Company Registration No. 02022285 (England and Wales)
COTDEAN NURSING HOMES LIMITED
ANNUAL REPORT AND
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2017
PAGES FOR FILING WITH REGISTRAR
COTDEAN NURSING HOMES LIMITED
COMPANY INFORMATION
Directors
V L Harte
J M Nunn
Secretary
V L Harte
Company number
02022285
Registered office
Swinford House
Albion Street
Brierley Hill
West Midlands
DY6 3EE
Accountants
Bache Brown & Co Limited
Swinford House
Albion Street
Brierley Hill
West Midlands
DY5 3EE
Business address
Oaklands Care Home
Wartell Bank
Kingswinford
West Midlands
DY6 7QJ
Bankers
National Westminster Bank PLC
141 High Street
Stourbridge
West Midlands
DY8 1DW
COTDEAN NURSING HOMES LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 11
COTDEAN NURSING HOMES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JULY 2017
31 July 2017
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
5
2,501,890
2,112,464
Investment properties
6
-
132,178
Investments
7
1
1
2,501,891
2,244,643
Current assets
Stocks
10
2,000
2,000
Debtors
11
657,545
632,249
Cash at bank and in hand
259,952
242,314
919,497
876,563
Creditors: amounts falling due within one year
12
(446,467)
(410,496)
Net current assets
473,030
466,067
Total assets less current liabilities
2,974,921
2,710,710
Creditors: amounts falling due after more than one year
13
(834,477)
(933,623)
Provisions for liabilities
15
(38,395)
(32,999)
Net assets
2,102,049
1,744,088
Capital and reserves
Called up share capital
16
20,000
20,000
Revaluation reserve
1,128,536
844,468
Profit and loss reserves
953,513
879,620
Total equity
2,102,049
1,744,088
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 July 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
- 1 -
COTDEAN NURSING HOMES LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 JULY 2017
31 July 2017
The financial statements were approved by the board of directors and authorised for issue on 9 April 2018 and are signed on its behalf by:
V L Harte
J M Nunn
Director
Director
Company Registration No. 02022285
- 2 -
COTDEAN NURSING HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
Company information
Cotdean Nursing Homes Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Swinford House, Albion Street, Brierley Hill, West Midlands, DY6 3EE.
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 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 July 2017
are the
first
financial statements of Cotdean Nursing Homes Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 August 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Going concern
A
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
- 3 -
COTDEAN NURSING HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
2% of buildings straight line basis
Plant and machinery
10% reducing balance basis / 50 % straight line basis
Fixtures, fittings & equipment
15% / 25% reducing balance 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 credited or charged to profit or loss
.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in the income statement.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.6
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
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
- 4 -
COTDEAN NURSING HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
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 statement of financial position 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.
- 5 -
COTDEAN NURSING HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
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.
1.11
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.
1.12
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 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 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.
- 6 -
COTDEAN NURSING HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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
Exceptional costs/(income)
2017
2016
£
£
Profit on sale of investment property
(35,072)
-
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2017
2016
Number
Number
Directors
2
2
Care assistants and other staff
83
79
85
81
- 7 -
COTDEAN NURSING HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
5
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost or valuation
At 1 August 2016
2,127,243
951,649
4,670
3,083,562
Additions
-
60,126
384
60,510
Disposals
-
(2,238)
-
(2,238)
Revaluation
172,570
-
-
172,570
At 31 July 2017
2,299,813
1,009,537
5,054
3,314,404
Depreciation and impairment
At 1 August 2016
179,774
788,709
2,615
971,098
Depreciation charged in the year
20,756
22,879
549
44,184
Eliminated in respect of disposals
-
(2,238)
-
(2,238)
Revaluation
(200,530)
-
-
(200,530)
At 31 July 2017
-
809,350
3,164
812,514
Carrying amount
At 31 July 2017
2,299,813
200,187
1,890
2,501,890
At 31 July 2016
1,947,469
162,940
2,055
2,112,464
The freehold land and buildings are included in the accounts based upon valuations which were
updated internally by the directors as at 31 July 2017. The directors
value the properties
and relevant plant and machinery
on
an
open market value for existing use.
The valuation is based upon an informal valuation from professional valuers carried out in 2015.
2017
2016
£
£
Freehold
2,299,813
1,947,469
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2017
2016
£
£
Cost
1,310,761
1,310,761
Accumulated depreciation
(139,484)
(125,260)
Carrying value
1,171,277
1,185,501
- 8 -
COTDEAN NURSING HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
6
Investment property
2017
£
Fair value
At 1 August 2016
132,178
Disposals
(132,178)
At 31 July 2017
-
The investment property was previously included at a valuation estimated by the directors. During the year however the property was sold at a professional valuation to one of the directors.
7
Fixed asset investments
2017
2016
Notes
£
£
Investments in subsidiaries
8
1
1
8
Subsidiaries
Details of the company's subsidiaries at 31 July 2017 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Buckie Properties Limited
England and Wales
Investment company
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Buckie Properties Limited
(1,742)
(9,765)
9
Financial instruments
2017
2016
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
648,544
621,863
Carrying amount of financial liabilities
Measured at amortised cost
1,216,090
1,273,795
The financial assets are represented by trade debtors and loans to subsidiary company.
The financial liabilities are represented by trade creditors, bank borrowings and other creditors.
- 9 -
COTDEAN NURSING HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
9
Financial instruments
(Continued)
10
Stocks
2017
2016
£
£
Raw materials and consumables
2,000
2,000
11
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
125,178
99,241
Amounts due from group undertakings
523,366
522,622
Prepayments and accrued income
9,001
10,386
657,545
632,249
12
Creditors: amounts falling due within one year
2017
2016
Notes
£
£
Bank loans and overdrafts
14
101,399
99,195
Trade creditors
47,687
34,616
Other taxation and social security
33,093
34,928
Other creditors
144,071
130,179
Accruals and deferred income
120,217
111,578
446,467
410,496
13
Creditors: amounts falling due after more than one year
2017
2016
Notes
£
£
Bank loans and overdrafts
14
834,477
933,623
14
Loans and overdrafts
2017
2016
£
£
Bank loans
935,876
1,032,818
Payable within one year
101,399
99,195
Payable after one year
834,477
933,623
- 10 -
COTDEAN NURSING HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
14
Loans and overdrafts
(Continued)
All bank borrowings are secured by way of a debenture with a fixed charge held over the company freehold properties and a floating charge over the remaining assets of the company.
The
l
ong term loan is repayable over 193 months which commenced on the 31st January 2009. The interest rate for the loan is 1.75% above the bank base rate.
15
Provisions for liabilities
2017
2016
Notes
£
£
Deferred tax liabilities
38,395
32,999
16
Share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
10,000 Ordinary A shares of £1 each
10,000
10,000
10,000 Ordinary B shares of £1 each
10,000
10,000
20,000
20,000
- 11 -
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