The Grange Nursing Home Limited - Limited company accounts 18.2

REGISTERED NUMBER: 08578320 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 April 2019

for

The Grange Nursing Home Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

Mr R C Northover

Mrs H Northover

Mrs A L Northover

REGISTERED OFFICE:

72 Upper Northam Road

Hedge End

Southampton

Hampshire

SO30 4EB

REGISTERED NUMBER:

08578320 (England and Wales)

AUDITORS:

Eastleigh Accountants Limited

Statutory Auditors and Accountants

89 Leigh Road

Eastleigh

Hampshire

SO50 9DQ

The directors present their strategic report for the year ended 30 April 2019.

The principal activity of the company is that of a nursing home operator.

FAIR REVIEW OF THE BUSINESS

We are an owner managed company and so are not bound by the short term restraints and demands often

seen with an external shareholder base. We take the efficiency and morality of our business extremely

seriously, care comes first and we aim to provide a high quality service focused primarily on the private

market.

Our income and profits all derive from the operations of our Nursing Home.

We are well placed to meet both the challenges and opportunities of an ever expanding care market and our

strategy is to focus on continuing to provide high quality care.

We received a 'Good' overall rating from our last inspection by the Care Quality Commission.

The Company's key financial and other performance indicators during the period were as follows:-

2019 2018

Turnover 3,066,170 2,884,003

Gross Profit after salaries and wages 875,938 773,277

Gross Profit percentage 28.5% 27%

We consider occupancy rates to be the main non financial KPI and during the year the Company achieved an

average 85% (2018 85%).

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk is retention of registration with the Care Quality Commission.

The care sector is highly regulated and compliance is fundamental. As well as the usual management

responsibilities any employer expects to have, we operate under very strict rules set down by our regulator,

the Care Quality Commission.

In order to ensure that we meet these rules we ensure:

>That all our staff team members provide physical and psychological support to all of our residents at all

times.

>Our aim is to meet the needs of our residents in a kind and homely setting and we always work very closely

with family members to achieve this.

>We are constantly renewing best-practice. We research and procure the highest quality nursing equipment

to ensure the comfort and safety of our residents.

>We value training of all our team members, enabling them to attend both Statutory and Professional

development courses to keep them professionally competent and up-to-date.

ON BEHALF OF THE BOARD:

Mr R C Northover - Director

27 February 2020

The directors present their report with the financial statements of the company for the year ended 30 April 2019.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of nursing home operator.

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of £2000 per share.

The total distribution of dividends for the year ended 30 April 2019 will be £ 6,000 .

FUTURE DEVELOPMENTS

We are committed to continue to provide quality care and our primary focus is to maintain excellence in our

offerings to all our residents and staff members.

DIRECTORS

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

report.

Mr R C Northover

Mrs H Northover

Mrs A L Northover

CHARITABLE DONATIONS

During the year various donations were made to local charitable causes totalling £1,202.

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, Eastleigh Accountants Limited, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

ON BEHALF OF THE BOARD:

Mr R C Northover - Director

27 February 2020

Opinion

We have audited the financial statements of The Grange Nursing Home Limited (the 'company') for the year

ended 30 April 2019 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 30 April 2019 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 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.

Duncan Jefferies FCCA (Senior Statutory Auditor)

for and on behalf of Eastleigh Accountants Limited

Statutory Auditors and Accountants

89 Leigh Road

Eastleigh

Hampshire

SO50 9DQ

27 February 2020

TURNOVER

3,066,170

2,884,003

Cost of sales

282,094

314,126

GROSS PROFIT

2,784,076

2,569,877

Administrative expenses

2,418,661

2,229,532

365,415

340,345

Other operating income

(286,770

)

-

OPERATING PROFIT

4

78,645

340,345

Interest payable and similar expenses

5

(19,818

)

73,427

PROFIT BEFORE TAXATION

98,463

266,918

Tax on profit

6

37,708

69,714

PROFIT FOR THE FINANCIAL YEAR

60,755

197,204

PROFIT FOR THE YEAR

60,755

197,204

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

60,755

197,204

FIXED ASSETS

Intangible assets

8

1,352,500

1,382,500

Tangible assets

9

3,239,127

3,310,147

4,591,627

4,692,647

CURRENT ASSETS

Stocks

10

-

1,616,411

Debtors

11

248,574

161,240

Cash at bank and in hand

163,343

183,706

411,917

1,961,357

CREDITORS

Amounts falling due within one year

12

492,753

2,098,818

NET CURRENT LIABILITIES

(80,836

)

(137,461

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,510,791

4,555,186

CREDITORS

Amounts falling due after more than one year

13

1,105,203

1,204,353

NET ASSETS

3,405,588

3,350,833

CAPITAL AND RESERVES

Called up share capital

17

3

3

Share premium

18

2,237,829

2,237,829

Retained earnings

18

1,167,756

1,113,001

SHAREHOLDERS' FUNDS

3,405,588

3,350,833

The financial statements were approved by the Board of Directors on 27 February 2020 and were signed on its behalf by:

Mr R C Northover - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 May 2017

3

930,797

2,237,829

3,168,629

Changes in equity

Dividends

-

(15,000

)

-

(15,000

)

Total comprehensive income

-

197,204

-

197,204

Balance at 30 April 2018

3

1,113,001

2,237,829

3,350,833

Changes in equity

Dividends

-

(6,000

)

-

(6,000

)

Total comprehensive income

-

60,755

-

60,755

Balance at 30 April 2019

3

1,167,756

2,237,829

3,405,588

Cash flows from operating activities

Cash generated from operations

1

1,808,308

532,528

Interest paid

19,818

(73,427

)

Tax paid

(66,068

)

(143,308

)

Net cash from operating activities

1,762,058

315,793

Cash flows from investing activities

Purchase of tangible fixed assets

(41,608

)

(46,583

)

Net cash from investing activities

(41,608

)

(46,583

)

Cash flows from financing activities

Loan repayments in year

(1,051,575

)

(74,919

)

Amount introduced by directors

86,108

2,295

Amount withdrawn by directors

(778,592

)

(191,584

)

Equity dividends paid

(6,000

)

(15,000

)

Net cash from financing activities

(1,750,059

)

(279,208

)

Decrease in cash and cash equivalents

(29,609

)

(9,998

)

Cash and cash equivalents at beginning of year

2

183,706

193,704

Cash and cash equivalents at end of year

2

154,097

183,706

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

2019

2018

£

£

Profit before taxation

98,463

266,918

Depreciation charges

142,628

138,827

Finance costs

(19,818

)

73,427

221,273

479,172

Decrease/(increase) in stocks

1,616,411

(20,000

)

(Increase)/decrease in trade and other debtors

(61,992

)

60,507

Increase in trade and other creditors

32,616

12,849

Cash generated from operations

1,808,308

532,528

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 30 April 2019

30/4/19

1/5/18

£

£

Cash and cash equivalents

163,343

183,706

Bank overdrafts

(9,246

)

-

154,097

183,706

Year ended 30 April 2018

30/4/18

1/5/17

£

£

Cash and cash equivalents

183,706

193,704

1.	STATUTORY INFORMATION

The Grange Nursing Home 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,

rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2013, is being amortised evenly over its estimated useful life of fifty years.

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 property

-

2% on building cost

Plant and machinery

-

20% on cost

Fixtures, fittings & equipment

-

20% on cost

Motor vehicles

-

25% on reducing balance

Office equipment

-

20% on cost

Stocks

Development stock is recorded at the lower of cost or net realisable value.

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

2019

2018

£

£

Wages and salaries

1,767,302

1,660,184

Social security costs

121,619

122,486

Other pension costs

19,215

13,930

1,908,136

1,796,600

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

2019

2018

Admin

7

7

Nursing

19

15

NVQ

19

27

Carers

35

23

Cooks

2

3

Kitchen assistants

11

11

Domestic

18

16

Laundry

7

10

Maintenance

4

3

122

115

2019

2018

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2019

2018

£

£

Depreciation - owned assets

112,628

108,827

Goodwill amortisation

30,000

30,000

Auditors' remuneration

6,800

7,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Bank interest

17

13

Bank loan interest

(19,835

)

73,135

Other interest paid

-

279

(19,818

)

73,427

6.

TAXATION

Analysis of the tax charge

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

2019

2018

£

£

Current tax:

UK corporation tax

36,011

66,068

Deferred tax

1,697

3,646

Tax on profit

37,708

69,714

Reconciliation of total tax 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

£

£

Profit before tax

98,463

266,918

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

18,708

50,714

Effects of:

Depreciation in excess of capital allowances

19,000

19,000

Total tax charge

37,708

69,714

7.

DIVIDENDS

2019

2018

£

£

Ordinary shares of 1 each

Final

6,000

15,000

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 May 2018

and 30 April 2019

1,500,000

AMORTISATION

At 1 May 2018

117,500

Amortisation for year

30,000

At 30 April 2019

147,500

NET BOOK VALUE

At 30 April 2019

1,352,500

At 30 April 2018

1,382,500