Mediline Home Care Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04607372 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 March 2019

for

Mediline Home Care Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

P C Cook

Mrs S D Cook

M W Baines

SECRETARY:

Mrs S D Cook

REGISTERED OFFICE:

3rd Floor

Butt Dyke House

33 Park Row

Nottingham

NG1 6EE

REGISTERED NUMBER:

04607372 (England and Wales)

AUDITORS:

HSKS Greenhalgh

Chartered Accountants &

Statutory Auditor

3rd Floor

Butt Dyke House

33 Park Row

Nottingham

NG1 6EE

The directors present their strategic report for the year ended 31 March 2019.

REVIEW OF BUSINESS

During the year under review, the groups operating companies delivering the following indicated principal

activities:

Mediline Group Services Ltd

- Provision of registered care homes and supported living properties within the community for rental,

commercial offices and a training centre

- Provision of central support to the group companies by way of providing board strategy, the provision of a

centralised human resource facility, finance, banking and payroll in addition to the preparation of management

accounts

Mediline Home Care Ltd

- Generic domiciliary home care provided primarily to the elderly within their own homes funded by local

authorities and private individuals responsible for their own self funding

- 24 Hour live in care & support provided within peoples own homes funded by local authorities and private

individuals

- Continuing health care provided to people with significant health needs within their own homes funded by

the NHS

Mediline Supported Living Ltd

- Supported living for people with learning disabilities in both extra care and supported living settings in

addition to peoples own properties.

- Management of registered care homes to support people with learning disabilities

- Outreach and day support services

- Providing access to supported employment

North West Community Services Training Ltd

- Apprenticeships

- Traineeships

- Further Education leading to stand alone qualifications

- Private Training

The health and social care sector continued to remain challenging for the year under review resultant from the

constraints to annualised fee increases imposed by local authorities and clinical commissioning groups.

The issue of funding and provision of health & social care needs to be addressed nationally and is under

review through the governments long awaited Green Paper which continues to be put back on the political

agenda.

Quality care delivery remains at the heart of all future strategy for Mediline which is underpinned by CQC

ratings providing ratings of Good for all inspections undertaken at Group companies in the year under review.

.

Results for the year

The profit generated by the group is consistent within the sector in which the company operates. This has

been achieved against a background of challenges that continue to impact upon the sector which include

annual increases to the National Living Wage, and increases to statutory pension contributions.

In contrast, annual fee increases from Local Authorities and the NHS have consistently been below the

statutory employment cost increases with an adverse impact on the group's financial results.

PRINCIPAL RISKS AND UNCERTAINTIES

Whilst the demand for care in the community continues to rise year on year, the main limitation in achieving

growth in care and to delivering a consistently, good quality services are twofold:

- The sourcing of and retention of sufficient care workers of good quality.

- The continual underfunding of uplifts against known operational cost increases by local authorities.

The company remains committed to driving improvements to the terms and conditions of care workers,

however as the business is primarily funded through publicly funded contracts, we are reliant on

improvements to government funding for care services in achieving these objectives.

The Mediline board has actively lobbied central government and whilst the Minister of State for Care

confirmed that an extra £240 million was being invested in social care for 2018/19 and 2019/20 to ease NHS

winter pressures with a further £410 million being provided for social care for 2019/20, at the time of this

report there has been no discernible positive impact as the funding has not permeated through to front line

services.

The minister of state for care indicated that the delay in the publication of the Green Paper on adult social

care was the result of wider events and was not a sign of the government's lack of commitment to seeing

progress in this vitally important area.

Assurances were provided from the minister that the development of strong proposals for the Green Paper

would be formalised and published at the earliest opportunity in 2019.

The Green Paper and government future strategy will be pivotal to the future of the care market and it is

envisaged that it will have a positive impact.

KEY PERFORMANCE INDICATORS

The main financial KPI's are turnover, gross profit and gross profit percentage. The figures for this year are:

2019

2018

£

£

Turnover

8,150,055

8,592,667

Gross profit

2,527,906

2,802,907

Gross profit %

31.0%

32.6%

The directors report a gross profit percentage which is in line with expectations resultant from the sector

specific pressures encountered by the subsidiary companies during the year under review.

ON BEHALF OF THE BOARD:

M W Baines - Director

24 October 2019

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a nursing and care agency.

DIVIDENDS

An interim dividend of £833.33 per share on the Ordinary A £1 shares was paid on 18 May 2018. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary £1 shares. The directors recommend that no final dividend be

paid on these shares.

The total distribution of dividends for the year ended 31 March 2019 will be £ 5,000 .

DIRECTORS

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

report.

P C Cook

Mrs S D Cook

M W Baines

EMPLOYEES

The company operates an Employee Information and Consultation Policy (policy No. 116) which has been

developed to inform and consult employees where changes are proposed or where issues have arisen within

the organisation that will directly affect them or where there are any developments within the organisation.

(Policy available upon request).

DISABLED EMPLOYEES

The company operates a Disability Discrimination Policy (policy No. 109) which puts in place arrangements

within the business to ensure that the organisation conforms to the requirements of the Equality Act 2010 in

relation to the services that we provide to our clients, the staff recruitment and selection procedures inclusive

of ongoing working needs and training and also for persons who visit our administrative facilities. (Policy

available upon request).

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, 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;

-

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 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.

ON BEHALF OF THE BOARD:

M W Baines - Director

24 October 2019

Opinion

We have audited the financial statements of Mediline Home Care Limited (the 'company') for the year ended

31 March 2019 which comprise the Statement of 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 31 March 2019 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 four, 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.

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

29 October 2019

TURNOVER

3

8,150,055

8,592,667

Cost of sales

(5,622,149

)

(5,789,760

)

GROSS PROFIT

2,527,906

2,802,907

Administrative expenses

(2,441,972

)

(2,590,463

)

OPERATING PROFIT

5

85,934

212,444

Interest receivable and similar income

-

4

85,934

212,448

Interest payable and similar expenses

6

(133,550

)

(71,621

)

(LOSS)/PROFIT BEFORE TAXATION

(47,616

)

140,827

Tax on (loss)/profit

7

1,595

(26,440

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(46,021

)

114,387

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(46,021

)

114,387

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

25,005

35,302

Investments

11

7,580,856

7,580,856

7,605,861

7,616,158

CURRENT ASSETS

Debtors

12

1,103,090

990,729

Cash at bank and in hand

1,815,535

950,791

2,918,625

1,941,520

CREDITORS

Amounts falling due within one year

13

5,812,134

4,437,656

NET CURRENT LIABILITIES

(2,893,509

)

(2,496,136

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,712,352

5,120,022

CREDITORS

Amounts falling due after more than one year

14

(2,750,588

)

(3,105,642

)

PROVISIONS FOR LIABILITIES

18

(3,545

)

(5,140

)

NET ASSETS

1,958,219

2,009,240

CAPITAL AND RESERVES

Called up share capital

19

106

106

Share premium account

20

20,994

20,994

Retained earnings

20

1,937,119

1,988,140

SHAREHOLDERS' FUNDS

1,958,219

2,009,240

The financial statements were approved by the Board of Directors on 24 October 2019 and were signed on its behalf by:

M W Baines - Director

Called up

Share

share

Retained

premium

Total

capital

earnings

account

equity

£

£

£

£

Balance at 1 April 2017

106

1,878,753

20,994

1,899,853

Changes in equity

Dividends

-

(5,000

)

-

(5,000

)

Total comprehensive income

-

114,387

-

114,387

Balance at 31 March 2018

106

1,988,140

20,994

2,009,240

Changes in equity

Dividends

-

(5,000

)

-

(5,000

)

Total comprehensive income

-

(46,021

)

-

(46,021

)

Balance at 31 March 2019

106

1,937,119

20,994

1,958,219

1.	STATUTORY INFORMATION

Mediline Home Care 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 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.

The company has made loss on ordinary activities before taxation of £46,021 (2018 profit: £140,827)

and the balance sheet details net current liabilities of £2,893,509 (2018: £2,496,136) and net assets of

£1,958,219 (2018: £2,009,240).

At the balance sheet date, the company was dependent on the continued support of it's subsidiary

companies and it's directors to finance it's obligations during the course of the twelve months from the

date of approval of the financial statements. They have confirmed that they will continue to support the

company and it is on this basis that the directors consider that the company will have adequate cash

resources to fund it's trading and other obligations during the course of the twelve months from the

date the financial statements are approved. Consequently the accounts have been prepared on the

going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption 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 parent company, Peter Cook Limited, prepares consolidated financial statements which are

publicly available via the Companies House website.

Preparation of consolidated financial statements

The financial statements contain information about Mediline Home Care Limited as an individual

company and do not contain consolidated financial information as the parent of a group. The company

is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare

consolidated financial statements as it and its subsidiary undertakings are included by full consolidation

in the consolidated financial statements of its parent, Peter Cook Limited, 3rd Floor, Butt Dyke House,

33 Park Row, Nottingham, NG1 6EE.

Turnover

Turnover represents care services provided during the year, recognised according to the period of

care.

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.

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of

Comprehensive Income, 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts and finance leases are depreciated over their estimated

useful lives.

The interest element of these obligations is charged to the profit and loss account over the relevant

period. The capital element of the future payments is treated as a liability.

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

over the period of the lease.

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.

TURNOVER

The turnover and loss (2018 - profit) before taxation are attributable to the one principal activity of the

company.

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

2019

2018

£

£

Services provided

8,150,055

8,592,667

8,150,055

8,592,667

4.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

6,341,154

6,326,611

Social security

477,298

720,630

Pension costs

175,570

184,585

6,994,022

7,231,826

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

2019

2018

Directors

3

3

Administrative staff

57

66

Carers

501

550

561

619

2019

2018

£

£

Directors' remuneration

92,376

92,312

Directors' pension contributions to money purchase schemes

108,460

151,030

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

2

5.	OPERATING PROFIT

The operating profit is stated after charging:

2019

2018

£

£

Hire of plant and machinery

19,554

23,461

Depreciation - owned assets

10,297

15,770

Auditors' remuneration

4,700

4,700

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Bank loan interest

133,550

71,309

Other interest and penalties

-

312

133,550

71,621

7.

TAXATION

Analysis of the tax (credit)/charge

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

2019

2018

£

£

Current tax:

UK corporation tax

-

29,855

Deferred tax

(1,595

)

(3,415

)

Tax on (loss)/profit

(1,595

)

26,440

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The

difference is explained below:

2019

2018

£

£

(Loss)/profit before tax

(47,616

)

140,827

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

(9,047

)

26,757

Effects of:

Expenses not deductible for tax purposes

787

849

Depreciation in excess of capital allowances

1,783

2,249

Deferred tax movement

(1,595

)

(3,415

)

Group relief surrendered

6,477

-

Total tax (credit)/charge

(1,595

)

26,440

8.

DIVIDENDS

2019

2018

£

£

Ordinary A shares of £1 each

Interim

5,000

5,000

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2018

and 31 March 2019

685,339

AMORTISATION

At 1 April 2018

and 31 March 2019

685,339

NET BOOK VALUE

At 31 March 2019

-

At 31 March 2018

-