CHD Living Ltd - Limited company accounts 20.1

IRIS Accounts Productionv20.3.4.111204260director31.3.201.2.1931.3.2031.3.20truetruefalsetruetruefalsefalsetruefalseOrdinary0346 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure112042602019-01-31112042602020-03-31112042602019-02-012020-03-31112042602018-02-12112042602018-02-132019-01-31112042602019-01-3111204260ns16:EnglandWales2019-02-012020-03-3111204260ns15:PoundSterling2019-02-012020-03-3111204260ns11:Director12019-02-012020-03-3111204260ns11:Consolidated2020-03-3111204260ns11:ConsolidatedGroupCompanyAccounts2019-02-012020-03-3111204260ns11:PrivateLimitedCompanyLtd2019-02-012020-03-3111204260ns11:FRS102ns11:Consolidated2019-02-012020-03-3111204260ns11:Consolidatedns11:Audited2019-02-012020-03-3111204260ns11:Consolidatedns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2019-02-012020-03-3111204260ns11:LargeMedium-sizedCompaniesRegimeForAccountsns11:Consolidated2019-02-012020-03-3111204260ns11:FullAccounts2019-02-012020-03-3111204260ns11:OrdinaryShareClass12019-02-012020-03-3111204260ns11:Consolidated2019-02-012020-03-3111204260ns11:RegisteredOffice2019-02-012020-03-3111204260ns11:Consolidated2018-02-132019-01-3111204260ns6:CurrentFinancialInstruments2020-03-3111204260ns6:CurrentFinancialInstruments2019-01-3111204260ns6:Non-currentFinancialInstruments2020-03-3111204260ns6:Non-currentFinancialInstruments2019-01-3111204260ns6:ShareCapital2020-03-3111204260ns6:ShareCapital2019-01-3111204260ns6:SharePremium2020-03-3111204260ns6:SharePremium2019-01-3111204260ns6:RetainedEarningsAccumulatedLosses2020-03-3111204260ns6:RetainedEarningsAccumulatedLosses2019-01-3111204260ns6:ShareCapital2018-02-132019-01-3111204260ns6:SharePremium2018-02-132019-01-3111204260ns6:ShareCapital2019-02-012020-03-3111204260ns6:SharePremium2019-02-012020-03-3111204260ns6:RetainedEarningsAccumulatedLosses2019-02-012020-03-3111204260ns6:FurnitureFittings2019-02-012020-03-3111204260ns6:MotorVehicles2019-02-012020-03-3111204260ns6:FurnitureFittings2020-03-3111204260ns6:MotorVehicles2020-03-3111204260ns6:AdditionsToInvestments2020-03-3111204260ns6:CostValuation2020-03-3111204260ns6:CurrentFinancialInstrumentsns6:WithinOneYear2020-03-3111204260ns6:CurrentFinancialInstrumentsns6:WithinOneYear2019-01-3111204260ns6:BetweenOneTwoYearsns6:Non-currentFinancialInstruments2020-03-3111204260ns6:BetweenOneTwoYearsns6:Non-currentFinancialInstruments2019-01-3111204260ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2020-03-3111204260ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2019-01-3111204260ns6:Secured2020-03-3111204260ns6:Secured2019-01-3111204260ns11:OrdinaryShareClass12020-03-31

REGISTERED NUMBER: 11204260 (England and Wales)

CHD LIVING LTD

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD 1 FEBRUARY 2019 TO 31 MARCH 2020

Page

Company Information

Group Strategic Report

Report of the Director

Report of the Independent Auditors

Consolidated Income Statement

Consolidated Other Comprehensive Income

Consolidated Balance Sheet

Company Balance Sheet

Consolidated Statement of Changes in Equity

Company Statement of Changes in Equity

Consolidated Cash Flow Statement

Notes to the Consolidated Cash Flow Statement

Notes to the Consolidated Financial Statements

DIRECTOR:

Mr L Hasham

REGISTERED OFFICE:

Capital House

106 Meadrow

Godalming

Surrey

GU7 3HY

REGISTERED NUMBER:

11204260 (England and Wales)

AUDITORS:

Rothmans Audit LLP

Statutory Auditors

Chartered Accountants

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

The director presents his strategic report of the company and the group for the period 1 February 2019 to 31 March 2020.

FREQUENCY OF REPORTING

The group's year end was extended from 31 January 2020 to 31 March 2020. The prior period was dormant.

REVIEW OF BUSINESS

The group was formed by the incorporation of associated partnerships and existing companies.

The director is satisfied with the performance of the group given the challenging economic conditions in the UK and the national austerity measures, resulting in a contraction of referral rates into such services. The care homes continue to provide qualitative services as verified by independent regulatory authority checks.

Turnover for the period ended 31 March 2020 totalled £26,369,018 with a profit before taxation of £4,029,653. Net assets for the period ended 31 March 2020 totalled £19,078,419.

CORONAVIRUS PANDEMIC

As at the date of signing, the director has performed a thorough review of the impact on the Group of the coronavirus outbreak. There are key challenges facing the industry during this time, including keeping staff and residents safe, managing staff absences, managing the supply chain and continually changing policies in line with latest guidance.This includes implementing a group policy to restrict visitations across all of the homes during this time.

The Group has reviewed the potential impacts of the Coronavirus and how the business can react in terms of staffing, residents, suppliers, payments terms, banking support and cashflow. Taking into account these different factors the business is in a good position to deal with the issues as they arise, and is continually reviewing the risks on an on-going basis, reacting with additional measures as required.

FUTURE DEVELOPMENTS

The director considers that the programme of capital expansion, combined with identifying new care markets, will result in an increase in future profitability. Management policies will continue to be reviewed in the light of changing trading conditions.

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks and uncertainties relate to the current economic climate and possible cut backs by the referring agencies in terms of care purchasing. The group has taken measures to refine its services provision and reconfigure its care categories with a view to targeting new sustainable income streams.

FINANCIAL RISK MANAGEMENT

The group recognises the potential of financial risks given the current economic climates and is active in managing such risks.

LIQUIDITY RISKS

The director recognises the importance of funding and liquidity under the current economic climate and will continue to monitor the group's financial resources to ensure that the group is able to support its activities and future growth.

INTEREST RATE AND CASH FLOW RISKS

The group has interest bearing liabilities such as bank loans which attracts interest at variable rates above LIBOR. The group manages the liquidity risk by ensuring there are sufficient funds to meet amounts due.

EMPLOYEES

With the key responsibility of providing residents with a quality level of care, our employees are fundamental to our success. Our employee satisfaction is monitored through employee engagements, and employees are involved in matters affecting their functions, see page 3 for further details.

ON BEHALF OF THE BOARD:

Mr L Hasham - Director

18 March 2021

The director presents his report with the financial statements of the company and the group for the period 1 February 2019 to 31 March 2020.

DIVIDENDS

The total distribution of dividends for the period ended 31 March 2020 will be £400,000.

DIRECTOR

Mr L Hasham held office during the whole of the period from 1 February 2019 to the date of this report.

EMPLOYEES

It is the Group's policy to involve all employees in matters affecting their functions. This takes place through staff council where management consult with staff representatives and through a team briefing system to keep all employees updated on key Group business issues.

Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Group continues and that appropriate training is arranged. It is the policy of the Group that the training, career development and promotion be identical for all employees.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Rothmans Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr L Hasham - Director

18 March 2021

Opinion

We have audited the financial statements of CHD Living Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2020 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2020 and of the group's profit for the period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Other matter

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

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

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

The comparative financial information for the period ending 31 January 2019 are unaudited.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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

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

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

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

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Other matter

The comparative financial information for the period ending 31 January 2019 are unaudited.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Liz Martyn ACA (Senior Statutory Auditor)

for and on behalf of Rothmans Audit LLP

Statutory Auditors

Chartered Accountants

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

23 March 2021

TURNOVER

26,369,018

Cost of sales

17,449,574

GROSS PROFIT

8,919,444

Administrative expenses

4,340,695

4,578,749

Other operating income

13,918

OPERATING PROFIT

4,592,667

Interest receivable and similar income

7,206

4,599,873

Interest payable and similar expenses

570,220

PROFIT BEFORE TAXATION

4,029,653

Tax on profit

704,841

PROFIT FOR THE FINANCIAL PERIOD

3,324,812

Profit attributable to:

Owners of the parent

3,324,812

PROFIT FOR THE PERIOD

3,324,812

OTHER COMPREHENSIVE INCOME

TOTAL COMPREHENSIVE INCOME FOR

THE PERIOD

3,324,812

Total comprehensive income attributable to:

Owners of the parent

3,324,812

FIXED ASSETS

Tangible assets

49,593,331

Investments

49,593,331

CURRENT ASSETS

Debtors

2,404,342

Cash at bank and in hand

1,898,560

4,302,902

CREDITORS

Amounts falling due within one year

12,565,691

NET CURRENT (LIABILITIES)/ASSETS

(8,262,789

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

41,330,542

CREDITORS

Amounts falling due after more than one

year

(20,692,662

)

PROVISIONS FOR LIABILITIES

(1,439,111

)

NET ASSETS

19,198,769

CAPITAL AND RESERVES

Called up share capital

Other reserve

16,273,917

Retained earnings

2,924,812

SHAREHOLDERS' FUNDS

19,198,769

The financial statements were approved by the director and authorised for issue on 18 March 2021 and were signed by:

Mr L Hasham - Director

FIXED ASSETS

Tangible assets

12,522

Investments

16,273,957

16,286,479

CURRENT ASSETS

Debtors

20,717,310

Cash at bank and in hand

1,635,043

22,352,353

CREDITORS

Amounts falling due within one year

1,541,828

NET CURRENT ASSETS

20,810,525

TOTAL ASSETS LESS CURRENT

LIABILITIES

37,097,004

CREDITORS

Amounts falling due after more than one

year

20,628,198

NET ASSETS

16,468,806

CAPITAL AND RESERVES

Called up share capital

Other reserve

16,273,917

Retained earnings

194,849

SHAREHOLDERS' FUNDS

16,468,806

Company's profit for the financial year

594,849

The financial statements were approved by the director and authorised for issue on 18 March 2021 and were signed by:

Mr L Hasham - Director

Called up

Retained

Other

Total

capital

earnings

reserve

equity

Changes in equity

Issue of share capital

Balance at 31 January 2019

Changes in equity

Issue of share capital

16,273,917

16,273,953

Dividends

(400,000

)

(400,000

)

Total comprehensive income

3,324,812

Balance at 31 March 2020

2,924,812

16,273,917

19,198,769

Called up

Retained

Other

Total

capital

earnings

reserve

equity

Changes in equity

Issue of share capital

Balance at 31 January 2019

Changes in equity

Issue of share capital

16,273,917

16,273,953

Dividends

(400,000

)

(400,000

)

Total comprehensive income

594,849

Balance at 31 March 2020

194,849

16,273,917

16,468,806

Cash flows from operating activities

Cash generated from operations

3,507,044

Interest paid

(563,688

)

Interest element of hire purchase payments

paid

(6,532

)

Tax paid

(363,557

)

Net cash from operating activities

2,573,267

Cash flows from investing activities

Purchase of tangible fixed assets

(352,802

)

Cash and bank at acquisition

2,715,390

Interest received

7,206

Net cash from investing activities

2,369,794

Cash flows from financing activities

New loans in year

20,802,198

Loan repayments in year

(18,742,526

)

Refinancing costs

(174,000

)

Capital repayments in year

(49,461

)

Share issue

Inter-company payments

(4,880,716

)

Net cash from financing activities

(3,044,505

)

Increase in cash and cash equivalents

1,898,556

Cash and cash equivalents at beginning

of period

Cash and cash equivalents at end of

period

1,898,560

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

Period

1/2/19

13/2/18

31/3/20

31/1/19

Profit before taxation

4,029,653

Depreciation charges

545,224

Finance costs

570,220

Finance income

(7,206

)

5,137,891

Decrease in trade and other debtors

3,876,939

Decrease in trade and other creditors

(5,507,786

)

Cash generated from operations

3,507,044

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 March 2020

31/3/20

1/2/19

Cash and cash equivalents

1,898,560

Period ended 31 January 2019

31/1/19

13/2/18

Cash and cash equivalents

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

Other

non-cash

At 1/2/19

Cash flow

acquisition

changes

At 31/3/20

Net cash

Cash at bank

and in hand

(816,834

)

2,715,390

1,898,560

(816,834

)

2,715,390

1,898,560

Debt

Finance leases

(47,962

)

(38,320

)

(86,282

)

Debts falling due

after 1 year

(1,885,672

)

(18,742,526

)

(20,628,198

)

(1,933,634

)

(18,742,526

)

(38,320

)

(20,714,480

)

Total

(2,750,468

)

(16,027,136

)

(38,320

)

(18,815,920

)

1.	STATUTORY INFORMATION

CHD Living Ltd was incorporated on 13 February 2018 under the Companies Act 2006, as a private limited company and is registered in England and Wales. The company is a holding company, the group's principal activity is that of residential care and home care facilities. The address of its registered office is Capital House, 106 Meadrow, Godalming, Surrey, United Kingdom, GU7 3HY.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency is £ sterling.

Financial Reporting Standard 102 - reduced disclosure exemptions

The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);

the requirements of Section 7 Statement of Cash Flows;

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f),

11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method. The results of companies acquired or disposed of are included in the consolidated income statement after or up to the date that control passes respectively. As a consolidated group income statement is published, a separate income statement for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

Related party disclosures

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities with have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of assets

Management use their judgement to determine if there are any indicators of impairment.

Leases

A lease that does not transfer substantially all of the risks and rewards of ownership has been classified

as an operating lease and is therefore not included in the statement of financial position.

Other key sources of estimation uncertainty

Tangible fixed assets

Management estimate the useful life and residual value of tangible assets based on market information

and their knowledge of the business, the remaining life of the asset and projected disposal value.

Turnover

Turnover is generated from the provision of residential care services and homecare nursing services.

Turnover is recognised when care services are provided and is adjusted for accrued and deferred income where necessary.

Turnover is exempt from value added tax.

Tangible fixed assets

All fixed assets are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

The cost of fixed assets initially recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management.

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

Fixtures and fittings

25% on reducing balance

Motor vehicles

25% on reducing balance

Computer equipment

25% on reducing balance

Plant and machinery

25% on reducing balance

No depreciation is provided on freehold property as any depreciation charged would be immaterial to the financial statements. Depreciation would be immaterial due to the high residual values of the assets which are ensured by a programme of repair and refurbishment (the cost of which is charged to the income statement.)

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the income statement.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar

debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the income statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Finance costs

Finance costs are charged to the income statement over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Investments

Investments in subsidiaries are stated at cost less provision for impairment.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets held under hire purchase agreements are capitalised in the balance sheet and are depreciated over their estimated useful lives. The capital element of the future payments is treated as a liability and the interest is charged to the income statement on a straight line basis. Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate.

TURNOVER

The turnover and profits before taxation are attributable to two principal activities of the group and all arose in the United Kingdom.

The turnover is generated from the provision of residential care services and homecare nursing services.

4.	EMPLOYEES AND DIRECTORS

Period

1/2/19

13/2/18

31/3/20

31/1/19

Wages and salaries

8,780,403

Social security costs

747,335

Other pension costs

159,898

9,687,636

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

Period

1/2/19

13/2/18

31/3/20

31/1/19

Carers/Ancillary Staff

309

Managers/Administrators

346

Period

1/2/19

13/2/18

31/3/20

31/1/19

Director's remuneration

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1/2/19 to

31/3/20

Period

1/4/18 to

31/1/19

Depreciation owned assets

514,933

Depreciation - assets on hire purchase agreements

30,291

Auditors' remuneration

30,250

Operating lease costs

71,227

Hire of plant and machinery

40,612

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1/2/19

13/2/18

31/3/20

31/1/19

Bank interest

2,583

Bank loan interest

561,105

Hire purchase and finance lease charges

6,532

570,220

TAXATION

Analysis of the tax charge

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

Period

1/2/19

13/2/18

31/3/20

31/1/19

Current tax:

UK Corporation tax

648,020

Deferred tax

56,821

Tax on profit

704,841

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is higher than th standard rate of corporation tax in the UK. The difference is explained below:

Period

1/2/19

31/3/20

Profit before tax

4,029,653

Profit multiplied by the standard rate of corporation tax in the UK of 19%

765,634

Effects of:

Unprovided deferred tax

(60,793

)

Total tax charge

704,841

8.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

DIVIDENDS

Period

1/2/19

13/2/18

31/3/20

31/1/19

Ordinary shares of £1 each

Interim

400,000

10.	TANGIBLE FIXED ASSETS

Group

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

COST

Additions

48,117,121

989,925

854,612

176,897

50,138,555

At 31 March 2020

48,117,121

989,925

854,612

176,897

50,138,555

DEPRECIATION

Charge for period

279,919

222,303

43,002

545,224

At 31 March 2020

279,919

222,303

43,002

545,224

NET BOOK VALUE

At 31 March 2020

48,117,121

710,006

632,309

133,895

49,593,331

The total net book value of the freehold properties are secured against the group's bank loan.

Held within motor vehicles are assets on hire purchase with a net book value of £91,008.

Company

Fixtures

and

Motor

fittings

vehicles

Totals

COST

Additions

7,991

5,500

13,491

At 31 March 2020

7,991

5,500

13,491

DEPRECIATION

Charge for period

877

969

At 31 March 2020

877

969

NET BOOK VALUE

At 31 March 2020

7,114

5,408

12,522

11.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

COST

Additions

16,273,957

At 31 March 2020

16,273,957

NET BOOK VALUE

At 31 March 2020

16,273,957

The principal undertakings in which the Company had an interest at the year end are as follows:

Subsidiary undertakings

Class of

capital held

Proportion

of share

capital

held

Nature of business

The Summers Care Centre Ltd

Ordinary

100%

Residential nursing care facilities

Surbiton Care Centre Ltd

Ordinary

100%

Residential nursing care facilities

Longdene Homecare Limited

Ordinary

100%

Homecare nursing facilities

Crest Lodge Care Centre Limited

Ordinary

100%

Residential nursing care facilities

Bagshot Rehab Centre Limited

Ordinary

100%

Residential nursing care facilities

Whitegates Care Centre Limited

Ordinary

100%

Residential nursing care facilities

The Pavilion Care Centre Limited

Ordinary

100%

Residential nursing care facilities

St Catherine's Care Centre Limited

Ordinary

100%

Residential nursing care facilities

Sublex Limited

Ordinary

100%

Holding company

Abbey Chase Residential and Nursing

Homes Limited*

Ordinary

100%

Residential nursing care facilities

* - subsidiaries indirectly held by CHD Living Ltd

All of the above companies are incorporated in England and Wales, and their registered office is Capital House 106 Meadrow, Godalming, Surrey, United Kingdom, GU7 3HY

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2020

2019

2020

2019

Trade debtors

897,868

Amounts owed by group undertakings

20,527,548

Other debtors

1,340,763

189,367

Prepayments and accrued income

165,711

395

2,404,342

20,717,310

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2020

2019

2020

2019

Hire purchase contracts (see note 16)

21,818

Trade creditors

1,596,295

170,189

Amounts owed to group undertakings

9,519,284

1,241,553

Corporation tax

684,027

Social security and other taxes

146,445

75,617

Other creditors

264,793

18,756

Accruals and deferred income

333,029

35,713

12,565,691

1,541,828

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group

Company

2020

2019

2020

2019

Bank loans (see note 15)

20,628,198

Hire purchase contracts (see note 16)

64,464

20,692,662

20,628,198

15.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2020

2019

2020

2019

Amounts falling due between one and two

years:

Bank loans - 1-2 years

1,589,723

Amounts falling due between two and five

years:

Bank loans

19,038,475

Bank loans and facilities

During the year the Company received two loans from Barclays Bank PLC, a term loan and a capex facility.

The term loan of £19,500,000 has quarterly repayments of £286,765. The remaining balance is due for repayment in full by March 2024.

The capex facility has a maximum drawdown balance of £2,250,000 and the balance outstanding as at 31 March 2020 is £1,362,944. The facility is due for repayment in full by February 2022.

The bank loan and facilities are secured by a floating charge over all the assets of CHD Living Ltd, and are guaranteed by other group companies and their respective properties.

The bank facilities bear interest at a variable interest rate between 1.75% and 2.20% per annum plus LIBOR, charged monthly.

16.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase contracts

2020

2019

Net obligations repayable:

Within one year

21,818

Between one and five years

64,464

86,282

Group

Non-cancellable

operating leases

2020

2019

Within one year

64,289

Between one and five years

147,079

211,368

17.	SECURED DEBTS

The following secured debts are included within creditors:

Group

Company

2020

2019

2020

2019

Bank loans

20,628,198

Hire purchase contracts

86,282

20,714,480

20,628,198

The bank loan and facilities are secured by a floating charge over all the assets of CHD Living Ltd, and are guaranteed by other group companies and their respective properties.

The hire purchase contracts are secured over the assets to which they relate.

18.	FINANCIAL ASSETS AND LIABILITIES

2020

2019

Group

Financial assets measured at amortised cost

4,137,191

Financial liabilities measured at amortised cost

32,094,952

Financial assets measured at amortised cost comprise cash, trade debtors and other debtors.

Financial liabilities measured at amortised cost comprise hire purchase liabilities, trade creditors, loans, amounts owed to group undertakings and other creditors.

19.	PROVISIONS FOR LIABILITIES

Group

2020

2019

Deferred tax

1,439,111

Group

Deferred tax

Charge to Income Statement during period

56,821

Acquired in the period

1,382,290

Balance at 31 March 2020

1,439,111

2020

Accelerated capital allowances

115,944

Property

1,323,167

1,439,111

20.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

Ordinary

£1

During the year 36 Ordinary £1 shares were issued. See note 21 for more details.

The shares rank equally in respect of voting rights and any dividend declared, and shall entitle the holder to full participation in respect of the entity and in the event of winding up the company.

21.

RESERVES

Group

Retained

Other

earnings

reserve

Totals

Profit for the period

3,324,812

Dividends

(400,000

)

(400,000

)

Share issue

16,273,917

At 31 March 2020

2,924,812

16,273,917

19,198,729

Company

Retained

Other

earnings

reserve

Totals

Profit for the period

594,849

Dividends

(400,000

)

(400,000

)

Share issue

16,273,917

At 31 March 2020

194,849

16,273,917

16,468,766

40 Ordinary shares of £1 each were issued on the 6 February as part of the consideration of the purchase of The Summers Care Centre Ltd, Surbiton Care Centre Ltd, Longdene Homecare Limited, Sublex Limited, Crest Lodge Care Centre Limited, Bagshot Rehab Centre Limited, Whitegates Care Centre Limited, The Pavilion Care Centre Limited, St Catherine's Care Centre Limited, which also resulted in the recognition of the £16,273,917 other reserve.

22.	RELATED PARTY DISCLOSURES

During the period services totalling £44,096 were provided to the company by a close family member. At the 31 March 2020 the amount due was £nil.

During the period rent of £84,000 was paid for the leasing of a property owned by the shareholders.

Associated entities which have common control with the group have outstanding balances at the period end. At the period end there is £21,085 included within other creditors and £1,146,056 included in other debtors.

23.	ULTIMATE CONTROLLING PARTY

The company's immediate parent undertaking and the ultimate parent undertaking is CHD Surrey Ltd, a company incorporated in England and Wales. The ultimate control of that company is exercised by its shareholders. The director does not consider any one party to have ultimate control of the company.

24.	ACQUISITIONS

On 6 February 2019 CHD Living Ltd purchased 100% of the following companies:

The Summers Care Centre Ltd

Surbiton Care Centre Ltd

Longdene Homecare Limited

Sublex Limited

Abbey Chase Residential and Nursing Home Limited

Crest Lodge Care Centre Limited

Bagshot Rehab Centre Limited

Whitegates Care Centre Limited

The Pavilion Care Centre limited

St Catherine's Care Centre Limited

In calculating the goodwill arising on acquisition, the fair value of the net assets of the above companies have been assessed and summarised in the following table:

Book value

Fair value

adjustment

Fair value

Fixed assets

42,706,981

7,040,412

49,747,393

Current assets

4,563,254

Cash at bank

2,715,390

Creditors

(39,441,805

)

(1,310,315

)

(40,752,120

)

Net assets acquired

10,543,820

5,730,097

16,273,917

Consideration

Fair value of shares

16,273,917

Net assets acquired

(16,273,917

)

Goodwill arising

In the period ending 31 March 2020, turnover of £26,369,018 and profit before tax of £5,834,801 was in the consolidated income statement in respect of the above companies.