Company registration number 04159702 (England and Wales)
RHEOLA HEALTHCARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
RHEOLA HEALTHCARE LIMITED
COMPANY INFORMATION
Director
Mr Osman Ertosun
Company number
04159702
Registered office
Kalamu House
11 Coldbath Square
London
EC1R 5HL
Auditor
KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
Bankers
Barclays Bank Plc
50 Pall Mall
PO Box 15162
London
SW1A 1QB
RHEOLA HEALTHCARE LIMITED
CONTENTS
Page
Director's report
1
Director's responsibilities statement
2
Independent auditor's report
3 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
RHEOLA HEALTHCARE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The director presents his annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of the operation of a care home for the elderly.
Results and dividends
The results for the year are set out on page 7.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr Osman Ertosun
Auditor
The auditor, KLSA LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr Osman Ertosun
Director
18 December 2023
RHEOLA HEALTHCARE LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
RHEOLA HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHEOLA HEALTHCARE LIMITED
- 3 -
Opinion
We have audited the financial statements of Rheola Healthcare Limited (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 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.
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
In auditing the financial statements, we have concluded that the director's 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 authorized for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the director's report has been prepared in accordance with applicable legal requirements.
RHEOLA HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHEOLA HEALTHCARE LIMITED
- 4 -
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 director's report. We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the director's report and from the requirement to prepare a strategic report.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities , including fraud and non-compliance with laws and regulations
To identify risks of material misstatement due to any irregularities, including fraud and non-compliance with laws and regulations, we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; and
we focused on specific laws and regulations which we considered may have a direct material effect on the operations of the company, financial statements including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation and Care Quality Commission (Registration) Regulations 2009.
RHEOLA HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHEOLA HEALTHCARE LIMITED
- 5 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
reviewed the financial statements disclosures and determining whether accounting policies have been appropriately applied.
obtaining third-party confirmation of material bank balances.
documenting and verifying all significant related party balances and transactions.
To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.
Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the Company’s license to operate. We identified the following areas as those most likely to have such an effect: Care Quality Commission’s Inspections and healthcare and safety legislation regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards; for instance, any non-compliance with laws and regulations and fraud which is far removed from transactions reflected in the financial statements would diminish the likelihood of detection. Furthermore, the risk of not detecting a material misstatement due to fraud is greater than the risk of not detecting one resulting from error.
Fraud may involve deliberate concealment by, for example, forgery or intentional omissions, misrepresentation, or through an act of collusion that would mitigate internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
RHEOLA HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHEOLA HEALTHCARE LIMITED
- 6 -
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.
Shilpa Chheda
Senior Statutory Auditor
For and on behalf of KLSA LLP
18 December 2023
Chartered Accountants
Statutory Auditor
Kalamu House
11 Coldbath Square
London
EC1R 5HL
RHEOLA HEALTHCARE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
1,549,267
1,417,075
Cost of sales
(911,390)
(835,806)
Gross profit
637,877
581,269
Distribution costs
(14,488)
(8,469)
Administrative expenses
(551,730)
(464,816)
Other operating income
16,694
89,684
Operating profit
4
88,353
197,668
Interest receivable and similar income
7
74
3
Profit before taxation
88,427
197,671
Tax on profit
8
(17,157)
(40,845)
Profit for the financial year
71,270
156,826
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RHEOLA HEALTHCARE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
£
£
Profit for the year
71,270
156,826
Other comprehensive income
-
-
Total comprehensive income for the year
71,270
156,826
RHEOLA HEALTHCARE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
18,074
29,739
Current assets
Stocks
10
1,800
1,400
Debtors
11
366,269
481,234
Cash at bank and in hand
5,524
5,734
373,593
488,368
Creditors: amounts falling due within one year
12
(216,618)
(414,328)
Net current assets
156,975
74,040
Net assets
175,049
103,779
Capital and reserves
Called up share capital
14
10,000
10,000
Profit and loss reserves
165,049
93,779
Total equity
175,049
103,779
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 18 December 2023
Mr Osman Ertosun
Director
Company registration number 04159702 (England and Wales)
RHEOLA HEALTHCARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
10,000
(63,047)
(53,047)
Year ended 31 March 2022:
Profit and total comprehensive income
-
156,826
156,826
Balance at 31 March 2022
10,000
93,779
103,779
Year ended 31 March 2023:
Profit and total comprehensive income
-
71,270
71,270
Balance at 31 March 2023
10,000
165,049
175,049
RHEOLA HEALTHCARE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
51,749
28,641
Income taxes paid
(52,033)
(28,623)
Net cash (outflow)/inflow from operating activities
(284)
18
Investing activities
Interest received
74
3
Net cash generated from investing activities
74
3
Net (decrease)/increase in cash and cash equivalents
(210)
21
Cash and cash equivalents at beginning of year
5,734
5,713
Cash and cash equivalents at end of year
5,524
5,734
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information
Rheola Healthcare Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kalamu House, 11 Coldbath Square, London, EC1R 5HL.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is financed by the operational profits and cashflow of the business.true
In accordance with his responsibilities, the director has considered the appropriateness of the going concern basis for the preparation of the financial statements. For this basis he has reviewed the financial and cash flow projections for the next 12 months from the date of the approval of the financial statements.
On the basis of this, the director has a reasonable expectation that the company will continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements. These financial statements are prepared on the going concern basis.
1.3
Turnover
Turnover represents fees receivable for care services. Turnover is recognised as it is incurred, either daily, weekly or monthly. Where charges are billed in advance these are recorded as deferred income.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at 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:
Land and buildings Leasehold
Over the term of the lease
Leasehold improvements
Over the term of the lease
Fixtures, fittings & equipment
25% on Reducing Balance
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.
Depreciation and residual values
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.
De-recognition
Tangible assets are de-recognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss.
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks comprise of food and consumables which are used for own consumption and are valued on a First In First Out (FIFO) basis. Stock is carried at the lower of cost and net realisable value.
At each reporting date, as assessment is made for impairment. Any excess of the carrying amount of stocks over its net realisable value is recognised as an impairment loss in profit and loss. Reversals of impairment losses are also recognised in profit and loss.
1.7
Cash and cash equivalents
Cash and cash equivalents 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.
1.8
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.
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
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.
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
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 payments 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. Amounts 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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.
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
There were no changes in presentation in the current year.
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of debtors
The company reviews their portfolio of trade debtors on an annual basis. In determining whether trade debtors are impaired, the management makes judgement as to whether there is any evidence indicating that there is a measurable decrease in the estimated future cash flows expected.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful economic lives of tangible assets
Management reviews the useful lives, depreciation methods and residual values of the items of property, plant and equipment. During the financial year the directors determined no significant changes in the useful lives and residual values. The carrying amounts of property, plant and equipment are disclosed in note 9.
Staff costs accrual
The monetary liability for employees' accrued holidays and management approved bonus at the reporting date is recognised as an expense accrual.
3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
74
3
Grants received
16,694
89,684
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(16,694)
(89,684)
Depreciation of owned tangible fixed assets
11,665
9,937
(Profit)/loss on disposal of tangible fixed assets
-
2,951
Operating lease charges
128,040
127,998
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Care Staff
33
36
Administration
-
2
Managerial
1
1
Total
34
39
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
962,082
886,061
Pension costs
12,260
10,875
974,342
896,936
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
2,494
2,486
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
74
3
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
74
3
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
17,157
39,414
Adjustments in respect of prior periods
1,431
Total current tax
17,157
40,845
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Taxation
(Continued)
- 18 -
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:
2023
2022
£
£
Profit before taxation
88,427
197,671
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
16,801
37,557
Tax effect of expenses that are not deductible in determining taxable profit
102
619
Adjustments in respect of prior years
(1,428)
Permanent capital allowances in excess of depreciation
1,682
1,238
Under/(over) provided in prior years
1,431
Taxation charge for the year
17,157
40,845
9
Tangible fixed assets
Land and buildings Leasehold
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 April 2022 and 31 March 2023
7,862
173,959
143,087
324,908
Depreciation and impairment
At 1 April 2022
7,862
167,165
120,142
295,169
Depreciation charged in the year
6,794
4,871
11,665
At 31 March 2023
7,862
173,959
125,013
306,834
Carrying amount
At 31 March 2023
18,074
18,074
At 31 March 2022
6,794
22,945
29,739
10
Stocks
2023
2022
£
£
Food and consumables
1,800
1,400
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
30,009
452
Amounts owed by group undertakings
332,553
399,716
Other debtors
77,296
Prepayments and accrued income
3,707
3,770
366,269
481,234
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
42,054
28,803
Amounts owed to group undertakings
230,635
Corporation tax
2,197
37,073
Other taxation and social security
10,133
8,631
Other creditors
78,458
40,238
Accruals and deferred income
83,776
68,948
216,618
414,328
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
12,260
10,875
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.
14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
10,000
10,000
10,000
10,000
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
15
Operating lease commitments
Lessee
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:
2023
2022
£
£
Within one year
125,000
125,000
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
16
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The balance receivable from related at the year end date are as follows:
Aliwal Healthcare Limited - nil (2022 £1,750)
Excelcare (Cambridge) Limited - £322,136 (2022 - £277,310)
Hunters Healthcare Limited - nil (2022- £30,673)
Glenfield Healthcare Limited - nil (2022 - £3574)
Dovecote Manor Healthcare Limited - nil (2022 - 7,154)
Neath Hill Care Centre Limited - nil (2022 - £3,855)
Water Hall Healthcare Limited - nil (2022 - £5794)
Castlemead Court Care Centre Limited - nil (2022 - £3,102)
Willows Care Centre Limited - nil (2022 - £5,729)
St Fillan Healthcare Limited - nil (2022 - £4,215)
Limetree Healthcare Limited - nil (2022 - £1,563)
Ashyln Healthcare Limited - nil (2022 - £704)
Goldenley Healthcare Limited - nil (2022 - £1,773)
Winifred Healthcare Limited - nil (2022- £3,251)
Okeley Healthcare Limited - nil (2022 - £ 5,919)
Longfield Healthcare Limited - nil (2022 - £ 3,462)
Sweyne Healthcare Limited - nil (2022 - £4,694)
Saffron Healthcare Limited - nil (2022 - £1,467)
Goldenley Helthcare Limited - nil (2022 - £1,773)
Lancewood Limited - nil (2022 - £1,578)
Springmarsh Homes Limited - nil (2022 - £1,481)
Abbots Care Centre Limited - nil (2022 - £2,325)
Ferrolake Limited - nil (2022 - £1,769)
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Related party transactions
(Continued)
- 22 -
Fitzwilliam Healthcare Limited - nil (2022 - £1,099)
Primrose Healthcare Limited - nil (2022 - £3,492)
St Georges Court Healthcare Limited - nil (2022 - £4,066)
Excelcare Investments Limited - £10,417 (2022 - £10,442)
Surplus funds in the company bank account are forwarded to head office in order to be transferred into the group's treasury account, hence the debit balance at the year end.
There were other transactions with the group companies in the year as the company has a group purchasing account with some suppliers.
All transactions were in the normal course of business.
There were material transactions between the company and Excelcare (Cambridge) Limited which is its' parent company.
The nature of these transactions was the transfer of surplus funds into the group's deposit account.
The balances payable to related parties at the year end date are as follows:
Castlebar Healthcare Limited - nil (2022 - £83,492)
Buchan Healthcare Limited - nil (2022 - £54,228)
Park Avenue Helathcare Limited - nil (2022 - £86,377)
Excelcare Investments Limited - nil ( 2022 - £10,422)
There were material transactions between the company and Castlebar Heathcare Limited and Park Avenue Healthcare Limited, which acts as the group's previous and current head office respectively and with Buchan Healthcare Limited which acts as the regional office. The nature of the transactions were allocations for regional and head office expenses including amounts for wages and salaries and general overheads i.e. transactions in the normal course of business.
There were material transactions between the company and Excelcare Investments Limited which is the company's landlord. The nature of the transactions were rental charges and payments.
No guarantees have been given or received.
17
Ultimate controlling party
In the opinion of the director, the ultimate parent company is Excel Portfolios Limited, a company registered in Jersey. The immediate parent company is Excelcare (Cambridge) Limited, a company incorporated in England & Wales. The ultimate joint controlling party is E. Ertosun and O. Ertosun.
The smallest undertaking for which group financial statements are prepared is Excelcare (Cambridge) Limited. The copies of these consolidated financial statements can be obtained from Kalamu House, 11 Coldbath Square, London EC1R 5HL.
The largest undertaking for which group financial statements are prepared is Excel Portfolios Limited. The copies of these consolidated financial statements can be obtained from St Paul’s Gate, Fourth Floor, 22 – 24 New Street, St Helier, Jersey JE1 4TR.
RHEOLA HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
18
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
71,270
156,826
Adjustments for:
Taxation charged
17,157
40,845
Investment income
(74)
(3)
(Gain)/loss on disposal of tangible fixed assets
-
2,951
Depreciation and impairment of tangible fixed assets
11,665
9,937
Movements in working capital:
Increase in stocks
(400)
Decrease/(increase) in debtors
114,965
(347,008)
(Decrease)/increase in creditors
(162,834)
165,093
Cash generated from operations
51,749
28,641
19
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
5,734
(210)
5,524
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mr Osman Ertosunfalse041597022022-04-012023-03-3104159702bus:Director12022-04-012023-03-3104159702bus:RegisteredOffice2022-04-012023-03-3104159702bus:Agent12022-04-012023-03-31041597022023-03-31041597022021-04-012022-03-3104159702core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3104159702core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31041597022022-03-3104159702core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3104159702core:LeaseholdImprovements2023-03-3104159702core:FurnitureFittings2023-03-3104159702core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-03-3104159702core:LeaseholdImprovements2022-03-3104159702core:FurnitureFittings2022-03-3104159702core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3104159702core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3104159702core:CurrentFinancialInstruments2023-03-3104159702core:CurrentFinancialInstruments2022-03-3104159702core:ShareCapital2023-03-3104159702core:ShareCapital2022-03-3104159702core:RetainedEarningsAccumulatedLosses2023-03-3104159702core:RetainedEarningsAccumulatedLosses2022-03-3104159702core:ShareCapital2021-03-3104159702core:RetainedEarningsAccumulatedLosses2021-03-31041597022022-03-31041597022021-03-3104159702core:LandBuildingscore:LongLeaseholdAssets2022-04-012023-03-3104159702core:LeaseholdImprovements2022-04-012023-03-3104159702core:FurnitureFittings2022-04-012023-03-3104159702core:UKTax2022-04-012023-03-3104159702core:UKTax2021-04-012022-03-310415970212022-04-012023-03-310415970212021-04-012022-03-3104159702core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-03-3104159702core:LeaseholdImprovements2022-03-3104159702core:FurnitureFittings2022-03-3104159702core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-04-012023-03-3104159702core:WithinOneYear2023-03-3104159702core:WithinOneYear2022-03-3104159702bus:PrivateLimitedCompanyLtd2022-04-012023-03-3104159702bus:FRS1022022-04-012023-03-3104159702bus:Audited2022-04-012023-03-3104159702bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP