Moorcourt Developments Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02535848 (England and Wales)

Strategic Report,

Report of the Director and

Financial Statements

for the Year Ended 30 November 2018

for

Moorcourt Developments Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Statement of Financial Position

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTOR:

S Rai

SECRETARIES:

D Kaplan

Mrs K A Noon

Ms S L Wilkinson

REGISTERED OFFICE:

3rd Floor

Butt Dyke House

33 Park Row

Nottingham

NG1 6EE

BUSINESS ADDRESS:

Epinal Way Care Centre

Hospital Way

Loughborough

Leicestershire

LE11 3GD

REGISTERED NUMBER:

02535848 (England and Wales)

AUDITORS:

HSKS Greenhalgh

Chartered Accountants &

Statutory Auditor

3rd Floor

Butt Dyke House

33 Park Row

Nottingham

NG1 6EE

BANKERS:

Lloyds Bank plc

25 Gresham Street

London

EC2V 7HN

The director presents his strategic report for the year ended 30 November 2018.

REVIEW OF BUSINESS

For the year ended 30 November 2018, turnover increased compared to 2017, however wages costs also

increased resulting in a gross profit of 45.8% (2017: 46.6%)

PRINCIPAL RISKS AND UNCERTAINTIES

The market for the provision of care remains highly competitive, but occupancy levels for the company have

been maintained well over industry norms reaching an average of 92%. The director believes that there are

no indications of overall bed occupancy decreasing and sees the care home market remaining profitable with

the demographic trend leading to a growing number of people living to an old age.

The company has continued to provide a range of care services to the residents enabling it to ensure that

services can be provided to meet demand where it arises. This helps to minimise the business risk of the

company.

DEVELOPMENT AND PERFORMANCE OF THE COMPANY

The company continues to have a policy of continual training for its staff and to encourage employee

participation in its development of care homes.

FINANCIAL KEY PERFORMANCE INDICATORS

The company introduced an internal reporting package which allows it to perform a detailed analysis of the

monthly results.

This helps with the monitoring of wages, occupancy and EBITDA generation as previously but also allows for

an emphasis to be put on cash generation.

From an operational viewpoint the KPI's have helped identify issues as soon as they arise and the company

can address pricing early if it becomes an issue.

NON FINANCIAL KEY PERFORMANCE INDICATORS

The company closely monitors its performance against CQC guidelines. Internal reviews are carried out

against key criteria to ensure that homes are meeting the necessary standards for when inspections take

place.

ON BEHALF OF THE BOARD:

Director

29 August 2019

The director presents his report with the financial statements of the company for the year ended 30 November 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a care home for adults with learning

disabilities.

DIVIDENDS

No dividends will be distributed for the year ended 30 November 2018.

DIRECTOR

S Rai held office during the whole of the period from 1 December 2017 to the date of this report.

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), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland'. 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;

-	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.

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:

S Rai - Director

29 August 2019

Opinion

We have audited the financial statements of Moorcourt Developments Limited (the 'company') for the year

ended 30 November 2018 which comprise the Income Statement, Other Comprehensive Income, Statement

of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a

summary of significant accounting policies. The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United

Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 November 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the 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 three, 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.

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.

Philip Handley FCA (Senior Statutory Auditor)

for and on behalf of HSKS Greenhalgh

Chartered Accountants &

Statutory Auditor

3rd Floor

Butt Dyke House

33 Park Row

Nottingham

NG1 6EE

30 August 2019

TURNOVER

3

3,274,505

3,186,528

Cost of sales

(1,774,905

)

(1,701,471

)

GROSS PROFIT

1,499,600

1,485,057

Administrative expenses

(562,356

)

(616,831

)

OPERATING PROFIT

5

937,244

868,226

Interest receivable and similar income

632

-

937,876

868,226

Interest payable and similar expenses

6

-

(330

)

PROFIT BEFORE TAXATION

937,876

867,896

Tax on profit

7

(189,675

)

(177,474

)

PROFIT FOR THE FINANCIAL YEAR

748,201

690,422

PROFIT FOR THE YEAR

748,201

690,422

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

748,201

690,422

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

2,354,267

2,389,778

2,354,267

2,389,778

CURRENT ASSETS

Stocks

10

913

900

Debtors

11

3,883,424

2,928,020

Cash at bank and in hand

249,143

308,381

4,133,480

3,237,301

CREDITORS

Amounts falling due within one year

12

686,437

573,970

NET CURRENT ASSETS

3,447,043

2,663,331

TOTAL ASSETS LESS CURRENT LIABILITIES

5,801,310

5,053,109

CAPITAL AND RESERVES

Called up share capital

14

200,000

200,000

Revaluation reserve

15

219,035

224,928

Retained earnings

15

5,382,275

4,628,181

SHAREHOLDERS' FUNDS

5,801,310

5,053,109

The financial statements were approved by the director on 29 August 2019 and were signed by:

S Rai - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 December 2016

200,000

3,931,866

230,821

4,362,687

Changes in equity

Total comprehensive income

-

696,315

(5,893

)

690,422

Balance at 30 November 2017

200,000

4,628,181

224,928

5,053,109

Changes in equity

Total comprehensive income

-

754,094

(5,893

)

748,201

Balance at 30 November 2018

200,000

5,382,275

219,035

5,801,310

1.	STATUTORY INFORMATION

Moorcourt Developments 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 Company

Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small

Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK

and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared

under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and

Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

The parent of the group which prepares consolidated accounts is Rushcliffe Care Holdings Limited.

Turnover

Turnover represents residential care services provided in the year, recognised according to the period

of care provided.

Goodwill

In prior years purchased goodwill has been amortised over 5 years, being the estimated useful life of

the asset, in accordance with FRS 10. With effect from the year ended 30 November 2008, the director

believed that purchased goodwill had an estimated useful life of 10 years and the amortisation rate was

amended accordingly.

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

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold land and buildings

-

2% on cost

Improvements to property

-

2% on reducing balance

Fixtures, fittings and equipment

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Tangible fixed assets are measured at cost or valuation less accumulated depreciation.

Stocks

Stocks 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the statement of financial position 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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the

period of the lease.

Pension costs and other post-retirement benefits

The company operated a defined contribution pension scheme. Contributions payable for the period

were charged to the profit and loss account.

Going concern

At the year end the company had net current liabilities of £203,078 (2017: £116,606) after taking into

consideration the amounts due from group undertakings. The parent company Rushcliffe Care Limited

has confirmed that it will provide the company with adequate cash resources to finance its trading and

other obligations during the course of the twelve months from the date of approval of the financial

statements. It is on this basis that the director considers it appropriate to prepare the financial

statements on a going concern basis.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2018

2017

£

£

Services provided

3,274,505

3,186,528

3,274,505

3,186,528

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

1,540,049

1,488,839

Social security costs

100,570

88,427

Other pension costs

12,114

5,367

1,652,733

1,582,633

The average number of employees during the year was as follows:

2018

2017

Directors

1

1

Care and administrative staff

87

90

88

91

2018

2017

£

£

Director's remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Hire of plant and machinery

2,254

7,231

Depreciation - owned assets

70,110

70,251

Auditors' remuneration

6,187

6,187

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Other interest payable

-

330

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

189,675

177,474

Tax on profit

189,675

177,474

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 December 2017

and 30 November 2018

191,769

AMORTISATION

At 1 December 2017

and 30 November 2018

191,769

NET BOOK VALUE

At 30 November 2018

-

At 30 November 2017

-

9.	TANGIBLE FIXED ASSETS

Fixtures,

Freehold

Improvements

fittings

land and

to

and

buildings

property

equipment

£

£

£

COST OR VALUATION

At 1 December 2017

2,633,051

365,034

165,121

Additions

-

26,880

6,232

At 30 November 2018

2,633,051

391,914

171,353

DEPRECIATION

At 1 December 2017

609,689

56,923

107,503

Charge for year

52,656

7,239

9,994

At 30 November 2018

662,345

64,162

117,497

NET BOOK VALUE

At 30 November 2018

1,970,706

327,752

53,856

At 30 November 2017

2,023,362

308,111

57,618

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST OR VALUATION

At 1 December 2017

9,165

5,834

3,178,205

Additions

-

1,487

34,599

At 30 November 2018

9,165

7,321

3,212,804

DEPRECIATION

At 1 December 2017

8,478

5,834

788,427

Charge for year

168

53

70,110

At 30 November 2018

8,646

5,887

858,537

NET BOOK VALUE

At 30 November 2018

519

1,434

2,354,267

At 30 November 2017

687

-

2,389,778

Included within freehold land and buildings is fixed plant inherent in the property with a net book value

of £312,188 (2017: £320,401). This was identified by a specific survey and valued by John Hinson, a

quantity surveyor, during the year ended 31 January 2007.

Tangible fixed assets with a carrying value of £1,970,706 (2017: £2,023,362) are pledged as security

for the group's borrowing facilities.

10.

STOCKS

2018

2017

£

£

Foodstuffs

913

900

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

195,157

89,492

Amounts owed by group undertakings

3,650,121

2,779,937

Other debtors

370

1,073

Prepayments and accrued income

37,776

57,518

3,883,424

2,928,020

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

27,148

22,663

Tax

144,789

124,900

Social security and other taxes

44,535

19,120

Other creditors

426,760

257,168

Accruals and deferred income

43,205

150,119

686,437

573,970