REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 April 2023 |
for |
Chelston Park Nursing and Residential |
Home Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 April 2023 |
for |
Chelston Park Nursing and Residential |
Home Limited |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Contents of the Financial Statements |
for the Year Ended 30 April 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
Chelston Park Nursing and Residential |
Home Limited |
Company Information |
for the Year Ended 30 April 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditor |
Stafford House |
Blackbrook Park Avenue |
Taunton |
Somerset |
TA1 2PX |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Strategic Report |
for the Year Ended 30 April 2023 |
The directors present their strategic report for the year ended 30 April 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of providing nursing and residential care for the elderly. |
REVIEW OF BUSINESS |
The results of the year and financial position of the company are as shown in the annexed financial statements. |
Increased occupancy levels and price rises during 2023 gave an increase in income of £799,839 compared to 2022. There has also been a corresponding increase in cost of sales of £683,558. This gives a gross profit for the year of £2,047,308 compared to £1,931,027. |
Expenditure this year has increased and as a result this year's profit before tax is £677,385 compared to £1,778,216 in 2022. In 2022 there were exceptional credits of £856,290 which improved the results and excluding the exceptional items, this figure would have been £921,926. |
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the company. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors recognise the uncertainties arising as a result of the current economic climate and its impact on both personal and local government budgets. Their aim is to continue to provide a high standard of care whilst building a stronger financial base to enable continuing investment in the business. The latest Care Quality Commission inspection report published on 18 March 2021 rated the overall service "Outstanding". |
Chelston Park has built on the safe infection, protection and control systems put in place during the pandemic to develop safe admission processes and procedures enabling safe admission. Enquiries are high from privately funded residents and Chelston is well positioned to take advantage of stronger demand. Successful overseas recruitment has enabled Chelston to meet enquiries, build occupancy and reduce agency staff costs. Increasing occupancy and fee levels are contributing to stronger financial performance. The addition of a new premium bedroom, day space, reception and outside terraces have added to quality of the facilities offered at Chelston Park. The Leadership Team has continued to develop consolidating HR, scheduling, accounts and reception functions. |
ON BEHALF OF THE BOARD: |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Report of the Directors |
for the Year Ended 30 April 2023 |
The directors present their report with the financial statements of the company for the year ended 30 April 2023. |
DIVIDENDS |
An interim dividend of £ |
The total distribution of dividends for the year ended 30 April 2023 will be £ |
FUTURE DEVELOPMENTS |
The company will continue to provide high quality nursing and residential care for the elderly. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2022 to the date of this report. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The directors are responsible for monitoring financial risk. Appropriate policies have been developed and implemented to identify, evaluate and manage the key risks. |
a) Price risk - The company is exposed to price risk as a result of its operations in respect of staff costs. The directors will monitor the situation carefully and take steps where necessary to mitigate this risk. |
b) Credit risk - The directors are well aware of the importance of managing this risk. The company has implemented policies that require appropriate credit checks on potential customers before contracts are entered into. The credit given to customers is subject to limits which are determined and reassessed by the directors. |
c) Liquidity risk - The company has arranged an adequate bank overdraft for its day to day cash flow requirements. Budgets and cash flow projections are prepared and regularly monitored to ensure that the company operates within its overdraft limit. |
d) Interest rate cash flow risk - The company has an overdraft facility which is repayable on demand. The interest charged on the overdraft is at a competitive rate of interest. The company has long term loans repayable in varying periods of upto 13 years, with interest being charged on a fixed rate or a fixed percentage above base rate. The directors have considered the risk of a rise in the base rate and do not think this will have a significant impact on the business. |
e) Economic risk - The company's performance is impacted by the economic environment and the affordability to its patients. The company strives to deliver a very high level of care whilst being competitively priced. |
GOING CONCERN |
The balance sheet shows net current liabilities. The company meets its day-to-day working capital requirements through its bank facilities and borrowings and is reliant on the continued support of the bank. The company's forecasts and projections, taking account of reasonably possible changes in trading conditions, show the company should be able to operate within the level of its current bank facilities and borrowings. |
The Directors therefore continue to adopt the going concern basis in preparing the financial statements. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Report of the Directors |
for the Year Ended 30 April 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Chelston Park Nursing and Residential |
Home Limited |
Opinion |
We have audited the financial statements of Chelston Park Nursing and Residential Home Limited (the 'company') for the year ended 30 April 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 April 2023 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 identified material misstatements in the Strategic Report or the Report of the Directors. |
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. |
Report of the Independent Auditors to the Members of |
Chelston Park Nursing and Residential |
Home Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks of material misstatement due to irregularities |
We considered the following when identifying and assessing risks of material misstatement due to irregularities, including fraud and non-compliance with laws and regulations: |
- the legal and regulatory framework in which the company operates |
- the nature of the sector in which the company operates |
- the control environment and controls established to mitigate such risks |
- the results of our enquiries of management about their identification and assessment of risks of irregularities |
- discussions with the audit engagement team about where fraud might occur |
- the incentives for fraud. |
Laws and regulations which are considered to be significant to the company include those relating to the requirements of financial reporting framework FRS102, the Companies Act 2006, UK tax legislation, Care Quality Standards, employment law and health and safety. In addition we consider other laws and regulation which may not directly impact the financial statements but may impact on the operation of the company. |
As a result of these procedures we concluded, in accordance with International Auditing Standards, that a risk in relation to the potential for management override of controls existed. |
Audit responses to risks identified |
We undertook audit procedures to respond to the risks identified, and designed our audit testing to respond to these risks. The additional procedures we undertook included the following: |
- gaining an understanding of the company's procedures for ensuring compliance with laws and regulations |
- testing the appropriateness of journal entries and other adjustments |
- considering whether accounting estimates were indicative of potential bias |
- considering whether any transactions arose outside the normal course of business |
- making enquiries of management |
- corroborating our enquiries through review of correspondence. |
We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Chelston Park Nursing and Residential |
Home 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditor |
Stafford House |
Blackbrook Park Avenue |
Taunton |
Somerset |
TA1 2PX |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Income Statement |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Exceptional items (note 5) | ( |
) |
Administrative expenses |
1,302,882 | 259,909 |
744,426 | 1,671,118 |
Other operating income | ( |
) |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
744,380 | 1,819,364 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Other Comprehensive Income |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Gain on revaluation of property |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Balance Sheet |
30 April 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
12 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Revaluation reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Statement of Changes in Equity |
for the Year Ended 30 April 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Transfer | - | 51,229 | (51,229 | ) | - |
Restatement of opening |
position | - | 996,111 | (996,111 | ) | - |
Balance at 30 April 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Cash Flow Statement |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase or finance lease rental payments paid |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Finance lease repayments in year | ( |
) |
Amount introduced by directors | - | 12,838 |
Amount withdrawn by directors | (13,576 | ) | - |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
175,623 |
Cash and cash equivalents at end of year | 2 | ( |
) | 35,392 |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Notes to the Cash Flow Statement |
for the Year Ended 30 April 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Exceptional item - non cash | - | (1,221,779 | ) |
Finance costs | 66,995 | 41,148 |
Finance income | (221 | ) | (2 | ) |
779,459 | 763,945 |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 202 | 35,392 |
Bank overdrafts | ( |
) |
(172,812 | ) | 35,392 |
Year ended 30 April 2022 |
30.4.22 | 1.5.21 |
£ | £ |
Cash and cash equivalents | 35,392 | 175,623 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.5.22 | Cash flow | At 30.4.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 35,392 | (35,190 | ) | 202 |
Bank overdrafts | - | (173,014 | ) | (173,014 | ) |
35,392 | ( |
) | (172,812 | ) |
Debt |
Debts falling due within 1 year | (408,000 | ) | 15,879 | (392,121 | ) |
Debts falling due after 1 year | (1,589,877 | ) | 239,111 | (1,350,766 | ) |
(1,997,877 | ) | 254,990 | (1,742,887 | ) |
Total | (1,962,485 | ) | 46,786 | (1,915,699 | ) |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Notes to the Financial Statements |
for the Year Ended 30 April 2023 |
1. | GENERAL INFORMATION |
Chelston Park Nursing and Residential Home Limited is a private company limited by shares and incorporated in the UK. The address of the registered office is West Buckland Road, Wellington, Somerset, TA21 9PH. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The balance sheet shows net current liabilities. The company meets its day-to-day working capital requirements through its bank facilities and borrowings and is reliant on the continued support of the bank. The company's forecasts and projections, taking account of reasonably possible changes in trading conditions, show the company should be able to operate within the level of its current bank facilities and borrowings. The directors have also considered the impact that Covid19 has had on the business in making their assessment. |
The Directors therefore continue to adopt the going concern basis in preparing the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents net invoiced sales of services, excluding value added tax. |
Revenue Recognition |
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Freehold land is not depreciated. |
Freehold property is stated at valuation and is not depreciated. Previously depreciation was charged at 4% on deemed cost up to January 2022 when the valuation took place. The company had previously taken advantage of the transitional provisions of FRS102 and the valuation of freehold properties at the date of transition to FRS102 had been treated as deemed cost. Freehold property is reviewed regularly for any impairment and any impairment is recognised accordingly. |
Other tangible fixed assets are stated at cost less accumulated depreciation. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand and at bank. |
Financial instruments |
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. |
Government coronavirus grant |
Government grants received in respect of Coronavirus assistance are recognised using the accruals method. |
Under the accruals method, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. |
Critical accounting judgements and estimation uncertainty |
The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that affect the application of accounting policies and the amounts recognised in the financial statements. Judgements and estimates are reviewed on an ongoing basis and are based on historical experience and other relevant factors. The resulting accounting estimates will, by definition, seldom equal the related actual results. |
The directors are of the opinion that except for property valuations, as detailed below, there are no accounting judgements or estimates that have a significant rosl of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
Properties are carried at fair value. The Directors seek the assistance of professional third party valuers in determining fair value. These valuations include judgement in the determination of fair values and actual values could differ from those estimates. |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2023 |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Chelston Park direct staff | 46 | 44 |
Chelston Gardens direct Staff | 82 | 75 |
Administration | 15 | 11 |
Directors | 2 | 2 |
Key management personnel are considered to be the directors and the registered manager and their remuneration in the year was £120,145 (2022: £117,880). |
2023 | 2022 |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts or finance leases |
Profit on disposal of fixed assets | ( |
) |
Auditors remuneration |
5. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Exceptional items | - | 856,290 |
Last year there was an exceptional item relating to a bad debt in respect of a loan to a related party which was no longer considered recoverable. The amount written off was £365,489. |
There was also an exceptional item in respect of depreciation written back in respect of the property revaluation. The amount written back was £1,221,779. |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest |
Other loan interest | ( |
) |
Hire purchase |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2023 |
7. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax | ( |
) |
Tax on profit | ( |
) | ( |
) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Income not taxable for tax purposes |
Expenses not deductible for tax purposes | 22,483 | (166 | ) |
Depreciation on non-qualifying assets | 276 | 14,817 |
Super deduction | - | (2,251 | ) |
Change in tax rate | 1,313 | (1,318 | ) |
R&D reclaims in relation to 2020, 2021 and 2022 | (178,273 | ) | (189,864 | ) |
Revaluation gain on reversal of depreciation | - | (232,138 | ) |
Total tax credit | (22,158 | ) | (5,302 | ) |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 30 April 2023. |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Gain on revaluation of property | - | 721,221 |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2023 |
9. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
Freehold | to | and |
property | property | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 May 2022 |
Additions |
Disposals |
At 30 April 2023 |
DEPRECIATION |
At 1 May 2022 |
Charge for year |
Eliminated on disposal |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 May 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 April 2023 |
DEPRECIATION |
At 1 May 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
Cost or valuation at 30 April 2023 is represented by: |
Improvements | Fixtures |
Freehold | to | and |
property | property | fittings |
£ | £ | £ |
Valuation in 2022 | 40,000 | - | - |
Cost | 6,500,000 | 615,051 | 710,989 |
6,540,000 | 615,051 | 710,989 |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2022 | - | - | 40,000 |
Cost | 41,940 | 72,791 | 7,940,771 |
41,940 | 72,791 | 7,980,771 |
Freehold land and buildings were valued on an open market basis on 31 January 2022 by J Hodgkins MRICS of Christie & Co . |
The directors believe this represents the fair value at the balance sheet date. |
10. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Netherclay Home Care Limited | 30,909 | - |
Chelston Properties Ltd | 105,637 | 79,327 |
Tax |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Amount due from related party |
Aggregate amounts |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 13) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Director's current account | - | 13,576 |
Accruals |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 13) |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2023 |
13. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 333,346 | 414,873 |
The loans are repayable over varying periods of up to 11 years. Interest is being charged at either 1.5%, 2.07% or 2.27% above the bank base rate or a fixed rate of either 3.29 or 7.79%. |
In 2020 a Coronavirus Business Interruption Loan was received of £400,000. The loan is interest free and is repayable in 60 monthly amounts starting from June 2021. The loan is secured. |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdraft |
Bank loans |
The bank loans and overdraft are secured by a fixed and floating charge over the assets of the company and by directors' personal guarantees. |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 164,377 | 158,422 |
Chelston Park Nursing and Residential |
Home Limited (Registered number: 04018940) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2023 |
16. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 May 2022 |
Accelerated capital allowances | 5,955 |
Balance at 30 April 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 2 | 2 |
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. |
18. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 April 2023 and 30 April 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
19. | RELATED PARTY DISCLOSURES |
2023 | 2022 |
£ | £ |
Management charge and recharges to related parties | 214,119 | 124,371 |
Recharges from related parties | 24,201 | (65,874 | ) |
Amount due from related parties |
Amount due to related parties | ( |
) | ( |
) |
Recognised bad or doubtful debts due from related parties |
20. | ULTIMATE CONTROLLING PARTY |
The directors own 100% of the share capital. |