Company registration number SC143810 (Scotland)
PRESTIGE NURSING (SCOTLAND) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
PRESTIGE NURSING (SCOTLAND) LIMITED
COMPANY INFORMATION
Directors
Mr S Mistry
Mr D J B Sandoz
Mrs J M Renton
Mr S R Bailey
(Appointed 6 July 2022)
Secretary
Sodexo Corporate Services (No.2) Limited
Company number
SC143810
Registered office
Rolland House
Unit 10 Newbridge Industrial Estate
Cliftonhall Road
Newbridge
Scotland
EH28 8PJ
Auditor
KPMG LLP
1 St. Peter's Square
Manchester
M2 3AE
PRESTIGE NURSING (SCOTLAND) LIMITED
CONTENTS
Page
Directors' report
1 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
PRESTIGE NURSING (SCOTLAND) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 August 2022.
Principal activities
The principal activity of the company continued to be the provision of high quality domiciliary and complex care to clients in Scotland.
Results and dividends
The results for the year are set out on page 8. The company's profit after tax for the year was £520,973 (2021: £705,551) and net assets as at 31 August 2022 were £847,430 (2021: £326,457).
No ordinary dividends were paid (2021: £685,686). The directors do not recommend payment of a final dividend.
No preference dividends were paid (2021: £nil). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S Mistry
Mr J P Bruce
(Resigned 31 October 2021)
Mr D J B Sandoz
Mrs J M Renton
Mr G B Vestur
(Resigned 4 October 2021)
Mrs V Sapojnic
(Resigned 13 October 2022)
Mr S R Bailey
(Appointed 6 July 2022)
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 2 day's purchases, based on the average daily amount invoiced by suppliers during the year.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees any matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company’s performance.
PRESTIGE NURSING (SCOTLAND) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 2 -
Auditor
Persuant to section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and KPMG LLP will therefore continue in office.
Energy and carbon report
The company does not qualify as a large company under the Streamlined Energy and Carbon Reporting (SECR) regulations and is not required to report on its emissions, energy consumption or energy efficiency activities in this reporting period.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Small company
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
Going concern
The directors continue to adopt the going concern basis in the preparation of the financial statements.
The business has remained resilient through the UK wide Covid-19 lockdowns which ended on 18 July 2021 due to the essential nature of the service it provides and the high proportion of local government and health service clients. We continue to see opportunities for organic growth provided that we can continue to attract, recruit and retain professional carer in an increasingly tight labour market.
As inflationary pressures increase, we continue to work with our clients to ensure we receive a fair price for the services that we provide, so that we can continue to invest in our workforce. Agility, good commercial management, and careful cost control continue to be critical to our ongoing success.
To inform the basis of preparation of these accounts, the directors have considered cash and profit scenarios for forward trade over the next 12 months.
Routine peaks in cash requirements during the trading cycle, can be funded from the significant cash balance the company / its immediate parent company (Prestige Nursing Ltd) has on hand at the end of the 2022 financial year.
As at the date of approval of the financial statements, the shareholders of Prestige Nursing Ltd are exploring various strategic options with regard to their shareholding, including the sale of their shares. Although the outcome of the process is currently uncertain, the directors have considered the consequences if a sale was to occur in the forecast period. It is not possible to predict what would happen to the entity if there was a sale, however, the directors have no reason to believe that the company would not continue to trade given that it holds multiple registrations with the Care Inspectorate in respect of a network of regulated branches throughout Scotland, and that it would be difficult to reregister these branches and novate the client contracts within the going concern period. The plausible downside scenarios show that there is no need for additional funding.
Based on these analyses and facts, the directors believe that the Company will be able to continue to meet its liabilities as they fall due for at least the next 12 months and therefore have prepared the financial statements on a going concern basis.
PRESTIGE NURSING (SCOTLAND) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 3 -
On behalf of the board
Mrs J M Renton
Director
30 May 2023
PRESTIGE NURSING (SCOTLAND) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2022
- 4 -
The directors are responsible for preparing the Directors' Report 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 they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework. 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 accounting estimates that are reasonable and prudent;
assess the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
PRESTIGE NURSING (SCOTLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PRESTIGE NURSING (SCOTLAND) LIMITED
- 5 -
Opinion
We have audited the financial statements of Prestige Nursing (Scotland) Limited (the 'company') for the year ended 31 August 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 2022 and of its profit for the year then ended;
have been properly prepared in accordance with UK accounting standards, including FRS 101 and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
In our evaluation of the directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.
Our conclusions based on this work:
we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;
we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.
Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
Enquiring of directors as to the Company’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.
Reading Board minutes.
Using analytical procedures to identify any unusual or unexpected relationships.
PRESTIGE NURSING (SCOTLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PRESTIGE NURSING (SCOTLAND) LIMITED
- 6 -
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
As required by auditing standards, and taking into account possible pressures to meet profit targets, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular:
We did not identify any additional fraud risks.
Identifying and responding to risks of material misstatement related to compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, data protection laws, anti-bribery and employment law. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
The directors are responsible for the directors’ report. Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon.
Our responsibility is to read the directors’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:
we have not identified material misstatements in the directors’ report;
in our opinion the information given in that report for the financial year is consistent with the financial statements; and
in our opinion that report has been prepared in accordance with the Companies Act 2006
PRESTIGE NURSING (SCOTLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PRESTIGE NURSING (SCOTLAND) LIMITED
- 7 -
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required 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 financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
We have nothing to report in these respects.
Responsibilities of directors
As explained more fully in their statement set out on page 4, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the 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 they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
The purpose of our audit work and to whom we owe our responsibilities
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 auditor’s 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.
Andrew Reddington (Senior Statutory Auditor)
For and on behalf of KPMG LLP
30 May 2023
Chartered Accountants
Statutory Auditor
1 St. Peter's Square
Manchester
M2 3AE
PRESTIGE NURSING (SCOTLAND) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2022
- 8 -
2022
2021
Notes
£
£
Revenue
3
6,522,239
7,385,437
Cost of sales
(5,351,205)
(5,810,602)
Gross profit
1,171,034
1,574,835
Administrative expenses
(543,313)
(703,679)
Operating profit
4
627,721
871,156
Investment income
6
1,922
6
Finance costs
7
(909)
(80)
Profit before taxation
628,734
871,082
Tax on profit
8
(107,761)
(165,531)
Profit and total comprehensive income for the financial year
21
520,973
705,551
All amounts above relate to continuing operations. The notes on pages pages 11 to 23 form part of these financial statements.
PRESTIGE NURSING (SCOTLAND) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2022
31 August 2022
- 9 -
2022
2021
Notes
£
£
£
£
Non-current assets
Intangible assets - goodwill
10
458,015
458,015
Property, plant and equipment
11
27,510
38,902
485,525
496,917
Current assets
Trade and other receivables
12
466,124
724,462
Cash and cash equivalents
1,333,930
1,325,523
1,800,054
2,049,985
Current liabilities
13
(1,123,387)
(2,220,445)
Net current assets/(liabilities)
676,667
(170,460)
Total assets less current liabilities
1,162,192
326,457
Non-current liabilities
13
(314,762)
-
Net assets
847,430
326,457
Equity
Called up share capital
19
251
251
Capital redemption reserve
20
753
753
Retained earnings
21
846,426
325,453
Total equity
847,430
326,457
The financial statements were approved by the board of directors and authorised for issue on 30 May 2023 and are signed on its behalf by:
Mrs J M Renton
Director
Company registration number SC143810
PRESTIGE NURSING (SCOTLAND) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2022
- 10 -
Share capital
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 September 2020
251
753
305,588
306,592
Year ended 31 August 2021:
Total comprehensive income for the year
-
-
705,551
705,551
Dividends
9
-
-
(685,686)
(685,686)
Balance at 31 August 2021
251
753
325,453
326,457
Year ended 31 August 2022:
Total comprehensive income for the year
-
-
520,973
520,973
Balance at 31 August 2022
251
753
846,426
847,430
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
- 11 -
1
Accounting policies
Company information
Prestige Nursing (Scotland) Limited is a private company limited by shares incorporated and domiciled in Scotland. The registered number is SC143810 and the registered office is Rolland House, Unit 10 Newbridge Industrial Estate, Cliftonhall Road, Newbridge, Scotland, EH28 8PJ. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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. The principal accounting policies adopted are set out below and have been applied consistently to all periods presented in the financial statements, unless otherwise stated.
The company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share based Payment;
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64 (o)(ii), B64(p), B64(q)(ii), B66 and B67of IFRS 3 Business Combinations. Equivalent disclosures are included in the consolidated financial statements of Sodexo S.A in which the entity is consolidated;
the requirements of paragraph 33 (c) of IFRS 5 Non current Assets Held for Sale and Discontinued Operations;
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative information in respect of: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant and Equipment (iii) paragraph 118 (e) of IAS 38 Intangibles Assets, (iv) paragraphs 76 and 79(d) of IAS 40 Investment Property and (v) paragraph 50 of IAS 41 Agriculture;
the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 39 to 40 ,111 and 134-136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
the requirements of paragraph 17 of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member ; and
the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
As permitted by FRS 101, the company has taken advantage of the disclosure exemptions available under that standard in relation to share based payments, financial instruments, capital management, presentation of a cash flow statement, presentation of comparative information in respect of certain assets, standards not yet effective, impairment of assets, business combinations, discontinued operations and related party transactions.
The Company’s ultimate parent undertaking, Sodexo S.A. includes the Company in its consolidated financial statements. The consolidated financial statements of Sodexo S.A. are prepared in accordance with International Financial Reporting Standards and are available to the public and are published on the company's website at www.sodexo.com.
Judgements made by the directors, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 2.
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern
The directors continue to adopt the going concern basis in the preparation of the financial statements. true
The business has remained resilient through the UK wide Covid-19 lockdowns which ended on 18 July 2021 due to the essential nature of the service it provides and the high proportion of local government and health service clients. We continue to see opportunities for organic growth provided that we can continue to attract, recruit and retain professional carer in an increasingly tight labour market.
As inflationary pressures increase, we continue to work with our clients to ensure we receive a fair price for the services that we provide, so that we can continue to invest in our workforce. Agility, good commercial management, and careful cost control continue to be critical to our ongoing success.
To inform the basis of preparation of these accounts, the directors have considered cash and profit scenarios for forward trade over the next 12 months.
Routine peaks in cash requirements during the trading cycle, can be funded from the significant cash balance the company / its immediate parent company (Prestige Nursing Ltd) has on hand at the end of the 2022 financial year.
As at the date of approval of the financial statements, the shareholders of Prestige Nursing Ltd are exploring various strategic options with regard to their shareholding, including the sale of their shares. Although the outcome of the process is currently uncertain, the directors have considered the consequences if a sale was to occur in the forecast period. It is not possible to predict what would happen to the entity if there was a sale, however, the directors have no reason to believe that the company would not continue to trade given that it holds multiple registrations with the Care Inspectorate in respect of a network of regulated branches throughout Scotland, and that it would be difficult to reregister these branches and novate the client contracts within the going concern period. The plausible downside scenarios show that there is no need for additional funding.
Based on these analyses and facts, the directors believe that the Company will be able to continue to meet its liabilities as they fall due for at least the next 12 months and therefore have prepared the financial statements on a going concern basis.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for the provision of domiciliary and complex care, and is shown net of VAT and other sales related taxes.
Revenue from contracts for the provision of care services are recognised when the service has been provided and is based on time spent by staff during the period.
1.4
Goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is reviewed for impairment at each reporting date.
The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.
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. An impairment loss recognised for goodwill is subsequently reversed if, and only if, the reasons for the impairment loss have ceased to apply.
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 13 -
Goodwill arising on acquisitions before the date of transition to IFRS has been retained at the previous UK GAAP amounts subject to being tested for impairment at that date.
1.5
Property, plant and equipment
Property, plant and equipment 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:
Furniture & equipment
Over 5 years on a straight line basis
Office equipment
Over 3 years on a straight line basis
Motor vehicles
Over 4 years on a straight line basis
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 recognised in the income statement.
1.6
Impairment of tangible and intangible assets
At each reporting 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.
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.
1.7
Cash and cash equivalents
Cash and cash equivalents 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.
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 14 -
1.8
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Trade Receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Impairment of financial assets
Financial assets carried at amortised cost and fair value through other comprehensive income are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that
occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment
have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.9
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 15 -
1.11
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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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.
1.12
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 inventories or non-current 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 16 -
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
The discount rate varies between 2.87 and 3.14% depending on the term of the lease. The weighted-average rate applied was 1.4%.
1.15
Grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 17 -
2
Critical accounting estimates and judgements
The preparation of financial statements requires the management to make estimates and judgements which affect the amounts reported for assets, liabilities and contingent liabilities as of the date of preparation of the financial statements, and for revenues and expenses for the period.
Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
The estimates and judgements that have the most material impact on the financial performance and position of the Company are as follows:
(i) Provisions for bad debts
Provision is made for aged debts. These provisions require management’s best estimate of the likelihood of recovery of each debt.
3
Revenue
2022
2021
£
£
Revenue analysed by class of business
Care services
6,522,239
7,385,437
2022
2021
£
£
Revenue analysed by geographical market
UK Market
6,522,239
7,385,437
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,120
10,650
Depreciation of property, plant and equipment
46,883
60,362
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Average employees
337
355
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
5
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
5,093,116
5,520,947
Social security costs
350,987
423,814
Pension costs
70,269
80,830
5,514,372
6,025,591
Directors received no remuneration from Prestige Nursing (Scotland) Limited during the year. Directors receive remuneration from another of the Sodexo group companies.
6
Investment income
2022
2021
£
£
Interest income
Interest on bank deposits
1,922
6
Total interest income for financial assets that are not held at fair value through profit or loss is £1,922 (2021 - £6).
7
Finance costs
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
909
80
8
Income tax expense
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
145,224
165,531
Deferred tax
Origination and reversal of temporary differences
(12,159)
Changes in tax rates
(5,826)
Adjustment in respect of prior periods
(19,478)
(37,463)
Total tax charge
107,761
165,531
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
8
Income tax expense
(Continued)
- 19 -
The charge for the year can be reconciled to the profit per the income statement as follows:
2022
2021
£
£
Profit before taxation
628,734
871,082
Expected tax charge based on a corporation tax rate of 19.00% (2021: 19.00%)
119,459
165,506
Effect of expenses not deductible in determining taxable profit
350
25
Adjustment in respect of prior years
(6,222)
Tax at marginal rate
(5,826)
-
Taxation charge for the year
107,761
165,531
On 1 April 2017, the standard rate of corporation tax changed to 19%. For the purpose of the company accounts to 31 August 2022, the standard rate of corporation tax has been applied.
The March 2020 Budget announced that a rate of 19% would continue to apply with effect from 1 April 2020, and this change was substantively enacted on 17 March 2020. In the 3 March 2021 Budget it was announced that the UK tax rate will increase to 25% from 1 April 2023 for companies with profits over £250,000. This will have a consequential effect on the company’s future tax charge.
9
Dividends
2022
2021
2022
2021
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary shares
Interim dividend paid
-
2,732.00
-
685,686
10
Intangible fixed assets
Goodwill
£
Cost
At 31 August 2021
458,015
At 31 August 2022
458,015
Carrying amount
At 31 August 2022
458,015
At 31 August 2021
458,015
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 20 -
11
Property, plant and equipment
Furniture & equipment
Office equipment
Motor vehicles
Total
£
£
£
£
Cost
At 31 August 2021
7,281
162,159
12,545
181,985
Additions
35,491
35,491
Disposals
(826)
(826)
At 31 August 2022
7,281
161,333
48,036
216,650
Accumulated depreciation and impairment
At 31 August 2021
5,730
124,808
12,545
143,083
Charge for the year
764
37,351
8,768
46,883
Eliminated on disposal
(826)
(826)
At 31 August 2022
6,494
161,333
21,313
189,140
Carrying amount
At 31 August 2022
787
26,723
27,510
At 31 August 2021
1,551
37,351
38,902
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2022
2021
£
£
Net values
Motor vehicles
26,723
-
Depreciation charge for the year
Motor vehicles
8,768
8,719
12
Trade and other receivables
Current
Non-current
2022
2021
2022
2021
£
£
£
£
Trade receivables
338,560
658,057
-
-
Corporation tax recoverable
2,434
-
-
-
VAT recoverable
3,871
-
-
-
Other receivables
65,952
50,247
-
-
Prepayments and accrued income
17,844
16,158
-
-
428,661
724,462
-
-
Deferred tax asset
-
-
37,463
-
428,661
724,462
37,463
-
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
12
Trade and other receivables
(Continued)
- 21 -
Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
13
Liabilities
Current
Non-current
2022
2021
2022
2021
Notes
£
£
£
£
Borrowings
14
300,000
Trade and other payables
15
935,157
1,771,077
Corporation tax
-
278,645
-
-
Other taxation and social security
176,475
170,723
-
-
Lease liabilities
16
11,755
-
14,762
-
1,123,387
2,220,445
314,762
-
14
Borrowings
Non-current
2022
2021
£
£
Borrowings held at amortised cost:
Loans from parent undertaking
300,000
-
Principal amount of £300,000 borrowed. The principal amount including interest is repayable 31 December 2023. Interest is charged at 4.99% and paid on an annual basis.
15
Trade and other payables
2022
2021
£
£
Trade payables
24,921
25,729
Amount owed to parent undertaking
302,048
1,075,962
Accruals and deferred income
116,844
86,032
Other payables
491,344
583,354
935,157
1,771,077
The intercompany balances are interest free and repayable on demand.
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 22 -
16
Lease liabilities
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2022
2021
£
£
Current liabilities
11,755
-
Non-current liabilities
14,762
-
26,517
-
2022
2021
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
909
80
The fair value of the company's lease obligations is approximately equal to their carrying amount.
See note 11 for further details of depreciation on right of use assets recognised in the profit or loss.
17
Deferred taxation
2022
2021
£
£
Deferred tax assets
(37,463)
(37,463)
-
Deferred tax assets are expected to be recovered after more than one year
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
ACAs
Short term timing differences
Total
£
£
£
Liability at 1 September 2020 and 1 September 2021
-
-
Deferred tax movements in current year
Charge/(credit) to profit or loss
(17,541)
(14,096)
(31,637)
Effect of change in tax rate - profit or loss
(1,375)
(4,451)
(5,826)
Asset at 31 August 2022
(18,916)
(18,547)
(37,463)
PRESTIGE NURSING (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
17
Deferred taxation
(Continued)
- 23 -
Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.
18
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
70,269
80,830
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
251
251
251
251
20
Capital redemption reserve
2022
2021
£
£
At the beginning and end of the year
753
753
21
Retained earnings
2022
2021
£
£
At the beginning of the year
325,453
305,588
Profit for the year
520,973
705,551
Dividends
(685,686)
At the end of the year
846,426
325,453
22
Capital commitments
There were no capital commitments in place as at 31 August 2022 (2021: £nil).
23
Controlling party
The parent company of Prestige Nursing (Scotland) Limited is Prestige Nursing Ltd and its registered office is 1st Floor, Kirkgate, 19-31 Church Street, Epsom, Surrey, KT17 4PF.
The ultimate controlling party is Sodexo SA and its registered office is 255 quai de la Bataille de Stalingrad, 92130 Issy les Mounlineaux, France.
2022-08-312021-09-01Mr S MistryMr J P BruceMr D J B SandozMrs J M RentonMr G B VesturMrs V SapojnicMr S R BaileySodexo Corporate Services (No.2) LimitedfalseCCH SoftwareiXBRL Review & Tag 2022.2SC1438102021-09-012022-08-31SC143810bus:Director12021-09-012022-08-31SC143810bus:Director32021-09-012022-08-31SC143810bus:Director42021-09-012022-08-31SC143810bus:Director72021-09-012022-08-31SC143810bus:CompanySecretary12021-09-012022-08-31SC143810bus:Director22021-09-012022-08-31SC143810bus:Director52021-09-012022-08-31SC143810bus:Director62021-09-012022-08-31SC143810bus:RegisteredOffice2021-09-012022-08-31SC1438102022-08-31SC1438102020-09-012021-08-31SC143810core:ContinuingOperations2021-09-012022-08-31SC143810core:RetainedEarningsAccumulatedLosses2021-09-012022-08-31SC143810core:RetainedEarningsAccumulatedLosses2020-09-012021-08-31SC143810core:Goodwillcore:ContinuingOperations2022-08-31SC143810core:Goodwillcore:ContinuingOperations2021-08-31SC1438102021-08-31SC143810core:ShareCapital2022-08-31SC143810core:ShareCapital2021-08-31SC143810core:CapitalRedemptionReserve2022-08-31SC143810core:CapitalRedemptionReserve2021-08-31SC143810core:RetainedEarningsAccumulatedLosses2022-08-31SC143810core:RetainedEarningsAccumulatedLosses2021-08-31SC143810core:CapitalRedemptionReserve2020-08-31SC1438102020-08-31SC143810core:LoansReceivables2021-09-012022-08-31SC143810core:Goodwill2021-08-31SC143810core:Goodwill2022-08-31SC143810core:FurnitureFittings2021-08-31SC143810core:ComputerEquipment2021-08-31SC143810core:MotorVehicles2021-08-31SC1438102021-08-31SC143810core:FurnitureFittings2022-08-31SC143810core:ComputerEquipment2022-08-31SC143810core:MotorVehicles2022-08-31SC143810core:FurnitureFittings2021-09-012022-08-31SC143810core:ComputerEquipment2021-09-012022-08-31SC143810core:MotorVehicles2021-09-012022-08-31SC143810core:ContinuingOperations2022-08-31SC143810core:FurnitureFittings2021-08-31SC143810core:ComputerEquipment2021-08-31SC143810core:MotorVehicles2021-08-31SC143810core:CurrentFinancialInstruments2022-08-31SC143810core:CurrentFinancialInstruments2021-08-31SC143810core:Non-currentFinancialInstruments2022-08-31SC143810core:Non-currentFinancialInstruments2021-08-31SC143810core:WithinOneYear2022-08-31SC143810core:WithinOneYear2021-08-31SC143810core:AfterOneYear2022-08-31SC143810core:AfterOneYear2021-08-31SC143810core:AcceleratedTaxDepreciationDeferredTax2022-08-31SC143810bus:PrivateLimitedCompanyLtd2021-09-012022-08-31SC143810bus:Audited2021-09-012022-08-31SC143810bus:FRS1012021-09-012022-08-31SC143810bus:FullAccounts2021-09-012022-08-31xbrli:purexbrli:sharesiso4217:GBP