Company registration number 09298452 (England and Wales)
IVY LEAF CARE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
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
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 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
1
1
Tangible assets
5
805,321
817,248
Investment properties
6
175,431
980,753
817,249
Current assets
Debtors
7
7,400
Cash at bank and in hand
883,053
1,226,826
890,453
1,226,826
Creditors: amounts falling due within one year
8
(1,088,713)
(1,230,123)
Net current liabilities
(198,260)
(3,297)
Total assets less current liabilities
782,493
813,952
Creditors: amounts falling due after more than one year
9
(243,581)
(277,640)
Provisions for liabilities
(1,617)
(406)
Net assets
537,295
535,906
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
537,195
535,806
Total equity
537,295
535,906
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 2022 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.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
IVY LEAF CARE LIMITED
Balance Sheet (Continued)
As at 31 October 2022
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 30 October 2023
Mr M Sandhu
Director
Company Registration No. 09298452
IVY LEAF CARE LIMITED
Notes To The Financial Statements
For the year ended 31 October 2022
- 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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, (modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value). The principal accounting policies adopted are set out below.
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.
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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
- 2% 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.
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2022
1
Accounting policies
(continued)
- 4 -
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in 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.
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.
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.
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2022
1
Accounting policies
(continued)
- 5 -
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.
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 leases asset are consumed.
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2022
1
Accounting policies
(continued)
- 6 -
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
21
29
4
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2021 and 31 October 2022
1
Amortisation and impairment
At 1 November 2021 and 31 October 2022
Carrying amount
At 31 October 2022
1
At 31 October 2021
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 2022
- 7 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 November 2021
867,349
76,710
944,059
Additions
1,352
1,352
At 31 October 2022
867,349
78,062
945,411
Depreciation and impairment
At 1 November 2021
54,663
72,148
126,811
Depreciation charged in the year
11,776
1,503
13,279
At 31 October 2022
66,439
73,651
140,090
Carrying amount
At 31 October 2022
800,910
4,411
805,321
At 31 October 2021
812,686
4,562
817,248
6
Investment property
2022
£
Fair value
At 1 November 2021
Additions
175,431
At 31 October 2022
175,431
The valuation is considered to be made by the director on an open market value basis by reference to market evidence of transaction prices for similar properties.
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
7,400
IVY LEAF CARE LIMITED
Notes To The Financial Statements (Continued)
For the year ended 31 October 2022
- 8 -
8
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
31,657
35,428
Trade creditors
91,673
13,587
Amounts due to owner with participating interest
283,454
295,754
Corporation tax
1,783
89,492
Other taxation and social security
15,897
27,501
Other creditors
664,249
768,361
1,088,713
1,230,123
The company's bank loan totalling £21,657 (2021: £25,428) is secured by fixed and floating charges over the company's assets.
9
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
243,581
277,640
The company's bank loan totalling £216,914 (2021: £240,973) is secured by fixed and floating charges over the company's assets.
10
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
11
Related party transactions
As at 31 October 2022 £283,454 (2021: £295,754) 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 no interest has been charged in the year.
As at 31st October 2022 £618,114 (2021: £638,328) was owed by way of loan to a connected company. This loan is interest free with no fixed date for repayment.