SWIIS_INTERNATIONAL_LIMIT - Accounts

The directors present the strategic report for the year ended 30 September 2021.

The directors can report that during the business year (October 2020 to September 2021) Swiis continued to operate throughout the Covid-19 pandemic. Although the ongoing presence of the pandemic provided challenges across the Swiis operation, each of our companies adapted to ensure that we were able to successfully support our clients and the end-users of our services in a manner befitting our ethos of care.

The directors recognise the exceptional commitment and resolve that continues to be shown by our employed staff, our foster carers, and our temporary staff, all of whom have continued to demonstrate the highest standards of care whilst operating across a second pandemic period.

Everyone associated with Swiis has continued to show exceptional diligence and determination to ensure that our children and young people across our foster care services in England and Scotland and our NHS clients across England and Wales have received dedicated support over the reporting period.

Across the Swiis portfolio of services we have been mindful of the need to constantly adjust and evaluate our processes to meet the ever-changing requirements created through working in a second pandemic term. The directors report that due to the innovative modelling and flexibility of our internal stakeholders we have been fortunate enough to ensure highly positive outcomes for our children and young people in Swiis Foster Care and Swiis Foster Care England whilst significantly increasing our support to our NHS partners in Swiis UK.

At the close of our financial year we were privileged to be providing foster homes to 771 children and young people across our services.

From a qualitative perspective, the directors report that we have maintained our Investors in People 'Platinum' (SFCS) and our Investors in Young People 'Gold'. Swiis was announced as winners of the Investors in People ‘Third sector’ award. We have achieved our ninth consecutive ‘Platinum’ audit award from Neuven and achieved a 100% compliance audit from LPP. We are delighted to report that one young person received the Outstanding Achievement in Education Award in England, and one young person received the Outstanding Achievement in Education Award in Scotland.

From a financial perspective The directors report that despite the unique challenges created through managing the Swiis portfolio through a further period which was impacted by the Covid-19 pandemic the Swiis group of companies produced another year of growth against the previous reporting period.

The directors report that our overriding priority continues to be one of providing care of the highest standard to every user of our services, we have therefore continued to invest in our fostering services in England arid Scotland as well as our Healthcare and Social Care operations.

As experienced health and social care professionals, the directors of Swiis are versed in the current and anticipated market pressures. The directors determine that these do not encompass risks or uncertainties other than the standard commercial risks which are associated with managing a business of this scale within our chosen industries.

The directors report that operating throughout a second pandemic period has brought unique challenges to our service however we have continued to both enhance and maintain our service outputs and financial results.

The directors recognise the immense contributions made by all Swiis stakeholders who have contributed so much to ensure that we have been able to provide the highest standards of care to our children and young people across our fostering services whilst also supporting our NHS partners through an unapparelled period of challenge in healthcare.

The directors recognise the principal risks as being:

Liquidity Risk; The directors manage liquidity risk by a combination of controls such as monitoring gearing levels and ensuring facilities are readily available for future use as required.

Competition Risk; Swiis International Ltd operates within highly competitive marketplaces, we are confident however of maintaining and enhancing our market position through the provision of excellent service standards which are recognised throughout each of our chosen industries.

The UK economy; The directors recognise the economic pressures that that are placed upon our principal client group (the Public Sector) and we have adapted a number of our services to accommodate such pressures whilst ensuring our market position through the delivery of services which exceed the qualitative demands of our clients group.

The directors are highly assured in the Swiis strategic plan which is based around providing a standard of care and service excellence which considerably exceeds our client's requirements whilst managing organisational investment and costing controls in a pragmatic and responsible manner. This plan continues to be adhered to and will, we trust, result in an exponential growth model and a sound and resolute business.

The directors recognise the economic pressures and parameters in which our public-sector clients operate, and we have endeavoured to deliver a service which provides some of the finest outcomes available to the children and young people within our fostering services and further provides our NHS clients with industrious healthcare staff who consistently deliver high quality patient care in a cost efficient manner.

The directors are confident in the operational, professional, and financial future of Swiis due to; our market positioning, the quality of our staff, carers and temporary workers and the strategic governance of our service.

The financial year ending September 2021 has seen a comparable turnover figure whilst establishing enough operating profit within the year to ensure significant investment in our service in line with a longer-term strategic plan.

The group's financial performance for the year is monitored using the following KPI's:

Turnover for the year - £41,335,225 (2020: £40,524,321)

Gross profit % 31.91% (2020: 32.26%)

Operating profit % 2.68% (2020: 3.69%)

Net profit % 2.10% (2020: 2.82%)

Swiis International Ltd operate our group of companies in accordance with a comprehensive Business Continuity Plan. This is overseen at board level for the group and regulated by our senior management team led by our Chief Executive Officer. Our Business Continuity Plan factors in measures to ensure that all Swiis services and operations including our corporate functions, commercial functions, Swiis Foster Care, Swiis Foster Care Scotland and Swiis UK Ltd continue to operate as seamlessly as possible in the event of unforeseen circumstances, including pandemics.

However, due to the impact and nature of COVID-19, Swiis International Ltd have established an overall Covid risk management team (Falcon) which is demarcated through a top-down process to each of our services and led by both our Chief Executive Officer and; our Director of Swiis Foster Care, Director of Swiis Foster Care Scotland and our Director of Operations (Swiis UK).

Sitting on a weekly basis, the Falcon team members monitor the impact on COVID-19 on each of our services and our corporate functions. Our entire service has been migrated between 'office' and 'homeworking' as appropriate, with our offices having been adjusted to meet social distancing guidelines being equipped with screens, hand sanitizers, antiseptics, and social distancing floor guides. Home working is supported through a range of comprehensively protected 'virtual' enterprises.

Swiis IT infrastructures and data are established and stored on cloud-based solutions including Microsoft Azure, Office 365 and Mimecast and have been implemented with multiple layers of protection. Access to company resources are controlled and managed via 'active directory identity management'. All remote user devices are comprehensively encrypted and managed remotely. Our IT operation is Cyber Essential Plus certified.

Swiis International Ltd have an extensive stock of Personal Protection Equipment including masks, gloves, and hand sanitisers for our employees as required. This stock is replenished on an ongoing basis.

A companywide COVID-19 policy has been designed and issued to every employee to provide advice, support, and guidance.

The directors have considered the impact on the company of Covid-19 and the impact this is having on the global markets and that of the Swiis Group. The directors recognise that whilst the reporting period has been successfully navigated, the pandemic could have a significant impact on the group's ability to continue to trade at the same levels as reported in these Financial Statements and the overall impact is currently unknown.

On behalf of the board

The directors present their report and financial statements for the year ended 30 September 2021. The report covers all the subsidiaries of the Group.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £800,000. The directors do not recommend payment of a further dividend.

The auditor, Rayner Essex LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

•     select suitable accounting policies and then apply them consistently;

•     make judgements and accounting estimates that are reasonable and prudent;

•     state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;

•     prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of Swiis International Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2021 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. 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 group's and the parent company's affairs as at 30 September 2021 and of the group's profit for the 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 group 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.

The impact of uncertainties due to Covid-19 on our audit

Uncertainties related to the global effects of Covid-19 are relevant to understanding our audit of the financial statements.  All audits assess and challenge the reasonableness of estimates made by the directors, such as impairment of fixed assets, recoverability of debtors, intangibles assets and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the group's future prospects and performance.

Covid-19 is one of the most significant global economic events presently and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. No audit should be expected to predict the unknowable factors or all possible future implications for a group and this is particularly the case in relation to Covid-19.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

However, as not all future events or conditions can be predicted, such as the impact of Covid-19 and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the group will continue in operation as a going concern

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 directors are 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are 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 the directors 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 directors are responsible for assessing the parent 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the group through discussions with the directors and other management, and from our commercial knowledge and experience of the foster care services and recruitment sectors.

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment law, The Fostering Services (England) Regulations 2011. The Fostering Services: National Minimum Standards, Agency Workers Regulations 2011, Employment Business Regulations 2003 and other relevant regulations;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company and group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £800,000 (2020 - £808,600 profit).

Swiis International Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 4th Floor, Prince House, 43-51 Prince Street, Bristol, BS1 4PS.

The group consists of Swiis International Limited and all of its subsidiaries.

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.

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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of Swiis International Limited and Subsidiary Undertakings and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from date that control passes.

All financial statements are made up to 30 September 2021. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

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

In adopting the going concern basis for preparing the financial statements, the directors have considered the business activities and the group's principle risks and uncertainties, including those arising from the current Covid-19 pandemic and the government's response to it. The group meets its day-to-day working capital requirements through use of its cash and banking facilities which includes invoice discounting facilities. The group has also taken advantage of government backed initiatives such as the furlough scheme to assist with its day to day cash management.

In assessing the appropriateness of the going concern assumption, the directors have prepared detailed cash flow forecasts for the group. In the modelled forecast scenarios the directors are satisfied that the group can continue to operate within its current cash and other facilities. However, the directors acknowledge that the environment is continuously changing and, as such, projecting the impacts of COVID-19 is challenging.

Revenue is measured at fair value of the consideration received or receivable net of sales tax, trade discounts and customer returns.

Revenue in respect of recruitment service provided is recognised in full when the customer has authorised timesheets for a period of service provided.

Revenue from the Foster Care operation is recognised at the point a child placement carer has provided a period of care.

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 recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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 including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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.

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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end 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, or a right to pay less or to receive more tax, with the following exceptions:

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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.

The group operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There are not considered to be any estimates or assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities of the group.

An analysis of the group's turnover is as follows:

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2020 - 1).

Investment income includes the following:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

The cost of freehold property of £814,015 (2020: £814,015) relates to assets held for use in operating lease agreements. The accumulated depreciation in respect of the assets amounted to £212,178 (2020: £195,897).

Under FRS 102, the company Swiis International Limited has chosen to recognise it's investments in subsidiaries at fair value and for that fair value to be used as the deemed cost. In accordance with FRS 102 section 19, an impairment review was undertaken and the dormant subsidiary investments have been written down to nominal value.

Details of the company's subsidiaries at 30 September 2021 are as follows:

The subsidiaries registered office addresses, except Swiis Foster Care Scotland Limited are the same as the parent company at 4th Floor, Prince House, 43-51 Prince Street, Bristol, BS1 4PS

The registered office of Swiis Foster Care Scotland Limited is Glenelvan House Carnegie Campus South, Enterprise Way, Dunfermline, Scotland. KY11 8PY.

Included in other creditors is an amount of £2,519,195 (2020: £1,555,499) representing amounts advanced against trade debtors. The advance is secured by a fixed and floating charge over all the group assets and a fixed charge over the debtors of the company and interest accrues at 1.5% above base rate. The charge cross guarantees the liabilities of each company across the group.

A charge was registered on 27.06.16 with HSBC Bank Plc that contains a fixed and floating charge over the assets of the company. The charge cross guarantees the liabilities of each company across the group.

The long-term loans are secured by a mortgage over the freehold property of Swiis (UK) Limited.

The HSBC mortgage is repayable over five years by equal monthly instalments, and is secured over the freehold properties. Interest on this loan is charged at 2.24% above the Bank of England Base Rate.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The amount outstanding at 30 September 2021 in respect of the pension scheme contributions was £57,202 (2020: £53,587).

The group leases properties under operating leases. There are break clauses in some of the leases at various dates between 3-6 years from the lease commencement date. This has determined the minimum lease period for disclosure in the financial statements.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The operating leases represent office space to third parties. The leases are negotiated over terms of 5 years and rentals are fixed for this period. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

G S Dadral and K Dadral were granted loans and advances during the year. The maximum amount outstanding due to the group during the year was £1,229,072 (2020: £808,523).

Dividends totalling £800,000 (2020: £808,600) were paid in the year in respect of shares held by the company's directors

The group was under the control of G S Dadral and K Dadral throughout the current and previous period.