Kachra Holdings Limited - Limited company accounts 23.2

REGISTERED NUMBER: 11402733 (England and Wales)

KACHRA HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Page

Company Information

1

Group Strategic Report

2

to

4

Report of the Directors

5

to

6

Report of the Independent Auditors

7

to

10

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Statement of Financial Position

13

Company Statement of Financial Position

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Statement of Cash Flows

17

Notes to the Consolidated Statement of Cash Flows

18

Notes to the Consolidated Financial Statements

19

to

32

DIRECTORS:

A Kachra

A A Kachra

A Kachra

REGISTERED OFFICE:

c/o Duncan & Toplis Limited

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

BUSINESS ADDRESS:

Olympus House

Staniland Way

Werrington

Peterborough

Cambridgeshire

PE4 6NA

REGISTERED NUMBER:

11402733 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

The directors present their strategic report of the company and the group for the year ended 31 March 2023.

REVIEW OF BUSINESS

The year ending March 2023 has been dominated by the refinance of County Court Care Group portfolio of assets, home acquisitions, and new capital projects.

The Country Court Care Group core funding has been successfully renewed with a new lender in May 22 for the next 5 years.

Country Court has continued its capital expenditure programme, with a number of homes refurbishment and extensions, increasing bed capacity. A new care home was opened in East London in the first half of the year, and one in East Northamptonshire at the end of the financial year. During the year the group completed the purchase of two homes from another provider and closed two homes for full refurbs. There were also refurbs and extensions completed at homes in Weston-super-Mare and Welwyn Garden City.

To support the business expansion operationally, the operational teams have settled into a new structure, with the portfolio split into two operational areas, each with a Head of Operations. Under these are a number of operational managers responsible for half a dozen or so homes, as they support home managers, to continue to maintain the high levels of quality of care standard and maintain the higher occupancy levels achieved post pandemic.

PRINCIPAL RISKS AND UNCERTAINTIES

Looking ahead domestic and overseas political uncertainty is negatively impacting the economic outlook, while operationally there are ongoing challenges in attracting the right calibre of staff and retaining them in a competitive job market. In addition, unprecedented inflation levels across all areas of the business, and the ongoing threat to cyber security, present the highest risks to the group.

The ongoing recruitment and retention issues in the care home sector have been mitigated to an extent by improved access to visas for overseas staff, nevertheless the pressure is still there, and the senior management team are continuing to explore ways to improve staff retention.

The strategy to manage and mitigate increasing costs while maintaining quality of service has been supported by the business accelerating the adoption of new technology to improve group wide efficiency, while the capital works programme in care homes also aims to improve staffing and energy efficiency.

Cyber security continues to be another high priority item for the group, and the company is investing in this area to ensure our data and systems are protected as far as possible.

SECTION 172(1) STATEMENT

Stakeholder Engagement

The Board at Country Court have a legal responsibility under section 172 of the Companies Act 2006 to ensure that we act in good faith, and in a way that would be most likely to promote the company's success for the benefit of its members. To have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we, as a Board performed this responsibility.

How we work

Country Court was founded in 1983 by Roshan Bogha and our current Chairman Abdul Kachra. Their first care home to open was Beech Lodge in Holbeach, Lincolnshire. The care home's reputation soon grew, led by kindness, compassion, and dignity. Soon to follow were a further seven care homes, all opening by 1990, this helped to establish Country Court's group of care homes as one of the most trusted in the region.

With a successful combination of nursing skills, along with a professional, yet homely feel, Country Court's model for care helped to support our continued expansion. Today Country Court is both caring for and employing thousands of people across the UK.

Country Court provides the highest quality of care that you would expect your loved ones to receive, this is combined with modern, comfortable homes created for residents in mind. Country Court remains a Family-run company to this day, our philosophy is very much "Our family caring for yours" which Is at the heart of each of our homes.

Engaging with stakeholders

Our key stakeholders, and the ways in which we engage with them, are as follows:

Our employees

Recruitment and staff retention is a key part to Country Court, as it is to any business. We recognise that our staff are what makes our homes special and perform a vital role, which they did particularly during the pandemic. With this in mind, we are regularly reviewing our employee offering to ensure we can provide the best package possible, and to become a leading employer within the care sector. This includes regularly benchmarking pay, investing in employee benefits and ensuring that all staff have access to training, career progression opportunities and health & well-being support networks. Nearly a quarter of our staff and just over a half of our Home Managers have been with us for 5 years or more. In addition, all of our Operational Team Managers have been promoted internally, clearly showing that career progression is available within Country Court.

Our customers

Our residents come first at Country Court, everything we do is with them in mind, we provide the best possible person-centred care for those who live with us. Every resident who lives with us has an individual care plan. This incorporates their life history, medical needs, care requirements and their mental & physical wellbeing. This is updated daily via our electronic system - Nourish. We recognise that each person is different, it is therefore imperative to take a personal approach for each of our residents. Getting to know our residents and their families is of prime importance to us to be able to understand their needs, preferences and wishes. This helps us to take a holistic approach and to deliver the best possible care which benefits our residents both mentally and physically.

Our community

Country Court' was founded as a family-run company and continues this way today. We have established excellent community relationships at our Head Office in Peterborough and throughout our network of homes. Each home plays a key part within their local community by helping to care for those who need it and by establishing strong connections throughout the community. These connections span across the local health care professional network, to schools and to local interest groups. Homes regularly host local events arid fundraisers, as well as reaching out to the vulnerable people in the society through social meet ups or occasions such as 'Community Christmas Lunches'. Many of our homes undertake outreach work to help people in their community who are isolated, particularly including 'Good neighbour' and 'buddy' schemes, as well as raising money for local and national charities across a variety of campaigns.

Our planet

Country Court are committed to disposing waste in a responsible manner and strive to recycle where possible. Due to the nature of our business, Country Court operate under strict regulations for the disposal of medical and clinical waste. We always follow the correct procedures for disposal of these items. We regularly examine our supply chain with a view of cutting down wastage and single use materials. We engage our staff, suppliers, and customers in initiatives to make our business greener.

KEY PERFORMANCE INDICATORS

Country Court uses a number of KPIs to monitor the financial and non-financial performance of the business.

Care-related KPls are strong with 28 care homes being rated as good by CQC, 5 requires improvement and 2 awaiting inspection. This represents the highest level of compliance of all the care groups within CQC Market Oversight.

The financial key performance indicators are an increase in turnover of 12.01% (2022 24.67%), a gross profit margin of 39.90% (2022: 35.39%) and a net operating profit margin excluding one-off exceptional items of 10.29% (2022: 16.23%).

GOING CONCERN

Country Court at the year-end was within its headroom for its existing facility.

Management continues to react to ongoing challenges in the sector. Interest rate risk has been mitigated through the purchase of a hedging product to cap the exposure to rate rises. Inflation will be managed through improved staffing efficiencies in building via capital projects, and the use of technology to improve systems. The group will also work with Local Authorities, and communicate with private customers, to negotiate proportionate fees.

ON BEHALF OF THE BOARD:

A Kachra - Director

12 December 2023

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of management of care homes.

DIVIDENDS

The directors declared a dividend on the redeemable preference shares of £1 each amounting to £14,357 (2022 - £16,485). The directors recommend that no dividends be paid on any other shares.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

A Kachra

A A Kachra

A Kachra

FINANCIAL INSTRUMENTS

Interest rate risk

The group finances its operations through a mixture of retained profit and bank borrowings. The group's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities together with an interest rate hedging agreement

POLITICAL DONATIONS AND EXPENDITURE

Of the donations made in the year, none of these were to a political party.

EMPLOYEES

Employee Involvement

Country Court keeps their employees informed of updates, activities, and changes through a monthly newsletter. The Directors hold regular meetings with the Senior Leadership team who represent their respective departments from across the business. Our Senior Leadership team also hold regular meetings with their staff to gather feedback for discussion. We also have regular staff surveys which has led to the review of performance related pay along with other benefits and rewards.

Disabled Employees

Applications for employment from disabled candidates are given full and fair consideration as per our recruitment process. All candidates are assessed based on their aptitude, experience and ability for the role for which they have applied for. Training, career development and promotion opportunities are available to all employees. In the event of employees becoming disabled, the company would provide support and retraining (if necessary) to ensure their

employment with the company can continue where possible.

STREAMLINED ENERGY AND CARBON REPORTING

2023

CO2e tonnes

KWh

Combustion of gas, LPG or kerosene

232

1,106,071

Consumption of fuel for the purposes of transport

175

651,432

Purchase of electricity for own use

4,169

6,148,662

4,576

7,906,165

The group has applied the methodology as per the following guidelines: 2019 UK Government GHG Conversion Factors for Company Reporting. This was published by the UK Department for Environment Food & Rural Affairs DEFRA. This was with a view of supporting businesses to be able to convert the energy used in the group's operations to emissions of CO2.

Carbon emission factors for purchased electricity are calculated according to the 'location-based grid average' method. Data sources include billing from the energy supplier and the organisations internal fuel usage systems. There aren't any current ratios to express the group's annual emissions in relation to a quantifiable factor in association with the group's activities. The group has taken a range of measures to increase the group's energy efficiency. In the last year the following projects have been implemented:

-

New build sites have been constructed to meet the highest energy ratings with Camberwell Lodge Care & Nursing Home achieving a BREEAM Assessment Report Rating of Excellent

-

The use of the latest technology and materials when refurbishing care homes across the group

-

LED lighting has been fitted for both normal and emergency lighting across the group, both internally and externally

-

Movement sensors have been installed to control lighting in areas to reduce the risk of lights being left on unnecessarily

-

Older boiler systems have been replaced with newer and more energy efficient models

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

A Kachra - Director

12 December 2023

Opinion

We have audited the financial statements of Kachra Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 March 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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.

Opinions 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 six, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Care Quality Commission (CQC) regulations, health and safety regulations and employment law.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the CQC inspections conducted in the year, and a review of Health and Safety and employment controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Alistair Main FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

12 December 2023

TURNOVER

3

99,753,203

89,058,951

Cost of sales

59,951,042

57,543,120

GROSS PROFIT

39,802,161

31,515,831

Administrative expenses

30,646,866

20,646,502

9,155,295

10,869,329

Other operating income

1,109,930

3,585,591

OPERATING PROFIT

5

10,265,225

14,454,920

Impairment of freehold property

6

(519,907

)

(2,129,089

)

Impairment written back

6

14,391

1,558,422

Profit on sale of fixed asset

6

848,745

2,137,378

10,608,454

16,021,631

Interest receivable and similar income

14,095

17,711

10,622,549

16,039,342

Interest payable and similar expenses

7

9,697,177

10,877,111

PROFIT BEFORE TAXATION

925,372

5,162,231

Tax on profit

8

(193,509

)

92,601

PROFIT FOR THE FINANCIAL YEAR

1,118,881

5,069,630

Profit attributable to:

Owners of the parent

1,166,853

5,091,621

Non-controlling interests

(47,972

)

(21,991

)

1,118,881

5,069,630

PROFIT FOR THE YEAR

1,118,881

5,069,630

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

36,756,643

35,106,078

Income tax relating to other comprehensive income

(10,371,958

)

(15,434,208

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

26,384,685

19,671,870

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

27,503,566

24,741,500

Total comprehensive income attributable to:

Owners of the parent

27,551,538

24,763,491

Non-controlling interests

(47,972

)

(21,991

)

27,503,566

24,741,500

FIXED ASSETS

Intangible assets

11

547,418

3,380,890

Tangible assets

12

311,650,476

245,756,746

Investments

13

-

-

312,197,894

249,137,636

CURRENT ASSETS

Stocks

14

1,617,487

2,141,454

Debtors

15

13,345,855

8,306,746

Cash at bank and in hand

5,594,226

6,709,316

20,557,568

17,157,516

CREDITORS

Amounts falling due within one year

16

24,778,038

32,049,587

NET CURRENT LIABILITIES

(4,220,470

)

(14,892,071

)

TOTAL ASSETS LESS CURRENT LIABILITIES

307,977,424

234,245,565

CREDITORS

Amounts falling due after more than one year

17

(155,103,540

)

(118,406,623

)

PROVISIONS FOR LIABILITIES

22

(46,528,774

)

(36,143,041

)

NET ASSETS

106,345,110

79,695,901

CAPITAL AND RESERVES

Called up share capital

23

22,767,682

23,607,682

Revaluation reserve

24

57,771,753

31,387,068

Retained earnings

24

25,914,545

24,762,049

SHAREHOLDERS' FUNDS

106,453,980

79,756,799

NON-CONTROLLING INTERESTS

25

(108,870

)

(60,898

)

TOTAL EQUITY

106,345,110

79,695,901

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2023 and were signed on its behalf by:

A Kachra - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

36,031,070

36,031,070

36,031,070

36,031,070

CURRENT ASSETS

Debtors

15

1,700,388

1,548,039

CREDITORS

Amounts falling due within one year

16

13,696,393

12,714,177

NET CURRENT LIABILITIES

(11,996,005

)

(11,166,138

)

TOTAL ASSETS LESS CURRENT LIABILITIES

24,035,065

24,864,932

CAPITAL AND RESERVES

Called up share capital

23

22,767,682

23,607,682

Retained earnings

1,267,383

1,257,250

SHAREHOLDERS' FUNDS

24,035,065

24,864,932

Company's profit for the financial year

24,490

16,485

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2023 and were signed on its behalf by:

A Kachra - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 April 2021

23,607,682

(4,323,870

)

35,681,708

Changes in equity

Dividends

-

(16,485

)

-

Total comprehensive income

-

5,091,621

19,671,870

Realised on sale

-

24,010,783

(23,966,510

)

Balance at 31 March 2022

23,607,682

24,762,049

31,387,068

Changes in equity

Issue of share capital

(840,000

)

-

-

Dividends

-

(14,357

)

-

Total comprehensive income

-

1,166,853

26,384,685

Balance at 31 March 2023

22,767,682

25,914,545

57,771,753

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 April 2021

54,965,520

(38,907

)

54,926,613

Changes in equity

Dividends

(16,485

)

-

(16,485

)

Total comprehensive income

24,763,491

(21,991

)

24,741,500

Realised on sale

44,273

-

44,273

Balance at 31 March 2022

79,756,799

(60,898

)

79,695,901

Changes in equity

Issue of share capital

(840,000

)

-

(840,000

)

Dividends

(14,357

)

-

(14,357

)

Total comprehensive income

27,551,538

(47,972

)

27,503,566

Balance at 31 March 2023

106,453,980

(108,870

)

106,345,110

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2021

23,607,682

1,257,250

24,864,932

Changes in equity

Dividends

-

(16,485

)

(16,485

)

Total comprehensive income

-

16,485

16,485

Balance at 31 March 2022

23,607,682

1,257,250

24,864,932

Changes in equity

Issue of share capital

(840,000

)

-

(840,000

)

Dividends

-

(14,357

)

(14,357

)

Total comprehensive income

-

24,490

24,490

Balance at 31 March 2023

22,767,682

1,267,383

24,035,065

Cash flows from operating activities

Cash generated from operations

1

11,920,409

17,575,769

Interest paid

(8,953,835

)

(10,890,852

)

Interest element of hire purchase payments paid

(5,643

)

(2,744

)

Government grants

935,319

3,480,480

Tax paid

(525,000

)

(675,000

)

Net cash from operating activities

3,371,250

9,487,653

Cash flows from investing activities

Purchase of tangible fixed assets

(33,392,322

)

(23,904,098

)

Sale of tangible fixed assets

2,559,273

56,519,066

Interest received

14,095

17,711

Net cash from investing activities

(30,818,954

)

32,632,679

Cash flows from financing activities

New loans in year

155,711,992

-

Loan repayments in year

(125,332,890

)

(46,937,574

)

Capital repayments in year

(46,488

)

(70,911

)

Redemption of shares

(4,000,000

)

-

Net cash from financing activities

26,332,614

(47,008,485

)

Decrease in cash and cash equivalents

(1,115,090

)

(4,888,153

)

Cash and cash equivalents at beginning of year

2

6,709,316

11,597,469

Cash and cash equivalents at end of year

2

5,594,226

6,709,316

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023

2022

£

£

Profit before taxation

925,372

5,162,231

Depreciation charges

4,893,960

5,052,276

Profit on disposal of fixed assets

(848,745

)

(2,137,378

)

Impairment

505,516

570,667

Government grants

(935,319

)

(3,480,480

)

Finance costs

9,697,177

10,877,111

Finance income

(14,095

)

(17,711

)

14,223,866

16,026,716

Decrease in stocks

523,967

934,177

Increase in trade and other debtors

(4,514,109

)

(3,857,456

)

Increase in trade and other creditors

1,686,685

4,472,332

Cash generated from operations

11,920,409

17,575,769

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2023

31.3.23

1.4.22

£

£

Cash and cash equivalents

5,594,226

6,709,316

Year ended 31 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

6,709,316

11,597,469

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.4.22

Cash flow

changes

At 31.3.23

£

£

£

£

Net cash

Cash at bank

and in hand

6,709,316

(1,115,090

)

5,594,226

6,709,316

(1,115,090

)

5,594,226

Debt

Finance leases

(24,338

)

46,488

(216,400

)

(194,250

)

Debts falling due

within 1 year

(19,072,392

)

9,835,000

-

(9,237,392

)

Debts falling due

after 1 year

(118,399,465

)

(36,582,425

)

-

(154,981,890

)

(137,496,195

)

(26,700,937

)

(216,400

)

(164,413,532

)

Total

(130,786,879

)

(27,816,027

)

(216,400

)

(158,819,306

)