Company Registration No. SC412450 (Scotland)
LORIMER CARE HOMES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
LORIMER CARE HOMES LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
LORIMER CARE HOMES LIMITED
COMPANY INFORMATION
- 1 -
Directors
L Blackwood
(Appointed 10 January 2020)
S Clarke-Kuehn
(Appointed 10 January 2020)
C Moule
(Appointed 10 January 2020)
N Seymour
(Appointed 10 January 2020)
J Thallon
(Appointed 10 January 2020)
D French
(Appointed 1 December 2020)
Secretary
Mrs N Seymour
Company number
SC412450
Registered office
Sanctuary House
7 Freeland Drive
Glasgow
Scotland
G53 6PG
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
United Kingdom
G2 2LB
Business address
Sanctuary House
7 Freeland Drive
Glasgow
Scotland
G53 6PG
LORIMER CARE HOMES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 2 -
The directors present the strategic report for the period ended 31 December 2020.
REVIEW OF BUSINESS
Lorimer Care Homes Limited, alongside the rest of the Lorimer Care Group of entities, was acquired by Sanctuary Housing Association on 10 January 2020. On acquisition, the 2020 accounting period end was extended to an 18 month period ended 31 December 2020.
Lorimer Care Homes Limited owns 5 care homes, and leases them out to its subsidiary undertakings. The aim of these subsidiaries is to provide a care service for older persons, placing emphasis on promoting health and independence.
The effects of the Covid-19 pandemic increased pressure on care operations towards the end of the year and in order to protect both residents and workers the company took the difficult decision to not allow visitors to our care homes from 16 March 2020, but the company was able to ensure vital family and social connections were not lost, by facilitating virtual visits through iPads in every care home.
OUTLOOK
The company’s outlook is very positive, with all homes performing well and ongoing improvement projects underway to further enhance our services.
KEY PERFORMANCE INDICATORS
The current period and comparative are not directly comparable due to the extension of the accounting period. Taking into consideration the change from a 12 month to an 18 month period, operating loss has decreased from £192,667 to £63,476.
On it becoming the ultimate shareholder Sanctuary Housing Association Group made a capital contribution of £10,345,681 towards the repayment of the the company's bank loan.
At the period end the company had shareholders funds of £8,350,860 (2019: £(2,099,907)). The directors therefore believe the company’s position to be satisfactory.
PRINCIPLE RISKS AND UNCERTAINTIES
The directors have assessed the main risk facing the company as being the competition from other companies within the local market. The directors believe that the reputation of the company and the quality of the service provided will mitigate this risk.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company finances its operations through its retained profits. Management's objective is to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due.
L Blackwood
Director
22 December 2021
LORIMER CARE HOMES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 3 -
The directors present their annual report and financial statements for the period ended 31 December 2020.
Principal activities
The principal activity of the company continued to be that of a holding company.
Results and dividends
The results for the period are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
M A Rhodes
(Resigned 10 January 2020)
C E Rhodes
(Resigned 10 January 2020)
S A Walker
(Resigned 10 January 2020)
J G Walker
(Resigned 10 January 2020)
L Blackwood
(Appointed 10 January 2020)
S Clarke-Kuehn
(Appointed 10 January 2020)
C Moule
(Appointed 10 January 2020)
N Seymour
(Appointed 10 January 2020)
J Thallon
(Appointed 10 January 2020)
D French
(Appointed 1 December 2020)
G Tuckwell
(Appointed 10 January 2020 and resigned 22 September 2020)
Auditor
In accordance with the company's articles, a resolution proposing that Consilium Audit Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 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). 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;
-
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 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 also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LORIMER CARE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 4 -
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.
On behalf of the board
L Blackwood
Director
22 December 2021
LORIMER CARE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LORIMER CARE HOMES LIMITED
- 5 -
Opinion
We have audited the financial statements of Lorimer Care Homes Limited (the 'company') for the period ended 31 December 2020 which comprise the statement of comprehensive income, the balance sheet, the 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 FRS 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 company's affairs as at 31 December 2020 and of its profit for the period 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.
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
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the
directors'
use of the going concern basis of accounting in the preparation of the
financial statements
is not appropriate; or
-
the
directors have
not disclosed in the
financial statements
any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the
financial statements
are authorised for issue
.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial period for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LORIMER CARE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LORIMER CARE HOMES LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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, 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.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 is 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 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 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 an
auditor's
report 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
.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
LORIMER CARE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LORIMER CARE HOMES LIMITED
- 7 -
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.
David Holt (Senior Statutory Auditor)
For and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
United Kingdom
G2 2LB
Date:
23 December 2021
LORIMER CARE HOMES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 8 -
Period
Year
ended
ended
31 December
30 June
2020
2019
as restated
Notes
£
£
Administrative expenses
(1,360,976)
(1,116,023)
Other operating income
1,297,500
923,356
Operating loss
3
(63,476)
(192,667)
Interest payable and similar expenses
5
(129,939)
(346,371)
Loss before taxation
(193,415)
(539,038)
Tax on loss
6
298,501
(40,369)
Profit/(loss) for the financial period
105,086
(579,407)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LORIMER CARE HOMES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 9 -
2020
2019
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
7
16,085,359
16,235,054
Investments
8
9,385,979
9,385,979
25,471,338
25,621,033
Current assets
Debtors
10
9,183
Cash at bank and in hand
98,142
273
98,142
9,456
Creditors: amounts falling due within one year
11
(16,500,620)
(16,900,981)
Net current liabilities
(16,402,478)
(16,891,525)
Total assets less current liabilities
9,068,860
8,729,508
Creditors: amounts falling due after more than one year
12
(9,739,415)
Provisions for liabilities
Deferred tax liability
14
718,000
1,090,000
(718,000)
(1,090,000)
Net assets/(liabilities)
8,350,860
(2,099,907)
Capital and reserves
Called up share capital
16
2
2
Revaluation reserve
17
200,000
200,000
Capital contribution reserve
17
10,345,681
Other reserves
17
400,686
Profit and loss reserves
17
(2,194,823)
(2,700,595)
Total equity
8,350,860
(2,099,907)
The financial statements were approved by the board of directors and authorised for issue on 22 December 2021 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 PERIOD ENDED 31 DECEMBER 2020
- 10 -
Share capital
Revaluation reserve
Capital Contribution reserve
Other reserves
Profit and loss reserves
Total
as restated
£
£
£
£
£
£
As restated for the period ended 30 June 2019:
Balance at 1 July 2018
2
125,000
456,605
(2,102,107)
(1,520,500)
Year ended 30 June 2019:
Loss and total comprehensive income for the year
-
-
-
-
(579,407)
(579,407)
Other movements
-
75,000
-
(55,919)
(19,081)
-
Balance at 30 June 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
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 11 -
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, Scotland, 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.
The financial statements are prepared in
sterling
, which is the functional
and presentational
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Interest
income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The current reporting period relates to the 18 months to 31 December 2020. The comparative period relates to the 12 months to 30 June 2019.
1.4
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.
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 12 -
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
2% cost
Fixtures and fittings
13.33% on cost
Computers
33.3% straight line
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
.
1.5
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.
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
.
1.6
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 14 -
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.
1.9
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
1.12
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 PERIOD ENDED 31 DECEMBER 2020
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Operating loss
2020
2019
As restated
Operating loss for the period is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
33,000
Depreciation of owned tangible fixed assets
788,661
424,874
(Profit)/loss on disposal of tangible fixed assets
170,859
Operating lease charges
12,387
18,889
4
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2020
2019
Management
5
9
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
249,373
271,691
Social security costs
15,188
18,711
Pension costs
1,083
1,985
265,644
292,387
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 16 -
5
Interest payable and similar expenses
2020
2019
£
£
Interest on bank overdrafts and loans
6,958
Other interest on financial liabilities
129,939
283,494
Other interest
55,919
129,939
346,371
6
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
72,286
3,369
Adjustments in respect of prior periods
1,213
Total current tax
73,499
3,369
Deferred tax
Origination and reversal of timing differences
(372,000)
37,000
Total tax (credit)/charge
(298,501)
40,369
7
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2019
16,566,639
1,048,509
20,875
41,214
17,677,237
Additions
298,659
339,604
703
638,966
Disposals
(241,941)
(14,625)
(256,566)
Transfers
6,953
(6,953)
At 31 December 2020
16,865,298
1,153,125
41,214
18,059,637
Depreciation and impairment
At 1 July 2019 as restated
899,066
508,324
14,185
20,608
1,442,183
Depreciation charged in the period
529,169
242,075
5,366
12,051
788,661
Eliminated in respect of disposals
(241,941)
(14,625)
(256,566)
Transfers
4,926
(4,926)
At 31 December 2020
1,428,235
513,384
32,659
1,974,278
Carrying amount
At 31 December 2020
15,437,063
639,741
8,555
16,085,359
At 30 June 2019 as restated
15,667,573
540,185
6,690
20,606
16,235,054
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
7
Tangible fixed assets
(Continued)
- 17 -
As detailed in note 1.4, in the current period the directors have elected to adopt the transition rules in FRS102 relating to investment and freehold properties. As a consequence, the properties that in the prior year were classified as investment properties have been reclassified
between
heritable properties
and fixtures and fittings
. There is no difference between the valuation and cost of these properties. Depreciation on these properties has now been included from 16 March 2016, the date that the first of these properties was acquired by the
c
ompany. As investment properties no depreciation was previously charged. Depreciation charged on these properties
and related fixtures & fittings
amounts to £
767,667
in the current period, £
410,879
in the prior period and £
723,104
in earlier periods. This change constitutes a prior year adjustment and appropriate adjustments have been reflected in the comparative financial information.
8
Fixed asset investments
2020
2019
Notes
£
£
Investments in subsidiaries
9
9,385,979
9,385,979
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 July 2019 & 31 December 2020
9,385,979
Carrying amount
At 31 December 2020
9,385,979
At 30 June 2019
9,385,979
9
Subsidiaries
Details of the company's subsidiaries at 31 December 2020 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
Ordirnary
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
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 18 -
10
Debtors
2020
2019
Amounts falling due within one year:
£
£
Other debtors
5
Prepayments and accrued income
9,178
9,183
11
Creditors: amounts falling due within one year
2020
2019
Notes
£
£
Bank loans and overdrafts
13
782,298
Trade creditors
865
22,642
Amounts owed to group undertakings
16,492,259
16,009,667
Corporation tax
(2,970)
3,369
Other taxation and social security
(1,740)
Other creditors
9,843
Accruals and deferred income
12,206
73,162
16,500,620
16,900,981
12
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Bank loans and overdrafts
13
8,417,500
Other borrowings
13
1,321,915
9,739,415
13
Loans and overdrafts
2020
2019
£
£
Bank loans
9,007,500
Bank overdrafts
192,298
Other loans
1,321,915
10,521,713
Payable within one year
782,298
Payable after one year
9,739,415
The long-term loans were secured by fixed charges over over the company's property.
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
13
Loans and overdrafts
(Continued)
- 19 -
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
213,000
210,000
Unrealised gain
505,000
880,000
718,000
1,090,000
2020
Movements in the period:
£
Liability at 1 July 2019
1,090,000
Credit to profit or loss
(372,000)
Liability at 31 December 2020
718,000
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.
15
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,083
1,985
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.
16
Share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
2
2
2
2
LORIMER CARE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 20 -
17
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.
Other reserves
Other reserves represented the fair value accounting of the interest free loan from former shareholders. This has been released on the repayment of the loan.
Capital Contribution reserve
The capital contribution reserve represents the contribution made by Sanctuary Housing Association to the company during the period to repay its debt in full.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2020
2019
£
£
Within one year
13,000
Between two and five years
35,750
48,750
19
Ultimate parent party
From 10 January 2020, Sanctuary Housing Association is regarded by the directors as being the company's ultimate parent company.
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.
2020-12-31
2019-07-01
false
CCH Software
CCH Accounts Production 2021.300
M A Rhodes
C E Rhodes
S A Walker
J G Walker
L Blackwood
S Clarke-Kuehn
C Moule
J Thallon
D French
G Tuckwell
G Tuckwell
Mrs N Seymour
SC412450
2019-07-01
2020-12-31
SC412450
bus:Director5
2019-07-01
2020-12-31
SC412450
bus:Director6
2019-07-01
2020-12-31
SC412450
bus:Director7
2019-07-01
2020-12-31
SC412450
bus:CompanySecretaryDirector1
2019-07-01
2020-12-31
SC412450
bus:Director8
2019-07-01
2020-12-31
SC412450
bus:Director9
2019-07-01
2020-12-31
SC412450
bus:CompanySecretary1
2019-07-01
2020-12-31
SC412450
bus:Director1
2019-07-01
2020-12-31
SC412450
bus:Director2
2019-07-01
2020-12-31
SC412450
bus:Director3
2019-07-01
2020-12-31
SC412450
bus:Director4
2019-07-01
2020-12-31
SC412450
bus:Director10
2019-07-01
2020-12-31
SC412450
bus:Director11
2019-07-01
2020-12-31
SC412450
bus:RegisteredOffice
2019-07-01
2020-12-31
SC412450
2020-12-31
SC412450
2018-07-01
2019-06-30
SC412450
core:RetainedEarningsAccumulatedLosses
2018-07-01
2019-06-30
SC412450
core:RetainedEarningsAccumulatedLosses
2019-07-01
2020-12-31
SC412450
2019-06-30
SC412450
core:LandBuildings
core:OwnedOrFreeholdAssets
2020-12-31
SC412450
core:FurnitureFittings
2020-12-31
SC412450
core:ComputerEquipment
2020-12-31
SC412450
core:MotorVehicles
2020-12-31
SC412450
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-06-30
SC412450
core:FurnitureFittings
2019-06-30
SC412450
core:ComputerEquipment
2019-06-30
SC412450
core:MotorVehicles
2019-06-30
SC412450
core:CurrentFinancialInstruments
core:WithinOneYear
2020-12-31
SC412450
core:CurrentFinancialInstruments
core:WithinOneYear
2019-06-30
SC412450
core:Non-currentFinancialInstruments
core:AfterOneYear
2020-12-31
SC412450
core:Non-currentFinancialInstruments
core:AfterOneYear
2019-06-30
SC412450
core:CurrentFinancialInstruments
2020-12-31
SC412450
core:CurrentFinancialInstruments
2019-06-30
SC412450
core:Non-currentFinancialInstruments
2020-12-31
SC412450
core:Non-currentFinancialInstruments
2019-06-30
SC412450
core:ShareCapital
2020-12-31
SC412450
core:ShareCapital
2019-06-30
SC412450
core:RevaluationReserve
2020-12-31
SC412450
core:RevaluationReserve
2019-06-30
SC412450
core:HedgingReserve
2020-12-31
SC412450
core:HedgingReserve
2019-06-30
SC412450
core:OtherMiscellaneousReserve
2020-12-31
SC412450
core:OtherMiscellaneousReserve
2019-06-30
SC412450
core:RetainedEarningsAccumulatedLosses
2020-12-31
SC412450
core:RetainedEarningsAccumulatedLosses
2019-06-30
SC412450
core:ShareCapital
2018-06-30
SC412450
core:RevaluationReserve
2018-06-30
SC412450
core:HedgingReserve
core:RestatedAmount
2018-06-30
SC412450
core:OtherMiscellaneousReserve
2018-06-30
SC412450
core:RetainedEarningsAccumulatedLosses
2018-06-30
SC412450
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-07-01
2020-12-31
SC412450
core:FurnitureFittings
2019-07-01
2020-12-31
SC412450
core:ComputerEquipment
2019-07-01
2020-12-31
SC412450
core:MotorVehicles
2019-07-01
2020-12-31
SC412450
1
2019-07-01
2020-12-31
SC412450
1
2018-07-01
2019-06-30
SC412450
core:UKTax
2019-07-01
2020-12-31
SC412450
core:UKTax
2018-07-01
2019-06-30
SC412450
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-06-30
SC412450
core:FurnitureFittings
2019-06-30
SC412450
core:ComputerEquipment
2019-06-30
SC412450
core:MotorVehicles
2019-06-30
SC412450
2019-06-30
SC412450
core:Subsidiary1
2019-07-01
2020-12-31
SC412450
core:Subsidiary2
2019-07-01
2020-12-31
SC412450
core:Subsidiary3
2019-07-01
2020-12-31
SC412450
core:Subsidiary1
1
2019-07-01
2020-12-31
SC412450
core:Subsidiary2
2
2019-07-01
2020-12-31
SC412450
core:Subsidiary3
3
2019-07-01
2020-12-31
SC412450
core:WithinOneYear
2020-12-31
SC412450
core:WithinOneYear
2019-06-30
SC412450
core:BetweenTwoFiveYears
2020-12-31
SC412450
core:BetweenTwoFiveYears
2019-06-30
SC412450
bus:PrivateLimitedCompanyLtd
2019-07-01
2020-12-31
SC412450
bus:FRS102
2019-07-01
2020-12-31
SC412450
bus:Audited
2019-07-01
2020-12-31
SC412450
bus:FullAccounts
2019-07-01
2020-12-31
xbrli:pure
xbrli:shares
iso4217:GBP