Registration number:
for the
Year Ended
Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT
Independence Homes Limited
Contents
Company Information |
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Directors' Report |
|
Strategic Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Independence Homes Limited
Company Information
Directors |
S Chrystal K Lineker R R Smith |
Registered office |
|
Bankers |
|
Auditors |
|
Independence Homes Limited
Directors' Report for the Year Ended 31 March 2020
The directors present their report and the financial statements for the year ended 31 March 2020.
Directors of the company
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Financial instruments
Objectives and policies
The board constantly monitors the companys trading results and revise projections as appropriate to ensure that the company can meet its future obligations as they fall due.
Price risk, credit risk, liquidity risk and cash flow risk
The company is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through credit control procedures.
In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009', the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.
The company has sufficient resources available and the directors have prepared forecasts for the next 12 months that indicate that this will continue to be the case and that these cash flows will be sufficient for the company to meet its financing commitments as they fall due. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.
Employment of disabled persons
The company’s policy is to consider the recruitment of disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.
Employee involvement
The group encourages the involvement of employees in its management through regular departmental meetings. Further information has been included in the Strategic Report.
Independence Homes Limited
Directors' Report for the Year Ended 31 March 2020
Engagement with Suppliers, Customers and Others
As part of the company's commitment to maintaining an excellent reputation and achieving high standards, it continually engaging with its suppliers, customers and other stakeholders. Engagements with suppliers are aimed at ensuring that suppliers provide quality goods and services, in a timely manner, at a cost that is fair and equitable to both parties. Engagements with our customers ensure that the company continues to provide a quality service to our customers that is value for money. It is critical that we meet the needs of our customers and ongoing engagement allows us to monitor these needs and adapt our services in a way that maintains customer satisfaction and ensures the sustainable growth of our business. Our engagement with other stakeholders includes engagement with our local communities, where our reputation remains critical to the ongoing success of the group as a whole.
Future developments
The external environment is expected to remain competitive going forwards, however, the directors remain confident that the group will continue to improve its current level of performance in the future and will continue to trade as a going concern for the reasons detailed in Note 1 to the financial statements.
Disclosure of information to the auditors
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Appointment of auditors
Hazlewoods LLP were appointed as auditors to the company during the period, following the resignation of Moore Kingston Smith LLP, and have expressed their willingness to continue in office.
Approved by the
.........................................
Director
Independence Homes Limited
Strategic Report for the Year Ended 31 March 2020
The directors present their strategic report for the year ended 31 March 2020. The comparative period is from 1 November 2017 to 31 March 2019.
Principal activity
The principal activity of the company is that of operating care homes, a domiciliary care agency and providing healthcare training and consultancy services.
Fair review of the business
The results for the year, which are set out in the profit and loss account, show turnover of £18,304,410 (2019 - £21,862,263) and an operating profit of £5,465,297 (2019 - £6,860,426). At 31 March 2020, the company had net assets of £37,198,075 (2019 - £32,938,814). The directors consider the performance for the year and the financial position at the year end to be satisfactory.
The total market for adult specialist care in the UK is estimated to be in excess of £12bn per year. It is funded through Local Authorities, Clinical Commissioning Groups, and Insurance Companies. The group’s range of services provides a significant addressable market and we believe continued growth to be likely due to:
Changing demographics - clinical developments and ever advancing diagnostics have extended people’s lives, increasing both the size, and average age of the population. Improving the life expectancy of those with more complex care needs has also created demand for a broader, more varied style of care service;
Changing approach to care provision – historically, individuals with complex care needs were left within a hospital setting for a prolonged period. This is now seen as having a detrimental impact on both the individual, the efficiency of their care, and effectiveness of the hospital. The Company and the extended Group aims to work closely with trauma units and other medical professionals to provide long-term ongoing care within the community whenever possible. This ensures that tailored care pathways work in the best interest of each individual’s care needs.
Key Performance Indicators
Given the nature of the business, the directors are of the opinion that key performance indicators are important. The company uses a number of indicators to monitor and improve the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. Key Performance Indicators, other than the financial results which in the opinion of the Directors does not require further comment, include the hours of care provided and the occupancy levels within care homes. The Directors are satisfied with the position of these indicators at the end of the financial year and believe that the prospects for the company are positive.
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to ongoing compliance with current and future legislation affecting the sector.
• Overall, UK government spending remains subject to tight control. Whilst budget cuts are announced in other areas, an increase in demand for UK adult social care continues to be reflected in spending decisions.
• We believe that the key means of delivery of care must inevitably remain through the private sector due to the long-standing structures and relationships built up over many years.
• We also believe that the political importance of the sector means that the government will ensure that providers retain access to a supply of labour from outside the UK, including post Brexit.
• Towards the end of the financial year, the advancing global pandemic of COVID-19 provided an element of uncertainty to all business, however the demands of the healthcare sector have not changed as a result of this situation and government departments continue to ensure financial support to ensure ongoing service provision for individuals in our care.
Independence Homes Limited
Strategic Report for the Year Ended 31 March 2020
Carbon and energy reporting statement
No carbon reporting statment has been presented in these accounts as the directors have elected to take the exemption in reporting on the basis that the company has been included in the reporting included in the consolidated financial stateents of ACG Holdco Limited, the company's ultimate parent undertaking.
Section 172 statement
The Directors believe that they have effectively implemented their duties under section172 of the Companies Act 2006. The Directors have considered the long-term strategy of the of the Company to generate value for the shareholder by providing, progressive, personalised care pathways that combine clinical expertise, personal support, and therapeutic and rehabilitation services and consider that this strategy will continue to deliver long term success to the Company and its stakeholders.
The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the Company and the wider Group. The main stakeholders in the Company are considered to be the ultimate shareholders, employees, suppliers and customers. Their importance to the business is considered below.
The Company is committed to maintaining an excellent reputation and strives to achieve high standards. Our relationships with our suppliers, employees and customers are all interlinked in that by treating our suppliers fairly and having the right suppliers ensures that our staff are able to operate in a conducive environment while ensuring customers’ needs are met. By ensuring that we have the correct suppliers supplying the right quality of goods or services, coupled with quality staff working in optimal environments, we can ensure that service offered to our customers is of a high quality and standard resulting in continued support in our business. Each of these combined ultimately aims to result in a sustainable business and continued return for our shareholder.
The Company is regulated by the Care Quality Commission (CQC) who perform inspections at least once every 5 years however, the CQC could inspect any provider at any point in time irrespective of rating and inspections are almost always unannounced. In order to maintain acceptable levels and standards of care, we continually monitor our care levels in order to ensure that we maintain a high level of service and care at all times. During the year, our inspection reports for certain of our services indicated that improvements were required which has resulted in changes being made and action being taken in order to rectify any shortcomings in the quality of our service and care.
Employee involvement
Our staff are treated with respect and dignity. Clear objectives are set for staff in terms of performance and in order to facility performance, the Company ensures that that our staff are able to work in an environment that is conducive to achieving those goals in a way that is fair and equitable.
The Company encourages the involvement of employees in its management through regular departmental meetings thus ensuring that meaningful change occurs at a localised level depending on the needs of employees and the business. It is at these meetings where employees are made aware of any changes to the business which may impact on the employees or their working environment.
Approved by the
.........................................
Director
Independence Homes Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report, Strategic 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Independence Homes Limited
Independent Auditor's Report to the Members of Independence Homes Limited
Opinion
We have audited the financial statements of Independence Homes Limited (the 'company') for the year ended 31 March 2020, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, 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 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 March 2020 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. |
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 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. |
Other information
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.
Independence Homes Limited
Independent Auditor's Report to the Members of Independence Homes Limited
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 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 Statement of Directors' Responsibilities set out on page 6, 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.
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 auditor's report.
Independence Homes Limited
Independent Auditor's Report to the Members of Independence Homes Limited
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 auditor’s 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
Windsor House
Bayshill Road
GL50 3AT
Independence Homes Limited
Profit and Loss Account for the Year Ended 31 March 2020
Note |
Year ended 31 March 2020 |
1 November 2017 to 31 March 2019 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Exceptional items |
(104,496) |
- |
|
Other operating income |
- |
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no other comprehensive income for the year.
Independence Homes Limited
Statement of Comprehensive Income for the Year Ended 31 March 2020
2020 |
2019 |
|
Profit for the year |
|
|
Surplus/(deficit) on property, plant and equipment revaluation |
- |
|
Total comprehensive income for the year |
|
|
Independence Homes Limited
(Registration number: 03419025)
Balance Sheet as at 31 March 2020
Note |
31 March 2020 |
31 March 2019 |
|
Fixed assets |
|||
Intangible assets |
- |
- |
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Debtors; Amounts falling due within one year |
3,402,647 |
2,374,745 |
|
Debtors: Amounts falling due after more than one year |
7,412,100 |
4,651,332 |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Revaluation reserve |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
Director
Independence Homes Limited
Statement of Changes in Equity for the Year Ended 31 March 2020
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 April 2019 |
|
|
|
|
Profit for the year |
- |
- |
|
|
At 31 March 2020 |
|
|
|
|
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 November 2017 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Revaluation of tangible fixed assets |
- |
|
- |
|
Dividends |
- |
- |
( |
( |
New share capital subscribed |
|
- |
- |
|
At 31 March 2019 |
|
|
|
|
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
The company has not presented a cash flow statement on the grounds that the company is a wholly owned subsidiary and a group cash flow statement is included in the financial statements of the parent company.
Name of parent of group
These financial statements are consolidated in the financial statements of ACG Holdco Limited.
The financial statements of ACG Holdco Limited may be obtained from Companies House.
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Judgements and estimation uncertainty
These financial statements do not contain any significant judgements or estimation uncertainty. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold land and buildings |
Nil |
Land and buildings leasehold |
Over the term of the lease |
Fixtures and fittings |
25% straight line |
Office equipment |
25% straight line |
Motor vehicles |
25% straight line |
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Trade creditors
Trade creditors 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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Recognition and measurement
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Financial instruments (continued)
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Revenue |
The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2020 |
2019 |
|
Rental income |
- |
|
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Operating profit |
Arrived at after charging:
Year ended 31 March 2020 |
1 November 2017 to 31 March 2019 |
|
Depreciation expense |
|
|
Operating lease expense - property |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Exceptional items |
Year ended 31 March 2020 |
1 November 2017 to 31 March 2019 |
|
Exceptional expenses |
104,496 |
- |
Exceptional items in the current year consist of restructuring costs.
Other interest receivable and similar income |
2020 |
2019 |
|
Interest income on investments |
285,111 |
230,688 |
Interest income on bank deposits |
|
|
|
|
Interest payable and similar expenses |
2020 |
2019 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest payable to group undertakings |
|
|
|
|
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
Year ended 31 March 2020 |
1 November 2017 to 31 March 2019 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year was as follows:
Year ended 31 March 2020 |
1 November 2017 to 31 March 2019 |
|
Employees |
|
|
Directors' remuneration |
During the year, the remuneration for all directors were borne by other group companies.
2020 |
2019 |
|
Remuneration |
- |
|
In respect of the highest paid director:
2020 |
2019 |
|
Remuneration |
- |
|
Auditors' remuneration |
2020 |
2019 |
|
Audit of the financial statements |
|
|
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Taxation |
Tax charged in the profit and loss account
Year ended 31 March 2020 |
1 November 2017 to 31 March 2019 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2019 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2020 |
2019 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
- |
|
Deferred tax expense relating to changes in deferred tax rates |
|
- |
Deferred tax expense from unrecognised temporary difference from a prior period |
- |
|
Tax increase from effect of capital allowances and depreciation |
|
|
Tax increase/(decrease) from other short-term timing differences |
|
( |
Tax decrease arising from group relief |
( |
- |
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
2020 |
Liability |
Accelerated capital allowances |
|
Revaluations |
|
|
2019 |
Liability |
Accelerated capital allowances |
|
Revaluations |
|
|
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Intangible assets |
Goodwill |
|
Cost |
|
At 1 April 2019 and at 31 March 2020 |
|
Amortisation |
|
At 1 April 2019 and at 31 March 2020 |
|
Carrying amount |
|
At 31 March 2019 and at 31 March 2020 |
- |
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 April 2019 |
|
|
|
|
Additions |
|
|
- |
|
At 31 March 2020 |
|
|
|
|
Depreciation |
||||
At 1 April 2019 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 March 2020 |
|
|
|
|
Carrying amount |
||||
At 31 March 2020 |
|
|
|
|
At 31 March 2019 |
|
|
|
|
Debtors |
31 March 2020 |
31 March 2019 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
Amounts owed by group undertakings |
7,412,100 |
2,570,612 |
|
|
|
Less non-current portion |
( |
( |
Total current trade and other debtors |
|
|
Details of non-current trade and other debtors
£7,412,100 (2019 - £2,570,612) of amounts owed by group undertakings is classified as non-current.
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Creditors |
31 March 2020 |
31 March 2019 |
|
Due within one year |
||
Trade creditors |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
Corporation tax liability |
993,830 |
143,552 |
|
|
|
Due after one year |
||
Amounts owed to group undertakings |
18,276,652 |
18,973,952 |
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
31 March 2020 |
31 March 2019 |
|||
No. |
£ |
No. |
£ |
|
|
|
1,000 |
|
1,000 |
|
|
112 |
|
112 |
|
|
22 |
|
22 |
|
|
66 |
|
66 |
|
|
|
|
Rights, preferences and restrictions
The different classes of share referred to above carry separate rights to distribution but, in all other significant respects, rank pari passu. |
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2020 |
2019 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Independence Homes Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Dividends |
31 March 2020 |
31 March 2019 |
|
Dividends paid |
- |
2,070,000 |
Contingent liabilities |
The company is bound by an intra-group cross guarantee in respect of bank debt with other members of the group headed by its ultimate parent undertaking, ACG Holdco Limited. The amount guaranteed is £120,000,000 (2019 - £120,000,000).
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is