ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

HARTFORD CARE LIMITED - Company Information

Caseware UK (AP4) 2022.0.179 2022.0.179 2023-03-312023-03-31truetruetrue2022-04-01false5461truefalse 04816268 2022-04-01 2023-03-31 04816268 2021-04-01 2022-03-31 04816268 2023-03-31 04816268 2022-03-31 04816268 2021-04-01 04816268 c:Exceptional 2022-04-01 2023-03-31 04816268 c:Exceptional 2021-04-01 2022-03-31 04816268 d:Director1 2022-04-01 2023-03-31 04816268 d:Director1 2023-03-31 04816268 d:Director2 2022-04-01 2023-03-31 04816268 d:Director2 2023-03-31 04816268 d:Director7 2022-04-01 2023-03-31 04816268 d:Director8 2022-04-01 2023-03-31 04816268 d:Director8 2023-03-31 04816268 d:Director9 2022-04-01 2023-03-31 04816268 d:Director9 2023-03-31 04816268 d:Director10 2022-04-01 2023-03-31 04816268 d:Director10 2023-03-31 04816268 d:Director11 2022-04-01 2023-03-31 04816268 d:Director11 2023-03-31 04816268 d:RegisteredOffice 2022-04-01 2023-03-31 04816268 c:Buildings 2022-04-01 2023-03-31 04816268 c:Buildings 2023-03-31 04816268 c:Buildings 2022-03-31 04816268 c:Buildings c:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 04816268 c:Buildings c:LongLeaseholdAssets 2022-04-01 2023-03-31 04816268 c:Buildings c:ShortLeaseholdAssets 2022-04-01 2023-03-31 04816268 c:Buildings c:ShortLeaseholdAssets 2023-03-31 04816268 c:Buildings c:ShortLeaseholdAssets 2022-03-31 04816268 c:FurnitureFittings 2022-04-01 2023-03-31 04816268 c:FurnitureFittings 2023-03-31 04816268 c:FurnitureFittings 2022-03-31 04816268 c:FurnitureFittings c:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 04816268 c:ComputerEquipment 2022-04-01 2023-03-31 04816268 c:ComputerEquipment 2023-03-31 04816268 c:ComputerEquipment 2022-03-31 04816268 c:ComputerEquipment c:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 04816268 c:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 04816268 c:CurrentFinancialInstruments 2023-03-31 04816268 c:CurrentFinancialInstruments 2022-03-31 04816268 c:Non-currentFinancialInstruments 2023-03-31 04816268 c:Non-currentFinancialInstruments 2022-03-31 04816268 c:CurrentFinancialInstruments c:WithinOneYear 2023-03-31 04816268 c:CurrentFinancialInstruments c:WithinOneYear 2022-03-31 04816268 c:Non-currentFinancialInstruments c:AfterOneYear 2023-03-31 04816268 c:Non-currentFinancialInstruments c:AfterOneYear 2022-03-31 04816268 c:ReportableOperatingSegment1 2022-04-01 2023-03-31 04816268 c:ReportableOperatingSegment1 2021-04-01 2022-03-31 04816268 c:UKTax 2022-04-01 2023-03-31 04816268 c:UKTax 2021-04-01 2022-03-31 04816268 c:ShareCapital 2023-03-31 04816268 c:ShareCapital 2022-03-31 04816268 c:ShareCapital 2021-04-01 04816268 c:RevaluationReserve 2022-04-01 2023-03-31 04816268 c:RevaluationReserve 2023-03-31 04816268 c:RevaluationReserve 2022-03-31 04816268 c:RevaluationReserve 2021-04-01 04816268 c:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 04816268 c:RetainedEarningsAccumulatedLosses 2023-03-31 04816268 c:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 04816268 c:RetainedEarningsAccumulatedLosses 2022-03-31 04816268 c:RetainedEarningsAccumulatedLosses 2021-04-01 04816268 d:OrdinaryShareClass1 2022-04-01 2023-03-31 04816268 d:OrdinaryShareClass1 2023-03-31 04816268 d:OrdinaryShareClass1 2022-03-31 04816268 d:FRS102 2022-04-01 2023-03-31 04816268 d:Audited 2022-04-01 2023-03-31 04816268 d:FullAccounts 2022-04-01 2023-03-31 04816268 d:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 04816268 c:Subsidiary1 2022-04-01 2023-03-31 04816268 c:Subsidiary1 1 2022-04-01 2023-03-31 04816268 c:Subsidiary2 2022-04-01 2023-03-31 04816268 c:Subsidiary2 1 2022-04-01 2023-03-31 04816268 c:AcceleratedTaxDepreciationDeferredTax 2023-03-31 04816268 c:AcceleratedTaxDepreciationDeferredTax 2022-03-31 04816268 c:RetirementBenefitObligationsDeferredTax 2023-03-31 04816268 c:RetirementBenefitObligationsDeferredTax 2022-03-31 04816268 c:OtherDeferredTax 2023-03-31 04816268 c:OtherDeferredTax 2022-03-31 04816268 5 2022-04-01 2023-03-31 04816268 6 2022-04-01 2023-03-31 04816268 e:UnitedKingdom 2022-04-01 2023-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 04816268

HARTFORD CARE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

HARTFORD CARE LIMITED

COMPANY INFORMATION

Directors	J L Gavin (resigned 1 June 2022)
	S F Gavin (resigned 1 June 2022)
	A H Smith
	K A Shaw (appointed 1 June 2022)
	E M Jones (appointed 1 June 2022)
	V L Heenan (resigned 30 September 2022)
	N J Barnes (appointed 1 June 2022)


Registered number	04816268


Registered office	2nd Floor
	Clifton House
	Bunnian Place
	Basingstoke
	Hampshire
	RG21 7JE


Independent auditor	James Cowper Kreston Audit
	Chartered Accountants and Statutory Auditor
	Reading Bridge House
	George Street
	Reading
	Berkshire
	RG1 8LS

HARTFORD CARE LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditor's Report	5 - 7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 - 22

HARTFORD CARE LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Introduction

The following report sets out the strategic view and associated risks for Hartford Care Limited as at 31 March 2023.

Business review

Turnover for the year from the company’s two residential care homes of Tegfield House and Stokeleigh increased by 6% to £2,821,337 (2022: £2,667,204). Occupancy levels were on a par with the previous year and the average weekly fees increased.
Staff costs increased by 4% and represented 44.1% of turnover during the year (2022: 44.9%). The adjusted operating profit as a percentage of turnover was 36.8% (2022: 36.8%).
Principal risks and uncertainties
The following principal risks and uncertainties for the Company have been identified:
Regulatory environment
The Company’s activities are subject to a high level of regulation and inspection by the Care Quality Commission. The risk from the negative effects of any non-compliance is the impact which it may have on the Company’s reputation and profits. Under the CQC’s new inspection regime, they regularly review care homes using information from a variety of sources including physical inspections. The risks are mitigated by a strict management reporting regime that is part of a rigorous process of internal control over quality and compliance, along with evolving policies and practices that take into account changes in regulatory obligations.
Competition
Competition comes from the growing number of other care homes, including not-for-profit organisations, and domiciliary care providers. This is driven by the increasing size of the UK’s elderly population and demographics which indicate that demand will continue to increase in the longer term. The risk of competition is mitigated by a values-based approach and ensuring that our residents receive a high quality of care. An ongoing refurbishment programme is in place to ensure our care homes are maintained to a high standard.
Staffing
The recruitment and retention of suitably qualified care staff is fundamental to running a successful business in the care sector. As widely publicised by the media, the competition for staff has become very challenging. We are proud to be a Real Living Wage Employer with all staff receiving at least an independently set minimum hourly rate of pay, which is based on what people require to meet every day needs. In addition, we gave staff a £600 one-off bonus to support them over the winter following the surge in fuel prices. These are positive ways to thank our team and is also helping the Company recruit and retain staff in a very competitive market with a particularly high number of job vacancies.
In addition, a series of initiatives have been implemented to support recruitment and retention underpinned by high quality training and a value based culture. The Company also continues to invest in new technology to improve the lives of both residents and staff.
Financial risks
The principal financial risk faced by the Company is liquidity risk. However, the Company is trading profitably and maintains a positive cash balance. In addition, regular cash flow forecasts are prepared which take into account the predictable operational revenue and cost streams.

Page 1

HARTFORD CARE LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Financial risks

The principal financial risk faced by the company is liquidity risk. However, the company is trading profitably and maintains a positive cash balance. In addition, regular cash flow forecasts are prepared which take into account the predictable operational revenue and cost streams.

Financial key performance indicators

The key performance indicators for the company have been identified as follows:

2023 2022 Change
Turnover £2,821,337 £2,667,204 +5.8%
Occupancy 86.6% 86.5% +0.1%
Adjusted operating profit* £1,038,503 £982,495 +5.7%
Adjusted operating profit % of turnover* 36.8% 36.8%
Staff cost as % of turnover 44.1% 44.9%
* adjusted to exclude winter fuel bonus and other operating income. .

This report was approved by the board and signed on its behalf.

K A Shaw

Director

Date: 6 November 2023

Page 2

HARTFORD CARE LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Principal activity

The principal activity of the company during the year under review was that of operating residential care homes.

Results and dividends

The profit for the year, after taxation, amounted to £1,236,911 (2022 - £747,375).

Directors

The directors who served during the year were:

J L Gavin (resigned 1 June 2022)

S F Gavin (resigned 1 June 2022)

A H Smith

K A Shaw (appointed 1 June 2022)

E M Jones (appointed 1 June 2022)

V L Heenan (resigned 30 September 2022)

N J Barnes (appointed 1 June 2022)

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

HARTFORD CARE LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Future developments

These matters have been discussed in the Strategic report.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 6 November 2023 and signed on its behalf.

K A Shaw

Director

Page 4

HARTFORD CARE LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARTFORD CARE LIMITED

Opinion

We have audited the financial statements of Hartford Care Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 Company's affairs as at 31 March 2023 and of its 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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 other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Page 5

HARTFORD CARE LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARTFORD CARE LIMITED (CONTINUED)

Opinion 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the 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 Directors' Responsibilities Statement set out on page 3, 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 is 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 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 Company or to cease operations, or have no realistic alternative but to do so.

Page 6

HARTFORD CARE LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARTFORD CARE LIMITED (CONTINUED)

Auditor's 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 an Auditor's Report 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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fruad, were as follows:

∙Enquiry of management and those charged with governence around actual and potential litigation and claims;

∙Enquiry of management and those charged with governence to identify any material instances of non-compliance with laws and regulation;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicaple laws and regulations;

∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.

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 Auditor's Report.

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 an Auditor's Report 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.

Alexander Peal BSc (Hons) FCA DChA (Senior Statutory Auditor)

for and on behalf of

James Cowper Kreston Audit

Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS

7 November 2023

Page 7

HARTFORD CARE LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2023

	2023	2022
Note	£	£


Turnover	4	2,821,337	2,667,204
Cost of sales		(1,329,073)	(1,273,745)
Gross profit		1,492,264	1,393,459
Administrative expenses		(453,761)	(410,964)
Winter fuel bonus		(26,283)	-
Other operating income	5	-	76,537
Operating profit	6	1,012,220	1,059,032
Tax on profit	9	224,691	(311,657)
Profit for the financial year		1,236,911	747,375

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 11 to 22 form part of these financial statements.

Page 8

HARTFORD CARE LIMITED

REGISTERED NUMBER: 04816268

BALANCE SHEET

AS AT 31 MARCH 2023

		2023		2022
Note		£		£

Fixed assets
Tangible assets	10		7,331,446		7,200,245
Investments	11		112,930		112,930
			7,444,376		7,313,175
Current assets
Debtors: amounts falling due after more than one year	12	7,613,303		6,323,243
Debtors: amounts falling due within one year	12	199,691		146,617
Cash at bank and in hand	13	106,671		90,105
		7,919,665		6,559,965
Current liabilities	14	(459,760)		(420,066)
Net current assets			7,459,905		6,139,899
Total assets less current liabilities			14,904,281		13,453,074
Creditors: amounts falling due after more than one year	15		(7,640,284)		(7,242,569)
Provisions for liabilities
Deferred tax	16	(406,622)		(590,041)
Net assets			6,857,375		5,620,464

Capital and reserves
Called up share capital	17	100	100
Revaluation reserve	18	3,259,958	3,259,958
Profit and loss account	18	3,597,317	2,360,406
		6,857,375	5,620,464

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

K A Shaw

Director

Date: 6 November 2023

The notes on pages 11 to 22 form part of these financial statements.

Page 9

HARTFORD CARE LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2023

	Called up share capital	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 April 2022	100	3,259,958	2,360,406	5,620,464

Profit for the year	-	-	1,236,911	1,236,911
At 31 March 2023	100	3,259,958	3,597,317	6,857,375

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2022

	Called up share capital	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 April 2021	100	3,259,958	1,613,031	4,873,089

Profit for the year	-	-	747,375	747,375
At 31 March 2022	100	3,259,958	2,360,406	5,620,464

The notes on pages 11 to 22 form part of these financial statements.

Page 10

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1.	General information

Hartford Care Ltd is a company limited by share capital and incorporated (registered no. 04816268) in England and Wales. The address of the registered office is 2nd Floor, Clifton House, Bunnian Place, Basingstoke, Hampshire, RG21 7JE. The company operates from two places of business: 19 Stoke Hill, Stoke Bishop, Bristol, BS9 1JN and 24 Chilbolton Avenue, Winchester, Hampshire, SO22 5HD.
The principal activity of the company is operating residential care homes.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Hartford Care Group Limited as at 31 March 2023 and these financial statements may be obtained from the registrar of companies.

2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 11

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	held at valuation
Property improvements	-	5% - 10%
Fixtures and fittings	-	10% - 50%
Computer equipment	-	20% - 50%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 12

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.6

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.7

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.12

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

2.13

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Tangible fixed assets (see note 10)
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values.
Taxation (see note 9)
The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 9.

	United Kingdom	2,821,337	2,667,204

5.	Other operating income
		2023	2022
		£	£

	Other operating income	-	76,537

	Depreciation	58,311	37,974
	Defined contribution pension cost	16,056	18,757

Page 15

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements

6,737

6,515

Wages and salaries	1,156,758	1,108,118
Social security costs	71,362	69,373
Cost of defined contribution scheme	16,056	18,757
	1,244,176	1,196,248

The average monthly number of employees during the year was as follows:

	2023	2022
	No.	No.

Tegfield	24	26
Stokeleigh	30	35

	54	61

Page 16

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Corporation tax
Current tax on profits for the year	15,833	193,714
Adjustments in respect of previous periods	(57,105)	(32,227)

Total current tax	(41,272)	161,487

Deferred tax
Origination and reversal of timing differences	(33,701)	11,263
Adjustments in respect of previous periods	(149,718)	138,907
Total deferred tax	(183,419)	150,170


	Taxation on profit on ordinary activities	(224,691)	311,657

Profit on ordinary activities before tax

1,012,220

1,059,032

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)	192,322	201,216
Effects of:
Capital allowances for year in excess of depreciation	(1,467)	1,058
Capital gains	(53,819)	-
Adjustments to tax charge in respect of previous periods	(206,823)	(32,227)
Remeasurement of deferred tax for changes in tax rates	(8,089)	141,610
Group relief	(146,815)	-
Total tax charge for the year	(224,691)	311,657

Factors that may affect future tax charges

In the Spring Budget 2022, the Government announced that from 1 April 2023 the main corporation tax rate will increase to 25%. The impact of these changes is not expected to be material.

Page 17

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

10.	Tangible fixed assets

	Freehold property	Property improvements	Fixtures and fittings	Computer equipment	Total
	£	£	£	£	£
Cost or valuation
At 1 April 2022	6,852,500	370,064	577,476	57,071	7,857,111
Additions	-	111,691	64,040	13,781	189,512
At 31 March 2023	6,852,500	481,755	641,516	70,852	8,046,623
Depreciation
At 1 April 2022	-	92,245	513,215	51,406	656,866
Charge for the year on owned assets	-	6,879	43,293	8,139	58,311
At 31 March 2023	-	99,124	556,508	59,545	715,177
Net book value
At 31 March 2023	6,852,500	382,631	85,008	11,307	7,331,446
At 31 March 2022	6,852,500	277,819	64,261	5,665	7,200,245

Page 18

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

11.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 April 2022	112,930
	At 31 March 2023	112,930

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Principal activity	Class of shares	Holding

	Hartford Care (South West) Limited	Residential care homes	Ordinary	100%
	Hartford Care (Southern) Limited	Residential care homes	Ordinary	100%

12.	Debtors
		2023	2022
		£	£

Due after more than one year
Amounts owed by group undertakings	7,613,303	6,323,243

					2023	2022
					£	£

Due within one year
Trade debtors	94,546	81,985
Prepayments and accrued income	105,145	64,632
	199,691	146,617

The intercompany receivable is unsecured and fully subordinated to any charges or rights accrued in connection with the Group loan facility. The intercompany receivable is repayable on a rolling 367 day basis and accrues no interest.
The bank loan held by Hartford Care Group Limited is secured by an intercompany guarantee over the Group's assets.

Page 19

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

13.	Cash and cash equivalents
		2023	2022
		£	£

	Cash at bank and in hand	106,671	90,105

14.	Creditors: Amounts falling due within one year
		2023	2022
		£	£

Trade creditors	129,495	54,994
Corporation tax	124,717	165,989
Other taxation and social security	16,064	18,522
Other creditors	19,742	24,943
Accruals and deferred income	169,742	155,618
	459,760	420,066

15.	Creditors: Amounts falling due after more than one year
		2023	2022
		£	£

	Amounts owed to group undertakings	7,640,284	7,242,569

The intercompany payable is unsecured and fully subordinated to any charges or rights accrued in connection with the Group loan facility. The intercompany payable is repayable on a rolling 367 day basis and accrues no interest.
The bank loan held by Hartford Care Group Limited is secured by an intercompany guarantee over the Group's assets.

16.	Deferred taxation

	2023	2022
	£	£

At beginning of year	(590,041)	(439,871)
Credited to profit or loss	183,419	(150,170)
At end of year	(406,622)	(590,041)

Page 20

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

16.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:
	2023	2022
	£	£

Accelerated capital allowances	(34,616)	(147,207)
Short term differences	13	1
Capital gains	(372,019)	(442,835)
	(406,622)	(590,041)

17.	Share capital
		2023	2022
		£	£

Allotted, called up and fully paid

100 (2022 - 100) Ordinary shares of £1.00 each	100	100

18.

Reserves

Revaluation reserve

The revaluation reserve represents the cumulative revaluation of assets owned by the company.

Profit & loss account

The profit & loss account represents the cumulative profit available for distribution to shareholders.

19.	Contingent liabilities

Along with fellow subsidiaries, the Company is a guarantor in the Facilities Agreement, entered into by Hartford Care Group Limited with National Westminster Bank plc. Under this agreement the bank holds a charge over its assets.

20.	Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £16,056 (2022: £18,757). The total contributions payable to the fund at the balance sheet date were £148 (2022: £6).

21.	Related party transactions
	The company has taken advantage of the exemption available to it under FRS 102 not to disclose transactions with other group companies where all members are 100% owned by the group on the grounds that consolidate financial statements are prepared by the ultimate parent company. Balances due from and to members of the Group are disclosed in notes 12 and 15 respectively.

Page 21

HARTFORD CARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

22.	Controlling party

The immediate parent company is Hartford Care Group Limited, a company incorporated in England and Wales.
The ultimate parent Company and the smallest and largest group in which the Company’s results are consolidated is Hartford Care Group Limited, a Company incorporated in England and Wales. The consolidated accounts of Hartford Care Group Limited are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
There is no one ultimate controlling party.

Page 22