Company registration number 04663533 (England and Wales)
ARONEL COTTAGE CARE HOME LIMITED
ANNUAL REPORT AND
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
ARONEL COTTAGE CARE HOME LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
ARONEL COTTAGE CARE HOME LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
1
10,955
Tangible assets
4
106,032
122,111
Investments
5
100
100
106,133
133,166
Current assets
Stocks
2,000
2,000
Debtors
6
3,127,923
2,712,384
Cash at bank and in hand
29,729
79,748
3,159,652
2,794,132
Creditors: amounts falling due within one year
7
(226,463)
(280,219)
Net current assets
2,933,189
2,513,913
Total assets less current liabilities
3,039,322
2,647,079
Creditors: amounts falling due after more than one year
8
(34,098)
(23,439)
Net assets
3,005,224
2,623,640
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
3,005,124
2,623,540
Total equity
3,005,224
2,623,640
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
ARONEL COTTAGE CARE HOME LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 27 September 2023 and are signed on its behalf by:
J T Hitchcock
Director
Company Registration No. 04663533
ARONEL COTTAGE CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
1
Accounting policies
Company information
Aronel Cottage Care Home Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Highfield Road, Bognor Regis, West Sussex, PO22 8BQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary 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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Nursing home fees are deferred and recognised in the period in which they are utilised.
1.3
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life, 20 years.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
Over the remaining lease term
Fixtures, fittings & equipment
10% reducing balance
Motor vehicles
25% 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.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
ARONEL COTTAGE CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.8
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
ARONEL COTTAGE CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, and loans from fellow group companies, 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.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
ARONEL COTTAGE CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 6 -
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.15
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
37
37
ARONEL COTTAGE CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2022 and 30 June 2023
219,100
Amortisation and impairment
At 1 July 2022
208,145
Amortisation charged for the year
10,954
At 30 June 2023
219,099
Carrying amount
At 30 June 2023
1
At 30 June 2022
10,955
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 July 2022
327,943
288,421
616,364
Additions
6,888
60,301
67,189
Disposals
(46,535)
(46,535)
At 30 June 2023
334,831
302,187
637,018
Depreciation and impairment
At 1 July 2022
296,893
197,360
494,253
Depreciation charged in the year
37,907
25,729
63,636
Eliminated in respect of disposals
(26,903)
(26,903)
At 30 June 2023
334,800
196,186
530,986
Carrying amount
At 30 June 2023
31
106,001
106,032
At 30 June 2022
31,050
91,061
122,111
ARONEL COTTAGE CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
5
Fixed asset investments
2023
2022
£
£
Investments
100
100
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 July 2022 & 30 June 2023
100
Carrying amount
At 30 June 2023
100
At 30 June 2022
100
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
77,073
150,208
Amounts owed by group undertakings
3,043,591
2,554,637
Other debtors
7,259
7,539
3,127,923
2,712,384
7
Creditors: amounts falling due within one year
2023
2022
£
£
Obligations under finance leases
238
5,523
Trade creditors
25,038
35,076
Corporation tax
40,928
97,817
Other taxation and social security
24,747
23,276
Other creditors
15,550
14,417
Accruals and deferred income
119,962
104,110
226,463
280,219
The hire purchase balance is secured.
ARONEL COTTAGE CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
8
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
34,098
23,439
The hire purchase liability is secured on the assets to which the agreements relate as included in tangible fixed assets.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
4,643
2023-06-302022-07-01false27 September 2023CCH SoftwareCCH Accounts Production 2023.100No description of principal activityJ T HitchcockL S HitchcockJ T Hitchcock046635332022-07-012023-06-30046635332023-06-30046635332022-06-3004663533core:NetGoodwill2023-06-3004663533core:NetGoodwill2022-06-3004663533core:LandBuildings2023-06-3004663533core:OtherPropertyPlantEquipment2023-06-3004663533core:LandBuildings2022-06-3004663533core:OtherPropertyPlantEquipment2022-06-3004663533core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3004663533core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3004663533core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3004663533core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-3004663533core:CurrentFinancialInstruments2023-06-3004663533core:CurrentFinancialInstruments2022-06-3004663533core:ShareCapital2023-06-3004663533core:ShareCapital2022-06-3004663533core:RetainedEarningsAccumulatedLosses2023-06-3004663533core:RetainedEarningsAccumulatedLosses2022-06-3004663533bus:CompanySecretaryDirector12022-07-012023-06-3004663533core:Goodwill2022-07-012023-06-3004663533core:LandBuildingscore:LongLeaseholdAssets2022-07-012023-06-3004663533core:FurnitureFittings2022-07-012023-06-3004663533core:MotorVehicles2022-07-012023-06-30046635332021-07-012022-06-3004663533core:NetGoodwill2022-06-3004663533core:NetGoodwill2022-07-012023-06-3004663533core:LandBuildings2022-06-3004663533core:OtherPropertyPlantEquipment2022-06-30046635332022-06-3004663533core:LandBuildings2022-07-012023-06-3004663533core:OtherPropertyPlantEquipment2022-07-012023-06-3004663533core:WithinOneYear2023-06-3004663533core:WithinOneYear2022-06-3004663533core:Non-currentFinancialInstruments2023-06-3004663533core:Non-currentFinancialInstruments2022-06-3004663533bus:PrivateLimitedCompanyLtd2022-07-012023-06-3004663533bus:SmallCompaniesRegimeForAccounts2022-07-012023-06-3004663533bus:FRS1022022-07-012023-06-3004663533bus:AuditExemptWithAccountantsReport2022-07-012023-06-3004663533bus:Director12022-07-012023-06-3004663533bus:Director22022-07-012023-06-3004663533bus:CompanySecretary12022-07-012023-06-3004663533bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP