REGISTERED NUMBER: 10931562 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 August 2022 |
for |
Holmwood House Holdings Limited |
REGISTERED NUMBER: 10931562 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 August 2022 |
for |
Holmwood House Holdings Limited |
Holmwood House Holdings Limited (Registered number: 10931562) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 August 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Notes to the Consolidated Financial Statements | 14 |
Holmwood House Holdings Limited |
Company Information |
for the Year Ended 31 August 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
Registered Auditors |
962 Eastern Avenue |
Newbury Park |
Ilford |
Essex |
IG2 7JD |
BANKERS: | Natwest Westminster Bank PLC |
Chatham Customer Service Centre |
Western Avenue |
Waterside Court, Chatham Maritime |
Chatham |
Kent |
ME4 4RT |
Holmwood House Holdings Limited (Registered number: 10931562) |
Group Strategic Report |
for the Year Ended 31 August 2022 |
The directors present their strategic report of the company and the group for the year ended 31 August 2022. |
REVIEW OF BUSINESS |
Holmwood House Holding Limited (the Company) is a holding company who owns a collection of wholly owned subsidiaries named, Holmwood House Care Limited (HHCL), White Gables Care Limited (WGCL), Quinton House Limited and Care Billing Limited. During the year in review an investment into a new subsidiary named Summercare Limited was made on 24th April 2022 obtaining 61.83% of Summercare Limited share capital. |
The subsidiaries of Holmwood House Holdings Limited each hold and operate the trade, assets, and central support functions. |
The group continues to operate within the health and social care sector markets with its focus on providing elderly care and with new acquisition of Summercare. Funding is raised through local authorities and private funders. The subsidiaries of Springfield Holdings Limited hold and operate the trade, assets, and central support functions. |
The results for the year are set out in the consolidated income statement on page 8 and the financial position of the Group as at 31 August 2022 is set out in the consolidated balance sheet on page 10.Group revenue for the year from continuing operations was £7.1M (2021: £3.9M). The group has trading profits in the year totalling £56,727 (2021: 291,076) and a gross profit margin of 28.07% (2021: 30.81%). |
The group continues to compete in highly competitive markets with most competition being local. To successfully gain new customers it is based on relevant catchment areas, local procurement of tenders and referrals from existing users of the home. Regulatory requirement across the group remains similar in relation to elderly care and specialised services. The group are all regulated by the same body, The Care Quality Commission. |
Covid-19 pandemic has continued to affect the availability of nursing and care staff. This impacts the group's ability to maximise occupancy across the homes. The receipt of grants from government have continued to contribute towards the costs of managing the Covid-19 pandemic. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Given the size and nature of the group, the financial risks are not complex in nature and the director takes responsibility for managing those risks. |
The directors believe that the key business risks are in respect of recovering from COVID-19 pandemic and competition from within the UK. The most fundamental issues faced by the group are: |
- Budgeted occupancy levels not being achieved with negative effects on profit |
- Complying with the stringent regulations of the Care Quality Commission under which Care Homes operate. |
- Failure to comply with regulation, possibly leading in extreme cases to revocation of the care home's registration. |
- Achieving quality standards. Failure to achieve quality standards, possibly leading to suspension of new admissions to the home. |
- Attracting and retaining high quality, qualified nursing and other staff. Failure to achieve this would adversely impact admissions. |
- Meeting bank covenants. |
However the directors feel that the management team in place and current performance means they are able to face these risks and mitigate them accordingly. |
Holmwood House Holdings Limited (Registered number: 10931562) |
Group Strategic Report |
for the Year Ended 31 August 2022 |
FUTURE DEVELOPMENTS |
The directors anticipate despite slowly recovering from the Covid-19 pandemic the business environment will remain competitive and show continued growth. The directors constantly review the care home sector and will continue to consider opportunities for acquisitions and disposals as they arise. |
ON BEHALF OF THE BOARD: |
Holmwood House Holdings Limited (Registered number: 10931562) |
Report of the Directors |
for the Year Ended 31 August 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 August 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 August 2022. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2021 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
Charitable donations during the year amounted to £6,967 (2021: £Nil). |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director 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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Alderton Accountancy Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Holmwood House Holdings Limited |
Opinion |
We have audited the financial statements of Holmwood House Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 August 2022 and of the group's 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. |
Basis for opinion |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Holmwood House Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Holmwood House Holdings Limited |
Use of our 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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Certified Accountants |
Registered Auditors |
962 Eastern Avenue |
Newbury Park |
Ilford |
Essex |
IG2 7JD |
Holmwood House Holdings Limited (Registered number: 10931562) |
Consolidated |
Income Statement |
for the Year Ended 31 August 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 7,040,068 | 3,985,373 |
Cost of sales | 5,063,766 | 2,757,495 |
GROSS PROFIT | 1,976,302 | 1,227,878 |
Administrative expenses | 806,333 | 439,803 |
1,169,969 | 788,075 |
Other operating income | 225,796 | 118,298 |
OPERATING PROFIT | 4 | 1,395,765 | 906,373 |
Interest payable and similar expenses | 5 | 1,339,038 | 615,297 |
PROFIT BEFORE TAXATION | 56,727 | 291,076 |
Tax on profit | 6 | 15,438 | 64,037 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 39,795 | 227,039 |
Non-controlling interests | 1,494 | - |
41,289 | 227,039 |
Holmwood House Holdings Limited (Registered number: 10931562) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 August 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 41,289 | 227,039 |
OTHER COMPREHENSIVE INCOME |
Property revaluation | 1,905,175 | - |
Bonus issue | (100 | ) | - |
Acquisition of subsidiary | 94,040 | - |
Income tax relating to components of other comprehensive income |
(361,983 |
) |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
1,637,132 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,678,421 |
227,039 |
Total comprehensive income attributable to: |
Owners of the parent | 1,732,927 | 227,039 |
Non-controlling interests | (54,506 | ) | - |
1,678,421 | 227,039 |
Holmwood House Holdings Limited (Registered number: 10931562) |
Consolidated Statement of Financial Position |
31 August 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 620,474 | 543,750 |
Tangible assets | 9 | 12,635,139 | 8,023,009 |
Investments | 10 | - | - |
13,255,613 | 8,566,759 |
CURRENT ASSETS |
Debtors | 11 | 599,354 | 225,739 |
Cash at bank and in hand | 1,107,254 | 970,164 |
1,706,608 | 1,195,903 |
CREDITORS |
Amounts falling due within one year | 12 | 2,293,631 | 1,367,116 |
NET CURRENT LIABILITIES | (587,023 | ) | (171,213 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
12,668,590 |
8,395,546 |
CREDITORS |
Amounts falling due after more than one year |
13 |
(9,292,784 |
) |
(7,786,926 |
) |
PROVISIONS FOR LIABILITIES | 15 | (414,003 | ) | - |
NET ASSETS | 2,961,803 | 608,620 |
CAPITAL AND RESERVES |
Called up share capital | 16 | 281 | 100 |
Share premium | 17 | 457,483 | - |
Revaluation reserve | 17 | 1,543,192 | - |
Retained earnings | 17 | 742,255 | 608,520 |
SHAREHOLDERS' FUNDS | 2,743,211 | 608,620 |
NON-CONTROLLING INTERESTS | 218,592 | - |
TOTAL EQUITY | 2,961,803 | 608,620 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 March 2023 and were signed on its behalf by: |
F J Raja - Director |
Holmwood House Holdings Limited (Registered number: 10931562) |
Company Statement of Financial Position |
31 August 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Share premium |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's loss for the financial year | (15,570 | ) | (8,280 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Holmwood House Holdings Limited (Registered number: 10931562) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 August 2022 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 September 2020 | 100 | 381,481 | - |
Changes in equity |
Total comprehensive income | - | 227,039 | - |
Balance at 31 August 2021 | 100 | 608,520 | - |
Changes in equity |
Issue of share capital | 181 | - | 457,483 |
Total comprehensive income | - | 133,735 | - |
281 | 742,255 | 457,483 |
Non-controlling interest arising on business combination |
- |
- |
- |
Balance at 31 August 2022 | 281 | 742,255 | 457,483 |
Revaluation | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 September 2020 | - | 381,581 | - | 381,581 |
Changes in equity |
Total comprehensive income | - | 227,039 | - | 227,039 |
Balance at 31 August 2021 | - | 608,620 | - | 608,620 |
Changes in equity |
Issue of share capital | - | 457,664 | - | 457,664 |
Total comprehensive income | 1,543,192 | 1,676,927 | (54,506 | ) | 1,622,421 |
1,543,192 | 2,743,211 | (54,506 | ) | 2,688,705 |
Non-controlling interest arising on business combination |
- |
- |
273,098 |
273,098 |
Balance at 31 August 2022 | 1,543,192 | 2,743,211 | 218,592 | 2,961,803 |
Holmwood House Holdings Limited (Registered number: 10931562) |
Company Statement of Changes in Equity |
for the Year Ended 31 August 2022 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 September 2020 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 August 2021 | ( |
) | ( |
) |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 August 2022 | ( |
) |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 August 2022 |
1. | STATUTORY INFORMATION |
Holmwood House Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
In the application of the group'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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price and are subsequently measured as follows: Debt instruments are subsequently measured at amortised cost and commitments to receive a loan and to make a loan to another entity are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. |
All other financial instruments, including derivatives, are initially recognised at fair value, which is normally the transaction price and are subsequently measured at fair value, with any changes recognised in profit or loss. |
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. |
All equity instruments regardless of significance, and other financial assets that are individually significant, are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2022 |
3. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 3,831,793 | 2,201,684 |
Social security costs | 317,227 | 148,006 |
Other pension costs | 70,485 | 37,649 |
4,219,505 | 2,387,339 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Average number of employees |
2022 | 2021 |
£ | £ |
Directors' remuneration | 12,160 | - |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2022 | 2021 |
£ | £ |
Other operating leases | 5,699 | - |
Depreciation - owned assets | 5,857 | 7,105 |
Loss on disposal of fixed assets | 3,407 | - |
Goodwill amortisation | 32,500 | 32,500 |
Auditors' remuneration | 20,200 | 11,400 |
Auditors' remuneration for non audit work | 1,680 | 6,480 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest | 1,928 | - |
Bank loan interest | 163,670 | 96,857 |
RBR Loan Interest | 1,173,440 | 518,440 |
1,339,038 | 615,297 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 15,438 | 64,037 |
Tax on profit | 15,438 | 64,037 |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2022 |
6. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Property revaluation | 1,905,175 | (361,983 | ) | 1,543,192 |
Bonus issue | (100 | ) | - | (100 | ) |
Acquisition of subsidiary | 94,040 | - | 94,040 |
1,999,115 | (361,983 | ) | 1,637,132 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 September 2021 | 650,000 |
Additions | 109,224 |
At 31 August 2022 | 759,224 |
AMORTISATION |
At 1 September 2021 | 106,250 |
Amortisation for year | 32,500 |
At 31 August 2022 | 138,750 |
NET BOOK VALUE |
At 31 August 2022 | 620,474 |
At 31 August 2021 | 543,750 |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2022 |
9. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
Freehold | to | and | Motor |
property | property | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 September 2021 | 8,001,699 | - | 14,281 | 24,840 | 8,040,820 |
Additions | - | 117,566 | 2,120 | - | 119,686 |
Revaluations | 1,608,301 | - | - | - | 1,608,301 |
Reclassification/transfer | 2,890,000 | - | - | - | 2,890,000 |
At 31 August 2022 | 12,500,000 | 117,566 | 16,401 | 24,840 | 12,658,807 |
DEPRECIATION |
At 1 September 2021 | - | - | 6,943 | 10,868 | 17,811 |
Charge for year | - | - | 2,364 | 3,493 | 5,857 |
At 31 August 2022 | - | - | 9,307 | 14,361 | 23,668 |
NET BOOK VALUE |
At 31 August 2022 | 12,500,000 | 117,566 | 7,094 | 10,479 | 12,635,139 |
At 31 August 2021 | 8,001,699 | - | 7,338 | 13,972 | 8,023,009 |
Included in cost or valuation of land and buildings is freehold land of £6,225,000 (2021 - £6,225,000) which is not depreciated. |
Cost or valuation at 31 August 2022 is represented by: |
Improvements | Fixtures |
Freehold | to | and | Motor |
property | property | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2016 | 1,433,791 | - | - | - | 1,433,791 |
Valuation in 2022 | 1,608,301 | - | - | - | 1,608,301 |
Cost | 9,457,908 | 117,566 | 16,401 | 24,840 | 9,616,715 |
12,500,000 | 117,566 | 16,401 | 24,840 | 12,658,807 |
Freehold land and buildings were valued on an open market basis on 31 August 2022 by Directors . |
The Directors are of the opinion that the value of freehold land and buildings is not materially different from their fair value at the date of the statement of financial position. |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2022 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 September 2021 |
Additions |
At 31 August 2022 |
NET BOOK VALUE |
At 31 August 2022 |
At 31 August 2021 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 962 Eastern Avenue, Ilford, Essex, United Kingdom, IG2 7JD. |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 962 Eastern Avenue, Ilford, Essex, United Kingdom, IG2 7JD. |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2022 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: 962 Eastern Avenue, Ilford, Essex, United Kingdom, IG2 7JD. |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
Registered office: 962 Eastern Avenue, Ilford, Essex, United Kingdom, IG2 7JD. |
Nature of business: |
% |
Class of shares: | holding |
2022 |
£ |
Aggregate capital and reserves |
Subsequent to year end on 30th January 2023 Holmwood House Holdings Limited disposed of its interest in the Share Capital of Quinton House Care Limited. The disposal of its interest was at cost. This transaction has immaterial impact. |
Registered office: 962 Eastern Avenue, Ilford, Essex, United Kingdom, IG2 7JD. |
Nature of business: |
% |
Class of shares: | holding |
2022 |
£ |
Aggregate capital and reserves |
11. | DEBTORS |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year: |
Trade debtors | 181,036 | 193,078 |
Other debtors | 301,816 | 32,661 |
Staff Loans and Advances | 1,300 | - |
VAT | 18,063 | - |
502,215 | 225,739 |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2022 |
11. | DEBTORS - continued |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due after more than one | year: |
Other debtors | 97,139 | - |
Aggregate amounts | 599,354 | 225,739 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 14) | 974 | 1,754 |
Credit balance on sales ledger | 26,989 | 106,352 |
Trade creditors | 50,001 | 27,876 |
Amounts owed to group undertakings | - | - |
Tax | 15,339 | 119,850 |
Social security and other taxes | 139,348 | 77,275 |
Other creditors | 263,653 | 100,470 |
Wages and salaries control | 110,054 | - | - | - |
Accruals and deferred income | 350,063 | 363,691 |
Accrued expenses | 1,337,210 | 569,848 |
2,293,631 | 1,367,116 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Bank loans (see note 14) | 6,633,313 | 5,236,926 |
Other loans (see note 14) | 2,541,089 | 2,550,000 |
Accruals and deferred income | 118,382 | - |
9,292,784 | 7,786,926 |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2022 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 974 | 1,754 |
Amounts falling due between one and | two years: |
Bounce Back Loan | 41,097 | - |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 6,592,216 | 5,236,926 |
Other loans - 2-5 years | 41,089 | 50,000 |
6,633,305 | 5,286,926 |
Amounts falling due in more than five | years: |
Repayable otherwise than by instalments |
Other loans more 5yrs non-inst | 2,500,000 | 2,500,000 |
15. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax | 414,003 | - |
Group |
Deferred |
tax |
£ |
Revaluation of properties | 414,003 |
Balance at 31 August 2022 | 414,003 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | .01 | 281 | 100 |
8,112 Ordinary shares of .01 each were allotted as fully paid |
Holmwood House Holdings Limited (Registered number: 10931562) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2022 |
16. | CALLED UP SHARE CAPITAL - continued |
On 24 April 2022, the company allotted 10,000 fully paid ordinary shares of £0.01 each as a bonus issue out of reserves entitling them to one fully paid ordinary share for every share held. |
17. | RESERVES |
Group |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 September 2021 | 608,520 | - | - | 608,520 |
Profit for the year | 39,795 | 39,795 |
Bonus share issue | (100 | ) | 457,483 | - | 457,383 |
Properties Revaluation | - | - | 1,905,175 | 1,905,175 |
Deferred Tax | - | - | (361,983 | ) | (361,983 | ) |
Acquisition of subsidiary | 94,040 | - | - | 94,040 |
At 31 August 2022 | 742,255 | 457,483 | 1,543,192 | 2,742,930 |
18. | GOING CONCERN |
The director believes that the group is well placed to manage its business risks successfully and has adequate resources to continue in operational existence for the foreseeable future. |
The UK including the Care Sector are recovering from the Covid-19 pandemic slowly but surely. The director has reviewed and stress tested projections and budgets for the next twelve months. Following this review, the director considers there to be little impact on the group's ability to act as a going concern. The group is expected to remain profitable and cash generative in the foreseeable future. |
No material uncertainties that may cast significant doubt about the ability of the group to continue as a going concern have been identified by the director. Therefore, the financial statements have been prepared on a going concern basis. |