Stepping Stones Resettlement Unit Limited
Annual Report and Financial Statements
For the year ended 31 August 2019
Company Registration No. 03220818 (England and Wales)
Stepping Stones Resettlement Unit Limited
Company Information
Directors
D. Quinlan
M. Evans
N. McGrail
Secretary
M. Evans
Company number
03220818
Registered office
Stepping Stones
Broadoak
Newham-on-Severn
Gloucestershire
GL14 1JF
Auditor
Moore Kingston Smith LLP
Devonshire House
60 Goswell Road
London
EC1M 7AD
Business address
Stepping Stones
Broadoak
Newham-on-Severn
Gloucestershire
GL14 1JF
Stepping Stones Resettlement Unit Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
Stepping Stones Resettlement Unit Limited
Strategic Report
For the year ended 31 August 2019
Page 1
The directors present the strategic report for the year ended 31 August 2019.
Fair review of the business
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.
We consider that our key financial performance indicators are those that communicate the financial performance of the company as a whole, these being occupancy, turnover and operating profit margin.
Governmental cuts in social care and public sector spending
combined with wage inflation
continue to present challenges to turnover and operating profit. The Directors expect a further period of challenge and consolidation.
2019 2018
Occupancy at the year end 85 82
Turnover £7,275,682 £7,105,293
Staff costs as a percentage of 66% 61%
fee income
Gross profit margin 36.6% 37.1%
Operating profit margin 8.7% 16.4%
Principal risks and uncertainties
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the businesses.
The outbreak of Covid19 in the financial year to August 2020 poses a potential threat to the business. Operational and financial measures have been put in place to help minimise risk as far as possible and no financial losses have been incurred to date and the group is operating and trading well through the crisis. Government, Local Authority and Banking support has been extended and utilised to some extent, this includes the Coronavirus job retention scheme, one-off payments from Local authorities to assist with Covid 19 additional costs, and a 12 month capital holiday has been offered by RBS and accepted by the Company.
M. Evans
Director
19 May 2020
Stepping Stones Resettlement Unit Limited
Directors' Report
For the year ended 31 August 2019
Page 2
The directors present their annual report and financial statements for the year ended 31 August 2019.
Principal activities
The Company operates residential care homes for adults with learning disabilities and mental health diagnosis
.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D. Quinlan
M. Evans
N. McGrail
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
M. Evans
Director
19 May 2020
Stepping Stones Resettlement Unit Limited
Directors' Responsibilities Statement
For the year ended 31 August 2019
Page 3
The directors are responsible for preparing the annual 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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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.
Stepping Stones Resettlement Unit Limited
Independent Auditor's Report
To the Members of Stepping Stones Resettlement Unit Limited
Page 4
Opinion
We have audited the financial statements of Stepping Stones Resettlement Unit Limited
(the 'company')
for the year ended 31 August 2019 which comprise the Profit And Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and 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 FRS 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 August 2019 and of its profit 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.
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 Auditor's 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Stepping Stones Resettlement Unit Limited
Independent Auditor's Report (Continued)
To the Members of Stepping Stones Resettlement Unit Limited
Page 5
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
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 identifie
d
material misstatements in the Strategic Report and 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 Directors' Responsibilities Statement, 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 is 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.
Auditor's 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 auditor’s 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.
Stepping Stones Resettlement Unit Limited
Independent Auditor's Report (Continued)
To the Members of Stepping Stones Resettlement Unit Limited
Page 6
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
-
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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
for no purpose other than to draw to the attention of
the company’s members those matters we are required to
include
in an auditor's report
addressed to them.
To the fullest extent permitted by law, we do not accept or assume responsibility to
any party
other than the company and the company’s members as a body, for our work, for this report, or for the opinions we have formed.
Matthew Meadows (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
21 May 2020
Chartered Accountants
Statutory Auditor
Devonshire House
60 Goswell Road
London
EC1M 7AD
Stepping Stones Resettlement Unit Limited
Profit and loss account
For the year ended 31 August 2019
Page 7
2019
2018
Notes
£
£
Turnover
3
7,275,682
7,105,293
Cost of sales
(4,616,419)
(4,472,769)
Gross profit
2,659,263
2,632,524
Administrative expenses
(2,027,641)
(1,467,370)
Operating profit
4
631,622
1,165,154
Interest payable and similar expenses
7
(7,243)
(9,255)
Profit before taxation
624,379
1,155,899
Taxation
8
(114,116)
(171,683)
Profit for the financial year
510,263
984,216
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
Stepping Stones Resettlement Unit Limited
Statement of Comprehensive Income
For the Year ended 31 August 2019
Page 8
2019
2018
£
£
Profit for the year
510,263
984,216
Other comprehensive income
Tax relating to other comprehensive income
-
10,678
Total comprehensive income for the year
510,263
994,894
Stepping Stones Resettlement Unit Limited
Balance Sheet
As at 31 August 2019
Page 9
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
10
13,910,402
14,098,519
Current assets
Debtors
11
2,920,094
2,735,001
Cash at bank and in hand
732,525
368,816
3,652,619
3,103,817
Creditors: amounts falling due within one year
12
(2,610,456)
(2,769,204)
Net current assets
1,042,163
334,613
Total assets less current liabilities
14,952,565
14,433,132
Creditors: amounts falling due after more than one year
13
(32,904)
(23,734)
Provisions for liabilities
15
(1,278,612)
(1,278,612)
Net assets
13,641,049
13,130,786
Capital and reserves
Called up share capital
18
100
100
Revaluation reserve
7,478,226
7,478,226
Profit and loss reserves
6,162,723
5,652,460
Total equity
13,641,049
13,130,786
The financial statements were approved by the board of directors and authorised for issue on 19 May 2020 and are signed on its behalf by:
M. Evans
Director
Company Registration No. 03220818
Stepping Stones Resettlement Unit Limited
Statement of Changes in Equity
For the year ended 31 August 2019
Page 10
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2017
100
7,467,548
6,611,611
14,079,259
Year ended 31 August 2018:
Profit for the year
-
-
984,216
984,216
Other comprehensive income:
Tax relating to other comprehensive income
-
10,678
-
10,678
Total comprehensive income for the year
-
10,678
984,216
994,894
Dividends
9
-
-
(1,943,367)
(1,943,367)
Balance at 31 August 2018
100
7,478,226
5,652,460
13,130,786
Year ended 31 August 2019:
Profit and total comprehensive income for the year
-
-
510,263
510,263
Balance at 31 August 2019
100
7,478,226
6,162,723
13,641,049
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements
For the year ended 31 August 2019
Page 11
1
Accounting policies
Company information
Stepping Stones Resettlement Unit Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Stepping Stones, Broadoak, Newham-on-Severn, Gloucestershire, GL14 1JF.
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.
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 pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
The recent outbreak of the novel coronavirus continues to adversely impact global commercial activity, and the full impact of the outbreak is still uncertain. O
perational and financial measures have been put in place to help minimise risk as far as possible and no financial losses have been incurred to date and the group is operating and trading well through the crisis.
Government, Local Authority and Banking support has been extended and utilised to some extent, this includes the Coronavirus job retention scheme, one -off payments from Local authorities to assist with Covid 19 additional costs, and a 12 month capital holiday has been offered by RBS and accepted by the Company.
Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents the amounts receivable during the year for residents' fee income. Where the amount received relates to a period which covers the balance sheet date, the amount is apportioned to the financial period to which it relates.
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.
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 property
2% straight line
Motor vehicles
20% of written down value
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
.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
1
Accounting policies
(Continued)
Page 12
1.5
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.
1.6
Cash and cash equivalents
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.
1.7
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.
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 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.
Other financial assets
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 profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
1
Accounting policies
(Continued)
Page 13
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
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 profit or loss.
If there is a 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 profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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, 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.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
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.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
1
Accounting policies
(Continued)
Page 14
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
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.
1.9
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 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 profit and loss account, 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.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
1
Accounting policies
(Continued)
Page 15
1.10
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.
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.
1.11
Retirement benefits
The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in acordance with the rules of the scheme. Assets of these schemes are held independently of the company.
1.12
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.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
1
Accounting policies
(Continued)
Page 16
1.13
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 'Related Party Disclosures' - Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements
of Dunview Limited.
These consolidated financial statements are available from its registered office,
Broadoak, Newham-on-Severn, Gloucestershire, GL14 1JF.
2
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 amount 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.
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Social care services
7,275,682
7,105,293
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
3
Turnover and other revenue
(Continued)
Page 17
2019
2018
£
£
Turnover analysed by geographical market
UK
7,275,682
7,105,293
4
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,200
20,720
Depreciation of owned tangible fixed assets
214,119
4,520
Depreciation of tangible fixed assets held under finance leases
24,825
18,860
Loss on disposal of tangible fixed assets
1,318
23,773
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Administration
14
13
Care Services
184
195
198
208
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
4,261,628
3,857,620
Social security costs
355,336
339,289
Pension costs
203,279
120,370
4,820,243
4,317,279
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
Page 18
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
624,241
546,918
Company pension contributions to defined contribution schemes
18,030
15,297
642,271
562,215
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2018 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
428,758
370,271
Company pension contributions to defined contribution schemes
8,615
9,384
7
Interest payable and similar expenses
2019
2018
£
£
Interest on finance leases and hire purchase contracts
7,243
9,255
8
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
114,116
197,495
Deferred tax
Origination and reversal of timing differences
-
(25,812)
Total tax charge
114,116
171,683
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
8
Taxation
(Continued)
Page 19
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
624,379
1,155,899
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
118,632
219,621
Tax effect of expenses that are not deductible in determining taxable profit
2,007
3,804
Group relief
(45,124)
(32,291)
Permanent capital allowances in excess of depreciation
(2,786)
-
Depreciation on assets not qualifying for tax allowances
39,914
5,096
Deferred tax adjustments
-
(25,812)
Other tax adjustments
1,473
1,265
Taxation charge for the year
114,116
171,683
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2019
2018
£
£
Deferred tax arising on:
Revaluation of property
-
(10,678)
9
Dividends
2019
2018
£
£
Final paid
-
1,943,367
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
Page 20
10
Tangible fixed assets
Freehold property
Motor vehicles
Total
£
£
£
Cost
At 1 September 2018
14,005,000
209,658
14,214,658
Additions
-
68,609
68,609
Disposals
-
(57,425)
(57,425)
At 31 August 2019
14,005,000
220,842
14,225,842
Depreciation and impairment
At 1 September 2018
-
116,139
116,139
Depreciation charged in the year
210,075
28,869
238,944
Eliminated in respect of disposals
-
(39,643)
(39,643)
At 31 August 2019
210,075
105,365
315,440
Carrying amount
At 31 August 2019
13,794,925
115,477
13,910,402
At 31 August 2018
14,005,000
93,519
14,098,519
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £24,825 (2018 - £18,860) for the year.
2019
2018
£
£
Motor vehicles
99,302
75,438
The freehold properties
are deemed to be carried at cost, representing the frozen valuation at 1 August 2014, as permitted under the transitional arrangements to FRS102.
The historical cost of the freehold properties included in the valuations amounted to £4,586,539.
There is a legal charge over the freehold properties in favour of Royal Bank of Scotland. This is security for the bank loan held in the
group
.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
Page 21
11
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
223,030
156,880
Amounts due from group undertakings
2,677,961
2,303,186
Other debtors
960
254,100
Prepayments and accrued income
18,143
20,835
2,920,094
2,735,001
12
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Obligations under finance leases
14
22,984
25,110
Trade creditors
55,091
44,465
Amounts due to group undertakings
1,944,367
1,944,367
Corporation tax
73,720
209,573
Other taxation and social security
98,045
104,979
Other creditors
306,749
292,398
Accruals and deferred income
109,500
148,312
2,610,456
2,769,204
13
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Obligations under finance leases
14
32,904
23,734
14
Finance lease obligations
2019
2018
Future minimum lease payments due under finance leases:
£
£
Within one year
32,946
28,858
In two to five years
36,155
28,289
69,101
57,147
Less: future finance charges
(13,213)
(8,303)
55,888
48,844
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
14
Finance lease obligations
(Continued)
Page 22
Finance lease payments represent rentals payable by the company for certain items of motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
15
Provisions for liabilities
2019
2018
Notes
£
£
Deferred tax liabilities
16
1,278,612
1,278,612
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
108,376
108,376
Revaluations
1,170,236
1,170,236
1,278,612
1,278,612
17
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
203,279
120,370
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
Page 23
18
Share capital
2019
2018
£
£
Ordinary share capital
Authorised
1,000 Ordinary shares of £1 each
1,000
1,000
Issued and fully paid
100 Ordinary shares of £1 each
100
100
19
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
11,337
34,553
Between two and five years
-
11,337
11,337
45,890
20
Related party transactions
During the year, a total of
£Nil
(
2018
: £
22,648
) was paid in rent to Mr D. Quinlan for the use of Dean Grange, a care home
previously
owned by Mr D. Quinlan.
On 14 May 2018 this property was sold to the company.
During the year, £
58,500
(201
8
: £
72,000
) was charged by
N
.
McGrail
,
director
, for
professional
services
.
A
t the year end
no
amount was outstanding
.
Included within other debtors is an amount owed by Mr D. Quinlan of £nil (2018: £50).
The company has taken advantage of the exemption available in section 33 of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
Stepping Stones Resettlement Unit Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2019
Page 24
21
Controlling party
The immediate parent company is Stones Holdings Limited, a company registered in England & Wales, and the ultimate parent company is Dunview Limited, a company registered in England & Wales which is controlled by Mr D Quinlan.
Dunview Limited prepares group financial statements and copies can be obtained from the registered office.
2019-08-31
2018-09-01
false
CCH Software
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2018-08-31
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2019-08-31
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