Apex Prime Care Ltd - Period Ending 2020-03-31

Registration number: 04296566

Apex Prime Care Ltd

Annual Report and Financial Statements

for the Year Ended 31 March 2020

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

Apex Prime Care Ltd

Contents

Company Information	1
Directors' Report	2 to 3
Strategic Report	4
Statement of Directors' Responsibilities	5
Independent Auditor's Report	6 to 8
Profit and Loss Account	9
Balance Sheet	10
Statement of Changes in Equity	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 to 24

Apex Prime Care Ltd

Company Information

Directors

E A Patrick M S Patrick M Rooker

Company secretary

E A Patrick

Registered office

Windsor House Bayshill Road Cheltenham GL50 3AT

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

- 1 -

Apex Prime Care Ltd

Directors' Report for the Year Ended 31 March 2020

The directors present their report and the financial statements for the year ended 31 March 2020.

Directors of the company

The directors who held office during the year were as follows:

E A Patrick

M S Patrick

M Rooker (appointed 20 February 2020)

Financial instruments

Objectives and policies

The board constantly monitors the company's trading results and revise projections as appropriate to ensure that the company can meet its future obligations as they fall due.

Price risk, credit risk, liquidity risk and cash flow risk

The company is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through credit control procedures. The group's bank loans and loan stock are subject to price and liquidity risk as disclosed in note 15 to the financial statements.

In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009', the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.

The company has sufficient resources available and the directors have prepared forecasts for the next 12 months that indicate that this will continue to be the case and that these cash flows will be sufficient for the company to meet its financing commitments as they fall due. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Employment of disabled persons

The company’s policy is to consider the recruitment of disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Employee involvement

The company encourages the involvement of employees in its management through regular departmental meetings.

Disclosure of information to the auditors

Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

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Apex Prime Care Ltd

Directors' Report for the Year Ended 31 March 2020

Approved by the Board on 3 September 2020 and signed on its behalf by:

.........................................
M S Patrick
Director

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Apex Prime Care Ltd

Strategic Report for the Year Ended 31 March 2020

The directors present their strategic report for the year ended 31 March 2020.

Principal activity

The principal activity of the company is domiciliary care.

Fair review of the business

Apex Prime Care has achieved a further 20.5% growth in sales turnover, through organic growth from the existing branch network.

We took the view that we would use the last 12 months to consolidate our position and ensure that previous acquisitions were fully imbedded within Apex Prime Care

We had projected that our Gross Profit would increase to 28% for the year to 31st March 2020, however we are very pleased that we have achieved a Gross profit of 29.3%. Our goal is maintaining this figure in future years, and in time work towards a Gross Profit of 30%

Overall our progress can be seen in the following table:

Year ended 31 March	2020	2019	2018	2017
Turnover	20,568,593	17,056,749	14,287,420	9,584,424
Gross profit	6,025,826	4,493,352	4,619,951	3,038,191
Underlying EBITDA	1,883,702	1,189,089	1,351,721	625,479

The market place for care services is strong and I remain optimistic that notwithstanding legislative changes in Social Care, Apex Prime Care is well positioned to grow whilst delivering a consistently high-quality service to our clients. Clearly the future has some uncertainty to as we are still in a Pandemic, and subject to a constantly changing world.

Attracting and developing suitable and caring staff continues to be the priority of Apex. Each branch has in-house training facilities and the care staff are encouraged to enhance their skills by attending regular training sessions.

Apex Prime Care plans to re start its programme of expansion, by continual organic growth and acquisition of other companies, within our target area and geographic boundaries.
 

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to ongoing compliance with current and future legislation affecting the sector.

Approved by the Board on 3 September 2020 and signed on its behalf by:

.........................................
M S Patrick
Director

- 4 -

Apex Prime Care Ltd

Statement of Directors' Responsibilities

The directors are responsible for preparing the Directors' Report, Strategic 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 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 apply them consistently;
•	make judgements and accounting estimates that are reasonable and prudent;
•	state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and
•	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.

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Apex Prime Care Ltd

Independent Auditor's Report to the Members of Apex Prime Care Ltd

Opinion

We have audited the financial statements of Apex Prime Care Ltd (the 'company') for the year ended 31 March 2020, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 March 2020 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 Auditor’s 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.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue as a going concern. For example, it is difficult to evaluate all of the potential implications of the current COVID-19 outbreak on the company’s trade, employees, customers, suppliers and the wider economy.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.

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Apex Prime Care Ltd

Independent Auditor's Report to the Members of Apex Prime Care Ltd

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•	the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 5, 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 is 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.

Auditor’s 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 an auditor’s report 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 auditor's report.

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Apex Prime Care Ltd

Independent Auditor's Report to the Members of Apex Prime Care Ltd

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 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.

......................................
Martin Howard (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

7 September 2020

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Apex Prime Care Ltd

Profit and Loss Account for the Year Ended 31 March 2020

	Note	2020  £	2019  £
Turnover	3	20,568,593	17,056,749
Cost of sales		(14,542,767)	(12,563,397)
Gross profit		6,025,826	4,493,352
Administrative expenses		(4,442,224)	(3,572,284)
Exceptional items	5	(92,101)	(224,165)
Operating profit	4	1,491,501	696,903
Other interest receivable and similar income	6	337	603
Interest payable and similar charges	7	(83,846)	(13,268)
Profit before tax		1,407,992	684,238
Taxation	10	(236,012)	(140,804)
Profit for the financial year		1,171,980	543,434

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

The notes on pages 13 to 24 form an integral part of these financial statements.
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Apex Prime Care Ltd

(Registration number: 04296566)
Balance Sheet as at 31 March 2020

	Note	2020  £	2019  £
Fixed assets
Intangible assets	11	1,331,802	1,495,875
Tangible assets	12	151,774	162,245
		1,483,576	1,658,120
Current assets
Debtors	13	2,040,258	2,396,190
Cash at bank and in hand		1,190,418	265,978
		3,230,676	2,662,168
Creditors: Amounts falling due within one year	14	(1,716,224)	(1,745,840)
Net current assets		1,514,452	916,328
Total assets less current liabilities		2,998,028	2,574,448
Creditors: Amounts falling due after more than one year	14	(736,884)	(985,284)
Net assets		2,261,144	1,589,164
Capital and reserves
Called up share capital	17	4	4
Profit and loss account		2,261,140	1,589,160
Total equity		2,261,144	1,589,164

Approved and authorised by the Board on 3 September 2020 and signed on its behalf by:
 

.........................................

M S Patrick
Director

The notes on pages 13 to 24 form an integral part of these financial statements.
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Apex Prime Care Ltd

Statement of Changes in Equity for the Year Ended 31 March 2020

	Share capital £	Profit and loss account £	Total £
At 1 April 2019	4	1,589,160	1,589,164
Profit for the year	-	1,171,980	1,171,980
Dividends	-	(500,000)	(500,000)
At 31 March 2020	4	2,261,140	2,261,144

	Share capital £	Profit and loss account £	Total £
Brought forward	-	697,891	697,891
Share capital brought forward	4	-	4
Prior period adjustment	-	762,835	762,835
At 1 April 2018	4	1,460,726	1,460,730
Profit for the year	-	543,434	543,434
Dividends	-	(415,000)	(415,000)
At 31 March 2019	4	1,589,160	1,589,164

The notes on pages 13 to 24 form an integral part of these financial statements.
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Apex Prime Care Ltd

Statement of Cash Flows for the Year Ended 31 March 2020

	Note	2020 £	2019 £
Cash flows from operating activities
Profit for the year		1,171,980	543,434
Adjustments to cash flows from non-cash items
Depreciation and amortisation	4	242,272	243,715
Profit on disposal of tangible assets		(4,315)	(7,500)
Finance income	6	(337)	(603)
Finance costs	7	83,846	13,268
Income tax charge / (credit)	10	236,012	140,804
		1,729,458	933,118
Working capital adjustments
Decrease/(increase) in debtors	13	187,250	(498,426)
(Decrease)/increase in creditors	14	(81,040)	416,941
Cash generated from operations		1,835,668	851,633
Income taxes paid	10	(3,388)	(9,802)
Net cash flow from operating activities		1,832,280	841,831
Cash flows from investing activities
Interest received	6	337	603
Acquisitions of tangible assets		(74,232)	(109,594)
Proceeds from sale of tangible assets		10,820	7,500
Acquisition of intangible assets	11	-	(1,190,301)
Net cash flows from investing activities		(63,075)	(1,291,792)
Cash flows from financing activities
Interest paid	7	(83,846)	(13,268)
Proceeds from bank borrowing draw downs		-	1,100,000
Repayment of bank borrowing		(218,161)	(32,092)
Repayment of other borrowing		-	(400,000)
Payments to finance lease creditors		(42,758)	(16,709)
Dividends paid	19	(500,000)	(415,000)
Net cash flows from financing activities		(844,765)	222,931
Net increase/(decrease) in cash and cash equivalents		924,440	(227,030)
Cash and cash equivalents at 1 April		265,978	493,008
Cash and cash equivalents at 31 March		1,190,418	265,978

The notes on pages 13 to 24 form an integral part of these financial statements.
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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when:The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Motor vehicles	20% straight line
Fixtures and fittings	20% straight line
Office equipment	20% straight line

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	Straight line over 10 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

3

Revenue

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

4

Operating profit

Arrived at after charging:

	2020  £	2019  £
Depreciation expense	78,199	111,560
Amortisation expense	164,073	132,155
Profit on disposal of property, plant and equipment	(4,315)	(7,500)

5

Exceptional items

	2020  £	2019  £
Exceptional expenses	92,101	224,165

Exceptional costs in the current year consist of various payroll and one-off costs, including £27,400 tribunal costs, and cancelled rent and rates costs related to an acquisition of £19,350.

Exceptional costs in the prior year also consisted of various payroll and one-off costs, including the costs of a new payroll system, a new direct staff care monitoring system and a £76,000 pension payment.

6

Other interest receivable and similar income

	2020 £	2019 £
Interest income on bank deposits	337	603

7

Interest payable and similar expenses

	2020 £	2019 £
Interest on bank overdrafts and borrowings	83,846	13,268

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2020  £	2019  £
Wages and salaries	15,653,978	13,426,063
Social security costs	1,065,315	900,854
Pension costs, defined contribution scheme	274,941	154,998
	16,994,234	14,481,915

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

	2020  No.	2019  No.
Administration and support	1,032	885

9

Directors' remuneration

The directors' remuneration for the year was as follows:

	2020 £	2019 £
Remuneration	17,263	16,848
Contributions paid to money purchase schemes	24,000	24,000
	41,263	40,848

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

10

Taxation

Tax charged in the profit and loss account

	2020  £	2019  £
Current taxation
UK corporation tax	67,330	115
UK corporation tax adjustment to prior periods	-	13,075
	67,330	13,190
Deferred taxation
Arising from origination and reversal of timing differences	168,682	127,614
Tax expense in the income statement	236,012	140,804

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2019 - higher than the standard rate of corporation tax in the UK) of 19% (2019 - 19%).

The differences are reconciled below:

	2020 £	2019 £
Profit before tax	1,407,992	684,238
Corporation tax at standard rate	267,518	130,005
Effect of expense not deductible in determining taxable profit (tax loss)	452	13,505
Effect of tax losses	(839)	(15,014)
Deferred tax credit relating to changes in tax rates or laws	(44,986)	-
Increase in UK and foreign current tax from adjustment for prior periods	-	13,075
Tax increase/(decrease) from effect of capital allowances and depreciation	14,363	(767)
Tax decrease from other short-term timing differences	(496)	-
Total tax charge	236,012	140,804

Deferred tax

Deferred tax assets and liabilities

2020	Asset £
Tax losses carried forward	191,851
Accelerated tax depreciation	15,653
Short term timing differences	6,197
	213,701

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

2019	Asset £
Tax losses carried forward	382,383
Accelerated tax depreciation	-
Short term timing differences	-
	382,383

11

Intangible assets

	Goodwill  £
Cost
At 1 April 2019 and at 31 March 2020	2,468,566
Amortisation
At 1 April 2019	972,691
Amortisation charge	164,073
At 31 March 2020	1,136,764
Carrying amount
At 31 March 2020	1,331,802
At 31 March 2019	1,495,875

12

Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost
At 1 April 2019	182,513	244,239	426,752
Additions	42,029	32,203	74,232
Disposals	-	(39,522)	(39,522)
At 31 March 2020	224,542	236,920	461,462
Depreciation
At 1 April 2019	169,835	94,672	264,507
Charge for the year	33,610	44,589	78,199
Eliminated on disposal	-	(33,018)	(33,018)
At 31 March 2020	203,445	106,243	309,688
Carrying amount
At 31 March 2020	21,097	130,677	151,774
At 31 March 2019	12,678	149,567	162,245

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

13

Debtors

	Note	2020  £	2019  £
Trade debtors		1,647,370	1,925,406
Other debtors		73,333	25,238
Prepayments		105,854	63,163
Deferred tax assets	10	213,701	382,383
		2,040,258	2,396,190

14

Creditors

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	15	268,690	281,208
Trade creditors		14,464	24,404
Social security and other taxes		395,319	397,917
Outstanding defined contribution pension costs		76,134	40,289
Other creditors		825,290	891,929
Accrued expenses		28,729	64,817
Corporation tax liability	10	67,330	3,388
Deferred income		40,268	41,888
		1,716,224	1,745,840
Due after one year
Loans and borrowings	15	736,884	985,284

15

Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	227,965	218,604
Finance lease liabilities	40,725	62,604
	268,690	281,208

	2020 £	2019 £
Non-current loans and borrowings
Bank borrowings	723,011	950,533
Finance lease liabilities	13,873	34,751
	736,884	985,284

The bank loans are made up of three loans. The three loans are over a 5 year period repayable in instalments. The interest rate of the loans varies between 4.25% and 10.9%.

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £274,941 (2019 - £154,998).

Contributions totalling £76,134 (2019 - £40,289) were payable to the scheme at the end of the year and are included in creditors.

17

Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
A Ordinary shares of £0.50 each	1	0.50	1	0.50
B Ordinary shares of £0.50 each	1	0.50	1	0.50
C Ordinary shares of £0.50 each	1	0.50	1	0.50
D Ordinary shares of £0.50 each	1	0.50	1	0.50
E Ordinary shares of £0.50 each	1	0.50	1	0.50
F Ordinary shares of £0.50 each	1	0.50	1	0.50
G Ordinary shares of £0.50 each	1	0.50	1	0.50
H Ordinary shares of £0.50 each	1	0.50	1	0.50
	8	4	8	4

Rights, preferences and restrictions

The different classes of share referred to above carry separate rights to dividends but, in all other significant respects, rank pari passu.

18

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

	2020 £	2019 £
Not later than one year	40,725	62,604
Later than one year and not later than five years	13,873	34,751
	54,598	97,355

Operating leases

The total of future minimum lease payments is as follows:

	2020 £	2019 £
Not later than one year	357,825	376,879
Later than one year and not later than five years	525,019	701,503
Later than five years	19,055	57,479
	901,899	1,135,861

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Apex Prime Care Ltd

Notes to the Financial Statements for the Year Ended 31 March 2020

19

Dividends

	2020  £	2019  £
Dividends paid	500,000	415,000

20

Related party transactions

During the year the company advanced a loan of £50,000 to M S Patrick. Interest is charged on this loan at a rate of 4%, and there are no fixed repayment terms.

21

Parent and ultimate parent undertaking

The company is controlled by M S Patrick and E A Patrick, directors of the company.

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