Maison Moti Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03272255 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 April 2021

for

MAISON MOTI LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

Directors:

M Mahtani

V Mahtani

M Ahmed

Registered office:

8a Southbury Road

Enfield

Middlesex

EN1 1YT

Registered number:

03272255 (England and Wales)

Auditors:

Haines Watts

Chartered Accountants and Statutory Auditors

305 Regents Park Road

Finchley

London

N3 1DP

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

Review of business

The principal activities of Maison Moti Limited continue to be about the provision of accommodation, care and support for vulnerable adults.

Our strategic plans remain focused on growth and continuous improvement.

Performance in these areas continues to be strong with internal review outcomes relating to the latter demonstrating expected achievements in terms of improved quality.

Planned investments to improve pay and enhance the company's capacity and infrastructure in preparedness for expansion have been realized.

1. Turnover increased to £5,157,891 as compared to the previous year £4,614,633

2. Expenditure including interest increased to £4,267,631 as compared to the previous year £3,893,800

3. Profit before tax increased to £1,045,184 as compared to the previous year £743,647

Principal risks and uncertainties

The primary risks and what is done to mitigate these are as follows:

1.

Serious incident & injury caused by service user - Mitigated by implementation and monitoring of robust risk management processes and insurance cover.

2.

Increase in interest rates - Mitigated by keeping debt: equity level low and allowing for a hike in rates in terms of debt serviceability.

3.

Competition and Government cuts to social care budgets - Mitigated by keeping fee levels competitive and a business model that provides comparatively better value for money than available in the general market for this type of provision.

4.

Impact of COVID-19 - Mitigated by implementation of safe working measures.

Comprehensive analysis of development and performance

Maison Moti continues to operate to the high-performance standards it has set. This in turn continues to fuel the demand for the company's services, demonstrated by high levels of occupancy and met through increased bed capacity. The outcome in terms of both these areas is as per the company's forecasts and plans for the year ahead.

Financial key performance indicators

High level Key Performance Indicators in this regard are:

1. Turnover linked to occupancy

2. Expenditure

3. Profit before tax

Other key performance indicators

The company reviews its performance against a comprehensive array of operational as well as commercial Key Performance Indicators, which include:

1. Referrals

2. Placements

3. Recovery & move-on

4. Stability in mental health

5. Satisfaction levels (service user, staff & customer)

Future developments

The plans for the foreseeable future remain about consolidation, growth and maintaining standards and quality. In terms of growth, our aim is to double the existing bed capacity taking it to 240 by 2029.

On behalf of the board:

M Ahmed - Director

1 November 2021

The directors present their report with the financial statements of the company for the year ended 30 April 2021.

Principal activity

The principal activity of the company in the year under review was that of the operation of care homes.

Dividends

The total distribution of dividends for the year ended 30 April 2021 will be £312,283 (2020: £203,041).

Directors

The directors shown below have held office during the whole of the period from 1 May 2020 to the date of this report.

M Mahtani

V Mahtani

M Ahmed

Disclosure in the strategic report

Items required under Sch. 7 are set out in the Strategic Report in accordance with s.414C(11) of the Companies Act 2006.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

M Ahmed - Director

1 November 2021

Opinion

We have audited the financial statements of Maison Moti Limited (the 'company') for the year ended 30 April 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 Financial Reporting Standard 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 Auditors' 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.

However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed on page fourteen.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 or the Report of the Directors.

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.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page three, 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 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.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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:

- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with

provisions of relevant laws and regulations described as having a direct effect on the financial statements.

- Enquiring of management concerning actual and potential litigation and claims.

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

- Reading minutes of meetings of those charged with governance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Hassan Behcet (Senior Statutory Auditor)

for and on behalf of Haines Watts

Chartered Accountants and Statutory Auditors

305 Regents Park Road

Finchley

London

N3 1DP

3 November 2021

Turnover

5,157,891

4,614,633

Administrative expenses

(4,120,308

)

(3,770,039

)

1,037,583

844,594

Other operating income

142,878

22,802

Operating profit

5

1,180,461

867,396

Interest receivable and similar income

53

12

1,180,514

867,408

Interest payable and similar expenses

6

(135,330

)

(123,761

)

Profit before taxation

1,045,184

743,647

Tax on profit

7

(165,107

)

(168,700

)

Profit for the financial year

880,077

574,947

Other comprehensive income

-

-

Total comprehensive income for the year

880,077

574,947

Fixed assets

Intangible assets

9

419,965

578,006

Tangible assets

10

11,014,567

8,678,472

11,434,532

9,256,478

Current assets

Debtors

11

448,436

444,425

Cash at bank and in hand

15,722

56,450

464,158

500,875

Creditors

Amounts falling due within one year

12

1,053,690

999,397

Net current liabilities

(589,532

)

(498,522

)

Total assets less current liabilities

10,845,000

8,757,956

Creditors

Amounts falling due after more than one year

13

(4,840,045

)

(3,333,321

)

Provisions for liabilities

17

(278,941

)

(266,415

)

Net assets

5,726,014

5,158,220

Capital and reserves

Called up share capital

18

1,000

1,000

Revaluation reserve

19

55,589

55,589

Retained earnings

19

5,669,425

5,101,631

Shareholders' funds

5,726,014

5,158,220

The financial statements were approved by the Board of Directors and authorised for issue on 1 November 2021 and were signed on its behalf by:

M Ahmed - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 May 2019

1,000

4,729,725

55,589

4,786,314

Changes in equity

Dividends

-

(203,041

)

-

(203,041

)

Total comprehensive income

-

574,947

-

574,947

Balance at 30 April 2020

1,000

5,101,631

55,589

5,158,220

Changes in equity

Dividends

-

(312,283

)

-

(312,283

)

Total comprehensive income

-

880,077

-

880,077

Balance at 30 April 2021

1,000

5,669,425

55,589

5,726,014

Cash flows from operating activities

Cash generated from operations

1

1,369,664

1,326,334

Interest paid

(135,330

)

(123,761

)

Tax paid

(123,221

)

(137,164

)

Net cash from operating activities

1,111,113

1,065,409

Cash flows from investing activities

Purchase of intangible fixed assets

(2,860

)

(25,000

)

Purchase of tangible fixed assets

(2,510,292

)

(522,119

)

Sale of tangible fixed assets

26,318

-

Interest received

53

12

Net cash from investing activities

(2,486,781

)

(547,107

)

Cash flows from financing activities

New loans in year

1,986,789

-

Loan repayments in year

(339,566

)

(345,523

)

Amount withdrawn by directors

-

(47

)

Equity dividends paid

(312,283

)

(203,041

)

Net cash from financing activities

1,334,940

(548,611

)

Decrease in cash and cash equivalents

(40,728

)

(30,309

)

Cash and cash equivalents at beginning of year

2

56,450

86,759

Cash and cash equivalents at end of year

2

15,722

56,450

1.	Reconciliation of profit before taxation to cash generated from operations

2021

2020

£

£

Profit before taxation

1,045,184

743,647

Depreciation charges

159,872

149,828

Profit on disposal of fixed assets

(11,992

)

-

Amortisation

160,900

160,901

Finance costs

135,330

123,761

Finance income

(53

)

(12

)

1,489,241

1,178,125

Increase in trade and other debtors

(4,011

)

(61,289

)

(Decrease)/increase in trade and other creditors

(115,566

)

209,498

Cash generated from operations

1,369,664

1,326,334

2.	Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 April 2021

30.4.21

1.5.20

£

£

Cash and cash equivalents

15,722

56,450

Year ended 30 April 2020

30.4.20

1.5.19

£

£

Cash and cash equivalents

56,450

86,759

3.	Analysis of changes in net debt

At 1.5.20

Cash flow

At 30.4.21

£

£

£

Net cash

Cash at bank and in hand

56,450

(40,728

)

15,722

56,450

(40,728

)

15,722

Debt

Debts falling due within 1 year

(336,501

)

(140,499

)

(477,000

)

Debts falling due after 1 year

(3,333,321

)

(1,506,724

)

(4,840,045

)

(3,669,822

)

(1,647,223

)

(5,317,045

)

Total

(3,613,372

)

(1,687,951

)

(5,301,323

)

1.	Statutory information

Maison Moti Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact.

The balance sheet shows net current liabilities of £589,532 (2020: £498,522). However, forecasts prepared indicate that the company will be able to continue to trade as a going concern for the foreseeable future and meet its obligations as they fall due. This is dependent on the continued financial support of the company's bankers.

Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of several businesses, is being amortised evenly over its estimated useful life of ten years from the date of acquisition.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

-

Over the term of the lease

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

No depreciation is provided on freehold properties as, in the directors' opinion, the lives of the assets and the prices prevailing at the time of acquisition are such that their depreciation would not be material. Upon regular impairment reviews by the directors, in accordance with FRS 102, provisions will be made should any impairment in valuation of these properties occur.

The directors have taken advantage of the exemptions in FRS 102 paragraph 35.10 to include previous revaluations as deemed cost.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Operating leases

Rentals under operating leases are charged to the Profit and Loss Account on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term.

3.	Employees and directors

2021

2020

£

£

Wages and salaries

2,352,203

1,981,760

Social security costs

223,031

183,724

Other pension costs

52,501

43,578

2,627,735

2,209,062

The average number of employees during the year was as follows:

2021

2020

Management & Head Office

29

25

Support Staff

63

69

92

94

4.	Directors' emoluments

2021

2020

£

£

Directors' remuneration

254,375

211,586

Directors' pension contributions to money purchase schemes

7,636

6,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2021

2020

£

£

Emoluments etc

247,975

207,756

Pension contributions to money purchase schemes

7,636

6,000

5.	Operating profit

The operating profit is stated after charging/(crediting):

2021

2020

£

£

Other operating leases

408,768

412,558

Depreciation - owned assets

159,871

149,828

Profit on disposal of fixed assets

(11,992

)

-

Goodwill amortisation

160,901

160,901

Auditors' remuneration

7,200

7,000

6.

Interest payable and similar expenses

2021

2020

£

£

Bank loan interest

135,330

123,761

7.

Taxation

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

£

£

Current tax:

UK corporation tax

152,581

123,220

Deferred tax

12,526

45,480

Tax on profit

165,107

168,700

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

£

Profit before tax

1,045,184

743,647

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

198,585

141,293

Effects of:

Expenses not deductible for tax purposes

1,759

232

Capital allowances in excess of depreciation

(39,244

)

-

Depreciation in excess of capital allowances

-

779

Deferred tax

12,526

45,480

Research and development

(8,088

)

(19,045

)

Donations

(431

)

(39

)

Total tax charge

165,107

168,700

8.

Dividends

2021

2020

£

£

Ordinary 'A' shares of £1 each

Interim

145,083

103,041

Ordinary 'B' shares of £1 each

Interim

41,800

25,000

Ordinary 'C' shares of £1 each

Interim

41,800

25,000

Ordinary 'D' shares of £1 each

Interim

41,800

25,000

Ordinary 'E' shares of £1 each

Interim

41,800

25,000

312,283

203,041