Silvercrown Care Homes (Swansea) Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05352215 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2018

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 31 March 2018.

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 £49,709

(2017 - £35,115). The shareholders funds total £4,057,967 (2017 - £4,027,233).

The results of the company's performance for the financial year ended 31 March 2018 are encouraging. Turnover has

increased 1.7 % to £3,067,848 and operating profits are £103,580 for the year ended 31 March 2018 compared to a

operating profit of £91,343 for the year ended 31 March 2017.

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 2018, average occupancy rates were 93% compared to 92% for the year ended

31 March 2017.

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

23 November 2018

The directors present their report with the financial statements of the company for the year ended 31 March 2018.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2017 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

23 November 2018

Opinion

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

ended 31 March 2018 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 2018 and of 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.

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and 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 there is a material misstatement in the financial

statements or a material misstatement of the other information. 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.

Opinion 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 Directors 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 Directors 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 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.

Responsibilities of directors

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, 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.

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.

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

23 November 2018

Turnover

3,067,848

3,016,674

Cost of sales

209,036

229,282

Gross profit

2,858,812

2,787,392

Administrative expenses

2,755,232

2,696,049

Operating profit

4

103,580

91,343

Interest payable and similar expenses

5

53,871

56,227

Profit before taxation

49,709

35,116

Tax on profit

6

18,974

17,246

Profit for the financial year

30,735

17,870

Profit for the year

30,735

17,870

Other comprehensive income

-

-

Total comprehensive income for the year

30,735

17,870

Fixed assets

Intangible assets

8

-

-

Tangible assets

9

4,286,796

4,359,894

4,286,796

4,359,894

Current assets

Debtors

10

700,989

366,010

Cash at bank and in hand

255,596

157,307

956,585

523,317

Creditors

Amounts falling due within one year

11

528,729

855,978

Net current assets/(liabilities)

427,856

(332,661

)

Total assets less current liabilities

4,714,652

4,027,233

Creditors

Amounts falling due after more than one year

12

656,684

-

Net assets

4,057,968

4,027,233

Capital and reserves

Called up share capital

15

1

1

Retained earnings

16

4,057,967

4,027,232

Shareholders' funds

4,057,968

4,027,233

The financial statements were approved by the Board of Directors on 23 November 2018 and were signed on its behalf by:

Dr B P Choudhary - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2016

1

4,009,362

4,009,363

Changes in equity

Total comprehensive income

-

17,870

17,870

Balance at 31 March 2017

1

4,027,232

4,027,233

Changes in equity

Total comprehensive income

-

30,735

30,735

Balance at 31 March 2018

1

4,057,967

4,057,968

Cash flows from operating activities

Cash generated from operations

1

272,409

368,087

Interest paid

(53,871

)

(56,227

)

Tax paid

(16,211

)

(22,129

)

Net cash from operating activities

202,327

289,731

Cash flows from investing activities

Purchase of tangible fixed assets

(24,527

)

(23,172

)

Sale of tangible fixed assets

-

13,976

Net cash from investing activities

(24,527

)

(9,196

)

Cash flows from financing activities

Amount owed to group undertakings

(79,511

)

(453,899

)

Net cash from financing activities

(79,511

)

(453,899

)

Increase/(decrease) in cash and cash equivalents

98,289

(173,364

)

Cash and cash equivalents at beginning of year

2

157,307

330,671

Cash and cash equivalents at end of year

2

255,596

157,307

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

31.3.18

31.3.17

£

£

Profit before taxation

49,709

35,116

Depreciation charges

97,626

100,538

Finance costs

53,871

56,227

201,206

191,881

Decrease in trade and other debtors

10,077

105,856

Increase in trade and other creditors

61,126

70,350

Cash generated from operations

272,409

368,087

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 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

255,596

157,307

Year ended 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

157,307

330,671

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.

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

31.3.18

31.3.17

£

£

Wages and salaries

2,319,431

2,192,654

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

31.3.18

31.3.17

Care team members

141

111

31.3.18

31.3.17

£

£

Directors' remuneration

36,000

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.18

31.3.17

£

£

Hire of plant and machinery

3,671

4,585

Depreciation - owned assets

97,625

100,538

Auditors' remuneration

6,000

3,600

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.18

31.3.17

£

£

Bank loan interest

53,871

56,227

6.

TAXATION

Analysis of the tax charge

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

31.3.18

31.3.17

£

£

Current tax:

UK corporation tax

18,437

16,050

Deferred tax

537

1,196

Tax on profit

18,974

17,246

7.	DISTRIBUTABLE RESERVES

As at 31 March 2018, 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 2018, 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 1 April 2017

and 31 March 2018

1,650,000

Amortisation

At 1 April 2017

and 31 March 2018

1,650,000

Net book value

At 31 March 2018

-

At 31 March 2017

-

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

Cost

At 1 April 2017

4,829,901

929,523

247,960

6,487

6,013,871

Additions

-

11,716

7,717

5,094

24,527

At 31 March 2018

4,829,901

941,239

255,677

11,581

6,038,398

Depreciation

At 1 April 2017

539,333

910,233

199,863

4,548

1,653,977

Charge for year

50,785

4,375

40,148

2,317

97,625

At 31 March 2018

590,118

914,608

240,011

6,865

1,751,602

Net book value

At 31 March 2018

4,239,783

26,631

15,666

4,716

4,286,796

At 31 March 2017

4,290,568

19,290

48,097

1,939

4,359,894

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Trade debtors

205,196

238,971

Amounts owed by group undertakings

449,944

104,351

Deferred tax asset

14,079

14,616

Prepayments

31,770

8,072

700,989

366,010

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Bank loans and overdrafts (see note 13)

46,058

-

Trade creditors

201,832

114,798

Amounts owed to group undertakings

49,213

485,872

Tax

18,437

16,211

Social security and other taxes

41,446

33,621

Other creditors

17,275

68,981

Accrued expenses

154,468

136,495

528,729

855,978

12.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.18

31.3.17

£

£

Bank loans (see note 13)

656,684

-

13.

LOANS

An analysis of the maturity of loans is given below:

31.3.18

31.3.17

£

£

Amounts falling due within one year or on demand:

Bank loans

46,058

-

Amounts falling due between one and two years:

Bank loans - 1-2 years

46,058

-

Amounts falling due between two and five years:

Bank loans - 2-5 years

138,175

-

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

472,451

-

14.	SECURED DEBTS

As at 31 March 2018, there were two items of security. Firstly, a cross guarantee and debenture between

Silvercrown Care Homes (Pontypridd) Limited, Silvercrown Care Homes Limited dated 20 November 2015.

Secondly, a charge over Cwrt Enfys home Gorof Road, Ystradgynlais, Swansea, West Glamorgan SA9 1DS on

the banks standard form dated 28 April 2014.