Springhill Hospice (Services) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02802521 (England and Wales)

Report of the Directors and

Audited Financial Statements for the Year Ended 31 March 2021

for

Springhill Hospice (Services) Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Income Statement

5

Balance Sheet

6

Statement of Changes in Equity

7

Notes to the Financial Statements

8

DIRECTORS:

J K Davies

Ms L A Mort

Miss K Efthymiadis

Ms J Heap

REGISTERED OFFICE:

Broad Lane

Rochdale

Lancashire

OL16 4PZ

REGISTERED NUMBER:

02802521 (England and Wales)

SENIOR STATUTORY AUDITOR:

John L Wild

AUDITORS:

PKW Chartered Accountants LLP

Cloth Hall

150 Drake Street

Rochdale

Lancashire

OL16 1PX

The directors present their report with the financial statements of the company for the year ended 31 March 2021.

DIRECTORS

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

J K Davies

Ms L A Mort

Miss K Efthymiadis

Ms J Heap

Other changes in directors holding office are as follows:

R Clegg ceased to be a director after 31 March 2021 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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). 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.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

BY ORDER OF THE BOARD:

Ms J Heap - Director

17 November 2021

Opinion

We have audited the financial statements of Springhill Hospice (Services) Limited (the 'company') for the year ended 31 March 2021 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity 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 company's affairs as at 31 March 2021 and of its loss 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.

Other information

The directors are responsible for the other information. The other information comprises the information in 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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:

-

review of financial statement disclosures and vouching to supporting documentation to assess compliance with applicable laws and regulations;

-

auditing the risk of management override of controls, including the testing of journal entries and other adjustments for appropriateness;

-

testing the effectiveness of the company's internal controls and systems;

-

use of analytical procedures to review client data for unusual trends and fluctuations.

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.

John L Wild (Senior Statutory Auditor)

for and on behalf of PKW Chartered Accountants LLP

Cloth Hall

150 Drake Street

Rochdale

Lancashire

OL16 1PX

17 November 2021

TURNOVER

172,347

679,644

Cost of sales

15,945

28,238

GROSS PROFIT

156,402

651,406

Administrative expenses

416,596

540,200

(260,194

)

111,206

Other operating income

3

172,006

95,410

OPERATING (LOSS)/PROFIT

(88,188

)

206,616

Interest receivable and similar income

80

215

(LOSS)/PROFIT BEFORE TAXATION

(88,108

)

206,831

Tax on (loss)/profit

5

-

-

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(88,108

)

206,831

FIXED ASSETS

Tangible assets

6

289,139

267,679

Investments

7

2

2

289,141

267,681

CURRENT ASSETS

Stocks

3,123

10,997

Debtors

8

21,094

120,533

Cash at bank and in hand

331,375

141,266

355,592

272,796

CREDITORS

Amounts falling due within one year

9

689,602

497,238

NET CURRENT LIABILITIES

(334,010

)

(224,442

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(44,869

)

43,239

CAPITAL AND RESERVES

Called up share capital

10

100

100

Retained earnings

(44,969

)

43,139

SHAREHOLDERS' FUNDS

(44,869

)

43,239

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 17 November 2021 and were signed on its behalf by:

Ms J Heap - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2019

100

-

100

Changes in equity

Total comprehensive income

-

206,831

206,831

Gift Aid to Springhill Hospice

(Rochdale)

-

(163,692

)

(163,692

)

Balance at 31 March 2020

100

43,139

43,239

Changes in equity

Total comprehensive income

-

(88,108

)

(88,108

)

Balance at 31 March 2021

100

(44,969

)

(44,869

)

1.	STATUTORY INFORMATION

Springhill Hospice (Services) 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.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Springhill Hospice (Services) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Springhill Hospice (Rochdale), .

Turnover

Turnover represents the value of goods supplied to customers during the year net of Value Added Tax.

Tangible fixed assets

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

Freehold property

-

4% on cost

Fixtures and fittings

-

10% on reducing balance

Computer equipment

-

10% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Grant income

Grants are recognised in income at the date when entitlement to the monies is established.

Going concern

The company suffered a loss for the year of £88,108 and had a deficiency on shareholders funds of £44,969 at the year end (2020 - £43,139 surplus). The directors have considered whether the accounts should be prepared on a going concern basis, and have taken into account the following:

With the exception of amounts due to the parent charity, the company is able to meet its liabilities as they fall due. It continues to be supported by its parent company.

The directors have, therefore, concluded that the accounts are properly prepared on the going concern basis.

3.	OTHER OPERATING INCOME

Government grant income of £172,006 comprises both Small Business Grant Fund and Job Retention Scheme Grant monies in respect of government support during the coronavirus pandemic.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2020 - 25 ) .

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 March 2021 nor for the year ended 31 March 2020.

The company pays over their profits to the parent charity, Springhill Hospice (Rochdale), as a donation under gift aid. These distributions are not subject to Corporation Tax as long as they are paid over within the financial year or within 9 months of the year end.

6.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2020

172,104

80,129

63,478

315,711

Additions

-

48,527

-

48,527

At 31 March 2021

172,104

128,656

63,478

364,238

DEPRECIATION

At 1 April 2020

20,652

27,152

228

48,032

Charge for year

6,884

13,858

6,325

27,067

At 31 March 2021

27,536

41,010

6,553

75,099

NET BOOK VALUE

At 31 March 2021

144,568

87,646

56,925

289,139

At 31 March 2020

151,452

52,977

63,250

267,679

7.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2020

and 31 March 2021

2

NET BOOK VALUE

At 31 March 2021

2

At 31 March 2020

2

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

8,181

-

Other debtors

5,720

95,936

VAT

1,004

13,879

Prepayments and accrued income

6,189

10,718

21,094

120,533

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

8,281

53,342

Amounts owed to group undertakings

661,518

428,523

Accruals and deferred income

19,803

15,373

689,602

497,238

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

100

Ordinary

£1

100

100

11.	OTHER FINANCIAL COMMITMENTS

The company had outstanding commitments in respect of operating leases at 31 March 2021 of £8,800 (2020: £8,800).

12.	ULTIMATE CONTROLLING PARTY