Cedar Care Developments Limited - Limited company accounts 20.1

REGISTERED NUMBER: 11025231 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 July 2019

for

Cedar Care Developments Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

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

DIRECTOR:

A M Desai

REGISTERED OFFICE:

Mortimer House

Clifton Down Road

Bristol

BS8 4AE

REGISTERED NUMBER:

11025231 (England and Wales)

AUDITORS:

Wormald & Partners

Chartered Accountants (ICAEW)

Redland House

157 Redland Road

Redland

Bristol

BS6 6YE

The director presents his strategic report for the year ended 31 July 2019.

REVIEW OF BUSINESS

The principal activity of the company was that of a construction company.

The results for the year and the financial position at the year end were considered satisfactory by the directors.

Despite the current economic climate, the director expects to see continued growth in the company for the foreseeable

future both organically and through further expansion of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider there to be no significant risks and uncertainties associated with the business.

The company manages the liquidity risk by ensuring the continuity of funding and flexibility through maintaining adequate

bank reserves, with trade creditors liquidity risk managed by ensuring sufficient funds are available to meet amounts due for

payment. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the customers' credit

accounts, together with the daily monitoring of amounts outstanding.

ON BEHALF OF THE BOARD:

A M Desai - Director

17 July 2020

The director presents his report with the financial statements of the company for the year ended 31 July 2019.

DIVIDENDS

No dividends will be distributed for the year ended 31 July 2019.

DIRECTOR

A M Desai held office during the whole of the period from 1 August 2018 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in

accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has

elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial

statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or

loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's

transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to

ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the

assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other

irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006)

of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in

order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that

information.

AUDITORS

The auditors, Wormald & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A M Desai - Director

17 July 2020

Opinion

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

31 July 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 31 July 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report

and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly

stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in

the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material misstatement in the financial statements or a

material misstatement of the other information. If, based on the work we have performed, we conclude that there is a

material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we

have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if,

in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for

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

control as the director determines necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless

the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users

taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies

Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are

required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do

not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit

work, for this report, or for the opinions we have formed.

Neil Dando (Senior Statutory Auditor)

for and on behalf of Wormald & Partners

Chartered Accountants (ICAEW)

Redland House

157 Redland Road

Redland

Bristol

BS6 6YE

17 July 2020

TURNOVER

3,885,079

1,130,052

Cost of sales

3,721,012

1,073,654

GROSS PROFIT

164,067

56,398

Administrative expenses

110,603

45,425

OPERATING PROFIT and

PROFIT BEFORE TAXATION

53,464

10,973

Tax on profit

5

12,676

2,085

PROFIT FOR THE FINANCIAL YEAR

40,788

8,888

PROFIT FOR THE YEAR

40,788

8,888

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

40,788

8,888

FIXED ASSETS

Tangible assets

6

23,313

24,225

CURRENT ASSETS

Stocks

7

63,211

59,490

Debtors

8

533,965

398,107

Cash at bank

217,225

31,665

814,401

489,262

CREDITORS

Amounts falling due within one year

9

782,608

501,514

NET CURRENT ASSETS/(LIABILITIES)

31,793

(12,252

)

TOTAL ASSETS LESS CURRENT LIABILITIES

55,106

11,973

PROVISIONS FOR LIABILITIES

10

4,430

2,085

NET ASSETS

50,676

9,888

CAPITAL AND RESERVES

Called up share capital

11

1,000

1,000

Retained earnings

12

49,676

8,888

SHAREHOLDERS' FUNDS

50,676

9,888

The financial statements were approved by the director and authorised for issue on 17 July 2020 and were signed by:

A M Desai - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

1,000

-

1,000

Total comprehensive income

-

8,888

8,888

Balance at 31 July 2018

1,000

8,888

9,888

Changes in equity

Total comprehensive income

-

40,788

40,788

Balance at 31 July 2019

1,000

49,676

50,676

Cash flows from operating activities

Cash generated from operations

1

214,263

(210,544

)

Net cash from operating activities

214,263

(210,544

)

Cash flows from investing activities

Purchase of tangible fixed assets

(7,000

)

(26,400

)

Net cash from investing activities

(7,000

)

(26,400

)

Cash flows from financing activities

Loan from group undertaking

-

268,609

Repaid to group undertaking

(21,703

)

(1,000

)

Share issue

-

1,000

Net cash from financing activities

(21,703

)

268,609

Increase in cash and cash equivalents

185,560

31,665

Cash and cash equivalents at beginning of year

2

31,665

-

Cash and cash equivalents at end of year

2

217,225

31,665

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

Period

23.10.17

Year Ended

to

31.7.19

31.7.18

£

£

Profit before taxation

53,464

10,973

Depreciation charges

7,912

2,175

61,376

13,148

Increase in stocks

(3,721

)

(59,490

)

Increase in trade and other debtors

(135,858

)

(398,107

)

Increase in trade and other creditors

292,466

233,905

Cash generated from operations

214,263

(210,544

)

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 July 2019

31.7.19

1.8.18

£

£

Cash and cash equivalents

217,225

31,665

Period ended 31 July 2018

31.7.18

23.10.17

£

£

Cash and cash equivalents

31,665

-

1.	STATUTORY INFORMATION

Cedar Care Developments Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

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.

Tangible fixed assets

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

Motor vehicles

-

25% on reducing balance basis

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the

extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the 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

Period

23.10.17

Year Ended

to

31.7.19

31.7.18

£

£

Wages and salaries

62,409

79,456

Social security costs

6,403

9,474

Other pension costs

1,004

453

69,816

89,383

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

Period

23.10.17

Year Ended

to

31.7.19

31.7.18

Construction

1

1

Administration

3

2

4

3

Period

23.10.17

Year Ended

to

31.7.19

31.7.18

£

£

Director's remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

Period

23.10.17

Year Ended

to

31.7.19

31.7.18

£

£

Depreciation - owned assets

7,912

2,175

Auditors' remuneration

4,500

1,500

Auditors' remuneration for non audit work

600

2,985

5.

TAXATION

Analysis of the tax charge

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

Period

23.10.17

Year Ended

to

31.7.19

31.7.18

£

£

Current tax:

UK corporation tax

10,331

-

Deferred tax

2,345

2,085

Tax on profit

12,676

2,085

6.	TANGIBLE FIXED ASSETS

Motor

vehicles

£

COST

At 1 August 2018

26,400

Additions

7,000

At 31 July 2019

33,400

DEPRECIATION

At 1 August 2018

2,175

Charge for year

7,912

At 31 July 2019

10,087

NET BOOK VALUE

At 31 July 2019

23,313

At 31 July 2018

24,225

7.

STOCKS

2019

2018

£

£

Stocks

63,211

59,490

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

403,774

367,314

Other debtors

124,212

30,793

Prepayments and accrued income

5,979

-

533,965

398,107

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

518,002

226,514

Amounts owed to group undertakings

245,906

267,609

Tax

10,331

-

Social security and other taxes

2,167

2,891

Other creditors

474

-

Accruals and deferred income

5,728

4,500

782,608

501,514

10.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

4,430

2,085

Deferred

tax

£

Balance at 1 August 2018

2,085

Accelerated capital allowances

2,345

Balance at 31 July 2019

4,430

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

1,000

Ordinary

£1

1,000

1,000

12.

RESERVES

Retained

earnings

£

At 1 August 2018

8,888

Profit for the year

40,788

At 31 July 2019

49,676

13.	ULTIMATE PARENT COMPANY

Cedar Care Homes Limited (incorporated in England ) is regarded by the director as being the company's ultimate

parent company.

14.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

Sales include amounts invoiced to Barker Care Limited in the sum of £3,839,908 (2018 £1,189,542)

Included within trade debtors are amounts due from Barker Care Limited in the sum of £401,614 (2018 £223,169).

Barker Care Limited is a company in which A M Desai the director of the company is a director and shareholder.

All of the above transactions were conducted on an arm's length basis.

15.	ULTIMATE CONTROLLING PARTY

The controlling party is Cedar Care Homes Limited.

There is no ultimate controlling party of the company.