Ryecourt Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04120697 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2018

FOR

RYECOURT LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

Mr D Bell

Mrs L Symms

Mrs B C Bell

SECRETARY:

Mrs B C Bell

REGISTERED OFFICE:

17 St Peters Place

Fleetwood

Lancashire

FY7 6EB

REGISTERED NUMBER:

04120697 (England and Wales)

AUDITORS:

Jones Harris Limited

Statutory Auditors

17 St Peters Place

Fleetwood

Lancashire

FY7 6EB

The directors present their strategic report of the company and the group for the year ended 31 May 2018.

REVIEW OF BUSINESS

The group's performance is a combination of the performance of the parent company, Ryecourt Limited and it's trading

subsidiaries, Belsfield Care Limited and T & S Healthcare Limited. Both Ryecourt Limited and Belsfield Care Limited

operate care homes in the north west of England, whilst T & S Healthcare provide healthcare products to the care and

nursing home industry.

Key Performance Indicators:

2018

2017

Change

£

£

%

Turnover

8,854,588

6,469,153

+36%

Group operating profit

1,831,288

1,112,792

+64%

Profit before taxation

1,804,134

1,096,144

+64%

Profit after taxation

1,444,618

868,797

+66%

Shareholders funds

3,497,797

2,680,623

+30%

Turnover increased by 36% during the year. The main reason for this was that 2018 saw a full years trade for Belsfield

Care Limited. The care home that the company operates was only opened during the 2017 year and wasn't fully

operational during this period, with a number of bedrooms not complete and as such, not ready to be filled. T & S

Healthcare Limited also commenced trade during the 2018 but only contributed £72k to the increase in turnover. The

group expects to achieve comparable turnover in the next financial year as no drop in occupancy rates, nor fee rates are

expected.

The group operating profit has seen an increase of 64% on the previous year. As with the increase in turnover, this is

attributable to the full year of trading achieved by Belsfield Care Limited.

Shareholders' funds increased by 30% due to retained earnings.

The average occupancy rate across the 3 care homes operated by the group was 96.18% in 2018 which is comparable

with the rate of 96.40% in 2017. The group homes strive to not only offer a high standard of care, but also the kindest

level of care. Given that the occupancy rate for 2018 was far greater than the average for the North West of 88%, it

shows the focus that management have put in to deliver a high quality service.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors believe that the main risk faced by the group relates to changes in government policy and in particular, the

level of funding for residential care in the future.

ON BEHALF OF THE BOARD:

Mr D Bell - Director

14 February 2019

The directors present their report with the financial statements of the company and the group for the year ended

31 May 2018.

DIVIDENDS

Interim dividends per share were paid during the year as follows:

C Ordinary £1

-

£10000

- 6 April 2018

D Ordinary £1

-

£17500

- 6 April 2018

E Ordinary £1

-

£15000

- 6 April 2018

The total distribution of dividends for the year ended 31 May 2018 will be £ 425,000 .

FUTURE DEVELOPMENTS

The company now has planning permission for a 40 bed nursing home on land owned by the company. The directors

have not yet decided whether to go ahead with the construction.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2017 to the date of this report.

Mr D Bell

Mrs L Symms

Mrs B C Bell

Other changes in directors holding office are as follows:

Mr K Bell Deceased - deceased 11 October 2017

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the

directors are required to:

-	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.

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.

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.

AUDITORS

The auditors, Jones Harris Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr D Bell - Director

14 February 2019

Opinion

We have audited the financial statements of Ryecourt Limited (the 'parent company') and its subsidiaries (the 'group') for

the year ended 31 May 2018 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive

Income, 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 Consolidated Cash Flow Statement,

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).

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 May 2018 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.

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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other matter

The financial statements for the Company for the year ended 31 May 2017 were not audited, however we have obtained

sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the

current period's financial statements.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the

Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinion 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.

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.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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.

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.

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 a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors 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.

Charles Bryning (senior statutory auditor)

for and on behalf of Jones Harris Limited

Statutory Auditors

17 St Peters Place

Fleetwood

Lancashire

FY7 6EB

14 February 2019

TURNOVER

8,854,588

6,469,153

Cost of sales

394,830

245,720

GROSS PROFIT

8,459,758

6,223,433

Administrative expenses

6,713,470

5,193,641

1,746,288

1,029,792

Other operating income

85,000

83,000

OPERATING PROFIT

4

1,831,288

1,112,792

Write off associated loan

5

1,053

-

1,830,235

1,112,792

Interest receivable and similar income

18,366

29,081

1,848,601

1,141,873

Interest payable and similar expenses

6

44,467

45,729

PROFIT BEFORE TAXATION

1,804,134

1,096,144

Tax on profit

7

359,516

227,347

PROFIT FOR THE FINANCIAL YEAR

1,444,618

868,797

FIXED ASSETS

Tangible assets

10

3,610,702

3,679,860

Investments

11

-

-

Investment property

12

363,483

-

3,974,185

3,679,860

CURRENT ASSETS

Stocks

13

10,848

1,671

Debtors

14

913,508

937,158

Cash at bank

1,866,444

587,115

2,790,800

1,525,944

CREDITORS

Amounts falling due within one year

15

3,016,678

2,475,582

NET CURRENT LIABILITIES

(225,878

)

(949,638

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,748,307

2,730,222

CREDITORS

Amounts falling due after more than one year

16

(139,775

)

(153,694

)

PROVISIONS FOR LIABILITIES

20

(110,735

)

(98,449

)

NET ASSETS

3,497,797

2,478,079

CAPITAL AND RESERVES

Called up share capital

21

1,640

1,540

Retained earnings

22

3,496,157

2,476,539

SHAREHOLDERS' FUNDS

3,497,797

2,478,079

The financial statements were approved by the Board of Directors on 14 February 2019 and were signed on its behalf by:

Mr D Bell - Director

FIXED ASSETS

Tangible assets

10

2,072,060

2,101,865

Investments

11

201

1

Investment property

12

363,483

-

2,435,744

2,101,866

CURRENT ASSETS

Stocks

13

1,338

1,213

Debtors

14

2,166,404

2,528,934

Cash at bank

906,739

533,940

3,074,481

3,064,087

CREDITORS

Amounts falling due within one year

15

2,540,487

2,331,636

NET CURRENT ASSETS

533,994

732,451

TOTAL ASSETS LESS CURRENT LIABILITIES

2,969,738

2,834,317

CREDITORS

Amounts falling due after more than one year

16

139,775

153,694

NET ASSETS

2,829,963

2,680,623

CAPITAL AND RESERVES

Called up share capital

21

1,540

1,540

Retained earnings

22

2,828,423

2,679,083

SHAREHOLDERS' FUNDS

2,829,963

2,680,623

Company's profit for the financial year

574,340

835,797

The financial statements were approved by the Board of Directors on 14 February 2019 and were signed on its behalf by:

Mr D Bell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2016

1,540

2,107,742

2,109,282

Changes in equity

Dividends

-

(500,000

)

(500,000

)

Total comprehensive income

-

868,797

868,797

Balance at 31 May 2017

1,540

2,476,539

2,478,079

Changes in equity

Issue of share capital

100

-

100

Dividends

-

(425,000

)

(425,000

)

Total comprehensive income

-

1,444,618

1,444,618

Balance at 31 May 2018

1,640

3,496,157

3,497,797

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2016

1,540

2,343,286

2,344,826

Changes in equity

Dividends

-

(500,000

)

(500,000

)

Total comprehensive income

-

835,797

835,797

Balance at 31 May 2017

1,540

2,679,083

2,680,623

Changes in equity

Dividends

-

(425,000

)

(425,000

)

Total comprehensive income

-

574,340

574,340

Balance at 31 May 2018

1,540

2,828,423

2,829,963

Cash flows from operating activities

Cash generated from operations

1

2,379,323

1,273,627

Interest paid

(44,206

)

(45,729

)

Interest element of hire purchase payments paid

(261

)

-

Tax paid

(168,748

)

(167,210

)

Net cash from operating activities

2,166,108

1,060,688

Cash flows from investing activities

Purchase of tangible fixed assets

(72,853

)

(514,356

)

Purchase of investment property

(363,483

)

-

Interest received

18,366

29,081

Net cash from investing activities

(417,970

)

(485,275

)

Cash flows from financing activities

New loans in year

1,962,000

386,000

Loan repayments in year

(2,020,920

)

(444,920

)

Capital repayments in year

(3,159

)

-

Amount introduced by directors

1,188,897

1,687,265

Amount withdrawn by directors

(1,170,728

)

(1,631,847

)

Share issue

101

(1

)

Equity dividends paid

(425,000

)

(500,000

)

Net cash from financing activities

(468,809

)

(503,503

)

Increase in cash and cash equivalents

1,279,329

71,910

Cash and cash equivalents at beginning of year

2

587,115

515,205

Cash and cash equivalents at end of year

2

1,866,444

587,115

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

(Unaudited)

£

£

Profit before taxation

1,804,134

1,096,144

Depreciation charges

181,422

166,901

Finance costs

44,467

45,729

Finance income

(18,366

)

(29,081

)

2,011,657

1,279,693

Increase in stocks

(9,178

)

(441

)

Decrease/(increase) in trade and other debtors

5,481

(36,429

)

Increase in trade and other creditors

371,363

30,804

Cash generated from operations

2,379,323

1,273,627

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 31 May 2018

31/5/18

1/6/17

£

£

Cash and cash equivalents

1,866,444

587,115

Year ended 31 May 2017

31/5/17

1/6/16

(Unaudited)

£

£

Cash and cash equivalents

587,115

515,205

1.	STATUTORY INFORMATION

Ryecourt Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the General Information page.

The group operates three nursing homes, Rossall Care Home, Westway, Fleetwood, FY7 8JH; Ryecourt Nursing

Home, 264-266 Queens Promenade, Blackpool, FY2 9HD and Belsfield House Care Home with Nursing at 4

Carlin Gate, Blackpool, FY2 9QX.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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.

Turnover

Turnover represents the value of services provided under contracts to the extent that there is a right to

consideration and is recorded at the value of the consideration due. Where a contract has only been partially

completed at the balance sheet date turnover represents the value of the service provided to date based on a

proportion of the total expected consideration at completion. Where payments are received from customers in

advance of services provided, the amounts are recorded as deferred income and included as part of creditors due

within one year.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2.5% on cost

Fixtures and fittings

-

25% on cost and 15% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such

cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is

provided on all tangible assets at rates calculated to write off the cost, less estimated residual value, of each asset

on a systematic basis over its expected useful life. The carrying values of tangible fixed assets are reviewed for

impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in

fair value is recognised 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.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with

an original maturity date of three months or less. For the purpose of the consolidated cash flow statement, cash

and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Short term debtors and creditors with no stated interest rate and receivable or payable within one year are

recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other

operating expenses.