Cream I Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06528178 (England and Wales)

CREAM I LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

S M Davey

REGISTERED OFFICE:

Norman's

Longrun Lane

Bishops Hull

Taunton

Somerset

TA1 5AY

REGISTERED NUMBER:

06528178 (England and Wales)

ACCOUNTANTS:

Mark Holt & Co Limited

Chartered Accountants

7 Sandy Court

Ashleigh Way

Langage Business Park

Plymouth

Devon

PL7 5JX

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

300,007

324,068

300,007

324,068

CURRENT ASSETS

Stocks

5,261

4,486

Debtors

6

416,261

1,200,468

Cash in hand

656

1,018

422,178

1,205,972

CREDITORS

Amounts falling due within one year

7

321,669

1,253,609

NET CURRENT ASSETS/(LIABILITIES)

100,509

(47,637

)

TOTAL ASSETS LESS CURRENT LIABILITIES

400,516

276,431

PROVISIONS FOR LIABILITIES

23,000

25,000

NET ASSETS

377,516

251,431

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

377,416

251,331

SHAREHOLDERS' FUNDS

377,516

251,431

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2018 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director on 24 January 2019 and were signed by:

S M Davey - Director

1.	STATUTORY INFORMATION

Cream I 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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, net of discounts and value added taxes.

Turnover represents net invoiced specialist care home fees and is recognised per night that a room is occupied.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2009, is being amortised evenly over its estimated useful life of eight years.

Goodwill has historically been subject to an annual impairment review undertaken by the directors, with any permanent

diminution in value taken to the profit and loss account.

Goodwill has now been fully amortised in accordance with the above policy. However, no adjustment has been made to

reflect the continuing value of goodwill inherent in the business.

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 the cost less estimated residual value of each

asset over its estimated useful life.

Plant and machinery - 15% Straight line

Fixtures and fittings - 15% on reducing balance

Motor Vehicles - 25% on reducing balance

Computer equipment - 15% on reducing balance

Tangible fixed assets are recognised initially at cost and subsequently at cost less accumulated depreciation and any

impairment losses.

No depreciation is provided on improvements to property because the directors believe that the residual values are

considered to be high due in part because the property is subject to a repair and maintenance programme and they are

unlikely to suffer from technological or economic obsolescence. Accordingly, the directors consider that the depreciation

charge for the year and on a cumulative basis is immaterial. This departure from the requirements of Companies Act 2006

for all properties to be depreciated, is, in the opinion of the directors, necessary for the financial statements to give a true

and fair view.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have

suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset

is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is

reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its

recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been

recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at the transaction price.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving

items.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past

reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of

deferred tax liabilities or other future taxable profits. If and when all conditions for retaining tax allowances for the cost of a

fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting

date that are expected to apply to the reversal of the timing difference.

The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the

transaction that resulted in the tax expense (income).

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under

purchase contracts are depreciated over their estimated usual lives. Those held under finance leases are depreciated over

their estimated useful lives or their 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.

Provision for liabilities

Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event; it is

probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be

estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at

the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is

recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in

profit or loss in the period it arises.

The Company recognises a provision for annual leave accrued by employees for services rendered in the current period, and

which employees are entitled to carry forward and use within the next 12 months, measured at the salary cost payable for

the period of absence.

Employee benefits

Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in

which they are incurred.

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 May 2017

and 30 April 2018

1,710,000

AMORTISATION

At 1 May 2017

and 30 April 2018

1,710,000

NET BOOK VALUE

At 30 April 2018

-

At 30 April 2017

-

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 May 2017

140,588

2,353

404,050

Additions

-

-

8,147

Disposals

-

-

(14,670

)

At 30 April 2018

140,588

2,353

397,527

DEPRECIATION

At 1 May 2017

-

1,280

255,952

Charge for year

-

239

20,755

Eliminated on disposal

-

-

(10,470

)

At 30 April 2018

-

1,519

266,237

NET BOOK VALUE

At 30 April 2018

140,588

834

131,290

At 30 April 2017

140,588

1,073

148,098

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 May 2017

83,332

21,373

651,696

Additions

-

-

8,147

Disposals

-

-

(14,670

)

At 30 April 2018

83,332

21,373

645,173

DEPRECIATION

At 1 May 2017

56,786

13,610

327,628

Charge for year

5,926

1,088

28,008

Eliminated on disposal

-

-

(10,470

)

At 30 April 2018

62,712

14,698

345,166

NET BOOK VALUE

At 30 April 2018

20,620

6,675

300,007

At 30 April 2017

26,546

7,763

324,068

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 May 2017

21,300

Transfer to ownership

(21,300

)

At 30 April 2018

-

DEPRECIATION

At 1 May 2017

9,236

Transfer to ownership

(9,236

)

At 30 April 2018

-

NET BOOK VALUE

At 30 April 2018

-

At 30 April 2017

12,064

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

133,589

123,299

Other debtors

282,672

1,077,169

416,261

1,200,468

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

80,523

44,605

Hire purchase contracts

-

4,231

Trade creditors

31,054

31,360

Taxation and social security

49,547

42,817

Other creditors

160,545

1,130,596

321,669

1,253,609

8.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank overdrafts

80,523

44,605

Hire purchase contracts

-

4,231

80,523

48,836

Liabilities owed relating to hire purchase contracts are secured on the assets which they have purchased.

The bank overdraft is secured by a debenture over all of the company's assets.

9.	RELATED PARTY DISCLOSURES

The company has entered into a composite guarantee with Cream Holdings (Taunton) Limited, Cream II Limited, Cream

Developments (Taunton) LLP, Cream III Limited and Cream Residential Care Limited, in respect of its borrowings from

Santander UK PLC. The estate of Stephen Petts holds an interest in each of the above named entities.

10.	ULTIMATE CONTROLLING PARTY

11.	POST BALANCE SHEET EVENTS AND GOING CONCERN

Since the end of the accounting period some uncertainty has arisen regarding the continued involvement of Cream Care

Group Limited in the running and management of Longrun House, which is operated by Cream I Limited.

If Cream Care Group Limited were to withdraw their head office support then there are doubts over the ability of the

Company to continue to operate effectively and hence doubts over the applicability of the use of the going concern

assumption in the preparation fo the accounts.

If these accounts were to have been prepared on a break-up basis, then they are unlikely to show a significantly different

position as the majority of assets and all liabilities are short term and their value would be unlikely to change if they had to

be settled in the short term.