Roche Healthcare Limited - Limited company accounts 18.2
Roche Healthcare Limited - Limited company accounts 18.2
| REGISTERED NUMBER: |
| Strategic Report, Report of the Director and |
| Financial Statements for the Year Ended 31 July 2018 |
| for |
| Roche Healthcare Limited |
| Roche Healthcare Limited (Registered number: 02992723) |
| Contents of the Financial Statements |
| for the Year Ended 31 July 2018 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Director | 4 |
| Report of the Independent Auditors | 7 |
| Income Statement | 10 |
| Other Comprehensive Income | 12 |
| Balance Sheet | 13 |
| Statement of Changes in Equity | 15 |
| Cash Flow Statement | 16 |
| Notes to the Cash Flow Statement | 17 |
| Notes to the Financial Statements | 18 |
| Roche Healthcare Limited |
| Company Information |
| for the Year Ended 31 July 2018 |
| DIRECTOR: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants & Registered Auditors |
| 2nd Floor, Woodside House |
| 261 Low Lane |
| Horsforth |
| Leeds |
| West Yorkshire |
| LS18 5NY |
| SOLICITORS: |
| 29 Upper Parliament Street |
| Nottingham |
| N01 2AQ |
| Roche Healthcare Limited (Registered number: 02992723) |
| Strategic Report |
| for the Year Ended 31 July 2018 |
| The director presents his strategic report for the year ended 31 July 2018. |
| REVIEW OF BUSINESS |
| The director's review is consistent with the size and non-complex nature of the business and is written in the |
| context of the risks and uncertainties faced by the company. |
| The director considers the company's key performance indicators are those that communicate the financial |
| performance and strength of the company as a whole, these being: |
| Turnover |
| Occupancy levels |
| Fee levels within the care homes |
| Staff and agency costs |
| Ratings received on the company's care homes from the Care Quality Commission (CQC). |
| During the year, turnover has decreased from £9.9m in 2017 to £9.5m in 2018. This is due to the closure of |
| Ashcan Nursing Home. Domiciliary sales have increased since the previous year end. |
| The director and senior management team regularly assesses the key performance indicators that they use to |
| run and monitor the business including, where appropriate, non-financial indicators. These include turnover |
| per employee, operating profit per employee, earnings per bed and occupancy rates. All these indicators |
| relate to the provision of care. |
| In the year fee levels have increased at all the nursing homes. The director has made steps to improve |
| occupancy levels by additional advertising and continued updating of the nursing homes. This has resulted in |
| the increased turnover figure seen in this year's financial statements. |
| Payroll costs have decreased this year due to the closure of Ashlands Nursing Home. The director continues |
| to monitor both occupancy levels and payroll costs closely, with particular efforts being made to reduce the |
| levels of agency staff and instead employ and train permanent employees. The company is also looking into |
| further initiatives to improve the ongoing cost savings within the business. |
| In relation to quality ratings assessed by CQC, the director is pleased to report that in the most recent |
| reviews the care homes were generally meeting the required standards, with some improvement required. |
| At the year end there was an overall operating profit of £1,548,140 compared to a profit of £881,760 in 2017 |
| and a profit before tax of £1,467,685 against a 2017 profit of £799,817. |
| Roche Healthcare Limited (Registered number: 02992723) |
| Strategic Report |
| for the Year Ended 31 July 2018 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The main short term trading risks facing the business are as follows: |
| The company is exposed to a number of risks including occupancy rates, pressure on rates of income from |
| local authorities and availability of suitably qualified staff. The principal risks and how we mitigate them are |
| explained below. |
| Competition- the company is aware of the competitive pressure in the UK. The company responds to this |
| pressure by continuously upgrading its nursing homes and providing the best care available to the residents. |
| Interest rate risk-the company is financed by loans that are at a fixed rate above base rate and LIBOR. It |
| therefore is subject to fluctuations in the bank base rate. The company manages this by monitoring and |
| ensuring sufficient liquidity to meet any increases in the bank base rate. |
| Liquidity Risk - Liquidity risk is the risk that the company will not be able to meet its financial obligations |
| as they fall due. The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to |
| meet foreseeable needs via weekly cashflow forecasts, and to invest cash assets safely and profitably. |
| Short-term flexibility is achieved by an overdraft facility. The overall cash balance and net assets have |
| increased from the previous year. |
| BREXIT |
| We have consider the impact on the company of Brexit and we consider it to be minor as all the nursing |
| homes are in the UK. |
| ON BEHALF OF THE BOARD: |
| Roche Healthcare Limited (Registered number: 02992723) |
| Report of the Director |
| for the Year Ended 31 July 2018 |
| The director presents his report with the financial statements of the company for the year ended 31 July 2018. |
| PRINCIPAL ACTIVITIES |
| The principal activities of the company in the year under review were those of nursing homes, domiciliary |
| care, training and property development in the UK. The director is not aware, at the date of this report, of |
| any likely major changes in the company's activities in the next year. |
| DIVIDENDS |
| Interim dividends per share were paid as follows: |
| Ordinary £1 shares | 0.007 | - 31 August 2017 |
| 0.005 | - 30 September 2017 |
| 0.012 | - 31 October 2017 |
| 0.005 | - 30 November 2017 |
| 0.005 | - 31 December 2017 |
| 0.009 | - 31 January 2018 |
| 0.005 | - 28 February 2018 |
| 0.012 | - 31 March 2018 |
| 0.006 | - 30 April 2018 |
| 0.005 | - 31 May 2018 |
| 0.005 | - 30 June 2018 |
| 0.01 | - 31 July 2018 |
| £ |
| Preference £1 shares | £ |
- 31 July 2018 |
| The director recommends that no final dividends be paid. |
| The total distribution of dividends for the year ended 31 July 2018 will be £ |
| FUTURE DEVELOPMENTS |
| The director remains optimistic about future developments and intends to continue to expand the company's |
| operations and profits, whilst maintaining downward pressure on greater efficiencies within the business |
| whilst maintaining a high quality of care. |
| DIRECTOR |
| Roche Healthcare Limited (Registered number: 02992723) |
| Report of the Director |
| for the Year Ended 31 July 2018 |
| EMPLOYEE MATTERS |
| Details of the number of employees and related costs can be found in note 4 to the financial statements on |
| page 21 |
| The company operates an equal opportunities policy. Applications for employment by disabled persons are |
| always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members |
| of staff becoming disabled every effort is made to ensure that their employment with the company continues |
| and that appropriate training is arranged. It is the policy of the company that training, career development |
| and promotion of disabled persons should, as far as possible, be identical with that of other employees. |
| The principles of the company policies are brought to the attention of all staff by means of the Company's |
| Employee Handbook. |
| STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
| The director is responsible for preparing the Strategic Report, the Report of the Director and the financial |
| statements in accordance with applicable law and regulations. |
| Company law requires the director to prepare financial statements for each financial year. Under that law |
| the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair |
| view of the state of affairs of the company and of the profit or loss of the company for that period. In |
| preparing these financial statements, the director is required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | state whether applicable 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 company will continue in business. |
| The director is responsible for keeping adequate accounting records that are sufficient to show and explain |
| the company's transactions and disclose with reasonable accuracy at any time the financial position of the |
| company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is |
| also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the |
| prevention and detection of fraud and other irregularities. |
| As stated in note 2 to the financial statements, Freehold properties are stated at cost, no depreciation being |
| provided thereon. In this respect the accounts do not comply with with the provisions of FRS 102 for |
| Tangible Fixed assets. In all other instances applicable accounting standards have been adhered to in the |
| preparation of these financial statements. |
| Roche Healthcare Limited (Registered number: 02992723) |
| Report of the Director |
| for the Year Ended 31 July 2018 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the |
| Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he |
| ought to have taken as a director in order to make himself aware of any relevant audit information and to |
| establish that the company's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Roche Healthcare Limited |
| Opinion |
| We have audited the financial statements of Roche Healthcare Limited (the 'company') for the year ended |
| 31 July 2018 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, |
| Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 July 2018 and of its 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 |
| company in accordance with the ethical requirements that are relevant to our audit of the financial statements |
| in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in |
| accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and |
| appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
| - | the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company'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 information |
| The director is responsible for the other information. The other information comprises the information in the |
| Strategic Report and the Report of the Director, 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. |
| Report of the Independent Auditors to the Members of |
| Roche Healthcare Limited |
| 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course |
| of the audit, we have not identified material misstatements in the Strategic Report or the Report of the |
| Director. |
| 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, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of director's remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of director |
| As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is |
| 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 director determines 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 director is responsible for assessing the company's ability to |
| continue as a going concern, disclosing, as applicable, matters related to going concern and using the going |
| concern basis of accounting unless the director either intends to liquidate the company or to cease |
| operations, or has 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. |
| Report of the Independent Auditors to the Members of |
| Roche Healthcare Limited |
| 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. |
| for and on behalf of |
| Chartered Accountants & Registered Auditors |
| 2nd Floor, Woodside House |
| 261 Low Lane |
| Horsforth |
| Leeds |
| West Yorkshire |
| LS18 5NY |
| Roche Healthcare Limited (Registered number: 02992723) |
| Income Statement |
| for the Year Ended 31 July 2018 |
| 31.7.18 | 31.7.18 | 31.7.18 |
| Continuing | Discontinued | Total |
| Notes | £ | £ | £ |
| TURNOVER | 3 |
| Cost of sales | ( |
) | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) | ( |
) |
| 1,070,377 | 454,326 | 1,524,703 |
| Other operating income |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| Interest payable and similar expenses | 8 | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 9 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| Roche Healthcare Limited (Registered number: 02992723) |
| Income Statement |
| for the Year Ended 31 July 2018 |
| 31.7.17 | 31.7.17 | 31.7.17 |
| Continuing | Discontinued | Total |
| Notes | £ | £ | £ |
| TURNOVER | 3 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| 857,130 | - | 857,130 |
| Other operating income |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| Interest payable and similar expenses | 8 | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 9 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| Roche Healthcare Limited (Registered number: 02992723) |
| Other Comprehensive Income |
| for the Year Ended 31 July 2018 |
| 31.7.18 | 31.7.17 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME |
| Revaluation of freehold property | ( |
) |
| Income tax relating to other comprehensive income |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| Roche Healthcare Limited (Registered number: 02992723) |
| Balance Sheet |
| 31 July 2018 |
| 31.7.18 | 31.7.17 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 |
| Investment properties | 13 |
| CURRENT ASSETS |
| Stocks | 14 |
| Debtors: amounts falling due within one year |
15 |
| Debtors: amounts falling due after more than one year |
15 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 16 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
| NET ASSETS |
| Roche Healthcare Limited (Registered number: 02992723) |
| Balance Sheet - continued |
| 31 July 2018 |
| 31.7.18 | 31.7.17 |
| Notes | £ | £ | £ | £ |
| CAPITAL AND RESERVES |
| Called up share capital | 22 |
| Non-distributable reserve | 23 |
| Retained earnings | 23 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the director on |
| Roche Healthcare Limited (Registered number: 02992723) |
| Statement of Changes in Equity |
| for the Year Ended 31 July 2018 |
| Called up |
| share | Retained | Non-distributable | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 August 2016 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31 July 2017 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - | ( |
) |
| Balance at 31 July 2018 |
| Roche Healthcare Limited (Registered number: 02992723) |
| Cash Flow Statement |
| for the Year Ended 31 July 2018 |
| 31.7.18 | 31.7.17 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities | ( |
) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of intangible fixed assets |
| Sale of tangible fixed assets |
| Sale of investment property |
| Interest received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| Loan repayments in year | ( |
) | ( |
) |
| New hire purchase in year | 92,425 | 16,598 |
| Capital repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 87,659 | 120,976 |
| Amount withdrawn by directors | (95,594 | ) | (118,447 | ) |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Increase in cash and cash equivalents |
| Cash and cash equivalents at beginning of year |
2 |
254,172 |
| Cash and cash equivalents at end of year |
2 |
3,123,070 |
317,972 |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Cash Flow Statement |
| for the Year Ended 31 July 2018 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| (Profit)/loss on disposal of fixed assets | ( |
) |
| Gain on revaluation of fixed assets | (412,510 | ) | - |
| Finance costs | 81,023 | 82,543 |
| Finance income | (568 | ) | (600 | ) |
| 639,335 | 1,320,410 |
| Increase in stocks | ( |
) | ( |
) |
| (Increase)/decrease in trade and other debtors | ( |
) |
| Increase/(decrease) in trade and other creditors | ( |
) |
| Cash generated from operations |
| 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 July 2018 |
| 31.7.18 | 1.8.17 |
| £ | £ |
| Cash and cash equivalents | 3,123,070 | 317,972 |
| Year ended 31 July 2017 |
| 31.7.17 | 1.8.16 |
| £ | £ |
| Cash and cash equivalents | 317,972 | 254,361 |
| Bank overdrafts | ( |
) |
| 317,972 | 254,172 |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements |
| for the Year Ended 31 July 2018 |
| 1. | STATUTORY INFORMATION |
| Roche Healthcare Limited is a |
| The company's registered number and registered office address can be found on the Company |
| Information page. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements have been prepared in accordance with applicable accounting standards |
| except for freehold properties where no depreciation was provided in respect of these assets. |
| The director has chosen not to depreciate freehold properties in order to ensure that the financial |
| statements present a true and fair view. The company constantly (due to CQC regulations) maintains |
| the properties in order to maintain their useful economic life and value. As a result, freehold |
| properties have not been depreciated in accordance with FRS 102. The director deems that this is |
| wholly appropriate to the industry in which they operate. |
| In carrying out his duties in respect of going concern, the director has carried out a review of the |
| company's financial position and cash flow forecast for a period of 12 months from the date of signing |
| these financial statements. These have been based on comprehensive review revenue, expenditure and |
| cash flows, taking into account specific business risks and the uncertainties brought about by the |
| current economic environment. The company currently meets its day-to-day working capital |
| requirements through its cash balance, which is sufficient to cover working capital requirements. |
| Having taken all the above factors into consideration, the director has reached a conclusion that the |
| company is able to manage its business risk despite the current challenging nature within this sector. |
| Thus, he continues to adopt the going concern basis of accounting in preparing the annual financial |
| statements. |
| Critical accounting judgements and key sources of estimation uncertainty |
| In the application of the company's accounting policies, which are described in note 2, the director is |
| required to make judgements, estimates and assumptions about the carrying amounts 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. |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover comprises the value of sales (excluding any taxes and trade discounts) of goods and services |
| provided in the normal course of business. Revenue is recognised when the service is provided. |
| In respect of long-term contracts for on-going services, turnover represents the value of work done in |
| the year, including calculated estimates of work not invoiced. |
| In the case of development property held for resale, turnover reflects the activity during the year |
| where completion has taken place. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are |
| measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| The director has chosen not to depreciate freehold properties in order to ensure that the financial |
| statements present a true and fair view. The company constantly (due to CQC regulations) maintains |
| the properties in order to maintain their useful economic life and value. As a result, freehold |
| properties have not been depreciated in accordance with FRS 102. The director deems this is wholly |
| appropriate to the industry in which they operate. |
| Investment properties |
| No depreciation is provided for in respect of investment properties in accordance with FRS 102. Such |
| properties are held for their investment potential and not for consumption within the business. This is |
| a departure from Companies Act 2006 which requires that all properties be depreciated and the |
| director consider that to depreciate them would not enable the financial statements to give a true and |
| fair view. Investment properties are stated at their market value at the balance sheet date. |
| Stocks |
| Stock and work in progress are valued at the lower of cost and net realisable value, after making due |
| allowance for obsolete and slow moving items. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, |
| except to the extent that it relates to items recognised in other comprehensive income or directly in |
| equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
| enacted or substantively enacted by the balance sheet date. |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax and current tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
| the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
| different from those in which they are recognised in financial statements. Deferred tax is measured |
| using tax rates and laws that have been enacted or substantively enacted by the year end and that are |
| expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
| that they will be recovered against the reversal of deferred tax liabilities or other future taxable |
| profits. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. |
| Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held |
| under finance leases are depreciated over their estimated useful lives or the lease term, whichever is |
| the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The |
| capital element of the future payments is treated as a liability. |
| Operating lease rental income is credited to the profit and loss account on a rents receivable basis. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the |
| company's pension schemes are charged to the profit or loss in the period to which they relate. |
| Financial instruments |
| Financial instruments are classified and accounted for, according to the substance of the contractual |
| arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument |
| is any contract that evidences a residual interest in the assets of the company after deducting all of its |
| liabilities. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the principal activities of the company. |
| An analysis of turnover by class of business is given below: |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 3. | TURNOVER - continued |
| An analysis of turnover by geographical market is given below: |
| 31.7.18 | 31.7.17 |
| £ | £ |
| United Kingdom |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 31.7.18 | 31.7.17 |
| Administration | 28 | 28 |
| Nursing homes | 394 | 388 |
| Social security costs incurred on direct wages are included in the wages and salaries figure. |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Director's remuneration |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| (Profit)/loss on disposal of fixed assets | ( |
) |
| Goodwill amortisation |
| 6. | AUDITORS' REMUNERATION |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Fees payable to the company's auditors for the audit of the company's financial statements |
19,648 |
19,241 |
| Audit remuneration - £13,591 |
| Taxation compliance services - £2,000 |
| 7. | EXCEPTIONAL ITEMS |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Exceptional items | - | (63,098 | ) |
| Exceptional items relate to the closure of Ashlands nursing home. |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Loan interest |
| Corporation tax interest |
| Hire purchase charges |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) | ( |
) |
| Tax on profit |
| UK corporation tax has been charged at 19% (2017 - 19.66%). |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The |
| difference is explained below: |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Depreciation in excess of capital allowances | - |
| Expenses not deductible for tax purposes | 8,965 | 9,755 |
| Deferred tax | (145,570 | ) | (36,596 | ) |
| Exceptional item | - | 12,405 |
| Capital gains covered by capital loss | (131,109 | ) | - |
| Total tax charge | 11,146 | 174,077 |
| Tax effects relating to effects of other comprehensive income |
| 31.7.18 |
| Gross | Tax | Net |
| £ | £ | £ |
| Revaluation of freehold property | ( |
) | - | (412,510 | ) |
| 31.7.17 |
| Gross | Tax | Net |
| £ | £ | £ |
| Revaluation of freehold properties |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 10. | DIVIDENDS |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| Preference shares of £1 each |
| Interim |
| 11. | INTANGIBLE FIXED ASSETS |
| Goodwill |
| £ |
| COST |
| At 1 August 2017 |
| Disposals | ( |
) |
| At 31 July 2018 |
| AMORTISATION |
| At 1 August 2017 |
| Amortisation for year |
| Eliminated on disposal | ( |
) |
| At 31 July 2018 |
| NET BOOK VALUE |
| At 31 July 2018 |
| At 31 July 2017 |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 12. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Freehold | and | Motor | Computer |
| property | fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 August 2017 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
| At 31 July 2018 |
| DEPRECIATION |
| At 1 August 2017 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
| At 31 July 2018 |
| NET BOOK VALUE |
| At 31 July 2018 |
| At 31 July 2017 |
| Cost or valuation at 31 July 2018 is represented by: |
| Fixtures |
| Freehold | and | Motor | Computer |
| property | fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| Valuation in 2018 | 3,402,170 | - | - | - | 3,402,170 |
| Cost | 5,959,260 | 4,953,045 | 179,822 | 165,597 | 11,257,724 |
| 9,361,430 | 4,953,045 | 179,822 | 165,597 | 14,659,894 |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Motor |
| vehicles |
| £ |
| COST OR VALUATION |
| At 1 August 2017 |
| Additions |
| Transfer to ownership | (30,000 | ) |
| At 31 July 2018 |
| DEPRECIATION |
| At 1 August 2017 |
| Charge for year |
| Transfer to ownership | (16,953 | ) |
| At 31 July 2018 |
| NET BOOK VALUE |
| At 31 July 2018 |
| At 31 July 2017 |
| 13. | INVESTMENT PROPERTIES |
| Total |
| £ |
| COST |
| At 1 August 2017 |
| Disposals | ( |
) |
| At 31 July 2018 |
| NET BOOK VALUE |
| At 31 July 2018 |
| At 31 July 2017 |
| 14. | STOCKS |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Stocks |
| Work-in-progress |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 15. | DEBTORS |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Amounts falling due within one year: |
| Debtors |
| Other Debtors |
| Directors' loan accounts | 4,541 | - |
| Prepayments and accrued income |
| Amounts falling due after more than one year: |
| Other Debtors |
| Aggregate amounts |
| There is a third party guarantee by Emerald Care Services Limited for the inter company loan dated 7 |
| December 2011 of £1,185,000 between Roche Healthcare Limited and Emerald Care Holdings |
| Yorkshire Limited. |
| 16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Bank loans and overdrafts (see note 18) |
| Hire purchase contracts (see note 19) |
| Creditors |
| Tax |
| Social security and other taxes |
| VAT | - | 2,483 |
| Other creditors |
| Spending money | 54,682 | 57,294 |
| Directors' loan accounts | - | 3,394 |
| Accruals and deferred income |
| 17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Bank loans (see note 18) |
| Hire purchase contracts (see note 19) |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 18. | LOANS |
| An analysis of the maturity of loans is given below: |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more 5 years | 2,052,625 | 1,430,789 |
| Bank loans are repayable between 5 and 15 years and interest is variable but is at a fixed rate above |
| the bank base rate and LIBOR. |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 19. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase |
| contracts |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Gross obligations repayable: |
| Within one year |
| Between one and five years |
| Finance charges repayable: |
| Within one year |
| Between one and five years |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable |
| operating leases |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Within one year |
| Between one and five years |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 20. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Bank loans |
| Hire purchase contracts | 71,562 | 14,662 |
| The bank hold Legal Mortgages over the following properties of the company: |
| Fieldhead Court |
| Fieldhead Park |
| Tudor House |
| Hartshead Manor |
| Mansion House |
| The bank also have ICGT and standard bank debenture dated 14 December 2011. |
| The bank loan taken on 7 December 2011 is secured via a guarantee over a debenture and the property |
| assets of Emerald Care Services Limited. |
| The bank hold an intercreditor agreement dated 28 March 2014 between Roche Healthcare Limited |
| and Emerald Care Holdings Yorkshire Limited by which all liabilities of Emerald Care Holdings |
| Yorkshire Limited to Roche Healthcare Limited are subordinated to the bank's liabilities. |
| 21. | PROVISIONS FOR LIABILITIES |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Deferred tax | 608,999 | 754,569 |
| Deferred |
| tax |
| £ |
| Balance at 1 August 2017 |
| Movement in the year | (145,570 | ) |
| Balance at 31 July 2018 |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 22. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.7.18 | 31.7.17 |
| value: | £ | £ |
| Ordinary | £1 | 2,919,101 | 2,919,101 |
| Preference | £1 | 200,000 | 200,000 |
| 3,119,101 | 3,119,101 |
| 23. | RESERVES |
| Retained | Non-distributable |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 August 2017 | 6,325,360 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| Revaluation reserve | - | (412,510 | ) | (412,510 | ) |
| At 31 July 2018 | 7,107,589 |
| 24. | PENSION COMMITMENTS |
| The assets of the pension scheme are held separately from those of the company in an independently |
| administered fund. The pension cost represents contributions payable to the fund and amounted to |
| £114,546 (2017- £95,946) |
| 25. | CONTINGENT LIABILITIES |
| The company holds a number of interest rate derivatives which mature at various dates over the next |
| 15 years. These have been included in the financial statements at their fair value. |
| 26. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 31 July 2018 and |
| 31 July 2017: |
| 31.7.18 | 31.7.17 |
| £ | £ |
| Balance outstanding at start of year | ( |
) | ( |
) |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | ( |
) |
| Roche Healthcare Limited (Registered number: 02992723) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 July 2018 |
| 27. | RELATED PARTY DISCLOSURES |
| The ultimate controlling party is Mr P Roche by virtue of his shareholding. |