Cedar Care Homes Limited - Limited company accounts 23.1

REGISTERED NUMBER: 03585946 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 July 2022

for

Cedar Care Homes Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

7

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

19

DIRECTORS:

Mr M C Desai

Mr A M Desai

Mrs M A Desai

SECRETARY:

Mr A M Desai

REGISTERED OFFICE:

Mortimer House

Clifton Down Road

Bristol

BS8 4AE

REGISTERED NUMBER:

03585946 (England and Wales)

AUDITORS:

Wormald & Partners

Chartered Accountants (ICAEW)

Redland House

157 Redland Road

Redland

Bristol

BS6 6YE

The directors present their strategic report of the company and the group for the year ended 31 July 2022.

REVIEW OF BUSINESS

The principal activity of the group was that of owning and operating nursing homes.

The group owns and operates several care homes across Bath (Larkhall Springs, The Orangery, Winfield Lodge and Woodside,) and Bristol (Gracefields, Oakhill Mansions, Saville Manor, and Waltham House). Additionally in April 2022 the group opened Dearbourne Manor, in Southmead, Bristol. This was after a substantial refurbishment and extension of a vacant care home the group had acquired.

All the homes provide accommodation for adults over 65 years who require nursing or personal care, including in some cases, care for residents living dementia and mental disorder.

Profits have improved over last year, as underlying occupancy has recovered from the worst impacts of the COVID-19 pandemic. The overall average fees obtained throughout the year rose across the business. The fee uplift from local authorities continued to be lower than inflation and to mitigate this, the group continues to focus on improving the percentage of privately funded residents. The underlying health of the business is strong and the Directors expect the business to continue growing during 2023.

The group continues to invest in maintaining and improving the properties and fixtures and fittings of all the nursing homes to provide a comfortable, safe and happy environment for the residents. The directors regard this investment as being integral to the continuing success of the business and ensure the group provides its residents with a home which they can enjoy. The group places a strong importance on investing in the development and training of its staff to ensure that it meets all the statutory and regulatory requirements as well as providing a high level of service to their residents.

In June 2022, the group acquired Hill House care home in Malmesbury, Wiltshire as an operating business which falls naturally into the portfolio of care homes.

All the nursing homes are monitored by Care Quality Commission (CQC) and endeavour to meet all the standards as required by the CQC.

The group also has a development company in Cedar Care Developments Ltd, a subsidiary which builds and redevelops care homes for care home operators.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the group relate to the impact of potential increased competition, and the possible impact of future government legislation. The directors ensure they are up to date with legislation and monitor the impact on the group of new care homes opening in the local area. The main risks are:

1. Changes in agreements with local councils. A significant proportion of revenue is derived from public sources. Cuts in public spending will inhibit the group's ability to continue to provide services to disadvantaged adults.

2. Recruiting and retaining staff is becoming more and more challenging. The group is working to address this through reviewing pay and reward structures and recruiting from as many sources as possible, both in the UK and overseas.

3. The COVID-19 epidemic has led to higher operating costs as the group put in place controls to minimise the spread of infection and cover staff absences. In all existing nursing homes, outbreak had a temporary impact on the occupancy levels. Nonetheless the group's operating processes have largely proved resilient and underlying demand for the group's services remain strong.

There has been no indication that the local authorities and social services will change agreements considerably, thus these sources are not threatened and an ageing population supports an increased demand for the services provided by the group.

The group has a risk management process in place, which is designed to identify, manage and mitigate business risk. It also has a dedicated Human Resource Department, an Operations head who ensures the recommendations by Care Quality Commission are implemented and maintain the highest level of care provisions to residents at all times and the quality of care is underpinned by a robust and comprehensive operating manual to guide local managers and staff.

The Chief Operating Officer and Directors have been involved in the management of the care homes for many years and have built up a considerable body of expertise. They are supported by trained nurses who have considerable experience in looking after the residents and their needs at the nursing homes. The most fundamental risk faced by the group is poor delivery of care which could impact on compliance with the Statutory Regulator and reputation and subsequently impact on occupancy and profitability. The group recognises this and has invested heavily in both their management team, management processes and quality assurance team which underpins the group's activities.

SECTION 172(1) STATEMENT

The directors have complied with requirements of S172 of the Companies Act 2006. The duties are detailed in Section 172 of the Companies Act are summaries as follows:

A director of a company must act in the way they consider, in good faith would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to

- the likely consequences of any decisions in the long term,

- the interest of the group's employees,

- the need to foster the group's business relationships with suppliers, customers and other,

- the impact of the group operations on the community and environment,

- the desirability of the group maintaining a reputation for high standards of business conduct and

the need to act fairly as between members of the group.

FINANCIAL INSTRUMENTS

The group's principal financial instruments comprise bank balances, bank borrowings, trade creditors and trade debtors.

The main purpose of these instruments is to raise funds for and to finance the group's operations. In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and optimization of interest of funds placed in deposit accounts. In addition major capital investments such as acquisition and redevelopment of sites is usually funded by bank lending secured on the relevant properties, so as not to impinge on operational cashflow. The group manages the liquidity risk by ensuring there are sufficient funds to meet the payments. Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to make the payments as and when they fall due. Trade debtors and cash flow are managed through credit processes to monitor and pursue overdue receipts from local councils and private residents

DEVELOPMENT AND PERFORMANCE

The group profit on ordinary activities after taxation was £3,626,804 (2021: £2,028,089). Turnover for the year was £26,118,700 compared to £25,592,582 in the previous year.

The results for the year are set out on page 8.

The group's net current assets are £2,853,920 (2021:£1,483,164) and total shareholders funds were £28,843,034 (2021:£25,216,230) respectively as at the balance sheet date.

The company has not declared dividends during the year (2021: £Nil).

Key performance indicators

Key Performance Indicators ('KPI') of the business are earnings before interest and tax, return on capital employed, average occupancy of care homes, customer satisfaction and CQC compliance.

Turnover for the year was £26,118,700 compared to £25,592,582 in the previous year.

Earnings before interest and tax was £ 4,557,899 compared to £3,332,889 in the previous year.

The Return on capital employed for the year was 8.7% compared to 7.42% in the previous year.

Average room occupancy for the year was 90% compared to 90% in the previous year.

EMPLOYEE PRACTICES,COMMUNITY AND ENVIRONMENT

The group is a responsible business and therefore the group provides continuous staff training and development opportunities

The group always ensures staff operate as efficiently as possible.

Community and Environment

The group supports positive change for people and communities with staff and management interactions.

RISK MANAGEMENT AND BUSINESS RELATIONSHIPS

The business is growing in terms of turnover and assets acquisition therefore risk management becomes more complex. It is vital for management to identify, evaluate and mitigate the risk.

The group had a challenging year with continued uncertainty of Brexit and Covid 19 environment to manage business relations with various authorities. The group and management are developing and maintaining strong relationships with customers, suppliers and others.

ENVIRONMENTAL MATTERS - ENERGY AND CARBON REPORTING

Our energy efficiency actions have continued through the year with the following measure:

a) Continuous monitoring and control of use of heating and power in our care homes.

b) Minimise unnecessary transport movements through scheduling of staff.

c) Investing in green energy initiatives at new sites (solar, pellet burners, CHP Plants).

d) Replace fleet vehicles with more efficient vehicles as appropriate.

Year to 31 July 2022 UK energy use (kWh) 6.8m (2021 5.4m).

Year to 31 July 2022 Greenhouse Gas emission (Tonnes Co2) 1,309 (2021 1,053).

Year to 31 July 2022 Intensity Ratio per employee (tonnes/head) 2.90 (2021 2.30)

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2022 UK Government's Conversion Factors for Company Reporting.

ON BEHALF OF THE BOARD:

Mr A M Desai - Secretary

27 April 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 July 2022.

DIVIDENDS

No dividends will be distributed for the year ended 31 July 2022.

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1 August 2021 to the date of this report.

The beneficial interests of the directors holding office at 31 July 2022 in the shares of the company, according to the register of directors' interests, were as follows:

31.7.22

1.8.21

Ordinary shares of £1 each

Mr M C Desai

10,000

10,000

Mr A M Desai

20,000

10,000

Mrs M A Desai

-

-

These directors did not hold any non-beneficial interests in the shares of the company.

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, Wormald & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr A M Desai - Director

27 April 2023

Opinion

We have audited the financial statements of Cedar Care Homes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2022 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 July 2022 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 six, 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:

Identifying and assessing potential risks related to irregularities - In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

a) The nature of the entity's industry and sector, control environment, business performance and management incentives;

b) The results of our specific enquiries of management and those charged with governance about their

own identification and assessment of the risks of irregularities;

c) Any matters we identified having obtained and reviewed the group's documentation of their policies and procedures, relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

d) The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following area(s): the recognition of revenue. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls.

We also obtained an understanding of the legal and regulatory frameworks in which the company operates, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified - Our procedures to respond to risks identified included the following:

a) Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

b) Enquiring of management concerning actual and potential litigation and claims;

c) Performing analytical procedures to identify and unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

d) Reading minutes of meetings of those charged with governance; and

e) In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Whilst procedures above describe the extent to which our procedures are capable of detecting irregularities, including fraud, there are inherent limitations in these audit procedures. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, misrepresentation or through collusion. We are not responsible for preventing irregularities, including fraud, or non-compliance with laws and regulations and cannot be expected to detect all irregularities or non-compliance with all laws and regulations.

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.

Neil Dando FCA (Senior Statutory Auditor)

for and on behalf of Wormald & Partners

Chartered Accountants (ICAEW)

Redland House

157 Redland Road

Redland

Bristol

BS6 6YE

27 April 2023

TURNOVER

26,118,700

25,592,582

Cost of sales

18,375,802

18,170,236

GROSS PROFIT

7,742,898

7,422,346

Administrative expenses

3,537,817

4,399,839

4,205,081

3,022,507

Other operating income

348,942

307,178

OPERATING PROFIT

4

4,554,023

3,329,685

Interest receivable and similar income

3,876

3,204

4,557,899

3,332,889

Interest payable and similar expenses

5

540,872

442,605

PROFIT BEFORE TAXATION

4,017,027

2,890,284

Tax on profit

6

390,223

862,195

PROFIT FOR THE FINANCIAL YEAR

3,626,804

2,028,089

Profit attributable to:

Owners of the parent

3,626,804

2,028,089

PROFIT FOR THE YEAR

3,626,804

2,028,089

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,626,804

2,028,089

Total comprehensive income attributable to:

Owners of the parent

3,626,804

2,028,089

FIXED ASSETS

Intangible assets

8

16,667

36,667

Tangible assets

9

49,720,287

43,573,035

Investments

10

-

-

49,736,954

43,609,702

CURRENT ASSETS

Stocks

11

51,853

62,244

Debtors

12

3,117,707

2,531,775

Cash at bank and in hand

3,378,096

3,443,082

6,547,656

6,037,101

CREDITORS

Amounts falling due within one year

13

3,693,736

4,553,937

NET CURRENT ASSETS

2,853,920

1,483,164

TOTAL ASSETS LESS CURRENT LIABILITIES

52,590,874

45,092,866

CREDITORS

Amounts falling due after more than one year

14

23,717,840

19,846,636

NET ASSETS

28,873,034

25,246,230

CAPITAL AND RESERVES

Called up share capital

18

30,000

30,000

Retained earnings

19

28,843,034

25,216,230

SHAREHOLDERS' FUNDS

28,873,034

25,246,230

The financial statements were approved by the Board of Directors and authorised for issue on 27 April 2023 and were signed on its behalf by:

Mr A M Desai - Director

Mrs M A Desai - Director

FIXED ASSETS

Intangible assets

8

16,667

36,667

Tangible assets

9

49,710,221

43,543,611

Investments

10

1,000

1,000

49,727,888

43,581,278

CURRENT ASSETS

Stocks

11

37,555

29,697

Debtors

12

2,578,744

2,033,215

Cash at bank and in hand

3,154,278

3,035,093

5,770,577

5,098,005

CREDITORS

Amounts falling due within one year

13

3,078,238

3,701,069

NET CURRENT ASSETS

2,692,339

1,396,936

TOTAL ASSETS LESS CURRENT LIABILITIES

52,420,227

44,978,214

CREDITORS

Amounts falling due after more than one year

14

23,717,840

19,846,636

NET ASSETS

28,702,387

25,131,578

CAPITAL AND RESERVES

Called up share capital

18

30,000

30,000

Retained earnings

19

28,672,387

25,101,578

SHAREHOLDERS' FUNDS

28,702,387

25,131,578

Company's profit for the financial year

3,570,809

1,978,600

The financial statements were approved by the Board of Directors and authorised for issue on 27 April 2023 and were signed on its behalf by:

Mr A M Desai - Director

Mrs M A Desai - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2020

30,000

23,188,141

23,218,141

Changes in equity

Total comprehensive income

-

2,028,089

2,028,089

Balance at 31 July 2021

30,000

25,216,230

25,246,230

Changes in equity

Total comprehensive income

-

3,626,804

3,626,804

Balance at 31 July 2022

30,000

28,843,034

28,873,034

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2020

30,000

23,122,978

23,152,978

Changes in equity

Total comprehensive income

-

1,978,600

1,978,600

Balance at 31 July 2021

30,000

25,101,578

25,131,578

Changes in equity

Total comprehensive income

-

3,570,809

3,570,809

Balance at 31 July 2022

30,000

28,672,387

28,702,387

Cash flows from operating activities

Cash generated from operations

1

4,435,755

5,415,534

Interest paid

(540,872

)

(442,472

)

Interest element of hire purchase or finance lease rental payments paid

-

(133

)

Tax paid

(858,188

)

(495,296

)

Net cash from operating activities

3,036,695

4,477,633

Cash flows from investing activities

Purchase of tangible fixed assets

(6,909,682

)

(3,628,222

)

Sale of tangible fixed assets

4,548

3,538

Interest received

3,876

3,204

Net cash from investing activities

(6,901,258

)

(3,621,480

)

Cash flows from financing activities

New loans in year

4,989,849

1,636,016

Loan repayments in year

(1,190,357

)

(3,399,082

)

Capital repayments in year

-

(4,885

)

Amount introduced by directors

85

-

Net cash from financing activities

3,799,577

(1,767,951

)

Decrease in cash and cash equivalents

(64,986

)

(911,798

)

Cash and cash equivalents at beginning of year

2

3,443,082

4,354,880

Cash and cash equivalents at end of year

2

3,378,096

3,443,082

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

2022

2021

£

£

Profit before taxation

4,017,027

2,890,284

Depreciation charges

780,166

721,976

(Profit)/loss on disposal of fixed assets

(2,283

)

22,092

Impairment losses

-

1,201,901

Finance costs

540,872

442,605

Finance income

(3,876

)

(3,204

)

5,331,906

5,275,654

Decrease in stocks

10,391

165,748

Increase in trade and other debtors

(520,225

)

(979,135

)

(Decrease)/increase in trade and other creditors

(386,317

)

953,267

Cash generated from operations

4,435,755

5,415,534

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 July 2022

31.7.22

1.8.21

£

£

Cash and cash equivalents

3,378,096

3,443,082

Year ended 31 July 2021

31.7.21

1.8.20

£

£

Cash and cash equivalents

3,443,082

4,354,880

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.8.21

Cash flow

At 31.7.22

£

£

£

Net cash

Cash at bank and in hand

3,443,082

(64,986

)

3,378,096

3,443,082

(64,986

)

3,378,096

Debt

Debts falling due within 1 year

(1,262,067

)

71,711

(1,190,356

)

Debts falling due after 1 year

(19,846,636

)

(3,871,204

)

(23,717,840

)

(21,108,703

)

(3,799,493

)

(24,908,196

)

Total

(17,665,621

)

(3,864,479

)

(21,530,100

)