Abbey Healthcare (Westmoreland) Limited Company accounts
Abbey Healthcare (Westmoreland) Limited Company accounts
COMPANY REGISTRATION NUMBER:
07883470
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For the year ended |
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Financial Statements |
Year ended 31 December 2022
Contents |
Page |
Officers and professional advisers |
1 |
Strategic report |
2 |
Directors' report |
4 |
Independent auditor's report to the members |
6 |
Statement of income and retained earnings |
10 |
Statement of financial position |
11 |
Statement of cash flows |
12 |
Notes to the financial statements |
13 |
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Officers and Professional Advisers |
The board of directors |
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Registered office |
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Auditor |
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Chartered accountants & statutory auditor |
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Enterprise House |
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38 Tyndall Court |
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Commerce Road |
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Lynch Wood |
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Peterborough |
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Cambridgeshire |
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PE2 6LR |
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Strategic Report |
Year ended 31 December 2022
The directors present the strategic report and the financial statements for the year ended 31 December 2022. Business review
Abbey Healthcare (Westmoreland) Limited
operates an 120 bed care home regulated by the Care Quality Commission and was rated as Good throughout the year. Revenue increased in the year from £5,053,000 to £5,570,000 and occupancy rates went from 80% to 86%. The average weekly fee per resident has increased from £1,002 to £1,027. As part of the UK government's response to the pandemic, the company received grants totalling £138,000 (2021 - £251,000) to cover the additional costs incurred in relation to PPE and increased staff costs. This translated into a decrease in profit before tax of £1,038,000 (2021 - £1,265,000). Principal risks and uncertainties Management monitors risks on a weekly and monthly basis. The primary concern of the management is the quality of care. There are dedicated regional managers and Operational Directors responsible for supporting the Home in provision of high quality care services. The major financial risk to the company is the increase in its cost base, primarily relating to the National Living Wage. The Company is exposed to credit risk with its customers, albeit major customers are public sector, and therefore with limited credit risk. Pricing risk is limited to the risk associated with negotiating annual price increases. Liquidity and cashflow risk could arise in the event of a downturn in trading. However, in this event, sister companies in the group can provide liquidity if required. The company is exposed to finance risk due to its exposure to third party lenders and borrowings in the Company. Staffing remains a key risk as there is a nationwide shortage of nurses and care staff. Cost inflation also remains a risk for the business. Financial and other key performance indicators The key financial and operational performance indicators monitored by management include regulatory reviews, internal quality reviews, occupancy ratios, average weekly fees and cost to revenue ratios. During 2022 the pandemic continued, and restrictions affected the care home industry in particular. This had a significant impact on the market and the company. Occupancy was impacted and costs increased through increased PPE and sickness costs, as well as the investments we made to make our homes more resilient to future waves of the virus. We received support from government in terms of grants and other additional funding which helped offset the negative financial impact of the virus.
This report was approved by the board of directors on 18 December 2023 and signed on behalf of the board by:
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Director |
Registered office: |
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Directors' Report |
Year ended 31 December 2022
The directors present their report and the financial statements of the company for the year ended
31 December 2022
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Directors
The directors who served the company during the year were as follows:
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Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
Directors' responsibilities statement
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
18 December 2023
and signed on behalf of the board by:
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Director |
Registered office: |
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Independent Auditor's Report to the Members of
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Year ended 31 December 2022
Opinion
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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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
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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
Responsibilities of directors
Auditor's responsibilities for the audit of the financial statements
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.
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(Senior Statutory Auditor) |
For and on behalf of |
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Chartered accountants & statutory auditor |
Enterprise House |
38 Tyndall Court |
Commerce Road |
Lynch Wood |
Peterborough |
Cambridgeshire |
PE2 6LR |
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Statement of Income and Retained Earnings |
Year ended 31 December 2022
2022 |
2021 |
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Note |
£ |
£ |
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Turnover |
4 |
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Cost of sales |
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Gross profit |
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Administrative expenses |
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Other operating income |
5 |
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Operating profit |
6 |
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Other interest receivable and similar income |
10 |
– |
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Interest payable and similar expenses |
11 |
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Profit before taxation |
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Tax on profit |
12 |
– |
– |
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Profit for the financial year and total comprehensive income |
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Retained earnings at the start of the year |
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Retained earnings at the end of the year |
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All the activities of the company are from continuing operations.
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Statement of Financial Position |
2022 |
2021 |
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Note |
£ |
£ |
Fixed assets
Tangible assets |
13 |
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Current assets
Debtors |
14 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year |
15 |
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Net current assets |
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Total assets less current liabilities |
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Net assets |
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Capital and reserves
Called up share capital |
17 |
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Profit and loss account |
18 |
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Shareholders funds |
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These financial statements were approved by the
board of directors
and authorised for issue on
18 December 2023
, and are signed on behalf of the board by:
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Director |
Company registration number:
07883470
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Statement of Cash Flows |
Year ended 31 December 2022
2022 |
2021 |
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£ |
£ |
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Cash flows from operating activities
Profit for the financial year |
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Adjustments for: |
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Depreciation of tangible assets |
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Government grant income |
(
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(
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Other interest receivable and similar income |
– |
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Interest payable and similar expenses |
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Accrued expenses/(income) |
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(
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Changes in: |
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Trade and other debtors |
(
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(
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Trade and other creditors |
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Cash generated from operations |
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Interest paid |
(
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(
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Interest received |
– |
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--------- |
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Net cash from operating activities |
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--------- |
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Cash flows from investing activities
Purchase of tangible assets |
(
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(
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--------- |
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Net cash used in investing activities |
(
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(
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Cash flows from financing activities
Proceeds from loans from group undertakings |
(
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(
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Government grant income |
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--------- |
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Net cash used in financing activities |
(
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(
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Net increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of year |
654,237 |
335,149 |
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Cash and cash equivalents at end of year |
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Notes to the Financial Statements |
Year ended 31 December 2022
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Abbey Healthcare, Sutherland House, 70 - 78 West Hendon Broadway, London, NW9 7BT.
2.
Statement of compliance
3.
Accounting policies
Basis of preparation
Going concern
Judgements 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. 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. In preparing these financial statements, the directors have made the following judgements:- 1 Determine whether there are indicators of impairment of the tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. Other key sources of estimation uncertainty:- 2 Tangible fixed assets Tangible fixed assets, other than investment properties, 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. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Revenue recognition
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings |
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Finance leases and hire purchase contracts
Government grants
Financial instruments
The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
4.
Turnover
Turnover arises from:
2022 |
2021 |
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£ |
£ |
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Rendering of services |
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The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Other operating income
2022 |
2021 |
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£ |
£ |
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Government grant income |
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Other operating income |
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6.
Operating profit
Operating profit or loss is stated after charging:
2022 |
2021 |
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£ |
£ |
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Depreciation of tangible assets |
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7.
Auditor's remuneration
2022 |
2021 |
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£ |
£ |
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Fees payable for the audit of the financial statements |
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------- |
------- |
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8.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2022 |
2021 |
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No. |
No. |
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Production staff |
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The aggregate payroll costs incurred during the year, relating to the above, were:
2022 |
2021 |
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£ |
£ |
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Wages and salaries |
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Social security costs |
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9.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2022 |
2021 |
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£ |
£ |
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Remuneration |
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-------- |
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10.
Other interest receivable and similar income
2022 |
2021 |
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£ |
£ |
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Interest from group undertakings |
– |
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------- |
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11.
Interest payable and similar expenses
2022 |
2021 |
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£ |
£ |
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Interest on obligations under finance leases and hire purchase contracts |
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Interest due to group undertakings |
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12.
Tax on profit
Reconciliation of tax income
The tax assessed on the profit on ordinary activities for the year is lower than (2021: lower than) the
standard rate of corporation tax in the UK
of
19
% (2021:
19
%).
2022 |
2021 |
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£ |
£ |
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Profit on ordinary activities before taxation |
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Profit on ordinary activities by rate of tax |
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Utilisation of tax losses |
(
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(
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Tax on profit |
– |
– |
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13.
Tangible assets
Fixtures and fittings |
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£ |
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Cost |
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At 1 January 2022 |
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Additions |
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Disposals |
(
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--------- |
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At 31 December 2022 |
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Depreciation |
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At 1 January 2022 |
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Charge for the year |
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Disposals |
(
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--------- |
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At 31 December 2022 |
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--------- |
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Carrying amount |
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At 31 December 2022 |
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--------- |
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At 31 December 2021 |
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14.
Debtors
2022 |
2021 |
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£ |
£ |
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Trade debtors |
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Amounts owed by group undertakings |
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Prepayments and accrued income |
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15.
Creditors:
amounts falling due within one year
2022 |
2021 |
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£ |
£ |
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Trade creditors |
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Amounts owed to group undertakings |
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Accruals and deferred income |
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Social security and other taxes |
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Other creditors |
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16.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
2022 |
2021 |
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£ |
£ |
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Recognised in other operating income:
Government grants recognised directly in income |
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17.
Called up share capital
Issued, called up and fully paid
2022 |
2021 |
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No. |
£ |
No. |
£ |
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1 |
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1 |
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18.
Reserves
19.
Analysis of changes in net debt
At 1 Jan 2022 |
Cash flows |
At 31 Dec 2022 |
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£ |
£ |
£ |
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Cash at bank and in hand |
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453,032 |
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Debt due within one year |
(9,915,965) |
274,958 |
(9,641,007) |
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(
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(
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20.
Contingencies
The company has provided a cross guarantee for loans in a related company.
21.
Related party transactions
The company paid key management remuneration totalling £33,944 (2021 - £38,702). The company has taken exemption under FRS102 from disclosing transactions with wholly owned members of the same group.
22.
Controlling party
The company was under the control of the Trustees of the Prabhdyal Sodhi Overseas Settlement throughout the year, an entity based in Gibraltar. The immediate parent company is Lansbury Limited, a company incorporated in Gibraltar.