ST MAGNUS HOUSE LIMITED - Limited company accounts 18.2

REGISTERED NUMBER: 06495501 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2018

for

ST MAGNUS HOUSE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

R J F WHITE

J M RANDALL

P JEFFREY

REGISTERED OFFICE:

ROSEMARY PARK NURSING HOME

MARLEY COMMON

MARLEY LANE

HASLEMERE

Surrey

GU27 3PX

REGISTERED NUMBER:

06495501 (England and Wales)

AUDITORS:

AUDIT NETWORK LIMITED

Chartered Accountants & Statutory Auditors

23 Mountside

Stanmore

Middlesex

HA7 2DS

The directors present their strategic report for the year ended 31 December 2018.

REVIEW OF BUSINESS

The directors consider that the results for the year and the financial position at the end of the year to be satisfactory.

The company had a slight drop in occupancy levels resulting in a drop in fee income. That, as well as unavoidable staff costs

increases had an adverse effect on profitability.

The company expects the occupancy levels to pick up and staff costs to be kept under control in the coming year. This should

return the company to profitability.

PRINCIPAL RISKS AND UNCERTAINTIES

Majority of the times the company enjoys a healthy waiting list for beds that become vacant but maintaining that in the face of

competition in the market place and reducing the lead time is always challenging.

Increasing staff costs and the resistance from health and local authorities to increases in bed fees are the principal risks facing the

company.

BUSINESS PERFORMANCE

The directors consider that the key financial performance indicators that communicate the financial performance and strength of

the company as a whole are turnover, staff costs, profit before tax, total shareholders' funds and net cash inflow. These were as

follows:

- Turnover £7,142,905 (2017: £7,949,373)

- Staff costs £5,437,553 (2017: £4,953,233)

- (Loss)/Profit before tax (£321,230) (2017: £977,837)

- Total shareholders' funds £3,467,224 (2017: £3,787,192)

- Net cash (outflow)/inflow £(1,431,182) (2017: £1,562,179)

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are

for the most part conducted in sterling.

ON BEHALF OF THE BOARD:

J M RANDALL - Director

23 August 2019

The directors present their report with the financial statements of the company for the year ended 31 December 2018.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this report.

R J F WHITE

J M RANDALL

P JEFFREY

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 of the profit or loss of the

company 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

transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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 company's auditors are aware

of that information.

AUDITORS

The auditors, AUDIT NETWORK LIMITED, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J M RANDALL - Director

23 August 2019

Opinion

We have audited the financial statements of ST MAGNUS HOUSE LIMITED (the 'company') for the year ended

31 December 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 December 2018 and of its loss 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 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 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 directors are responsible for the other information. The other information comprises the information in the 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.

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 Directors 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 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 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 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, 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 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 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 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.

KIAN DADFARMA (Senior Statutory Auditor)

for and on behalf of AUDIT NETWORK LIMITED

Chartered Accountants & Statutory Auditors

23 Mountside

Stanmore

Middlesex

HA7 2DS

23 August 2019

TURNOVER

7,142,905

7,947,373

Cost of sales

3,770,686

3,454,058

GROSS PROFIT

3,372,219

4,493,315

Administrative expenses

3,782,223

3,541,557

(410,004

)

951,758

Other operating income

48,874

26,770

OPERATING (LOSS)/PROFIT

4

(361,130

)

978,528

Interest receivable and similar income

42,348

77

(318,782

)

978,605

Interest payable and similar expenses

5

2,448

768

(LOSS)/PROFIT BEFORE TAXATION

(321,230

)

977,837

Tax on (loss)/profit

6

(1,262

)

187,770

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(319,968

)

790,067

(LOSS)/PROFIT FOR THE YEAR

(319,968

)

790,067

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(319,968

)

790,067

FIXED ASSETS

Tangible assets

7

522,556

571,137

CURRENT ASSETS

Debtors

8

3,775,535

1,178,735

Cash at bank and in hand

2,735,896

4,167,078

6,511,431

5,345,813

CREDITORS

Amounts falling due within one year

9

3,546,383

2,108,116

NET CURRENT ASSETS

2,965,048

3,237,697

TOTAL ASSETS LESS CURRENT LIABILITIES

3,487,604

3,808,834

PROVISIONS FOR LIABILITIES

10

20,380

21,642

NET ASSETS

3,467,224

3,787,192

CAPITAL AND RESERVES

Called up share capital

11

1,000,000

1,000,000

Retained earnings

12

2,467,224

2,787,192

SHAREHOLDERS' FUNDS

3,467,224

3,787,192

The financial statements were approved by the Board of Directors on 23 August 2019 and were signed on its behalf by:

J M RANDALL - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2017

1,000,000

1,997,125

2,997,125

Changes in equity

Total comprehensive income

-

790,067

790,067

Balance at 31 December 2017

1,000,000

2,787,192

3,787,192

Changes in equity

Total comprehensive income

-

(319,968

)

(319,968

)

Balance at 31 December 2018

1,000,000

2,467,224

3,467,224

Cash flows from operating activities

Cash generated from operations

1

777,818

1,699,236

Interest paid

(2,448

)

(768

)

Tax paid

(238,820

)

(99,232

)

Net cash from operating activities

536,550

1,599,236

Cash flows from investing activities

Purchase of tangible fixed assets

(10,080

)

(37,134

)

Interest received

42,348

77

Net cash from investing activities

32,268

(37,057

)

Cash flows from financing activities

Amount withdrawn by directors

(2,000,000

)

-

Net cash from financing activities

(2,000,000

)

-

(Decrease)/increase in cash and cash equivalents

(1,431,182

)

1,562,179

Cash and cash equivalents at beginning of year

2

4,167,078

2,604,899

Cash and cash equivalents at end of year

2

2,735,896

4,167,078

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.18

31.12.17

£

£

(Loss)/profit before taxation

(321,230

)

977,837

Depreciation charges

58,661

67,960

Finance costs

2,448

768

Finance income

(42,348

)

(77

)

(302,469

)

1,046,488

Decrease/(increase) in trade and other debtors

53,200

(525,299

)

Increase in trade and other creditors

1,027,087

1,178,047

Cash generated from operations

777,818

1,699,236

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 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

2,735,896

4,167,078

Year ended 31 December 2017

31.12.17

1.1.17

£

£

Cash and cash equivalents

4,167,078

2,604,899

1.	STATUTORY INFORMATION

ST MAGNUS HOUSE 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.

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 is measured at the fair value of the consideration received or receivable, excluding discounts and rebates. Care

fees are recognised in the period in which they are utilised.

Tangible fixed assets

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

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

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.

Deferred 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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme

are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

31.12.18

31.12.17

£

£

Wages and salaries

4,930,274

4,516,709

Social security costs

463,006

414,161

Other pension costs

44,273

22,363

5,437,553

4,953,233

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

31.12.18

31.12.17

Administration

7

6

Nursing

121

116

128

122

31.12.18

31.12.17

£

£

Directors' remuneration

-

-

4.	OPERATING (LOSS)/PROFIT

The operating loss (2017 - operating profit) is stated after charging:

31.12.18

31.12.17

£

£

Depreciation - owned assets

58,661

67,960

Auditors remuneration

3,600

3,600

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.18

31.12.17

£

£

Other interest

2,448

768

6.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

31.12.18

31.12.17

£

£

Current tax:

UK corporation tax

-

184,519

Deferred tax:

Accelerated capital allowances

(1,262

)

3,251

Tax on (loss)/profit

(1,262

)

187,770

7.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Motor

property

fittings

vehicles

Totals

£

£

£

£

COST

At 1 January 2018

202,494

764,959

44,879

1,012,332

Additions

-

10,080

-

10,080

At 31 December 2018

202,494

775,039

44,879

1,022,412

DEPRECIATION

At 1 January 2018

-

414,845

26,350

441,195

Charge for year

-

54,029

4,632

58,661

At 31 December 2018

-

468,874

30,982

499,856

NET BOOK VALUE

At 31 December 2018

202,494

306,165

13,897

522,556

At 31 December 2017

202,494

350,114

18,529

571,137

Included in cost of land and buildings is freehold land of £ 202,494 (2017 - £ 202,494 ) which is not depreciated.

8.

DEBTORS

31.12.18

31.12.17

£

£

Amounts falling due within one year:

Trade debtors

1,059,042

1,151,195

Other debtors

56,918

-

Directors' loan accounts

2,000,000

-

Prepayments

9,575

27,540

3,125,535

1,178,735

Amounts falling due after more than one year:

Tax

650,000

-

Aggregate amounts

3,775,535

1,178,735

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Trade creditors

688,492

506,901

Amounts owed to group undertakings

1,981,841

1,165,360

Tax

652,432

241,252

Social security and other taxes

112,965

111,470

Pension contributions

8,353

-

Accrued expenses

102,300

83,133

3,546,383

2,108,116

10.	PROVISIONS FOR LIABILITIES

31.12.18

31.12.17

£

£

Deferred tax

20,380

21,642

Deferred

tax

£

Balance at 1 January 2018

21,642

Accelerated capital allowances

(1,262

)

Balance at 31 December 2018

20,380

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.18

31.12.17

value:

£

£

1,000,000

Ordinary

£1

1,000,000

1,000,000

12.

RESERVES

Retained

earnings

£

At 1 January 2018

2,787,192

Deficit for the year

(319,968

)

At 31 December 2018

2,467,224

13.	ULTIMATE PARENT COMPANY

Oldercare (Haslemere) Limited is regarded by the directors as being the company's ultimate parent company.

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2018 and

31 December 2017:

31.12.18

31.12.17

£

£

R J F WHITE

Balance outstanding at start of year

-

-

Amounts advanced

2,000,000

-

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

2,000,000

-

Loan to R White is secured on a property and repayable on demand. The rate of interest is 2.5% per annum.