Florence House (Staffordshire) Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 07841218 (England and Wales)

Financial Statements

for the Year Ended 29 April 2022

for

Florence House (Staffordshire) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

S Klonin

W Morris

P Morris

W Morris Jnr

REGISTERED OFFICE:

C/o Agnes And Arthur Limited

Moorland View

Bradeley

Stoke-On-Trent

Staffordshire

ST6 7NG

REGISTERED NUMBER:

07841218 (England and Wales)

SENIOR STATUTORY AUDITOR:

Jeffrey Bor

AUDITORS:

SCB (Accountants) Limited

29-31 Sackville street

Manchester

M1 3LZ

BANKERS:

HSBC (Midland)

130 New Street

Birmingham

West Midlands

B2 4JU

FIXED ASSETS

Tangible assets

5

69,353

51,821

CURRENT ASSETS

Debtors

6

12,546

481,954

Cash at bank and in hand

241,966

160,495

254,512

642,449

CREDITORS

Amounts falling due within one year

7

(222,616

)

(127,045

)

NET CURRENT ASSETS

31,896

515,404

TOTAL ASSETS LESS CURRENT LIABILITIES

101,249

567,225

CREDITORS

Amounts falling due after more than one year

8

(32,685

)

(42,500

)

PROVISIONS FOR LIABILITIES

(5,222

)

(1,393

)

NET ASSETS

63,342

523,332

CAPITAL AND RESERVES

Called up share capital

9

100

100

Retained earnings

63,242

523,232

SHAREHOLDERS' FUNDS

63,342

523,332

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 13 July 2023 and were signed on its behalf by:

W Morris - Director

1.	STATUTORY INFORMATION

Florence House (Staffordshire) 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 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.

TURNOVER

Turnover is measured at the fair value of consideration received or receivable excluding discounts, rebates for the services provided in the normal course of business. Expenses include VAT wherever applicable as company cannot reclaim it.

TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less residual values over the useful life on the following basis:

Fixtures and fittings 10% on reducing balance.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

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 balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

EQUITY INSTRUMENTS

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset , with the net amounts presented in the financial statements ,when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

BASIC FINANCIAL ASSETS

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

CLASSIFICATION OF FINANCIAL LIABILITIES

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

BASIC FINANCIAL LIABILITIES

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from when the financial statements are authorised for issue.Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Since this year end the directors are aware of increased occupancy levels and increased average fee rates which gives the directors confidence that the company has sufficient resources to continue trading profitably.

The going concern basis assumes that the company will continue to receive the support of its parent company,fellow subsidiaries, and the Group bankers.

The care home premises are owned by the parent company, Resimed Limited. The parent company is funded by bank lending of £3.02m at the year-end. Following the sale of two of the care homes during the year-end , the group bank lending had reduced to £3.02m. From May 2022, the directors of Resimed Limited, have agreed with their lenders to begin to repay capital and interest on the lending.

The parent company also has material HMRC liabilities of £687,262 which are provisional and have been appealed against and not yet agreed with HMRC. The repayment period of these liabilities are unknown together with any final agreed liabilities which creates material uncertainty that may cast significant doubt on the parent company's ability to continue as a going concern. If the parent company were to cease, this company would be unable to trade and, as such, a material uncertainty relating to going concern exists within the company.

The Directors having considered the assessment with the HMRC and are in the view that the HMRC has

duplicated the assessment.

PROVISION

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

EMPLOYEE BENEFITS

The company provides a range of benefits to employees. Short term benefits, including holiday pay, are recognised as an expense in the profit and loss account in the period in which they are incurred. The company operates a defined contribution plan for its employees. Amounts in respect of defined contribution plans are recognised as an expense in the profit and loss account when they are due.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as described below.

As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual lives are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidence by disposals during current and prior accounting periods.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 42 (2021 - 44 ) .

4.	AUDITORS' REMUNERATION

2022

2021

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

4,200

-

Auditors remuneration of previous year has been paid by the parent company, Resimed Limited.

5.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 30 April 2021

80,925

Additions

25,297

At 29 April 2022

106,222

DEPRECIATION

At 30 April 2021

29,104

Charge for year

7,765

At 29 April 2022

36,869

NET BOOK VALUE

At 29 April 2022

69,353

At 29 April 2021

51,821

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

10,108

8,447

Amounts owed by group undertakings

115

458,947

Other debtors

-

1,063

Prepayments and accrued income

2,323

13,497

12,546

481,954

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of payment and are repayable on demand.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

10,648

7,500

Trade creditors

56,299

35,249

Amounts owed to group undertakings

3,030

1,004

Social security and other tax

39,362

12,901

Other creditors

38,009

33,515

Accruals and deferred income

75,268

36,876

222,616

127,045

Composite Guarantee in favour of HSBC Bank PLC dated 28 June 2016 between the following companies; Resimed Limited, Florence House (Staffordshire) Limited, Agnes and Arthur Limited and The Place Up Hanley Limited.

Unscheduled Mortgage Debenture dated 18 May 2015 in favour of HSBC Bank PLC incorporating a Fixed and Floating Charge over all the current and future assets of the company.

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of payment and are payable on demand.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans - 1-2 years

10,648

10,000

Bank loans - 2-5 years

22,037

32,500

32,685

42,500

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

100

Ordinary

1

100

100

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Jeffrey Bor (Senior Statutory Auditor)

for and on behalf of SCB (Accountants) Limited

However, the audit report contains the following:

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 statement is appropriate.

We have reviewed the company's current position and note increase in occupancy level and average room rate.

We draw attention to Going Concern as per note 2 accounting policies which indicates events or conditions that indicate a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

11.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

12.	ULTIMATE CONTROLLING PARTY

The company regards Resimed Limited, a company registered in England and Wales, as its ultimate parent undertaking. The consolidated financial statements can be obtained from Companies House.