1st Care Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04254989 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR

1ST CARE LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTOR:

Mrs Jagruti Patel

SECRETARY:

Mr Subhash Mistry

REGISTERED OFFICE:

505 Pinner Road

Harrow

Middlesex

HA2 6EH

REGISTERED NUMBER:

04254989 (England and Wales)

AUDITORS:

STGCA LLP t/a Sterling

Chartered Accountants

& Statutory Auditors

505 Pinner Road

Harrow

Middlesex

HA2 6EH

BANKERS:

Barclays Bank Plc

Market Place

Town Centre

Leicester

Leicestershire

LE87 2BB

The director presents her strategic report of the company and the group for the year ended 31 March 2021.

REVIEW OF BUSINESS

During the year, the group managed care homes which can accommodate 112 residents.

Management is satisfied with the profits earned by the group during the year which helped the group to improve its cash position as well. The nursing homes have continued to achieve the occupancy rate in line with previous year.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the group relate to the current COVID-19 Pandemic which has brought an unprecedented challenge to the business. However, our management and staff have worked tirelessly to maintain stringent infection control measures quickly and effectively to provide the best possible care and protection to our residents.

Another risk facing the care home industry as a whole, is the reliance of agency staff to meet employment demands. The company aims to minimalize its use by ensuring the care home as sufficient staff available.

The director continually reviews risks and uncertainties throughout the period and believe that they have the management and system in place to deal with changing situations.

DEVELOPMENT AND PERFORMANCE

With substantial cash generations by the group, management invested in furniture and fixtures refurbishing the assets at the care Homes thus providing more comfort to the residents. There are plans for further investments in furniture and fixtures refurbishments to maintain a high standard of care in subsequent years.

The group earned net profit before tax of £562,408 (2020: £564,835) on revenue of £5,994,164 (2020: £6,459,155). High wage cost contributed to lower gross profit margins in current year, which reduced from 26% to 24%. As at 31 March 2021, the group had net current assets of £1,422,582 (2020: £1,128,077) which are sufficient for the group to fulfil its working capital requirements. Increase in cash position in current year has helped improve net asset position of the group which stood at £4,632,006 (2020: £4,169,692) at year end.

KEY PERFORMANCE INDICATORS ('KPIS')

In the opinion of the director, key performance indicators of the group include profit before interest and tax and net profit margin. Both performance indicators decreased during the year mainly due to high wage cost. The key performance indicators are closely monitored by the director on regular basis.

ON BEHALF OF THE BOARD:

Mrs Jagruti Patel - Director

29 March 2022

The director presents her report with the financial statements of the company and the group for the year ended 31 March 2021.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of operating of nursing homes

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2021 will be £45,000

DIRECTOR

Mrs Jagruti Patel held office during the whole of the period from 1 April 2020 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless she is 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 director is 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 director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, STGCA LLP t/a Sterling, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs Jagruti Patel - Director

29 March 2022

Opinion

We have audited the financial statements of 1st Care Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 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 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 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 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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.

A fuller description of our responsibilities is provided on the Financial Reporting Council's website at

www.frc.org.uk/auditorsresponsibilities.

Our approach to assessing the risk of material misstatement due to irregularities including Fraud:

- we identified the laws and regulations applicable to the company through discussions with management and also used our commercial and sector experience of the industry;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, UK Government COVID 19 Support Scheme, UK General Data Protection Regulation, the Companies Act 2006, the Corporation Tax Act, UK anti-money laundering regime, employment and health & safety legislation;

- we ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- identified laws and regulations were communicated within our team and remained alert to any indications of non-compliance throughout the audit;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries with Directors and management;

- considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

- we also made enquiries with Directors and management as to where they considered there was susceptibility to fraud,their knowledge of actual, suspected and alleged fraud.

Responding to the risk of material misstatement due to Fraud

To respond to the identified risk of material misstatement due to fraud we assessed events and conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. We implemented following risk assessment procedures:

- tested journal entries to identify significant or unusual transactions and investigated the rationale behind those transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- performed analytical procedures to identify any unusual or unexpected relationship.

Responding to the risk of material misstatement due to non-compliance with Laws and Regulations

We implemented following risk assessment procedures:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading Board minutes; and

- enquiring of management as to actual and potential litigation and claims.

Ability of the audit to detect fraud or breaches of the Laws and Regulations

Owing to the inherent limitations in an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have planned and performed the audit in accordance with the auditing standards. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment, forgery, collusion, misrepresentation, or intentional omission.

Our audit procedures are planned to detect material misstatements. We are not responsible for preventing fraud or non-compliance and cannot be expected to detect non-compliance with all laws and regulations

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.

Prakash Jariwala ACA FCCA (Senior Statutory Auditor)

for and on behalf of STGCA LLP t/a Sterling

Chartered Accountants

& Statutory Auditors

505 Pinner Road

Harrow

Middlesex

HA2 6EH

29 March 2022

TURNOVER

5,994,164

6,459,155

Cost of sales

4,551,745

4,741,406

GROSS PROFIT

1,442,419

1,717,749

Administrative expenses

1,152,861

1,123,018

289,558

594,731

Other operating income

324,191

34,737

OPERATING PROFIT

4

613,749

629,468

Interest payable and similar expenses

5

51,341

64,633

PROFIT BEFORE TAXATION

562,408

564,835

Tax on profit

6

132,656

61,764

PROFIT FOR THE FINANCIAL YEAR

429,752

503,071

Profit attributable to:

Owners of the parent

429,752

503,071

PROFIT FOR THE YEAR

429,752

503,071

OTHER COMPREHENSIVE INCOME

Revaluation gain on property

31,602

1,439,468

Income tax relating to other comprehensive income

45,960

(273,498

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

77,562

1,165,970

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

507,314

1,669,041

Total comprehensive income attributable to:

Owners of the parent

507,314

1,669,041

FIXED ASSETS

Intangible assets

9

1

1

Tangible assets

10

4,893,581

4,815,162

Investments

11

-

-

4,893,582

4,815,163

CURRENT ASSETS

Stocks

12

-

8,364

Debtors

13

1,614,829

1,506,790

Cash at bank and in hand

1,107,104

820,964

2,721,933

2,336,118

CREDITORS

Amounts falling due within one year

14

1,299,351

1,208,041

NET CURRENT ASSETS

1,422,582

1,128,077

TOTAL ASSETS LESS CURRENT LIABILITIES

6,316,164

5,943,240

CREDITORS

Amounts falling due after more than one year

15

(1,370,946

)

(1,439,363

)

PROVISIONS FOR LIABILITIES

19

(313,212

)

(334,185

)

NET ASSETS

4,632,006

4,169,692

CAPITAL AND RESERVES

Called up share capital

20

351,000

351,000

Revaluation reserve

21

1,912,003

1,834,441

Retained earnings

21

2,369,003

1,984,251

SHAREHOLDERS' FUNDS

4,632,006

4,169,692

The financial statements were approved by the director and authorised for issue on 29 March 2022 and were signed by:

Mrs Jagruti Patel - Director

FIXED ASSETS

Intangible assets

9

1

1

Tangible assets

10

4,358,519

4,269,683

Investments

11

563,343

563,343

4,921,863

4,833,027

CURRENT ASSETS

Stocks

12

-

6,972

Debtors

13

1,520,959

1,441,113

Cash at bank and in hand

1,020,364

715,836

2,541,323

2,163,921

CREDITORS

Amounts falling due within one year

14

1,142,482

1,077,347

NET CURRENT ASSETS

1,398,841

1,086,574

TOTAL ASSETS LESS CURRENT LIABILITIES

6,320,704

5,919,601

CREDITORS

Amounts falling due after more than one year

15

(1,370,946

)

(1,439,363

)

PROVISIONS FOR LIABILITIES

19

(306,246

)

(310,446

)

NET ASSETS

4,643,512

4,169,792

CAPITAL AND RESERVES

Called up share capital

20

351,000

351,000

Revaluation reserve

21

1,699,319

1,641,695

Retained earnings

21

2,593,193

2,177,097

SHAREHOLDER FUNDS

4,643,512

4,169,792

Company's profit for the financial year

461,096

352,139

The financial statements were approved by the director and authorised for issue on 29 March 2022 and were signed by:

Mrs Jagruti Patel - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2019

351,000

1,539,230

668,471

2,558,701

Changes in equity

Dividends

-

(58,050

)

-

(58,050

)

Total comprehensive income

-

503,071

1,165,970

1,669,041

Balance at 31 March 2020

351,000

1,984,251

1,834,441

4,169,692

Changes in equity

Dividends

-

(45,000

)

-

(45,000

)

Total comprehensive income

-

429,752

77,562

507,314

Balance at 31 March 2021

351,000

2,369,003

1,912,003

4,632,006

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2019

351,000

1,869,958

542,693

2,763,651

Changes in equity

Dividends

-

(45,000

)

-

(45,000

)

Total comprehensive income

-

352,139

1,099,002

1,451,141

Balance at 31 March 2020

351,000

2,177,097

1,641,695

4,169,792

Changes in equity

Dividends

-

(45,000

)

-

(45,000

)

Total comprehensive income

-

461,096

57,624

518,720

Balance at 31 March 2021

351,000

2,593,193

1,699,319

4,643,512

Cash flows from operating activities

Cash generated from operations

1

925,865

976,922

Tax paid

(89,730

)

(35,248

)

Net cash from operating activities

836,135

941,674

Cash flows from investing activities

Purchase of tangible fixed assets

(220,149

)

(363,585

)

Sale of tangible fixed assets

17,938

9,506

Net cash from investing activities

(202,211

)

(354,079

)

Cash flows from financing activities

New loans in year

315,303

-

Loan repayments in year

(243,493

)

(194,688

)

Amount introduced by directors

33,363

-

Amount withdrawn by directors

(196,382

)

258,217

Paid to associates undertakings

(160,234

)

(363,951

)

Equity dividends paid

(45,000

)

(58,050

)

Interest paid

(51,341

)

(64,633

)

Net cash from financing activities

(347,784

)

(423,105

)

Increase in cash and cash equivalents

286,140

164,490

Cash and cash equivalents at beginning of year

2

820,964

656,474

Cash and cash equivalents at end of year

2

1,107,104

820,964

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

31/3/21

31/3/20

£

£

Profit before taxation

562,408

564,835

Depreciation charges

152,689

160,663

Loss on disposal of fixed assets

2,704

283

Finance costs

51,341

64,633

769,142

790,414

Decrease in stocks

8,364

7,176

Decrease in trade and other debtors

52,195

15,344

Increase in trade and other creditors

96,164

163,988

Cash generated from operations

925,865

976,922

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 31 March 2021

31/3/21

1/4/20

£

£

Cash and cash equivalents

1,107,104

820,964

Year ended 31 March 2020

31/3/20

1/4/19

£

£

Cash and cash equivalents

820,964

656,474

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/4/20

Cash flow

At 31/3/21

£

£

£

Net cash

Cash at bank and in hand

820,964

286,140

1,107,104

820,964

286,140

1,107,104

Debt

Finance leases

(20,193

)

(49,807

)

(70,000

)

Debts falling due within 1 year

(166,200

)

(122,750

)

(288,950

)

Debts falling due after 1 year

(1,419,170

)

100,748

(1,318,422

)

(1,605,563

)

(71,809

)

(1,677,372

)

Total

(784,599

)

214,331

(570,268

)

1.	STATUTORY INFORMATION

1st Care 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 General 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The group financial statements consolidate the financial statements of 1st care limited and all its subsidiary undertaking drawn up to the year ending 31 March 2020. Subsidiary is consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities.

Turnover

Turnover represents fees receivable for services provided.

Revenue recognition

Revenue from nursing home is recognised in the accounting period in which the company obtains the right to consideration.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2002, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property - 2% on cost

Plant and Machinery - 25% on reducing balance

Fixtures and fittings - 25% on reducing balance

Motor vehicles - 25% on reducing balance

Surplus arising from the valuation of freehold property are taken directly to the revaluation reserve. Deficits are eliminated against any revaluation reserve in respect of that income generating unit with any excess, to the extent that it represents an impairment, being charged to profit and loss account.

Investments in subsidiaries

Investments in subsidiary undertaking are recognised at cost, less impairment.

Government grants

Government Grant that was received or receivable as compensation for business expenses has been recognised as income in the period in which it becomes receivable.

Stocks

Stocks are measured at the lower of cost and selling price less cost to sell. Cost is calculated on a first in, first out basis and includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.