Alina Homecare Specialist Care Limited - Period Ending 2020-04-30

Registration number: 05705303

Alina Homecare Specialist Care Limited

Annual Report and Financial Statements

for the Year Ended 30 April 2020

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

Alina Homecare Specialist Care Limited

Contents

Company Information	1
Directors' Report	2 to 3
Strategic Report	4
Statement of Directors' Responsibilities	5
Independent Auditor's Report	6 to 8
Profit and Loss Account	9
Balance Sheet	10
Statement of Changes in Equity	11
Notes to the Financial Statements	12 to 22

Alina Homecare Specialist Care Limited

Company Information

Directors

J R Deeley K F Ford F A Kee P J Steadman

Company secretary

P J Steadman

Registered office

Manor House Church Street Leatherhead Surrey KT22 8DN

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

- 1 -

Alina Homecare Specialist Care Limited

Directors' Report for the Year Ended 30 April 2020

The directors present their report and the financial statements for the year ended 30 April 2020.

Directors of the company

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

J R Deeley

K F Ford

F A Kee

P J Steadman

Financial instruments

Objectives and policies

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

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

The company is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through credit control procedures.

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

Employment of disabled persons

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

Employee involvement

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

Future developments

The external environment is expected to remain competitive going forward, however the directors remain confident that the company will improve on its current level of performance in the future.

Disclosure of information to the auditors

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

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

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Alina Homecare Specialist Care Limited

Directors' Report for the Year Ended 30 April 2020

Approved by the Board on 6 August 2020 and signed on its behalf by:

.........................................
P J Steadman
Director

- 3 -

Alina Homecare Specialist Care Limited

Strategic Report for the Year Ended 30 April 2020

The directors present their strategic report for the year ended 30 April 2020.

Principal activity

The principal activity of the company is care services.

Fair review of the business

The results for the year, which are set out in the profit and loss account, show turnover of £14,751,280 (2019 - £11,023,394) and an operating profit of £737,173 (2019 - £40,315). At 30 April 2020, the company had net assets of £2,185,297 (2019 - £1,413,526). The directors consider the performance for the year and the financial position at the year end to be satisfactory.

Given the nature of the business, the directors are of the opinion that key performance indicators are important. The company uses a number of indicators to monitor and improve 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 position of the company.

Principal risks and uncertainties

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

Approved by the Board on 6 August 2020 and signed on its behalf by:

.........................................
P J Steadman
Director

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Alina Homecare Specialist Care 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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Alina Homecare Specialist Care Limited

Independent Auditor's Report to the Members of Alina Homecare Specialist Care Limited

Opinion

We have audited the financial statements of Alina Homecare Specialist Care Limited (the 'company') for the year ended 30 April 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 30 April 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.

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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Alina Homecare Specialist Care Limited

Independent Auditor's Report to the Members of Alina Homecare Specialist Care 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 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

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Alina Homecare Specialist Care Limited

Independent Auditor's Report to the Members of Alina Homecare Specialist Care 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.

......................................
Simon Worsley (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

6 August 2020

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Alina Homecare Specialist Care Limited

Profit and Loss Account for the Year Ended 30 April 2020

	Note	2020  £	2019  £
Turnover	3	14,751,280	11,023,394
Cost of sales		(10,409,507)	(7,645,876)
Gross profit		4,341,773	3,377,518
Administrative expenses		(3,604,600)	(3,202,563)
Exceptional items	5	-	(134,640)
Operating profit	4	737,173	40,315
Other interest receivable and similar income	6	53,787	55,271
Interest payable and similar charges	7	(22,006)	(33,246)
Profit before tax		768,954	62,340
Taxation	11	2,817	(8,136)
Profit for the financial year		771,771	54,204

The table below illustrates the company EBITDAM:

	2020 £	2019 £
Profit on ordinary activities before taxation	768,954	62,340
Depreciation	45,403	33,380
Amortisation of goodwill	10,684	10,714
Interest receivable and similar income	(53,787)	(55,271)
Interest payable and similar charges	22,006	33,246
Management charges payable	513,433	371,824
Exceptional administrative expenses	-	134,640
Factoring charges	8,864	14,092
Earnings before interest, tax, depreciation, amortisation of goodwill and management charges (EBITDAM)	1,315,557	604,965

The notes on pages 12 to 22 form an integral part of these financial statements.
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Alina Homecare Specialist Care Limited

(Registration number: 05705303)
Balance Sheet as at 30 April 2020

	Note	2020  £	2019  £
Fixed assets
Intangible assets	12	62,218	72,902
Tangible assets	13	56,325	68,210
Investments	14	-	2
		118,543	141,114
Current assets
Debtors: Amounts falling due within one year	15	2,222,898	2,230,835
Debtors: Amounts falling due after more than one year		1,519,384	1,539,082
Cash at bank and in hand		2,070,033	111,792
		5,812,315	3,881,709
Creditors: Amounts falling due within one year	16	(2,610,514)	(1,312,349)
Net current assets		3,201,801	2,569,360
Total assets less current liabilities		3,320,344	2,710,474
Creditors: Amounts falling due after more than one year	16	(1,135,047)	(1,287,099)
Provisions for liabilities	11	-	(9,849)
Net assets		2,185,297	1,413,526
Capital and reserves
Called up share capital	18	1,111	1,111
Share premium reserve		70,889	70,889
Profit and loss account		2,113,297	1,341,526
Total equity		2,185,297	1,413,526

Approved and authorised by the Board on 6 August 2020 and signed on its behalf by:
 

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

P J Steadman
Director

The notes on pages 12 to 22 form an integral part of these financial statements.
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Alina Homecare Specialist Care Limited

Statement of Changes in Equity for the Year Ended 30 April 2020

	Share capital £	Share premium £	Profit and loss account £	Total £
At 1 May 2019	1,111	70,889	1,341,526	1,413,526
Profit for the year	-	-	771,771	771,771
At 30 April 2020	1,111	70,889	2,113,297	2,185,297

	Share capital £	Share premium £	Profit and loss account £	Total £
At 1 May 2018	1,111	70,889	1,287,322	1,359,322
Profit for the year	-	-	54,204	54,204
At 30 April 2019	1,111	70,889	1,341,526	1,413,526

The notes on pages 12 to 22 form an integral part of these financial statements.
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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 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:
Manor House
Church Street
Leatherhead
Surrey
KT22 8DN

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.

Name of parent of group

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

The financial statements of Alina 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 estimation uncertainty

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

Revenue recognition

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

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 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
Leasehold improvements	Straight line over the term of the lease
Furniture, fittings and computer equipment	Straight line over 3-5 years
Motor vehicles	Straight line over 5 years
Software development costs	Straight line over 5 to 10 years

Intangible assets

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

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

Amortisation

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

Asset class	Amortisation method and rate
Goodwill	Straight line over 20 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 2020

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.

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.

Defined contribution pension obligation

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

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

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 2020

Financial instruments

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

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

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

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

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

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

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

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

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

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 2020

3

Revenue

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

4

Operating profit

Arrived at after charging:

	2020  £	2019  £
Depreciation expense	45,403	33,380
Amortisation expense	10,684	10,714
Operating lease expense - property	344,940	135,376
Operating lease expense - plant and machinery	14,954	21,522

5

Exceptional items

	2020  £	2019  £
Exceptional expenses	-	134,640

Exceptional costs in the prior year included set up costs of new branches £18,681 and an intercompany loan provision of £115,959.

6

Other interest receivable and similar income

	2020 £	2019 £
Interest income from group undertakings	53,787	55,271

7

Interest payable and similar expenses

	2020 £	2019 £
Interest payable on loans from group undertakings	22,006	33,246

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 2020

8

Staff costs

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

	2020  £	2019  £
Wages and salaries	10,898,698	8,796,348
Social security costs	867,319	679,552
Pension costs, defined contribution scheme	247,293	163,026
	12,013,310	9,638,926

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

	2020  No.	2019  No.
Care staff	554	466

9

Directors' remuneration

The directors' remuneration for the year was as follows:

	2020 £	2019 £
Remuneration	166,027	137,027

10

Auditors' remuneration

	2020 £	2019 £
Audit of the financial statements	12,026	5,250

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 2020

11

Taxation

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

	2020  £	2019  £
Current taxation
UK corporation tax	21,814	-
Deferred taxation
Arising from origination and reversal of timing differences	(24,631)	8,136
Tax (receipt)/expense in the income statement	(2,817)	8,136

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

The differences are reconciled below:

	2020 £	2019 £
Profit before tax	768,954	62,340
Corporation tax at standard rate	146,101	11,845
Effect of expense not deductible in determining taxable profit (tax loss)	1,277	3,826
Tax (decrease)/increase from effect of capital allowances and depreciation	(18,557)	12,278
Tax decrease arising from group relief	(131,638)	(19,813)
Total tax (credit)/charge	(2,817)	8,136

Deferred tax

Deferred tax assets and liabilities

2020	Asset £
Difference between accumulated depreciation and amortisation and capital allowances	10,240
Short term timing differences	4,542
	14,782

2019	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	5,722
Short term timing differences	4,127
	9,849

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 2020

12

Intangible assets

	Goodwill  £
Cost
At 1 May 2019 and at 30 April 2020	213,769
Amortisation
At 1 May 2019	140,867
Amortisation charge	10,684
At 30 April 2020	151,551
Carrying amount
At 30 April 2020	62,218
At 30 April 2019	72,902

13

Tangible assets

	Leasehold improvements £	Furniture, fittings and computer equipment  £	Total £
Cost
At 1 May 2019	2,921	231,571	234,492
Additions	2,857	30,661	33,518
At 30 April 2020	5,778	262,232	268,010
Depreciation
At 1 May 2019	1,180	165,102	166,282
Charge for the year	1,146	44,257	45,403
At 30 April 2020	2,326	209,359	211,685
Carrying amount
At 30 April 2020	3,452	52,873	56,325
At 30 April 2019	1,741	66,469	68,210

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 2020

14

Investments in subsidiaries, joint ventures and associates

	2020 £	2019 £
Investments in subsidiaries	-	2

Subsidiaries	£
Cost and carrying amount
At 1 May 2019	2
Disposals	(2)
At 30 April 2020	-

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2020	2019

Subsidiary undertakings
Care-ability Training Limited		Ordinary	0%	100%
	England and Wales

The principal activity of Care-ability Training Limited is as a dormant company. The company was dissolved during the year.

15

Debtors

	Note	2020  £	2019  £
Trade debtors		1,624,669	1,477,297
Other debtors		480,296	656,594
Prepayments		103,151	96,944
Deferred tax assets	11	14,782	-
Amounts owed by group undertakings		1,519,384	1,539,082
		3,742,282	3,769,917
Less non-current portion		(1,519,384)	(1,539,082)
Total current trade and other debtors		2,222,898	2,230,835

Details of non-current trade and other debtors

£1,519,384 (2019 - £1,539,082) of amounts owed by group undertakings is classified as non-current.

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 2020

16

Creditors

	2020  £	2019  £
Due within one year
Trade creditors	219,284	107,607
Social security and other taxes	259,044	152,936
Outstanding defined contribution pension costs	182,843	65,928
Other creditors	914,312	312,645
Accrued expenses	948,835	673,233
Corporation tax liability	21,814	-
Deferred income	64,382	-
	2,610,514	1,312,349
Due after one year
Amounts owed to group undertakings	1,135,047	1,287,099

Other creditors includes secured invoice financing debt of £714,502 (2019 - £303,237).

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £247,293 (2019 - £163,026).

Contributions totalling £182,843 (2019 - £65,928) were payable to the scheme at the end of the year and are included in creditors.

18

Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary shares of £0.10 each	11,111	1,111	11,111	1,111

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2020 £	2019 £
Not later than one year	41,313	77,110
Later than one year and not later than five years	48,450	88,898
	89,763	166,008

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Alina Homecare Specialist Care Limited

Notes to the Financial Statements for the Year Ended 30 April 2020

20

Parent and ultimate parent undertaking

The company's immediate parent is TCD (Holdings) Limited, incorporated in England and Wales.

 The ultimate parent company is Alina Care Holdings Limited, incorporated in England and Wales.

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