Company registration number 07787142 (England and Wales)
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
COMPANY INFORMATION
Directors
Mr Osman Ertosun
Julienas Limited
Company number
07787142
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
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Income and expenditure account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 24
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Dinardo Care & Supports Limited operates 20 homes across London (2022: 20 homes). In all, the company operates 345 beds (2022: 343 beds).
Review of the business
The results of the year and the financial position of the company were considered satisfactory by the directors.
The company further consolidated its position over the prior year, with demand continuing for its services, through a long-established reputation amongst stakeholders for quality.
Income was up by 24% over the prior year to £12.8m due to the higher rates and occupancy of homes which helped to offset an increase in operating costs of 14%. The filling up of the new home and continued pressure on pay rates and the need to attract and retain quality staff led to an 10% increase in employment costs.
The gross surplus increased from 60% in 2022 to 63%.
Principal risks and uncertainties
Compliance Risks
The challenges that we face have predominantly been associated with maintaining our reputation amongst commissioners and other key stakeholders.
It is important that we maintain good governance across all our homes, so that we meet regulations; this must be effective and include assurance, auditing systems and robust processes. These must assess, monitor, and drive improvement in the quality and safety of the services provided, including the quality of the experience for people using the service. The systems and processes must also assess, monitor, and mitigate any risks relating the health, safety and welfare of people using services and others. It is also important that we continually evaluate and seek to improve our governance and auditing practice.
Through such evaluation, we have identified the need for a digital transformation program across our care, compliance, people, and financial systems. The digital transformation will bring integration; faster access to important information; better levels of care; maximising resources; improved outcomes and much more, this will all aid our mission to be 80% paperless by 2025.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Impact on insurance policies
In these uncertain times, the impact of COVID-19 has led insurers to review potential financial quantum and exposures around potential liability claims scenarios.
The insurance premium was affected by these changes, with our insurance premium increasing by 80% from April 2021, with no significant decrease in premium for the April 2022 renewal.
Effect of Energy Prices
At the start of the Covid 19 pandemic and the associated lockdowns, manufacturing reduced significantly so energy prices collapsed. Following the relaxation of restrictions, demand for energy increased from the low levels seen during the pandemic, and we saw prices starting to increase from March 2021. By May 2021, gas prices were higher than those experienced before the pandemic. Prices have continued on an upward trend, with the further opening up of the world economy, uncertainty with Nordstream 1 & 2 pipelines and Russia’s invasion of Ukraine, in February 2022.
The company has been impacted by the rising cost of gas and electricity supplies, as care providers, the company did not benefit from the domestic price caps which were in place during this period. We have been insulated to some extent by a long term gas contract covering some of the homes. We continue to monitor the energy markets closely and take action following advice from specialists in this area.
The government has announced the Energy Bill Relief Scheme for non-domestic customers from 1 October 2022 to 31 March 2023 which should reduce the exposure of further rising energy costs, during the winter period.
COVID-19 and Going Concern
The demand for beds has remained strong over the year and into the new financial year, with the group continuing to operate 9 care homes. At the start of the year, total occupancy of the group was 572 and at the end of the financial year occupancy was 572, therefore maintaining a constant level. However, with an increased demand from the self-funder market, private occupancy has increased significantly within these numbers.
The Director has assessed the value of reserves and the operations of the group and does not consider that there are material uncertainties related to events or conditions that cast significant doubts on the group’s ability to continue as a going concern.
The financial statements are therefore prepared on a going concern basis.
Financial risk management
The company is not exposed to material levels of credit, liquidity and interest rate risks. Management monitors the net debt, banking facilities and cash flows on a regular basis and ensures that adequate working capital facilities are in place.
Financial instruments
The company's policy is to finance its operations from retained surpluses, inter-company borrowings and bank facilities.
The financial instruments utilised by the company are short-term cash deposits and items such as trade creditors, which arise directly from its operations.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Key Performance Indicators
The Director considers the financial key performance indicators to be turnover, gross profit margin, profit before tax and net profit. For the year ended 31 March 2023, revenue increased to £12.8m (2022 - £10.3m), with a slight increase in gross profit margin of 3% - from 60% in 2022 to 63%. The company made a net loss of 0.6m (2022 - £1.2m)
The key non-financial indicators are home occupancy and the quality of care provided to residents. The average occupancy rate was 95.5% (2022: 94%).
Future Developments
Management remain vigilant on the quality of each of our services, with each service constantly reviewed for continued improvement, with staff and management receiving ongoing support and training to enhance standards.
There is further opportunity to expand provision through both existing and new services and management continue to proactively explore these options.
The company moves into 2022/24 in a strong position, but remains cautious about the outlook due to the challenging employment situation and cost inflation.
Going concern
The Directors have assessed the value of reserves and the operations of the company and does not consider that there are material uncertainties related to events or conditions that cast significant doubts on the company’s ability to continue as a going concern.
Summary
Overall 2022/23 was a successful year for the company with the delivery of high quality and well-received services despite a challenging year and a reduction in operating profit.
Mr Osman Ertosun
Director
18 December 2023
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
The directors present their 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 providing care, assistance and social housing to needy people.
Results and dividends
The results for the year are set out on page 10.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Osman Ertosun
Julienas Limited
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr Osman Ertosun
Director
18 December 2023
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit 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.
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.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DINARDO CARE AND SUPPORTS LTD
- 6 -
Opinion
We have audited the financial statements of Dinardo Care and Supports Ltd (the 'company') for the year ended 31 March 2023 which comprise the income and expenditure 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 deficit 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 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.However, because not all future events or conditions can be predicted, this statement is not 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 directors are 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DINARDO CARE AND SUPPORTS LTD
- 7 -
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 directors' 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.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 of the company, including the Companies Act 2006, taxation legislation and data protection.
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.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DINARDO CARE AND SUPPORTS LTD
- 8 -
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.
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.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DINARDO CARE AND SUPPORTS LTD
- 9 -
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
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
Income
12,822,680
10,325,746
Cost of sales
(4,752,137)
(4,167,763)
Gross surplus
8,070,543
6,157,983
Distribution costs
(49,424)
(73,982)
Administrative expenses
(8,604,443)
(7,345,264)
Other operating income
15,741
Operating deficit
3
(583,324)
(1,245,522)
Interest receivable and similar income
5
3,192
Deficit before taxation
(580,132)
(1,245,522)
Tax on deficit
Deficit for the financial year
(580,132)
(1,245,522)
The income and expenditure account has been prepared on the basis that all operations are continuing operations.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
£
£
Deficit for the year
(580,132)
(1,245,522)
Other comprehensive income
-
-
Total comprehensive income for the year
(580,132)
(1,245,522)
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
6,030,838
5,184,685
Current assets
Stocks
7
8,300
6,600
Debtors
8
745,908
747,192
Cash at bank and in hand
733,238
889,550
1,487,446
1,643,342
Creditors: amounts falling due within one year
9
(8,695,346)
(7,424,957)
Net current liabilities
(7,207,900)
(5,781,615)
Net liabilities
(1,177,062)
(596,930)
Reserves
Income and expenditure account
(1,177,062)
(596,930)
Members' funds
(1,177,062)
(596,930)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 18 December 2023 and are signed on its behalf by:
Mr Osman Ertosun
Director
Company registration number 07787142 (England and Wales)
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Income and expenditure
£
Balance at 1 April 2021
648,592
Year ended 31 March 2022:
Deficit and total comprehensive income
(1,245,522)
Balance at 31 March 2022
(596,930)
Year ended 31 March 2023:
Deficit and total comprehensive income
(580,132)
Balance at 31 March 2023
(1,177,062)
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
16
1,048,340
1,472,776
Income taxes refunded
142,456
Net cash inflow from operating activities
1,190,796
1,472,776
Investing activities
Purchase of tangible fixed assets
(2,045,716)
(2,069,343)
Proceeds from disposal of tangible fixed assets
695,416
351,435
Interest received
3,192
Net cash used in investing activities
(1,347,108)
(1,717,908)
Net decrease in cash and cash equivalents
(156,312)
(245,132)
Cash and cash equivalents at beginning of year
889,550
1,134,682
Cash and cash equivalents at end of year
733,238
889,550
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information
Dinardo Care and Supports Ltd is a private company limited by guarantee 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
At the time of approving the financial statements, the company has a net current liability of £7,207,900 (2022: £5,781,615) and a net liability of £1,177,062 (2022: £596,930).true
The company generates cashflow from its operations.
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.
The Director notes that should the company have insufficient working capital, the parent company will provide support to ensure that the company meets its financial obligations.
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
Income and expenditure
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:
Leasehold improvements
straight line on cost over 10 years
Fixtures, fittings & equipment
25% 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 surplus or deficit.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
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.
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 surplus or deficit, 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 surplus or deficit, 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.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in surplus or deficit, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through surplus and deficit, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in surplus or deficit.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in surplus or deficit.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in surplus or deficit in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Employee benefits
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
1.12
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.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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 6.
Staff cost accrual
The monetary liability for employees’ accrued annual leave at the reporting date is recognised as an expense accrual.
3
Operating deficit
2023
2022
Operating deficit for the year is stated after charging/(crediting):
£
£
Government grants
-
(15,741)
Fees payable to the company's auditor for the audit of the company's financial statements
11,276
10,200
Depreciation of owned tangible fixed assets
504,147
508,389
(Profit)/loss on disposal of tangible fixed assets
-
19
Operating lease charges
5,786,306
5,565,746
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Care Staff
94
81
Administration
5
19
Managerial
12
13
Total
111
113
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,265,398
3,775,003
Pension costs
65,378
59,836
4,330,776
3,834,839
5
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
3,192
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through surplus or deficit
3,192
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
6
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
6,608,767
851,470
56,125
7,516,362
Additions
1,922,088
123,628
2,045,716
Transfers
(695,416)
(695,416)
At 31 March 2023
7,835,439
975,098
56,125
8,866,662
Depreciation and impairment
At 1 April 2022
1,729,806
569,943
31,928
2,331,677
Depreciation charged in the year
416,157
81,941
6,049
504,147
At 31 March 2023
2,145,963
651,884
37,977
2,835,824
Carrying amount
At 31 March 2023
5,689,476
323,214
18,148
6,030,838
At 31 March 2022
4,878,961
281,527
24,197
5,184,685
Development costs amounting to £695,416 for self contained bungalows were subsequently transferred to the company's landlord as the legal rights over the land and land development rests with the landlord.
7
Stocks
2023
2022
£
£
Food and consumables
8,300
6,600
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
247,524
180,420
Corporation tax recoverable
730
143,186
Other debtors
431,509
351,288
Prepayments and accrued income
66,145
72,298
745,908
747,192
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
172,004
120,360
Taxation and social security
92,541
79,165
Other creditors
8,087,136
6,936,754
Accruals and deferred income
343,665
288,678
8,695,346
7,424,957
10
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
65,378
59,836
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.
11
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
12
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
5,792,429
5,571,983
Between two and five years
7,948,730
11,864,409
In over five years
3,652,060
3,952,788
17,393,219
21,389,180
13
Capital commitments
Amounts contracted for but not provided in the financial statements in respect of leasehold improvements related to the refurbishment of two leasehold properties are as follows:
2023
2022
£
£
Acquisition of tangible fixed assets
-
1,100,000
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
14
Related party transactions
The following amounts were outstanding at the reporting end date:
The balances payable to related parties at the year end date are as follows:
Castlebar Healthcare Limited - nil (2022 - £3,923,033)
Rheola Healthcare Limited - nil (2022 - £77,296)
Pinefield Limited - nil (2022 - £228,722)
Majestic Properties Limited - £652,381 (2022 - £539,901)
Latchworth Limited - £ 162,452 (2022 - £1,027,045)
Park Avenue Healthcare Limited - nil (2022 - £821,335)
Excelcare Cambridge Limited - £7,210,197 (2022 - nil)
There were material transactions between the company and Castlebar Healthcare Limited and Park Avenue Healthcare Limited which act as the head offices. The outstanding balances at year end have been re-assigned to Excelcare (Cambridge) Limited.
The nature of the transactions were allocations for head office expenses including amounts for wages and general overheads any payments for the outstanding balance.
There were material transactions between the company, Pinefield Limited, Latchworth Limited and Majestic Properties Limited, who are the landlords for the properties the company occupies. Movements represent invoices and payments for rental charges.
There were material transactions between the company and Rheola Healthcare Limited; the nature of the transactions were group purchasing during the normal course of the business. The outstanding balance at year end has been re-assigned to Excelcare (Cambridge) Limited.
There were also material transactions between the company and Excelcare (Cambridge) Limited representing the re-assignment of the inter group balances
Purchases (rent)
2023
2022
£
£
Majestic Properties Limited
944,920
944,920
Latchworth Limited
1,874,153
1,874,153
Pinefield Limited
2,336,530
2,336,530
15
Directors' transactions
During the year, the director received £107,315 (2022 - £107,315) for the letting of a property to the company.
DINARDO CARE AND SUPPORTS LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
16
Cash generated from operations
2023
2022
£
£
Deficit for the year after tax
(580,132)
(1,245,522)
Adjustments for:
Investment income
(3,192)
(Gain)/loss on disposal of tangible fixed assets
-
19
Depreciation and impairment of tangible fixed assets
504,147
508,389
Movements in working capital:
Increase in stocks
(1,700)
(100)
Increase in debtors
(141,172)
(159,270)
Increase in creditors
1,270,389
2,369,260
Cash generated from operations
1,048,340
1,472,776
17
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
889,550
(156,312)
733,238
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