Westminster Homecare Limited 31/12/2019 iXBRL
Westminster Homecare Limited 31/12/2019 iXBRL
Company registration number:
03353584
Financial statements
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of income and retained earnings
Statement of financial position
Statement of cash flows
Notes to the financial statements
Directors and other information
Directors |
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Secretary |
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Company number |
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Registered office |
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Auditor |
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Second Floor | ||
87 Kenton Road | ||
Harrow | ||
Middlesex | ||
HA3 0AH | ||
Bankers |
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584 High Road | ||
Wembley | ||
Middlesex | ||
HA0 2DB | ||
Strategic report
Year ended 31 December 2019
The principal activity of the Company is the provision of domiciliary care services in England to people over the age of sixty-five, as well as young adults with a broad range of needs including physical and sensory impairment, learning disabilities and a range of complex health needs.
Review of business
Total revenues for 2019 were £38.5m compared to £37.9m in 2018. The pressure on operating margins has continued to be severe due to wage costs and operational overheads.
The Company has been welcoming of the introduction of the National Living Wage. However, the underlying increase coupled with maintenance of pay differentials with other sectors, together with the add-on costs, has not been fully met by the Local Authorities, our principal funders. The underfunding and delayed increases in the fee rates has meant continued significant margin pressures.
The directors consider turnover and earnings before interest, tax, depreciation and amortisation (EBITDA) to be the main key performance indicators for the business. Turnover for the year was £38,512,581, an increase of 1.7% from £37,854,962 in 2018. EBITDA for 2019 was £1,889,558 compared to £625,785 for 2018.
The directors and all the employees continually strive to maintain the highest standards of quality which they consider an integral part of the group's service.
The results for the year are set out in full in the Statement of income and retained earnings.
Coronavirus
In March 2020 the UK was hit by the full impact of the global Coronavirus Covid-19 pandemic, which in turn has had a severe effect on the entire UK economy. Up to the date of this report the pandemic remains prevalent throughout the country.
The Covid-19 pandemic has impacted homecare services in several ways from organising the delivery of care in the community, procuring PPE, protecting the front-line staff and ensuring that funding was in place. Working in partnership with the Local Authorities, Health Authorities and our suppliers with tremendous commitment and support from all our staff, the directors are pleased to report that we have been able to deliver a good service to all our vulnerable adults and older people in the community.
However, maintaining the service at a similar level will require continued additional funding from central and local governments, as the Company and the social care sector face increased costs and new challenges.
Other principal risks and uncertainties
The company maintains a strong cash position. The directors therefore do not consider financial risks to be significant.The Company is exposed to risk related to non-renewal of major contracts and loss of key operational staff. The company has a good contract renewal record. Also, in order to mitigate any loss, it maintains a pipeline of new tender applications with good success rate. The company has a good retention rate amongst its key operational staff.
Employment policy
The directors believe that it is important to recruit and retain capable and caring staff regardless of their sex, marital status, race or religion. It is the company's policy to give full and fair consideration to applications for employment from people who are disabled and to arrange appropriate training for employees who become disabled and to provide equal opportunities for the career development, training and promotion of disabled employees.
The directors also recognise that the continued position of the company in the health and social care industry depends on the quality and motivation of its employees and as such the company is committed to pursue employment policies which will continue to attract, retain and motivate its employees.
Good and effective employee communications are particularly important, and throughout the business it is the directors' policy to promote the understanding by all employees of the company's business aims and performance. This is achieved through a variety of communication approaches for each branch.
This report was approved by the board of directors on 17 September 2020 and signed on behalf of the board by:
Director
Directors report
Year ended 31 December 2019
The directors present their report and the financial statements of the company for the year ended 31 December 2019.
Directors
The directors who served the company during the year were as follows:
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Dividends
The directors do not recommend the payment of a dividend.
Events after the end of the reporting period
Particulars of events after the reporting period are detailed in note 21 to the financial statements.
Disclosure of information in the strategic report.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
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select suitable accounting policies and then apply them consistently;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487(2) of the Companies Act 2006.
This report was approved by the board of directors on
17 September 2020
and signed on behalf of the board by:
Director
Independent auditor's report to the members of
Year ended 31 December 2019
Opinion
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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:
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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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.
Other Information
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 the audit:
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the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the strategic report and the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors 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.
For and on behalf of
Chartered Accountants and Statutory Auditors
Second Floor
87 Kenton Road
Harrow
Middlesex
HA3 0AH
Statement of income and retained earnings
Year ended 31 December 2019
2019 | 2018 | |||||
Note | £ | £ | ||||
Turnover | 4 |
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Cost of sales |
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Gross profit |
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Distribution costs |
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Administrative expenses |
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Operating profit | 5 |
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Other interest receivable and similar income | 8 |
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Interest payable and similar expenses | 9 | - |
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Profit before taxation |
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Tax on profit | 10 |
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Profit for the financial year and total comprehensive income |
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Retained earnings at the start of the year |
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Retained earnings at the end of the year |
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All the activities of the company are from continuing operations.
Statement of financial position
31 December 2019
2019 | 2018 | ||||||||
Note | £ | £ | £ | £ | |||||
Fixed assets | |||||||||
Intangible assets | 11 |
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Tangible assets | 12 |
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Investments | 13 |
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Current assets | |||||||||
Debtors | 14 |
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Cash at bank and in hand |
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Creditors: amounts falling due | |||||||||
within one year | 15 |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities | 16 |
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Net assets |
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Capital and reserves | |||||||||
Called up share capital | 19 |
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Profit and loss account |
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Shareholders funds |
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These financial statements were approved by the
board of directors
and authorised for issue on
17 September 2020
, and are signed on behalf of the board by:
Director
Company registration number:
03353584
Statement of cash flows
Year ended 31 December 2019
2019 | 2018 | |||
£ | £ | |||
Cash flows from operating activities | ||||
Profit for the financial year |
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Adjustments for: | ||||
Depreciation of tangible assets |
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Amortisation of intangible assets |
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Other interest receivable and similar income |
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Interest payable and similar expenses | - |
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Gain/(loss) on disposal of tangible assets |
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Tax on profit |
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Changes in: | ||||
Trade and other debtors | 838,980 | 1,515,490 | ||
Trade and other creditors | (734,325) | 166,198 | ||
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Cash generated from operations |
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Interest paid | - |
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Interest received |
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Tax paid |
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(72,985) | ||
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Net cash from operating activities |
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Cash flows from investing activities | ||||
Purchase of tangible assets | (15,433) |
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Proceeds from sale of tangible assets |
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Net cash used in investing activities |
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Cash flows from financing activities | ||||
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Net cash from financing activities | - | - | ||
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Net increase/(decrease) in cash and cash equivalents |
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Cash and cash equivalents at beginning of year | 3,774,271 | 1,543,072 | ||
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Cash and cash equivalents at end of year |
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Notes to the financial statements
Year ended 31 December 2019
1.
General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is Westminster Homecare Limited, Suite C, Symal House, 423 Edgware Road, London, NW9 0HU.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3.
Accounting policies
Basis of preparation
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Taxation
Operating leases
Goodwill
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill | - |
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If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property | - |
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Fittings fixtures and equipment | - |
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Motor vehicles | - |
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Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
Provisions
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4.
Turnover
Turnover arises from:
2019 | 2018 | |||
£ | £ | |||
Rendering of services |
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The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Operating profit
Operating profit is stated after charging/(crediting):
2019 | 2018 | ||||
£ | £ | ||||
Amortisation of intangible assets |
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Depreciation of tangible assets |
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Loss on disposal of tangible assets |
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Operating lease rentals |
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Fees payable for the audit of the financial statements |
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6.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2019 | 2018 | |||
Administration |
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Carers and nursing staff | 1,810 | 2,101 | ||
Management | 35 | 34 | ||
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The aggregate payroll costs incurred during the year were:
2019 | 2018 | |||
£ | £ | |||
Wages and salaries |
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Other pension costs |
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7.
Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2019 | 2018 | |||
£ | £ | |||
Remuneration |
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8.
Other interest receivable and similar income
2019 | 2018 | |||
£ | £ | |||
Bank deposits |
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9.
Interest payable and similar expenses
2019 | 2018 | ||||
£ | £ | ||||
Other interest payable and similar expenses | - |
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10.
Tax on profit
Major components of tax expense
2019 | 2018 | |||
£ | £ | |||
Current tax: | ||||
UK current tax expense |
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Adjustments in respect of previous periods | - |
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Total UK current tax |
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Deferred tax: | ||||
Origination and reversal of timing differences |
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Tax on profit |
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Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2018: higher than) the
standard rate of corporation tax in the UK
of
19
% (2018: 19%).
2019 | 2018 | |||
£ | £ | |||
Profit before taxation |
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Profit multiplied by rate of tax |
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Adjustments in respect of prior periods | - |
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Effect of expenses not deductible for tax purposes |
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Timing differences | - |
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Tax on profit |
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11.
Intangible assets
Goodwill | Total | ||
£ | £ | ||
Cost | |||
At 1 January 2019 and 31 December 2019 |
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Amortisation | |||
At 1 January 2019 |
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Charge for the year |
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At 31 December 2019 |
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Carrying amount | |||
At 31 December 2019 |
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At 31 December 2018 |
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12.
Tangible assets
Freehold property | Short leasehold property | Fixtures, fittings and equipment | Motor vehicles | Total | ||
£ | £ | £ | £ | £ | ||
Cost | ||||||
At 1 January 2019 |
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Adjustment | - | - | 357,112 | 420 | 357,532 | |
Additions | - | - | 4,779 | 10,654 |
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Disposals | - | - | - |
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At 31 December 2019 |
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929,836 | 78,171 | 1,570,511 | |
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Depreciation | ||||||
At 1 January 2019 |
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Adjustment | - | - | 357,112 | 420 | 357,532 | |
Charge for the year |
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- | 23,849 | 9,875 |
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Disposals | - | - | - |
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At 31 December 2019 |
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856,263 | 39,836 | 972,970 | |
_______ | _______ | _______ | _______ | _______ | ||
Carrying amount | ||||||
At 31 December 2019 |
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_______ | _______ | _______ | _______ | _______ | ||
At 31 December 2018 |
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_______ | _______ | _______ | _______ | _______ | ||
13.
Investments
Shares in group undertakings | Total | ||
£ | £ | ||
Cost | |||
At 1 January 2019 and 31 December 2019 |
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Impairment | |||
At 1 January 2019 and 31 December 2019 | - | - | |
_______ | _______ | ||
Carrying amount | |||
At 31 December 2019 |
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At 31 December 2018 |
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Investments in group undertakings | |||||
Registered office | Class of share | Percentage of shares held | |||
Subsidiary undertakings | |||||
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England & Wales | Ordinary | 100 | ||
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England & Wales | Ordinary | 100 | ||
Care In The Home Limited | England & Wales | Ordinary | 100 | ||
Home Choice Care Limited | England & Wales | Ordinary | 100 | ||
14.
Debtors
2019 | 2018 | |||
£ | £ | |||
Trade debtors |
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Prepayments and accrued income |
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Other debtors |
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_______ | _______ | |||
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_______ | _______ | |||
15.
Creditors: amounts falling due within one year
2019 | 2018 | |||
£ | £ | |||
Trade creditors |
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Amounts owed to group undertakings |
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Accruals and deferred income |
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Corporation tax |
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Other creditors |
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_______ | _______ | |||
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16.
Provisions
Deferred tax (note 17) | Total | ||
£ | £ | ||
At 1 January 2019 |
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Additions/(release) |
(
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At 31 December 2019 |
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17.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
2019 | 2018 | |||
£ | £ | |||
Included in provisions (note 16) |
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_______ | _______ | |||
The deferred tax account consists of the tax effect of timing differences in respect of:
2019 | 2018 | |||
£ | £ | |||
Accelerated capital allowances |
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_______ | _______ | |||
18.
Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £
418,296
(2018: £
267,920
).
19.
Called up share capital
Issued, called up and fully paid
2019 | 2018 | ||||||||
No | £ | No | £ | ||||||
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166,667 | 166,667 | 166,667 | 166,667 | |||||
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83,333 | 83,333 | 83,333 | 83,333 | |||||
_______ | _______ | _______ | _______ | ||||||
250,000 |
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250,000 |
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_______ | _______ | _______ | _______ | ||||||
20.
Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ | £ | |
Not later than 1 year |
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Later than 1 year and not later than 5 years |
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Later than 5 years |
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_______ | _______ | |
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_______ | _______ | |
21.
Events after the end of the reporting period
22.
Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company: | ||||
2019 | ||||
Balance brought forward | Advances /(credits) to the directors | Balance o/standing | ||
£ | £ | £ | ||
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_______ | _______ | _______ | ||
2018 | ||||
Balance brought forward | Advances /(credits) to the directors | Balance o/standing | ||
£ | £ | £ | ||
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(
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_______ | _______ | _______ | ||