
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