Coate Water Care Company (Church View Nursing Home) Limited - Period Ending 2023-03-31

Coate Water Care Company (Church View Nursing Home) Limited - Period Ending 2023-03-31


Coate Water Care Company (Church View Nursing Home) Limited 04952292 false 2022-04-01 2023-03-31 2023-03-31 The principal activity of the company is the operation of nursing homes. Digita Accounts Production Advanced 6.30.9574.0 true true true true 04952292 2022-04-01 2023-03-31 04952292 2023-03-31 04952292 bus:OrdinaryShareClass1 2023-03-31 04952292 bus:Consolidated 2023-03-31 04952292 core:AcceleratedTaxDepreciationDeferredTax 2023-03-31 04952292 core:RetirementBenefitObligationsDeferredTax 2023-03-31 04952292 core:RetainedEarningsAccumulatedLosses 2023-03-31 04952292 core:ShareCapital 2023-03-31 04952292 core:CurrentFinancialInstruments 2023-03-31 04952292 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 04952292 core:Non-currentFinancialInstruments 2023-03-31 04952292 core:Non-currentFinancialInstruments core:AfterOneYear 2023-03-31 04952292 core:Goodwill 2023-03-31 04952292 core:FurnitureFittingsToolsEquipment 2023-03-31 04952292 core:LandBuildings 2023-03-31 04952292 bus:FRS102 2022-04-01 2023-03-31 04952292 bus:Audited 2022-04-01 2023-03-31 04952292 bus:FullAccounts 2022-04-01 2023-03-31 04952292 bus:RegisteredOffice 2022-04-01 2023-03-31 04952292 bus:CompanySecretary1 2022-04-01 2023-03-31 04952292 bus:Director2 2022-04-01 2023-03-31 04952292 bus:Director3 2022-04-01 2023-03-31 04952292 bus:Director4 2022-04-01 2023-03-31 04952292 bus:Director5 2022-04-01 2023-03-31 04952292 bus:OrdinaryShareClass1 2022-04-01 2023-03-31 04952292 bus:Consolidated 2022-04-01 2023-03-31 04952292 bus:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 04952292 bus:Agent1 2022-04-01 2023-03-31 04952292 core:OtherProvisionsContingentLiabilities 2022-04-01 2023-03-31 04952292 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 04952292 core:ShareCapital 2022-04-01 2023-03-31 04952292 core:Goodwill 2022-04-01 2023-03-31 04952292 core:LandBuildingsUnderOperatingLeases 2022-04-01 2023-03-31 04952292 core:Buildings 2022-04-01 2023-03-31 04952292 core:FurnitureFittings 2022-04-01 2023-03-31 04952292 core:FurnitureFittingsToolsEquipment 2022-04-01 2023-03-31 04952292 core:LandBuildings 2022-04-01 2023-03-31 04952292 core:UKTax 2022-04-01 2023-03-31 04952292 1 2022-04-01 2023-03-31 04952292 countries:AllCountries 2022-04-01 2023-03-31 04952292 countries:EnglandWales 2022-04-01 2023-03-31 04952292 2022-03-31 04952292 core:RetainedEarningsAccumulatedLosses 2022-03-31 04952292 core:ShareCapital 2022-03-31 04952292 core:Goodwill 2022-03-31 04952292 core:FurnitureFittingsToolsEquipment 2022-03-31 04952292 core:LandBuildings 2022-03-31 04952292 2021-04-01 2022-03-31 04952292 2022-03-31 04952292 bus:OrdinaryShareClass1 2022-03-31 04952292 core:AcceleratedTaxDepreciationDeferredTax 2022-03-31 04952292 core:RetirementBenefitObligationsDeferredTax 2022-03-31 04952292 core:RetainedEarningsAccumulatedLosses 2022-03-31 04952292 core:ShareCapital 2022-03-31 04952292 core:CurrentFinancialInstruments 2022-03-31 04952292 core:CurrentFinancialInstruments core:WithinOneYear 2022-03-31 04952292 core:Non-currentFinancialInstruments 2022-03-31 04952292 core:Non-currentFinancialInstruments core:AfterOneYear 2022-03-31 04952292 core:Goodwill 2022-03-31 04952292 core:FurnitureFittingsToolsEquipment 2022-03-31 04952292 core:LandBuildings 2022-03-31 04952292 core:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 04952292 core:ShareCapital 2021-04-01 2022-03-31 04952292 core:LandBuildingsUnderOperatingLeases 2021-04-01 2022-03-31 04952292 core:UKTax 2021-04-01 2022-03-31 04952292 2021-03-31 04952292 core:RetainedEarningsAccumulatedLosses 2021-03-31 04952292 core:ShareCapital 2021-03-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 04952292

Coate Water Care Company (Church View Nursing Home) Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2023

 

Coate Water Care Company (Church View Nursing Home) Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 19

 

Coate Water Care Company (Church View Nursing Home) Limited

Company Information

Directors

C L Smith

G F Smith

J Smith

N Smith

Company secretary

G F Smith

Registered office

3 Lancaster Mews
South Marston Industrial Estate
Swindon
SN3 4YF

Bankers

National Westminster Bank PLC
The Quadrangle
The Promenade
Cheltenham
GL50 1PX

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Coate Water Care Company (Church View Nursing Home) Limited

Strategic Report for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

Fair review of the business

The results for the year, which are set out in the profit and loss account, show turnover for the year of £10,579,316 (2022 - £9,151,259) and operating profit of £3,063,545 (2022 - £2,969,585). At 31 March 2023, the company had net assets of £8,542,043 (2022 - £6,904,593). The directors consider that the financial position of the company at the year end is satisfactory.


Key performance indicators

Given the nature of the business, the company's directors are of the opinion that key performance indicators are important. The group uses a number of indicators to monitor and improve development and performance of the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. The directors do not consider the inclusion of an analysis, using key performance indicators, to be necessary to assist users of the financial statements in their understanding of the financial performance or the position of the company.

Principal risks and uncertainties

Details of principal risks and uncertainties, key performance indicators, financial instruments and future developments are considered similar to the group to which the company belong and are disclosed in the group financial statements of the parent company, Coate Water Care Company Limited.

Financial instruments

Objectives and policies

The directors constantly monitor the company's trading results and revise projections as appropriate to ensure that the company can meet its future obligations as they fall due.

Price risk, credit risk, liquidity risk and cash flow risk

The company is exposed to the usual credit and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that price and liquidity risks are minimised by the predetermination of the company funding facilities and terms.

The company has sufficient resources available and continues to trade profitably generating cash. The directors have prepared forecasts for the next 12 months that indicate that these trends will continue. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and has continued to adopt the going concern basis in preparing the financial statements.

Approved by the Board on 20 December 2023 and signed on its behalf by:


G F Smith
Director

 

Coate Water Care Company (Church View Nursing Home) 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.

Directors of the company

The directors who held office during the year were as follows:

C L Smith

G F Smith

J Smith

N Smith

Employment of disabled persons

The company’s policy is to consider the recruitment of disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Employee involvement

The company encourages the involvement of employees in its management through regular departmental meetings.

Future developments

The external commercial environment is expected to remain competitive in the remainder of 2023. However, the directors remain confident that the company will improve its current level of performance in the future and will continue to trade as a going concern.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 20 December 2023 and signed on its behalf by:


G F Smith
Director

 

Coate Water Care Company (Church View Nursing Home) Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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 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.

 

Coate Water Care Company (Church View Nursing Home) Limited

Independent Auditor's Report to the Members of Coate Water Care Company (Church View Nursing Home) Limited

Opinion

We have audited the financial statements of Coate Water Care Company (Church View Nursing Home) Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the 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 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Coate Water Care Company (Church View Nursing Home) Limited

Independent Auditor's Report to the Members of Coate Water Care Company (Church View Nursing Home) Limited

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

the Strategic Report and 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 our 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 and the Directors' Report.

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

adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on page 4, 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.

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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

Coate Water Care Company (Church View Nursing Home) Limited

Independent Auditor's Report to the Members of Coate Water Care Company (Church View Nursing Home) Limited

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

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

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available 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.





Joanne Hartness (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

20 December 2023

 

Coate Water Care Company (Church View Nursing Home) Limited

Profit and Loss Account for the Year Ended 31 March 2023

Note

2023
 £

2022
 £

Turnover

3

10,579,316

9,151,259

Cost of sales

 

(5,991,665)

(5,236,158)

Gross profit

 

4,587,651

3,915,101

Administrative expenses

 

(1,677,893)

(1,439,790)

Other operating income

4

153,787

494,274

Operating profit

5

3,063,545

2,969,585

Other interest receivable and similar income

3,454

28

Interest payable and similar charges

6

(296,116)

(219,458)

Profit before tax

 

2,770,883

2,750,155

Taxation

9

(497,833)

(758,681)

Profit for the financial year

 

2,273,050

1,991,474

Turnover and operating profit are derived wholly from continuing operations.

The company has no other comprehensive income for the year.

 

Coate Water Care Company (Church View Nursing Home) Limited

(Registration number: 04952292)
Balance Sheet as at 31 March 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

10

82,868

250,547

Tangible assets

11

12,460,619

12,583,446

 

12,543,487

12,833,993

Current assets

 

Debtors

12

2,640,766

1,944,017

Cash at bank and in hand

2,785,651

2,109,247

 

5,426,417

4,053,264

Creditors: Amounts falling due within one year

13

(2,073,127)

(2,336,050)

Net current assets

 

3,353,290

1,717,214

Total assets less current liabilities

 

15,896,777

14,551,207

Creditors: Amounts falling due after more than one year

13

(6,503,935)

(6,839,311)

Provisions for liabilities

9

(850,799)

(807,303)

Net assets

 

8,542,043

6,904,593

Capital and reserves

 

Called up share capital

16

1

1

Retained earnings

8,542,042

6,904,592

Total equity

 

8,542,043

6,904,593

Approved and authorised by the Board on 20 December 2023 and signed on its behalf by:
 


G F Smith
Director

 

Coate Water Care Company (Church View Nursing Home) Limited

Statement of Changes in Equity for the Year Ended 31 March 2023

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

1

6,904,592

6,904,593

Profit for the year

-

2,273,050

2,273,050

Dividends

-

(635,600)

(635,600)

At 31 March 2023

1

8,542,042

8,542,043

Share capital
£

Retained earnings
£

Total
£

At 1 April 2021

1

5,048,718

5,048,719

Profit for the year

-

1,991,474

1,991,474

Dividends

-

(135,600)

(135,600)

At 31 March 2022

1

6,904,592

6,904,593

 

Coate Water Care Company (Church View Nursing Home) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

 

1

General information

The address of its registered office is:
3 Lancaster Mews
South Marston Industrial Estate
Swindon
SN3 4YF

The company is a private company limited by shares and is incorporated and domiciled in England and Wales.

 

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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

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.

Summary of disclosure exemptions

The company has not presented a cash flow statement on the grounds that the company is a wholly owned subsidiary and a group cash flow statement is included in the financial statements of the ultimate parent company.

Name of parent of group

These financial statements are consolidated in the financial statements of Coate Water Care Company Limited.

The financial statements of Coate Water Care Company Limited may be obtained from Companies House.

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.

 

Coate Water Care Company (Church View Nursing Home) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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. [Note that the performance model is also an option under FRS 102 and this is an accounting policy choice. If the performance model is selected, government grants would be recognised to the extent that performance-related conditions have been met.

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 are 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 over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold buildings

1% on cost

Fixtures and fittings

25% reducing balance

Freehold land is not depreciated.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years straight line

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.

 

Coate Water Care Company (Church View Nursing Home) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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 debtors are repayable within one year and are hence included at the undiscounted amount of the 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 receivables.

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.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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.

 

Coate Water Care Company (Church View Nursing Home) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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

Turnover

The total turnover for the year has been derived from its principal activity, care services, wholly undertaken in the United Kingdom.

 

Coate Water Care Company (Church View Nursing Home) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

 

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
 £

2022
 £

Government grants

39,257

483,076

Rental income

16,867

11,198

Miscellaneous other operating income

97,663

-

153,787

494,274

Government grants in the current and prior year consist of local authority grants in relation to COVID-19.

 

5

Operating profit

Arrived at after charging

2023
 £

2022
 £

Depreciation expense

289,925

278,513

Amortisation expense

167,679

169,608

Operating lease expense - property

73,760

58,796

 

6

Interest payable and similar expenses

2023
 £

2022
 £

Interest on bank overdrafts and borrowings

290,504

217,500

Other finance costs adjacent to interest

5,612

1,958

296,116

219,458

 

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

4,777,057

4,030,503

Social security costs

380,417

289,632

Pension costs, defined contribution scheme

77,978

63,584

5,235,452

4,383,719

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

2023
 No.

2022
 No.

Administration staff

5

5

Care staff

254

254

259

259

 

8

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

7,200

6,915

 

Coate Water Care Company (Church View Nursing Home) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

 

9

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

451,043

501,196

UK corporation tax adjustment to prior periods

3,294

6,710

454,337

507,906

Deferred taxation

Arising from origination and reversal of timing differences

43,496

250,775

Tax expense in the income statement

497,833

758,681

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

2,770,883

2,750,155

Corporation tax at standard rate

526,468

522,529

Effect of revenues exempt from taxation

(495)

-

Deferred tax expense relating to changes in tax rates or laws

10,521

193,753

Deferred tax expense from unrecognised temporary difference from a prior period

-

18,474

Increase in UK and foreign current tax from adjustment for prior periods

3,294

6,710

Tax increase from effect of capital allowances and depreciation

15,045

17,215

Tax decrease arising from group relief

(57,000)

-

Total tax charge

497,833

758,681

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

852,562

Retirement benefit obligations

(1,763)

850,799

2022

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

809,257

Retirement benefit obligations

(1,954)

807,303

 

Coate Water Care Company (Church View Nursing Home) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

 

10

Intangible assets

Goodwill
 £

Cost

At 1 April 2022 and at 31 March 2023

1,696,117

Amortisation

At 1 April 2022

1,445,570

Amortisation charge

167,679

At 31 March 2023

1,613,249

Carrying amount

At 31 March 2023

82,868

At 31 March 2022

250,547

 

11

Tangible assets

Freehold land and buildings
£

Fixtures and fittings
 £

Total
£

Cost

At 1 April 2022

12,883,527

2,546,983

15,430,510

Additions

-

167,098

167,098

At 31 March 2023

12,883,527

2,714,081

15,597,608

Depreciation

At 1 April 2022

892,239

1,954,825

2,847,064

Charge for the year

120,819

169,106

289,925

At 31 March 2023

1,013,058

2,123,931

3,136,989

Carrying amount

At 31 March 2023

11,870,469

590,150

12,460,619

At 31 March 2022

11,991,288

592,158

12,583,446

Freehold land of £1,777,228 (2022 - £1,777,228) is not depreciated.

 

12

Debtors

2023
 £

2022
 £

Trade debtors

259,425

374,398

Amounts due from group undertakings

2,159,956

1,430,239

Other debtors

3,940

887

Directors' loan accounts

11,212

-

Prepayments

206,233

125,256

Corporation tax asset

-

13,237

 

2,640,766

1,944,017

 

Coate Water Care Company (Church View Nursing Home) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

 

13

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

14

381,524

423,475

Trade creditors

 

317,435

521,284

Social security and other taxes

 

157,246

-

Outstanding defined contribution pension costs

 

26,001

24,395

Other creditors

 

356,787

359,014

Accruals and deferred income

 

631,480

607,682

Corporation tax liability

 

49,307

-

Amounts owed to group undertakings

 

153,347

400,200

 

2,073,127

2,336,050

Due after one year

 

Loans and borrowings

14

6,503,935

6,839,311

 

14

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

381,524

423,475

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

6,503,935

6,839,311

Bank borrowings

At the year end, the company has two term loans in place.

The first loan is repayable in monthly instalments with the final instalment due for repayment in December 2036. Interest is payable at a fixed rate of 4.02% per annum. At 31 March 2023 there was £5,935,768 outstanding on this facility (2022 - £6,254,192).

The second loan of £1,100,000 is being repaid in quarterly instalments over a 5 year term commencing in December 2021. Interest is being charged at 2.27% above Base Rate per annum and the balance outstanding at 31 March 2023 was £986,802 (2022 - £1,051,318).

Bank borrowings are stated after deducting debt costs capitalised of £37,111 (2022 - £42,724).

The loans are secured by way of fixed and floating charges over the assets in the company and by way of a guarantee provided by all companies falling under the group headed by the parent company, Coate Water Care Company Limited.

 

Coate Water Care Company (Church View Nursing Home) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

 

15

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £77,978 (2022 - £63,584).

Contributions totalling £26,001 (2022 - £24,395) were payable to the scheme at the end of the year and are included in creditors.

 

16

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

         
 

17

Related party transactions

At 31 March 2023, the company was owed £11,212 (2022 - £5,100) by Mr C L and Mrs G F Smith in the form of a directors' loan account. There are no fixed repayment terms.

At 31 March 2023, the company was owed £3,900 (2022 - £Nil) by Hillview Property Company Limited, a company controlled by the directors C L and G F Smith.

 

18

Contingent liabilities

The company is bound by an intra-group cross guarantee in respect of bank debt with other members of the group headed by its ultimate parent undertaking, Coate Water Care Company Limited. The amount guaranteed is £13,932,337 (2022 - £14,748,217).

 

19

Parent and ultimate parent undertaking

The ultimate parent is Coate Water Care Company Limited, incorporated in England and Wales.

 The ultimate controlling party is Mr C and Mrs G Smith.