Barleycroft Care Home Limited Company accounts

BARLEYCROFT CARE HOME LTD - Company Information

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COMPANY REGISTRATION NUMBER: 04848474

Barleycroft Care Home Limited

Financial Statements

For the year ended

31 December 2019

Barleycroft Care Home Limited

Financial Statements

Year ended 31 December 2019

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the member	6

Statement of income and retained earnings	9

Statement of financial position	10

Notes to the financial statements	11

Barleycroft Care Home Limited

Officers and Professional Advisers

The board of directors	P Sodhi (Resigned 9 September 2019)
	A Taylor
	M Cloonan

Registered office	Abbey Healthcare
	Sutherland House
	70 - 78 West Hendon Broadway
	London
	NW9 7BT

Auditor	Streets
	Chartered accountants & statutory auditor
	Beaumont Business Centre
	6 Snow Hill
	London
	EC1A 2AY

Barleycroft Care Home Limited

Strategic Report

Year ended 31 December 2019

The directors present the strategic report and the financial statements for the year ended 31 December 2019. Business review Barleycroft Care home Limited owns and operates an 80 bed care home regulated by the Care Quality Commission . The Home's CQC rating improved from Requires Improvement to Good in June 2019. Revenue increased in the year from £2,339,000 to £2,546,000 due to occupancy increasing from 83% to 86%. This translated into a gross profit of £797,000 (2018 £675,000). There are no significant future developments planned for the Company. Principal risks and uncertainties Management monitors risks on a weekly and monthly basis. The primary concern of the management is the quality of care. There are dedicated regional managers and Operational Directors responsible for supporting the Home in provision of high quality care services. The major financial risk to the company is the increase in its cost base, often exceeding the rate of inflation, primarily relating to the National Living Wage. The Company is exposed to credit risk with its customers, albeit major customers are public sector, and therefore with limited credit risk. Pricing risk is limited to the risk associated with negotiating annual price increases. Liquidity and cashflow risk could arise in the event of a downturn in trading. However, in this event, sister companies in the group can provide liquidity if required. The potential impact of Brexit remains uncertain, however, it is likely to reduce the pool of staff available, and there are risks related to the cost of supplies including food and energy. Financial and other key performance indicators The key financial and operational performance indicators monitored by management include regulatory reviews, internal quality reviews, occupancy ratios, average weekly fees and cost to revenue ratios. During 2020 the worldwide spread of Coronavirus occurred and from March 2020 impacted the UK and the care home industry in particular. This had a significant impact on the market and company. Occupancy decreased and costs increased through increased PPE and sickness costs, as well as the investments we made to make our homes more resilient to future waves of the virus. We received support from government in terms of grants and other additional funding which helped offset the negative financial impact of the virus. The overall effect of the virus remains unclear, but it will last into 2021.

This report was approved by the board of directors on 11 February 2021 and signed on behalf of the board by:

A Taylor

Director

Registered office:

Abbey Healthcare

Sutherland House

70 - 78 West Hendon Broadway

London

NW9 7BT

Barleycroft Care Home Limited

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:

A Taylor
M Cloonan
P Sodhi	(Resigned 9 September 2019)

Dividends

The directors do not recommend the payment of a dividend.

Disclosure of information in the strategic report

The company has chosen to include several items in the strategic report which would otherwise be required to be disclosed in the directors report. These include information on the exposure to financial risk, price risk, credit risk, liquidity risk and cash flow risk and an indication of the likely future developments in the business of the company.

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: - select suitable accounting policies and then apply them consistently; - make judgments 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- 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.

This report was approved by the board of directors on 11 February 2021 and signed on behalf of the board by:

A Taylor

Director

Registered office:

Abbey Healthcare

Sutherland House

70 - 78 West Hendon Broadway

London

NW9 7BT

Barleycroft Care Home Limited

Independent Auditor's Report to the Member of Barleycroft Care Home Limited

Year ended 31 December 2019

Opinion

We have audited the financial statements of Barleycroft Care Home Limited (the 'company') for the year ended 31 December 2019 which comprise the statement of income and retained earnings, statement of financial position and the related notes, 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 2019 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

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:

- 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.

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:

- 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

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors' 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' 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

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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Use of our report

This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Day

(Senior Statutory Auditor)

For and on behalf of

Streets

Chartered accountants & statutory auditor

Beaumont Business Centre

6 Snow Hill

London

EC1A 2AY

12 February 2021

Barleycroft Care Home Limited

Statement of Income and Retained Earnings

Year ended 31 December 2019

		2019	2018
Note		£	£
Turnover	4	2,545,855	2,338,622

Cost of sales	1,748,872	1,663,675
	------------	------------
Gross profit	796,983	674,947

Administrative expenses		388,442	125,351
		---------	---------
Operating profit	5	408,541	549,596

Other interest receivable and similar income	9	261	363
Interest payable and similar expenses	10	432,548	174,861
		---------	---------
(Loss)/profit before taxation		( 23,746)	375,098

Tax on (loss)/profit	11	( 31,704)	( 71,262)
		--------	---------
Profit for the financial year and total comprehensive income		7,958	446,360
		--------	---------

Retained losses at the start of the year	( 226,490)	( 672,850)
	---------	---------
Retained losses at the end of the year	( 218,532)	( 226,490)
	---------	---------

All the activities of the company are from continuing operations.

Barleycroft Care Home Limited

Statement of Financial Position

31 December 2019

	2019	2018
Note	£	£

Fixed assets

Tangible assets	12	3,935,270	3,942,512

Current assets

Debtors	13	13,819,810	8,340,825
Cash at bank and in hand		27,235	122,063
		-------------	------------
		13,847,045	8,462,888

Creditors: amounts falling due within one year	14	12,419,341	6,666,381
		-------------	------------
Net current assets		1,427,704	1,796,507
		------------	------------
Total assets less current liabilities		5,362,974	5,739,019

Creditors: amounts falling due after more than one year	15	4,194,806	4,578,809
		------------	------------
Net assets		1,168,168	1,160,210
		------------	------------

Capital and reserves

Called up share capital	17	29,400	29,400
Share premium account	18	1,357,300	1,357,300
Profit and loss account	18	( 218,532)	( 226,490)
		------------	------------
Shareholder funds		1,168,168	1,160,210
		------------	------------

These financial statements were approved by the board of directors and authorised for issue on 11 February 2021 , and are signed on behalf of the board by:

A Taylor

Director

Company registration number: 04848474

Barleycroft Care Home Limited

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 and Wales. The address of the registered office is Abbey Healthcare, Sutherland House, 70 - 78 West Hendon Broadway, London, NW9 7BT.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

Subsequent to the year-end, the UK has experienced a pandemic of the coronavirus. The company is experiencing disruption from the pandemic and the full impact cannot be fully quantified but the directors remain committed to the protection of the business and have access to sufficient resources to meet ongoing operations. This is being regularly reviewed by the directors. In addition the directors are mindful of the significant ongoing support being offered by the Government. Accordingly the financial statements have been prepared on a going concern basis.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Abbey Healthcare (Festival) Limited which can be obtained from Sutherland House, 70-78 West Hendon Broadway, London, NW9 7BT. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (d) Disclosures in respect of share-based payments have not been presented. (e) No disclosure has been given for the aggregate remuneration of key management personnel.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements There were no judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There were no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. 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 it is probable the expenses recognised will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

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	-	2% straight line
Fixtures and fittings	-	20% straight line

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

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	2,545,855	2,338,622
	------------	------------

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 or loss is stated after charging:

	2019	2018
	£	£
Depreciation of tangible assets	133,704	58,048
Impairment of trade debtors	76,052	–
	---------	--------

6. Auditor's remuneration

	2019	2018
	£	£
Fees payable for the audit of the financial statements	3,600	3,600
	-------	-------

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2019	2018
	No.	No.
Production staff	102	131
Management staff	3	1
	----	----
	105	132
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2019	2018
	£	£
Wages and salaries	1,506,044	1,392,491
Social security costs	81,575	91,485
Other pension costs	15,210	33,318
	------------	------------
	1,602,829	1,517,294
	------------	------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2019	2018
	£	£
Remuneration	25,303	8,673
Company contributions to defined contribution pension plans	–	10
	--------	-------
	25,303	8,683
	--------	-------

The number of directors who accrued benefits under company pension plans was as follows:

	2019	2018
	No.	No.
Defined contribution plans	–	1
	----	----

9. Other interest receivable and similar income

	2019	2018
	£	£
Interest on cash and cash equivalents	249	352
Interest from group undertakings	12	–
Other interest receivable and similar income	–	11
	----	----
	261	363
	----	----

10. Interest payable and similar expenses

	2019	2018
	£	£
Interest on banks loans and overdrafts	314,295	–
Interest on obligations under finance leases and hire purchase contracts	2,254	1,990
Interest due to group undertakings	115,999	172,871
	---------	---------
	432,548	174,861
	---------	---------

11. Tax on (loss)/profit

Major components of tax income

	2019	2018
	£	£

Current tax:

Adjustments in respect of prior periods	( 31,704)	( 71,262)
	--------	--------
Tax on (loss)/profit	( 31,704)	( 71,262)
	--------	--------

Reconciliation of tax income

The tax assessed on the (loss)/profit on ordinary activities for the year is lower than (2018: lower than) the standard rate of corporation tax in the UK of 19 % (2018: 19 %).

	2019	2018
	£	£
(Loss)/profit on ordinary activities before taxation	( 23,746)	375,098
	--------	---------
(Loss)/profit on ordinary activities by rate of tax	( 3,750)	71,269
Adjustment to tax charge in respect of prior periods	( 31,704)	( 71,262)
Effect of expenses not deductible for tax purposes	( 533)	168
Effect of capital allowances and depreciation	( 5,543)	( 2,285)
Utilisation of tax losses	9,826	( 69,152)
	--------	---------
Tax on (loss)/profit	( 31,704)	( 71,262)
	--------	---------

12. Tangible assets

	Freehold property	Fixtures and fittings	Total
	£	£	£
Cost
At 1 January 2019	4,239,284	177,480	4,416,764
Additions	–	126,462	126,462
	------------	---------	------------
At 31 December 2019	4,239,284	303,942	4,543,226
	------------	---------	------------
Depreciation
At 1 January 2019	428,933	45,319	474,252
Charge for the year	84,787	48,917	133,704
	------------	---------	------------
At 31 December 2019	513,720	94,236	607,956
	------------	---------	------------
Carrying amount
At 31 December 2019	3,725,564	209,706	3,935,270
	------------	---------	------------
At 31 December 2018	3,810,351	132,161	3,942,512
	------------	---------	------------

13. Debtors

	2019	2018
	£	£
Trade debtors	125,882	242,738
Amounts owed by group undertakings	13,433,767	7,950,778
Prepayments and accrued income	249,161	147,309
Other debtors	11,000	–
	-------------	------------
	13,819,810	8,340,825
	-------------	------------

14. Creditors: amounts falling due within one year

	2019	2018
	£	£
Bank loans and overdrafts	–	1,000,000
Trade creditors	153,867	120,792
Amounts owed to group undertakings	11,920,054	5,294,380
Accruals and deferred income	304,343	160,677
Social security and other taxes	31,888	60,966
Other creditors	9,189	29,566
	-------------	------------
	12,419,341	6,666,381
	-------------	------------

Bank loans are secured by a fixed and floating charge over all of the company's assets.

15. Creditors: amounts falling due after more than one year

	2019	2018
	£	£
Bank loans and overdrafts	4,194,806	–
Other creditors	–	4,578,809
	------------	------------
	4,194,806	4,578,809
	------------	------------

Bank loans are secured by a fixed and floating charge over all of the company's assets.

16. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 15,210 (2018: £ 33,318 ).

17. Called up share capital

Issued, called up and fully paid

	2019		2018
	No.	£	No.	£
Ordinary shares of £ 0.01 each	2,940,000	29,400	2,940,000	29,400
	------------	--------	------------	--------

Shares issued and fully paid

	2019		2018
	No.	£	No.	£
Ordinary shares of £ 0.01 each	2,940,000	29,400	2,940,000	29,400
	------------	--------	------------	--------

Shares issued and partly paid

2019		2018
No.	£	No.	£

18. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.

19. Related parties

The company operated a loan account with director A. The company advanced £11,000 to the director in the year and this was the balance outstanding at the year end. No interest was charged and the loan is repayable on demand.

20. Controlling party

The company was under the control of the Trustees of the Prabhdyal Sodhi Overseas Settlement throughout the year, an entity based in Gibraltar. The immediate parent company is Festival Care Homes Limited. The ultimate parent company is Lansbury Limited, a company incorporated in Gibraltar.