Key Healthcare (Operations) Limited - Period Ending 2021-09-30
Key Healthcare (Operations) Limited - Period Ending 2021-09-30
Registration number:
for the
Year Ended
Key Healthcare (Operations) Limited
Contents
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Company Information |
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Director's Report |
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Strategic Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Key Healthcare (Operations) Limited
Company Information
|
Director |
R D Keyes |
|
Company secretary |
E J Keyes |
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Registered office |
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|
Bankers |
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Auditors |
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Key Healthcare (Operations) Limited
Director's Report for the Year Ended 30 September 2021
The director presents his report and the financial statements for the year ended 30 September 2021.
Director of the company
The director who held office during the year was as follows:
Future developments
The external commercial environment is expected to remain competitive. However, the director remains confident that occupancy has improved and the company will improve its current level of performance in the future and will continue to trade as a going concern.
Going concern
Key Healthcare continues to improve its performance by returning to historical occupancy levels of in excess of 85%. This will strengthen cash flow and liquidity within the group further reducing the overdraft to historic levels.
The company’s director continues to work closely with the bank, which continues to support the company and the director in pushing forward good commercial standards ensuring CQC compliance within the company. This will allow the company to repay loans to the bank monthly and equally allow the director to secure new funding via refinancing or private investor input.
The company continues to deliver sound monthly MI trading and maintains a strong balance sheet along with good Earnings Before Interest and Depreciation (EBITD).
The Covid Pandemic continues to bring uncertainty to the care sector however the director believes the company is in a better position to deal with any secondary outbreak. This is supported by weekly testing of all staff and monthly testing of residents. Daily temperature tests and the testing of new residents prior to admission will reduce the risk of the virus entering any of our homes. We have followed local and national health advice including Government guidelines. Finally, each home will continue to restrict third parties to each home until risk levels diminish.
Disclosure of information to the auditors
The director has taken the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.
Important non adjusting events after the financial period
In April 2022 Key Healthcare (Operations) Ltd suffered a fire at its Victoria House Care Centre Middlesbrough because of a resident’s act of arson. This resulted in damage to 21 bedrooms of which 16 were requiring reinstatement. It is envisaged that the works will be completed by March 2023. The company has agreed a cash settlement with its insurers which allows the company to move forward to reinstate the damaged bedrooms. The company is well placed to manage the lost income because of the fire and look forward to returning to historic occupancy levels by May 2023.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
.........................................
Director
Key Healthcare (Operations) Limited
Strategic Report for the Year Ended 30 September 2021
The director presents his strategic report for the year ended 30 September 2021. The comparative period is from 1 October 2019 to 30 September 2020.
Principal activity
The principal activity of the company is the running of nursing homes for the elderly.
Fair review of the business
The results for the year, which are set out in the profit and loss account, show turnover for the year of £5,238,673 (2020 - £4,614,127) and operating profit of £831,550 (2020 - £393,900). At 30 September 2021, the company had net assets of £2,784,794 (2020 - £2,325,751). The director considers that the results for the year and financial position of the company at the year end is satisfactory.
The director is pleased with the progress made by the business and results achieved during the year. These have been achieved in times of austerity and financial constraint.
Over the last twelve months the directors have seen the company recover from operation issues with our regulator CQC. Occupancy and revenues are returning to historical levels.
The impact of Covid-19 has compounded the recovery and has presented challenging environment for each of our care homes. Action plans and strict lockdown protocals have limited the potential damage to the company’s cash flow. However each home has been affected by Covid-19 and an increase in deaths has been registered compared to previous years. Government support through the IC grant has helped the company mitigate PPE issues. Limited staff have been furloughed due to under lying individual health issues.
Overall the company has weathered the Covid-19 virus and is well prepared for any additional phase presented.
Given the nature of the business, the director is of the opinion that key performance indicators are important. The company uses a number of indicators to monitor and improve development and performance of the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. The director does not consider the inclusion of an analysis, using key performance indicators, to be necessary to assist users of the financial statements in their understanding of the financial performance or the position of the company.
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to the continued provision of adequate government funding and the ongoing compliance with current and future legislation affecting the sector.
Key Healthcare (Operations) Limited
Strategic Report for the Year Ended 30 September 2021
Financial instruments
Objectives and policies
The director constantly monitors the group's trading results and revises the projections as appropriate to ensure that the company can meet its future obligations as they fall due.
Price risk, credit risk, liquidity risk and cash flow risk
The company is exposed to the usual credit and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that price and liquidity risks are minimised by the predetermination of the funding facilities and terms.
In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009', the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.
The company has sufficient resources available and the director has prepared forecasts for the next 12 months that indicate that this will continue to be the case. The director therefore has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and has continued to adopt the going concern basis in preparing the financial statements.
Approved by the
.........................................
Director
Key Healthcare (Operations) Limited
Statement of Director's Responsibilities
The director is responsible for preparing the Director's Report, Strategic Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:
• | select suitable accounting policies and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Key Healthcare (Operations) Limited
Independent Auditor's Report to the Members of Key Healthcare (Operations) Limited
Opinion
We have audited the financial statements of Key Healthcare (Operations) Limited (the 'company') for the year ended 30 September 2021, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 September 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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.
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Key Healthcare (Operations) Limited
Independent Auditor's Report to the Members of Key Healthcare (Operations) Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities set out on page 5, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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.
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.
Key Healthcare (Operations) Limited
Independent Auditor's Report to the Members of Key Healthcare (Operations) Limited
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.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Key Healthcare (Operations) Limited
Profit and Loss Account for the Year Ended 30 September 2021
|
Note |
2021 |
2020 |
|
|
Turnover |
|
|
|
|
Other income |
452,089 |
242,169 |
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Exceptional items |
(96,214) |
(193,854) |
|
|
Other operating income |
- |
|
|
|
Operating profit |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
Key Healthcare (Operations) Limited
Statement of Comprehensive Income for the Year Ended 30 September 2021
|
2021 |
2020 |
|
|
Profit for the year |
|
|
|
Unrealised deficit on revaluation of properties |
- |
( |
|
Total comprehensive income for the year |
|
( |
Key Healthcare (Operations) Limited
(Registration number: 04321969)
Balance Sheet as at 30 September 2021
|
Note |
2021 |
2020 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors: Amounts falling due within one year |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year before current loans and borrowings |
( |
( |
|
|
Net current assets before current loans and borrowings |
|
|
|
|
Loans and borrowings falling due within one year |
(691,775) |
(6,353,907) |
|
|
Net current assets / (liabilities) |
21,820 |
(5,929,020) |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Revaluation reserve |
|
|
|
|
Retained earnings |
|
|
|
|
Total equity |
|
|
Approved and authorised by the
Director
Key Healthcare (Operations) Limited
Statement of Changes in Equity for the Year Ended 30 September 2021
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
|
At 1 October 2020 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
At 30 September 2021 |
|
|
|
|
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
|
At 1 October 2019 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Other comprehensive income |
- |
( |
- |
( |
|
Dividends |
- |
- |
( |
( |
|
At 30 September 2020 |
|
|
|
|
Key Healthcare (Operations) Limited
Statement of Cash Flows for the Year Ended 30 September 2021
|
Note |
2021 |
2020 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Finance costs |
|
|
|
|
Taxation |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Increase in trade and other receivables |
( |
( |
|
|
Increase in trade and other payables |
|
|
|
|
Cash generated from operations |
|
|
|
|
Income taxes (paid)/received |
( |
|
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from bank borrowing draw downs |
5,665,000 |
- |
|
|
Repayment of bank borrowing |
(5,694,705) |
(16,930) |
|
|
Repayment of other borrowing |
(17,177) |
(79,621) |
|
|
Dividends paid |
- |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at the beginning of the period |
( |
( |
|
|
Cash and cash equivalents at the end of the period |
(510,639) |
(641,157) |
|
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
|
General information |
The address of its registered office is:
The company is a private limited company, incorporated and domiciled in England and Wales.
|
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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.
Going concern
After reviewing the company's forecasts and projections, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
Key Healthcare continues to improve its performance by returning to historical occupancy levels of in excess of 85%. This will strengthen cash flow and liquidity within the company further reducing the overdraft to historical levels.
The company’s director continues to work closely with the bank, which continues to support the company and the director in pushing forward good commercial standards ensuring CQC compliance within the company. This will allow the company to repay loans to the bank monthly and equally allow the director to secure new funding via refinancing or private investor input.
The company continues to deliver sound monthly MI trading and maintains a strong balance sheet along with good Earnings Before Interest and Depreciation (EBITD).
The Covid Pandemic continues to bring uncertainty to the care sector however the director believes the company is in a better position to deal with any secondary outbreak. This is supported by weekly testing of all staff and monthly testing of residents. Daily temperature tests and the testing of new residents prior to admission will reduce the risk of the virus entering any of our homes. We have followed local and national health advice including Government guidelines. Finally, each home will continue to restrict third parties to each home until risk levels diminish.
The company therefore continues to adopt the going concern basis in preparing its financial statements.
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
Judgements and estimation uncertainty
These financial statements do not contain any significant judgements or estimation uncertainty. |
Revenue recognition
Turnover represents the amounts receivable during the year for the provision of care services. Where the amount received relates to a period which covers the balance sheet date, that amount is apportioned over the period to which it relates.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
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.
Tangible assets
Tangible assets is stated in the balance sheet 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 over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold property |
Nil |
|
Furniture, fittings and equipment |
15% straight line |
No depreciation is provided on freehold properties as it is the company's policy to maintain these assets so that they keep their previously assessed standard of performance. As the useful economic lives of these assets are of such a length and the residual values are such that they are not materially different from the carrying amount any depreciation would not be material.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
Trade debtors
Trade debtors are amounts due from customers for 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.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
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.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due.
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
Financial instruments
Classification
Recognition and measurement
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Impairment
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.
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
|
Revenue |
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
|
Other income |
|
2021 |
2020 |
|
|
Other income |
|
|
Other income includes government grants for covid costs.
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2021 |
2020 |
|
|
Miscellaneous other operating income |
- |
|
|
Operating profit |
Arrived at after charging
|
2021 |
2020 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
- |
|
Exceptional items |
|
2021 |
2020 |
|
|
Exceptional expenses |
96,214 |
193,854 |
Exceptional costs in the current and prior year consist of non-recurring professional fees.
|
Auditors' remuneration |
|
2021 |
2020 |
|
|
Audit of the financial statements |
|
|
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
|
2021 |
2020 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Other employee expense |
40,890 |
23,178 |
|
|
|
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
|
2021 |
2020 |
|
|
Administration and support |
|
|
|
Other departments |
|
|
|
|
|
|
Interest payable and similar expenses |
|
2021 |
2020 |
|
|
Interest on bank overdrafts and borrowings |
|
|
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2021 |
2020 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
|
|
91,040 |
25,659 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2020 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2021 |
2020 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
|
|
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2021 |
Liability |
|
Fixed asset timing differences |
|
|
Short term timing differences |
( |
|
|
|
2020 |
Liability |
|
Fixed asset timing differences |
|
|
Short term timing differences |
( |
|
|
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
|
Tangible assets |
|
Land and buildings |
Furniture, fittings and equipment |
Total |
|
|
Cost or valuation |
|||
|
At 1 October 2020 |
|
|
|
|
Additions |
|
|
|
|
At 30 September 2021 |
|
|
|
|
Depreciation |
|||
|
At 1 October 2020 |
- |
|
|
|
Charge for the year |
- |
|
|
|
At 30 September 2021 |
- |
|
|
|
Carrying amount |
|||
|
At 30 September 2021 |
|
|
|
|
At 30 September 2020 |
|
|
|
Freehold property is not depreciated. The freehold land and buildings were valued at £8,200,000 including plant, on an open market basis for existing use by a firm of independent Chartered Surveyors (Knight Frank) on 4 June 2019. Whilst the company no longer has a revaluation policy the impairment of the property has been reflected in the carrying value. If these properties were sold for their revalued amounts it would be necessary to replace them with similar property, and rollover relief against tax on the gain would be available. Accordingly, no timing differences arise and no provision has been made for deferred tax in respect of the revaluation.
Comparable historical cost for the freehold land and buildings and associated plant and machinery included at a valuation was £6,606,344 (2020 - £6,486,463) and accumulated depreciation thereon was £786,570 (2020 - £729,728).
|
Stocks |
|
2021 |
2020 |
|
|
Inventories |
|
|
|
Debtors |
|
Note |
2021 |
2020 |
|
|
Trade debtors |
|
|
|
|
Receivables from related parties |
|
|
|
|
Accrued income |
|
|
|
|
Other receivables |
|
|
|
|
Prepayments |
|
|
|
|
|
|
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
|
Creditors |
|
Note |
2021 |
2020 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
Corporation tax liability |
157,282 |
158,294 |
|
|
1,466,810 |
6,985,967 |
||
|
Due after one year |
|||
|
Loans and borrowings |
|
- |
|
Loans and borrowings |
|
2021 |
2020 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
Bank overdrafts |
|
|
|
Other borrowings |
- |
|
|
|
|
|
|
2021 |
2020 |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
- |
The bank loan is secured over the properties of the company. The bank loan is repayable in monthly instalments commencing in January 2022, with the final repayment due in June 2024. Interest in payable at 3% above the Bank of England base rate.
|
Share capital |
Allotted, called up and fully paid shares
|
2021 |
2020 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
0.95 |
|
0.95 |
|
|
|
0.05 |
|
0.05 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
The ordinary A and B shares rank pari passu in all respects, other than dividend rights. |
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
- |
|
9,601 |
49,384 |
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
|
2021 |
2020 |
|
|
Dividends paid |
- |
40,000 |
|
Contingent liabilities |
The company has entered into a cross guarantee arrangement (with respect of borrowings from the same bank) with Key Healthcare (St Helens) Limited, a company under common control. The amount guaranteed is £2,054,597 (2020 - £2,097,521).
|
Related party transactions |
During the year, the company made the following related party transactions:
At 30 September 2021, the company was owed £171,482 (2020 - £137,431) from Key Healthcare (St Helens) Limited, a company under common control.
At 30 September 2021, the company was owed £578,129 (2020 - £516,129) by director shareholder R Keyes and his spouse E Keyes. The maximum amount overdrawn in the year was £578,129 (2020 - £516,129). No interest was charged on the loan during the year and the loan has no fixed repayment terms.
|
Analysis of changes in net debt |
Key Healthcare (Operations) Limited
Notes to the Financial Statements for the Year Ended 30 September 2021
|
At 1 October 2020 |
Financing cash flows |
Other non-cash changes |
At 30 September 2021 |
|
|
Cash and cash equivalents |
||||
|
Cash |
868 |
461 |
- |
1,329 |
|
Overdrafts |
(642,025) |
130,057 |
- |
(511,968) |
|
(641,157) |
130,518 |
- |
(510,639) |
|
|
Borrowings |
||||
|
Long term borrowings |
- |
(5,485,193) |
- |
(5,485,193) |
|
Short term borrowings |
(5,711,882) |
5,532,075 |
- |
(179,807) |
|
(5,711,882) |
46,882 |
- |
(5,665,000) |
|
|
( |
|
- |
( |
|
|
|
||||
|
Parent and ultimate parent undertaking |
The ultimate controlling party is
|
Non adjusting events after the financial period |
|
|