Company Registration No. 09298452 (England and Wales)
IVY LEAF CARE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
PAGES FOR FILING WITH REGISTRAR
IVY LEAF CARE LIMITED
Company Information
Director
Mr M Sandhu
Secretary
Mrs K Tian
Company number
09298452
Registered office
73-75 Middleton Hall Road
Birmingham
B30 1AG
Accountants
Burgis & Bullock
23-25 Waterloo Place
Warwick Street
Leamington Spa
Warwickshire
CV32 5LA
IVY LEAF CARE LIMITED
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
IVY LEAF CARE LIMITED
Balance Sheet
As at 31 October 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
1
1
Tangible assets
4
847,736
875,879
847,737
875,880
Current assets
Debtors
5
1,543,263
167,424
Cash at bank and in hand
116,838
696,660
1,660,101
864,084
Creditors: amounts falling due within one year
6
(1,984,580)
(1,261,994)
Net current liabilities
(324,479)
(397,910)
Total assets less current liabilities
523,258
477,970
Creditors: amounts falling due after more than one year
7
(344,940)
(373,370)
Provisions for liabilities
(2,775)
(6,474)
Net assets
175,543
98,126
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
175,443
98,026
Total equity
175,543
98,126
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 October 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 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
.
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 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 28 November 2020 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 2019
- 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.
1.2
Going concern
Post year end the business has been affected by Covid-19 with reduced occupancy. The Company has taken advantage of the Furlough scheme, bounce back loans and has implemented strategies to ensure the business continues to run at break even at least. The shareholders have indicated they will continue to support the business and therefore the directors are confident that the business will remain as a going concern.
1.3
Turnover
Turnover represents amounts receivable for health care services and
revenue is recognised
by reference to the number of care days provided to residents.
1.4
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.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
- 1% straight line
Plant and machinery
- 25% reducing balance
Fixtures, fittings & equipment
- 33.33% straight line
Computer equipment
- 33.33% straight line
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2019
1
Accounting policies
(continued)
- 4 -
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
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. 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.
These financial statements for the year ended 31 October 2019
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 2017. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
In accordance with the transitional exemption in section 35 of FRS 102, Ivy Leaf Care Limited has elected to retain its accounting policies for reported assets, liabilities and equity before the date of transition to FRS 102.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2019
1
Accounting policies
(continued)
- 5 -
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2019
1
Accounting policies
(continued)
- 6 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 lease
s
asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
33
41
3
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2018 and 31 October 2019
1
Amortisation and impairment
At 1 November 2018 and 31 October 2019
-
Carrying amount
At 31 October 2019
1
At 31 October 2018
1
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.
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2019
- 7 -
4
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 November 2018
867,349
17,255
77,600
7,608
969,812
Additions
-
-
1,915
-
1,915
At 31 October 2019
867,349
17,255
79,515
7,608
971,727
Depreciation and impairment
At 1 November 2018
25,541
8,490
55,103
4,799
93,933
Depreciation charged in the year
8,673
2,191
17,300
1,894
30,058
At 31 October 2019
34,214
10,681
72,403
6,693
123,991
Carrying amount
At 31 October 2019
833,135
6,574
7,112
915
847,736
At 31 October 2018
841,808
8,765
22,497
2,809
875,879
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Other debtors
1,543,263
167,424
6
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
27,289
25,665
Trade creditors
81,240
38,827
Amounts due to owner with participating interest
924,912
889,487
Corporation tax
23,892
22,503
Other taxation and social security
26,307
42,687
Other creditors
900,940
242,825
1,984,580
1,261,994
The company's bank loan totalling £27,289 (2018: £25,665) is secured by fixed and floating charges over the company's assets.
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2019
- 8 -
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
344,940
373,370
The company's bank loan totalling £344,940 (2018: £373,370) is secured by fixed and floating charges over the company's assets.
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
9
Related party transactions
As at 31 October 2019 £924,912 (2018: £889,487) was owed, by way of loan, to a company with a participating interest in Ivy Leaf Care Limited. The loan has no fixed date for repayment and Interest has been charged at 5% per annum.
As at 31 October 2019, £1,543,263 (2018: £167,424) was due from a connected company by way of loan. The loan has no fixed date for repayment and Interest has been charged at 5% per annum.