Zion Care Homes Limited 31/12/2020 iXBRL

Zion Care Homes Limited 31/12/2020 iXBRL

ZION CARE HOMES LIMITED - Company Information

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Company registration number: 05373144
Zion Care Homes Limited
Audited filleted financial statements
31 December 2020
Zion Care Homes Limited
Contents
Directors and other information
Director's responsibilities statement
Statement of financial position
Notes to the financial statements
Zion Care Homes Limited
Directors and other information
Director Timothy Ogunleye
Secretary Omobonuola Ogunleye
Company number 05373144
Registered office 23 Marsham Way
Gerrards Cross
South Bucks
SL9 8AB
Business address 24a Elvaston Lane
Alvaston
Derby
Derbyshire
DE24 0PU
Auditor LBH Accountancy Services Limited
Craven House
32 Lee Lane
Horwich
Bolton
BL6 7BY
Bankers The Royal Bank of Scotland plc
41 Cornmarket
Derby
DE1 2DG
Zion Care Homes Limited
Director's responsibilities statement
Year ended 31 December 2020
The director is responsible for preparing the director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Zion Care Homes Limited
Statement of financial position
31 December 2020
2020 2019
Note £ £ £ £
Fixed assets
Intangible assets 8 - -
Tangible assets 9 3,016,863 3,034,141
_______ _______
3,016,863 3,034,141
Current assets
Stocks 1,000 1,000
Debtors 10 388,151 213,091
Cash at bank and in hand 216,639 137,380
_______ _______
605,790 351,471
Creditors: amounts falling due
within one year 11 ( 333,209) ( 227,026)
_______ _______
Net current assets 272,581 124,445
_______ _______
Total assets less current liabilities 3,289,444 3,158,586
Creditors: amounts falling due
after more than one year 12 ( 725,711) ( 587,322)
Provisions for liabilities 13 ( 262,943) ( 263,079)
_______ _______
Net assets 2,300,790 2,308,185
_______ _______
Capital and reserves
Called up share capital 15 100 100
Non distributable reserve 1,578,547 1,593,021
Profit and loss account 722,143 715,064
_______ _______
Shareholder funds 2,300,790 2,308,185
_______ _______
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
These financial statements were approved and authorised for issue on 24 September 2021 , and are signed by:
Timothy Ogunleye
Director
Company registration number: 05373144
Zion Care Homes Limited
Notes to the financial statements
Year ended 31 December 2020
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 23 Marsham Way, Gerrards Cross, South Bucks, SL9 8AB.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis as modified to include the revaluation of certain fixed assets
Turnover
Turnover is measured at the fair value of residential retirement nursing home fees receivable by the company during the year.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income,.
Current tax is measured at the amounts of tax expected to be paid using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences that have originated but not yet reserved 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. Deferred tax is measured on an undiscounted basis at tax rates that are expected to apply in the periods which timing differences reverse, base on tax rates and laws enacted or substantively enacted at the balance sheet date.
Goodwill
Goodwill has been written off in equal annual instalments over its originally estimated economic life.
Tangible assets
Tangible assets are initially recorded at cost, and are subsequently stated at cost or revaluation less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - 2 % straight line
Fixtures, fittings and equipment - 20 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Stocks
Stocks are measured at cost.
Government grants
Government grants are recognised using the accrual model. Under the accrual model, grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Financial instruments
The company only entered into basic financial instruments that result in the recognition of the financial assets and liabilities such as trade an other debtors and creditors. These are measured at amortised cost and assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
Defined contribution plans
The pension cots charged in the financial statements represents the contribution payable by the company during the year.
4. Auditors remuneration
2020 2019
£ £
Fees payable for the audit of the financial statements 7,200 7,020
_______ _______
5. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2020 2019
Nursing and care staff 56 51
_______ _______
The aggregate payroll costs incurred during the year were:
2020 2019
£ £
Wages and salaries 746,896 680,246
Other pension costs 9,319 7,178
_______ _______
756,215 687,424
_______ _______
6. Interest payable and similar expenses
2020 2019
£ £
Bank loans 12,159 17,558
_______ _______
7. Tax on profit
Major components of tax expense
2020 2019
£ £
Current tax:
UK current tax expense 59,131 52,745
_______ _______
Deferred tax:
Origination and reversal of timing differences ( 136) 281
_______ _______
Tax on profit 58,995 53,026
_______ _______
8. Intangible assets
Goodwill Total
£ £
Cost
At 1 January 2020 and 31 December 2020 678,400 678,400
_______ _______
Amortisation
At 1 January 2020 and 31 December 2020 678,400 678,400
_______ _______
Carrying amount
At 31 December 2020 - -
_______ _______
At 31 December 2019 - -
_______ _______
9. Tangible assets
Freehold property Fixtures, fittings and equipment Total
£ £ £
Cost or valuation
At 1 January 2020 and 31 December 2020 3,050,000 132,723 3,182,723
_______ _______ _______
Depreciation
At 1 January 2020 28,947 119,634 148,581
Charge for the year 14,474 2,805 17,279
_______ _______ _______
At 31 December 2020 43,421 122,439 165,860
_______ _______ _______
Carrying amount
At 31 December 2020 3,006,579 10,284 3,016,863
_______ _______ _______
At 31 December 2019 3,021,053 13,089 3,034,142
_______ _______ _______
Tangible assets held at valuation
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Freehold property Total
£ £
At 31 December 2020
Aggregate cost 1,182,590 1,182,590
Aggregate depreciation (102,192) (102,192)
_______ _______
Carrying amount 1,080,398 1,080,398
_______ _______
At 31 December 2019
Aggregate cost 1,182,590 1,182,590
Aggregate depreciation (94,383) (94,383)
_______ _______
Carrying amount 1,088,207 1,088,207
_______ _______
The Freehold Land and Buildings were revalued during the year ended 31st December 2016 by Mr K Cole MRICS of Messrs Knight Frank LLP at an amount of £3,050,000.
10. Debtors
2020 2019
£ £
Trade debtors ( 885) 13,853
Other debtors 389,036 199,238
_______ _______
388,151 213,091
_______ _______
11. Creditors: amounts falling due within one year
2020 2019
£ £
Bank loans 111,353 101,387
Trade creditors 36,089 12,583
Corporation tax 113,208 52,745
Social security and other taxes 10,597 5,657
Other creditors 61,962 54,654
_______ _______
333,209 227,026
_______ _______
12. Creditors: amounts falling due after more than one year
2020 2019
£ £
Bank loans 725,711 587,322
_______ _______
One of the bank loans is repayable by monthly instalments until December 2027. Repayments due after 31st December 2025 amount to £114,080. The Bank Loans are secured by a first legal charge over the freehold land and buildings of the company and by inter company guarantees given by other companies within the group.
13. Provisions
Deferred tax (note 14) Total
£ £
At 1 January 2020 263,079 263,079
Charges against provisions ( 136) ( 136)
_______ _______
At 31 December 2020 262,943 262,943
_______ _______
14. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2020 2019
£ £
Included in provisions (note 13) 262,943 263,079
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2020 2019
£ £
Accelerated capital allowances 145 281
Revaluation of tangible assets 262,798 262,798
_______ _______
262,943 263,079
_______ _______
The forthcoming increase in the rate of corporation tax will result in an increased deferred tax provision of £83,034.
15. Called up share capital
Issued, called up and fully paid
2020 2019
No £ No £
Ordinary shares of £ 1.00 each 100 100 100 100
_______ _______ _______ _______
16. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 7,002 7,002
Later than 1 year and not later than 5 years 7,796 14,798
_______ _______
14,798 21,800
_______ _______
17. Summary audit opinion
The auditor's report for the year dated 24 September 2021 was unqualified.
The senior statutory auditor was Raymond Hamer FCCA for and on behalf of LBH Accountancy Services Limited
18. Related party transactions
The company's bank loans are partially secured by a personal guarantee given by the director, limited to £300,000 in addition to the charge over the company's assets. Creditors include £ 461 ( 2019 - £ 82) in respect of loans from other companies under the effective control of Mr T Ogunleye. Debtors includes £362,707 (2019 - £189,872) in respect of loans advanced to other companies under the effective control of Mr T Ogunleye.
19. Controlling party
The company is controlled by its director Mr T K Ogunleye by virtue of his and his immediate family's 100% share holding and directorships in the holding company, Zion Care Limited.
20. Ultimate parent undertaking
Zion Care Limited, a company incorporated in England and Wales is the holding company of Zion Care Homes Limited.
21. Provisions available for Small Entities
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
22. Financial viability during the ongoing pandemic
As referred to in the director's report the care sector, within which the company operates, has experienced an unanticipated and unprecedented traumatic trading environment since the beginning of the pandemic in March 2020. The company and the group of which it is a member have sufficient financial resources to enable it to continue to trade, albeit possibly at a lower level of net profitability, through the ongoing pandemic and for a period of at least twelve months from the date when the financial statements are authorised for issue.