Far Fillimore Care Homes Ltd. - Limited company accounts 23.2

REGISTERED NUMBER: 04506423 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

FAR FILLIMORE CARE HOMES LTD.

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTOR:

C Goel

SECRETARY:

C Goel

REGISTERED OFFICE:

Clifton House

Four Elms Road

Cardiff

CF24 1LE

REGISTERED NUMBER:

04506423 (England and Wales)

SENIOR STATUTORY AUDITOR:

Muhammad Imran Ashraf FCCA

AUDITORS:

Agnon LLP

Chartered Certified Accountants &

Statutory Auditors

Kelvin House

Kelvin Way

Crawley

West Sussex

RH10 9WE

BANKERS:

Barclays Bank PLC

Queen Square

Wolverhampton

West Midlands

WV1 1DS

The director presents his strategic report for the year ended 31 March 2023.

The purpose of this report is to inform members and help them to assess how the director has performed his duties to promote the success of the company.

REVIEW OF BUSINESS

The director aims to present a balanced and comprehensive review of the performance of the business during the year under review and at the year end.

The principal activity of the company continued to be operation, acquisition and development of specialised care and nursing homes.

The director considers that the key performance indicators for the business is occupancy and earnings before interest, tax and depreciation.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and execution of our strategy are subject to number of risks. The following section comprises a summary of the main risks which we believe could potentially impact upon our operating and financial performance.

The company is exposed to price risk, credit risk and liquidity risk.

The company has limited exposure to price risk. The company's policy includes review and assessment of care plans, identifying and managing the risk by entering into price negotiations with the local authority or other service users.

Foreign currency risk - The company has no exposure to foreign currency fluctuations.

Interest rate risk - The company has significant exposure to fluctuations in interest rates. The company has policies and procedures in place to identify and manage such risk and in the current economic conditions the risk is considered minimal.

Credit risk - The company's credit risk is minimal.

Liquidity and cashflow risk - The company ensures that there is availability of funding through committed facilities to meet all of its operational requirements.

Legal - The company is subject to various legal and compliance regulations. The company takes this responsibility seriously and ensures that its policies, systems and procedures are continually updated and comply with legal requirements and best practice.

ON BEHALF OF THE BOARD:

C Goel - Secretary

16 February 2024

The director presents his report with the financial statements of the company for the year ended 31 March 2023.

DIVIDENDS

An interim dividend of £320 per share on the Ordinary A £1 shares was paid during the year . The director recommends that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary B £1 shares. The director recommends that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 March 2023 was £32,000.

FUTURE DEVELOPMENTS

The director believes that the business's current revenue streams are secured and will continue for foreseeable future. The company will continue investing heavily in its staff and upgrading of the care homes. The director believes this investment is vital for the long term success of the business.

The care home sector is facing challenging circumstances with regard to staff recruitment and retention. The business has invested extra financial resources for staff training and remuneration. Director believes this will benefit the business in the long run.

DIRECTOR

C Goel held office during the whole of the period from 1 April 2022 to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

No political donations were paid during the year.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he 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 company's auditors are aware of that information.

AUDITORS

The auditors, Agnon LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C Goel - Secretary

16 February 2024

Opinion

We have audited the financial statements of Far Fillimore Care Homes Ltd. (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 loss 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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:

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

- Enquiring of management, the Audit & Risk Committee in-house and external legal counsel concerning actual and potential litigation and claims;

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- Reading minutes of meetings of those charged with governance;

- Obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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.

Muhammad Imran Ashraf FCCA (Senior Statutory Auditor)

for and on behalf of Agnon LLP

Chartered Certified Accountants &

Statutory Auditors

Kelvin House

Kelvin Way

Crawley

West Sussex

RH10 9WE

16 February 2024

TURNOVER

3,494,243

3,043,110

Administrative expenses

4,246,812

2,968,487

(752,569

)

74,623

Other operating income

15,015

82,631

OPERATING (LOSS)/PROFIT

4

(737,554

)

157,254

Interest receivable and similar income

529

52

(737,025

)

157,306

Interest payable and similar expenses

5

131,640

79,105

(LOSS)/PROFIT BEFORE TAXATION

(868,665

)

78,201

Tax on (loss)/profit

6

29,167

28,398

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(897,832

)

49,803

(LOSS)/PROFIT FOR THE YEAR

(897,832

)

49,803

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(897,832

)

49,803

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

3,741,652

3,878,806

3,741,652

3,878,806

CURRENT ASSETS

Debtors

10

117,518

939,722

Cash at bank and in hand

192,923

354,584

310,441

1,294,306

CREDITORS

Amounts falling due within one year

11

658,443

620,353

NET CURRENT (LIABILITIES)/ASSETS

(348,002

)

673,953

TOTAL ASSETS LESS CURRENT LIABILITIES

3,393,650

4,552,759

CREDITORS

Amounts falling due after more than one year

12

(2,466,658

)

(2,685,917

)

PROVISIONS FOR LIABILITIES

17

(99,451

)

(109,469

)

NET ASSETS

827,541

1,757,373

CAPITAL AND RESERVES

Called up share capital

18

200

200

Retained earnings

19

827,341

1,757,173

SHAREHOLDERS' FUNDS

827,541

1,757,373

The financial statements were approved by the director and authorised for issue on 16 February 2024 and were signed by:

C Goel - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2021

200

1,889,370

1,889,570

Changes in equity

Total comprehensive income

-

49,803

49,803

Dividends

-

(182,000

)

(182,000

)

Balance at 31 March 2022

200

1,757,173

1,757,373

Changes in equity

Total comprehensive income

-

(897,832

)

(897,832

)

Dividends

-

(32,000

)

(32,000

)

Balance at 31 March 2023

200

827,341

827,541

Cash flows from operating activities

Cash generated from operations

1

233,843

76,601

Interest paid

(131,640

)

(79,105

)

Tax paid

(28,353

)

(54,214

)

Net cash from operating activities

73,850

(56,718

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(33,994

)

Interest received

529

52

Net cash from investing activities

529

(33,942

)

Cash flows from financing activities

Loan repayments in year

(219,259

)

(54,814

)

Amount introduced by directors

204

4,888

Government grants

15,015

82,413

Equity dividends paid

(32,000

)

(182,000

)

Net cash from financing activities

(236,040

)

(149,513

)

Decrease in cash and cash equivalents

(161,661

)

(240,173

)

Cash and cash equivalents at beginning of year

2

354,584

594,757

Cash and cash equivalents at end of year

2

192,923

354,584

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.23

31.3.22

£

£

(Loss)/profit before taxation

(868,665

)

78,201

Depreciation charges

137,154

141,900

Loss on disposal of fixed assets

-

2,660

Government grants

(15,015

)

(82,413

)

Finance costs

131,640

79,105

Finance income

(529

)

(52

)

(615,415

)

219,401

Decrease/(increase) in trade and other debtors

822,204

(144,213

)

Increase in trade and other creditors

27,054

1,413

Cash generated from operations

233,843

76,601

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023

31.3.23

1.4.22

£

£

Cash and cash equivalents

192,923

354,584

Year ended 31 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

354,584

594,757

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.22

Cash flow

At 31.3.23

£

£

£

Net cash

Cash at bank and in hand

354,584

(161,661

)

192,923

354,584

(161,661

)

192,923

Debt

Debts falling due within 1 year

(219,258

)

-

(219,258

)

Debts falling due after 1 year

(2,685,917

)

219,259

(2,466,658

)

(2,905,175

)

219,259

(2,685,916

)

Total

(2,550,591

)

57,598

(2,492,993

)

1.	STATUTORY INFORMATION

Far Fillimore Care Homes Ltd. is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the UK.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over

the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of

the acquired business.

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is

amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of

goodwill or intangible assets cannot be made, the life is presumed not to exceed five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Fixtures and fittings

-

15% on reducing balance

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

31.3.23

31.3.22

£

£

Wages and salaries

1,958,326

1,837,867

Social security costs

142,078

134,451

Other pension costs

26,357

31,712

2,126,761

2,004,030

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

31.3.23

31.3.22

Director

1

1

Management and administration

6

6

Care operatives

110

95

117

102

31.3.23

31.3.22

£

£

Director's remuneration

36,000

36,000

4.	OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging:

31.3.23

31.3.22

£

£

Hire of plant and machinery

4,354

6,260

Other operating leases

21,535

19,581

Depreciation - owned assets

137,154

141,900

Loss on disposal of fixed assets

-

2,660

Auditors' remuneration

3,850

3,500

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.23

31.3.22

£

£

Bank loan interest

131,640

79,105

6.

TAXATION

Analysis of the tax charge

The tax charge on the loss for the year was as follows:

31.3.23

31.3.22

£

£

Current tax:

UK corporation tax

39,185

28,350

Deferred tax

(10,018

)

48

Tax on (loss)/profit

29,167

28,398

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.23

31.3.22

£

£

(Loss)/profit before tax

(868,665

)

78,201

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

(165,046

)

14,858

Effects of:

Expenses not deductible for tax purposes

174

550

Depreciation in excess of capital allowances

21,144

12,942

prior periods

Deferred tax

(10,018

)

48

Loans to connected company written off

182,913

-

Total tax charge

29,167

28,398

7.

DIVIDENDS

31.3.23

31.3.22

£

£

Ordinary A shares of £1 each

Interim

32,000

182,000

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2022

and 31 March 2023

182,000

AMORTISATION

At 1 April 2022

and 31 March 2023

182,000

NET BOOK VALUE

At 31 March 2023

-

At 31 March 2022

-

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

property

fittings

Totals

£

£

£

COST

At 1 April 2022

and 31 March 2023

4,703,972

801,753

5,505,725

DEPRECIATION

At 1 April 2022

1,092,913

534,006

1,626,919

Charge for year

94,079

43,075

137,154

At 31 March 2023

1,186,992

577,081

1,764,073

NET BOOK VALUE

At 31 March 2023

3,516,980

224,672

3,741,652

At 31 March 2022

3,611,059

267,747

3,878,806

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Trade debtors

112,365

176,324

Amount owed by connected

companies

-

755,440

Other debtors

-

1,082

Prepayments and accrued income

5,153

6,876

117,518

939,722

Other debtors include nil (31 March 2022 - £755,440) in respect of a loan to a connected

company.

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Bank loans and overdrafts (see note 13)

219,258

219,258

Trade creditors

91,752

103,266

Tax

39,186

28,354

Social security and other taxes

27,824

32,755

Other creditors

119,649

86,284

Directors' current accounts

5,396

5,192

Accruals and deferred income

155,378

145,244

658,443

620,353

12.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.23

31.3.22

£

£

Bank loans (see note 13)

2,466,658

2,685,917