Registered number |
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Eastern Healthcare Limited | |
Report and accounts | |
Contents | |
Page | |
Company information | 1 |
Directors' report | 2 |
Statement of directors' responsibilities | 3 |
Strategic report | 4 |
Independent auditors' report | 5 |
Income statement | 6 |
Statement of comprehensive income | 6 |
Statement of financial position | 7 |
Statement of changes in equity | 8 |
Statement of cash flows | 9 |
Notes to the financial statements | 10 |
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Company Information |
Directors |
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Auditors |
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Excelsior House |
9 Quay View Business Park, Barnards Way |
Lowestoft |
Suffolk |
NR32 2HD |
Bankers |
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Norwich City Office |
45 London Street |
Norwich |
Norfolk |
NR2 1HX |
Registered office |
46 Rodber Way |
Lowestoft |
Suffolk |
NR42 4WJ |
Registered number |
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Registered number: |
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Directors' Report | |||||||
The directors present their report and financial statements for the year ended |
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Principal activities | |||||||
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Directors | |||||||
The following persons served as directors during the year: | |||||||
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Disclosure of information to auditors |
Each person who was a director at the time this report was approved confirms that: | |||||||
● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
● | he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
This report was approved by the board on |
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Dr PDJ Premachandra | |||||||
Director | |||||||
Eastern Healthcare Limited | |||||||
Statement of Directors' Responsibilities | |||||||
The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: | |||||||
● | select suitable accounting policies and then apply them consistently; | ||||||
● | make judgements and estimates that are reasonable and prudent; | ||||||
● | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; | ||||||
● | 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. | |||||||
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Strategic Report | |||||||
In the following paragraphs we aim to present a balanced and comprehensive review of the development and performance of our businessduring the year and its position at the year end. The company operates four care homes in Norfolk and Suffolk providing 24 hour care and support for people suffering from dementia and other mental health conditions. During the financial year the company has undergone a period of consolidation after previously acquiring two care homes in the previous period. We have continued to maintain a good level of occupancy and after re-opening and re-launching our home in Lowestoft we are now running at full occupancy there. We have also re-opened the day centre at Blyford, Lowestoft providing a valuable resource to the local community. The Key Performance Indicator's (KPI's) for the Company are occupancy rates and turnover and we continue to perform well against both of these. The population in the UK is ageing therefore this provides a good foundation for the business to continue to grow and meet our KPI targets, however our main objective is to provide a high level of person centred care and help to the people in our care homes. The main risks to the business going forward are from the regulatory authorities, limited fee growth from local authorities and from cost increases mainly due to the introduction of the living wage which has pushed up wage costs and will continue to do so in the forseeable future. In order to combat these risks as a company we ensure that we have robust governance measures in place and invest in good quality staff. To mitigate the risk of increasing costs and low fee growth from local authority our strategy will continue to be to invest in the each of the homes and maintain them to an excellent standard in order to attract privately funded clientele. On 30 November 2015, the trade, assets and liabilities of our subsidiary company, St Edmunds Ltd were hived up into this company. |
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This report was approved by the board on 6 October 2016 and signed on its behalf. | |||||||
Dr PDJ Premachandra | |||||||
Director | |||||||
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Independent auditors' report | ||
to the members of Eastern Healthcare Limited | ||
We have audited the financial statements of Eastern Healthcare Limited for the year ended 31 March 2016 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". | ||
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 auditors' 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. | ||
Respective responsibilities of directors and auditors | ||
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Scope of the audit of the accounts | ||
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Opinion on the accounts |
In our opinion the accounts: | ||
● | give a true and fair view of the state of the company's affairs as at 31 March 2016 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. |
Opinion on other matters prescribed by the Companies Act 2006 | ||
In our opinion the information given in the Directors' Report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements. | ||
Matters on which we are required to report by exception |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: | ||
● | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or | |
● | the accounts are not in agreement with the accounting records and returns; or | |
● | certain disclosures of directors’ remuneration specified by law are not made; or | |
● | we have not received all the information and explanations we require for our audit. |
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(Senior Statutory Auditor) | Excelsior House | |
for and on behalf of | 9 Quay View Business Park, Barnards Way | |
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Lowestoft | |
Accountants and Statutory Auditors | Suffolk | |
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NR32 2HD | |
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Income Statement | ||||||||
for the year ended |
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Notes | 2016 | 2015 | ||||||
£ | £ | |||||||
Turnover | 2 |
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Cost of sales | ( |
( |
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Gross profit |
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Administrative expenses | ( |
( |
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Operating profit | 3 |
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Income from investments |
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- | ||||||
Interest receivable | - |
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Interest payable | 5 | ( |
( |
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Profit on ordinary activities before taxation |
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Tax on profit on ordinary activities | 6 | ( |
( |
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Profit for the financial year and total comprehensive income |
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Statement of Financial Position | |||||||
as at |
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Notes | 2016 | 2015 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Intangible assets | 7 |
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Tangible assets | 8 |
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Investments | 9 |
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Current assets | |||||||
Stocks | 10 |
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Debtors | 11 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year | 12 | ( |
( |
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Net current liabilities | ( |
( |
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Total assets less current liabilities |
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Creditors: amounts falling due after more than one year | 13 | ( |
( |
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Provisions for liabilities | |||||||
Deferred taxation | 16 | ( |
( |
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Net assets |
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Capital and reserves | |||||||
Called up share capital | 18 |
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Profit and loss account | 20 |
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Total equity |
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Mr J Chong | |||||||
Director | |||||||
Approved by the board on |
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Company Registration Number: 08384847 | |||||||
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Statement of Changes in Equity | ||||||||||
for the year ended |
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Share | Share | Other | Profit | Total | ||||||
capital | premium | reserves | and loss | |||||||
account | ||||||||||
£ | £ | £ | £ | £ | ||||||
At 1 April 2014 |
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- | - |
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Profit for the financial year |
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Dividends - Note 21 | ( |
( |
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At 31 March 2015 |
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- | - |
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At 1 April 2015 |
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- | - |
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Profit for the financial year |
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At 31 March 2016 |
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- | - |
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Statement of Cash Flows | |||||
for the year ended |
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Notes | 2016 | 2015 | |||
£ | £ | ||||
Operating activities | |||||
Operating profit | 499,979 | 340,441 | |||
Adjustments for: | |||||
Depreciation | 72,675 | 35,341 | |||
Amortisation of goodwill | 119,936 | 79,500 | |||
692,590 | 455,282 | ||||
(Increase)/decrease in stocks | (1,118) | 435 | |||
Decrease/(increase) in debtors | 316,049 | (370,003) | |||
Decrease in creditors | (126,619) | (103,199) | |||
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( |
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Dividends received |
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- | |||
Interest received | - |
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Interest paid | ( |
( |
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Interest element of finance lease payments | ( |
- | |||
Corporation tax paid |
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- | |||
Cash generated by/(used in) operating activities |
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( |
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Investing activities | |||||
Payments to acquire intangible fixed assets | ( |
- | |||
Payments to acquire tangible fixed assets | ( |
( |
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Payments to acquire investments | - | ( |
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Proceeds from sale of investments |
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- | |||
Cash used in investing activities | ( |
( |
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Financing activities | |||||
Equity dividends paid | - | ( |
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Repayment of loans | ( |
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Capital element of finance lease payments |
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Cash (used in)/generated by financing activities | ( |
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Net cash generated/(used) | |||||
Cash generated by/(used in) operating activities |
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( |
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Cash used in investing activities | ( |
( |
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Cash (used in)/generated by financing activities | ( |
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Net cash generated/(used) |
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( |
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Cash and cash equivalents at 1 April | 11,828 | 98,644 | |||
Cash and cash equivalents at 31 March | 315,981 | 11,828 | |||
Cash and cash equivalents comprise: | |||||
Cash at bank |
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Eastern Healthcare Limited | ||||||||
Notes to the Accounts | ||||||||
for the year ended 31 March 2016 | ||||||||
1 | Summary of significant accounting policies | |||||||
Statement of compliance | ||||||||
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'. | ||||||||
Basis of preparation | ||||||||
The financial statements are prepared in sterling, which is the functional currency of the entity. |
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Transition to FRS 102 | ||||||||
The entity transitioned from previous UK GAAP to FRS 102 as at 1 April 2014. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 23. | ||||||||
Judgements and key sources of estimation uncertainty | ||||||||
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. | ||||||||
Turnover | ||||||||
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Intangible fixed assets | ||||||||
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Tangible fixed assets | ||||||||
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Freehold property | 2% straight line | |||||||
Fixtures, fittings and equipment | 15% straight line | |||||||
Motor Vehicles | 25% straight line | |||||||
Office equipment | 25% straight line | |||||||
Goodwill | 10% straight line |
Investments | ||||||||
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Stocks | ||||||||
The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation | ||||||||
Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions | ||||||||
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Leased assets | ||||||||
The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Financial Instruments | ||||||||
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Such assets are subsequently carried at amortised cost using the effective interest method. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
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2 | Analysis of turnover | 2016 | 2015 | |||||
£ | £ | |||||||
Sales |
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Day Care |
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By geographical market: | ||||||||
UK |
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3 | Operating profit | 2016 | 2015 | |||||
£ | £ | |||||||
This is stated after charging: | ||||||||
Depreciation of owned fixed assets |
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Depreciation of assets held under finance leases and hire purchase contracts |
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Amortisation of goodwill |
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Auditors' remuneration for audit services |
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4 | Staff costs | 2016 | 2015 | |||||
£ | £ | |||||||
Wages and salaries |
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Social security costs |
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Average number of employees during the year | Number | Number | ||||||
Administration |
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Care Staff |
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5 | Interest payable | 2016 | 2015 | |||||
£ | £ | |||||||
Bank loans and overdrafts |
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Other loans |
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Finance charges payable under finance leases and hire purchase contracts |
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- | ||||||
Dividends on shares classified as financial instruments |
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6 | Taxation | 2016 | 2015 | |||||
£ | £ | |||||||
Analysis of charge in period | ||||||||
Current tax: | ||||||||
UK corporation tax on profits of the period |
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Deferred tax: | ||||||||
Origination and reversal of timing differences |
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Tax on profit on ordinary activities |
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Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2016 | 2015 | |||||||
£ | £ | |||||||
Profit on ordinary activities before tax |
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£ | £ | |||||||
Profit on ordinary activities multiplied by the standard rate of corporation tax |
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Effects of: | ||||||||
Expenses not deductible for tax purposes | ( |
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Capital allowances for period in excess of depreciation | ( |
( |
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Utilisation of tax losses | ( |
( |
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Current tax charge for period |
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- | ||||||
7 | Intangible fixed assets | £ | ||||||
Goodwill: | ||||||||
Cost | ||||||||
At 1 April 2015 |
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Additions |
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At 31 March 2016 |
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Amortisation | ||||||||
At 1 April 2015 |
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Provided during the year |
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At 31 March 2016 |
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Carrying amount | ||||||||
At 31 March 2016 |
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At 31 March 2015 |
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8 | Tangible fixed assets | |||||||
Land and buildings | Plant and machinery | Office Equipment | Total | |||||
At cost | At cost | At cost | ||||||
£ | £ | £ | £ | |||||
Cost or valuation | ||||||||
At 1 April 2015 |
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Additions |
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At 31 March 2016 |
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Depreciation | ||||||||
At 1 April 2015 |
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Charge for the year |
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At 31 March 2016 |
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Carrying amount | ||||||||
At 31 March 2016 |
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At 31 March 2015 |
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2016 | 2015 | |||||||
£ | £ | |||||||
Carrying value of plant and machinery included above held under finance leases and hire purchase contracts |
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9 | Investments | |||||||
Shares in subsidiary undertakings | ||||||||
Cost | ||||||||
At 1 April 2015 |
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Amounts written off | (1,617,430) | |||||||
Net book value | 18,000 | |||||||
St Edmunds Limted is a wholly owned subsidiary company, incorporated in England. Its principle activity is that of a residential care home for the elderly. | ||||||||
2015 | 2014 | |||||||
£ | £ | |||||||
Aggregate capital and reserves | 635,191 | 450,314 | ||||||
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10 | Stocks | 2016 | 2015 | |||||
£ | £ | |||||||
Finished goods and goods for resale |
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11 | Debtors | 2016 | 2015 | |||||
£ | £ | |||||||
Trade debtors |
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Other debtors | - |
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Prepayments and accrued income |
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12 | Creditors: amounts falling due within one year | 2016 | 2015 | |||||
£ | £ | |||||||
Bank loans |
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Obligations under finance lease and hire purchase contracts |
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Trade creditors |
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Corporation tax |
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- | ||||||
Other taxes and social security costs |
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Other creditors |
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Accruals and deferred income |
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13 | Creditors: amounts falling due after one year | 2016 | 2015 | |||||
£ | £ | |||||||
Shares classified as financial liabilities |
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Bank loans |
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Obligations under finance lease and hire purchase contracts |
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Other creditors |
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14 | Loans | 2016 | 2015 | |||||
£ | £ | |||||||
Loans not wholly repayable within five years: | ||||||||
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Blyford, repayment terms 25 yrs, Interest rate 3.01% | 676,084 | 680,000 | ||||||
3,562,072 | 3,696,219 | |||||||
Analysis of maturity of debt: | ||||||||
Within one year or on demand |
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Between one and two years |
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Between two and five years |
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After five years |
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15 | Obligations under finance leases and hire purchase | 2016 | 2015 | |||||
contracts | £ | £ | ||||||
Amounts payable: | ||||||||
Within one year |
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Within two to five years |
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16 | Deferred taxation | 2016 | 2015 | |||||
£ | £ | |||||||
Accelerated capital allowances |
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2016 | 2015 | |||||||
£ | £ | |||||||
At 1 April |
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Charged to the profit and loss account |
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At 31 March |
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17 | Financial instruments | |||||||
The carrying amount for each category of financial Instrument is as follows: | ||||||||
2016 | 2015 | |||||||
£ | £ | |||||||
Financial assets | ||||||||
Debt intruments measured at amortised cost | 58,103 | 39,084 | ||||||
Financial liabilities | ||||||||
Financial liabilities measured at amortised cost | 689,536 | 822,343 | ||||||
Loan commitments measured at cost less impairment | 4,062,072 | 4,196,219 | ||||||
18 | Share capital | Nominal | 2016 | 2016 | 2015 | |||
value | Number | £ | £ | |||||
Allotted, called up and fully paid: | ||||||||
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£ |
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£ |
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Nominal | Number | Amount | ||||||
value | £ | |||||||
Shares classed as financial liabilities: | ||||||||
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£ |
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The preference shares can be redeemed at any point by the shareholder, subject to company cash flow. The shareholders have no rights as to capital or voting, they are entitled to preferential rights to dividends equal to 0.0001% of the original subscription price payable on an annual basis. | ||||||||
19 | Reserves | |||||||
Profit and loss account - This reserve records retained earnings and accumulated losses. | ||||||||
20 | Profit and loss account | 2016 | 2015 | |||||
£ | £ | |||||||
At 1 April |
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Profit for the financial year |
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Dividends | - | ( |
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At 31 March |
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21 | Dividends | 2016 | 2015 | |||||
£ | £ | |||||||
Dividends on ordinary shares (note 20) | - |
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22 | Directors' advances, creditd and guarantees | |||||||
Description and conditions | B/fwd | Paid | Repaid | C/fwd | ||||
£ | £ | £ | £ | |||||
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[Loan 1] |
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- | ( |
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[Loan 1] |
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( |
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[Loan 1] |
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- | ( |
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[Loan 1] |
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( |
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425,134 | 50 | (135,186) | 289,998 | |||||
23 | Related party transactions | |||||||
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24 | Legal form of entity and country of incorporation | |||||||
Eastern Healthcare Limited is a limited company incorporated in England. | ||||||||
25 | Principal place of business | |||||||
The address of the company's principal place of business and registered office is: | ||||||||
46 Rodber Way | ||||||||
Lowestoft | ||||||||
Suffolk | ||||||||
NR42 4WJ | ||||||||
26 | Transition to FRS 102 | |||||||
These are the first financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 April 2014. No transitional adjustments were required in equity or profit or loss for the year. |