Cwm Gwendraeth Limited - Period Ending 2020-03-31

Registration number: 10418650

Prepared for the registrar

Cwm Gwendraeth Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2020

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

Cwm Gwendraeth Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Cwm Gwendraeth Limited

Company Information

Directors

P R Hainsworth P Lewis

Registered office

Chestnut House Tawe Business Village Swansea Enterprise Park Swansea West Glamorgan SA7 9LA

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

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Cwm Gwendraeth Limited

(Registration number: 10418650)
Balance Sheet as at 31 March 2020

	Note	31 March 2020  £ 000	31 March 2019  £ 000
Fixed assets
Tangible assets	4	196	201
Current assets
Stocks	5	21	-
Debtors	6	1,210	676
Cash at bank and in hand		121	497
		1,352	1,173
Creditors: Amounts falling due within one year	7	(1,203)	(1,285)
Net current assets/(liabilities)		149	(112)
Net assets		345	89
Capital and reserves
Called up share capital		-	-
Profit and loss account		345	89
Total equity		345	89

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 26 November 2020 and signed on its behalf by:
 

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

P R Hainsworth
Director

The notes on pages 3 to 9 form an integral part of these financial statements.
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Cwm Gwendraeth Limited

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:
Chestnut House
Tawe Business Village
Swansea Enterprise Park
Swansea
West Glamorgan
SA7 9LA

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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.

Name of parent of group

These financial statements are consolidated in the financial statements of TLC Care Holdings Limited.

The financial statements of TLC Care Holdings Limited may be obtained from Companies House.

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 estimated 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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Cwm Gwendraeth Limited

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
Furniture and fittings	10% straight line
Office equipment	25% straight line

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.

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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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Cwm Gwendraeth Limited

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

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.

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.

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.

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.

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.

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Cwm Gwendraeth Limited

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

Financial instruments (continued)

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.

3

Staff numbers

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

	Year ended 31 March 2020  No.	1 January 2018 to 31 March 2019  No.
Average number of employees	151	106

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Cwm Gwendraeth Limited

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

4

Tangible assets

	Furniture and fittings  £ 000	Office equipment  £ 000	Total £ 000
Cost
At 1 April 2019	174	30	204
Additions	4	24	28
At 31 March 2020	178	54	232
Depreciation
At 1 April 2019	2	1	3
Charge for the year	20	13	33
At 31 March 2020	22	14	36
Carrying amount
At 31 March 2020	156	40	196
At 31 March 2019	172	29	201

5

Stocks

	31 March 2020  £ 000	31 March 2019  £ 000
Raw materials and consumables	21	-

6

Debtors

	31 March 2020  £ 000	31 March 2019  £ 000
Trade debtors	122	126
Amounts owed by group undertakings	1,042	509
Other debtors	30	-
Prepayments	16	41
	1,210	676

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Cwm Gwendraeth Limited

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

7

Creditors

	31 March 2020  £ 000	31 March 2019  £ 000
Due within one year
Trade creditors	259	116
Amounts due to group undertakings	570	743
Social security and other taxes	84	65
Outstanding defined contribution pension costs	18	22
Other creditors	221	146
Accrued expenses	53	89
Corporation tax liability	(2)	104
	1,203	1,285

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Cwm Gwendraeth Limited

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

8

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2020  £ 000	2019  £ 000
Not later than one year	843	843
Later than one year and not later than five years	2,529	2,529
Later than five years	4,182	5,020
	7,554	8,393

9

Parent and ultimate parent undertaking

The company's immediate parent company is Fieldbay Bidco Limited, incorporated in England and Wales, and the ultimate parent company is Specialist Healthcare Operations Limited, incorporated in the Isle Of Man.

There is considered to be no single ultimate controlling party.

10

Non adjusting events after the financial period

After the year end, the company provides a guarantee over the loan in a related group company of £7,500,000.

11

Disclosure under Section 444(5B) CA 2006 relating to the independent auditor's report

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. Accordingly, the Independent Auditors’ Report has also been omitted.

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 26 November 2020 was Simon Worsley, who signed for and on behalf of Hazlewoods LLP.

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