REGISTERED NUMBER:
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ADL LEASED HOMES LTD |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 |
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REGISTERED NUMBER:
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ADL LEASED HOMES LTD |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 |
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ADL LEASED HOMES LTD (REGISTERED NUMBER: 02522031) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2020 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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ADL LEASED HOMES LTD |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2020 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants and Statutory Auditors |
26 Main Avenue |
Moor Park |
HA6 2HJ |
ADL LEASED HOMES LTD (REGISTERED NUMBER: 02522031) |
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BALANCE SHEET |
31 MARCH 2020 |
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31.3.20 | 31.3.19 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Stocks |
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Debtors | 5 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 6 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Revaluation reserve | 7 |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Profit & Loss account has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
were signed on its behalf by: |
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ADL LEASED HOMES LTD (REGISTERED NUMBER: 02522031) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2020 |
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1. | STATUTORY INFORMATION |
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ADL Leased Homes Ltd is a
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company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The financial statements have been prepared on the going concern basis which the directors consider to be |
appropriate for the following reasons. |
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The company meets its day to day working capital requirements from cash resources and intercompany balance |
with the parent company. Therefore the going concern assessment of the company is dependent on that of the |
group as a whole. The directors have performed a going concern assessment for a period of 12 months from the |
date of approval of these financial statements which indicate that, taking into account of reasonably possible |
downsides, the company will have sufficient funds through funding from its parent, ADL Plc. The parent has |
indicated its intention to continue to make available such funds as are needed by the company at the balance |
sheet date for 12 months from the date of approval of these financial statements. As with any company placing |
reliance on other group companies for financial support, the directors acknowledge that there can be no certainty |
that this support will continue although, at the date of approval of these financial statements, they have no |
reason to believe that it will not do so. |
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The directors have separately considered the uncertainty as to the future impact of COVID-19 on the ongoing |
concern assessment. To date the impact on the occupancy rates have remained stable, however the directors |
cannot predict the longer term impact of the crises. The directors do not consider there to be a material |
uncertainty arising from the specific downside scenario impact of the crises on the company's occupancy levels |
and cashflows. |
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Based on these indications the directors believe that it remains appropriate to prepare the financial statements |
on a going concern basis. |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party |
transactions with wholly owned subsidiaries within the group. |
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Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies the directors are required to make judgements, estimates |
and assumptions about the carrying value of assets and liabilities that are not readily apparent from other |
sources. The estimates and associated assumptions are based on historical experience and other factors that |
are considered to be relevant. Actual results may differ from these estimates. |
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The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting |
estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in |
the period of the revision and future periods if the revision affects both current and future periods. |
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The following are the key sources of estimation uncertainty that the directors have assessed as being applicable |
to the company and that the most significant effect on the amounts recognised in the financial statements. It is |
deemed that there are no critical accounting judgements. |
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Valuation of leasehold property |
The valuation method of leasehold property is considered most likely to have a risk of causing a material |
adjustment to the carrying amounts of assets and liabilities within the next financial year. In order to provide an |
up-to-date accurate valuation an external valuer is contracted to value the property; the latest valuation was |
undertaken 30 September 2019. In future periods, the directors will continue to review the carrying value of the |
property to ensure it remains in line with its fair value. |
ADL LEASED HOMES LTD (REGISTERED NUMBER: 02522031) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Turnover |
Turnover represents fee income receivable from care services provided. Turnover is recognised in the year in |
which the company obtains the right to consideration as the services provided under contracts have been |
delivered and is recorded art the value of the consideration due. Where payments are received from customers |
in advance of services provided, the amounts are recorded as deferred income and included as part of creditors. |
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Turnover wholly arises within the United Kingdom. |
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Tangible fixed assets |
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Short leasehold | - |
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Improvements to property | - |
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Fixtures and fittings | - |
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Tangible fixed assets, are initially measured at historic cost and subsequently carried at cost less accumulated |
depreciation and any accumulated impairment losses. All costs incurred to bring an asset into its intended |
working condition are included in the measurement of cost. The cost of properties is their purchases price |
together with the cost of improvement works. |
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The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each |
reporting period. The effect of any change is accounted for prospectively. |
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Tangible assets (not including leasehold property) are stated at cost less accumulated depreciation and |
accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing |
the asset to its working condition for its intended use. |
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Leasehold property is originally stated at deemed cost held at valuation at the date of transition to FRS 102. |
Leasehold property is subsequently held at their latest revaluation amount less any accumulated depreciation |
and accumulated impairment losses. Revaluation gains and losses are taken to a revaluation reserve within |
equity and reported as other comprehensive income. Revaluation loss is taken to the revaluation reserve to the |
extent that there is a surplus on the revaluation reserve. Any excess of the loss over the surplus is taken to the |
profit and loss account. Revaluations shall be made with sufficient regularity to ensure that the carrying amount |
does not differ materially from that which would be determined using fair value at the end of the reporting period. |
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Impairment of fixed 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. |
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If an impairment loss subsequently reverses, the carry 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. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and |
slow moving items. |
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Basic financial instruments |
a) Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured |
initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the |
effective interest method, less any impairment. |
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b) Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, |
are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost |
using the effective interest method. |
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c) Cash at bank and in hand |
Cash and cash equivalents comprise cash balances and call deposits and petty cash. |
ADL LEASED HOMES LTD (REGISTERED NUMBER: 02522031) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit & Loss account, except |
to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
balance sheet date. |
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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. |
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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. |
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Pension costs |
As of 1 April 2013 it became a statutory requirement to enrol all eligible staff into a workplace pension scheme. |
Employees are enrolled in the NEST Pension Scheme, an independently administered scheme, and is a defined |
contribution pension scheme. The employee can choose to "opt out" of the scheme after they have been |
auto-enrolled, this opt out lasts for three years, after which time the company will be required to re-enrol the |
employee. The company is required to make employer contributions of the employee's qualifying salary to the |
NEST Pension Scheme. The pension costs represents contributions payable under the scheme and the |
company has no liability under the scheme other than for the payment of those contributions. |
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Contributions outstanding at the balance sheet date amounted to £3,955 (2019 - £1,995). |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
Short | to | and |
leasehold | property | fittings | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2019 |
and 31 March 2020 |
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DEPRECIATION |
At 1 April 2019 |
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Charge for year |
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At 31 March 2020 |
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NET BOOK VALUE |
At 31 March 2020 |
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At 31 March 2019 |
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ADL LEASED HOMES LTD (REGISTERED NUMBER: 02522031) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2020 |
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4. | TANGIBLE FIXED ASSETS - continued |
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Cost or valuation at 31 March 2020 is represented by: |
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Improvements | Fixtures |
Short | to | and |
leasehold | property | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2017 | 31,500 | - | - | 31,500 |
Cost | 568,500 | 79,600 | 209,778 | 857,878 |
600,000 | 79,600 | 209,778 | 889,378 |
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If leasehold buildings had not been revalued they would have been included at the following historical cost: |
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31.3.20 | 31.3.19 |
£ | £ |
Cost | 23,484 | 23,484 |
Aggregate depreciation | 2,816 | 2,347 |
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Leasehold buildings were valued on without re-inspection basis on 30 September 2019 by Martin Robb BSc FRICS of Cushwake |
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At the reporting date, the directors consider that the carrying value of leasehold property to be in line with open |
market expectations. |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.20 | 31.3.19 |
£ | £ |
Trade debtors |
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Amounts owed by group undertaking |
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Amounts owed by participating interests | - | 7,052 |
Other debtors |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.20 | 31.3.19 |
£ | £ |
Trade creditors |
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Amounts owed to participating interests | - | 127,679 |
Taxation and social security |
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Other creditors |
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7. | RESERVES |
Revaluation |
reserve |
£ |
At 1 April 2019 |
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Deferred tax | (6,506 | ) |
Depreciation of leasehold property | (69,124 | ) |
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At 31 March 2020 |
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ADL LEASED HOMES LTD (REGISTERED NUMBER: 02522031) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2020 |
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8. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Auditors' Report was unqualified. |
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for and on behalf of
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9. | CONTINGENT LIABILITIES |
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The group's bank loans, as held by ADL plc, are secured by legal mortgages, and fixed and floating charges |
over the group's assets, being the group's properties, book debts, plant and machinery and other assets and the |
business undertakings. The company has guaranteed these borrowings. The extent of the group's liability at 31 |
March 2020 was £7,172,569 (2019: £7,918,645). The directors consider it to be highly unlikely that any liability |
will crystallise for the company as as a result of this guarantee. |
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10. | RELATED PARTY DISCLOSURES |
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The company has previously entered into a partnership agreement with North Lincolnshire Council (Council) to |
run the care homes of The Willows, Warley House and Cherry Tree. During the reporting period, the company |
generated the Council earnings of £120,000 (2019: £120,000). At the reporting date, the company owed the |
Council £nil (2019: £84,851). |
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11. | POST BALANCE SHEET EVENTS |
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The adverse impact of Covid-19 globally, nationally and across the care home sector has been, and continues to |
be, unprecedented. There remains significant uncertainty as to both the duration and quantum of Covid-19's |
effects on the company's business and the extent to which the company may benefit financially from support |
from central and local government. As such, there is a wide range of potential outcomes for the company's cash |
flows from the impact from Covid-19. The directors have considered the company's current key performance |
indicators to identify and quantify the potential impact of Covid-19 on the company's cash flows, although the |
actual impact could be materially different. |
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12. | ULTIMATE CONTROLLING PARTY |
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The ultimate parent undertaking and controlling party is ADL plc (a public limited company incorporated in |
England and Wales). ADL plc is both the smallest and largest group the consolidated financial statements are |
drawn up. The registered office address of ADL plc is c/o Woodlands Of Woolley Residential Home, Woolley, |
Low Moor Lane, Woolley, Wakefield, England, WF4 2LN. Copies of ADL plc financial statements to 31 March |
2020 may be obtained from the registered office address. |
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There has been no change between the reporting date and date of approval of the financial statements. |