Pendine Park Care Organisation Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 07055392 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 April 2021

for

Pendine Park Care Organisation Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

8

Report of the Independent Auditors

10

Consolidated Income Statement

13

Consolidated Other Comprehensive Income

14

Consolidated Balance Sheet

15

Company Balance Sheet

16

Consolidated Statement of Changes in Equity

17

Company Statement of Changes in Equity

18

Consolidated Cash Flow Statement

19

Notes to the Consolidated Cash Flow Statement

20

Notes to the Consolidated Financial Statements

21

DIRECTORS:

Mr M F Kreft

Mrs G H Kreft

REGISTERED OFFICE:

Bromfield House

Ellice Way

Wrexham Technology Park

Wrexham

LL13 7YW

REGISTERED NUMBER:

07055392 (England and Wales)

AUDITORS:

Pritchett & Co Business Advisers Limited

Chartered Accountants and Statutory Auditors

16 Wynnstay Road

Colwyn Bay

Conwy

LL29 8NB

The directors present their strategic report of the company and the group for the year ended 30 April 2021.

Pendine Park Care Organisation Ltd ' the Company' trades from locations in Wrexham, North East Wales and Caernarfon, North West Wales, providing registered services for up to 450 residents with a range of physical and complex nursing needs including mental health, dementia, younger adult services, companion living and care apartments.

The Company meets the widely accepted challenges of the social care sector by adopting a very simple and rational business model and strategy, which pursues, within the constrained North Wales economic landscape, above sector average levels of occupancy, higher average fees and external training services. Our strategy being to generate the funds necessary for continuous reinvestment in facilities and environment, services, and a highly trained and valued workforce skilled in delivering often complex care services and all within a reasonable ratio of wages to fees, and value for money for the publicly funded services.

The Company's subsidiary, The Pendine Academy of Social Care Ltd, provides vocational qualifications to the care sector in North Wales as well as facilitating significant levels of 'in house' bespoke training. We are particularly proud of our collaboration with the Open University to train registered nurses in a social care setting, which is now in its third cohort, taking numbers to 14.

People are at the heart of the Company's business strategy. Our 'enriching lives across the generations' philosophy, enriches the lives of residents, their friends and families, our staff and our wider community, locally, regionally and nationally.

Our philosophy is delivered in two main ways. First through the values beliefs and cultures embedded in everyday life by the Pendine team, and secondly through the Pendine Arts & Community Trust ('PACT').

PACT is a virtual trust giving a structure and brand to the Company's wide and varied community engagements. The Company supports Arts and Community based organisations across Wales and beyond and has been widely recognised. For example, one such award was the Arts & Business Cymru Award 2019 for promoting health and well-being in Wales. Many other collaborations exist including long standing relationships with the Halle Orchestra, Llangollen International Music Festival, Welsh National Opera, North Wales International Music Festival and numerous other charities and community engagements. These collaborations continue to enrich the lives of many across all generations and provide natural stimulus for our enriching lives through the Welsh language and culture.

The 2020 vision of the Company was to continue investment in its operational infrastructure and financially prepare for a new care home construction for which outline planning was received in 2019. This vision is still alive and achievements have been made despite the global pandemic and economic consequences.

COVID-19

We are currently in the fourth wave of the pandemic having navigated the earlier waves through the brilliance, resilience, dedication and professionalism of our staff. The first wave and original virus manifested in uncertainty and anxiety felt by many in our community. The second wave and the Alpha variant peaked in NE Wales in early January 2021. The third wave commenced in June 2021 and whilst bolstered by the vaccination program, Covid's 'alert level zero' journey on the ground has been difficult for health and social care, impacted by very high number of cases arising from the opening up of the national economy. The third wave of Delta and Omicron now runs parallel with the fourth wave.

We reported on our first wave strategy last year and we have continued with many of the same principles since then, including frequent prompt responses to Welsh Government guidance embedded in our business continuity plans and risk assessments. We have also continued regular Covid bulletins to our staff and community. We are approaching 250 messages since 2nd March 2020 across a range of topics including Covid updates, fun, mindful, health and wellbeing, community and staff recognition.

Initially, Government support was not easily deployed and we managed our own Covid response such as accessing PPE from the Far East and through the generous support of our community. After this early interrupted start, the flow of support from Welsh Government has been sustained and is highly commended and has been facilitated through the steadfast commitment of Care Forum Wales to its members. Some Local Authorities struggled with deployment of the Governments funding though overall in North Wales we experienced extraordinary efforts to support the sector. Welsh Government also funded an unprecedented £1,235 per person bonus to all front line staff.

Staffing levels were affected in each main wave, none more so than the third wave and we expect the fourth wave to challenge yet more. Recruitment remains difficult and the dedicated social care workforce is exhausted. Thanks to our community which loyally supports residents and staff.

Our core COVID strategy:

• Infection Prevention and Control Training for all staff continually addressing the latest Government guidance.

• PPE supplies. Having secured our own early supplies the flow of Government stocks has continued.

• Leadership and camaraderie bolstered by the kindness of the wider Pendine community and by the dedicated and courageous staff who provided essential services throughout or returned after short absences.

• A continuous flow of communication and information.

• Flexible and adaptive business continuity plans.

• Listening to managers and staff and interpreting and informing on the plethora of varied guidance in a practical and timely way.

• Constant focus on Recruitment and Staffing Levels.

COVID-19 challenges include:

• Reaching out to relatives and our community across various lock downs and restrictions has been very challenging for a company proud of its 24/7 access. Facebook, Instagram and Twitter, and all electronic meeting options have been embraced and a new way of enriching lives has emerged, including everyday life activities with staff in lieu of much missed family visits.

• Navigating safe admissions disrupted by the crisis, particularly general nursing including the immediate withdrawal of a highly successful Discharge to Assess program with the Local Health Board in April 2020.

• Managing staff absences, staff fears and concerns.

• Recruitment.

• Creating stock piles of PPE and of food especially in the early stages.

• Segregation and Home working presented logistical and digital challenges daily.

• Keeping up with ever changing guidance, addressed with the support of valued consultants supporting the core management team.

• Achieving training outcomes of new and standard materials and induction without easy access to premises which we have met by developing staff and trainers to be self-sufficient within each setting, sustained as possible during the various phases of the pandemic. A refreshed training strategy is again underway.

• Crisis fatigue and the toll on health and wellbeing, as COVID indiscriminately challenges the whole team at every level.

• Cost control, particularly difficult in the worst of the crisis with COVID risks propelling expenditure on wages, goods and services and overheads. Price increases were uncontrollable in certain areas. On the other hand, regular spending was sometimes halted because of access and availability. Investment in facilities through capital, repairs and refurbishment, will revert back to pre-pandemic levels.

• Government guidance interpreted by numerous Local Authorities and Health Boards was inconsistent early in the pandemic although has since stabilised to good effect supported by Care Forum Wales.

• Cyber security and GDPR, addressed with training materials and a renewal of Cyber Essentials Plus accreditation and an expansion of our digital strategy.

Business Review Risks and Challenges

A summary of the key management information for 2019, 2020 and 2021, compared to the Knight Frank Annual Care Home Review (KF Review) for 2019 and 2020, is as follows:

Year Ended 2019

Year Ended 2020

Year Ended 2021

Occupancy

97%

96%

90%*

KF Review

89%

88%

Average Weekly Fees

£905

£958

£998

KF Review- All Care

£837

£889

KF Review- Nursing

£897

£953

Wages to Turnover

60.5%

62.8%

61.4%

KF Review- All Care

58.6%

58.0%

KF Review- Nursing

59.8%

59.0%

Repairs, Refurbishment and Capital Expenditure

£1.2m

£1.7m

£0.7m*

The Knight Frank Annual Care Home Review is the leading industry benchmarking report for Care Home trading performance, for each financial year.

Year Ended 2021 *

• During the 2022 financial year, occupancy has returned to pre-pandemic levels of 98% or similar;

• Expenditure delayed on account of the pandemic

Trading surpluses in 2021 have been maintained as a result of:

• Good levels of Occupancy which we credit to the dedication, commitment and professionalism of our registered managers and their teams.

• Welsh Government Covid support, for voids and costs.

• Underspending on regular expenditure where Covid interrupted access and availability, for example repairs, refurbishment and capital expenditure.

• General savings on minor items such as paper and mileage as a result of the shift to home working for office staff and increased digital working.

• Our great team of experienced managers and highly trained staff, highly respected and valued by the Company and across all depts.

• A strong brand awareness across the region promoted through our 'Enriching Lives' philosophy of social responsibility, community and sector engagement and channelled through PACT.

Welsh Government Covid Support was provided through a complex funding structure and paid across a range of headings including:

• Voids in Occupancy.

• Wages for Covid related activities, for example testing.

• Direct costs and overheads.

Throughout the Pandemic, and since March 2020, we have estimated costs we believe have resulted from the impact of the pandemic, on a monthly basis. At December 2021 cumulative costs amount to £5.15m.

The Company recently settled a long standing dispute debt with the North Wales Health Board accepting £258k to December 2020. The Health Board also marginally increased regular fees early on the pandemic as a first response. Generally inadequate Health Board and Local Authority Fee levels do not reflect staffing levels to meet residents increasing needs and limit the Company's ability to enhance pay and career pathways.

Standard fees paid by the authorities do not typically include supplements for enrichment and activities, nor 'state of the art' properties. However in recent weeks Welsh Government has commendably announced its further commitment to the sector and is seeking to fund the National Living Wage (NLW) from April 2022. Additionally the Company brought forward 2022 pay increases by 5 months meeting the NLW wef 1st November 2021.

Our general business model is a simple fusion of the following components:

• High levels of occupancy.

• Fair to Good cost control including the ratio of wages to turnover.

• Continuous repairs and refurbishment to existing facilities, regular upgrade of fixtures, fittings and equipment and capital expenditure on new and existing facilities.

• The continued development of The Pendine Academy of Social Care ('The Academy') which facilitates significant levels of in house staff training and support, including mandatory training, care practice, clinical practice and our Enriching Lives program as well as other regular training programs including induction, team leader training promoting leadership and management skills, bespoke care plan training to meet complex needs, clinical care practitioner training and clinical support for senior and primary nurses. The Academy also provides significant levels of regulatory vocational qualifications to our staff and the North Wales social care sector.

General business risks in the Company profile include:

• Increasing levels of physical and mental health frailty and dependency.

• Increasing demand for services compromised by hospital discharge procedures.

• Relatively small private market across North Wales further exacerbated when private clients, whose health needs deteriorate move onto Continuing Healthcare NHS Funding at a significantly lower fee.

• Government regulation uniquely operates without reference to cost implications and the inherent value of the services in real terms. The Care Inspectorate for Wales was formed in 2017 to oversee the implementation of the new social care which required the re-registration of all social care provision in Wales. The Company has met all the re-registration requirements and has fully embraced the requirements of the new governance arrangements.

• Brexit has resulted in increases in core running costs including utilities and medical supplies and the well-publicised exodus of EU nationals affecting UK employment levels.

Employee Involvement

The Company regards communication with its employees as a key aspect of its policies and staff views are canvassed through surveys, forums, regular supervision and the appraisal processes. Information is given to employees about employment matters and about the financial and economic factors affecting the Company's performance through management channels. The Company are mindful employers, who adhere to an Employers Charter pledge, and employees are encouraged to discuss operational and strategic issues with their line management.

With regards to the Covid pandemic, the Company has, and continues to engage regularly with employees, providing information and support on all matters with regards to their health and wellbeing and the impact of Government Regulations on life at Pendine, at home and in the wider community.

Employment of disabled persons

The Company is committed to providing equal opportunities to employees. The employment of disabled persons is included in this commitment and the recruitment, training, career development and promotion is based on the aptitudes and abilities of the individual.

ON BEHALF OF THE BOARD:

Mr M F Kreft - Director

31 January 2022

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

DIVIDENDS

The total distribution for the year ended 30 April 2021 was nil.

DIRECTORS

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

Mr M F Kreft

Mrs G H Kreft

Other changes in directors holding office are as follows:

Mrs G Hughes ceased to be a director after 30 April 2021 but prior to the date of this report.

ENERGY AND CARBON REPORTING

Based on actual usage information, the company has consumed 4,665,005 KWH in gas and 1,218,623 KWH in electricity which equates to 860,134 kgCO2e and 258,750 kgCO2e in Greenhouse Gas Emissions (GHG) respectively. The use of energy is predominantly in relation to the care home activity operated by the company with minimal energy being consumed by transport. As a result, the figures noted above are assumed to relate 100% to the operating of care homes.

As the consumption is in relation to the operating of care homes, it is considered reasonable to apportion the consumption against the total number of beds across all sites:

Gas

KwH Consumed - 4,665,005, per bed 10,530

GHG Emissions - 860,134, per bed 1,942

Electricity

KwH Consumed - 1,218,623, per bed 2,751

GHG Emissions - 258,750, per bed 584

We have followed the GHG Reporting Protocol - Corporate Standard and have used the 2021 UK Government's Conversion Factors for Company Reporting.

We are fully committed to corporate social responsibility, operating in accordance with best practice and bringing social value to all communities in which we work. The vision of the company is to continue to invest in its operational infrastructure. In refurbishment projects and future building work projects, we aim to be sustainable and innovative in reducing our environmental impact in order to build towards a greener future.

We improve business energy efficiency by:

• Continual review of energy tariffs;

• Replacement with energy efficient lighting through all sites;

• Investment in energy efficient equipment were possible.

In addition, we are committed to mitigate greenhouse gas emissions through conservation projects, including planting trees, planting hedgerows and regenerative agriculture.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Pritchett & Co Business Advisers Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M F Kreft - Director

31 January 2022

Opinion

We have audited the financial statements of Pendine Park Care Organisation Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 April 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 Auditors' 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 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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 nine, 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 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Enquiries of management and those charged with governance were held in order to identify any laws and regulations that could be expected to have a material impact on the financial statements. Throughout the audit, the team were updated with the outcome of these enquiries including consideration as to where and how fraud may occur in the company.

The audit procedures undertaken to address any potential risk in relation to irregularities (which include fraud and non-compliance with laws and regulations) included; enquiries of management and those charged with governance on how the company comply with relevant laws, regulations and cases actual or potential litigation or claims; examination of appropriate legal correspondence, review of the board minutes, testing of journal entries for appropriateness; and analytical procedures on account balances to identify variances against expectation which may show indications of fraud.

No instances of material non-compliance were identified, although the prospect of detecting irregularities, including fraud, is inherently difficult. This is due to; difficulty in detecting irregularities; limits imposed by the effectiveness of the entity's controls; and the nature, timing and extent of the audit procedures performed. Irregularities as a result of fraud are inherently more difficult to detect than those resulting from error. Despite the audit being planned and performed in accordance with ISAs (UK), there is an unavoidable risk that material misstatements may not be detected.

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.

Andrew Morris (Senior Statutory Auditor)

for and on behalf of Pritchett & Co Business Advisers Limited

Chartered Accountants and Statutory Auditors

16 Wynnstay Road

Colwyn Bay

Conwy

LL29 8NB

31 January 2022

TURNOVER

22,142,213

22,215,622

Cost of sales

14,762,983

14,963,452

GROSS PROFIT

7,379,230

7,252,170

Administrative expenses

2,415,716

3,207,830

4,963,514

4,044,340

Other operating income

147,017

154,926

OPERATING PROFIT

4

5,110,531

4,199,266

Interest receivable and similar income

241

41,253

5,110,772

4,240,519

Interest payable and similar expenses

5

82,499

-

PROFIT BEFORE TAXATION

5,028,273

4,240,519

Tax on profit

6

1,198,430

782,711

PROFIT FOR THE FINANCIAL YEAR

3,829,843

3,457,808

Profit attributable to:

Owners of the parent

3,829,843

3,457,808

PROFIT FOR THE YEAR

3,829,843

3,457,808

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,829,843

3,457,808

Total comprehensive income attributable to:

Owners of the parent

3,829,843

3,457,808

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

25,821,551

28,480,795

Investments

11

-

-

25,821,551

28,480,795

CURRENT ASSETS

Stocks

12

200,981

197,961

Debtors

13

2,309,585

2,283,224

Cash at bank and in hand

2,049,880

9,562,517

4,560,446

12,043,702

CREDITORS

Amounts falling due within one year

14

3,220,620

19,059,175

NET CURRENT ASSETS/(LIABILITIES)

1,339,826

(7,015,473

)

TOTAL ASSETS LESS CURRENT LIABILITIES

27,161,377

21,465,322

CREDITORS

Amounts falling due after more than one year

15

4,120,565

2,254,353

NET ASSETS

23,040,812

19,210,969

CAPITAL AND RESERVES

Called up share capital

17

1,000

1,000

Other reserves

18

20,827

-

Retained earnings

18

23,018,985

19,209,969

SHAREHOLDERS' FUNDS

23,040,812

19,210,969

The financial statements were approved by the Board of Directors and authorised for issue on 31 January 2022 and were signed on its behalf by:

Mr M F Kreft - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

25,821,551

26,697,943

Investments

11

201

201

25,821,752

26,698,144

CURRENT ASSETS

Stocks

12

200,856

196,905

Debtors

13

2,331,815

2,248,659

Cash at bank and in hand

1,922,423

1,210,035

4,455,094

3,655,599

CREDITORS

Amounts falling due within one year

14

3,173,672

9,033,258

NET CURRENT ASSETS/(LIABILITIES)

1,281,422

(5,377,659

)

TOTAL ASSETS LESS CURRENT LIABILITIES

27,103,174

21,320,485

CREDITORS

Amounts falling due after more than one year

15

4,120,565

2,254,353

NET ASSETS

22,982,609

19,066,132

CAPITAL AND RESERVES

Called up share capital

17

1,000

1,000

Retained earnings

18

22,981,609

19,065,132

SHAREHOLDERS' FUNDS

22,982,609

19,066,132

Company's profit for the financial year

3,916,477

3,367,370

The financial statements were approved by the Board of Directors and authorised for issue on 31 January 2022 and were signed on its behalf by:

Mr M F Kreft - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 May 2019

1,000

15,822,161

-

15,823,161

Changes in equity

Dividends

-

(70,000

)

-

(70,000

)

Total comprehensive income

-

3,457,808

-

3,457,808

Balance at 30 April 2020

1,000

19,209,969

-

19,210,969

Changes in equity

Total comprehensive income

-

3,829,843

-

3,829,843

Other reserves

-

(20,827

)

20,827

-

Balance at 30 April 2021

1,000

23,018,985

20,827

23,040,812

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2019

1,000

15,767,762

15,768,762

Changes in equity

Dividends

-

(70,000

)

(70,000

)

Total comprehensive income

-

3,367,370

3,367,370

Balance at 30 April 2020

1,000

19,065,132

19,066,132

Changes in equity

Total comprehensive income

-

3,916,477

3,916,477

Balance at 30 April 2021

1,000

22,981,609

22,982,609

Cash flows from operating activities

Cash generated from operations

1

7,241,934

5,262,828

Interest paid

(82,499

)

-

Tax paid

(917,615

)

(1,380,838

)

Net cash from operating activities

6,241,820

3,881,990

Cash flows from investing activities

Purchase of tangible fixed assets

(361,182

)

(21,683,848

)

Sale of intangible fixed assets

-

42,900

Sale of tangible fixed assets

-

899,999

Interest received

241

41,253

Net cash from investing activities

(360,941

)

(20,699,696

)

Cash flows from financing activities

Net new loans in year

2,098,887

2,481,050

Net movement with directors

(15,492,403

)

17,098,456

Equity dividends paid

-

(70,000

)

Net cash from financing activities

(13,393,516

)

19,509,506

(Decrease)/increase in cash and cash equivalents

(7,512,637

)

2,691,800

Cash and cash equivalents at beginning of year

2

9,562,517

6,870,717

Cash and cash equivalents at end of year

2

2,049,880

9,562,517

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

£

£

Profit before taxation

5,028,273

4,240,519

Depreciation charges

1,237,574

1,393,274

Profit on disposal of fixed assets

-

(263,034

)

Finance costs

82,499

-

Interest received

(241

)

(41,253

)

6,348,105

5,329,506

Increase in stocks

(3,020

)

(104,486

)

(Increase)/decrease in trade and other debtors

(144,165

)

334,793

Increase/(decrease) in trade and other creditors

1,041,014

(296,985

)

Cash generated from operations

7,241,934

5,262,828

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

2,049,880

9,562,517

Year ended 30 April 2020

30/4/20

1/5/19

£

£

Cash and cash equivalents

9,562,517

6,870,717

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/5/20

Cash flow

At 30/4/21

£

£

£

Net cash

Cash at bank and in hand

9,562,517

(7,512,637

)

2,049,880

9,562,517

(7,512,637

)

2,049,880

Debt

Debts falling due within 1 year

(226,697

)

(232,675

)

(459,372

)

Debts falling due after 1 year

(2,254,353

)

(1,866,212

)

(4,120,565

)

(2,481,050

)

(2,098,887

)

(4,579,937

)

Total

7,081,467

(9,611,524

)

(2,530,057

)