CCCH 3 Propco Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 09814081 (England and Wales)

COUNTRY COURT CARE HOMES 3 PROPCO

LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

to

7

DIRECTORS:

A Kachra

A A Kachra

A Kachra

REGISTERED OFFICE:

c/o Duncan & Toplis Limited

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

REGISTERED NUMBER:

09814081 (England and Wales)

SENIOR STATUTORY AUDITOR:

Alistair Main FCA

AUDITORS:

Duncan & Toplis Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

FIXED ASSETS

Tangible assets

4

91,070,002

85,170,002

CURRENT ASSETS

Debtors

5

19,380,127

15,068,828

CREDITORS

Amounts falling due within one year

6

55,070,952

55,064,546

NET CURRENT LIABILITIES

(35,690,825

)

(39,995,718

)

TOTAL ASSETS LESS CURRENT LIABILITIES

55,379,177

45,174,284

PROVISIONS FOR LIABILITIES

8,985,473

7,925,277

NET ASSETS

46,393,704

37,249,007

CAPITAL AND RESERVES

Called up share capital

8

1

1

Revaluation reserve

9

37,146,575

32,484,409

Retained earnings

9,247,128

4,764,597

SHAREHOLDERS' FUNDS

46,393,704

37,249,007

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 5 November 2021 and were signed on its behalf by:

A Kachra - Director

1.	STATUTORY INFORMATION

Country Court Care Homes 3 Propco Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The significant accounting policies applied in the preparation of the financial statements are set out below. These policies have been consistently applied to all years unless otherwise stated.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents rentals charged to group entities for the use of the company's care homes and is recognised in accordance with the leases in place.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Costs includes costs directly attributable to making the asset capable of operating as intended. Depreciation on tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected lives on the following bases

Land and buildings

Nil

Plant and machinery

25% reducing balance

The directors consider the values shown in the accounts to fairly reflect the current value of the homes as required by FRS102 Section 17. Homes are shown in the accounts at the latest available valuation carried out by the directors. As per FRS102 Section 17 revaluations will be carried out with sufficient regularity such as to ensure that the asset's carrying amount in the statement of financial position does not materially differ from its fair value at the statement of financial position date.

In accordance with FRS102 Section 17, properties are valued using their existing use value, which is the value as fully equipped operational entities having regard to their trading potential.

Any changes to the existing use value are taken to the revaluation reserve within the statement of other comprehensive income unless they are considered permanent and are below cost when they are taken to the profit and loss account.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Leases

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease.

Rentals payable and receivable under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Going concern

The group bank loans are repayable on 31 December 2021. The directors, along with specialist advisors, are currently undertaking a refinancing exercise and have received initial bids from interested parties. At the date of signing these financial statements these bids are being reviewed and it is anticipated that detailed negotiations will follow with selected parties in order to be completing the refinancing in early 2022. As this will not be complete before the existing debts repayment date the directors are exercising their right to extend the existing facility to 18 July 2022 before repayment becomes due to allow sufficient time to conclude re-financing negotiations. At the date of signing these financial statements, and having taken their advisors opinions into consideration, the directors are satisfied that negotiations will be successfully concluded in due course and therefore continue to prepare these financial statements on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

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

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 April 2020

83,936,682

2,373,741

86,310,423

Additions

343,931

100,567

444,498

Revaluations

5,722,362

-

5,722,362

Reversal of impairments

56,377

-

56,377

At 31 March 2021

90,059,352

2,474,308

92,533,660

DEPRECIATION

At 1 April 2020

-

1,140,421

1,140,421

Charge for year

-

323,237

323,237

At 31 March 2021

-

1,463,658

1,463,658

NET BOOK VALUE

At 31 March 2021

90,059,352

1,010,650

91,070,002

At 31 March 2020

83,936,682

1,233,320

85,170,002

Cost or valuation at 31 March 2021 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 2017

8,307,711

-

8,307,711

Valuation in 2018

21,409,780

-

21,409,780

Valuation in 2020

10,692,193

-

10,692,193

Valuation in 2021

5,666,897

-

5,666,897

Cost

43,982,771

2,474,308

46,457,079

90,059,352

2,474,308

92,533,660

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2021

2020

£

£

Cost

43,982,771

43,526,998

The freehold properties were valued on an open market basis on 31 March 2021 by the directors, having taken suitable professional opinion with the trading properties being valued as trading entities.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Amounts owed by group undertakings

19,367,965

15,056,666

Other debtors

12,162

12,162

19,380,127

15,068,828

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

61,872

55,466

Amounts owed to group undertakings

55,009,080

55,009,080

55,070,952

55,064,546

7.	SECURED DEBTS

The company is party to a group subordinated debt assignment agreement and has given charges over it's freehold properties.

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

1

Ordinary

£1

1

1

9.

RESERVES

Revaluation

reserve

£

At 1 April 2020

32,484,409

Property revaluations

5,722,362

Deferred tax

(1,060,196

)

At 31 March 2021

37,146,575

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Alistair Main FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited, Statutory Auditor

11.	POST BALANCE SHEET EVENTS

On the 23 July 2021 the company sold three of its care homes which were then subsequently leased back from the new owners. As a result of this the group then repaid £51,000,000 from the group bank loans.

12.	ULTIMATE PARENT COMPANY

The company's parent company is Country Court Care Homes 3 SB Limited. Kachra Holdings Limited is regarded by the directors as being the company's ultimate parent company. The registered office address for both companies is: Enterprise Way, Pinchbeck, Spalding, Lincolnshire, PE11 3YR. Copies of the accounts for both companies can be viewed at Companies House.