Cedar Care Homes Limited - Limited company accounts 20.1
Cedar Care Homes Limited - Limited company accounts 20.1
REGISTERED NUMBER: 03585946 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 July 2020 |
for |
Cedar Care Homes Limited |
Cedar Care Homes Limited (Registered number: 03585946) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 July 2020 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Cedar Care Homes Limited |
Company Information |
for the Year Ended 31 July 2020 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants (ICAEW) |
Redland House |
157 Redland Road |
Redland |
Bristol |
BS6 6YE |
Cedar Care Homes Limited (Registered number: 03585946) |
Group Strategic Report |
for the Year Ended 31 July 2020 |
The directors present their strategic report of the company and the group for the year ended 31 July 2020. |
REVIEW OF BUSINESS |
The principal activity of the group was that of owning, operating and construction of nursing homes. |
The group owns and operates several care homes across Bath (Larkhall Springs, The Orangery, Winfield Lodge and Woodside,) and Bristol (Gracefields, Oakhill Mansions, Oakhill Lodge, Saville Manor, and Waltham House). |
All the homes provide accommodation for adults over 65 years who require nursing or personal care, including in some cases, care for residents living dementia and mental disorder. |
The group remains profitable at similar levels to last year, as fee increases have been offset by exceptional impacts on occupancy and costs, largely as a result of Covid 19 epidemic. The underlying health of the business is strong and the Directors expect the business to return to normal trend levels during 2021. The overall average fees obtained throughout the year rose across the business. The fee uplift from local authorities continued to be lower than inflation and to mitigate this, the group continues to focus on improving the percentage of privately funded residents. |
The group continues to invest in maintaining and improving the properties and fixtures and fittings of all the nursing homes to provide a comfortable, safe and happy environment for the residents. The directors regard this investment as being integral to the continuing success of the business and ensure the company provides its residents with a home which they can enjoy. The group places a strong importance on investing in the development and training of its staff to ensure that it meets all the statutory and regulatory requirements as well as providing a high level of service to their residents. |
All the nursing homes are monitored by Care Quality Commission (CQC) and endeavour to meet all the standards as required by the CQC. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the group relate to the impact of potential increased competition, and the possible impact of future government legislation. The directors ensure they are up to date with legislation and monitor the impact on the group of new care homes opening in the local area. The main risks are: |
A significant proportion of revenue is derived from public sources. Any change in these agreements or cuts in public spending will inhibit the company's ability to continue to provide services to disadvantaged adults. |
It is not yet known whether changes to the immigration regime post Brexit will have an impact on the ability to recruit staff from outside the U.K. |
The Covid 19 epidemic has led to higher operating costs as the group put in place controls to minimise the spread of infection and cover staff absences. Measures to control the outbreak have included stringent personal hygiene protocols and daily cleaning, use of PPE, purpose built pods to enable safe visits by relatives when these were allowed and regular testing. We still had outbreaks in several homes, with a temporary impact on occupancy levels. Nonetheless the group's operating processes have largely proved resilient, we have been able to contain the outbreaks quickly and underlying demand for the group's services remains strong. At the time of writing occupancy and profitability are recovering well and the majority of staff and residents have been vaccinated which significantly reduces the risk of future outbreaks. |
Recruiting staff remains challenging but changes to the rate of pay and pay structure are having a positive effect. |
There has been no indication that the local authorities and social services will change agreements considerably, thus these sources are not threatened and an ageing population supports an increased demand for the services provided by the group. |
The group has a risk management process in place, which is designed to identify, manage and mitigate business risk. It also has a dedicated Human Resource Department, an Operations head who ensures the recommendations by CQC are implemented and maintain highest level of care provisions to residents at all times and the quality of care is underpinned by a robust and comprehensive operating manual to guide local managers and staff. |
The Chief Operating Officer and Directors have been involved in the management of the care homes for many years and have built up a considerable body of expertise. They are supported by trained nurses who have considerable experience in looking after the residents and their needs at the nursing homes. The most fundamental risk faced by the company is poor delivery of care which could impact on compliance with the Statutory Regulator and reputation and subsequently impact on occupancy and profitability. The group recognises this and has invested heavily in both their management team, management processes and quality assurance team which underpins the group's activities. |
Cedar Care Homes Limited (Registered number: 03585946) |
Group Strategic Report |
for the Year Ended 31 July 2020 |
SECTION 172(1) STATEMENT |
The directors have complied with requirements of S172 of the Companies Act 2006. The duties are detailed in Section 172 of the Companies Act are summaries as follows: |
A director of a company must act in the way they consider, in good faith would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to |
- the likely consequences of any decisions in the long term, |
- the interest of the group's employees, |
- the need to foster the group's business relationships with suppliers, customers and other, |
- the impact of the group operations on the community and environment, |
- the desirability of the company maintaining a reputation for high standards of business conduct and |
- the need to act fairly as between members of the group. |
FINANCIAL INSTRUMENTS |
The group's principal financial instruments comprise bank balances, bank borrowings, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for and to finance the group's operations. In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and optimization of interest of funds placed in deposit accounts. In addition major capital investments such as acquisition and redevelopment of sites is usually funded by bank lending secured on the relevant properties, so as not to impinge on operational cashflow. The group manages the liquidity risk by ensuring there are sufficient funds to meet the payments. Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to make the payments as and when they fall due. Trade debtors and cash flow are managed through credit processes to monitor and pursue overdue receipts from local councils and private residents |
DEVELOPMENT AND PERFORMANCE |
The group's profit on ordinary activities after taxation was £2,635,879 (2019: £3,032,825). Turnover for the year was £23,234,834 compared to £23,714,496 in the previous year. The results for the year are set out on page 9. The group's net current assets are £2,865,447 (2019:£2,139,462) and total shareholders funds were £23,218,141 (2019:£ £20,582,262) respectively as at the balance sheet date. |
The company has not declared dividends during the year (2019: £Nil). |
Key performance indicators |
Key Performance Indicators ('KPI') of the business are earnings before interest and tax, return on capital employed, average occupancy of care homes, customer satisfaction and CQC compliance. |
Turnover for the year was £23,234,834 compared to £23,714,496 in the previous year. |
Earnings before interest and tax was £3,866,488 compared to £4,209,990 in the previous year. |
The Return on capital employed for the year was 8.6% compared to 9.6% in the previous year. |
Average room occupancy for the year was 89% compared to 89% in the previous year. |
EMPLOYEE PRACTICES,COMMUNITY AND ENVIRONMENT |
Our Employees |
The group is a responsible business and therefore the group provides continuous staff training and development opportunities. The group always ensures staff operate as efficiently as possible. |
Community and Environment |
The group supports positive change for people and communities with staff and management interactions. |
RISK MANAGEMENT AND BUSINESS RELATIONSHIPS |
The business is growing in terms of turnover and assets acquisition therefore risk management becomes more complex. It is vital for management to identify, evaluate and mitigate the risk. |
The group had a challenging year with continued uncertainty of Brexit and Covid 19 environment to manage business relations with various authorities. The group and management are developing and maintaining strong relationships with customers, suppliers and others. |
Cedar Care Homes Limited (Registered number: 03585946) |
Group Strategic Report |
for the Year Ended 31 July 2020 |
ENVIRONMENTAL MATTERS - ENERGY AND CARBON REPORTING |
Our energy efficiency actions have continued throughout the year with the following measures: |
- Continuous monitoring and control of use of heating and power in our care homes. |
- Minimise unnecessary transport movements through scheduling of staff. |
- Investing in green energy initiatives at new sites (solar, pellet burners, CHP Plants) |
- This is the first period of applying these regulations and no information is present for the comparative period. |
UK Energy use 5.4M KWH |
Associated Green House Gas Emissions 1082 CO2 Tonnes |
Intensity Ratio Emission per employee 2.2 CO2 Tonnes. |
ON BEHALF OF THE BOARD: |
Cedar Care Homes Limited (Registered number: 03585946) |
Report of the Directors |
for the Year Ended 31 July 2020 |
The directors present their report with the financial statements of the company and the group for the year ended 31 July 2020. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 July 2020. |
DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1 August 2019 to the date of this report unless otherwise stated. |
Other changes in directors holding office are as follows: |
The beneficial interests of the directors holding office at 31 July 2020 in the shares of the company, according to the register of directors' interests, were as follows: |
31.7.20 | 1.8.19 |
Ordinary shares of £1 each |
10,000 | 10,000 |
10,000 | 10,000 |
- | - |
These directors did not hold any non-beneficial interests in the shares of the company. |
The board are sad to announce the passing of Mr KC Desai on 2 May 2020. Mr KC Desai was a founding director and shareholder of the company and served the company from its incorporation. He will be sadly missed by all concerned at Cedar Care Homes Limited. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 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 directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Cedar Care Homes Limited (Registered number: 03585946) |
Report of the Directors |
for the Year Ended 31 July 2020 |
AUDITORS |
The auditors, Wormald & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Cedar Care Homes Limited |
Opinion |
We have audited the financial statements of Cedar Care Homes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 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 July 2020 and of the group's 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 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 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 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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. |
Opinions on other matters 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 Group Strategic Report and the Report of the Directors 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 Directors have been prepared in accordance with applicable legal requirements. |
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 Directors. |
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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Cedar Care Homes Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 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 directors either intend to liquidate the group or the parent company or to cease operations, or have 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. |
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. |
for and on behalf of |
Chartered Accountants (ICAEW) |
Redland House |
157 Redland Road |
Redland |
Bristol |
BS6 6YE |
Cedar Care Homes Limited (Registered number: 03585946) |
Consolidated Income Statement |
for the Year Ended 31 July 2020 |
2020 | 2019 |
Notes | £ | £ |
TURNOVER | 23,234,834 | 23,714,496 |
Cost of sales | 17,073,415 | 17,162,902 |
GROSS PROFIT | 6,161,419 | 6,551,594 |
Administrative expenses | 2,601,043 | 2,620,596 |
3,560,376 | 3,930,998 |
Other operating income | 296,948 | 268,800 |
OPERATING PROFIT | 4 | 3,857,324 | 4,199,798 |
Interest receivable and similar income | 9,164 | 10,192 |
3,866,488 | 4,209,990 |
Interest payable and similar expenses | 5 | 586,855 | 651,304 |
PROFIT BEFORE TAXATION | 3,279,633 | 3,558,686 |
Tax on profit | 6 | 643,754 | 525,861 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,635,879 | 3,032,825 |
Cedar Care Homes Limited (Registered number: 03585946) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 July 2020 |
2020 | 2019 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 2,635,879 | 3,032,825 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,635,879 |
3,032,825 |
Total comprehensive income attributable to: |
Owners of the parent | 2,635,879 | 3,032,825 |
Cedar Care Homes Limited (Registered number: 03585946) |
Consolidated Balance Sheet |
31 July 2020 |
2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 56,667 | 76,667 |
Tangible assets | 9 | 41,874,320 | 40,953,471 |
Investments | 10 | - | - |
41,930,987 | 41,030,138 |
CURRENT ASSETS |
Stocks | 11 | 227,992 | 92,476 |
Debtors | 12 | 1,622,946 | 2,166,018 |
Cash at bank and in hand | 4,354,880 | 3,453,171 |
6,205,818 | 5,711,665 |
CREDITORS |
Amounts falling due within one year | 13 | 3,340,371 | 3,572,203 |
NET CURRENT ASSETS | 2,865,447 | 2,139,462 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
44,796,434 |
43,169,600 |
CREDITORS |
Amounts falling due after more than one year |
14 |
21,578,293 |
22,587,338 |
NET ASSETS | 23,218,141 | 20,582,262 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 30,000 | 30,000 |
Retained earnings | 20 | 23,188,141 | 20,552,262 |
SHAREHOLDERS' FUNDS | 23,218,141 | 20,582,262 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2021 and were signed on its behalf by: |
Mr A M Desai - Director |
Mrs M A Desai - Director |
Cedar Care Homes Limited (Registered number: 03585946) |
Company Balance Sheet |
31 July 2020 |
2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,607,243 | 2,992,038 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Cedar Care Homes Limited (Registered number: 03585946) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 July 2020 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 August 2018 | 30,000 | 17,519,437 | 17,549,437 |
Changes in equity |
Total comprehensive income | - | 3,032,825 | 3,032,825 |
Balance at 31 July 2019 | 30,000 | 20,552,262 | 20,582,262 |
Changes in equity |
Total comprehensive income | - | 2,635,879 | 2,635,879 |
Balance at 31 July 2020 | 30,000 | 23,188,141 | 23,218,141 |
Cedar Care Homes Limited (Registered number: 03585946) |
Company Statement of Changes in Equity |
for the Year Ended 31 July 2020 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 August 2018 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 July 2019 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 July 2020 |
Cedar Care Homes Limited (Registered number: 03585946) |
Consolidated Cash Flow Statement |
for the Year Ended 31 July 2020 |
2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 4,098,777 | 5,015,007 |
Interest paid | (586,665 | ) | (651,304 | ) |
Interest element of hire purchase payments paid |
(190 |
) |
- |
Tax paid | (659,999 | ) | (810,724 | ) |
Net cash from operating activities | 2,851,923 | 3,552,979 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (2,795,850 | ) | (854,186 | ) |
Sale of tangible fixed assets | 1,728,208 | - |
Interest received | 9,164 | 10,192 |
Net cash from investing activities | (1,058,478 | ) | (843,994 | ) |
Cash flows from financing activities |
New loans in year | 374,136 | - |
Loan repayments in year | (1,270,809 | ) | (1,181,108 | ) |
Capital repayments in year | 4,885 | - |
Amount introduced by directors | 52 | - |
Amount withdrawn by directors | - | (18,898 | ) |
Net cash from financing activities | (891,736 | ) | (1,200,006 | ) |
Increase in cash and cash equivalents | 901,709 | 1,508,979 |
Cash and cash equivalents at beginning of year |
2 |
3,453,171 |
1,944,192 |
Cash and cash equivalents at end of year | 2 | 4,354,880 | 3,453,171 |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 July 2020 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2020 | 2019 |
£ | £ |
Profit before taxation | 3,279,633 | 3,558,686 |
Depreciation charges | 713,000 | 664,749 |
(Profit)/loss on disposal of fixed assets | (546,210 | ) | 15,150 |
Finance costs | 586,855 | 651,304 |
Finance income | (9,164 | ) | (10,192 | ) |
4,024,114 | 4,879,697 |
Increase in stocks | (135,516 | ) | (8,063 | ) |
Decrease/(increase) in trade and other debtors | 492,192 | (771,639 | ) |
(Decrease)/increase in trade and other creditors | (282,013 | ) | 915,012 |
Cash generated from operations | 4,098,777 | 5,015,007 |
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: |
Year ended 31 July 2020 |
31.7.20 | 1.8.19 |
£ | £ |
Cash and cash equivalents | 4,354,880 | 3,453,171 |
Year ended 31 July 2019 |
31.7.19 | 1.8.18 |
£ | £ |
Cash and cash equivalents | 3,453,171 | 1,944,192 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.8.19 | Cash flow | At 31.7.20 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,453,171 | 901,709 | 4,354,880 |
3,453,171 | 901,709 | 4,354,880 |
Debt |
Finance leases | - | (4,885 | ) | (4,885 | ) |
Debts falling due within 1 year | (1,181,107 | ) | (112,369 | ) | (1,293,476 | ) |
Debts falling due after 1 year | (22,587,338 | ) | 1,009,045 | (21,578,293 | ) |
(23,768,445 | ) | 891,791 | (22,876,654 | ) |
Total | (20,315,274 | ) | 1,793,500 | (18,521,774 | ) |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 July 2020 |
1. | STATUTORY INFORMATION |
Cedar Care Homes Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill, being the amount paid in connection with acquisition of care homes is being amortised evenly over its estimated useful life of five years. |
In view of the changes in Government legislation concerning the compliance standard now imposed on Care Homes the directors believe that goodwill should now be written off over its estimated useful life of five years from the previously adopted policy of ten years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year 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 or deferred taxation assets and liabilities are not discounted. |
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 |
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 year 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. |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2020 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss 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 profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2020 | 2019 |
Administration and maintenance | 56 | 58 |
Nursing care and domestic | 432 | 451 |
Please note that a significant number of the employees of Cedar Care Homes Limited are part time or part time equivalent. |
2020 | 2019 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director for the year ended 31 July 2020 is as follows: |
2020 |
£ |
Emoluments etc |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2020 | 2019 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
(Profit)/loss on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2020 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Bank loan interest |
Hire purchase |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
Underprovision in prior years | - | (4,269 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
7. | 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. |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 August 2019 |
and 31 July 2020 |
AMORTISATION |
At 1 August 2019 |
Amortisation for year |
At 31 July 2020 |
NET BOOK VALUE |
At 31 July 2020 |
At 31 July 2019 |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2020 |
8. | INTANGIBLE FIXED ASSETS - continued |
Company |
Goodwill |
£ |
COST |
At 1 August 2019 |
and 31 July 2020 |
AMORTISATION |
At 1 August 2019 |
Amortisation for year |
At 31 July 2020 |
NET BOOK VALUE |
At 31 July 2020 |
At 31 July 2019 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 August 2019 | 41,053,118 | 3,842,604 | 61,466 | 181,900 | 45,139,088 |
Additions | 2,590,388 | 79,915 | 109,563 | 15,984 | 2,795,850 |
Disposals | (1,259,045 | ) | - | - | - | (1,259,045 | ) |
At 31 July 2020 | 42,384,461 | 3,922,519 | 171,029 | 197,884 | 46,675,893 |
DEPRECIATION |
At 1 August 2019 | 1,920,463 | 2,108,190 | 34,212 | 122,752 | 4,185,617 |
Charge for year | 387,056 | 267,426 | 16,479 | 22,042 | 693,003 |
Eliminated on disposal | (77,047 | ) | - | - | - | (77,047 | ) |
At 31 July 2020 | 2,230,472 | 2,375,616 | 50,691 | 144,794 | 4,801,573 |
NET BOOK VALUE |
At 31 July 2020 | 40,153,989 | 1,546,903 | 120,338 | 53,090 | 41,874,320 |
At 31 July 2019 | 39,132,655 | 1,734,414 | 27,254 | 59,148 | 40,953,471 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
Additions | 15,114 |
At 31 July 2020 | 15,114 |
DEPRECIATION |
Charge for year | 944 |
At 31 July 2020 | 944 |
NET BOOK VALUE |
At 31 July 2020 | 14,170 |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2020 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 August 2019 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 July 2020 |
DEPRECIATION |
At 1 August 2019 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 July 2020 |
NET BOOK VALUE |
At 31 July 2020 |
At 31 July 2019 |
Included in cost of land and buildings is freehold land of £ 6,876,810 (2019 - £ 6,876,810 ) which is not depreciated. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
Additions |
At 31 July 2020 |
DEPRECIATION |
Charge for year |
At 31 July 2020 |
NET BOOK VALUE |
At 31 July 2020 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 August 2019 |
and 31 July 2020 |
NET BOOK VALUE |
At 31 July 2020 |
At 31 July 2019 |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2020 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Mortimer House, Clifton Down Road, Bristol, BS8 4AE |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Stocks | 227,992 | 92,476 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Trade debtors | 670,371 | 944,549 |
Amounts owed by group undertakings | - | - |
Other debtors | 336,981 | 578,757 |
Deferred tax asset | 552,799 | 603,679 | 556,763 | 608,109 |
Prepayments and accrued income | 62,795 | 39,033 |
1,622,946 | 2,166,018 |
Deferred tax asset |
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Deferred tax | 552,799 | 603,679 | 556,763 | 608,109 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 1,293,476 | 1,181,107 |
Hire purchase contracts (see note 16) | 4,885 | - |
Trade creditors | 896,893 | 1,287,981 |
Corporation tax | 199,096 | 266,221 |
Social security and other taxes | 264,598 | 251,259 |
Other creditors | 95,230 | 98,067 |
Directors' loan accounts | 52 | - | 52 | - |
Accruals and deferred income | 586,141 | 487,568 |
3,340,371 | 3,572,203 |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2020 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Bank loans (see note 15) | 21,578,293 | 22,587,338 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | - | - |
Bank loans | 1,293,476 | 1,181,107 |
1,293,476 | 1,181,107 |
Amounts falling due between one and two | years: |
Bank loans | 1,293,476 | 1,181,107 |
Amounts falling due between two and five | years: |
Bank loans | 4,254,562 | 3,638,320 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 16,030,255 | 17,767,911 | 16,030,255 | 17,767,911 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year | 4,885 | - |
Company |
Hire purchase contracts |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2020 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Company |
2020 | 2019 |
£ | £ |
Bank overdraft |
Bank loans |
18. | DEFERRED TAX |
Group |
£ |
Balance at 1 August 2019 | (603,679 | ) |
Accelerated capital allowances | 50,880 |
Balance at 31 July 2020 | (552,799 | ) |
Company |
£ |
Balance at 1 August 2019 | ( |
) |
Accelerated capital allowances | 51,346 |
Balance at 31 July 2020 | ( |
) |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
Ordinary | £1 | 30,000 | 30,000 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 August 2019 | 20,552,262 |
Profit for the year | 2,635,879 |
At 31 July 2020 | 23,188,141 |
Company |
Retained |
earnings |
£ |
At 1 August 2019 |
Profit for the year |
At 31 July 2020 |
Cedar Care Homes Limited (Registered number: 03585946) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2020 |
21. | ULTIMATE CONTROLLING PARTY |
There is no controlling or ultimate controlling party of the group. |