Willow Grange Care Limited - Period Ending 2022-12-31

Willow Grange Care Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 9

Willow Grange Care Limited

Company Information

Director

J G Payne

Registered office

Titleworth House Alexandra Place Guildford Surrey GU1 3QH

Accountants

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Willow Grange Care Limited

(Registration number: 10841560)
Balance Sheet as at 31 December 2022

	Note	2022  £	2021  £
Fixed assets
Tangible assets	5	1,905,952	1,958,582
Current assets
Debtors	6	227,969	200,645
Cash at bank and in hand		156,649	148,929
		384,618	349,574
Creditors: Amounts falling due within one year	7	(2,432,625)	(2,343,704)
Net current liabilities		(2,048,007)	(1,994,130)
Total assets less current liabilities		(142,055)	(35,548)
Deferred tax liabilities		7,649	(13,112)
Net liabilities		(134,406)	(48,660)
Capital and reserves
Called up share capital	9	120	120
Profit and loss account		(134,526)	(48,780)
Total equity		(134,406)	(48,660)

For the financial year ending 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 28 September 2023
 

J G Payne
Director

Willow Grange Care Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Titleworth House
Alexandra Place
Guildford
Surrey
GU1 3QH

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Willow Grange Care Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets is reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold buildings	1% straight line
Fixtures, fittings and equipment	10% straight line
Motor vehicles	25% straight line

There is no depreciation on land at net book value of £540,000 (2021 - £540,000).

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Willow Grange Care Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Willow Grange Care Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was as follows:

	2022  No.	2021  No.
Average number of employees	39	44

Willow Grange Care Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

4

Deferred tax

Deferred tax assets and liabilities

2022	Liability £
Differences between accumulated depreciation, amortisation and capital allowances	20,377
Tax losses carried forward	(27,743)
Long term timing differences	(283)
	(7,649)

2021	Liability £
Differences between accumulated depreciation, amortisation and capital allowances	25,630
Tax losses carried forward	(12,235)
Long term timing differences	(283)
	13,112

Willow Grange Care Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

5

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 January 2022	1,889,849	291,481	2,995	2,184,325
Additions	-	1,805	-	1,805
At 31 December 2022	1,889,849	293,286	2,995	2,186,130
Depreciation
At 1 January 2022	85,049	138,261	2,433	225,743
Charge for the year	22,600	31,273	562	54,435
At 31 December 2022	107,649	169,534	2,995	280,178
Carrying amount
At 31 December 2022	1,782,200	123,752	-	1,905,952
At 31 December 2021	1,804,800	153,220	562	1,958,582

There is no depreciation on land at cost of £540,000 (2021 - £540,000).

 

6

Debtors

	2022  £	2021  £
Trade debtors	43,838	16,261
Other debtors	1,806	874
Prepayments	182,325	183,510
	227,969	200,645

7

Creditors

	2022  £	2021  £
Due within one year
Loans and borrowings	2,024,761	-
Trade creditors	43,311	25,191
Amounts due to connected undertakings	220,065	2,190,792
Social security and other taxes	39,249	27,877
Other creditors	93,055	79,861
Accrued expenses	11,862	18,484
Deferred income	322	1,499
	2,432,625	2,343,704

During the year, a loan of £2,024,761 due to the former parent company Titleworth Holdings Limited was distributed to shareholders upon solvent liquidation of that company, thereby creating a shareholder loan of that amount.

Willow Grange Care Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

8

Loans and borrowings

	2022 £	2021 £
Current loans and borrowings
Other borrowings	2,024,761	-

9

Share capital

Allotted, called up and fully paid shares

	2022		2021
	No.	£	No.	£
Ordinary shares of £1 each	-	-	-	-
A Ordinary shares of £1 each	90	90	90	90
B Ordinary shares of £1 each	10	10	10	10
C Ordinary shares of £1 each	10	10	10	10
D Ordinary shares of £1 each	10	10	10	10
	120	120	120	120

During the year, 100 ordinary shares were redesignated as 90 A ordinary shares and 10 B ordinary shares. A further 10 C ordinary shares and 10 D ordinary shares were also issued at par.

The A and B ordinary shares have one vote per share, the C and D ordinary shares do not have any voting rights. The A and B shares do not include any dividend rights. On a return of of assets / capital reduction, the first £50,000 shall be paid to the A and B ordinary shareholders pro rata to their shareholdings, thereafter the balance will be shared between the C and D shareholders pro rata to their shareholdings.

10

Parent and ultimate parent undertaking

The ultimate controlling party is Julien Payne.