ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

HERITAGE CARE HOMES LIMITED - Company Information

Caseware UK (AP4) 2021.0.152 2021.0.152 2021-10-312021-10-312020-11-0196No description of principal activityfalsefalse81false 04380228 2020-11-01 2021-10-31 04380228 2019-11-01 2020-10-31 04380228 2021-10-31 04380228 2020-10-31 04380228 2019-11-01 04380228 2 2020-11-01 2021-10-31 04380228 2 2019-11-01 2020-10-31 04380228 5 2020-11-01 2021-10-31 04380228 5 2019-11-01 2020-10-31 04380228 d:CompanySecretary1 2020-11-01 2021-10-31 04380228 d:Director1 2020-11-01 2021-10-31 04380228 d:Director2 2020-11-01 2021-10-31 04380228 d:RegisteredOffice 2020-11-01 2021-10-31 04380228 e:Buildings 2020-11-01 2021-10-31 04380228 e:Buildings 2021-10-31 04380228 e:Buildings 2020-10-31 04380228 e:Buildings e:OwnedOrFreeholdAssets 2020-11-01 2021-10-31 04380228 e:Buildings e:LeasedAssetsHeldAsLessee 2020-11-01 2021-10-31 04380228 e:PlantMachinery 2020-11-01 2021-10-31 04380228 e:PlantMachinery 2021-10-31 04380228 e:PlantMachinery 2020-10-31 04380228 e:PlantMachinery e:OwnedOrFreeholdAssets 2020-11-01 2021-10-31 04380228 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2020-11-01 2021-10-31 04380228 e:MotorVehicles 2020-11-01 2021-10-31 04380228 e:MotorVehicles 2021-10-31 04380228 e:MotorVehicles 2020-10-31 04380228 e:MotorVehicles e:OwnedOrFreeholdAssets 2020-11-01 2021-10-31 04380228 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2020-11-01 2021-10-31 04380228 e:FurnitureFittings 2020-11-01 2021-10-31 04380228 e:FurnitureFittings 2021-10-31 04380228 e:FurnitureFittings 2020-10-31 04380228 e:FurnitureFittings e:OwnedOrFreeholdAssets 2020-11-01 2021-10-31 04380228 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2020-11-01 2021-10-31 04380228 e:OfficeEquipment 2020-11-01 2021-10-31 04380228 e:OfficeEquipment 2021-10-31 04380228 e:OfficeEquipment 2020-10-31 04380228 e:OfficeEquipment e:OwnedOrFreeholdAssets 2020-11-01 2021-10-31 04380228 e:OfficeEquipment e:LeasedAssetsHeldAsLessee 2020-11-01 2021-10-31 04380228 e:OwnedOrFreeholdAssets 2020-11-01 2021-10-31 04380228 e:LeasedAssetsHeldAsLessee 2020-11-01 2021-10-31 04380228 e:FreeholdInvestmentProperty 2021-10-31 04380228 e:FreeholdInvestmentProperty 2020-10-31 04380228 e:CurrentFinancialInstruments 2021-10-31 04380228 e:CurrentFinancialInstruments 2020-10-31 04380228 e:Non-currentFinancialInstruments 2021-10-31 04380228 e:Non-currentFinancialInstruments 2020-10-31 04380228 e:CurrentFinancialInstruments e:WithinOneYear 2021-10-31 04380228 e:CurrentFinancialInstruments e:WithinOneYear 2020-10-31 04380228 e:Non-currentFinancialInstruments e:AfterOneYear 2021-10-31 04380228 e:Non-currentFinancialInstruments e:AfterOneYear 2020-10-31 04380228 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2021-10-31 04380228 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2020-10-31 04380228 e:Non-currentFinancialInstruments e:MoreThanFiveYears 2021-10-31 04380228 e:Non-currentFinancialInstruments e:MoreThanFiveYears 2020-10-31 04380228 e:ReportableOperatingSegment1 2020-11-01 2021-10-31 04380228 e:ReportableOperatingSegment1 2019-11-01 2020-10-31 04380228 f:UnitedKingdom 2020-11-01 2021-10-31 04380228 f:UnitedKingdom 2019-11-01 2020-10-31 04380228 e:UKTax 2020-11-01 2021-10-31 04380228 e:UKTax 2019-11-01 2020-10-31 04380228 e:ShareCapital 2021-10-31 04380228 e:ShareCapital 2020-10-31 04380228 e:RevaluationReserve 2020-11-01 2021-10-31 04380228 e:RevaluationReserve 2021-10-31 04380228 e:RevaluationReserve 2020-10-31 04380228 e:OtherMiscellaneousReserve 2020-11-01 2021-10-31 04380228 e:OtherMiscellaneousReserve 2021-10-31 04380228 e:OtherMiscellaneousReserve 2020-10-31 04380228 e:RetainedEarningsAccumulatedLosses 2020-11-01 2021-10-31 04380228 e:RetainedEarningsAccumulatedLosses 2021-10-31 04380228 e:RetainedEarningsAccumulatedLosses 2019-11-01 2020-10-31 04380228 e:RetainedEarningsAccumulatedLosses 2020-10-31 04380228 e:RetainedEarningsAccumulatedLosses 2019-11-01 04380228 e:AcceleratedTaxDepreciationDeferredTax 2021-10-31 04380228 e:AcceleratedTaxDepreciationDeferredTax 2020-10-31 04380228 d:OrdinaryShareClass1 2020-11-01 2021-10-31 04380228 d:OrdinaryShareClass1 2021-10-31 04380228 d:OrdinaryShareClass1 2020-10-31 04380228 d:FRS102 2020-11-01 2021-10-31 04380228 d:Audited 2020-11-01 2021-10-31 04380228 d:FullAccounts 2020-11-01 2021-10-31 04380228 d:PrivateLimitedCompanyLtd 2020-11-01 2021-10-31 04380228 e:WithinOneYear 2021-10-31 04380228 e:WithinOneYear 2020-10-31 04380228 e:BetweenOneFiveYears 2021-10-31 04380228 e:BetweenOneFiveYears 2020-10-31 04380228 5 2020-11-01 2021-10-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 04380228

HERITAGE CARE HOMES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

HERITAGE CARE HOMES LIMITED

COMPANY INFORMATION

Directors	S M Hussain
	R B Hussain


Company secretary	R B Hussain


Registered number	04380228


Registered office	14-26 Victoria Street
	Luton
	Bedfordshire
	LU1 2UA


Independent auditor	Barnes Roffe LLP
	Chartered Accountants Statutory Auditor
	Leytonstone House
	Leytonstone
	London
	E11 1GA

HERITAGE CARE HOMES LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditor's report	5 - 8
Statement of income and retained earnings	9
Balance sheet	10 - 11
Statement of cash flows	12 - 13
Analysis of net debt	14
Notes to the financial statements	15 - 27

HERITAGE CARE HOMES LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 OCTOBER 2021

Business review

The principal activity of the Company continued to be that of the operation of care homes.
The coronavirus pandemic has had a devastating impact across the global economy and the Company, as a direct result, has experienced one of its most challenging trading environments to date. The directors took decisive actions to adapt to the challenges faced as part of the pandemic, including making the difficult decision to close the care homes to non-residents to safeguard both residents and staff members and to ensure the business continued to deliver outstanding service levels.
The results for the year are a testament to the hard work and dedication of the entire team and, despite the ongoing pandemic, the directors are pleased to report an increase in turnover from £2.41m to £2.60m and an increase in net assets from £4.32m to £4.56m.

Principal risks and uncertainties

Throughout its operations the Company faces various principal internal and external risks and uncertainties. The directors periodically review their exposure to risk and use this as a benchmark for making strategic decisions to mitigate exposure to all forms of risks, where practical.
Financial risks
The Company, as with many organisations within the public sector, are under significant pressure to reduce costs. The directors have prudently managed cashflow and have controlled overheads to ensure the Company maintains a strong financial environment. The directors are thankful to have the ongoing financial support of the local authority revenues from which form a significant part of the company’s business.
Regulatory risks
The industry is regulated by care industry regulators (CQC) and periodically these regulators will carry out inspections to assess the care homes environment and compliance with health and safety regulations. The Company continues to be alert to any legislative changes introduced by the Government to ensure the business remains compliant at all times.
Operational risks
The Company’s key objective is to provide the highest standard of care to its residents. Staff shortages are a significant risk especially given the ongoing pandemic. The directors mitigate this risk by ensuring they maintain strong relationships with their staff and provide appropriate levels of remuneration and comprehensive training.

Employment policy

The Company does not discriminate against anyone on any grounds. The Company considers its key strength to be its people whom are all suitably qualified and appropriately trained.
The sole criterion for selection or promotion is the suitability of the person for the job. It is the policy of the Company to provide employment to people irrespective of sex, age, religion or disability whenever the demands of the Company and the abilities of the individual will allow. Appropriate levels of training and development are available for all levels and categories of staff.

Page 1

HERITAGE CARE HOMES LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2021

Outlook

The Company’s key objective is to provide unrivaled care and service to its residents.
The continuing global pandemic inevitably provides future economic uncertainty however the directors have taken the necessary steps to ensure the Company is well positioned to adapt to the ever-changing situation.
The directors continue to look to capitalise on future opportunities including the acquisition of suitable sites and purpose-built care homes.
There are no significant post year end events to disclose.
The directors would like to take this opportunity, more so than ever, to thank its staff, residents, and business partners for their continued support throughout the period.

This report was approved by the board on 8 July 2022 and signed on its behalf.

S M Hussain

Director

Page 2

HERITAGE CARE HOMES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 OCTOBER 2021

The directors present their report and the financial statements for the year ended 31 October 2021.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.

Results and dividends

The profit for the year, after taxation, amounted to £17,602 (2020 - £237,802).

The directors do not recomment payment of a final dividend.

Directors

The directors who served during the year were:

S M Hussain

R B Hussain

Future developments

The directors aim to improve the management policies to maintain the Company's sustainability and growth.

Page 3

HERITAGE CARE HOMES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2021

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Barnes Roffe LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 July 2022 and signed on its behalf.

S M Hussain

Director

Page 4

HERITAGE CARE HOMES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HERITAGE CARE HOMES LIMITED

Opinion

We have audited the financial statements of Heritage Care Homes Limited (the 'Company') for the year ended 31 October 2021, which comprise the Statement of income and retained earnings, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 October 2021 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 United Kingdom, including the Financial Reporting Council'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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 5

HERITAGE CARE HOMES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HERITAGE CARE HOMES LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinion 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 Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the 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 the 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 or the Directors' report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement set out on page 3, 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.

Page 6

HERITAGE CARE HOMES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HERITAGE CARE HOMES LIMITED (CONTINUED)

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

∙The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙We identified the laws and regulations applicable to the Company through discussion with directors and other management, and from our commercial knowledge and experience of the relevant sector;

∙The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows;

°Companies Act 2006.

°FRS102.

°Health and Safety legislation.

∙We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and inspecting legal correspondence; and

∙Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

∙Making enquires of management as to where they consider there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud;

∙Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

∙Reviewing the financial statements and testing the disclosures against supporting documentation;

∙Performing analytical procedures to identify any unusual or unexpected trends or anomalies;

∙Inspecting and testing journal entries to identify unusual or unexpected transactions;

∙Assessing whether judgements and assumptions made in determining significant accounting estimates, including stock obsolescence, depreciation and bad debt provision were indicative of management bias; and

∙Investigating the rationale behind significant transactions, or transactions that are unusual or outside the Company’s usual course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresenation.

Page 7

HERITAGE CARE HOMES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HERITAGE CARE HOMES LIMITED (CONTINUED)

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.

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.

Andrew Barnes (Senior statutory auditor)

for and on behalf of

Barnes Roffe LLP

Chartered Accountants

Statutory Auditor

Leytonstone House

Leytonstone

London

E11 1GA

8 July 2022

Page 8

HERITAGE CARE HOMES LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 OCTOBER 2021

	2021	2020
Note	£	£


Turnover	4	2,599,172	2,411,329
Cost of sales		(1,762,256)	(1,456,541)
Gross profit		836,916	954,788
Administrative expenses		(842,552)	(658,414)
Other operating income	5	200,859	156,453
Operating profit	6	195,223	452,827
Interest payable and similar expenses	11	(147,718)	(135,169)
Profit before tax		47,505	317,658
Tax on profit	13	(29,903)	(79,856)
Profit after tax		17,602	237,802



Retained earnings at the beginning of the year	2,915,390	2,684,255
Profit for the year	17,602	237,802
Dividends declared and paid	(6,667)	(6,667)
Retained earnings at the end of the year	2,926,325	2,915,390

The notes on pages 15 to 27 form part of these financial statements.

Page 9

HERITAGE CARE HOMES LIMITED

REGISTERED NUMBER: 04380228

BALANCE SHEET

AS AT 31 OCTOBER 2021

		As restated
	2021	2020
Note	£	£

Fixed assets
Tangible assets	9		4,213,979		4,292,097
Investment property	10		525,000		525,000
			4,738,979		4,817,097
Current assets
Debtors: amounts falling due within one year	14	4,350,201		4,167,402
Cash at bank and in hand		320,269		233,974
		4,670,470		4,401,376
Creditors: amounts falling due within one year	15	(714,295)		(604,485)
Net current assets			3,956,175		3,796,891
Total assets less current liabilities			8,695,154		8,613,988
Creditors: amounts falling due after more than one year	16		(3,690,120)		(3,619,889)
Provisions for liabilities
Deferred tax	18		(447,138)		(447,138)
Net assets			4,557,896		4,546,961

Capital and reserves
Called up share capital	19	1,000	1,000
Revaluation reserve	20	1,562,269	1,562,269
Other reserves	20	68,302	68,302
Profit and loss account	20	2,926,325	2,915,390
		4,557,896	4,546,961

Page 10

HERITAGE CARE HOMES LIMITED

REGISTERED NUMBER: 04380228

BALANCE SHEET (CONTINUED)

AS AT 31 OCTOBER 2021

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 July 2022.

S M Hussain

Director

The notes on pages 15 to 27 form part of these financial statements.

Page 11

HERITAGE CARE HOMES LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 OCTOBER 2021

			2021	2020
			£	£

Cash flows from operating activities
Profit for the financial year	17,602	237,802
Adjustments for:
Depreciation of tangible assets	153,755	136,558
Government grants	(200,859)	(156,453)
Interest paid	147,718	135,169
Taxation charge	29,903	79,856
Decrease in stocks	-	3,000
Increase in debtors	(19,886)	(51,337)
Increase in amounts owed by connected companies	(162,913)	(117,780)
(Decrease)/increase in creditors	(23,138)	91,688
Corporation tax paid	(28,462)	(61,009)
Net cash generated from operating activities	(86,280)	297,494
Cash flows from investing activities
Purchase of tangible fixed assets	(75,637)	(29,482)
Government grants received	200,859	156,453
HP interest paid	(942)	-
Net cash from investing activities	124,280	126,971
Cash flows from financing activities
New secured loans	250,000	-
Repayment of loans	(75,490)	(69,976)
Repayment of/new finance leases	27,228	-
Dividends paid	(6,667)	(6,667)
Interest paid	(146,776)	(135,169)
Net cash used in financing activities	48,295	(211,812)
Net increase in cash and cash equivalents	86,295	212,653

Page 12

HERITAGE CARE HOMES LIMITED

STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2021

		2021	2020
		£	£


Cash and cash equivalents at beginning of year	233,974	21,321
Cash and cash equivalents at the end of year	320,269	233,974

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	320,269	233,974

Page 13

HERITAGE CARE HOMES LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 OCTOBER 2021


At 1 November 2020	Cash flows	New finance leases	At 31 October 2021
£	£	£	£

Cash at bank and in hand	233,974	86,295	-	320,269
Debt due after 1 year	(3,011,275)	(138,493)	-	(3,149,768)
Debt due within 1 year	(195,962)	(36,044)	-	(232,006)
Finance leases	-	-	(27,228)	(27,228)
	(2,973,263)	(88,242)	(27,228)	(3,088,733)

The notes on pages 15 to 27 form part of these financial statements.

Page 14

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

1.	General information

Heritage Care Homes Limited ("the Company") is a private company, limited by shares, incorporated in England and Wales. The registered office is 14-26 Victoria Street, Luton, Bedfordshire, LU1 2UA.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.4

Government grants

Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

Page 15

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

2.Accounting policies (continued)

2.5

Finance costs

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

2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.8

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 16

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

2.Accounting policies (continued)

2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following annual bases:

Freehold property	-	Over 50 years
Plant and machinery	-	25% straight line
Motor vehicles	-	25% straight line
Fixtures and fittings	-	25% straight line
Office equipment	-	25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.10

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.11

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.12

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 17

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

2.Accounting policies (continued)

2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

2.14

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
     Critical judgments in applying the entity’s accounting policies
No significant judgments have had to be made by management in preparing these financial statements.

Critical accounting estimates and assumptions
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on the technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the property plant and equipment, and note 2.9 for useful economic lives for each class of assets.
Taxation
The entity establishes provisions based on reasonable estimates. Management estimation is required to determine the amount of deferred tax assets/liabilities that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 2.8 and note 14.

4.	Turnover
		2021	2020
		£	£

	Total turnover	2,599,172	2,411,329

					2021	2020
					£	£

	United Kingdom	2,599,172	2,411,329

5.	Other operating income
		2021	2020
		£	£

	Government grants receivable	200,859	156,453

Page 19

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

Depreciation of tangible fixed assets

142,632

136,558

7.	Auditor's remuneration
		2021	2020
		£	£

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements

8,000

6,000

	Fees payable to the Company's auditor and its associates in respect of:
	All other services	9,569	930

Wages and salaries	1,420,726	1,138,400
Social security costs	86,285	65,636
Cost of defined contribution scheme	32,516	27,268
	1,539,527	1,231,304

The average monthly number of employees, including the directors, during the year was as follows:

	2021	2020
	No.	No.

Total	96	81

Page 20

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

9.	Tangible fixed assets

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Office equipment	Total
	£	£	£	£	£	£
Cost or valuation
At 1 November 2020	5,589,984	524,406	-	-	20,179	6,134,569
Additions	-	23,340	44,490	5,444	2,363	75,637
At 31 October 2021	5,589,984	547,746	44,490	5,444	22,542	6,210,206
Depreciation
At 1 November 2020	1,403,854	436,683	-	-	1,935	1,842,472
Charge for the year on owned assets	113,412	23,246	-	1,303	4,671	142,632
Charge for the year on financed assets	-	-	11,123	-	-	11,123
At 31 October 2021	1,517,266	459,929	11,123	1,303	6,606	1,996,227
Net book value
At 31 October 2021	4,072,718	87,817	33,367	4,141	15,936	4,213,979
At 31 October 2020	4,186,130	87,723	-	-	18,244	4,292,097

The net book value of land and buildings may be further analysed as follows:
	2021	2020
	£	£

	Freehold	4,072,718	4,186,130

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HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

10.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 November 2020	525,000
	At 31 October 2021	525,000

	Comprising
	Cost	242,688
	Annual revaluation surplus/(deficit):	Annual revaluation surplus/(deficit):
	Revaluation	282,312
	At 31 October 2021	525,000

The 2021 valuations were made by the directors, on an open market value for existing use basis.

11.	Interest payable and similar charges
		2021	2020
		£	£

Bank interest	145,755	134,065
Finance leases and hire purchase contracts	942	-
Other interest	1,021	1,104
	147,718	135,169

12.	Dividends
		2021	2020
		£	£

Dividends

6,667

Page 22

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

Corporation tax
Current tax on profits for the year	29,903	79,856
Total current tax	29,903	79,856

Profit on ordinary activities before tax

47,505

317,658

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	9,026	60,355
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	67	147
Capital allowances for year in excess of depreciation	20,810	19,354
Total tax charge for the year	29,903	79,856

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 23

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

14.

Debtors

						As restated
					2021	2020
					£	£


Trade debtors	50,098	21,776
Amounts owed by associated undertakings	4,247,601	4,084,688
Other debtors	18,178	34,529
Prepayments	34,324	26,409
	4,350,201	4,167,402

15.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Bank loans	105,992	69,975
Trade creditors	75,253	54,329
Corporation tax	125,517	124,076
Other taxation and social security	22,683	14,643
Obligations under finance lease and hire purchase contracts	27,228	-
Other creditors	239,664	217,278
Accruals and deferred income	117,958	124,184
	714,295	604,485

16.	Creditors: Amounts falling due after more than one year
		2021	2020
		£	£

Bank loans	3,149,768	3,011,275
Other creditors	540,352	608,614
	3,690,120	3,619,889

Bank loans of £3,255,760 (2020 - £3,081,250) are secured against the assets to which they relate.

Page 24

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

Amounts falling due within one year
Bank loans	105,992	69,975

Amounts falling due 2-5 years
Bank loans	294,990	69,975
Amounts falling due after more than 5 years
Bank loans	2,854,778	2,941,300
	3,255,760	3,081,250

18.	Deferred taxation

		2021
		£

	At beginning of year	(447,138)
	At end of year	(447,138)

The provision for deferred taxation is made up as follows:
	2021	2020
	£	£

Accelerated capital allowances

(447,138)

19.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

1,000 (2020 - 1,000) Ordinary shares shares of £1.00 each	1,000	1,000

Page 25

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

20.

Reserves

Revaluation reserve

The revaluation reserve consists of non-distributable reserves arising from cumulative historical revaluation profits and losses in respect of investment properties.

Other reserves

Other reserves are a capital redemption reserve that represents share capital redeemed by the shareholders.

Profit and loss account

The Profit and loss account consists of distributable reserves arising from cumulative historical profits and llosses less any distributions made.

21.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £32,516 (2020 - £27,268). Contributions totalling £6,014 (2020 - £5,987) were payable to the fund at the balance sheet date and are included in creditors.

Not later than 1 year	3,360	13,637
Later than 1 year and not later than 5 years	9,800	44,848
	13,160	58,485

Page 26

HERITAGE CARE HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

23.	Prior year adjustment
	During the year a misstatement of fixed asset investments was identified in the previously filed financial statements. The investment has been reclassified as a loan to an associated undertaking. The statement lines corrected were as follows:
		2020
		£


	Fixed asset investments	(1,743,562)
	Amounts owed by associated undertakings	1,743,562

24.	Related party transactions
	During the year, total dividends of £4,000 (2020 - £4,000) were paid to the directors. At the year end the Company was owed £4,247,601 (2020 - £4,084,688) by connected companies. The companies are connected by virtue of common ownership. At the year end the Company owed the directors £660,352 (2020 - £728,614). This is an unsecured interest free loan payable within a 5 year period.

25.	Controlling party

Mr & Mrs Hussain are the ultimate controlling party of the Company.

Page 27