FLORENCE HOUSE (STAFFORDSHIRE) LIMITED - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07841218 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 APRIL 2021

FOR

FLORENCE HOUSE (STAFFORDSHIRE) LIMITED

Page

Statement of Financial Position

1

Notes to the Financial Statements

2

to

8

FIXED ASSETS

Tangible assets

5

51,821

25,087

CURRENT ASSETS

Debtors

6

481,954

276,238

Cash at bank and in hand

160,495

301,236

642,449

577,474

CREDITORS

Amounts falling due within one year

7

(127,045

)

(122,596

)

NET CURRENT ASSETS

515,404

454,878

TOTAL ASSETS LESS CURRENT LIABILITIES

567,225

479,965

CREDITORS

Amounts falling due after more than one year

8

(42,500

)

-

PROVISIONS FOR LIABILITIES

(1,393

)

(1,393

)

NET ASSETS

523,332

478,572

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

523,232

478,472

523,332

478,572

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 June 2022 and were signed on its behalf by:

W Morris - Director

1.	STATUTORY INFORMATION

FLORENCE HOUSE (STAFFORDSHIRE) LIMITED is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

07841218

Registered office:

C/O Agnes and Arthur Limited

Moorland View

Bradeley

Stoke-on-Trent

Staffordshire

ST6 7NG

The principal activity of the company during the year was that of a residential care for the elderly.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The financial statements have been prepared on the going concern basis as the directors are confident that the company will continue in operational existence for the foreseeable future.

The going concern basis assumes that the company will continue to receive the support of its parent company, fellow subsidiaries, and the Group bankers.

The care home premises are owned by the parent company, Resimed Limited. The parent company is funded by bank lending of £5.3m at the year-end and was benefiting from a period of interest only repayments. Following the sale of two of the care homes after the year-end date, the group bank lending had reduced to £3.1m. From May 2022, the directors of Resimed Limited, have agreed with their lenders to begin to repay capital and interest on the lending which will significantly increase monthly cash outflow. The Group's forecast growth in occupancy and profits suggest that the Group can cashflow the loan repayments.

The parent company also has material HMRC liabilities; some of which will become due in September 2022 and some of which are provisional and not yet agreed via a settlement. The repayment period of these liabilities is unknown and this creates material uncertainty that may cast significant doubt on the parent company's ability to continue as a going concern. If the parent company were to cease, this company would be unable to trade and, as such, a material uncertainty relating to going concern exists within the company.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as described below.

As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual lives are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidence by disposals during current and prior accounting periods.

Revenue recognition

The company provides residential and care services to the elderly. The turnover shown in the profit and loss account represents the fees due for the services provided during the year.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

10% reducing balance

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Employee benefits

The company provides a range of benefits to employees. Short term benefits, including holiday pay, are recognised as an expense in the profit and loss account in the period in which they are incurred. The company operates a defined contribution plan for its employees. Amounts in respect of defined contribution plans are recognised as an expense in the profit and loss account when they are due.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 44 (2020 - 51 ) .

4.	AUDITORS' REMUNERATION

29.4.21

29.4.20

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

-

1,800

Auditors remuneration has been paid in the period by the parent company, Resimed Limited.

5.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 30 April 2020

48,057

Additions

32,868

At 29 April 2021

80,925

DEPRECIATION

At 30 April 2020

22,970

Charge for year

6,134

At 29 April 2021

29,104

NET BOOK VALUE

At 29 April 2021

51,821

At 29 April 2020

25,087

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

29.4.21

29.4.20

£

£

Trade debtors

8,447

27,423

Amounts owed by group undertakings

458,947

233,853

Other debtors

1,063

2,277

Prepayments and accrued income

13,497

12,685

481,954

276,238

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

29.4.21

29.4.20

£

£

Bank loans and overdrafts

7,500

-

Trade creditors

35,249

42,305

Amounts owed to group undertakings

1,004

1,228

Social security and other taxes

12,901

8,128

Other creditors

33,515

34,516

Accruals and deferred income

36,876

36,419

127,045

122,596

Composite Guarantee in favour of HSBC Bank PLC dated 28 June 2016 between the following companies; Resimed Limited, Haversham House Limited, Cloverfields Care Limited, Florence House (Staffordshire) Limited, Agnes and Arthur Limited and The Place Up Hanley Limited.

Unscheduled Mortgage Debenture dated 18 May 2015 in favour of HSBC Bank PLC incorporating a Fixed and Floating Charge over all the current and future assets of the company.

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of payment and are payable on demand.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

29.4.21

29.4.20

£

£

Bank loans - 1-2 years

10,000

-

Bank loans - 2-5 years

32,500

-

42,500

-

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Michelle Coates (Senior Statutory Auditor)

for and on behalf of DPC Accountants Ltd

However, the audit report contains the following:

Material uncertainty related 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.

We draw attention to note 13 in the financial statements which indicates events or conditions that indicate a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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

10.	RELATED PARTY DISCLOSURES

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

11.	EVENTS AFTER THE END OF THE REPORTING PERIOD

There were no material events after the end of the reporting period up to 29 June 2022, being the date of approval of the financial statements by the Board.

12.	ULTIMATE CONTROLLING PARTY

The company regards Resimed Limited, a company registered in England and Wales, as its ultimate parent undertaking. The consolidated financial statements can be obtained from Companies House.

13.	GOING CONCERN

The financial statements have been prepared on the going concern basis as the directors are confident that the company will continue in operational existence for the foreseeable future.

The going concern basis assumes that the company will continue to receive the support of its parent company, fellow subsidiaries, and the Group bankers.

The care home premises are owned by the parent company, Resimed Limited. The parent company is funded by bank lending of £5.3m at the year-end and was benefiting from a period of interest only repayments. Following the sale of two of the care homes after the year-end date, the group bank lending had reduced to £3.1m. From May 2022, the directors of Resimed Limited, have agreed with their lenders to begin to repay capital and interest on the lending which will significantly increase monthly cash outflow. The Group's forecast growth in occupancy and profits suggest that the Group can cashflow the loan repayments.

The parent company also has material HMRC liabilities; some of which will become due in September 2022 and some of which are provisional and not yet agreed via a settlement. The repayment period of these liabilities is unknown and this creates material uncertainty that may cast significant doubt on the parent company's ability to continue as a going concern. If the parent company were to cease, this company would be unable to trade and, as such, a material uncertainty relating to going concern exists within the company.