EASTCOTE_CARE_HOME_LIMITE - 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.

Eastcote Care Home Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old House, 64 The Avenue, Egham, TW20 9AD.

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. The principal accounting policies adopted are set out below.

The company has not had any income in the period, in line with the director’s expectations during thetrue period of construction prior to commencing trade. The director is confident in the long term profitability of the business beyond the initial start up period, and has no reason to doubt the intention of funders and investors to continue to provide financial support during this phase to enable the company to meet its obligations as they fall due. Accordingly the financial statements have been prepared on a going concern basis.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Assets under construction            Nil

No depreciation is provided for on assets under construction as the asset has not been brought into use. Capitalised values have been based on the purchase or construction price including related legal, professional and consultancy expenditure, bank interest and charges capitalised and any irrecoverable VAT. The value is reviewed at the balance sheet date and any permanent diminution in value is provided for through the profit and loss account. At completion date, assets under construction are transferred to investment properties.

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.

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

Subsequent to the balance sheet date the loan converted to an investment loan with repayments scheduled to commence in June 2023 with a bullet repayment in April 2024.

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

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 initial activities of the company are funded by way of loans from its immediate parent undertaking, Eastcote Holdings Limited.

At the balance sheet date, the company owed £4,083,351 (2020: £4,233,351) to Eastcote Holdings Limited. The balance is interest free and repayable on demand, however in view of the longer term nature of advances to the company by Eastcote Holdings Limited it has been classified as falling due after more than one year.

Notional interest charges on interest free advances between related entities have been accrued where material, as required by FRS 102, and are presented in other creditors falling due after more than one year in the sum of £230,000 (2020: £149,000). The settlement of such interest is subordinated to advances from external funders.

At the balance sheet date the company owed £83,090 to (2020: owed £52,673 from) Eastcote Land Limited, a fellow subsidiary of Eastcote Holdings Limited. The balance is interest free and repayable on demand and has been classified as falling due within one year.