BURCOT_LIMITED - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

Burcot Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old House, 64 The Avenue, Egham, TW20 9AD.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has not had any income in the period, in line with the director's expectations during the period of construction prior to commencing trade. The director is confident in the long term profitability of the business beyond the initial start up period, and has no reason to doubt the intention of funders and investors to continue to provide financial support during this phase to enable the company to meet its obligations as they fall due. Accordingly the financial statements have been prepared on a going concern basis. true

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Assets under construction - Nil

No depreciation is provided on assets under construction as the asset has not been brought into use. Capitalised values have been based on the purchase or construction price including related legal, professional and consultancy expenditure, bank interest and charges capitalised and any irrecoverable VAT. The value is reviewed at the balance sheet date and any permanent diminution in value is provided for through the profit and loss account.

The bank loan is secured by way of a debenture incorporating a fixed and floating charge covering the property and undertaking of the company, and falls due for repayment in October 2022.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The company is party to unlimited cross guarantees, in favour of Bank Leumi (UK) plc, in respect of certain borrowings of all companies in the group headed by Burcot Holdings Limited and of Hartwood Care (2) Limited, a fellow subsidiary undertaking of the wider group headed by Cinnamon Care Homes LP. At 31 March 2021, the net borrowings encompassed by the cross guarantee amounted to £15,885,313 (2020: £15,885,313).

The initial activities of the company are funded by way of loans from its immediate parent undertaking, Burcot Holdings Limited.

At the balance sheet date, the company owed £828,845 (2020: £828,845) to Burcot Holdings Limited. The balance is interest free and repayable on demand, however in view of the longer term nature of advances to the company by Burcot Holdings Limited it has been classified as falling due after more than one year.

Notional interest charges on interest free advances between related entities have been accrued where material, as required by FRS 102, and are presented in other creditors falling due after more than one year in the sum of £28,560 (2020: £11,560). The settlement of such interest is subordinated to advances from external funders.

At the balance sheet date the company owed £84,462 (2020: £57,731 classified as falling due within more than one year) to Burcot Grange Care Home Limited, a fellow subsidiary of Burcot Holdings Limited. The balance is interest free and repayable on demand and has been classified as falling due within one year.

At the balance sheet date the company owed £9,433 (2020: £9,433 classified as falling due within more than one year) to Reflections Care Home Limited, a fellow member of the group headed by Cinnamon Care Homes LP. The balance is interest free and repayable on demand and has been classified as falling due within one year.

The immediate parent undertaking of the company is Burcot Holdings Limited by virtue of its beneficial shareholding. The registered address of the parent undertaking is The Old House, 64 The Avenue, Egham, TW20 9AD.