Molescroft Nursing Home (Holdings) Ltd - Limited company accounts 17.3

REGISTERED NUMBER: 03359871 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 January 2017

for

Molescroft Nursing Home (Holdings) Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Statement of Financial Position

8

Statement of Changes in Equity

9

Statement of Cash Flows

10

Notes to the Statement of Cash Flows

11

Notes to the Financial Statements

12

DIRECTORS:

B Marwah

Dr R K Awan

SECRETARY:

Mrs B Marwah

REGISTERED OFFICE:

Suite 1

The Riverside Building

Livingstone Road

Hessle

East Yorkshire

HU13 0DZ

REGISTERED NUMBER:

03359871 (England and Wales)

SENIOR STATUTORY AUDITOR:

Richard D Lacey

AUDITORS:

Harris Lacey and Swain

Chartered Accountants and Statutory Auditors

Suite 1

The Riverside Building

Hessle

East Yorkshire

HU13 0DZ

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

REVIEW OF BUSINESS

The year to 31 January 2017 was another successful one for the company. The Holy Name Nursing Home in Hull

continued to grow and Beverley Grange also reflected a pleasing growth in income. The company continues to invest in

the infrastructure of the homes to ensure that the quality of provision remains high.

PRINCIPAL RISKS AND UNCERTAINTIES

The Social Care industry is undergoing many changes and public funding remains a major issue. However the directors,

through the company's investment in maintaining the highest possible standards of care and facilities, remain optimistic

about the future of the company and consider it to be well placed in what is becoming an increasing competitive

industry.

ON BEHALF OF THE BOARD:

Dr R K Awan - Director

11 January 2018

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

DIVIDENDS

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 February 2016 to the date of this

report.

B Marwah

Dr R K Awan

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), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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

The auditors, Harris Lacey and Swain, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Dr R K Awan - Director

11 January 2018

We have audited the financial statements of Molescroft Nursing Home (Holdings) Ltd for the year ended

31 January 2017 on pages six to seventeen. 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 three, 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.

Opinion on financial statements

In our opinion the financial statements:

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

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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

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.

Richard D Lacey (Senior Statutory Auditor)

for and on behalf of Harris Lacey and Swain

Chartered Accountants and Statutory Auditors

Suite 1

The Riverside Building

Hessle

East Yorkshire

HU13 0DZ

11 January 2018

TURNOVER

3,791,745

3,668,514

Cost of sales

2,431,922

2,412,012

GROSS PROFIT

1,359,823

1,256,502

Administrative expenses

785,502

793,061

574,321

463,441

Other operating income

-

44,399

OPERATING PROFIT

4

574,321

507,840

Interest payable and similar expenses

5

128,788

135,654

PROFIT BEFORE TAXATION

445,533

372,186

Tax on profit

6

121,411

133,432

PROFIT FOR THE FINANCIAL YEAR

324,122

238,754

PROFIT FOR THE YEAR

324,122

238,754

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

324,122

238,754

FIXED ASSETS

Tangible assets

8

7,891,344

8,078,764

CURRENT ASSETS

Debtors

9

122,513

198,600

Cash at bank and in hand

155,964

-

278,477

198,600

CREDITORS

Amounts falling due within one year

10

1,375,871

1,370,476

NET CURRENT LIABILITIES

(1,097,394

)

(1,171,876

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,793,950

6,906,888

CREDITORS

Amounts falling due after more than one year

11

(4,336,354

)

(4,776,366

)

PROVISIONS FOR LIABILITIES

14

(536,855

)

(533,903

)

NET ASSETS

1,920,741

1,596,619

CAPITAL AND RESERVES

Called up share capital

15

50,004

50,004

Revaluation reserve

16

64,205

64,205

Retained earnings

16

1,806,532

1,482,410

SHAREHOLDERS' FUNDS

1,920,741

1,596,619

The financial statements were approved by the Board of Directors on 11 January 2018 and were signed on its behalf by:

Dr R K Awan - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2015

50,004

1,307,661

2,912,985

4,270,650

Changes in equity

Dividends

-

(2,912,785

)

-

(2,912,785

)

Total comprehensive income

-

3,087,534

(2,848,780

)

238,754

Balance at 31 January 2016

50,004

1,482,410

64,205

1,596,619

Changes in equity

Total comprehensive income

-

324,122

-

324,122

Balance at 31 January 2017

50,004

1,806,532

64,205

1,920,741

Cash flows from operating activities

Cash generated from operations

1

891,300

710,524

Interest paid

(128,788

)

(135,654

)

Tax paid

(126,605

)

(41,711

)

Net cash from operating activities

635,907

533,159

Cash flows from investing activities

Purchase of tangible fixed assets

(14,058

)

(5,471

)

Sale of tangible fixed assets

-

116,729

Sale of investment property

-

1,848,780

Net cash from investing activities

(14,058

)

1,960,038

Cash flows from financing activities

New loans in year

-

500,000

Loan repayments in year

(440,012

)

(422,148

)

Amount introduced by directors

-

481,959

Amount withdrawn by directors

(12,656

)

(72,113

)

Equity dividends paid

-

(2,912,785

)

Net cash from financing activities

(452,668

)

(2,425,087

)

Increase in cash and cash equivalents

169,181

68,110

Cash and cash equivalents at beginning of year

2

(13,217

)

(81,327

)

Cash and cash equivalents at end of year

2

155,964

(13,217

)

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

2017

2016

£

£

Profit before taxation

445,533

372,186

Depreciation charges

201,478

205,683

Finance costs

128,788

135,654

775,799

713,523

Decrease in trade and other debtors

76,087

69,780

Increase/(decrease) in trade and other creditors

39,414

(72,779

)

Cash generated from operations

891,300

710,524

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 January 2017

31.1.17

1.2.16

£

£

Cash and cash equivalents

155,964

-

Bank overdrafts

-

(13,217

)

155,964

(13,217

)

Year ended 31 January 2016

31.1.16

1.2.15

£

£

Cash and cash equivalents

-

14,144

Bank overdrafts

(13,217

)

(95,471

)

(13,217

)

(81,327

)

1.	STATUTORY INFORMATION

Molescroft Nursing Home (Holdings) 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 as modified by the revaluation of certain assets.

Turnover

Turnover represents net invoiced fees, excluding value added tax.

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 or revaluation excluding land

Fixtures and Fittings - 15% on reducing balance

Computer equipment - 25% on reducing balance

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 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 statement of financial position date.

Deferred tax

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

statement of financial position 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.

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

2017

2016

£

£

Wages and salaries

2,145,736

2,111,988

Social security costs

141,079

136,872

Other pension costs

16,629

16,027

2,303,444

2,264,887

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

2017

2016

Management & Administration

4

11

Nursing & Care

100

118

Support

47

30

151

159

2017

2016

£

£

Directors' remuneration

78,162

80,412

4.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Depreciation - owned assets

201,478

205,683

Auditors' remuneration

6,300

6,000

Auditors' remuneration for non audit work

31,231

31,788

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Bank interest & charges

128,788

135,654

6.

TAXATION

Analysis of the tax charge

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

2017

2016

£

£

Current tax:

UK corporation tax

118,459

131,808

Deferred tax

2,952

1,624

Tax on profit

121,411

133,432

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:

2017

2016

£

£

Profit before tax

445,533

372,186

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2016 - 20%)

89,107

74,437

Effects of:

Expenses not deductible for tax purposes

-

13,198

Depreciation in excess of capital allowances

29,352

31,102

Adjustments to tax charge in respect of previous periods

-

12,175

Change in standard rate of tax

-

896

Deferred tax

2,952

1,624

Total tax charge

121,411

133,432

7.

DIVIDENDS

2017

2016

£

£

Ordinary shares of £1 each

Interim

-

2,912,785

8.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 February 2016

8,726,283

516,916

2,115

9,245,314

Additions

-

14,058

-

14,058

At 31 January 2017

8,726,283

530,974

2,115

9,259,372

DEPRECIATION

At 1 February 2016

885,699

278,881

1,970

1,166,550

Charge for year

163,626

37,816

36

201,478

At 31 January 2017

1,049,325

316,697

2,006

1,368,028

NET BOOK VALUE

At 31 January 2017

7,676,958

214,277

109

7,891,344

At 31 January 2016

7,840,584

238,035

145

8,078,764

Freehold property was valued by the directors on an open market basis as part of a corporate reorganisation in

August 2015.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

59,046

148,510

Prepayments and accrued income

63,467

50,090

122,513

198,600

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts (see note 12)

408,536

421,753

Trade creditors

47,187

51,172

Tax

238,917

247,063

Social security and other taxes

35,739

32,948

Other creditors

90,785

28,937

Directors' current accounts

336,944

349,600

Accrued expenses

217,763

239,003

1,375,871

1,370,476

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans (see note 12)

4,336,354

4,776,366

12.

LOANS

An analysis of the maturity of loans is given below:

2017

2016

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

-

13,217

Bank loans

408,536

408,536

408,536

421,753

Amounts falling due between one and two years:

Bank loans - 1-2 years

408,536

408,536

Amounts falling due between two and five years:

Bank loans - 2-5 years

1,101,797

1,153,660

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

2,826,021

3,214,170