Heatherdene Limited iXBRL

Company Registration Number: 04325764

Heatherdene Limited

Reports and Financial Statements

for the financial year ended 31 December 2021

Heatherdene Limited

DIRECTOR AND OTHER INFORMATION

Director	Eugene Kavanagh
Company Registration Number	04325764
Registered Office and Business Address	Throwleigh Lodge, Ridgeway
	Horsell, Woking
	GU21 4QR
	United Kingdom
Independent Auditors	Lowry & Associates
	Chartered Accountants and Statutory Auditors
	70 Northumberland Road
	Ballsbridge
	Dublin 4
	D04 VH66
	Ireland
Bankers	National Westminster Bank PLC
	250 Bishopsgate
	London
	EC2M 4AA
	United Kingdom
Solicitors	A&L Goodbody LLP
	42-46 Fountain Street
	Belfast
	BT1 5EB
	United Kingdom

Heatherdene Limited

STRATEGIC REPORT

for the financial year ended 31 December 2021

The director presents their strategic report on the company for the financial year ended 31 December 2021.

Review of the Company's Business

The company's principal activity continued to be the provision of residential care for adults with learning and physical disabilities and sensory needs.

Principal Risks and Uncertainties

The Company has identified that the key risks and uncertainties the Company faces relate to the risk of a decrease in occupancy, the risk of increased salary costs and the potential increase in compliance requirements in accordance with company, health and safety, taxation and other legislation. The Company mitigates these risks as follows: The Company continually monitors the level of activity, prepares and monitors its budgets targets and projections; The Company ensures that increases in income are agreed in advance of increases in salary costs: and The Company closely monitors emerging changes to regulations and legislation on an on-going basis. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, service users and visitors to the property.

Development and Performance

Turnover has increased by 5.7% to £913,306 in the current financial year. The director believes that turnover should remain steady in the coming year as services adapt to manage the effects of the COVID-19 pandemic, and receive financial support from the government.

Financial Key Performance Indicators

The total assets of the business have increased by £3,422,657 to £8,884,486; the total liabilities have increased by £3,166,900 to £7,125,966 resulting in an increase in net assets of £255,757. The director believes that the financial position of the company is satisfactory.

Other Key Performance Indicators

A non-financial key performance indicator for the company is the occupancy level. This is reviewed on a weekly basis by management to ensure the profitability of the company and of the group.

On behalf of the board

___________________________
Eugene Kavanagh
Director
16 September 2022

Heatherdene Limited

DIRECTOR'S REPORT

for the financial year ended 31 December 2021

The director presents their report and the audited financial statements for the financial year ended 31 December 2021.

Principal Activity

The company's principal activity continued to be the provision of residential care for adults with learning and physical disabilities and sensory needs.

Results and Dividends

The profit for the financial year after providing for depreciation amounted to £255,757 (2020 - £198,056).

The director does not recommend payment of a dividend.

Director

The director who served during the financial year is as follows:

Eugene Kavanagh

There were no changes in shareholdings between 31 December 2021 and the date of signing the financial statements.

Future Developments

The company plans to continue its present activities and current trading levels. Employees are kept as fully informed as practicable about developments within the business.

Post-Balance Sheet Events

There have been no significant events affecting the company since the financial year-end.

Political Contributions

The company did not make any disclosable political donations in the current financial year.

Employee Engagement

Employees are kept as fully informed as practicable about developments within the business. It is the policy of the company to offer opportunities to all employees having regard to their aptitudes and abilities in relation to jobs available.

Statement of Director's Responsibilities

The director is responsible for preparing the Strategic Report, Director's 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) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the director must not approve the financial statements unless they 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 comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; -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 them to ensure that the financial statements comply with the Companies Act 2006. They 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.

Disclosure of Information to Auditor Each persons who is a director at the date of approval of this report confirms that: In so far as the director is aware: -there is no relevant audit information (information needed by the company's auditor in connection with preparing the auditor's report) of which the company's auditor is unaware, and -the director has taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Auditors

The auditors, Lowry & Associates, (Chartered Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

Financial risk management

The Company's operations expose it to a variety of financial risks that include liquidity risk, credit risk, interest rate risk and foreign exchange risk. The Company has risk management policies in place to manage the financial exposures. Liquidity risk: The Company maintains adequate bank facilities to ensure sufficient short term finance for continuing operations. Credit risk: The Company has implemented credit control policies that require appropriate checks on potential customers. Overall exposure to any customer is managed through credit limits. Interest rate risk: The Company manages its exposure to interest rate risk by maintaining an appropriate balance of fixed and variable rate debt. Foreign exchange risk: The Company undertakes a small number of foreign transactions, principally in euros. No hedging takes place.

On behalf of the board

___________________________

Eugene Kavanagh

Director

16 September 2022

INDEPENDENT AUDITOR'S REPORT

to the Shareholders of Heatherdene Limited

Report on the audit of the financial statements

Opinion

We have audited the financial statements of Heatherdene Limited ('the company') for the financial year ended 31 December 2021 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies set out in note . The financial reporting framework that has been applied in their preparation is applicable Law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements: -give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the financial 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 has 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 has performed, we has 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 the date when the financial statements are authorised for issue.

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

Other Information

The other information comprises the information included in the annual report other than the financial statements and our Auditor's Report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-	the Strategic Report and the 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 any 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
-	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 director for the financial statements

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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the 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 intend to liquidate the company or to cease operations, or has 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of laws & regulations and regulatory compliance, including conduct of business, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce costs and management bias in accounting estimates. Audit procedures performed by the group engagement team included: 1. Review of correspondence with and reports to the independent regulator, Care Quality Commission (‘CQC’); 2. Reviewed reporting to the CQC in respect of compliance and legal matters; 3. Review a sample of legal correspondence with legal advisors; 4. Enquiries of management and review of internal reports in so far as they related to the financial statements; 5. Obtain legal confirmations from legal advisors relating to material litigation and compliance matters; 6. Challenging assumptions and judgements made by management in its significant accounting estimates 7. Obtaining confirmations from third parties to confirm the existence of a sample of transactions; 8. Identifying and testing journal entries, including those posted with certain descriptions, posted and approved by the same   individual, backdated journals or posted by infrequent and unexpected users. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities for the audit of the financial statements is contained in the appendix to this report, located at page , which is to be read as an integral part of our report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

__________________________________

David Bolger (Senior Statutory Auditor)

for and on behalf of

LOWRY & ASSOCIATES

Chartered Accountants and Statutory Auditors

70 Northumberland Road

Ballsbridge

Dublin 4

D04 VH66

Ireland

16 September 2022

Heatherdene Limited

APPENDIX TO THE INDEPENDENT AUDITOR'S REPORT

Further information regarding the scope of our responsibilities as auditor

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

-

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

-	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

-	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

-

Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the company to cease to continue as a going concern.

-	Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Heatherdene Limited

PROFIT AND LOSS ACCOUNT

for the financial year ended 31 December 2021

		2021		2020
	Notes	£		£

Turnover	3	913,306		863,670
Cost of sales		(512,392)		(501,128)
		─────────		─────────
Gross profit		400,914		362,542
Administrative expenses		(109,279)		(125,488)
		─────────		─────────
Operating profit	4	291,635		237,054
Interest payable and similar expenses	5	(35,878)		(38,998)
		─────────		─────────
Profit before taxation		255,757		198,056
Tax on profit	7	-		-
		─────────		─────────
Profit for the financial year		255,757		198,056
		─────────		─────────
Total comprehensive income		255,757		198,056
		═════════		═════════

Heatherdene Limited

Company Registration Number: 04325764

BALANCE SHEET

as at 31 December 2021

			2021		2020
		Notes	£		£
Fixed Assets

Intangible assets		8	88,482		120,534
Tangible assets		9	1,072,037		1,076,301
			─────────		─────────
			1,160,519		1,196,835
			─────────		─────────
Current Assets

Debtors		10	7,706,572		4,254,853
Cash and cash equivalents			17,395		10,141
			─────────		─────────
			7,723,967		4,264,994
			─────────		─────────
Creditors: amounts falling due within one year		11	(6,653,866)		(3,442,349)
			─────────		─────────
Net Current Assets			1,070,101		822,645
			─────────		─────────
Total Assets less Current Liabilities			2,230,620		2,019,480
Creditors:

amounts falling due after more than one year		12	(427,100)		(469,167)
Provisions for liabilities		14	-		(2,550)
			─────────		─────────
Net Assets			1,803,520		1,547,763
			═════════		═════════
Capital and Reserves

Called up share capital		15	30,000		30,000
Share premium account			60,000		60,000
Retained earnings			1,713,520		1,457,763
			─────────		─────────
Equity attributable to owners of the company			1,803,520		1,547,763
			═════════		═════════
Approved by the Director and authorised for issue on 16 September 2022

________________________________
Eugene Kavanagh
Director

Heatherdene Limited

STATEMENT OF CHANGES IN EQUITY

as at 31 December 2021

	Called up	Share	Retained	Total
	share	premium	earnings
	capital	account
	£	£	£	£
At 1 January 2020	30,000	60,000	1,259,707	1,349,707
	─────────	─────────	─────────	─────────
Profit for the financial year	-	-	198,056	198,056
	─────────	─────────	─────────	─────────
At 31 December 2020	30,000	60,000	1,457,763	1,547,763
	─────────	─────────	─────────	─────────
Profit for the financial year	-	-	255,757	255,757
	─────────	─────────	─────────	─────────
At 31 December 2021	30,000	60,000	1,713,520	1,803,520
	═════════	═════════	═════════	═════════

Heatherdene Limited

NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 December 2021

1.	General Information
	Heatherdene Limited is a company limited by shares incorporated and registered in the United Kingdom. The registered number of the company is 04325764. The registered office of the company is Throwleigh Lodge, Ridgeway, Horsell, Woking, GU21 4QR, United Kingdom which is also the principal place of business of the company. The nature of the company's operations and its principal activities are set out in the Director's Report. The financial statements have been presented in Pound Sterling (£) which is also the functional currency of the company.

2.	Summary of Significant Accounting Policies
	The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.
	Statement of compliance
	The financial statements of the company for the financial year ended 31 December 2021 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.
	Basis of preparation
	The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
	Cash flow statement
	The company has availed of the exemption in FRS 102 from the requirement to prepare a Statement of Cash Flows because it is a subsidiary undertaking for which the consolidated financial statements are publicly available.
	Turnover
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
	Dividends
	Dividends to the company’s equity shareholders are recognised as a liability of the company when approved by the company’s shareholders.   Dividends on preference shares, which are classified as debt, are cumulative and payment is mandatory, and hence have been presented within ‘Interest payable and similar charges’.
	Judgements and key sources of estimation uncertainty
	The directors consider the accounting estimates and assumptions below to be its critical accounting estimates and judgements: Going Concern: The directors have prepared budgets and cash flows for a period of at least twelve months from the date of the approval of the financial statements which demonstrate that there is no material uncertainty regarding the company’s ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.
	Government grants
	Grants are recognised at fair value of the asset receivable using the accruals model when there is reasonable assurance that the grant will be received, and all attaching conditions will be complied with. Grants towards capital expenditure are credited to deferred income and are released to the profit and loss account over the expected useful life of the related assets, by equal annual instalments. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
	Intangible assets
	Goodwill
	Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Balance Sheet and amortised on a straight-line basis over its economic useful life of 20 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business.
	Tangible assets and depreciation
	Tangible assets are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible assets, less their estimated residual value, over their expected useful lives as follows:
		Land and buildings freehold	-	No depreciation
		Plant and machinery	-	15% Reducing balance
		Motor vehicles	-	25% Reducing balance
	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. Other financial assets including trade debtors arising from goods sold to customers on short-term credit, are initially measured at the undiscounted amount of cash receivable from that debtor, which is normally the invoice price.  If payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate, this constitutes a financing transaction, and the financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.  Subsequently, other financial assets are measured at amortised cost less impairment, where there is objective evidence of impairment.
	Cash and cash equivalents
	Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Balance Sheet bank overdrafts are shown within Creditors.
	Borrowing costs
	All loans made by the company are initially recorded at the amount of cash advanced plus transaction costs incurred, unless the arrangement constitutes, in effect, a financing transaction, in which case it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.  Subsequently loans made by the company are stated at amortised cost using the effective interest rate method less impairment, where there is objective evidence of impairment. All borrowings by the company are initially recorded at the amount of cash received less separately incurred transaction costs, unless the arrangement constitutes, in effect, a financing transaction, in which case it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.  Subsequently, borrowings are stated at amortised cost using the effective interest rate method.   The computation of amortised cost includes any issue costs, transaction costs and fees, and any discount or premium on settlement, and the effect of this is to amortise these amounts over the expected borrowing period.  Loans with no stated interest rate and repayable within one year or on demand are not amortised.  Loans and borrowings are classified as current assets or liabilities unless the borrower has an unconditional right to defer settlement of the liability for at least twelve months after the financial year end date.
	Provisions
	Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. Other financial liabilities, including trade creditors arising from goods purchased from suppliers on short-term credit, are initially measured at the undiscounted amount owed to the creditor, which is normally the invoice price. Liabilities that are settled within one year are not discounted. If payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate, this constitutes a financing transaction, and the financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.  Subsequently, other financial liabilities are measured at amortised cost.
	Employee benefits
	The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions to defined contribution plans are expensed in the period to which they relate. Short term benefits, including holiday pay, are recognised as an expense in the period in which employees have become entitled to the benefits as a result of service rendered to the company.
	Taxation and deferred taxation
	Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future.Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.
	Foreign currencies
	Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Profit and Loss Account.
	Ordinary share capital
	The ordinary share capital of the company is presented as equity.

3.	Turnover
	The whole of the company's turnover is attributable to its market in the United Kingdom and is derived from the principal activity of the provision of residential care for adults with learning and physical disabilities and sensory needs.

4.	Operating profit	2021	2020
		£	£
	Operating profit is stated after charging:
	Amortisation and impairments of intangible assets	32,052	32,052
	Depreciation of tangible assets	4,264	5,058
		═════════	═════════

5.	Interest payable and similar expenses	2021	2020
		£	£
	On bank loans and overdrafts	35,878	38,998
		═════════	═════════

6.	Employees and remuneration
	Number of employees
	The average number of persons employed (including executive director) during the financial year was as follows:
		2021	2020
		Number	Number
	Staff	20	21
		═════════	═════════
	The staff costs comprise:	2021	2020
		£	£
	Wages and salaries	488,351	476,526
		═════════	═════════

7.	Tax on profit
		2021	2020
		£	£
	Analysis of charge in the financial year
	Current tax:
	Corporation tax	-	-
		═════════	═════════
	Profit taxable at 0.00%	255,757	198,056
	No charge to tax arises as the company has availed of Group Relief.

8.	Intangible assets
		Goodwill	Total
		£	£
	Cost
	At 1 January 2021	641,048	641,048
		─────────	─────────
	At 31 December 2021	641,048	641,048
		─────────	─────────
	Amortisation
	At 1 January 2021	520,514	520,514
	Charge for financial year	32,052	32,052
		─────────	─────────
	At 31 December 2021	552,566	552,566
		─────────	─────────
	Net book value
	At 31 December 2021	88,482	88,482
		═════════	═════════
	At 31 December 2020	120,534	120,534
		═════════	═════════

9.	Tangible assets
		Land and	Plant and	Motor	Total
		buildings	machinery	vehicles
		freehold
		£	£	£	£
	Cost
	At 1 January 2021	1,048,586	96,345	22,960	1,167,891
		─────────	─────────	─────────	─────────
	At 31 December 2021	1,048,586	96,345	22,960	1,167,891
		─────────	─────────	─────────	─────────
	Depreciation
	At 1 January 2021	-	69,691	21,899	91,590
	Charge for the financial year	-	3,999	265	4,264
		─────────	─────────	─────────	─────────
	At 31 December 2021	-	73,690	22,164	95,854
		─────────	─────────	─────────	─────────
	Net book value
	At 31 December 2021	1,048,586	22,655	796	1,072,037
		═════════	═════════	═════════	═════════
	At 31 December 2020	1,048,586	26,654	1,061	1,076,301
		═════════	═════════	═════════	═════════

10.	Debtors	2021	2020
		£	£
	Trade debtors	(32,274)	78,842
	Amounts owed by group undertakings	7,689,317	4,129,362
	Prepayments and accrued income	49,529	46,649
		─────────	─────────
		7,706,572	4,254,853
		═════════	═════════

11.	Creditors	2021	2020
	Amounts falling due within one year	£	£
	Bank loan	69,414	69,414
	Trade creditors	4,651	8,848
	Amounts owed to group undertakings	6,294,295	3,042,948
	Taxation  (Note 13)	239,958	163,139
	Other creditors	33,142	53,109
	Accruals and deferred income	12,406	104,891
		─────────	─────────
		6,653,866	3,442,349
		═════════	═════════
	The repayment terms of trade creditors vary between on demand and ninety days. No interest is payable on trade creditors. Tax and social insurance are subject to the terms of the relevant legislation. Interest accrues on late payment at the rate of 1% per month. No interest was due at the financial year end date. The terms of the accruals are based on the underlying contracts.

12.	Creditors	2021	2020
	Amounts falling due after more than one year	£	£
	Bank Loans	427,100	469,167
		═════════	═════════
	Loans
	Repayable in one year or less, or on demand (Note 11)	69,414	69,414
	Repayable between one and two years	120,000	120,000
	Repayable between two and five years	180,000	180,000
	Repayable in five years or more	127,100	169,167
		─────────	─────────
		496,514	538,581
		═════════	═════════
	The bank borrowings are secured by intercompany guarantees, debenture charge on all assets of the company and a legal charge on the company's freehold property.

13.	Taxation	2021	2020
		£	£
	Creditors:
	VAT	2,592	3,661
	Corporation tax	2,550	-
	PAYE / NI	234,816	159,478
		─────────	─────────
		239,958	163,139
		═════════	═════════

14.	Provisions for liabilities
	The amounts provided for deferred taxation are analysed below:

15.	Share capital			2021	2020
				£	£
	Description	Number of shares	Value of units
	Allotted, called up and fully paid
	Ordinary Shares	30,000	£1 each	30,000	30,000
				═════════	═════════

16.	Capital commitments
	The company had no material capital commitments at the financial year-ended 31 December 2021.

17.	Related party transactions
	Transactions with group companies include short-term loan amount due (to)/from the related party £1,395,022 and £1,086,414 (2020).

18.	Parent company
	The company regards Wesley Limited as its parent company which is in turn owned by Ethika Healthcare Investments Limited at 51% and Hermes Trust at 49%. 100% of the share capital is held in trust for David McCabe.

19.	Post-Balance Sheet Events
	There have been no significant events affecting the company since the financial year-end.

HEATHERDENE LIMITED

SUPPLEMENTARY INFORMATION

RELATING TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

NOT COVERED BY THE REPORT OF THE AUDITORS

THE FOLLOWING PAGES DO NOT FORM PART OF THE AUDITED FINANCIAL STATEMENTS

Heatherdene Limited

SUPPLEMENTARY INFORMATION RELATING TO THE FINANCIAL STATEMENTS

TRADING STATEMENT

for the financial year ended 31 December 2021

	2021		2020
	£		£

Sales

Other income	881,868		829,790
Government grant income	31,438		33,880
	─────────		─────────
	913,306		863,670
	─────────		─────────
Cost of sales

Purchases	19,415		22,338
Direct costs	4,626		1,977
Wages and salaries	488,351		476,526
Subcontract costs	-		287
	─────────		─────────
	512,392		501,128
	─────────		─────────
Gross profit	400,914		362,542
	─────────		─────────
Gross profit Percentage	43.9%		42.0%
	─────────		─────────
Administrative expenses

Rates	8,271		10,841
Insurance	5,958		5,958
Light and heat	18,318		14,670
Cleaning	9,266		13,910
Repairs and maintenance	10,525		12,471
Printing, postage and stationery	1,698		2,856
Telephone	2,855		3,659
Computer costs	215		-
Hire of equipment	5,743		3,481
Motor expenses	1,128		670
Legal and professional	1,804		2,148
Accountancy	2,422		2,423
Bank charges	3,531		515
Bad debts	266		(2)
General expenses	639		12,945
Subscriptions	549		468
Exceptional administration items	(225)		1,365
Depreciation of tangible assets	4,264		5,058
Depreciation of intangible assets	32,052		32,052
	─────────		─────────
	109,279		125,488
	─────────		─────────
Finance

Bank interest paid	35,878		38,998
	─────────		─────────
Net profit	255,757		198,056
	═════════		═════════