New Century Care (Caterham) Limited - Limited company accounts 23.2

REGISTERED NUMBER: 05295038 (England and Wales)

NEW CENTURY CARE (CATERHAM) LIMITED

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY 2022 TO 31 MARCH 2023

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

K J G Hillen

J S Godden

Ms E C Gilvear

S M P Adcock

REGISTERED OFFICE:

5th Floor

167-169 Great Portland Street

London

W1W 5PF

REGISTERED NUMBER:

05295038 (England and Wales)

AUDITORS:

Keelings Limited

Statutory Auditors, Chartered Tax Advisers

and Chartered Certified Accountants

Broad House

1 The Broadway

Old Hatfield

Hertfordshire

AL9 5BG

The directors present their report with the financial statements of the company for the period 1 January 2022 to 31 March 2023.

As reported in Notes 17 and 18, the company was acquired on 22 January 2022 by a member of a sub-group of Gresham House plc. The accounting period to which these accounts relate has been extended from the year ended 31 December 2022 to the fifteen months ended 31 March 2023 in order to align the year-end with that of other members of the sub-group.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of a care home.

DIRECTORS

The directors who have held office during the period from 1 January 2022 to the date of this report are as follows:

A B T Pope - resigned 20 January 2022

P R Smith - resigned 20 January 2022

D J Stalder - resigned 20 January 2022

K J G Hillen - appointed 20 January 2022

J S Godden - appointed 20 January 2022

Ms R K Murray - appointed 20 January 2022 - resigned 28 March 2022

Ms E C Gilvear - appointed 4 July 2022

S M P Adcock - appointed 8 February 2023

P G K Bachmann - appointed 20 January 2022 - resigned 11 July 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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 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 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 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.

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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

Pursuant to Section 487(2) of the Companies Act 2006, the auditors will be deemed to be reappointed and Keelings Limited will therefore continue in office.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

J S Godden - Director

21 December 2023

Opinion

We have audited the financial statements of New Century Care (Caterham) Limited (the 'company') for the period ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, 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 period 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 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, 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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.

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:

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud and the detection of fraud.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the sector, including the legal and regulatory framework, in which the entity operates and how the entity is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters concerning non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider that the most significant laws and regulations which have a direct impact on the financial statements are compliance with Financial Reporting Framework FRS 102, Companies Act 2006, Corporation Tax Act 2010, General Data Protection Regulations and applicable Employment Legislation. In addition, we considered other laws and regulations which do not have a direct effect on the financial statements but compliance with which may be fundamental to the entity's ability to operate or to avoid a material penalty. The key laws and regulations that we considered in this context included the Health and Safety at Work etc Act 1974.

Our procedures to respond to risks identified included the following:

- reviewing financial statement disclosures;

- enquiring of management, the directors, and external legal; advisors concerning actual and potential litigation and claims;

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

- testing the appropriateness of journal entries and assessing the assumptions reflected in accounting estimates for indications of potential bias;

- addressing the risk of fraud in revenue recognition by performing substantive testing on the revenue.

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, Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the further that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud, rather than error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Domenico Maurello (Senior Statutory Auditor)

for and on behalf of Keelings Limited

Statutory Auditors, Chartered Tax Advisers

and Chartered Certified Accountants

Broad House

1 The Broadway

Old Hatfield

Hertfordshire

AL9 5BG

21 December 2023

TURNOVER

2,678,110

2,053,976

Cost of sales

1,850,916

1,447,726

GROSS PROFIT

827,194

606,250

Administrative expenses

518,235

368,114

308,959

238,136

Other operating income

3

28,319

96,212

OPERATING PROFIT

5

337,278

334,348

Interest payable and similar expenses

6

74,044

59,403

PROFIT BEFORE TAXATION

263,234

274,945

Tax on profit

7

-

7,370

PROFIT FOR THE FINANCIAL PERIOD

263,234

267,575

PROFIT FOR THE PERIOD

263,234

267,575

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

263,234

267,575

FIXED ASSETS

Tangible assets

8

3,595,284

3,601,215

CURRENT ASSETS

Debtors

9

1,693,832

1,498,193

Cash at bank and in hand

9,420

21,986

1,703,252

1,520,179

CREDITORS

Amounts falling due within one year

10

224,557

143,300

NET CURRENT ASSETS

1,478,695

1,376,879

TOTAL ASSETS LESS CURRENT LIABILITIES

5,073,979

4,978,094

CREDITORS

Amounts falling due after more than one year

11

(1,723,763

)

(1,891,112

)

PROVISIONS FOR LIABILITIES

14

(33,717

)

(33,717

)

NET ASSETS

3,316,499

3,053,265

CAPITAL AND RESERVES

Called up share capital

15

1

1

Revaluation reserve

890,571

890,571

Retained earnings

2,425,927

2,162,693

SHAREHOLDERS' FUNDS

3,316,499

3,053,265

The financial statements were approved by the Board of Directors and authorised for issue on 21 December 2023 and were signed on its behalf by:

J S Godden - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2021

1

1,895,118

890,571

2,785,690

Changes in equity

Total comprehensive income

-

267,575

-

267,575

Balance at 31 December 2021

1

2,162,693

890,571

3,053,265

Changes in equity

Total comprehensive income

-

263,234

-

263,234

Balance at 31 March 2023

1

2,425,927

890,571

3,316,499

1.	STATUTORY INFORMATION

New Century Care (Caterham) Limited 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

Accounting convention

Previously, the company's financial statements were prepared in accordance with section 1A of Financial Reporting Standard 102 ('FRS 102'), the Financial Reporting Standard applicable in the UK and the Republic of Ireland, and the Companies Act 2006. As the company is no longer eligible for section 1A of FRS 102, these financial statements have been prepared in accordance with the full FRS 102.

The financial statements are prepared in Pounds Sterling ('£'), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Going concern

Based on current and projected performance, the directors have a reasonable expectation that the Company will continue to operate and meet its liabilities as they fall due for at least the twelve months following the date of approval of these accounts. Nonetheless, the company wholly-owning the group to which the Company belongs, GHC Topco Limited, has undertaken to provide the Company with any financial support it might need to meet its liabilities in this period. Consequently, these financial statements are again prepared on the going concern basis.

Related parties

For the purpose of these financial statements, a related party is as defined by FRS 102.

Reduced disclosure

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

Additionally, the company has taken advantage of the exemption provided by FRS 102 not to disclose transactions with group members.

Related party exemption

The company has taken advantage of the exemption provided by FRS 102 not to disclose related party transactions with group members.

Significant judgements and estimates

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. These estimates and judgements are made in the light of historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstance. However, actual results may differ from those anticipated.

In the preparation of these financial statements,the company's critical accounting judgements and estimates are in respect of the recoverability of group debts, impairment of assets, depreciation and the provision for doubtful debts. Details of these judgements and estimates are described in the relevant accounting policy, the notes to the financial statements and below:

- Impairment of the company's tangible fixed assets: factors taken into consideration include the economic viability and expected future financial performance of the asset and, where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

- Depreciation of tangible fixed assets: these are depreciated over their useful lives, taking into account residual values. The useful lives and residual values are assessed annually and depend on a number of factors. As regards useful lives, considerations include technological innovation and maintenance programmes, while residual value assessments review matters such as future market conditions, the remaining life of the asset and projected disposal values.

- Doubtful debts: a provision is made when the directors consider that collection of the full amount due is no longer probable. Their assessment is based on the age of the debt, the likely success of any action taken to recover it and the costs of such action.

Turnover

The company operates a care home for up to 44 older people who require residential or nursing care or who are living with dementia. Turnover represents fees in respect of these residents and is recognised for each period of occupancy within the accounting period.

Tangible fixed assets

Tangible fixed assets are stated at cost, less accumulated depreciation and any accumulated impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

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

Buildings - 2% on cost

Plant and machinery etc - 15% on cost

Land and buildings are treated as separate assets and accounted for separately, even though they have been acquired together. Land is considered to have an unlimited useful life and is therefore not depreciated. Buildings are depreciated in line with the company's depreciation policy.

Government grants

Government grants have been accounted for under the accrual model, recognised as other income in the period to which they relate. There were no unfulfilled conditions or contingencies attached to the grants.

Financial instruments

The entity has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the entity's balance sheet when the entity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Equity

Equity comprises the following:

- share capital, which represents the nominal value of equity shares;

- profit and loss reserves, which represent retained profits; and

- the revaluation reserve, which represents the cumulative gains less losses arising on the revaluation of fixed assets.

An equity share is a contract that evidences a residual interest in the assets of the company after deducting all its liabilities. Equity shares issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity shares are recognised as liabilities once they are no longer at the discretion of the company.

Taxation

Taxation for the period 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 period-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.

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.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Impairment of fixed assets

At the end of each reporting period, the directors review the carrying amounts of the company's tangible assets to determine whether there is any indication that those assets have suffered impairment. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment. Where it is not possible to estimate the recoverable amount of an individual asset, the directors estimate the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount and an impairment loss is recognised immediately in the Profit and Loss Account.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the lower of:

a. the revised estimate of its recoverable amount; and

b. the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years.

A reversal of an impairment loss is recognised immediately in the Profit and Loss Account.

3.	OTHER OPERATING INCOME

PERIOD

1.1.22

TO

YEAR ENDED

31.3.23

31.12.21

£

£

Government grants

28,319

96,212

The Government grants received were to alleviate Covid-related costs.

4.	EMPLOYEES AND DIRECTORS

PERIOD

1.1.22

TO

YEAR ENDED

31.3.23

31.12.21

£

£

Wages and salaries

1,537,642

1,221,583

Social security costs

127,123

92,327

Other pension costs

27,738

20,935

1,692,503

1,334,845

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

PERIOD

1.1.22

TO

YEAR ENDED

31.3.23

31.12.21

Management, nursing and administrative

59

65

PERIOD

1.1.22

TO

YEAR ENDED

31.3.23

31.12.21

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

PERIOD

1.1.22

TO

YEAR ENDED

31.3.23

31.12.21

£

£

Depreciation - owned assets

53,847

45,043

Depreciation - assets on finance leases

23,656

18,925

Auditors' remuneration

- audit services

3,000

3,000

Auditors' remuneration

- non-audit services

3,000

3,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

PERIOD

1.1.22

TO

YEAR ENDED

31.3.23

31.12.21

£

£

Finance lease interest

74,044

59,403

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

PERIOD

1.1.22

TO

YEAR ENDED

31.3.23

31.12.21

£

£

Deferred tax

-

7,370

Tax on profit

-

7,370

Reconciliation of total tax charge included in profit and loss

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

PERIOD

1.1.22

TO

YEAR ENDED

31.3.23

31.12.21

£

£

Profit before tax

263,234

274,945

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

50,014

52,240

Effects of:

Expenses not deductible for tax purposes

15,582

12,154

Capital allowances in excess of depreciation

(20,760

)

(7,982

)

Utilisation of tax losses

(44,836

)

(56,412

)

Movement in deferred tax

-

7,370

Total tax charge

-

7,370

8.	TANGIBLE FIXED ASSETS

Fixtures

Land and

Plant and

and

Buildings

machinery

fittings

Totals

£

£

£

£

COST

At 1 January 2022

4,332,969

123,230

445,313

4,901,512

Additions

-

48,049

23,523

71,572

At 31 March 2023

4,332,969

171,279

468,836

4,973,084

DEPRECIATION

At 1 January 2022

856,883

57,463

385,951

1,300,297

Charge for period

22,277

26,231

28,995

77,503

At 31 March 2023

879,160

83,694

414,946

1,377,800

NET BOOK VALUE

At 31 March 2023

3,453,809

87,585

53,890

3,595,284

At 31 December 2021

3,476,086

65,767

59,362

3,601,215

After the year end, on 10 October 2023 an independent valuation of the property included within these financial statements was carried out by Colliers Chartered Surveyors on behalf of Shawbrook bank. As a result, the property was valued at £2.94m, which is lower than the book value of the property stated at 31 March 2023 of £3.5m. Following the valuation, the directors conducted a review comparing book value of the property and value of assets in use, by applying discounted cashflow method over the next 15 years. The directors determined that no impairment of the property is required, because the assets in use are higher than the carrying value of the property.

Fixed assets, included in the above, which are held under finance leases are as follows:

Land and

Plant and

Buildings

machinery

Totals

£

£

£

COST

At 1 January 2022

and 31 March 2023

4,332,969

7,353

4,340,322

DEPRECIATION

At 1 January 2022

856,883

2,129

859,012

Charge for period

22,277

1,379

23,656

At 31 March 2023

879,160

3,508

882,668

NET BOOK VALUE

At 31 March 2023

3,453,809

3,845

3,457,654

At 31 December 2021

3,476,086

5,224

3,481,310

9.

DEBTORS

2023

2021

£

£

Amounts falling due within one year:

Trade debtors

211,924

90,556

Prepayments and accrued income

31,888

12,314

243,812

102,870

Amounts falling due after more than one year:

Amounts owed by group undertakings

1,450,020

1,395,323

Aggregate amounts

1,693,832

1,498,193

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2021

£

£

Finance leases (see note 12)

1,880

1,867

Social security and other taxes

17,423

37,610

Other creditors

37,960

11,690

Accruals and deferred income

167,294

92,133

224,557

143,300

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2021

£

£

Finance leases (see note 12)

1,696,248

1,705,697

Amounts owed to group undertakings

27,515

185,415

1,723,763

1,891,112

12.	LEASING AGREEMENTS

Minimum lease payments under finance leases fall due as follows:

Finance leases

2023

2021

£

£

Gross obligations repayable:

Within one year

61,280

61,280

Between one and five years

298,964

241,211

In more than five years

8,425,123

8,527,605

8,785,367

8,830,096

Finance charges repayable:

Within one year

59,400

59,413

Between one and five years

296,574

237,502

In more than five years

6,731,265

6,825,617

7,087,239

7,122,532

Net obligations repayable:

Within one year

1,880

1,867

Between one and five years

2,390

3,709

In more than five years

1,693,858

1,701,988

1,698,128

1,707,564

In 2019, the company entered into a sale and leaseback arrangement in respect of property recognised in these accounts. As a result, a finance lease over 150 years commenced on 24 May 2019. The terms of the lease include an option to repurchase the property for £1 at the end of the lease.

13.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2021

£

£

Finance leases

1,698,128

1,707,564

The debts in respect of the finance leases are secured against the assets of the company to which they relate.