Coate Water Care Company (Church View Nursing Home) Limited - Period Ending 2020-03-31

Registration number: 04952292

Coate Water Care Company (Church View Nursing Home) Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2020

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

Coate Water Care Company (Church View Nursing Home) Limited

Contents

Company Information	1
Strategic Report	2
Directors' Report	3
Statement of Directors' Responsibilities	4
Independent Auditor's Report	5 to 7
Profit and Loss Account	8
Balance Sheet	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 to 22

Coate Water Care Company (Church View Nursing Home) Limited

Company Information

Directors

C L Smith G F Smith J Smith N Smith

Company secretary

G F Smith

Registered office

3 Lancaster Mews South Marston Industrial Estate Swindon SN3 4YF

Bankers

National Westminster Bank PLC The Quadrangle The Promenade Cheltenham GL50 1PX

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

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Coate Water Care Company (Church View Nursing Home) Limited

Strategic Report for the Year Ended 31 March 2020

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

Fair review of the business

The results for the year, which are set out in the profit and loss account, show turnover for the year of £8,532,458 (2019 - £8,306,157) and operating profit of £1,812,132 (2019 - £1,741,488). At 31 March 2020, the company had net assets of £3,451,584 (2019 - £2,362,429). The directors consider that the financial position of the company at the year end is satisfactory.

Key performance indicators

Given the nature of the business, the company's directors are of the opinion that key performance indicators are important. The group uses a number of indicators to monitor and improve development and performance of the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. The directors do not consider the inclusion of an analysis, using key performance indicators, to be necessary to assist users of the financial statements in their understanding of the financial performance or the position of the company.

Principal risks and uncertainties

Details of principal risks and uncertainties, key performance indicators, financial instruments and future developments are considered similar to the group to which the company belong and are disclosed in the group financial statements of the parent company, Coate Water Care Company Limited.

Financial instruments

Objectives and policies

The directors constantly monitor 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 risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that price and liquidity risks are minimised by the predetermination of the company funding facilities and terms.

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 continues to trade profitably generating cash. The directors have prepared forecasts for the next 12 months that indicate that these trends will continue. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and has continued to adopt the going concern basis in preparing the financial statements.

Approved by the Board on 12 January 2021 and signed on its behalf by:

.........................................
G F Smith
Director

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Coate Water Care Company (Church View Nursing Home) Limited

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:

C L Smith

G F Smith

J Smith

N Smith

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.

Future developments

The external commercial environment is expected to remain competitive in the remainder of 2020. However, the directors remain confident that the company will improve its current level of performance in the future and will continue to trade as a going concern.

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.

Approved by the Board on 12 January 2021 and signed on its behalf by:

.........................................
G F Smith
Director

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Coate Water Care Company (Church View Nursing Home) Limited

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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Coate Water Care Company (Church View Nursing Home) Limited

Independent Auditor's Report to the Members of Coate Water Care Company (Church View Nursing Home) Limited

Opinion

We have audited the financial statements of Coate Water Care Company (Church View Nursing Home) Limited (the 'company') for the year ended 31 March 2020, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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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Coate Water Care Company (Church View Nursing Home) Limited

Independent Auditor's Report to the Members of Coate Water Care Company (Church View Nursing Home) Limited

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 4, 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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Coate Water Care Company (Church View Nursing Home) Limited

Independent Auditor's Report to the Members of Coate Water Care Company (Church View Nursing Home) Limited

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

12 January 2021

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Coate Water Care Company (Church View Nursing Home) Limited

Profit and Loss Account for the Year Ended 31 March 2020

	Note	2020  £	2019  £
Turnover	3	8,532,458	8,306,157
Cost of sales		(5,365,377)	(5,277,092)
Gross profit		3,167,081	3,029,065
Administrative expenses		(1,370,249)	(1,304,942)
Other operating income	4	15,300	17,365
Operating profit	5	1,812,132	1,741,488
Other interest receivable and similar income		1,330	2,851
Interest payable and similar charges	6	(263,509)	(260,790)
Profit before tax		1,549,953	1,483,549
Taxation	9	(325,198)	(300,788)
Profit for the financial year		1,224,755	1,182,761

Turnover and operating profit are derived wholly from continuing operations.

The company has no other comprehensive income for the year.

The notes on pages 11 to 22 form an integral part of these financial statements.
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Coate Water Care Company (Church View Nursing Home) Limited

(Registration number: 04952292)
Balance Sheet as at 31 March 2020

	Note	2020  £	2019  £
Fixed assets
Intangible assets	10	589,763	759,373
Tangible assets	11	12,667,681	10,126,651
		13,257,444	10,886,024
Current assets
Debtors	12	397,526	573,871
Cash at bank and in hand		75,382	74,614
		472,908	648,485
Creditors: Amounts falling due within one year	13	(1,848,400)	(1,743,841)
Net current liabilities		(1,375,492)	(1,095,356)
Total assets less current liabilities		11,881,952	9,790,668
Creditors: Amounts falling due after more than one year	13	(7,889,012)	(7,176,696)
Provisions for liabilities	9	(541,356)	(251,543)
Net assets		3,451,584	2,362,429
Capital and reserves
Called up share capital	15	1	1
Retained earnings		3,451,583	2,362,428
Total equity		3,451,584	2,362,429

Approved and authorised by the Board on 12 January 2021 and signed on its behalf by:
 

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

G F Smith
Director

The notes on pages 11 to 22 form an integral part of these financial statements.
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Coate Water Care Company (Church View Nursing Home) Limited

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

	Share capital £	Retained earnings £	Total £
At 1 April 2019	1	2,362,428	2,362,429
Profit for the year	-	1,224,755	1,224,755
Dividends	-	(135,600)	(135,600)
At 31 March 2020	1	3,451,583	3,451,584

	Share capital £	Retained earnings £	Total £
At 1 April 2018	1	1,315,515	1,315,516
Profit for the year	-	1,182,761	1,182,761
Dividends	-	(135,848)	(135,848)
At 31 March 2019	1	2,362,428	2,362,429

The notes on pages 11 to 22 form an integral part of these financial statements.
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Coate Water Care Company (Church View Nursing Home) Limited

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

1

General information

The company is a private company limited by shares and is incorporated and domiciled in England and Wales.

The address of its registered office is:
3 Lancaster Mews
South Marston Industrial Estate
Swindon
SN3 4YF

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.

Summary of disclosure exemptions

The company has not presented a cash flow statement on the grounds that the company is a wholly owned subsidiary and a group cash flow statement is included in the financial statements of ultimate parent company.

Name of parent of group

These financial statements are consolidated in the financial statements of Coate Water Care Company Limited.

The financial statements of Coate Water Care Company Limited may be obtained from the company's registered office.

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.

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Coate Water Care Company (Church View Nursing Home) Limited

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

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.

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
Freehold buildings	1% on cost
Fixtures and fittings	25% reducing balance

Freehold land is not depreciated.

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.

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Coate Water Care Company (Church View Nursing Home) Limited

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

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	10 years 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 debtors are repayable within one year and are hence included at the undiscounted amount of the 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 receivables.

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.

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Coate Water Care Company (Church View Nursing Home) Limited

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

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

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Coate Water Care Company (Church View Nursing Home) Limited

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

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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Coate Water Care Company (Church View Nursing Home) Limited

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

3

Revenue

The total turnover for the year has been derived from its principal activity, care services, wholly undertaken in the United Kingdom.

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

	2020  £	2019  £
Rental income	5,172	7,253
Miscellaneous other operating income	10,128	10,112
	15,300	17,365

5

Operating profit

Arrived at after charging

	2020  £	2019  £
Depreciation expense	231,243	239,615
Amortisation expense	169,610	169,608
Operating lease expense - property	48,543	49,404

6

Interest payable and similar expenses

	2020  £	2019  £
Interest on bank overdrafts and borrowings	260,835	245,550
Interest on obligations under finance leases and hire purchase contracts	2,674	5,168
Interest expense on amounts owed to group undertakings	-	10,072
	263,509	260,790

7

Staff costs

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

	2020  £	2019  £
Wages and salaries	4,078,180	3,736,434
Social security costs	275,719	462,456
Pension costs, defined contribution scheme	63,188	41,730
	4,417,087	4,240,620

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

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Coate Water Care Company (Church View Nursing Home) Limited

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

	2020  No.	2019  No.
Administration staff	7	8
Care staff	255	253
	262	261

8

Auditors' remuneration

	2020 £	2019 £
Audit of the financial statements	7,440	7,000
Other fees to auditors
Other non-audit services	2,500	2,500

9

Taxation

Tax charged/(credited) in the profit and loss account

	2020  £	2019  £
Current taxation
UK corporation tax	100,304	280,225
UK corporation tax adjustment to prior periods	(64,919)	(4,167)
	35,385	276,058
Deferred taxation
Arising from origination and reversal of timing differences	289,813	24,730
Tax expense in the income statement	325,198	300,788

The tax on profit before tax for the year is higher 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	1,549,953	1,483,549
Corporation tax at standard rate	294,491	281,874
Adjustment for prior period	(64,919)	(4,167)
Differences between depreciation and capital allowances	95,626	23,081
Total tax charge	325,198	300,788

Deferred tax

Deferred tax assets and liabilities

2020	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	541,356

- 17 -

Coate Water Care Company (Church View Nursing Home) Limited

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

2019	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	251,543

- 18 -

Coate Water Care Company (Church View Nursing Home) Limited

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

10

Intangible assets

	Goodwill  £
Cost
At 1 April 2019 and at 31 March 2020	1,696,117
Amortisation
At 1 April 2019	936,744
Amortisation charge	169,610
At 31 March 2020	1,106,354
Carrying amount
At 31 March 2020	589,763
At 31 March 2019	759,373

11

Tangible assets

	Freehold land and buildings £	Fixtures and fittings  £	Total £
Cost
At 1 April 2019	10,162,230	2,032,125	12,194,355
Additions	2,721,297	50,976	2,772,273
At 31 March 2020	12,883,527	2,083,101	14,966,628
Depreciation
At 1 April 2019	561,808	1,505,896	2,067,704
Charge for the year	88,791	142,452	231,243
At 31 March 2020	650,599	1,648,348	2,298,947
Carrying amount
At 31 March 2020	12,232,928	434,753	12,667,681
At 31 March 2019	9,600,422	526,229	10,126,651

Freehold land of £1,777,228 (2019 - £1,777,228) is not depreciated.

Leased assets
Included within the net book value of tangible fixed assets is £26,890 (2019 - £35,854) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £8,963 (2019 - £11,951).

12

Debtors

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Coate Water Care Company (Church View Nursing Home) Limited

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

	2020  £	2019  £
Trade debtors	139,080	462,819
Other debtors	7,628	11,347
Prepayments	127,292	99,705
Corporation tax asset	123,526	-
	397,526	573,871

13

Creditors

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	14	543,339	496,736
Trade creditors		400,425	326,083
Other creditors		163,157	171,939
Accruals and deferred income		462,327	468,858
Corporation tax liability		-	280,225
Amounts owed to group undertakings		279,152	-
		1,848,400	1,743,841
Due after one year
Loans and borrowings	14	7,889,012	7,105,545
Amounts owed to group undertakings		-	71,151
		7,889,012	7,176,696

14

Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	543,339	483,339
Finance lease liabilities	-	13,397
	543,339	496,736

	2020 £	2019 £
Non-current loans and borrowings
Bank borrowings	7,889,012	7,105,545

Bank borrowings

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Coate Water Care Company (Church View Nursing Home) Limited

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

The company has five term loans in place. The first two were loans of £4,950,000 and £2,625,000 commencing in June 2014, which are being repaid in 28 quarterly instalments. Interest is charged at 2.28% above LIBOR on these loans. The balances outstanding at 31 March 2020 were £3,315,000 and £2,037,829 (2019 - £3,570,000 and £2,175,987). The third loan was a £2,200,000 term loan commencing in September 2014 and is being repaid in 80 quarterly instalments. Interest is charged at 2.28% above LIBOR. The balance outstanding at 31 March 2020 is £1,751,790 (2019 - £1,842,897). The fourth loan of £1,100,000 is being repaid over a 5 year term with interest charged at 3% above Base Rate, and with a balance at 31 March 2020 of £1,062,732. The fifth loan of £300,000 is being repaid of 60 months with interest charged at 6.9%, and with a balance at 31 March 2020 of £265,000.

Included in the loans and borrowings are the following amounts due after more than five years:

	2020  £	2019  £
After more than five years by instalments	4,687,922	5,172,187

	-	-

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Coate Water Care Company (Church View Nursing Home) Limited

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

15

Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary shares of £1 each	1	1	1	1

16

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	-	13,397
	-	13,397

17

Contingent liabilities

The company is bound by an intra-group cross guarantee in respect of bank debt with other members of the group headed by its ultimate parent undertaking, Coate Water Care Company Limited. The amount guaranteed is £15,689,756 (2019 - £10,449,137).

18

Control

The company is controlled by Coate Water Care Company Limited, a company registered in England and Wales, which is jointly controlled by Mr C and Mrs G Smith.

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