REFLECTIONS_CARE_HOME_LIM - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

Reflections Care Home Limited is a private company limited by shares incorporated in England and Wales. The registered office is Berkley Care Group, The Pavilion, Ashlyns Hall, Chesham Road, Berkhamsted, HP4 2ST.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

At the time of approving financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.true

In forming his opinion the director has taken into consideration the net current liability position, which has arisen due to the ageing of the company's bank loan, which has been repaid subsequent to the balance sheet date with support from a fellow group company, following a change of ownership.

Turnover represents amounts attributable to the year, exclusive of Value Added Tax, in respect of rents receivable for the period.

Freehold investment property, which represents a completed care home held for use in an operating lease, is included in the balance sheet at its open market value and is not depreciated.

Cash and cash equivalents are basic financial assets and represent cash in hand and deposits held at call with banks.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price. Financial assets classified as receivable within one year are not amortised.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are enacted or substantively enacted at the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

During the current and preceding accounting periods, the average monthly number of staff employed by the company was nil.

The latest valuation of the investment property was made as at September 2021 by Prina Shah MRICS and Henry Harris MRICS of Cushman & Wakefield on an open market for existing use basis with subsequent additions recorded at cost pending external valuation. It is the opinion of the director that the carrying value stated above is a fair reflection of the market value of the property at the balance sheet date.

The bank loan is secured by way of a debenture incorporating a fixed and floating charge covering the property and undertaking of the company.

Subsequent to the balance sheet date the bank loan has been repaid with group support, following a change of ownership.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Deferred tax assets and liabilities have been calculated at a rate of 25% (2021: 19%).

Included within retained earnings is a non distributable amount of £6,709,285 (2021: £7,231,424) relating to the revaluation of investment property, stated net of the related deferred tax liability.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The company is party to unlimited cross guarantees, in favour of Bank Leumi (UK) plc, in respect of certain borrowings of all companies in the group headed by Burcot Holdings Limited and of Hartwood Care (2) Limited, a fellow subsidiary undertaking of the wider group headed by Cinnamon Care Homes LP. At 31 March 2022, the net borrowings encompassed by the cross guarantee amounted to £15,885,313 (2021: £15,885,313).

Following the repayment of the bank loan subsequent to the balance sheet date, as disclosed in note 5, the company has been released from the cross guarantee.

The company has taken advantage of the available exemption conferred by Section 1AC.35 of FRS 102 not to disclose transactions with wholly owned members of the group.

The immediate parent undertaking of the company is Burcot Holdings Limited by virtue of its beneficial shareholding. The registered address of the immediate parent company is Berkley Care Group, The Pavilion, Ashlyns Hall, Chesham Road, Berkhamsted, England, HP4 2ST.