HAVERSHAM HOUSE LIMITED - Accounts to registrar (filleted)

REGISTERED NUMBER: 02039404 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 APRIL 2020

FOR

HAVERSHAM HOUSE LIMITED

Page

Statement of Financial Position

1

Notes to the Financial Statements

2

to

7

FIXED ASSETS

Tangible assets

6

99,427

107,903

CURRENT ASSETS

Debtors

7

59,087

182,630

Cash at bank and in hand

304,078

124,221

363,165

306,851

CREDITORS

Amounts falling due within one year

8

(197,820

)

(123,925

)

NET CURRENT ASSETS

165,345

182,926

TOTAL ASSETS LESS CURRENT
LIABILITIES

264,772

290,829

PROVISIONS FOR LIABILITIES

(16,332

)

(17,381

)

NET ASSETS

248,440

273,448

CAPITAL AND RESERVES

Called up share capital

100

Retained earnings

248,340

273,348

248,440

273,448

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 February 2021 and were signed on its behalf by:

W Morris - Director

1.	STATUTORY INFORMATION

HAVERSHAM HOUSE LIMITED is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

02039404

Registered office:

C/O Agnes and Arthur Limited

Moorland View

Bradley

Stoke-On-Trent

Staffordshire

ST6 7NG

The principal activity of the company during the year was that of residential care for the elderly.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Significant judgements and estimates

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.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The 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 are as described below.

As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual lives are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidence by disposals during current and prior accounting periods.

Revenue recognition

The company provides residential and care services to the elderly. The turnover shown in the profit and loss account represents the fees due for the services provided during the year.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

10% reducing balance

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Financial instruments

A financial asset or a financial liability is recognised only when the entity 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 are either assessed individually or grouped on the basis of similar credit risk characteristics.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Defined contribution plans

The pension costs charged in the financial statements represent the contribution payable by the company during the year.

Going concern

The financial statements have been prepared on the going concern basis which assumes that the company will continue to receive the support of its parent company, fellow subsidiaries and the company bankers.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Employee benefits

The company provides a range of benefits to employees. Short term benefits, including holiday pay, are recognised as an expense in the profit and loss account in the period in which they are incurred. The company operates a defined contribution plan for its employees. Amounts in respect of defined contribution plans are recognised as an expense in the profit and loss account when they are due.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 48 (2019 - 53 ) .

5.	AUDITORS' REMUNERATION

Period

1.5.18

Year Ended

to

29.4.20

29.4.19

£

Fees payable to the company's auditors for the audit of the
company's financial statements

1,800

6.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 30 April 2019

272,481

Additions

2,363

At 29 April 2020

274,844

DEPRECIATION

At 30 April 2019

164,578

Charge for year

10,839

At 29 April 2020

175,417

NET BOOK VALUE

At 29 April 2020

99,427

At 29 April 2019

107,903

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

29.4.20

29.4.19

£

Trade debtors

32,575

62,763

Amounts owed by group undertakings

2,573

92,179

Other debtors

482

4,868

Prepayments and accrued income

23,457

22,820

59,087

182,630

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of payment and are repayable on demand.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

29.4.20

29.4.19

£

Trade creditors

82,304

51,907

Amounts owed to group undertakings

40,065

1,721

Social security and other taxes

7,931

12,824

Other creditors

39,251

32,448

Accruals and deferred income

28,269

25,025

197,820

123,925

Composite Guarantee in favour of HSBC Bank PLC dated 28 June 2016 between the following companies; Resimed Limited, New Park House Limited, Haversham House Limited, Cloverfields Care Limited, Florence House (Staffordshire) Limited, Agnes and Arthur Limited and The Place Up Hanley Limited.

Unscheduled Mortgage Debenture dated 18 May 2015 in favour of HSBC Bank PLC incorporating a Fixed and Floating Charge over all the current and future assets of the company.

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of payment and are payable on demand.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Simon Owen (Senior Statutory Auditor)

for and on behalf of DPC Accountants Ltd

However, the audit report contains the following:

Material uncertainty related to going concern

We draw attention to note 13 in the financial statements, which indicates that the company is reliant upon the continued support from the parent company, which in turn is reliant upon the continued support of its company bankers. These conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

10.	RELATED PARTY DISCLOSURES

Details of the transactions between fellow group companies have not been disclosed in line with paragraph 33.1A of FRS102.

11.	EVENTS AFTER THE END OF THE REPORTING PERIOD

There were no material events after the end of the reporting period up to 26 February 2021, being the date of approval of the financial statements by the Board.

12.	CONTROLLING PARTY

The company regards Resimed Limited, a company registered in England and Wales, as its ultimate parent undertaking. The consolidated financial statements can be obtained from www.beta.companieshouse.gov.uk.

13.	GOING CONCERN

The directors have reviewed the going concern of the group and the company addressing the following areas:

Financiers

The directors have provided loans to the group to support the finances and there is no intention to withdraw these funds in the next 12 months without first consulting with the other stakeholders. The directors are working closely with the group bankers and discussions are taking place regarding a group restructure and a way forwards regarding reducing the existing facilities and the group is committed to working with them to achieve this, however no firm decision has been made in this regard.

CQC

Issues have arisen within the group since the year end following visits by the CQC. We are now working closely with the CQC on all matters highlighted and action plans have been implemented to address these where relevant. This has included replacing and appointing a number of key members of staff and working closely with various Healthcare Professionals to ensure standards are being met and people are being supported in the correct way.

Management information

We have been producing group monthly management accounts and forecasts, which we review each month when they have been produced. We have been continually reviewing costs for each department in each organisation, and made efforts to keep these on budget or reduce these where they are over budget. We endeavour to produce realistic and achievable forecasts which we have recently been exceeding financially, and which we are positive and optimistic about. Developed links with external agencies has supported us recently with an influx of residents at some homes since our year end, this again supported us with bolstering our financial performance. We will continue to monitor costs and spending across the board, whilst continuing to work on our income. There has been a need to use agency historically across the group due to the various changes we were making, with HR being addressed with the support and guidance of Care Ideals. Our group figures show great improvements on the previous year and showing us being solvent in the current year which we are finding to be very positive. However, agency costs have been greatly reduced due to a successful recruitment drive.

Cashflows

Over the recent past we have been adapting to a new online bidding system for care placements in Stoke on Trent and Staffordshire. More recently we have been successful in receiving placements group wide and the board consider that they have developed good links with council commissioning officers. Historically we have always had a higher proportion of council funded residents and this does continue, however we are attaining an improved rate which will have a positive impact on our group finances which will be reported in our results for the 2021 year. During 2020 we have managed to reduce the overdraft .

In conclusion, the company and the group are still reliant upon the continued support of the parent company, Resimed Limited, which in turn is reliant upon the continued support of the directors and the group bankers.

The board, having reviewed their funding options believe that the group and company will continue to operate. The directors consider in preparing the financial statements that they have taken into account all information that could reasonably be expected to be available. On this basis, they consider that it is appropriate to prepare the financial statements on a going concern basic.

HAVERSHAM HOUSE LIMITED - Accounts to registrar (filleted) - small 18.2

HAVERSHAM HOUSE LIMITED - Accounts to registrar (filleted) - small 18.2