Company Registration No. SC412450 (Scotland)
LORIMER CARE HOMES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
LORIMER CARE HOMES LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
LORIMER CARE HOMES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
16,717,696
16,085,359
Investments
4
9,385,979
9,385,979
26,103,675
25,471,338
Current assets
Debtors
6
8,468
Cash at bank and in hand
121,555
98,142
130,023
98,142
Creditors: amounts falling due within one year
7
(17,594,446)
(16,500,620)
Net current liabilities
(17,464,423)
(16,402,478)
Total assets less current liabilities
8,639,252
9,068,860
Provisions for liabilities
(836,766)
(718,000)
Net assets
7,802,486
8,350,860
Capital and reserves
Called up share capital
2
2
Revaluation reserve
9
200,000
200,000
Capital contribution reserve
9
10,345,681
10,345,681
Profit and loss reserves
9
(2,743,197)
(2,194,823)
Total equity
7,802,486
8,350,860
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 15 December 2022 and are signed on its behalf by:
L Blackwood
Director
Company Registration No. SC412450
LORIMER CARE HOMES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Share capital
Revaluation reserve
Capital Contribution reserve
Other reserves
Profit and loss reserves
Total
as restated
£
£
£
£
£
£
Balance at 1 July 2019
2
200,000
400,686
(2,700,595)
(2,099,907)
Period ended 31 December 2020:
Profit and total comprehensive income for the period
-
-
-
-
105,086
105,086
Other movements
-
-
10,345,681
(400,686)
400,686
10,345,681
Balance at 31 December 2020
2
200,000
10,345,681
(2,194,823)
8,350,860
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
-
-
(548,374)
(548,374)
Balance at 31 December 2021
2
200,000
10,345,681
(2,743,197)
7,802,486
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
1
Accounting policies
Company information
Lorimer Care Homes Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
Sanctuary House, 7 Freeland Drive, Glasgow, G53 6PG. The company's registration number is SC412450.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Reporting period
The company prepares these financial statements for a 12 month period to 31 December 2021. The comparative figures are the 18 months to 31 December 2020.
1.3
Tangible fixed assets
Duirng the year under review, the directors have chosen to apply the exemption under FRS 102 Triennial Review for accounting for investment properties rented to group companies at fair value and account for them at cost, net of depreciation. As a result these financial statements have reclassified the five care homes from investment properties to heritable properties and depreciated the assets from the date of transition. The effect of this change in accounting policy is to align the accounting treatment in the company with the accounting treatment in the consolidated accounts of the group.
As a result of the change in policy, Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
35 years straight line
Fixtures and fittings
13.33% on cost
Motor vehicles
25% staright line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Management
5
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
249,373
Social security costs
15,188
Pension costs
1,083
265,644
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2021
16,865,298
1,194,339
18,059,637
Additions
871,808
480,345
1,352,153
At 31 December 2021
17,737,106
1,674,684
19,411,790
Depreciation and impairment
At 1 January 2021
1,428,235
546,043
1,974,278
Depreciation charged in the year
511,210
208,606
719,816
At 31 December 2021
1,939,445
754,649
2,694,094
Carrying amount
At 31 December 2021
15,797,661
920,035
16,717,696
At 31 December 2020
15,437,063
648,296
16,085,359
4
Fixed asset investments
2021
2020
£
£
Shares in group undertakings and participating interests
9,385,979
9,385,979
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
5
Subsidiaries
Details of the company's subsidiaries at 31 December 2021 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Glenfairn Limited
Tribune Court, 2 Roman Road, Bearsden, Glasgow, G61 2SW
Ordinary
100.00
Tayside Care Limited
Tribune Court, 2 Roman Road, Bearsden, Glasgow, G61 2SW
Ordinary
100.00
Gate Healthcare Limited
Tribune Court, 2 Roman Road, Bearsden, Glasgow, G61 2SW
Ordinary
100.00
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Other debtors
8,468
7
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
24,735
865
Amounts owed to group undertakings
17,501,830
16,492,259
Corporation tax
(2,970)
Other taxation and social security
(1,740)
Other creditors
67,881
12,206
17,594,446
16,500,620
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
360,766
213,000
Unrealised gain
476,000
505,000
836,766
718,000
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
8
Deferred taxation
(Continued)
- 8 -
2021
Movements in the year:
£
Liability at 1 January 2021
718,000
Charge to profit or loss
118,766
Liability at 31 December 2021
836,766
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
9
Reserves
Revaluation reserve
The revaluation reserve represents the unreleased gain on the properties transferred from its subsidiaries to the company.
Equity reserve
Profit and loss reserve represents the distributable profits of the company.
Capital Contribution reserve
The capital contribution reserve represents the contribution made by Sanctuary Housing Association to the company during the prior period to repay its debt in full.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was David Holt and the auditor was Consilium Audit Limited.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
16,250
29,250
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
12
Ultimate parent undertaking and controlling party
Sanctuary Housing Association is regarded by the directors as being the company's ultimate parent undertaking and controlling party.
The company is included by full consolidation in the consolidated financial statements of its ultimate parent, Sanctuary Housing Association registered at Sanctuary House, Chamber Court, Castle Street, Worcester, WR1 3ZQ, England. Copies of the consolidated financial statements are available at this address.
2021-12-31
2021-01-01
false
16 December 2022
CCH Software
CCH Accounts Production 2022.300
No description of principal activity
This audit opinion is unqualified
L Blackwood
S Clarke-Kuehn
C Moule
N Seymour
J Thallon
D French
N Seymour
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