R H Independent Healthcare Limited Company accounts
R H Independent Healthcare Limited Company accounts
COMPANY REGISTRATION NUMBER:
SC110004
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For the year ended |
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Financial Statements |
Year ended 31 December 2021
Contents |
Page |
Officers and professional advisers |
1 |
Strategic report |
2 |
Directors' report |
4 |
Independent auditor's report to the members |
6 |
Statement of income and retained earnings |
10 |
Statement of financial position |
11 |
Statement of cash flows |
12 |
Notes to the financial statements |
13 |
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Officers and Professional Advisers |
The board of directors |
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Registered office |
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Auditor |
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Chartered accountants & statutory auditor |
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Enterprise House |
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38 Tyndall Court |
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Commerce Road |
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Lynch Wood |
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Peterborough |
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Cambridgeshire |
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PE2 6LR |
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Strategic Report |
Year ended 31 December 2021
The directors present the strategic report and the financial statements for the year ended 31 December 2021. Business review R H Independent Limited owns and operates an 97 bed care home regulated by the regulated by the Care Inspectorate. The Home's Care Inspectorate rating was Adequate throughout the period. Revenue decreased in the year from £2,867,000 to £2,800,000 despite the COVID-19 pandemic's impact on the care sector and occupancy increasing from 74% to 85%. The average weekly fee received during the year increased from £768 to £821 per resident. As part of the UK government's response to the pandemic, the company received grants totalling £100,067 (2020: £15,042), to cover the additional costs incurred in relation to PPE and increased staff costs. This translated into a loss before taxation of £268,000 (2020; £282,000 loss). At the year end the company's loans were due for repayment within one year and therefore the loan balances have moved from long term to short term creditors. The company is in the process of refinancing the loan. Principal risks and uncertainties Management monitors risks on a weekly and monthly basis. The primary concern of the management is the quality of care. There are dedicated regional managers and Operational Directors responsible for supporting the Home in provision of high quality care services. The major financial risk to the company is the increase in its cost base, primarily relating to the Scottish Living Wage. The Company is exposed to credit risk with its customers, albeit major customers are public sector, and therefore with limited credit risk. Pricing risk is limited to the risk associated with negotiating annual price increases. Liquidity and cashflow risk could arise in the event of a downturn in trading. However, in this event, sister companies in the group can provide liquidity if required. The company is exposed to finance risk due to its exposure to third party lenders and borrowings in the Company. Staffing remains a key risk as there is a nationwide shortage of nurses and care staff. Cost inflation also remains a risk for the business. Financial and other key performance indicators The key financial and operational performance indicators monitored by management include regulatory reviews, internal quality reviews, occupancy ratios, average weekly fees and cost to revenue ratios. During 2021 the pandemic continued, and restrictions affected the care home industry in particular. This had a significant impact on the market and the company. Occupancy was impacted and costs increased through increased PPE and sickness costs, as well as the investments we made to make our homes more resilient to future waves of the virus. We received support from government in terms of grants and other additional funding which helped offset the negative financial impact of the virus. The overall effect of the virus remains unclear.
This report was approved by the board of directors on 30 September 2022 and signed on behalf of the board by:
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Director |
Registered office: |
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Directors' Report |
Year ended 31 December 2021
The directors present their report and the financial statements of the company for the year ended
31 December 2021
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Directors
The directors who served the company during the year were as follows:
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Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
Directors' responsibilities statement
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
30 September 2022
and signed on behalf of the board by:
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Director |
Registered office: |
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Independent Auditor's Report to the Members of
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Year ended 31 December 2021
Opinion
Basis for 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.
Other information
Opinions on other matters 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 the directors' 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 the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Responsibilities of directors
Auditor's responsibilities for the audit of the financial statements
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.
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(Senior Statutory Auditor) |
For and on behalf of |
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Chartered accountants & statutory auditor |
Enterprise House |
38 Tyndall Court |
Commerce Road |
Lynch Wood |
Peterborough |
Cambridgeshire |
PE2 6LR |
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Statement of Income and Retained Earnings |
Year ended 31 December 2021
2021 |
2020 |
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Note |
£ |
£ |
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Turnover |
4 |
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Cost of sales |
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------------ |
------------ |
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Gross profit |
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Administrative expenses |
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Other operating income |
6 |
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Exceptional PAYE/NI provision |
– |
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--------- |
--------- |
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Operating profit/(loss) |
7 |
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(
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Other interest receivable and similar income |
11 |
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Interest payable and similar expenses |
12 |
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--------- |
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Loss before taxation |
(
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(
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Tax on loss |
13 |
– |
(
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--------- |
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Loss for the financial year and total comprehensive income |
(
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(
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Retained earnings at the start of the year |
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Retained earnings at the end of the year |
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All the activities of the company are from continuing operations.
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Statement of Financial Position |
2021 |
2020 |
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Note |
£ |
£ |
Fixed assets
Tangible assets |
14 |
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Current assets
Debtors |
15 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year |
16 |
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Net current (liabilities)/assets |
(
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Total assets less current liabilities |
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Creditors: amounts falling due after more than one year |
17 |
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Provisions |
19 |
– |
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Net assets |
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Capital and reserves
Called up share capital |
21 |
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Other reserves, including the fair value reserve |
22 |
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Profit and loss account |
22 |
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Shareholders funds |
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These financial statements were approved by the
board of directors
and authorised for issue on
30 September 2022
, and are signed on behalf of the board by:
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Director |
Company registration number:
SC110004
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Statement of Cash Flows |
Year ended 31 December 2021
2021 |
2020 |
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£ |
£ |
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Cash flows from operating activities
Loss for the financial year |
(
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(
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Adjustments for: |
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Depreciation of tangible assets |
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Government grant income |
(
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(
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Other interest receivable and similar income |
(
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(
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Interest payable and similar expenses |
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Tax on loss |
– |
(
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Accrued expenses/(income) |
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(
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Changes in: |
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Trade and other debtors |
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Trade and other creditors |
(
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Provisions and employee benefits |
(
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--------- |
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Cash generated from operations |
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Interest paid |
(
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(
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Interest received |
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Tax received |
– |
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--------- |
--------- |
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Net cash (used in)/from operating activities |
(
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--------- |
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Cash flows from investing activities
Purchase of tangible assets |
(
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(
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--------- |
--------- |
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Net cash used in investing activities |
(
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(
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--------- |
--------- |
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Cash flows from financing activities
Proceeds from borrowings |
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– |
Proceeds from loans from group undertakings |
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(
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Government grant income |
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Payments of finance lease liabilities |
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– |
--------- |
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Net cash from/(used in) financing activities |
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(
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Net increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of year |
206,345 |
88,175 |
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Cash and cash equivalents at end of year |
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Notes to the Financial Statements |
Year ended 31 December 2021
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Raywards House, Motherwell Road, Airdrie, ML6 7HP.
2.
Statement of compliance
3.
Accounting policies
Basis of preparation
Going concern
Judgements and key sources of estimation uncertainty
Revenue recognition
Income tax
Tangible assets
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property |
- |
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Fixtures and fittings |
- |
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Motor vehicles |
- |
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Finance leases and hire purchase contracts
Government grants
Provisions
Financial instruments
4.
Turnover
Turnover arises from:
2021 |
2020 |
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£ |
£ |
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Rendering of services |
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------------ |
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The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Exceptional PAYE/NI provision
The company had previously entered into an EFURBS, which HMRC have since challenged and subsequently issued an Advanced Payment Notice which the company settled.
6.
Other operating income
2021 |
2020 |
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£ |
£ |
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Government grant income |
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Other operating income |
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--------- |
-------- |
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7.
Operating profit
Operating profit or loss is stated after charging:
2021 |
2020 |
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£ |
£ |
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Depreciation of tangible assets |
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Impairment of trade debtors |
– |
50,280 |
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8.
Auditor's remuneration
2021 |
2020 |
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£ |
£ |
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Fees payable for the audit of the financial statements |
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------- |
------- |
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9.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2021 |
2020 |
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No. |
No. |
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Production staff |
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– |
---- |
---- |
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The aggregate payroll costs incurred during the year, relating to the above, were:
2021 |
2020 |
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£ |
£ |
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Wages and salaries |
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– |
Social security costs |
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– |
------------ |
---- |
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– |
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Employees and their contracts of employment were previously TUPE'd to a third party labour provider and these costs are treated as subcontract costs. The employees were transferred back to the company in 2021. The employee numbers and costs in the comparatives reflect this.
10.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2021 |
2020 |
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£ |
£ |
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Remuneration |
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– |
-------- |
---- |
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11.
Other interest receivable and similar income
2021 |
2020 |
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£ |
£ |
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Interest on cash and cash equivalents |
– |
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Interest from group undertakings |
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------- |
------- |
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------- |
------- |
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12.
Interest payable and similar expenses
2021 |
2020 |
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£ |
£ |
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Interest on banks loans and overdrafts |
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Interest on obligations under finance leases and hire purchase contracts |
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Interest due to group undertakings |
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--------- |
--------- |
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--------- |
--------- |
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13.
Tax on loss
Major components of tax income
2021 |
2020 |
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£ |
£ |
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Current tax:
Adjustments in respect of prior periods |
– |
(
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---- |
--------- |
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Tax on loss |
– |
(
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---- |
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Reconciliation of tax income
The tax assessed on the loss on ordinary activities for the year is higher than (2020: lower than) the
standard rate of corporation tax in the UK
of
19
% (2020:
19
%).
2021 |
2020 |
|
£ |
£ |
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Loss on ordinary activities before taxation |
(
|
(
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--------- |
--------- |
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Loss on ordinary activities by rate of tax |
(
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(
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Adjustment to tax charge in respect of prior periods |
– |
(
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Unused tax losses |
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--------- |
--------- |
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Tax on loss |
– |
(
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--------- |
--------- |
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14.
Tangible assets
Freehold property |
Fixtures and fittings |
Motor vehicles |
Total |
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£ |
£ |
£ |
£ |
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Cost |
||||
At 1 January 2021 |
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Additions |
– |
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– |
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------------ |
--------- |
-------- |
------------ |
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At 31 December 2021 |
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------------ |
--------- |
-------- |
------------ |
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Depreciation |
||||
At 1 January 2021 |
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Charge for the year |
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– |
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------------ |
--------- |
-------- |
------------ |
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At 31 December 2021 |
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------------ |
--------- |
-------- |
------------ |
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Carrying amount |
||||
At 31 December 2021 |
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------------ |
--------- |
-------- |
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At 31 December 2020 |
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------------ |
--------- |
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15.
Debtors
2021 |
2020 |
|
£ |
£ |
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Trade debtors |
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Amounts owed by group undertakings |
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Prepayments and accrued income |
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------------ |
------------ |
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------------ |
------------ |
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16.
Creditors:
amounts falling due within one year
2021 |
2020 |
|
£ |
£ |
|
Bank loans and overdrafts |
|
– |
Trade creditors |
|
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Amounts owed to group undertakings |
|
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Accruals and deferred income |
|
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Social security and other taxes |
|
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Obligations under finance leases and hire purchase contracts |
|
– |
Other creditors |
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------------ |
------------ |
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------------ |
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Bank loans are secured by a fixed and floating charge over all of the company's assets.
17.
Creditors:
amounts falling due after more than one year
2021 |
2020 |
|
£ |
£ |
|
Bank loans and overdrafts |
– |
|
Obligations under finance leases and hire purchase contracts |
|
– |
-------- |
------------ |
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-------- |
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Bank loans are secured by a fixed and floating charge over all of the company's assets.
18.
Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2021 |
2020 |
|
£ |
£ |
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Not later than 1 year |
|
– |
Later than 1 year and not later than 5 years |
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– |
-------- |
---- |
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– |
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Less: future finance charges |
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– |
-------- |
---- |
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Present value of minimum lease payments |
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– |
-------- |
---- |
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19.
Provisions
Provisions |
|
£ |
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At 1 January 2021 |
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Additions |
(
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--------- |
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At 31 December 2021 |
– |
--------- |
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Provision has been made in respect of legal action being taken against the company by the family member of a former resident of the care home.
20.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
2021 |
2020 |
|
£ |
£ |
|
Recognised in other operating income:
Government grants recognised directly in income |
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--------- |
-------- |
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21.
Called up share capital
Issued, called up and fully paid
2021 |
2020 |
|||
No. |
£ |
No. |
£ |
|
|
|
85 |
|
85 |
---- |
---- |
---- |
---- |
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22.
Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
23.
Analysis of changes in net debt
At 1 Jan 2021 |
Cash flows |
At 31 Dec 2021 |
|
£ |
£ |
£ |
|
Cash at bank and in hand |
|
34,680 |
|
Debt due within one year |
(3,468,317) |
(3,250,295) |
(6,718,612) |
Debt due after one year |
(2,777,694) |
2,754,161 |
(23,533) |
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(
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(
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(
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24.
Related party transactions
The company paid key management remuneration totalling £28,381 (2020 - £27,519). The company has taken exemption under FRS102 from disclosing transactions with wholly owned members of the same group.
25.
Controlling party
The company was under the control of the Trustees of the Prabhdyal Sodhi Overseas Settlement throughout the year, an entity based in Gibraltar. The immediate parent company is Browgil Limited, a company incorporated in England & Wales. The ultimate parent company is Lansbury Limited, a company incorporated in Gibraltar.