REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTIMA CARE LIMITED |
|
Strategic Report, Directors' Report and |
|
Financial Statements |
|
for the Year Ended 31 May 2022 |
|
|
|
|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTIMA CARE LIMITED |
|
Strategic Report, Directors' Report and |
|
Financial Statements |
|
for the Year Ended 31 May 2022 |
|
|
|
|
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Contents of the Financial Statements |
for the year ended 31 May 2022 |
|
|
|
|
|
|
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Directors' Report | 4 |
|
Independent Auditors' Report | 6 |
|
Income Statement | 9 |
|
Other Comprehensive Income | 10 |
|
Balance Sheet | 11 |
|
Statement of Changes in Equity | 12 |
|
Cash Flow Statement | 13 |
|
Notes to the Cash Flow Statement | 14 |
|
Notes to the Financial Statements | 15 |
|
OPTIMA CARE LIMITED |
|
Company Information |
for the year ended 31 May 2022 |
|
|
|
|
|
|
|
Directors: |
|
|
|
|
|
|
|
Registered office: |
|
|
|
|
|
|
|
|
|
Registered number: |
|
|
|
|
|
|
Auditors: |
|
Chartered Accountants and Statutory Auditor |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Strategic Report |
for the year ended 31 May 2022 |
|
|
The directors present their Strategic Report for the year ended 31 May 2022 |
|
The purpose of the Strategic Report is to inform shareholders and help them assess how the directors have performed their duties to promote the success of the Company. The report, together with the further information in the Directors' Report, provides: |
|
A fair and balanced review of the Company's business including; |
- the development and performance of the Company's business during the financial year; |
- the position of the Company at the end of the year. |
|
A description of the principal risks and uncertainties facing the Company. |
|
Review of business |
The Company's principal activity during the year continues to be that of a provider of specialist healthcare for intellectual disabilities in residential and community homes. |
|
Principal risks and uncertainties |
The Board considers the primary risk to be associated with continued funding pressures from the commissioning authorities, specifically Local Authorities who are under the greatest budgetary constraints. However, the Board are confident of the Company's reputation and market position to take advantage of increasing market demand for its services in specialist service areas. |
|
Overall, the organisation continues to trade as expected through service reconfigurations as well as difficult economic environments. |
|
The Board remains optimistic that the organisation provides key service offerings in Intellectual Disability and Mental Health Services to both health and social care commissioners, continuing to meet demand. |
|
Development and financial performance during the period |
The results for the year which are set out in the Income Statement, show a loss before tax of £1,470,686 compared to a loss of £164,287 for 2021. |
|
The organisation continues to meet all of its financial and statutory obligations; this is achieved through strong financial controls, specifically around cashflow and working capital. This will continue to be the prevailing position over the coming years as Health and Social Care funders look to reduce their budgets under central government austerity measures. The Board will continue to operate an integrated governance framework to ensure it continues to meet its quality of care and maintain this as a primary objective during the next financial period. |
|
During the year, the Company has encountered issues identified in Care Quality Commission (CQC) reports, which has led to some of the locations being archived and still remains archived at the date of the audit report being signed. |
|
The Company has appointed Michael Robert Lingens on the Board of Directors for a related entity, Optima HCI Limited. His extensive background and experience within the care homes sector has helped the directors with key decisions being made. |
|
The financial position of the Company at the period end |
At the year end the Company had a post-tax loss for the year of £1,318,422 (2021: £296,538) and a decrease in the surplus on shareholders' funds from £2,004,985 to £686,563. The Company generated a cash deficit from operations of £594,034 (2021: surplus of £191,324) and invested £66,472 (2021: £136,067) in fixed assets. |
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Strategic Report |
for the year ended 31 May 2022 |
|
Key performance indicators |
Management use a range of performance measures to monitor and manage the business. |
|
Given the nature of the business the directors are of the opinion that a detailed analysis using KPI's is not necessary for the understanding of the development, performance or position of the business. |
|
The key financial highlights are as follows: |
Year to | Year to |
2022 | 2021 |
£ | £ |
Turnover | 4,712,996 | 8,233,644 |
Gross profit margin | 19.58% | 21.12% |
EBITDA | (367,005 | ) | 830,326 |
Profit/(loss) before taxation | (1,470,686 | ) | (164,287 | ) |
Shareholders' funds | 686,563 | 2,004,985 |
|
Future developments |
The external environment is expected to remain competitive going forward and the directors remain determined to maintain profitability to acceptable levels. |
|
Financial instruments |
Financial instruments comprise of cash and working capital, i.e. the trade debtors and trade creditors that arise during the course of the day to day business. This can result in a liquidity risk. The liquidity risk is controlled by maintaining a healthy balance between the debtors and creditors. The debtors risk is controlled through a stringent credit control policy and regular monitoring of any outstanding amounts for both time and credit limits. Trade creditor liquidity risks are managed by ensuring that sufficient funds are available to meet amounts as and when they fall due and in accordance with payment terms agreed. The Company has banking facilities in place with Coutts Bank and operates within its facility limits. |
|
On behalf of the board: |
|
|
|
|
|
|
|
|
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Directors' Report |
for the year ended 31 May 2022 |
|
|
The directors present their report with the financial statements of the Company for the year ended 31 May 2022. |
|
Dividends |
No dividends will be distributed for the year ended 31 May 2022. |
|
Directors |
The directors shown below have held office during the whole of the period from 1 June 2021 to the date of this report. |
|
|
|
|
Political donations and expenditure |
Donations of £1,213 (2021: £1,008) were made during the year, none of which were political in nature. |
|
Disclosure in the strategic report |
As permitted by paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, certain matters which are required to be disclosed in the Directors' Report have been omitted as they are included in the Strategic Report. These matters relate to financial instruments and future developments. |
|
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Directors' Report 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. |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Directors' Report |
for the year ended 31 May 2022 |
|
|
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. |
|
On behalf of the board: |
|
|
|
|
|
|
|
Independent Auditors' Report to the Members of |
Optima Care Limited |
|
|
Opinion |
We have audited the financial statements of Optima Care Limited (the 'Company') for the year ended 31 May 2022 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 May 2022 and of its loss 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
|
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
|
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
|
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 this gives rise to a material misstatement in the financial statements themselves. 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. |
|
Opinions 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Optima Care Limited |
|
|
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 Directors' Report. |
|
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, 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 an Auditors' Report 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. |
|
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
|
We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
|
During the audit we focused on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. |
|
Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
Independent Auditors' Report to the Members of |
Optima Care Limited |
|
|
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
|
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 Auditors' Report. |
|
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 an Auditors' Report 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. |
|
|
|
|
|
for and on behalf of
|
Chartered Accountants and Statutory Auditor |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
|
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Income Statement |
for the year ended 31 May 2022 |
|
2022 | 2021 |
Notes | £ | £ |
|
Turnover | 3 |
|
|
|
Cost of sales | ( |
) | ( |
) |
Gross profit |
|
|
|
Administrative expenses | ( |
) | ( |
) |
(1,322,833 | ) | (398,418 | ) |
|
Other operating income |
|
|
Operating (loss)/profit | ( |
) |
|
|
Interest receivable and similar income |
|
|
(1,158,501 | ) | 46,766 |
|
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
Loss before taxation | 7 | ( |
) | ( |
) |
|
Tax on loss | 8 |
|
( |
) |
Loss for the financial year | ( |
) | ( |
) |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Other Comprehensive Income |
for the year ended 31 May 2022 |
|
2022 | 2021 |
Notes | £ | £ |
|
Loss for the year | ( |
) | ( |
) |
|
|
Other comprehensive income | - | - |
Total comprehensive income for the year | ( |
) | ( |
) |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Balance Sheet |
31 May 2022 |
|
2022 | 2021 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 9 |
|
|
Tangible assets | 10 |
|
|
Investments | 11 |
|
|
|
|
|
Current assets |
Debtors | 12 |
|
|
Cash at bank and in hand |
|
|
|
|
Creditors |
Amounts falling due within one year | 13 |
|
|
Net current (liabilities)/assets | ( |
) |
|
Total assets less current liabilities |
|
|
|
Creditors |
Amounts falling due after more than one
year |
14 |
( |
) |
( |
) |
|
Provisions for liabilities | 19 | ( |
) | ( |
) |
Net assets |
|
|
|
Capital and reserves |
Called up share capital | 20 |
|
|
Retained earnings | 21 |
|
|
Shareholders' funds |
|
|
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
|
|
|
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Statement of Changes in Equity |
for the year ended 31 May 2022 |
|
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
|
Balance at 1 June 2020 |
|
|
|
|
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 May 2021 |
|
|
|
|
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 May 2022 |
|
|
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Cash Flow Statement |
for the year ended 31 May 2022 |
|
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
|
Interest paid | ( |
) | ( |
) |
Tax paid |
|
( |
) |
Net cash from operating activities | ( |
) |
|
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Fixed asset receipts |
|
|
Interest received |
|
|
Net cash from investing activities | ( |
) | ( |
) |
|
Cash flows from financing activities |
Net loan repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 18,804 | 48,112 |
Amount withdrawn by directors | - | (31,811 | ) |
Government grant |
|
|
Net cash from financing activities |
|
( |
) |
|
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of
year |
2 |
|
1,671,600 |
|
Cash and cash equivalents at end of year | 2 | 914,523 | 1,459,345 |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Cash Flow Statement |
for the year ended 31 May 2022 |
|
|
1. | Reconciliation of loss before taxation to cash generated from operations |
2022 | 2021 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
|
|
Loss on disposal of fixed assets |
|
|
Impairment of intangible | - | 71,868 |
Amortisation charges | 446,340 | 446,340 |
Government grants | ( |
) | ( |
) |
Finance costs | 312,185 | 211,053 |
Finance income | (286 | ) | (851 | ) |
(524,518 | ) | 518,207 |
Decrease in trade and other debtors |
|
|
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
|
|
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 May 2022 |
31/5/22 | 1/6/21 |
£ | £ |
Cash and cash equivalents | 914,523 | 1,459,345 |
Year ended 31 May 2021 |
31/5/21 | 1/6/20 |
£ | £ |
Cash and cash equivalents | 1,459,345 | 1,671,600 |
|
|
3. | Analysis of changes in net debt |
|
At 1/6/21 | Cash flow | At 31/5/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,459,345 | (544,822 | ) | 914,523 |
1,459,345 | ( |
) | 914,523 |
Debt |
Debts falling due within 1 year | (1,149,760 | ) | - | (1,149,760 | ) |
Debts falling due after 1 year | (7,673,335 | ) | (60,151 | ) | (7,733,486 | ) |
(8,823,095 | ) | (60,151 | ) | (8,883,246 | ) |
Total | (7,363,750 | ) | (604,973 | ) | (7,968,723 | ) |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements |
for the year ended 31 May 2022 |
|
|
1. | Statutory information |
|
Optima Care 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 financial statements are presented in Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £. |
|
2. | Accounting policies |
|
Basis of preparing the financial statements |
|
|
Set out below is a summary of principal accounting policies, all of which have been consistently applied throughout the year and the preceding year (except as otherwise stated). |
|
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
|
(a) Critical judgements in applying the Company's accounting policies |
The Company makes a number of assessments which require judgement in preparing the accounts and can have a significant effect upon the financial statements. However due to the straight forward nature of the Company's business, management does not believe that there are any judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
|
(b) Key accounting estimates and assumptions |
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
|
i. Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
|
ii. Impairment of tangible assets |
Annually, the Company considers whether tangible assets are impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the future cash flows from the assets along with selection of appropriate discount rates to calculate the net present value of those cash flows. |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
2. | Accounting policies - continued |
|
Turnover |
Turnover relates to services providing residential care activities for the elderly and disabled. It is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
|
Turnover is recognised in line with the services rendered during the period and the contractual agreement between the Company and the client. |
|
Goodwill |
|
|
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 |
|
Freehold property | - |
|
Plant and machinery | - |
|
Fixtures and fittings | - |
|
Motor vehicles | - |
|
|
Freehold property |
Freehold property is held at cost less depreciation. The directors undertake professional valuations when they believe they are required, including when there are indicators of impairment. Impairments of the freehold property assets are written off to the Income Statements in the period in which the impairment is identified. |
|
Fixed asset investments |
Fixed asset investments are held at cost less accumulated impairment losses. |
|
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 Sheetbalance 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. |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
2. | Accounting policies - continued |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contracts are depreciated over their entire useful lives. Those held under finance leases are depreciated over their full useful lives or lease term, whichever is shorter. |
|
The interest element of these obligations is charged to the Income Statement over the relevant period. The capital element of the future payments is treated as a liability. |
|
Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease. |
|
Pension costs and other post-retirement benefits |
The pension costs charged in the financial statements represent the contributions payable by the Company to employees private pension schemes during the year. |
|
Going concern |
These financial statements have been prepared on a going concern basis. |
|
The current economic conditions present increased risks for all businesses and in response to such conditions, the directors have carefully considered these risks including an assessment on uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements and the extent to which they might affect the preparation of the financial statements on a going concern basis. |
|
Based on this and cash flow assessment, the directors consider that the Company maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations and external debt liabilities. The directors have agreed a loan management strategy with Coutts to extend the facility to December 2024 with a Capital Repayment Holiday for the duration to assist with cash flow support. Additionally, the Company has plans to dispose of non-core properties to reduce debt by an estimated £1m. |
|
The Company continues to increase its admissions post year-end off the back of gradual growth post pandemic due to regulatory issues. Following removal of sanctions across a number of sites the Company has been able to increase capacity and continues to receive a high level of enquiries for complex care and supported living. Furthermore, the directors are in discussion with council authority commissioners regarding fee increases for 2023/24 to compensate for higher National Living Wage and cost of living increases. The authorities since confirmed a 6% increase in fees, 3% greater than for 2022/23. Overall, trading is anticipated to improve throughout the next financial year as occupancy averages increase and recruitment fulfilment improves. |
|
In addition, the Company's assets are assessed for recoverability on a regular basis, and the directors consider that the Company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis. |
|
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubts upon the Company's ability to continue as a going concern. Thus, the directors have continued to adopt the going concern basis of accounting in preparing these financial statements. |
|
During the year under review the Company received £138,445 (2021: £383,987) in grant funding under various government and council-led schemes. No further funding is currently expected. |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
2. | Accounting policies - continued |
|
While government guidelines have reduced to a minimum at the year-end in light of the COVID-19 pandemic, the Company are maintaining an active Infection Prevention and Control policy which covers COVID-19 and other air transmissible infections. The directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. The directors have tested their cash flows to take into account the impact on their business of possible scenarios brought on by the impact of pandemic, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
|
Financial instruments |
The Company has chosen to adopt Sections 11 of FRS 102 in respect of financial instruments. |
|
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, 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. |
|
Such assets are subsequently carried at amortised cost using the effective interest method. |
|
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Income Statement. |
|
If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Income Statement. |
|
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. |
|
Such assets are subsequently carried at fair value and the changes in fair value are recognised in the Income Statement, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
|
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
|
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans, loans from other 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 receipts discounted at a market rate of interest. |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
2. | Accounting policies - continued |
|
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
|
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
|
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
|
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
|
3. | Turnover |
|
The turnover and loss before taxation are attributable to the one principal activity of the Company. |
|
The Company's principal turnover is materially of one class only being the specialist healthcare for intellectual disabilities in residential and community homes and the Company has supplied only one market being the United Kingdom. |
|
4. | Employees and directors |
2022 | 2021 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2022 | 2021 |
|
Care and domestic | 131 | 203 |
Administration | 5 | 4 |
|
|
|
5. | Directors' emoluments |
2022 | 2021 |
£ | £ |
Directors' remuneration |
|
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
5. | Directors' emoluments - continued |
|
Information regarding the highest paid director is as follows: |
2022 | 2021 |
£ | £ |
Emoluments etc |
|
|
|
6. | Interest payable and similar expenses |
2022 | 2021 |
£ | £ |
Other interest |
|
|
Loan interest |
|
|
|
|
|
7. | Loss before taxation |
|
The loss is stated after charging: |
|
2022 | 2021 |
£ | £ |
Hire of plant and machinery |
|
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Loss on disposal of fixed assets |
|
|
Goodwill amortisation |
|
|
Auditors' remuneration |
|
|
|
8. | Taxation |
|
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
|
|
Deferred tax | ( |
) | ( |
) |
Tax on loss | ( |
) |
|
|
UK corporation tax was charged at 19%) in 2021. |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
8. | Taxation - continued |
|
Reconciliation of total tax (credit)/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: |
|
2022 | 2021 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of
(2021 - |
( |
) |
( |
) |
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
|
|
Utilisation of tax losses |
|
( |
) |
Deferred tax movement | (11,836 | ) | (5,941 | ) |
Carry forward of tax losses | 22,810 | - |
Total tax (credit)/charge | (152,264 | ) | 132,251 |
|
9. | Intangible fixed assets |
Goodwill |
£ |
Cost |
At 1 June 2021 |
and 31 May 2022 |
|
Amortisation |
At 1 June 2021 |
|
Amortisation for year |
|
At 31 May 2022 |
|
Net book value |
At 31 May 2022 |
|
At 31 May 2021 |
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
10. | Tangible fixed assets |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 June 2021 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
|
|
( |
) | ( |
) |
At 31 May 2022 |
|
|
|
|
|
Depreciation |
At 1 June 2021 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
|
|
( |
) | ( |
) |
At 31 May 2022 |
|
|
|
|
|
Net book value |
At 31 May 2022 |
|
|
|
|
|
At 31 May 2021 |
|
|
|
|
|
|
The directors last undertook an independent professional valuation in 2018. The directors are of the opinion that although market conditions have changed since 2018 the underlying investment value (based on a 1 month marketing period with unconditional sale) has not materially changed and that the market value of the freehold properties remains significantly higher than the net book value of the properties. |
|
Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows: |
Motor |
vehicles |
£ |
Cost |
At 1 June 2021 |
and 31 May 2022 |
|
Depreciation |
At 1 June 2021 |
and 31 May 2022 |
|
Net book value |
At 31 May 2022 |
|
At 31 May 2021 |
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
11. | Fixed asset investments |
Unlisted |
investments |
£ |
Cost |
At 1 June 2021 |
and 31 May 2022 |
|
Net book value |
At 31 May 2022 |
|
At 31 May 2021 |
|
|
12. | Debtors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
13. | Creditors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 15) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
|
14. | Creditors: amounts falling due after more than one year |
2022 | 2021 |
£ | £ |
Bank loans (see note 15) |
|
|
|
15. | Loans |
|
An analysis of the maturity of loans is given below: |
|
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
15. | Loans - continued |
2022 | 2021 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
|
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
|
16. | Leasing agreements |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
17. | Secured debts |
|
The following secured debts are included within creditors: |
|
2022 | 2021 |
£ | £ |
Bank loans |
|
|
|
The bank loans all relate to loans held with Coutts bank, which expire in September 2023. |
|
During the year the loan agreement with Coutts attracted interest at a rate of between 2.72513% and 3.3122% per annum. |
|
The loan facilities from Coutts were secured by a debenture over all the assets of the Company, including, first and legal charges over the freehold properties and personal guarantees by the directors. |
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
18. | Financial instruments |
|
The Company’s financial instruments may be analysed as follows: |
2022 | 2021 |
£ | £ |
Financial assets |
|
Financial assets that are debt instruments measured at amortised cost | 1,896,984 | 2,635,919 |
|
Financial assets that are equity instruments measured at cost less
impairment |
1 |
|
1 |
|
1,896,985 | 2,635,920 |
|
Financial liabilities |
|
Financial liabilities measured at amortised cost | 10,100,063 | 10,125,826 |
|
Financial assets that are debt instruments measured at amortised cost comprise cash, trade debtors, amounts owed by group undertakings, other debtors and accrued income. |
|
Financial assets that are equity instruments measured at the cost less impairment include investments. |
|
Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, other creditors, accruals and bank loans. |
|
Information regarding the Company's exposure to risks are included in the Strategic Report. |
|
19. | Provisions for liabilities |
2022 | 2021 |
£ | £ |
Deferred tax |
Timing differences on Capital |
Allowances |
|
|
16,613 | 28,411 |
|
Deferred tax |
£ |
Balance at 1 June 2021 |
|
Provided during year | ( |
) |
Balance at 31 May 2022 |
|
OPTIMA CARE LIMITED (REGISTERED NUMBER: 02768075) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2022 |
|
|
20. | Called up share capital |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
|
Ordinary shares | £1 | 100 | 100 |
|
21. | Reserves |
Retained |
earnings |
£ |
|
At 1 June 2021 |
|
Deficit for the year | ( |
) |
At 31 May 2022 |
|
|
22. | Pension commitments |
|
Defined contribution schemes |
2022 | 2021 |
£ | £ |
Charge to the Income Statement in respect of defined contribution schemes | 42,489 | 57,012 |
|
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. |
|
23. | Related party disclosures |
|
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. |
|
During the year, a total of key management personnel compensation of £
|
|
The above includes all remuneration including the cash equivalent of benefits received, pension payments made and employer national insurance contributions paid on key management personnel salaries during the year. |
|
24. | Ultimate controlling party |
|
The immediate parent of the Company is Optima Care Holdings Limited, a company incorporated in England and Wales. |
|
The ultimate controlling party is Mr E Coombes. |