CONSULTUS_CARE_AND_NURSIN - Accounts

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

Long established since 1962, Consultus is a family owned and run provider of live-in carers and nurses offering 24 hour personalised private live in care in your own home covering a wide variety of locations across the UK.

Consultus offers three 24/7 live in care services dependent on need and circumstances : A tailored, sourcing, vetting and training service of introduced self-employed carers for those families able to oversee the care delivered on behalf of the client. A fully managed and CQC regulated care service delivered through Consultus regional care needs assessors and managers, and a fully managed and CQC regulated nursing service.

These bespoke care services evolved from nearly sixty years of experience are a direct alternative to moving elderly parents in to institutional care homes with the proceeds of the family home funding the costs. Nowadays flexible borrowing at relatively low interest against the value of the home from a range of competing financial providers can provide the funding of bespoke care in the home where pets can be retained, family friends and social connections maintained in familiar surroundings, and where independent research evidences improved health and wellbeing outcomes whilst the value of the family home typically appreciates over time.

Despite the considerable challenges of the COVID pandemic, the Company has continued to grow across all three services over the last financial year from May’20 to end April ’21 with increasing numbers of older people choosing to stay in their own homes. This growth is being maintained through the early months of the financial year ending April ’22.

Consultus Care & Nursing review rated by www.homecare.co.uk 9.5 out of 10.

The principal challenge currently facing the care sector is the shortage of available carers due to a combination of the COVID pandemic resulting in carers from overseas requiring expensive albeit necessary quarantine arrangements, post Brexit immigration controls from Europe, and the continued public perception that public sector funded social care is undervalued.

Consultus counter this by offering award winning inhouse career transition training up to diploma level, and correspondingly higher rates of pay which professionally qualified carers fully justify. This has resulted in a higher than usual proportion of UK carers applying for carer training.

The Consultus Nursing Service also attracts and provides skilled and highly qualified and experienced clinicians who provide necessary support to clients with more complex clinical needs. This service is not widely available from competitors.

The Consultus response to the COVID pandemic overall has been comprehensive, and it is our core duty to do everything we can to ensure our carers and clients continue to remain safe. Consultus has avoided practically all cross infection between our carers and our clients to date and are determined to ensure this record is maintained. We strongly encourage all our staff, carers and nurses to have up to date vaccinations. Lateral flow testing was sourced and provided by the Company from as early as June 2020 before the Government made these available in social care settings.

The Consultus introductory service for families providing oversight of the care delivered remains very cost effective, and thus popular, with revenues continuing to grow steadily.

Consultus is also investing heavily in their fully managed care service. In the financial year ending April ’21 revenues have grown by 62%. Locally based regional Care Assessors / Managers are broadening capabilities and geographic coverage.

Consultus significantly reinvests it’s profits, and has recently invested further in our national award winning Training Centre by considerably expanding our training facilities, to meet rising demand, and we also offer bespoke off-site ‘virtual training’ courses based on remote access to live training within the Centre.

New technology – Machine Learning technology is also now also being offered to our clients to move us in the direction of pre-empting conditions before they manifest. We are also investing in inhouse developed smart phone apps to support our carers and nurses on-site as well as facilitating remote access for extended families enabling them to stay up to date with the care of their typically older family members.

• Steady improved growth of the introductory carer service

• Significant growth of the managed care service

• Providing continued high calibre, trained carers

• Providing high calibre, experienced nurses

• Maintaining Consultus values of : empathy, integrity, compassion, professionalism, and experience, inherent in their range of services tailored to suit our client’s and carer’s needs.

The main KPI used by the company are as follows:

- Gross Profit percentage 69% (YR 2020: 70%)

- Net Profit percentage 24% (YR 2020: 22%)

- Increase in Turnover 9% (YR 2020: 19%)

- Current Ratio 3.85 (YR 2020: 3.68)

These are all considered to be satisfactory by the directors.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 April 2021.

The principal activity of the Company continued to be that of proprietors and operators of an agency providing three distinctive services :

•     The provision of introduced self-employed carers

•     The provision of managed care services

•     The provision of managed nursing services

Review of Business

The directors are pleased to report to the financial YE April 2021 in comparison to YE April 2020, continued strong underlying performance from our Care at Home Department (CHD) and a significant growth from our Managed Care Department (MCD) formerly known as Care at Home Plus. There has been a reduction in revenues from our Nursing at Home Department (NHD)

Overall our pre-tax profits increased by 18.3% over the previous financial YE 2020. Our net profits are re-invested in to the business to support the growth of our Company as one of the most established, and market leading care (and nursing) agencies in the UK, as well as increasing our contingency reserves.

Current levels of business are maintaining our rate of growth established in the year under review.

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £900,000. The directors do not recommend payment of a further dividend.

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

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 company’s auditor 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 company’s auditor is aware of that information.

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 company and of the profit or loss of the company 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;

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

The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

We have audited the financial statements of Consultus Care and Nursing Limited (the 'company') for the year ended 30 April 2021 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 company's affairs as at 30 April 2021 and of its 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 company 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.

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 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.

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 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, or returns adequate for our audit have not been received from branches not visited by us; or

•     the 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 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.

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:

• - The Company Act 2006;

• - Financial Reporting Standard 102;

• - UK employment legislation;

• - UK health and safety legislation;

• - General Data Protection Regulations;

• - UK tax legislation;

• - Governing Bodies DBS, CQC

• - ICO (data protection register, Information Commissioners Office)

We accessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.

We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the management team included:

• - Identifying and assessing the measures management has in place to prevent and detect fraud.

• - Understanding how those charged with governance considered and addressed the potential for overrride of controls or other inappropriate influence over the financial reporting process,

• - Challenging assumptions and judgments made by management in its significant accounting estimates, and

• - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring due to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

The greatest threats of potential for fraud irregularities have been considered. Cyber attack: The company has relevant protection in place to protect them from malware. Breach of data: The company has a data breach policy in place and this is managed by Deborah Kettle.

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.

Consultus Care and Nursing Limited is a private company limited by shares incorporated in England and Wales. The registered office is 17 London Road, Tonbridge, Kent, TN10 3AB.

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 listed investments at fair value. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

Turnover represents amounts receivable for services of nurses and carers, net of VAT.

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.

Income is recognised on the basis of the period of care being provided by nurses and carers during the year.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation.

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

Freehold land and assets in the course of construction are not depreciated.

No depreciation has been provided on the land and buildings as the residual value is expected to be higher than its current carrying value.

Interests in entities are in listed investments measured at fair value. The investments are measured at fair value and any movement in fair value are recognised immediately in profit or loss.

At each reporting period end date, the company 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).

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 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 including transaction costs.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price.

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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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 expected to apply in the period when the liability is settled or the asset is realised. 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.

Employee benefits include payments to defined contribution retirement benefit schemes and payments to private health care.

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

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’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.

The directors have made estimates on the residual value and useful life of freehold property, with a view to support the policy of no depreciation.

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

Professional fees for non-audit services amounted to £12,977 (2020 - £12,749).

The average monthly number of persons (including directors) employed by the 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).

Included in the director's remuneration is amount relating to pension contributions in the sum of £6,000 (2020 - £2,000)

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:

Freehold land and assets in the course of construction are not depreciated.

No depreciation has been provided on the land and buildings as the residual value is expected to be higher than its current carrying value.

Listed investments included above:

The directors consider that the carrying amounts of the listed investments are carried at fair value, approximate to the market value in the financial statements.

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

The deferred tax liability set out above is expected to reverse within 12 months and relates to revaluations of listed investments at fair value.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The remuneration of key management personnel as at the year end is £112,496 (2020 - £132,139)

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date: