Hardwick Dene Ltd - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 09166794 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 March 2022

for

HARDWICK DENE LTD

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

Directors:

Mr K P Sohal

Mrs H K Sohal

Mr K I S Sohal

Secretary:

Mr K P Sohal

Registered office:

51 Parkstone Avenue

Emerson Park

Hornchurch

Essex

RM11 3LN

Registered number:

09166794 (England and Wales)

Accountants:

Haines Watts Essex LLP

Chartered Accountants

Juniper House

Warley Hill Business Park

The Drive

Brentwood

Essex

CM13 3BE

Fixed assets

Intangible assets

4

267,000

311,500

Tangible assets

5

2,319,258

2,377,645

2,586,258

2,689,145

Current assets

Debtors

6

1,798,823

1,000,765

Cash at bank and in hand

53,040

609,422

1,851,863

1,610,187

Creditors

Amounts falling due within one year

7

347,316

283,103

Net current assets

1,504,547

1,327,084

Total assets less current liabilities

4,090,805

4,016,229

Creditors

Amounts falling due after more than one year

8

(2,142,825

)

(2,375,585

)

Provisions for liabilities

11

(9,235

)

(9,555

)

Net assets

1,938,745

1,631,089

Capital and reserves

Called up share capital

12

3

3

Retained earnings

1,938,742

1,631,086

Shareholders' funds

1,938,745

1,631,089

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 31 March 2023 and were signed on its behalf by:

Mr K P Sohal - Director

1.	Statutory information

Hardwick Dene Ltd 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

Turnover

Turnover represents the charges made to residents for care and related services. Such charges are exempt for VAT purposes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of thirteen years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

-

nil on land & buildings

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

20% on reducing balance

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

3.	Employees and directors

The average number of employees during the year was 38 (2021 - 39 ) .

4.	Intangible fixed assets

Goodwill

£

Cost

At 1 April 2021

and 31 March 2022

585,917

Amortisation

At 1 April 2021

274,417

Amortisation for year

44,500

At 31 March 2022

318,917

Net book value

At 31 March 2022

267,000

At 31 March 2021

311,500

5.	Tangible fixed assets

Fixtures

Freehold

and

Motor

Computer

property

fittings

vehicles

equipment

Totals

£

£

£

£

£

Cost

At 1 April 2021

2,267,439

104,421

75,282

9,260

2,456,402

Additions

-

10,506

-

-

10,506

Disposals

-

-

(63,744

)

-

(63,744

)

At 31 March 2022

2,267,439

114,927

11,538

9,260

2,403,164

Depreciation

At 1 April 2021

-

64,675

10,055

4,027

78,757

Charge for year

-

8,905

1,571

1,047

11,523

Eliminated on disposal

-

-

(6,374

)

-

(6,374

)

At 31 March 2022

-

73,580

5,252

5,074

83,906

Net book value

At 31 March 2022

2,267,439

41,347

6,286

4,186

2,319,258

At 31 March 2021

2,267,439

39,746

65,227

5,233

2,377,645

The directors carried out their annual review of the company's assets. They considered whether there were any adverse market or legal changes which could materially reduce the likely recoverable value of the property, or whether there was any evidence of physical deterioration or damage advised by any appraisers or professional consultants.

Having considered the facts, the directors are of the opinion that the potential residual value of the property will not be less than the values as shown in the company's accounts and as such depreciation should not be charged against the company's freehold property.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

Cost

At 1 April 2021

63,744

Disposals

(63,744

)

At 31 March 2022

-

Depreciation

At 1 April 2021

6,374

Eliminated on disposal

(6,374

)

At 31 March 2022

-

Net book value

At 31 March 2022

-

At 31 March 2021

57,370

6.

Debtors

2022

2021

£

£

Amounts falling due within one year:

Trade debtors

123,478

62,970

Other debtors

156,242

8,692

279,720

71,662

Amounts falling due after more than one year:

Other debtors

1,519,103

929,103

Aggregate amounts

1,798,823

1,000,765

7.

Creditors: amounts falling due within one year

2022

2021

£

£

Bank loans and overdrafts

189,632

117,892

Hire purchase contracts (see note 9)

-

6,894

Trade creditors

28,532

22,521

Taxation and social security

82,184

84,062

Other creditors

46,968

51,734

347,316

283,103

8.

Creditors: amounts falling due after more than one year

2022

2021

£

£

Bank loans

1,970,769

2,174,152

Hire purchase contracts (see note 9)

-

29,077

Other creditors

172,056

172,356

2,142,825

2,375,585

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

1,279,949

1,502,584

9.	Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase contracts

2022

2021

£

£

Net obligations repayable:

Within one year

-

6,894

Between one and five years

-

29,077

-

35,971

Non-cancellable

operating leases

2022

2021

£

£

Within one year

9,475

-

Between one and five years

37,901

-

In more than five years

22,898

-

70,274

-

10.	Secured debts

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

2,160,401

2,292,044

The company has provided security to its bankers, Barclays Bank PLC, by way of a negative pledge. This security is provided in respect of any monies due to the bank.

11.	Provisions for liabilities

2022

2021

£

£

Deferred tax

9,235

9,555

Deferred

tax

£

Balance at 1 April 2021

9,555

Credit to Statement of Income and Retained Earnings during year

(320

)

Balance at 31 March 2022

9,235

12.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

3

Ordinary

£1

3

3

13.	Directors' advances, credits and guarantees

The following advances and credits to directors subsisted during the years ended 31 March 2022 and 31 March 2021:

2022

2021

£

£

Mr K P Sohal

Balance outstanding at start of year

-

-

Amounts advanced

57,707

36,966

Amounts repaid

-

(36,966

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

57,707

-

Mrs H K Sohal

Balance outstanding at start of year

-

(73,862

)

Amounts advanced

22,434

73,862

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

22,434

-

Mr K I S Sohal

Balance outstanding at start of year

-

(27,690

)

Amounts advanced

58,939

27,690

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

58,939

-

14.	Related party disclosures

The company has provided security to the bankers of the below companies under common control

Milton Lodge Limited

Chalkney House Limited

Sohal Healthcare Limited

Hazeldell Limited

JK Healthcare Limited

The bankers are Barclays Bank PLC, and security has been provided by way of a negative pledge. This security is provided in respect of any monies due to the bank.

Milton Lodge Limited

A company under common control.

2022

2021

£

£

Amount due from related party at the balance sheet date

206,957

206,957

The loan is interest free and is repayable in 53 weeks.

Hazeldell Ltd

A company under common control.

2022

2021

£

£

Amount due from related party at the balance sheet date

452,080

452,080

The loan is interest free and is repayable in 53 weeks.

Brook House Health Ltd

A company under common control.

2022

2021

£

£

Amount due from related party at the balance sheet date

126,833

23,833

The loan is interest free and is repayable in 53 weeks.

JK Healthcare Ltd

A company under common control.

2022

2021

£

£

Amount due from related party at the balance sheet date

44,539

44,539

The loan is interest free and is repayable in 53 weeks.

Sohal Healthcare Limited

A company under common control.

2022

2021

£

£

Amount due to related party at the balance sheet date

171,605

171,905

The loan is interest free and is repayable in 53 weeks.

Oak Health UK Ltd

Mrs Sohal is a 50% shareholder of the company.

2022

2021

£

£

Amount due from related party at the balance sheet date

159,953

159,953

The loan is interest free and is repayable in 53 weeks.

Maple Healthcare Limited

A company under common control.

2022

2021

£

£

Amount due from related party at the balance sheet date

41,743

41,743

The loan is interest free and is repayable in 53 weeks.

The Willows Ipswich Limited

A company under common control.

2022

2021

£

£

Amount due to related party at the balance sheet date

450

450

The loan is interest free and is repayable in 53 weeks.

JKS Developments Ltd

A company under common control.

2022

2021

£

£

Amount due from related party at the balance sheet date

487,000

-

The loan is interest free and is repayable in 53 weeks.

15.	Government grant

The company had received a grant from Social Care Institute for Excellence. The grant of £2,579 has now been utilised and net off against any qualifying expenditure.