Linley Point Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 10513952 (England and Wales)

Financial Statements

for the Year Ended 31 December 2022

for

Linley Point Limited

Page

Balance Sheet

1

Notes to the Financial Statements

2

FIXED ASSETS

Investment property

4

14,125,000

12,900,000

CREDITORS

Amounts falling due within one year

5

8,496,025

8,496,025

NET CURRENT LIABILITIES

(8,496,025

)

(8,496,025

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,628,975

4,403,975

PROVISIONS FOR LIABILITIES

758,562

871,220

NET ASSETS

4,870,413

3,532,755

CAPITAL AND RESERVES

Called up share capital

5

5

Non distributable retained

earnings

6

5,051,808

3,714,150

Retained earnings

(181,400

)

(181,400

)

4,870,413

3,532,755

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 8 February 2024 and were signed on its behalf by:

L A Bedson - Director

1.	STATUTORY INFORMATION

Linley Point Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

10513952

Registered office:

Unit 2 Evolution

Hooters Hall Road

Newcastle-under-Lyme

Staffordshire

ST5 9QF

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

In the year ended 30 December 2022 the company generated a profit after tax of £1,337,658 (2021: £2,673,000).

The directors have prepared detailed cash flow forecasts for the company for a period of at least 12 months from the date of approval of the financial statements. The forecasts consider the directors' views of current and future economic conditions that are expected to prevail over the period. The Company's forecasts are dependent on the group providing further funding in a severe but plausible downside scenario. Lovett Care Holdings Limited, "The Group", has indicated that it intends to provide financial support to the Company as required. The directors have concluded that the Group has the ability and intent to provide this support. The key factors considered in reaching this conclusion are summarised below:

- The Group has access to debt facilities consisting of an external term loan of £60m and a shareholder term loan of £52m. Both facilities are subject to covenant compliance.

- The aggregate value of group debt as at 30 December 2022 is £48m (see note 18 for more detail).

- The external term loan was granted in March 2023 and is repayable in February 2029. The shareholder term loan expires or is repayable in August 2024. The cash flow forecasts assume the shareholder term loan will not become repayable and instead, will be transferred to shareholder equity. Subsequent to the year-end the shareholders commenced a process to formally consider equitizing the shareholder term loan debt facility. A subordination agreement between the external loan provider, Group and shareholders prevents the shareholder debt being repaid should it result in a covenant breach on the external debt.

- In performing their assessment, the directors have considered a severe but plausible downside scenario which models the impact of a downturn in trade. In this scenario revenues are combined with increased costs due to inflationary pressures. This results in a corresponding fall in profitability with the impacted earnings before interest, tax, depreciation and amortisation (EBITDA) although covenants continue to be met.

As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as that fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared these financial statements on a going concern basis.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2021 - 1 ) .

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2022

12,900,000

Revaluations

1,225,000

At 31 December 2022

14,125,000

NET BOOK VALUE

At 31 December 2022

14,125,000

At 31 December 2021

12,900,000

Fair value at 31 December 2022 is represented by:

£

Valuation in 2020

9,600,000

Valuation in 2021

3,300,000

Valuation in 2022

1,225,000

14,125,000

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

as restated

£

£

Amounts owed to group undertakings

8,496,025

8,496,025

6.

RESERVES

Non

distributable

retained

earnings

£

At 1 January 2022

3,714,150

Transfer of revaluation

1,337,658

At 31 December 2022

5,051,808

7.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Clare Partridge (Senior Statutory Auditor)

for and on behalf of KPMG LLP

8.	ULTIMATE CONTROLLING PARTY

The immediate parent company is Lovett Care Limited and ultimate parent undertaking and controlling party is Tempus Holding S.A.R.L 62, which prepares group financial statements. The registered office of Tempus Holding S.A.R.L 62 is 15, Boulevard F.W. Raiffeisen, L-2411 Luxembourg.

Consolidated financial statements are available on request from the registered office of Tempus Holding S.A.R.L 62.