ASH PADDOCK HOMES LIMITED - Accounts to registrar (filleted)

REGISTERED NUMBER: 02314786 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

ASH PADDOCK HOMES LIMITED

Page

Statement of Financial Position

1

to

2

Notes to the Financial Statements

3

to

9

FIXED ASSETS

Tangible assets

4

1,869,788

1,912,558

CURRENT ASSETS

Debtors

5

235,740

313,791

CREDITORS

Amounts falling due within one year

6

(289,209

)

(119,186

)

NET CURRENT (LIABILITIES)/ASSETS

(53,469

)

194,605

TOTAL ASSETS LESS CURRENT
LIABILITIES

1,816,319

2,107,163

PROVISIONS FOR LIABILITIES

(2,518

)

(356

)

NET ASSETS

1,813,801

2,106,807

CAPITAL AND RESERVES

Called up share capital

200,000

Share premium

4,500

Non distributable reserve

564,640

Retained earnings

1,044,661

1,337,667

1,813,801

2,106,807

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 director and authorised for issue on 6 September 2022 and were signed by:

L D Cox - Director

1.	STATUTORY INFORMATION

ASH PADDOCK HOMES 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:

02314786

Registered office:

Nicholson House

Shakespeare Way

Whitchurch

SY13 1LJ

The principal activity of the company is that of the provision of residential and care services for the elderly.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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

Significant judgements and estimates

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 follows:

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 values are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidenced by disposals during current and prior accounting periods.

The tangible fixed assets are regularly revalued based on independent valuations which adopt value in use as the valuation basis. Value in use is determined by considering various factors such as EBITDA, occupancy levels and trading potential. As the valuations are performed at a particular point in time, they may be subject to fluctuation depending on current trading conditions. Due to this, the director regularly reviews the value in use to ensure that it is still appropriate.

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. Revenue is recognised in the period of care to which it is applicable.

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

-

25% on cost

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 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.

Tangible fixed assets are valued on a value in use basis as a fully operational entity including fixtures and fittings, tools and equipment held by the company and having regard to its trading potential. Due to the specialist nature of the valuations, no deferred tax has been provided on the increase in value.

Depreciation on land and buildings is not provided, as any uncharged depreciation for the year and the accumulated uncharged depreciation would be immaterial in aggregate, as a result of the estimated high residual value of the properties.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with 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 purpose 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 cash- generating 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 group of assets.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

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.

Employee benefits

The company provides a range of benefits to employees.

Short term benefits, including holiday pay, are recognised as an expenses in the profit and loss account in the period in which they are incurred

Going concern

The company temporarily closed the home on 12 October 2020 and expects to re-open later in 2022.

The company is a connected company of the Springcare Limited Group because they are both under common control of the director Mr L D Cox and his close family.

The Springcare Group has been affected by the Covid-19 pandemic, as it has the whole care sector. Sadly, despite our best efforts, a sharp increase in the loss on resident numbers was seen in April 2020 in our homes as the first wave of the virus spread across the country.

Since then we have seen smaller waves of Covid-19 but significantly smaller than the one in April 2020. We have seen a significant reduction in Covid-19 infections amongst residents and staff and business is returning to some form of normality due to the success of the vaccination programme.

Occupancy levels for the Springcare Limited group are increasing steadily which encourages us to believe that our forecasts are achievable.

The company therefore continues to adopt the going concern basis in preparing the financial statements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2020 - 25 ).

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

property

fittings

Totals

£

COST OR VALUATION

At 1 January 2021

1,805,416

496,901

2,302,317

Additions

-

20,669

Disposals

-

(23,968

)

(23,968

)

At 31 December 2021

1,805,416

493,602

2,299,018

DEPRECIATION

At 1 January 2021

-

389,759

Charge for year

-

63,439

Eliminated on disposal

-

(23,968

)

(23,968

)

At 31 December 2021

-

429,230

NET BOOK VALUE

At 31 December 2021

1,805,416

64,372

1,869,788

At 31 December 2020

1,805,416

107,142

1,912,558

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

31.12.21

31.12.20

£

Fixtures and fittings

29,787

83,004

29,787

83,004

The assets are secured under finance leases or hire purchase agreements taken out by a company or taken out by a connected company, Springcare Limited.

Cost or valuation at 31 December 2021 is represented by:

Fixtures

Freehold

and

property

fittings

Totals

£

Valuation in 2018

564,640

-

564,640

Cost

1,240,776

493,602

1,734,378

1,805,416

493,602

2,299,018

If tangible fixed assets had not been revalued it would have been included at the following historical cost:

31.12.21

31.12.20

£

Cost

1,734,378

1,737,677

Aggregate depreciation

429,230

389,759

The business was valued in April 2019 by Colliers International as a fully equipped operational entity, including fixtures, fittings, tools and equipment held by the company at the valuation date and having regard to its trading potential.

The valuations have been reviewed by the director as at 31 December 2021 after consideration of occupancy levels and specific trading situations. The director considers the above cost to be representative of fair value at the balance sheet date. The change in valuation has been represented by the revaluation of freehold property.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

Trade debtors

-

7,193

Amounts owed by group undertakings

126,876

157,225

Amounts due from connected

companies

104,483

109,274

Prepayments and accrued income

4,381

40,099

235,740

313,791

Amounts owed by group undertakings and connected companies are unsecured, interest free and are repayable on demand.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

Bank loans and overdrafts

37,705

37,021

Hire purchase contracts

-

399

Trade creditors

11,083

17,858

Tax

-

16,541

Social security and other taxes

-

3,360

Other creditors

1,975

1,976

Amounts due to connected

companies

234,448

27,307

Accruals and deferred income

3,998

14,724

289,209

119,186

There is a fixed and floating charge dated 21 December 2016 over the company's assets, in favour of Triodos Bank.

Amounts owed to group undertakings and connected companies are unsecured, interest free and are repayable on demand.

7.	OTHER FINANCIAL COMMITMENTS

The amount of commitments, guarantees and contingencies is £1,568 (2020: £5,716).

8.	EVENTS AFTER THE END OF THE REPORTING PERIOD

There were no other significant events up to the date of approval of the financial statements by the Board.

9.	ULTIMATE CONTROLLING PARTY

The ultimate parent company is Kingsview Homes Limited, which owned all of the issued share capital of the company throughout the current and prior year.

10.	GOING CONCERN

The company temporarily closed the home on 12 October 2020 and expects to re-open later in 2022.

The company is a connected company of the Springcare Limited Group because they are both under common control of the director Mr L D Cox and his close family.

The Springcare Group has been affected by the Covid-19 pandemic, as it has the whole care sector. Sadly, despite our best efforts, a sharp increase in the loss on resident numbers was seen in April 2020 in our homes as the first wave of the virus spread across the country.

Since then we have seen smaller waves of Covid-19 but significantly smaller than the one in April 2020. We have seen a significant reduction in Covid-19 infections amongst residents and staff and business is returning to some form of normality due to the success of the vaccination programme.

Occupancy levels for the Springcare Limited group are increasing steadily which encourages us to believe that our forecasts are achievable.

The company therefore continues to adopt the going concern basis in preparing the financial statements.

ASH PADDOCK HOMES LIMITED - Accounts to registrar (filleted) - small 18.2

ASH PADDOCK HOMES LIMITED - Accounts to registrar (filleted) - small 18.2