Company Registration No. 02934020 (England and Wales)
YEWCARE LIMITED
Financial statements
For the year ended 31 December 2019
Pages for filing with registrar
YEWCARE LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
YEWCARE LIMITED
STATEMENT OF FINANCIAL POSITION
As at 31 December 2019
2019
2018
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
4
1,364,855
1,367,144
Current assets
Trade and other receivables
5
81,617
98,982
Cash and cash equivalents
163,409
564,915
245,026
663,897
Current liabilities
6
(102,528)
(101,083)
Net current assets
142,498
562,814
Total assets less current liabilities
1,507,353
1,929,958
Non-current liabilities
7
-
(215,494)
Provisions for liabilities
(93,717)
(92,502)
Net assets
1,413,636
1,621,962
Equity
Called up share capital
9
2
2
Retained earnings
1,413,634
1,621,960
Total equity
1,413,636
1,621,962
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
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 05 June 2020 and are signed on its behalf by:
..............................
K Mudd
Director
Company Registration No. 02934020
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YEWCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2019
1
Accounting policies
Company information
Yewcare Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Drakes Court
,
302 Alcester Road
,
Wythall
,
Birmingham
,
B47 6JR
.
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. The principal accounting policies adopted are set out below.
1.2
Revenue
Revenue represents income receivable from residents of Westerham Place Care Home for the provision of healthcare and related services. Revenue is recognised at the fair value of the income receivable as the services are provided to the customer.
1.3
Property, plant and equipment
Property, plant and equipment
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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
Not depreciated
Plant and machinery
25% straight line
Furniture, fixtures and equipment
25% straight line
Motor vehicles
25% straight line
Depreciation is not recognised for freehold land and building. The asset has a high residual value as a result of maintenance and other works carried out at the property on a continual basis. resulting in no depreciable amount being attached to the asset.
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
.
1.4
Impairment of non-current assets
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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.
YEWCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 December 2019
1
Accounting policies
(Continued)
- 3 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.5
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables 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.
Trade receivables
, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
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.
YEWCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 December 2019
1
Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables
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 payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
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.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
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 income statement 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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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YEWCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 December 2019
1
Accounting policies
(Continued)
1.8
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 non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Going concern
At the date of approving these financial statements, the directors are not aware of any residents or staff that have been infected with Covid-19, but the situation remains constantly under review and strict processes are in place in an attempt to prevent an outbreak within the home. Notwithstanding these arrangements, there remains a significant risk that there is an outbreak within the home, that the home becomes closed to new residents or even that the home has to close for a certain period of time. The directors have considered the various impacts and have a plan in place to deal with each potential outcome to limit the financial impact on the company.
The directors are satisfied that the company has adequate internal and external resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing these accounts.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 28 (2018 - 27
).
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YEWCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 December 2019
4
Property, plant and equipment
Freehold land and buildings
Plant and machinery
Furniture, fixtures and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2019
1,339,310
66,739
461,890
5,400
1,873,339
Additions
1,836
-
9,777
-
11,613
At 31 December 2019
1,341,146
66,739
471,667
5,400
1,884,952
Depreciation and impairment
At 1 January 2019
-
66,739
434,056
5,400
506,195
Depreciation charged in the year
-
-
13,902
-
13,902
At 31 December 2019
-
66,739
447,958
5,400
520,097
Carrying amount
At 31 December 2019
1,341,146
-
23,709
-
1,364,855
At 31 December 2018
1,339,310
-
27,834
-
1,367,144
Freehold land and buildings with a carrying amount of £1,341,146 (2018 - £1,339,310
) have been pledged to secure borrowings of the
parent company Westerham CHF SPV Sarl
. The company is not allowed to sell the
asset
to another entity.
5
Trade and other receivables
2019
2018
Amounts falling due within one year:
£
£
Trade receivables
44,990
51,326
Corporation tax recoverable
-
4,471
Amounts owed by group undertakings
22,916
24,347
Other receivables
13,711
18,838
81,617
98,982
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YEWCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 December 2019
6
Current liabilities
2019
2018
£
£
Trade payables
10,832
12,229
Accrued interest payable to Westerham Sarl
-
3,660
Corporation tax
37,488
21,054
Other taxation and social security
7,363
6,636
Other payables
46,845
57,504
102,528
101,083
7
Non-current liabilities
2019
2018
£
£
Loan principal payable to Westerham Sarl
-
215,494
Amounts included above which fall due after five years are as follows:
Payable other than by instalments
-
215,494
8
Provisions for liabilities
2019
2018
£
£
Deferred tax liabilities
93,717
92,502
9
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary Shares of £1 each
2
2
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Andrew Bithray.
The auditor was WSM Advisors Limited.
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YEWCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 December 2019
11
Events after the reporting date
The coronavirus outbreak in England is considered a non-adjusting post balance sheet event for these year-ended 31 December 2019 financial statements. The impact of the coronavirus on the going concern of the entity has been considered in note 2. The directors have considered the effect on the company’s cashflow over a period of at least twelve months from the date the accounts were approved based on various scenarios, reflecting the possible effects that the coronavirus pandemic could have on the company’s business. These forecasts show that cashflow could be adversely affected and further financial support is likely to be required from the parent company, who have indicated that this will be forthcoming. However the directors do not expect there to be any financial effect on the company as a result of this post balance sheet event.
There have been no other reportable post balance sheet events.
12
Parent company
The ultimate parent company is
KMG SICAV SIF Wren Retirement Fund
. Its registered office is 19 rue Eugene Ruppert, L-2453 Luxembourg.
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