Silvercrown Care Homes (Swansea) Limited - Limited company accounts 17.3

REGISTERED NUMBER: 05352215 (England and Wales)

Strategic report, report of the directors and

Financial statements

for the year ended 31st March 2017

For

Silvercrown Care Homes (Swansea) Limited

Page

Company information

1

Strategic report

2

Report of the directors

4

Report of the independent auditors

5

Income statement

7

Other comprehensive income

8

Balance sheet

9

Statement of changes in equity

10

Cash flow statement

11

Notes to the cash flow statement

12

Notes to the financial statements

13

Directors:

Dr H N Choudhary

Dr B P Choudhary

Registered office:

101 Dunraven St

Tonypandy

Rhondda Cynon Taff

CF40 1AR

Registered number:

05352215 (England and Wales)

Auditors:

Curtis Bowden & Thomas Limited

Statutory Auditor

Chartered Certified Accountants

101 Dunraven Street

Tonypandy

CF40 1AR

The directors present their strategic report for the year ended 31st March 2017.

PRINCIPAL ACTIVITY

The principal activity of the company during the year was the management of a residential care home.

Review of business

RESULTS AND PERFORMANCE

The company's results for the year, as shown on page 6, show a profit on ordinary activities before taxation of £35,116

(2016 - £60,238). The shareholders funds total £4,027,233 (2016 - £4,009,362).

The results of the company's performance for the financial year ended 31 March 2017 are encouraging. Turnover has

increased 2.7% to £3,016,673 and operating profits are £91,343 for the year ended 31 March 2017 compared to a

operating profit of £74,453 for the year ended 31 March 2016.

BUSINESS ENVIRONMENT

The sector in which the company operates is extremely competitive and highly regulated. The company holds a licence

from the Care and Social Services Inspectorate Wales to allow it to operate its care home. The company, along with all

other care homes is subject to unannounced inspections from the Care and Social Services Inspectorate Wales.

STRATEGY

The management and staff at the home try to provide their service users with a "home from home". The focus is to try to

create a stimulating environment that offers activities, independence and choice to the residents of the home.

Management is dedicated to providing the highest possible standard of care in a comfortable environment. The

company is dependent upon attracting and retaining well qualified nursing and other staff and relies on their

professionalism and efficiency in satisfying both the needs of the residents and their health and safety requirements.

Training is provided to develop the staff, deliver high quality tailored care and to reduce the operational risks associated

with providing care to vulnerable people. This is the strategy that the directors are following to ensure that the company

is a thriving, caring and profitable care home.

KEY PERFORMANCE INDICATORS

The company has made significant progress throughout the year in relation to achieving key elements of its strategy.

The directors and senior management review the financial progress of the company by comparing average occupancy

rates. During the year ended 31 March 2017, average occupancy rates were 92% compared to 90% for the year ended

31 March 2016.

Principal risks and uncertainties

The principal commercial risk faced by the company is the loss of its licence to operate a care home provided by the

Care and Social Services Inspectorate Wales. The directors operate a hands on approach to ensuring that the company's

licence is protected. Systems and procedures have been put in place that ensure that the home is operated within the

guidelines produced by the Care and Social Services Inspectorate Wales.

The principal financial risk to the business is in relation to the bank loan held by the company's holding company. There

is a possibility that bank interest rates will increase in the future from their historically low levels. The holding

company's bank loan is subject to various terms and conditions and the directors continue to monitor these to ensure

compliance.

The company's credit risk is mainly attributable to its trade debtors. When a resident changes from one type of funded

care to another there can be delays in the home receiving payment. The directors closely monitor this and communicate

to the appropriate authorities.

FUTURE DEVELOPMENTS

The directors are confident about the continuing financial performance of the business and are looking to develop the

business further.

On behalf of the board:

Dr B P Choudhary - Director

15th December 2017

The directors present their report with the financial statements of the company for the year ended 31st March 2017.

Dividends

No dividends will be distributed for the year ended 31st March 2017.

Directors

The directors shown below have held office during the whole of the period from 1st April 2016 to the date of this report.

Dr H N Choudhary

Dr B P Choudhary

Statement of directors' responsibilities

The directors are responsible for preparing the 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 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 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, Curtis Bowden & Thomas Limited, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

On behalf of the board:

Dr B P Choudhary - Director

15th December 2017

We have audited the financial statements of Silvercrown Care Homes (Swansea) Limited for the year ended

31st March 2017 on pages seven to sixteen. The financial reporting framework that has been applied in their preparation

is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting

Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and

Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of directors' responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Strategic report and the Report of the directors to identify material inconsistencies with

the audited financial statements and to identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of

any apparent material misstatements or inconsistencies we consider the implications for our report.

Basis for qualified opinion on financial statements

With respect to the amount of £91,088 owed to the company as at 31 March 2017, the audit evidence available to us was

limited because we were not able to confirm this balance with the debtor.

Qualified opinion on financial statements

In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph, the

financial statements:

- give a true and fair view of the state of the company's affairs as at 31 March 2017 and its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the 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 has been prepared in accordance with applicable legal requirements. In the light of the

knowledge and understanding of the company and its environment, we have not identified any material misstatements in

the Strategic report or the Report of the directors.

Matters on which we are required to report by exception

In respect solely of the limitation on our work, relating to the amounts owed, described above:

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit;

and

- we were unable to determine whether adequate accounting records had been kept.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to

you, 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.

Mr Stephen John Smith FCCA (Senior Statutory Auditor)

for and on behalf of Curtis Bowden & Thomas Limited

Statutory Auditor

Chartered Certified Accountants

101 Dunraven Street

Tonypandy

CF40 1AR

15th December 2017

TURNOVER

3,016,673

2,937,892

Cost of sales

229,282

224,151

GROSS PROFIT

2,787,391

2,713,741

Administrative expenses

2,696,048

2,639,288

OPERATING PROFIT

4

91,343

74,453

Interest payable and similar expenses

5

56,227

14,215

PROFIT BEFORE TAXATION

35,116

60,238

Tax on profit

6

17,246

95,710

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

17,870

(35,472

)

PROFIT/(LOSS) FOR THE YEAR

17,870

(35,472

)

OTHER COMPREHENSIVE INCOME

-

210,672

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

210,672

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

17,870

Prior year adjustment

(756,250

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

(581,050

)

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

4,359,894

4,451,236

4,359,894

4,451,236

CURRENT ASSETS

Debtors

10

366,010

372,311

Cash at bank and in hand

157,307

330,671

523,317

702,982

CREDITORS

Amounts falling due within one year

11

855,978

1,144,856

NET CURRENT LIABILITIES

(332,661

)

(441,874

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,027,233

4,009,362

CAPITAL AND RESERVES

Called up share capital

12

1

1

Retained earnings

13

4,027,232

4,009,361

SHAREHOLDERS' FUNDS

4,027,233

4,009,362

The financial statements were approved by the Board of Directors on 15th December 2017 and were signed on its behalf by:

Dr B P Choudhary - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1st April 2015

1

4,801,083

(4,836,090

)

(35,006

)

Prior year adjustment

-

(756,250

)

-

(756,250

)

As restated

1

4,044,833

(4,836,090

)

(791,256

)

Changes in equity

Total comprehensive income

-

(35,472

)

4,836,090

4,800,618

Balance at 31st March 2016

1

4,009,361

-

4,009,362

Changes in equity

Total comprehensive income

-

17,870

-

17,870

Balance at 31st March 2017

1

4,027,231

-

4,027,232

Cash flows from operating activities

Cash generated from operations

1

368,087

189,696

Interest paid

(56,227

)

(14,215

)

Tax paid

(22,129

)

(113,790

)

Net cash from operating activities

289,731

61,691

Cash flows from investing activities

Purchase of tangible fixed assets

(23,172

)

(36,137

)

Sale of tangible fixed assets

13,976

-

Net cash from investing activities

(9,196

)

(36,137

)

Cash flows from financing activities

Loan repayments in year

-

(3,014,474

)

Amount owed to group undertakings

(453,899

)

3,213,539

Net cash from financing activities

(453,899

)

199,065

(Decrease)/increase in cash and cash equivalents

(173,364

)

224,619

Cash and cash equivalents at beginning of year

2

330,671

106,052

Cash and cash equivalents at end of year

2

157,307

330,671

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

31.3.17

31.3.16

£

£

Profit before taxation

35,116

60,238

Depreciation charges

100,538

293,743

Finance costs

56,227

14,215

191,881

368,196

Decrease/(increase) in trade and other debtors

105,856

(121,003

)

Increase/(decrease) in trade and other creditors

70,350

(57,497

)

Cash generated from operations

368,087

189,696

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 31st March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

157,307

330,671

Year ended 31st March 2016

31.3.16

1.4.15

£

£

Cash and cash equivalents

330,671

106,052

1.	STATUTORY INFORMATION

Silvercrown Care Homes (Swansea) 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

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.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 0, is being amortised evenly over its estimated useful life of nil 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

Plant and machinery

-

12.5% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

20% on cost

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.

3.	EMPLOYEES AND DIRECTORS

31.3.17

31.3.16

£

£

Wages and salaries

2,192,654

1,828,639

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

31.3.17

31.3.16

Care team members

111

132

31.3.17

31.3.16

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.17

31.3.16

£

£

Hire of plant and machinery

4,585

4,673

Depreciation - owned assets

100,538

129,145

Goodwill amortisation

-

165,000

Auditors' remuneration

3,600

3,500

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.17

31.3.16

£

£

Bank loan interest

56,227

14,215

6.

TAXATION

Analysis of the tax charge

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

31.3.17

31.3.16

£

£

Current tax:

UK corporation tax

16,050

44,303

Deferred tax

1,196

51,407

Tax on profit

17,246

95,710

Tax effects relating to effects of other comprehensive income

31.3.16

Gross

Tax

Net

£

£

£

Gain on revaluation of land and building

210,672

-

210,672

Other reserves

4,836,090

-

4,836,090

5,046,762

-

5,046,762

7.	DISTRIBUTABLE RESERVES

As at 31 March 2017, the revaluation of the freehold property totalled £210,672. This is included in the P&L

reserve but is not distributable.

As at 31 March 2017, the excess of the fair value over the par value of the investment in Silvercrown Care

Homes (Swansea) Limited, which totals £4,836,090 is included in the P&L reserve but is not distributable.

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1st April 2016

and 31st March 2017

1,650,000

AMORTISATION

At 1st April 2016

and 31st March 2017

1,650,000

NET BOOK VALUE

At 31st March 2017

-

At 31st March 2016

-

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1st April 2016

4,829,901

928,209

241,099

5,466

6,004,675

Additions

-

15,290

6,861

1,021

23,172

Disposals

-

(13,976

)

-

-

(13,976

)

At 31st March 2017

4,829,901

929,523

247,960

6,487

6,013,871

DEPRECIATION

At 1st April 2016

488,188

905,368

156,217

3,666

1,553,439

Charge for year

51,145

4,865

43,646

882

100,538

At 31st March 2017

539,333

910,233

199,863

4,548

1,653,977

NET BOOK VALUE

At 31st March 2017

4,290,568

19,290

48,097

1,939

4,359,894

At 31st March 2016

4,341,713

22,841

84,882

1,800

4,451,236

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Trade debtors

238,971

166,971

Amounts owed by group undertakings

104,351

3,600

Other debtors

-

175,296

Deferred tax asset

14,616

15,812

Prepayments

8,072

10,632

366,010

372,311

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Trade creditors

114,798

77,499

Amounts owed to group undertakings

485,872

839,021

Tax

16,211

22,290

Social security and other taxes

33,621

13,001

Other creditors

68,981

16,442

Accruals and deferred income

-

54,428

Accrued expenses

136,495

122,175

855,978

1,144,856

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.3.17

31.3.16

value:

£

£

1

Ordinary

1

1

1

13.

RESERVES

Retained

earnings

£

At 1st April 2016

4,009,362

Profit for the year

17,870

At 31st March 2017

4,027,232

14.	RELATED PARTY DISCLOSURES

As at 31 March 2017, the company owed £472,743 to Silvercrown Care Homes Limited. Silvercrown Care

Homes Limited owns the entire share capital of Silvercrown Care Homes ( Swansea) Limited.

As at the 31 March 2017, the company was owed £11,025 from Silvercrown Care Homes (Pontypridd) Limited.

This is a intercompany loan with a company under common control.

As at 31 March 2017, the company was owed £91,088 from Hallmark Care Homes Group Holdings Limited, the

previous owners of the company.

As at 31 March 2017, the entire share capital of the company is owned by Silvercrown Care Homes Limited.

Silvercrown Care Homes Limited is the ultimate controlling party.