Jade Country Care Homes Limited - Period Ending 2020-09-30

Jade Country Care Homes Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 8

Jade Country Care Homes Limited

Company Information

Directors

S Mcquinn S E P Mcquinn

Registered office

Crossways Farm Nettleden Hemel Hempstead Hertfordshire HP1 3DG

Accountants

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Jade Country Care Homes Limited

(Registration number: 03540883)
Balance Sheet as at 30 September 2020

	Note	2020  £	2019  £
Fixed assets
Tangible assets	4	939,899	948,023
Current assets
Debtors	5	307,816	109,044
Cash at bank and in hand		33,347	12,472
		341,163	121,516
Creditors: Amounts falling due within one year	6	(340,164)	(423,197)
Net current assets/(liabilities)		999	(301,681)
Total assets less current liabilities		940,898	646,342
Creditors: Amounts falling due after more than one year	6	(126,000)	(62,654)
Deferred tax liabilities	7	(2,217)	(6,153)
Net assets		812,681	577,535
Capital and reserves
Called up share capital		1,000	1,000
Profit and loss account		811,681	576,535
Total equity		812,681	577,535

For the financial year ending 30 September 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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

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

Approved and authorised by the Board on 28 May 2021 and signed on its behalf by:
 

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

S E P Mcquinn
Director

Jade Country Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 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:
Crossways Farm
Nettleden
Hemel Hempstead
Hertfordshire
HP1 3DG
England

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Judgements and estimation uncertainty

No significant judgements have been made by management in preparing these financial statements.

Revenue recognition

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

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Jade Country Care Homes Limited

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

Tangible assets

Tangible assets are stated in the statement of financial position 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, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Furniture, fittings and equipment	20% straight line
Office equipment	20% straight line
Land and buildings	1% straight line

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or 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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Jade Country Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 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.
 

Jade Country Care Homes Limited

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

3

Staff numbers

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

	2020  No.	2019  No.
Average number of employees	29	35

4

Tangible assets

	Freehold, land and building £	Furniture, fittings and equipment  £	Total £
Cost
At 1 October 2019	956,031	194,886	1,150,917
Additions	-	9,176	9,176
At 30 September 2020	956,031	204,062	1,160,093
Depreciation
At 1 October 2019	19,120	183,774	202,894
Charge for the year	9,560	7,740	17,300
At 30 September 2020	28,680	191,514	220,194
Carrying amount
At 30 September 2020	927,351	12,548	939,899
At 30 September 2019	936,911	11,112	948,023

Jade Country Care Homes Limited

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

5

Debtors

	2020  £	2019  £
Trade debtors	159,210	31,821
Amounts owed by related party company	145,543	62,800
Prepayments	3,063	14,423
	307,816	109,044

6

Creditors

Creditors: amounts falling due within one year

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	8	200,303	266,025
Trade creditors		66,062	44,774
Other loans		-	19,935
Social security and other taxes		8,654	11,308
Outstanding defined contribution pension costs		1,524	2,023
Other creditors		2,845	1,639
Accrued expenses		12,608	14,195
Corporation tax liability		48,168	63,298
		340,164	423,197
Due after one year
Loans and borrowings	8	126,000	62,654

7

Deferred tax

Deferred tax assets and liabilities

2020	Liability £
Capital allowances in excess of depreciation	2,217

2019	Liability £
Capital allowances in excess of depreciation	6,153

Jade Country Care Homes Limited

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

8

Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Hire purchase liabilities	-	5,971
Owed to group undertaking	200,303	260,054
	200,303	266,025

	2020 £	2019 £
Non-current loans and borrowings
Other borrowings	126,000	62,654