Company Registration No. 08739773 (England and Wales)
RUSSETTINGS CARE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
PAGES FOR FILING WITH REGISTRAR
RUSSETTINGS CARE LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 11
RUSSETTINGS CARE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2021
31 March 2021
- 1 -
2021
2020
Notes
£
£
£
£
Non-current assets
Intangible assets
4
86,156
115,656
Property, plant and equipment
5
1,388,175
1,408,351
1,474,331
1,524,007
Current assets
Inventories
1,090
1,060
Trade and other receivables
6
361,591
311,032
Cash and cash equivalents
330,401
178,992
693,082
491,084
Current liabilities
7
(499,090)
(527,326)
Net current assets (liabilities)
193,992
(36,242)
Total assets less current liabilities
1,668,323
1,487,765
Non-current liabilities
8
(1,353,337)
(1,266,407)
Provisions for liabilities
(38,685)
(41,553)
Net assets
276,301
179,805
Equity
Called up share capital
100
100
Retained earnings
276,201
179,705
Total equity
276,301
179,805
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
RUSSETTINGS CARE LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MARCH 2021
31 March 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 8 November 2021 and are signed on its behalf by:
Mr A Stuttle
Mr S Hurden
Director
Director
Company Registration No. 08739773
RUSSETTINGS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 3 -
1
Accounting policies
Company information
Russettings Care Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
31/33 Commercial Road, Poole, Dorset, BH14 0HU and the principal place of business is Mill Lane, Balcombe, Haywards Heath, RH17 6NP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have adopted the going concern basis in preparing these accounts, after assessing the principal risks and having considered the impact of a severe downside scenario for COVID-19. The directors considered the impact of the current COVID-19 environment on the business for the next 12 months and in the longer term.
true
Whilst the situation evolves daily, making scenario forecasting difficult, the directors have considered a number of impacts on fee income, profitability and cash flow. They have assumed that due to the nature of the trade of the business, with residential care services being an essential supply to many private and Local Authority clients, business operations will continue into the future, with the requirement for such services likely to increase rather than contract. Whilst the biggest risk faced would be a significant reduction in occupancy resulting from COVID-19, due to the nature of the trade there is expected to be a continued regenerating income stream going forward and any consequential effect would therefore likely manifest itself primarily in a cash flow timing issue as opposed to a significantly detrimental absolute impact on company profitability.
However, the company has sufficient cash reserves and has taken advantage of Government financial support available, such as care sector specific income grants, to enable it to meet its obligations as they fall due for a period of at least 12 months from the date of signing of these financial statements. The directors believe from their regular review of the company’s financial position and performance that the company is well placed to manage its financing and business risks satisfactorily and they therefore consider it appropriate to adopt the going concern basis in preparing these accounts.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
RUSSETTINGS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 4 -
Revenue from the supply of care services represents the value of services provided under contracts to the
extent that there is a right to consideration and is recorded at the fair value of the consideration received or
receivable. Where payments are received from customers in advance of services provided the amounts
are recorded as deferred income and included as part of payables due within one year.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life
of 10 years.
1.5
Property, plant and equipment
Property, plant and equipment
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
Fixtures, fittings & equipment
15% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of non-current assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Inventories
Inventories
are stated at the lower of cost and
estimated selling price less costs to complete and sell
.
RUSSETTINGS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 5 -
Cost is calculated using the weighted average method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of
inventories over its estimated selling price less costs to complete and sell is recognised as an impairment
loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method 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.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
RUSSETTINGS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 6 -
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
RUSSETTINGS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
51
48
4
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2020 and 31 March 2021
295,000
Amortisation and impairment
At 1 April 2020
179,344
Amortisation charged for the year
29,500
At 31 March 2021
208,844
Carrying amount
At 31 March 2021
86,156
At 31 March 2020
115,656
Intangible fixed assets
with a carrying amount of £86,156 (2020 - £115,656) have been pledged to secure borrowings of the company.
RUSSETTINGS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 8 -
5
Property, plant and equipment
Freehold land and buildings
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 April 2020
1,383,619
447,490
1,831,109
Additions
18,249
35,345
53,594
At 31 March 2021
1,401,868
482,835
1,884,703
Depreciation and impairment
At 1 April 2020
139,052
283,706
422,758
Depreciation charged in the year
15,477
58,293
73,770
At 31 March 2021
154,529
341,999
496,528
Carrying amount
At 31 March 2021
1,247,339
140,836
1,388,175
At 31 March 2020
1,244,567
163,784
1,408,351
Property, plant and equipment
with a carrying amount of £1,388,175 (2020 - £1,408,351) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings
.
6
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Trade receivables
102,860
118,516
Other receivables
234,738
152,014
Prepayments and accrued income
23,993
40,502
361,591
311,032
Trade and other receivables
with a carrying amount of £361,591 (2020 - £311,032) have been pledged to secure borrowings of the company.
RUSSETTINGS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 9 -
7
Current liabilities
2021
2020
£
£
Bank loans
61,120
55,869
Other borrowings
133,516
140,424
Trade payables
25,413
67,143
Corporation tax
43,298
8,272
Other taxation and social security
19,715
17,599
Other payables
87,566
104,304
Accruals and deferred income
128,462
133,715
499,090
527,326
The bank loans and overdrafts totalling £61,120 (2020: £55,869) are secured via fixed and floating charges over the company's assets, a cross guarantee from an associate and a personal guarantee from the company's directors.
8
Non-current liabilities
2021
2020
Notes
£
£
Bank loans and overdrafts
1,353,337
1,266,407
The bank loans and overdrafts totalling £1,353,337 (2020: £1,266,407) are secured via fixed and floating charges over the company's assets, a cross guarantee from an associate and a personal guarantee from the company's directors.
Amounts included above which fall due after five years are as follows:
Payable by instalments
970,342
-
9
Financial commitments, guarantees and contingent liabilities
To assist with the financing for the purchase of Russettings Care Home, a company under the same common control as Russettings Care Limited provided an unlimited cross guarantee.
RUSSETTINGS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 10 -
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
Within one year
10,878
11,278
10,878
11,278
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due to related parties
£
£
Other related parties
133,516
140,424
133,516
140,424
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due from related parties
£
£
Entities under common control
204,372
130,189
204,372
130,189
A family members of one of the directors has loaned the company £133,516 (2020: £140,424). The loan is repayable on demand.
12
Directors' transactions
Dividends totalling £40,000 (2020 - £80,000) were paid in the year in respect of shares held by the company's directors.
As at 31 March 2021 the company owed the directors £79,522 (2020: £94,514) on loan account. This loan is repayable on demand. Interest of £6,000 (2020: £6,000) is payable in respect of this loan at a rate of 8%.
RUSSETTINGS CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 11 -
13
Controlling party
The company is controlled by the directors by virtue of their 75% holding of the issued share capital of the company.
2021-03-31
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false
08 November 2021
CCH Software
CCH Accounts Production 2021.200
No description of principal activity
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Mr S Hurden
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