BIRSTALL_CARE_SERVICES_LI - Accounts

The directors of the company have 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.

Birstall Care Services 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 financial statements of the company are consolidated in the financial statements of Birstall Care Holdings Limited. These consolidated financial statements may be obtained from Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ.

The directors have no reason to believe that financial support will be withdrawn by external funders or by the company's immediate and ultimate parent undertakings. According the financial statements have been prepared on a going concern basis.

Turnover represents income generated from the principal activity of the company, provision of residential care for the elderly. It is recognised at the point the attributable service is delivered. Turnover is recorded to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received and receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

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 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.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

The average monthly number of persons employed by the company during the year was 116 (2020: 125).

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

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 has taken advantage of the exemption in Financial Reporting Standard 102 Section 33 "Related party disclosures" and has not disclosed transactions with group undertaking for entities within the group headed by Birstall Care Holdings Limited.

Year end balances with group undertakings included in the Birstall Care Holdings group are disclosed in aggregate in the notes to the accounts.

At the balance sheet date, the company was owed £nil (2020: £800,000) by Cinnamon Finance Company Limited, a fellow member of the group headed by Cinnamon Care Homes LP.

At the balance sheet date, the company was owed £568,293 (2020: £136,365) by Battersea Care Limited, a fellow member of the group headed by Cinnamon Care Homes LP. The balance is interest free and repayable on demand, and has therefore been classified as falling due within one year.

At the balance sheet date, the company was owed £700,000 (2020: £nil) by Battersea Care Home Limited, a fellow member of the group headed by Cinnamon Care Homes LP. The balance is interest free and repayable on demand, and has therefore been classified as falling due within one year.

At the balance sheet date, the company was owed £246,964 (2020: £nil) by Eastcote Care Limited, a fellow member of the group headed by Cinnamon Care Homes LP. The balance is interest free and repayable on demand, however due to the longer term nature of the advance it has been classified as falling due in greater than one year.

At the balance sheet date, the company was owed £52,000 (2020: £nil) by Eastcote Land Limited, a fellow member of the group headed by Cinnamon Care Homes LP. The balance is interest free and repayable on demand, and has therefore been classified as falling due within one year.

At the balance sheet date, the company owed £nil (2020: £137,501) to Blackheath Care Limited, a fellow member of the group headed by Cinnamon Care Homes LP.

Unless otherwise stated, notional interest charges between fellow subsidiary undertakings, as required by FRS 102, have been disregarded on the grounds of materiality.

During the year Cinnamon Care Collection Limited ("CCC"), a related party by virtue of common directorship paid central expenses on behalf of the company. Additionally, CCC charged a management fee to the company totalling £215,408 (2020: £200,791). £30,662 (2020: £33,340) was owed to CCC at the balance sheet date.

The immediate parent undertaking of the company is Birstall Care Holdings Limited by virtue of its beneficial shareholding. The registered address of the immediate parent company is The Old House, 64 The Avenue, Egham, TW20 9AD.