Care UK (UKSH) Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05111488 (England and Wales)

Strategic Report, Directors' Report and

Audited Financial Statements for the Year Ended 30 September 2019

for

Care UK (UKSH) Limited

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Statement of Directors' Responsibilities

5

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

Directors:

J W Easton

D G Stickland

Registered office:

Hawker House

5-6 Napier Court

Napier Road

Reading

Berkshire

RG1 8BW

Registered number:

05111488 (England and Wales)

Senior statutory auditor:

Ian Brokenshire

Independent auditors:

KPMG LLP

Chartered Accountants

Registered Auditors

Regus, 4th Floor

Salt Quay House

6 North East Quay

Plymouth

PL4 0HP

The Directors present their Strategic report, Directors' report and financial statements for the year

ended 30 September 2019.

Review of business

The Company is an intermediary holding company. The Company's results, together with its

subsidiaries are included in the consolidated Financial Statements of Care UK Health & Social

Care Holdings Limited ("Care UK" or "group"). Due to its nature the Company does not trade and

therefore generates no revenue but does incur operating expenses and depreciation in the course

of providing administration and central support services to its subsidiaries, which it fully recharges

to its subsidiaries.

As a holding company, there are not considered to be any KPI measurements of note.

The core strategies of its subsidiaries continue to be:

-

To retain and grow our existing contract base, so that Care UK continues to provide large scale support to the NHS and to be highly regarded by patients and communities.

-

To work with commissioners and other partners to transform the way secondary care is provided, proactively managing health and wellness and avoiding unnecessary hospitalisation.

-

To continue to focus on the training and development of our employees, ensuring that they are offered opportunities for career development and are rewarded for enhancing their skills and expertise.

Principal risks and uncertainties

The Company's subsidiaries operate facilities regulated by the Care Quality Commission and must

comply with relevant standards and legislation.

Care UK faces potential risks associated with the exit by the UK from its membership of the

European Union, and the potential uncertainty around the transition period. The UK exiting the

European Union could materially change both the fiscal and legal framework in which Care UK

operates, and it could have a material impact on the UK's economy and its future economic

growth. In addition, prolonged uncertainty regarding aspects of the UK economy due to the

uncertainty around the exit could damage customers' and investors' confidence. These aspects

could have a material adverse effect on Care UK's business, results of operations, financial

condition and growth prospects.

The Company is exposed to general and industry specific wage inflation pressures, including

legislative changes concerning the minimum wage, national living wage and apprenticeship levy.

The Company is also exposed to commodity price increases. During the last financial year the

impact of Brexit on sterling has resulted in a number of price increases for the medical

consumables and pharmacy items utilised in the provision of our services. However, fortunately

the savings from the procurement programme more than offset these cost pressures.

The Company has no significant concentrations of credit risk. Customers are CCG's, NHS Trusts

and NHS England.

The Company prepares regular forecasts of cash flow and liquidity and any requirement for

additional funding is managed as part of the overall Care UK financing arrangements. The

company has access to debt finance through its parent company.

The Company's principal financial assets are intercompany debtors. The amounts presented in

the balance sheet are net of allowances for doubtful debts. An allowance for impairment is made

where there is an identified loss event which, based on previous experience, is evidence of a

reduction in the recoverability of the cash flows.

Payment of suppliers

The Company does not follow a specific code or statement on payment practice. However, it is the

Company's policy to pay suppliers in accordance with the payment terms agreed at the outset of

the relationship providing the supplier adheres to its obligations. The only significant expenses

incurred by the company relate to interest charges from group companies.

Covid-19

Since the year end, COVID-19 has become a global pandemic which is causing a significant

impact across a number of different industries and sectors, particularly the healthcare sector.

Given the nature of the Company's current operations and activities as a holding

company,COVID-19 is not expected to create any additional risks for this specific company nor to

impact on the company's activities going forward, although it could have an impact on the value

and operations of its subsidiary undertakings.

Taking all available information into account, the Directors believe that it remains appropriate to

prepare the financial statement on a going concern basis. For further information, please see note

2 in the Accounting Policies section of these financial statements.

On behalf of the board:

J W Easton - Director

24 June 2020

The Directors present their Strategic report, Directors' report and financial statements for the year

ended 30 September 2019.

Principal activity

The Company is a holding company.

Dividends

A dividend of £11,419,573 was distributed for the year ended 30 September 2019 (2018: £nil).

Future developments

During the year ended 30 September 2020 the Company is expected to upstream its investment

portfolio to its sole shareholder Care UK Clinical Services Limited.

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Directors

J W Easton has held office during the whole of the period from 1 October 2018 to the date of this report.

Other changes in directors holding office are as follows:

D G Stickland was appointed as a director after 30 September 2019 but prior to the date of this report.

M R Parish , P J Whitecross and A J M Prosser ceased to be directors after 30 September 2019 but prior to the date of this report.

Political and charitable donations

The Company made £nil political or charitable donations during the year ended

30 September 2019 (2018: £nil).

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 auditor is unaware, and each Director 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 auditor is aware of that information.

Auditors

Pursuant to Section 487 of the Companies Act 2006, the auditors will be deemed to be reappointed

and KPMG LLP will therefore continue in office.

On behalf of the board:

J W Easton - Director

24 June 2020

The Directors are responsible for preparing the Strategic report, the Directors' report 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 they have elected to prepare the financial statements in accordance with UK accounting

standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102

The Financial Reporting Standard applicable in the UK and Republic of Ireland.

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 estimates that are reasonable and prudent;

-

state whether applicable UK accounting standards have been followed, subject to any

material departures disclosed and explained in the financial statements;

-

assess the company's ability to continue as a going concern, disclosing, as applicable,

matters related to going concern; and

-

use the going concern basis of accounting unless they either intend to liquidate the

company or to cease operations, or have no realistic alternative but to do so.

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 responsible for such internal control as they determine is

necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error, and have general responsibility for taking such steps

as are reasonably open to them to safeguard the assets of the company and to prevent and detect

fraud and other irregularities.

Opinion

We have audited the financial statements of Care UK (UKSH) Limited ("the Company") for the year

ended 30 September 2019 which comprise, the Statement of Comprehensive Income account, the

Balance Sheet, Statement of Changes in Equity and related notes, including the accounting

policies in note 2.

In our opinion the financial statements:

-

give a true and fair view of the state of the Company's affairs as at 30 September 2019

and of its profit for the year then ended;

-

have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; 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 are described below. We have fulfilled our ethical

responsibilities under, and are independent of the company in accordance with, UK ethical

requirements including the FRC Ethical Standard. We believe that the audit evidence we have

obtained is a sufficient and appropriate basis for our opinion.

Going concern

The Directors have prepared the financial statements on the going concern basis as they do not

intend to liquidate the company or to cease its operations, and as they have concluded that the

company's financial position means that this is realistic. They have also concluded that there are

no material uncertainties that could have cast significant doubt over its ability to continue as a

going concern for at least a year from the date of approval of the financial statements ("the going

concern period").

We are required to report to you if we have concluded that the use of the going concern basis of

accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant

doubt over the use of that basis for a period of at least a year from the date of approval of the

financial statements. In our evaluation of the Directors' conclusions, we considered the inherent

risks to the Company's business model and analysed how those risks might affect the Company's

financial resources or ability to continue operations over the going concern period. We have

nothing to report in these respects.

However, as we cannot predict all future events or conditions and as subsequent events may result

in outcomes that are inconsistent with judgements that were reasonable at the time they were

made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee

that the company will continue in operation.

Strategic report and Directors' report

The Directors are responsible for the Strategic report and the Directors' report. Our opinion on the

financial statements does not cover those reports and we do not express an audit opinion thereon.

Our responsibility is to read the Strategic report and the Directors' report and, in doing so, consider

whether, based on our financial statements audit work, the information therein is materially

misstated or inconsistent with the financial statements or our audit knowledge. Based solely on

that work:

-

we have not identified material misstatements in the Strategic report and the Directors'report;

-

in our opinion the information given in those reports for the financial year is consistent with

the financial statements; and

-

in our opinion those reports have been prepared in accordance with the Companies

Act 2006.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required 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; or

-

the Directors were not entitled to take advantage of the small companies exemption from the

requirement to prepare a Strategic report.

We have nothing to report in these respects.

Responsibilities of Directors

As explained more fully in their statement set out on page 5, the Directors are responsible for: the

preparation of the financial statements and for being satisfied that they give a true and fair view;

such internal control as they determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to

liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our 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 our opinion

in an auditor's report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of the 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/auditorresponsibilities. This description

forms part of our Report of the Auditors.

The purpose of our audit work and to whom we owe our responsibilities

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 an auditor's report 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.

Ian Brokenshire (Senior Statutory Auditor)

for and on behalf of KPMG LLP

Chartered Accountants

Registered Auditors

Regus, 4th Floor

Salt Quay House

6 North East Quay

Plymouth

PL4 0HP

25 June 2020

Turnover

-

-

Operating profit

4

-

-

Dividends receivable

6,986

-

6,986

-

Impairment of investments

5

(100

)

-

Profit before taxation

6,886

-

Tax on profit

6

(7

)

(250

)

Profit/(loss) for the financial year

6,879

(250

)

Other comprehensive income

-

-

Total comprehensive income/(loss) for the year

6,879

(250

)

Fixed assets

Investments

8

-

100

Current assets

Debtors

9

-

4,441

Total assets less current liabilities

-

4,541

Capital and reserves

Called up share capital

11

-

3

Share premium

12

-

99

Profit and Loss account

12

-

4,439

Shareholders' funds

-

4,541

The financial statements were approved by the Board of Directors on 24 June 2020 and were signed on its behalf by:

J W Easton - Director

Called up

Profit and

share

Loss

Share

Total

capital

account

premium

equity

£'000

£'000

£'000

£'000

Balance at 1 October 2017

3

4,689

99

4,791

Changes in equity

Total comprehensive loss

-

(250

)

-

(250

)

Balance at 30 September 2018

3

4,439

99

4,541

Changes in equity

Reduction in share capital

(3

)

102

(99

)

-

Dividends

-

(11,420

)

-

(11,420

)

Total comprehensive income

-

6,879

-

6,879

Balance at 30 September 2019

-

-

-

-

1.	Statutory information

Care UK (UKSH) 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.

The financial statements have been prepared on a going concern basis which the Directors

believe to be appropriate for the following reasons:

a) The Company is a holding company and has no ongoing obligations.

b) As detailed in the Strategic Report, COVID-19 has not had any impact on the

Company's operations being a holding company, however it may impact on the performance

of its subsidiary undertakings going forward. Given the Company is not reliant on cash

flows from its subsidiary undertakings, this will not have any impact on the Company's ability

to continue as a going concern.

The Directors have prepared cash flow forecasts for a period of at least 12 months from the

date of approval of these financial statements which indicate that, taking account of severe

but plausible downsides, the Company will have sufficient funds to meet its liabilities as they

fall due for that period.

Within the severe but plausible downsides the Directors have considered the potential

impacts of COVID-19 on the trading performance of subsidiaries. However, the Company is

not reliant on dividends or receipt of receivables from their subsidiaries to meet its liabilities.

As such, the Directors have concluded that even with the severe but plausible downsides

from COVID-19, it remains appropriate to prepare the financial statements on a going

concern basis.

The accounting policies set out below have, unless otherwise stated, been applied

consistently to all periods presented in these financial statements.

Judgements made by the Directors, in the application of these accounting policies that have

significant effect on the financial statements and estimates with a significant risk of material

adjustment in the next year are discussed below.

Preparation of consolidated financial statements

The company's ultimate parent undertaking, Care UK Health & Social Care Holdings Limited

includes the company in its consolidated financial statements. The consolidated financial

statements of Care UK Health & Social Care Holdings Limited are prepared in accordance

with International Financial Reporting Standards as adopted by the EU and are available to

the public and may be obtained from its registered office as per note 15.

In these financial statements the company is considered to be a qualifying entity (for the

purpose of this FRS) and has applied the exceptions available under FRS102 in respect of

the following disclosures:

- 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 Company is exempt by virtue of Section 400 of the Companies Act 2006 from the

requirement to prepare consolidated financial statements. These financial statements

present information about the company as an individual undertaking and not about its

group.

Significant judgements and estimates

The preparation of the Financial Statements in conformity with FRS 102 requires

management to make estimates and assumptions that affect the reported amounts of assets

and liabilities at the date of the Financial Statements and the reported amounts of revenue

and expenses during the year then ended. Management bases its estimates on historical

experience and various other assumptions that are believed to be reasonable under the

circumstances. Actual results may differ from those estimates.

Estimates are used in accounting for allowances for uncollectible receivables, depreciation,

amortisation and impairment, pensions, taxes, provisions, and contingencies. Estimates and

assumptions are reviewed periodically and the effects of revisions are reflected in the

Financial Statements in the year that an adjustment is determined to be required.

Management regularly discusses with the Group Audit Committee the development,

selection and disclosure of the company's critical accounting policies and estimates and the

application of these policies and estimates.

Significant accounting judgements in applying the Company's accounting policies have been

applied by the Company in order to prepare the financial statements with respect to the

value of investments and are described below.

Investments

The Company assesses the recoverable amount of investments where there are indications

that the assets could be impaired. Indicators of impairment include factors internal and

external to the organisation that suggest the asset's value may have declined. Where

indicators suggest that the value of the asset may have declined, the Company estimates

the recoverable amount of the cash generating unit (CGU) to which the investment belongs.

Recoverable amount is the higher of fair value less cost of disposal and value in use. The

value in use calculation requires an estimate of the future cash flows expected to arise from

the CGU and a suitable discount rate in order to calculate present value.

Investments in subsidiaries

Investments in subsidary undertakings are recognised at cost less any provision for

impairment.

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 balance sheet date.

Deferred taxation

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.

Impairment excluding stocks and deferred tax assets

Financial assets (including trade and other debtors)

A financial asset not carried at fair value through profit or loss is assessed at each reporting

date to determine whether there is objective evidence that it is impaired. A financial asset is

impaired if objective evidence indicates that a loss event has occurred after the initial

recognition of the asset, and that the loss event had a negative effect on the estimated

future cash flows of that asset that can be estimated reliably.

An impairment loss in respect of a financial asset measured at amortised cost is calculated

as the difference between its carrying amount and the present value of the estimated future

cash flows discounted at the asset's original effective interest rate. For financial instruments

measured at cost less impairment an impairment is calculated as the difference between its

carrying amount and the best estimate of the amount that the Company would receive for

the asset if it were to be sold at the reporting date. Interest on the impaired asset continues

to be recognised through the unwinding of the discount. Impairment losses are recognised in

profit or loss. When a subsequent event causes the amount of impairment loss to decrease,

the decrease in impairment loss is reversed through profit or loss.

Non-financial assets

The carrying amounts of the Company's non-financial assets, other than stocks and deferred

tax assets, are reviewed at each reporting date to determine whether there is any indication

of impairment. If any such indication exists, then the asset's recoverable amount is

estimated. The recoverable amount of an asset or cash-generating unit is the greater of its

value in use and its fair value less costs to sell. In assessing value in use, the estimated

future cash flows are discounted to their present value using a pre-tax discount rate that

reflects current market assessments of the time value of money and the risks specific to the

asset. For the purpose of impairment testing, assets that cannot be tested individually are

grouped together into the smallest group of assets that generates cash inflows from

continuing use that are largely independent of the cash inflows of other assets or groups of

assets (the "cash-generating unit"). The goodwill acquired in a business combination, for the

purpose of impairment testing is allocated to cash-generating units, or ("CGU") that are

expected to benefit from the synergies of the combination. For the purpose of goodwill

impairment testing, if goodwill cannot be allocated to individual CGUs or groups of CGUs on

a non-arbitrary basis, the impairment of goodwill is determined using the recoverable amount

of the acquired entity in its entirety, or if it has been integrated then the entire entity into

which it has been integrated.

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its

estimated recoverable amount. Impairment losses are recognised in profit or loss.

Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying

amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the

other assets in the unit (group of units) on a pro rata basis.

An impairment loss is reversed if and only if the reasons for the impairment have ceased to

apply.

Impairment losses recognised in prior periods are assessed at each reporting date for any

indications that the loss has decreased or no longer exists. An impairment loss is reversed

only to the extent that the asset's carrying amount does not exceed the carrying amount that

would have been determined, net of depreciation or amortisation, if no impairment loss had

been recognised.

Financial guarantee

Where the Company enters into financial guarantee contracts to guarantee the indebtedness

of other companies within its group, the company treats the guarantee contract as a

contingent liability until such time as it becomes probable that the company will be required

to make a payment under the guarantee.

Classification of financial instruments issued by the Company

In accordance with FRS 102.22, financial instruments issued by the Company are treated as

equity only to the extent that they meet the following two conditions:

(a) they include no contractual obligations upon the company to deliver cash or other

financial assets or to exchange financial assets or financial liabilities with another party under

conditions that are potentially unfavourable to the company; and

(b) where the instrument will or may be settled in the company's own equity instruments, it is

either a non-derivative that includes no obligation to deliver a variable number of the

company's own equity instruments or is a derivative that will be settled by the company's

exchanging a fixed amount of cash or other financial assets for a fixed number of its own

equity instruments.

To the extent that this definition is not met, the proceeds of issue are classified as a financial

liability. Where the instrument so classified takes the legal form of the company's own

shares, the amounts presented in these financial statements for called up share capital and

share premium account exclude amounts in relation to those shares.

Basic financial instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price less attributable

transaction costs. Trade and other creditors are recognised initially at transaction price plus

attributable transaction costs. Subsequent to initial recognition they are measured at

amortised cost using the effective interest method, less any impairment losses in the case of

trade debtors. If the arrangement constitutes a financing transaction, for example if payment

is deferred beyond normal business terms, then it is measured at the present value of future

payments discounted at a market rate of instrument for a similar debt instrument.

Interest-bearing borrowings classified as basic financial instruments

Interest-bearing borrowings are recognised initially at the present value of future payments

discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing

borrowings are stated at amortised cost using the effective interest method, less any

impairment losses.

Investments in preference and ordinary shares

Investments in equity instruments are measured initially at fair value, which is normally the

transaction price. Transaction costs are excluded if the investments are subsequently

measured at fair value through profit and loss. Subsequent to initial recognition investments

that can be measured reliably are measured at fair value with changes recognised in profit or

loss. Other investments are measured at cost less impairment in profit or loss

Investments in subsidiaries, jointly controlled entities and associates

These are separate financial statements of the company. Investments in subsidiaries, jointly

controlled entities and associates are carried at cost less impairment.

3.	Directors' emoluments

The Directors received £nil emoluments during the financial year ended 30 September 2019

for their services to the Company (2018: £nil).

The emoluments of A Prosser and J Easton for services to the Healthcare division are paid

by and disclosed within the accounts of Care UK Healthcare Holdings Ltd.

The emoluments of M Parish and P Whitecross for services to the Group are paid by Care

UK Ltd and disclosed within the accounts of Care UK Health and Social Care Investments

Ltd.

4.	Operating profit

The operating profit is stated after charging:

2019

2018

£'000

£'000

Auditor's remuneration

1

1

The remuneration of the auditor in the current and prior financial years was borne by another

group company. The amount above is management's best estimate of the proportion

relating to this company.

5.	Impairment of investments

2019

2018

£'000

£'000

Impairment of investments

100

-

6.

Taxation

Analysis of the tax charge

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

2019

2018

£'000

£'000

Deferred tax - current year

7

250

Tax on profit

7

250

Reconciliation of total tax charge included in profit and loss

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

The difference is explained below:

2019

2018

£'000

£'000

Profit before tax

6,886

-

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

1,308

-

Effects of:

Expenses not deductible for tax purposes

19

-

Income not taxable for tax purposes

(1,327

)

-

Group relief surrendered

-

2

Deferred tax not recognised

7

248

Total tax charge

7

250

Factors that may affect future tax charges

Reduction in the UK corporation tax rate from 19% to 17% (effective 1 April 2020) was fully

enacted on 15 September 2016. This will reduce the company's future current tax charge

accordingly. The deferred tax asset at 30 September 2019 has been calculated based on

these rates fully enacted at the year-end date.

The March 2020 Budget announced that a rate of 19% would continue to apply with effect

from 1 April 2020, and this change was substantively enacted on 17 March 2020.

7.

Dividends

2019

2018

£'000

£'000

A Ordinary shares share of 10p

Interim dividend paid

11,420

-

8.	Fixed asset investments

Shares in

group

undertakings

£'000

Cost

At 1 October 2018

and 30 September 2019

100

Provisions

Impairment in year

100

At 30 September 2019

100

Net book value

At 30 September 2019

-

At 30 September 2018

100

The Company's investments at the Balance Sheet date in the share capital of companies

include the following:

Participating Interest

Class of share capital held

Effective holding percentage

Nature of business

2019

2018

Care UK (AGW) Limited **

Ordinary

100%

100%

Medical services

Care UK (Shepton Mallet) Limited

Ordinary

100%

100%

Medical services

Care UK (Peninsula) Limited

Ordinary

100%

100%

Medical services

The companies in which the Company has a participating interest all have their registered

office at Hawker House, 5-6 Napier Court, Napier Road, Reading, Berkshire, RG1 8BW.

** On 1 October 2019 the subsidiary undertaking was dissolved at Companies House, as a

result the carrying value of the investment was impaired to £nil.

9.

Debtors: amounts falling due within one year

2019

2018

£'000

£'000

Amounts owed by group undertakings

-

4,434

Deferred tax asset

-

7

-

4,441

The amounts owed by group undertakings bear no interest. The loan is unsecured. The

amounts advanced were repaid in full by 30 September 2019.