Company Registration No. 09298452 (England and Wales)
IVY LEAF CARE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2016
PAGES FOR FILING WITH REGISTRAR
IVY LEAF CARE LIMITED
Company Information
Directors
Mr M Sandhu
Mr K Tian
(Appointed 11 May 2016)
Secretary
Mrs K Tian
Company number
09298452
Registered office
73-75 Middleton Hall Road
Birmingham
B30 1AG
Accountants
Burgis & Bullock
23-25 Waterloo Place
Leamington Spa
Warwickshire
CV32 5LA
Business address
73-75 Middleton Hall Road
Birmingham
B30 1AG
IVY LEAF CARE LIMITED
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
IVY LEAF CARE LIMITED
Balance Sheet
As at 31 October 2016
- 1 -
2016
2015
Notes
£
£
£
£
Fixed assets
Goodwill
3
1
-
Tangible assets
4
847,599
-
847,600
-
Current assets
Debtors
5
-
831,522
Cash at bank and in hand
76,097
7,177
76,097
838,699
Creditors: amounts falling due within one year
6
(218,120)
(5,365)
Net current (liabilities)/assets
(142,023)
833,334
Total assets less current liabilities
705,577
833,334
Creditors: amounts falling due after more than one year
7
(775,860)
(843,000)
Net liabilities
(70,283)
(9,666)
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
(70,383)
(9,766)
Total equity
(70,283)
(9,666)
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 31 October 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 .
he 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.
IVY LEAF CARE LIMITED
Balance Sheet (Continued)
As at 31 October 2016
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 31 July 2017 and are signed on its behalf by:
Mr M Sandhu
Director
Company Registration No. 09298452
IVY LEAF CARE LIMITED
Notes To The Financial Statements
For the year ended 31 October 2016
- 3 -
1
Accounting policies
Company information
Ivy Leaf Care Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
73-75 Middleton Hall Road, Birmingham, B30 1AG.
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 a
mounts
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.
These financial statements for the year ended 31 October 2016
are the
first
financial statements of Ivy Leaf Care Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 November 2014. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Turnover
Turnover represents amounts receivable for health care services and revenue is recognised by reference to the number of care days provided to residents.
revenue is recognised
by reference to the number of care days provided to residents.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of the business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
the
business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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.
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2016
1
Accounting policies
(continued)
- 4 -
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 Freehold
- 1% straight line
Plant and machinery
- 25% reducing balance
Fixtures, fittings & equipment
- 33.33% straight line
Computer equipment
- 33.33% straight line
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
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. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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.
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.
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2016
1
Accounting policies
(continued)
- 5 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts 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. A
m
ounts 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.
1.8
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.
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 41 (2015 - -).
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2016
- 6 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2015
-
Additions
1
At 31 October 2016
1
Amortisation and impairment
At 1 November 2015 and 31 October 2016
-
Carrying amount
At 31 October 2016
1
At 31 October 2015
-
The directors consider the goodwill to be at fair value as the business was bought under the control of the bank, as they had appointed property receivers. Therefore cost is a good approximation of fair value.
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 November 2015
-
-
-
Additions
831,202
36,228
867,430
At 31 October 2016
831,202
36,228
867,430
Depreciation and impairment
At 1 November 2015
-
-
-
Depreciation charged in the year
8,312
11,519
19,831
At 31 October 2016
8,312
11,519
19,831
Carrying amount
At 31 October 2016
822,890
24,709
847,599
At 31 October 2015
-
-
-
5
Debtors
2016
2015
Amounts falling due within one year:
£
£
Other debtors
-
831,522
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2016
- 7 -
6
Creditors: amounts falling due within one year
2016
2015
£
£
Bank loans and overdrafts
31,333
-
Trade creditors
11,484
5,365
Other taxation and social security
68,308
-
Other creditors
106,995
-
218,120
5,365
7
Creditors: amounts falling due after more than one year
2016
2015
£
£
Bank loans and overdrafts
422,860
470,000
Other creditors
353,000
373,000
775,860
843,000
The long-term loans are secured by fixed charges over the property.
8
Deferred income
2016
2015
£
£
Other deferred income
37,187
-
9
Called up share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary of £1 each
100
100
10
Related party transactions
As at 31 October 2016 £353,000 (2015: £373,000) was owed to Spring Valley Limited, a shareholder of Ivy Leaf Care Limited, by way of loan. Interest is charged annually in arrears at a rate of 3%.