Coate Water Care Company Limited - Period Ending 2021-03-31
Coate Water Care Company Limited - Period Ending 2021-03-31
Registration number:
for the Year Ended
Coate Water Care Company Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Coate Water Care Company Limited
Company Information
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Directors |
C L Smith G F Smith J Smith N Smith |
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Company secretary |
G F Smith |
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Registered office |
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Bankers |
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Auditors |
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Coate Water Care Company Limited
Strategic Report for the Year Ended 31 March 2021
The directors present their strategic report for the year ended 31 March 2021.
Principal activity
The principal activity of the company and the group is the provision of nursing and residential care for the elderly.
Fair review of the business
The consolidated results for the year, which are set out in the group profit and loss account, show turnover for the year of £14,331,445 (2020 - £14,231,271) and an operating profit of £3,508,793 (2020 - £2,292,861). At 31 March 2021, the group had net assets of £7,812,088 (2020 - £5,539,827). The directors consider that the financial position of the group and the company at the year end is satisfactory.
Key performance indicators
Given the nature of the business, the group's directors are of the opinion that key performance indicators are important. The group uses a number of indicators to monitor and improve development and performance of the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. The directors do not consider the inclusion of an analysis, using key performance indicators, to be necessary to assist users of the financial statements in their understanding of the financial performance or the position of the group.
Principal risks and uncertainties
The management of the business and the execution of the group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to the continued provision of adequate government funding and the ongoing compliance with current and future legislation affecting the sector.
Financial instruments
Objectives and policies
The directors constantly monitor the group's trading results and revise projections as appropriate to ensure that the group can meet its future obligations as they fall due.
Price risk, credit risk, liquidity risk and cash flow risk
The group is exposed to the usual credit and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instuments means that price and liquidity risks are minimised by the predetermination of the group funding facilities and terms.
The group has sufficient resources available and continues to trade profitably generating cash. The directors have prepared forecasts for the next 12 months that indicate that these trends will continue. The directors therefore have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and has continued to adopt the going concern basis in preparing the financial statements.
Approved by the
Director
Coate Water Care Company Limited
Directors' Report for the Year Ended 31 March 2021
The directors present their report and the for the year ended 31 March 2021.
Directors of the company
The directors who held office during the year were as follows:
Employment of disabled persons
The group’s policy is to consider the recruitment of disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.
Employee involvement
The group encourages the involvement of employees in its management through regular departmental meetings.
Future developments
The external commercial environment is expected to remain competitive in the remainder of 2021. However, the directors remain confident that the group will improve its current level of performance in the future and will continue to trade as a going concern.
Disclosure of information to the auditor
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Coate Water Care Company Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, Directors' 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 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 financial statements; and |
• | 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Coate Water Care Company Limited
Independent Auditor's Report to the Members of Coate Water Care Company Limited
Opinion
We have audited the financial statements of Coate Water Care Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2021, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 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 group's and the parent company's affairs as at 31 March 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Coate Water Care Company Limited
Independent Auditor's Report to the Members of Coate Water Care Company Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 4, 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 group’s and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s 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 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:
Coate Water Care Company Limited
Independent Auditor's Report to the Members of Coate Water Care Company Limited
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements.We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 auditor's report.
Coate Water Care Company Limited
Independent Auditor's Report to the Members of Coate Water Care Company Limited
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.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Coate Water Care Company Limited
Consolidated Profit and Loss Account for the Year Ended 31 March 2021
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Note |
2021 |
2020 |
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Turnover |
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|
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Cost of sales |
( |
( |
|
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Gross profit |
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|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The group has no other comprehensive income for the year.
Coate Water Care Company Limited
(Registration number: 04165837)
Consolidated Balance Sheet as at 31 March 2021
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Note |
2021 |
2020 |
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|
Fixed assets |
|||
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Intangible assets |
|
|
|
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Tangible assets |
|
|
|
|
|
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||
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Current assets |
|||
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Debtors |
|
|
|
|
Cash at bank and in hand |
2,162,555 |
469,580 |
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|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
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Called up share capital |
|
|
|
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Retained earnings |
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|
|
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Total equity |
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Approved and authorised by the
Director
Coate Water Care Company Limited
(Registration number: 04165837)
Balance Sheet as at 31 March 2021
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Note |
2021 |
2020 |
|
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Fixed assets |
|||
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Tangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
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Current assets |
|||
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Debtors |
3,387,197 |
4,597,899 |
|
|
Cash at bank and in hand |
1,544,433 |
388,208 |
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
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Called up share capital |
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|
|
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Retained earnings |
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|
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Total equity |
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Approved and authorised by the
Director
Coate Water Care Company Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2021
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Share capital |
Retained earnings |
Total |
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At 1 April 2020 |
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|
|
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Profit for the year |
- |
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|
|
Dividends |
- |
( |
( |
|
At 31 March 2021 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 April 2019 |
|
|
|
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Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 March 2020 |
|
|
|
Coate Water Care Company Limited
Statement of Changes in Equity for the Year Ended 31 March 2021
|
Share capital |
Retained earnings |
Total |
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|
At 1 April 2020 |
|
|
|
|
Profit for the year |
- |
|
251,433 |
|
Dividends |
- |
( |
( |
|
At 31 March 2021 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 April 2019 |
|
|
|
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Profit for the year |
- |
|
141,249 |
|
Dividends |
- |
( |
( |
|
At 31 March 2020 |
|
|
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Coate Water Care Company Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2021
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Note |
2021 |
2020 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
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|
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Finance income |
( |
( |
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Finance costs |
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|
|
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Income tax expense |
|
|
|
|
|
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||
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Working capital adjustments |
|||
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(Increase)/decrease in trade and other receivables |
( |
|
|
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Increase/(decrease) in trade and other payables |
|
( |
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Cash generated from operations |
|
|
|
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
|
|
|
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Cash flows from investing activities |
|||
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Interest received |
|
|
|
|
Acquisitions of property plant and equipment |
( |
( |
|
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Acquisition of subsidiary |
- |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
New bank loans |
3,978,337 |
6,062,730 |
|
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Repayment of bank borrowing |
(4,114,301) |
(822,112) |
|
|
Repayment of loans acquired with subsidiary |
- |
(4,356,528) |
|
|
Payments to finance lease creditors |
- |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 April |
|
|
|
|
Cash and cash equivalents at 31 March |
2,162,555 |
469,580 |
|
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
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General information |
The company is a private company limited by shares and is incorporated and domiciled in England and Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Parent company profit
As permitted by section 408 of the Companies Act 2006, the parent company’s statement of comprehensive income has not been included in these financial statements. The group profit for the period includes a profit of £290,481 (2020 - £156,473) dealt with in the profit and loss account of the parent company.
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2021.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Judgements and estimation uncertainty
These financial statements do not contain any significant judgements or estimation uncertainty. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold buildings |
1% on cost |
|
Fixtures and fittings |
25% reducing balance / 20% straight line |
|
Motor vehicles |
25% reducing balance / 25% straight line |
|
Computer equipment |
33% straight line |
|
Plant and machinery |
7 years straight line |
Freehold land is not depreciated.
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10 years straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All debtors are repayable within one year and are hence included at the undiscounted amount of the cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Recognition and measurement
Financial assets and liabilities are only offset in the statement of financial position when, and only when, there exists a legally enforcable right to set off the recognised amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Financial instruments (continued)
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
|
Revenue |
The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2021 |
2020 |
|
|
Government grants |
|
- |
|
Rental income |
|
|
|
Miscellaneous other operating income |
|
|
|
|
|
Government grants includes amounts receivable in respect of the Coronavirus Job Retention Scheme as well as Infection Control Grants.
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
|
Operating profit |
Arrived at after charging
|
2021 |
2020 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Operating lease expense - other |
- |
180 |
|
Other interest receivable and similar income |
|
2021 |
2020 |
|
|
Bank interest receivable |
1,687 |
3,040 |
|
Interest payable and similar expenses |
|
2021 |
2020 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
- |
|
|
Other finance costs adjacent to interest |
|
- |
|
|
|
|
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2021 |
2020 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2021 |
2020 |
|
|
Care staff |
|
|
|
Administrative staff |
|
|
|
|
|
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Company
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2021 |
2020 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2021 |
2020 |
|
|
Care staff |
|
|
|
Administrative staff |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2021 |
2020 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
- |
|
129,069 |
32,656 |
|
Auditors' remuneration |
|
2021 |
2020 |
|
|
Audit of these financial statements |
19,550 |
22,215 |
|
Other fees to auditors |
||
|
Other non-audit services |
|
|
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
|
Taxation |
Tax charged/(credited) in the income statement
|
2021 |
2020 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
- |
( |
|
545,307 |
55,546 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2020 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2021 |
2020 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Expenses not deductible for tax purposes |
|
|
|
Tax losses brought forward |
- |
( |
|
Adjustment for prior period |
- |
( |
|
Differences between depreciation and capital allowances |
|
|
|
Tax increase (decrease) from other short-term timing differences |
( |
- |
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2021 |
Liability |
|
Difference between accumulated depreciation and amortisation capital allowances |
|
|
Tax losses carried forward |
- |
|
Retirement benefit obligations |
( |
|
|
|
2020 |
Liability |
|
Difference between accumulated depreciation and amortisation capital allowances |
|
|
Tax losses carried forward |
( |
|
Retirement benefit obligations |
- |
|
|
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Company
Deferred tax assets and liabilities
|
2021 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
|
|
Retirement benefit obligations |
( |
|
|
|
2020 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
|
|
Retirement benefit obligations |
- |
|
|
|
Intangible assets |
Group
|
Goodwill |
|
|
Cost |
|
|
At 1 April 2020 and at 31 March 2021 |
|
|
Amortisation |
|
|
At 1 April 2020 |
|
|
Amortisation charge |
|
|
At 31 March 2021 |
|
|
Carrying amount |
|
|
At 31 March 2021 |
|
|
At 31 March 2020 |
|
Company
|
Goodwill |
|
|
Cost |
|
|
At 1 April 2020 and 31 March 2021 |
|
|
Amortisation |
|
|
At 1 April 2020 and at 31 March 2021 |
|
|
Carrying amount |
|
|
At 31 March 2020 and at 31 March 2021 |
- |
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
|
Tangible assets |
Group
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost |
||||
|
At 1 April 2020 |
|
|
|
|
|
Additions |
|
|
- |
|
|
At 31 March 2021 |
|
|
|
|
|
Depreciation |
||||
|
At 1 April 2020 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 March 2021 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 March 2021 |
|
|
|
|
|
At 31 March 2020 |
|
|
|
|
Freehold land of £8,156,548 (2020 - £8,156,548) is not depreciated.
Company
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost |
||||
|
At 1 April 2020 |
|
|
|
|
|
Additions |
|
|
- |
|
|
At 31 March 2021 |
|
|
|
|
|
Depreciation |
||||
|
At 1 April 2020 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 March 2021 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 March 2021 |
|
|
|
|
|
At 31 March 2020 |
|
|
|
|
Freehold land of £773,043 (2020 - £773,043) is not depreciated.
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
|
Investments |
Company
|
2021 |
2020 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost and carrying amount |
|
|
At 1 April 2020 and at 31 March 2021 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2021 |
2020 |
|||
|
Subsidiary undertakings |
||||
|
|
Ordinary |
|
|
|
|
England and Wales |
||||
|
|
England and Wales |
Ordinary |
|
|
|
Subsidiary undertakings |
|
Coate Water Care Company (Church View Nursing Home) Limited The principal activity of Coate Water Care Company (Church View Nursing Home) Limited is |
|
Coate Water Care (Arbory) Limited The principal activity of Coate Water Care (Arbory) Limited is |
|
Debtors |
|
Group |
Company |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Trade debtors |
|
|
|
|
|
Amounts owed by group undertakings |
- |
- |
|
|
|
Other receivables |
|
|
|
|
|
Prepayments |
|
|
|
|
|
Corporation tax asset |
- |
123,526 |
- |
- |
|
|
|
|
|
|
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
|
Creditors |
|
Group |
Company |
||||
|
Note |
2021 |
2020 |
2021 |
2020 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
Other payables |
|
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
Corporation tax liability |
130,312 |
28,614 |
25,252 |
28,614 |
|
|
Deferred income |
|
|
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Loans and borrowings |
|
Group |
Company |
||||
|
2021 |
2020 |
2021 |
2020 |
||
|
Current loans and borrowings |
|||||
|
Bank borrowings |
|
|
|
|
|
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
||
|
Group |
Company |
|||||
|
2021 |
2020 |
2021 |
2020 |
|||
|
Non-current loans and borrowings |
||||||
|
Bank borrowings |
|
|
|
|
||
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Group
Bank borrowings
|
The bank loans are secured by a legal charge over the freehold properties of the group.
|
On 8 December 2021, the company refinanced £6,337,935 of bank borrowings due for repayment within one year consolidating 3 of the term loans. The new facility is repayable in monthly instalments with the final instalment due for repayment in December 2036. Interest is payable at a fixed rate of 4.02% per annum.
The loans are secured by way of fixed and floating charges over the assets in the company and by way of a guarantee provided by all companies falling under the group headed by the parent company, Coate Water Care Company Limited.
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
|
Share capital |
Allotted, called up and fully paid shares
|
2021 |
2020 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
44 |
|
44 |
|
|
|
44 |
|
44 |
|
|
|
6 |
|
6 |
|
|
|
6 |
|
6 |
|
|
|
1 |
|
1 |
|
|
|
1 |
|
1 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
The different classes of shares rank pari passu in all respects, other than dividend rights. |
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Company
Operating leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Coate Water Care Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
|
Related party transactions |
Group and company
At 31 March 2021, the group owed £102,333 (2020 - £440,300) to Mr C L and Mrs G F Smith in the form of a directors loan account. There are no fixed repayment terms.
During the year, dividends of £174,313 (2020 - £148,000) were paid to the directors.
Company
Summary of transactions with key management
|
Control |
The group is controlled by Mr C and Mrs G Smith.