Company Registration No. 02263928 (England and Wales)
RAYNERS (EXTRA CARE HOME) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2017
PAGES FOR FILING WITH REGISTRAR
RAYNERS (EXTRA CARE HOME) LIMITED
COMPANY INFORMATION
Directors
Mr J I Matthews
Mrs J M Matthews
Mr C J Matthews
Ms A J Gibbins
Secretary
Mr J I Matthews
Company number
02263928
Registered office
Lynwood House
373-375 Station Road
Harrow, Middlesex
HA1 2AW
Accountants
RDP Newmans LLP
Lynwood House
373-375 Station Road
Harrow, Middlesex
HA1 2AW
Business address
Weedon Hill
Hyde Heath
Amersham
Buckinghamshire
HP6 5UH
Bankers
National Westminster Bank Plc
Hill Avenue
Amersham
Buckinghamshire
HP6 5TD
RAYNERS (EXTRA CARE HOME) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
RAYNERS (EXTRA CARE HOME) LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2017
30 September 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
3
3,308,893
3,271,293
Investments
4
314,240
363,480
3,623,133
3,634,773
Current assets
Stocks
3,143
3,141
Debtors
6
412,255
391,785
Cash at bank and in hand
57,372
91,229
472,770
486,155
Creditors: amounts falling due within one year
7
(674,316)
(627,263)
Net current liabilities
(201,546)
(141,108)
Total assets less current liabilities
3,421,587
3,493,665
Creditors: amounts falling due after more than one year
8
(275,740)
(345,736)
Provisions for liabilities
(230,746)
(304,201)
Net assets
2,915,101
2,843,728
Capital and reserves
Called up share capital
9
200
200
Share premium account
415,956
415,956
Revaluation reserve
10
1,783,203
2,016,326
Profit and loss reserves
715,742
411,246
Total equity
2,915,101
2,843,728
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 30 September 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on 4 April 2018 and are signed on its behalf by:
Mr J I Matthews
Director
Company Registration No. 02263928
RAYNERS (EXTRA CARE HOME) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2017
- 2 -
1
Accounting policies
Company information
Rayners (Extra Care Home) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Lynwood House, 373-375 Station Road, Harrow, Middlesex, HA1 2AW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Going concern
These financial statements have been prepared on the assumption that the company will continue in operational existence for the foreseeable future.
The validity of this assumption depends on the continuing support of the directors, creditors and bankers.
If the company were unable to continue in existence for the foreseeable future, adjustments would be necessary to reduce the balance sheet values of assets to their recoverable amounts, to reclassify fixed assets as current assets and to provide for further liabilities which might arise.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
RAYNERS (EXTRA CARE HOME) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings and equipment
15% reducing balance
Motor vehicles
25% reducing balance
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
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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 for which the estimates of future cash flows have not been adjusted.
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. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
RAYNERS (EXTRA CARE HOME) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
1
Accounting policies
(Continued)
- 4 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
RAYNERS (EXTRA CARE HOME) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
1
Accounting policies
(Continued)
- 5 -
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
The group operates an approved self administered pension scheme on behalf of its directors. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions are governed only to the extent that there is a maximum contribution annually in relation to the members' salaries, there is no minimum contribution requirement.
The company
also
operates
a
defined contribution scheme for the benefit of its
employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
RAYNERS (EXTRA CARE HOME) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
1
Accounting policies
(Continued)
- 6 -
1.15
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 61 (2016 - 58).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 October 2016
3,168,652
499,957
3,668,609
Additions
15,375
126,437
141,812
Disposals
-
(20,970)
(20,970)
At 30 September 2017
3,184,027
605,424
3,789,451
Depreciation and impairment
At 1 October 2016
108,955
288,361
397,316
Depreciation charged in the year
27,773
62,350
90,123
Eliminated in respect of disposals
-
(6,881)
(6,881)
At 30 September 2017
136,728
343,830
480,558
Carrying amount
At 30 September 2017
3,047,299
261,594
3,308,893
At 30 September 2016
3,059,697
211,596
3,271,293
Land and buildings with a carrying amount of
£3,047,298 (2016: £3,059,697)
were revalued at
£3,130,000 in February 2013 by Savills & Co, RICS Registered Valuers
who are
independent valuers not connected with the company
,
on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
In the opinion of directors, there has not been any significant change to the value since then.
4
Fixed asset investments
2017
2016
£
£
Investments
314,240
363,480
RAYNERS (EXTRA CARE HOME) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
4
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 October 2016 & 30 September 2017
552,908
Impairment
At 1 October 2016
189,428
Impairment losses
49,240
At 30 September 2017
238,668
Carrying amount
At 30 September 2017
314,240
At 30 September 2016
363,480
5
Subsidiaries
Details of the company's subsidiaries at 30 September 2017 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Chartridge Park Golf Club Limited
England and Wales
Operation of a golf club
Ordinary
100.00
-
Matthews and Wells Limited
England and Wales
Dormant
Ordinary
100.00
-
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Chartridge Park Golf Club Limited
(13,976)
(39,962)
Matthews and Wells Limited
-
100
RAYNERS (EXTRA CARE HOME) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
- 8 -
6
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
15,217
22,957
Amounts owed by group undertakings
225,271
226,671
Other debtors
171,767
142,157
412,255
391,785
7
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
64,658
63,351
Trade creditors
26,739
37,865
Amounts due to group undertakings
100
100
Corporation tax
6,659
25,968
Other taxation and social security
20,352
20,261
Other creditors
555,808
479,718
674,316
627,263
8
Creditors: amounts falling due after more than one year
2017
2016
£
£
Bank loans and overdrafts
253,013
317,561
Other creditors
22,727
28,175
275,740
345,736
The aggregate amount of creditors for which the security has been give
n
amounted to
£275,740
(2016:
£345,736).
Amounts included above which fall due after five years are as follows:
Payable by instalments
113,632
129,850
9
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
200 Ordinary shares of £1 each
200
200
RAYNERS (EXTRA CARE HOME) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
- 9 -
10
Revaluation reserve
2017
2016
£
£
At beginning of year
2,016,326
2,018,133
Transfer to retained earnings
(233,123)
(1,807)
At end of year
1,783,203
2,016,326
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2017
2016
£
£
224,926
283,423
12
Related party transactions
Rayners (Extra Care Home) Limited has provided loan facilities to MWT International (Holdings) SRL, a company formed in Romania and in which Mr J I Matthews and Mr C J Matthews are shareholders. The loans are secured by way of a first legal charge on Hotel Victoria, a property owned by MWT International (Holdings) SRL. The loans were repayable on or before 30 June 2011. However, the loans could be withdrawn at any time providing 90 days written notice is given. Included within other debtors is an amount of £131,803 (2016: £114,768) due from MWT International (Holdings) SRL. As in previous years, no interest is charged on this loan during the year.
During the year Rayners (Extra Care Home) Limited paid rent of £32,400 (2016: £32,400) to Rayners (Extra Care Home) Limited Pension Scheme, a self administered pension scheme operated for the benefit of the directors of the company.
During the year £16,680 (2016: £3,456) was paid to Chartridge Golf Club Limited for gardening services. Included within other debtors is an amount of £225,271 (2016: £226,671) due from Chartridge Golf Club Limited, a subsidiary undertaking.
13
Ultimate controlling party
The ultimate controlling interest is held by the Matthews family.
2017-09-30
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