Thorburn Manor Ltd Filleted accounts for Companies House (small and micro)

THORBURN MANOR LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: SC384291

Thorburn Manor Ltd

Filleted Financial Statements

31 August 2019

Thorburn Manor Ltd

Statement of Financial Position

31 August 2019

	2019		2018
Note	£	£	£

Fixed assets

Tangible assets	5		3,545,339	3,520,040

Current assets

Stocks		1,350	1,000
Debtors	6	907,431	2,022,716
Cash at bank and in hand		122,179	677,112
		------------	------------
		1,030,960	2,700,828

Creditors: amounts falling due within one year	7	410,142		1,801,430
		------------		------------
Net current assets			620,818	899,398
			------------	------------
Total assets less current liabilities			4,166,157	4,419,438

Creditors: amounts falling due after more than one year	8		3,830,733	4,057,811

Provisions

Taxation including deferred tax	91,446	81,461
	------------	------------
Net assets	243,978	280,166
	------------	------------

Capital and reserves

Called up share capital	10	1	1
Profit and loss account	11	243,977	280,165
		---------	---------
Shareholders funds		243,978	280,166
		---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements were approved by the board of directors and authorised for issue on 18 August 2020 , and are signed on behalf of the board by:

Sean Black
Director

Company registration number: SC384291

Thorburn Manor Ltd

Notes to the Financial Statements

Year ended 31 August 2019

1. General information

Thorburn Manor Ltd is a private company limited by shares, registered in Scotland ( SC384291 ). The address of the registered office is 29 York Place, Edinburgh, EH1 3HP. The place of business is 2a Thorburn Road, Edinburgh, EH13 0BQ. The principal activity of the company is proprietors and operators of care homes for the elderly.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis and relate to the individual entity . The financial statements are prepared in sterling, which is the functional currency of the entity, rounded to the nearest pound .

Group relief

It is group policy to surrender tax losses without payment.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The directors have made the following estimates in the process of applying the entity's accounting policies:- - depreciation - residual value and economic life

Revenue recognition

Turnover is measured at the fair value of the total invoice value of fees receivable from care home residents. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of timing differences. Deferred tax relating to Land & buildings that is measured at fair value is measured using the rates and allowances that apply to the sale of the asset .

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Buildings	-	straight line over 50 years
Crockery & linen	-	10% reducing balance
Plant & machinery	-	25% reducing balance
Fixtures & fittings	-	25% reducing balance
Office equipment	-	25% reducing balance

Land - Nil Integral features - 2% straight line (Plant & machinery contained in the fabric of the building)

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units .

Stocks

Stocks are measured at cost.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments. Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and all are subsequently carried at amortised cost using the effective interest method. Financial liabilities are classified according to the substance of the contractual arrangements entered into. Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and in hand includes cash and short term highly liquid investments. Creditors are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due .

4. Employee numbers

The average number of persons employed by the company during the year amounted to 46 (2018: 49 ).

5. Tangible assets

	Freehold property	Crockery & linen	Plant and machinery	Fixtures and fittings	Office Equipment	Total
	£	£	£	£	£	£
Cost
At 1 Sep 2018	3,741,689	17,282	42,674	157,615	6,327	3,965,587
Additions	14,247	–	7,110	97,979	2,298	121,634
	------------	--------	--------	---------	-------	------------
At 31 Aug 2019	3,755,936	17,282	49,784	255,594	8,625	4,087,221
	------------	--------	--------	---------	-------	------------
Depreciation
At 1 Sep 2018	288,805	7,503	32,372	112,804	4,063	445,547
Charge for the year	54,167	978	4,353	35,697	1,140	96,335
	------------	--------	--------	---------	-------	------------
At 31 Aug 2019	342,972	8,481	36,725	148,501	5,203	541,882
	------------	--------	--------	---------	-------	------------
Carrying amount
At 31 Aug 2019	3,412,964	8,801	13,059	107,093	3,422	3,545,339
	------------	--------	--------	---------	-------	------------
At 31 Aug 2018	3,452,884	9,779	10,302	44,811	2,264	3,520,040
	------------	--------	--------	---------	-------	------------

6. Debtors

	2019	2018
	£	£
Trade debtors	26,813	15,593
Amounts owed by group undertakings and undertakings in which the company has a participating interest	876,370	1,258,011
Other debtors	4,248	749,112
	---------	------------
	907,431	2,022,716
	---------	------------

Other debtors

	2019	2018
	£	£
Prepayments	3,293	4,284
Amounts owed by related companies	–	740,000
Other	955	4,828
	-------	---------
	4,248	749,112
	-------	---------

7. Creditors: amounts falling due within one year

	2019	2018
	£	£
Bank loans and overdrafts	244,576	244,576
Trade creditors	14,400	12,285
Amounts owed to group undertakings and undertakings in which the company has a participating interest	996	1,420,442
Corporation tax	39,426	40,274
Social security and other taxes	20,458	16,974
Other creditors	90,286	66,879
	---------	------------
	410,142	1,801,430
	---------	------------

Other creditors include accruals and deferred income totalling £70,362 (2018 £42,976).

8. Creditors: amounts falling due after more than one year

	2019	2018
	£	£
Bank loans and overdrafts	2,830,733	3,057,811
Other creditors	1,000,000	1,000,000
	------------	------------
	3,830,733	4,057,811
	------------	------------

HSBC Bank plc hold a standard security over the property at 2a Thorburn Road, as included in fixed assets. HSBC Bank plc hold a bond & floating charge over all assets of the company covering all sums due.

Included within creditors: amounts falling due after more than one year is an amount of £1,792,304 (2018: £2,036,880) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

9. Financial instruments at fair value

All financial instruments are basic financial instruments.

10. Called up share capital

Issued, called up and fully paid

	2019		2018
	No.	£	No.	£
Ordinary shares of £ 1 each	1	1.00	1	1.00
	----	-----	----	-----

11. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

12. Events after the end of the reporting period

In the first half of 2020, the Group has faced many challenges due to the global outbreak of the Coronavirus Covid-19. The Company has been supported by its Parent Company throughout this global pandemic. At the time of signing the 2019 statutory accounts, the country is under restriction measures introduced by the Government to combat COVID19. It remains unclear the level of economic impact these measures will have on businesses in the UK and abroad. The care sector in particular is facing significant challenges, including higher mortality rates and the availability of PPE. The group companies are strictly following government guidelines to keep residents and staff safe and to date used our best endeavours to mitigate the risk as much as possible. With the financial support measures introduced by the government in place to assist businesses during this difficult period and the Group's resources, the Company is well placed to deal with the difficulties the economic impact caused by this pandemic will create.

13. Summary audit opinion

The auditor's report for the year dated 20 August 2020 was unqualified.

The senior statutory auditor was Walter Raymond Paterson , for and on behalf of McDonald Gordon & Co Ltd .

14. Related party transactions

The loan of £741,000 due by Rutherford Finance Ltd was repaid during the year. S Black and R Black, who is the spouse of S Black, are director's of Rutherford Finance Ltd. This loan is repayable on demand and interest free. Other creditors include a loan of £1,000,000 owed to Rutherford Finance Ltd. The company has taken advantage of the exemption under FRS102 Section 33 from the requirement to disclose information of transactions with the entities which are part of the group, on the basis that consolidated group financial statements are publicly available.

15. Controlling party

The ultimate parent undertaking is Lindemann Healthcare Ltd (SC155229) a company registered in Scotland at 29 York Place, Edinburgh, EH1 3HP. Consolidated accounts for Lindemann Healthcare Ltd are available from Companies House, 4th Floor, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF.