St Dominic's Ltd. - Period Ending 2019-12-31

Registration number: 02420790

St Dominic's Ltd.

Annual Report and Financial Statements

for the Year Ended 31 December 2019

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

St Dominic's Ltd.

Contents

Company Information	1
Directors' Report	2
Strategic Report	3
Statement of Directors' Responsibilities	4
Independent Auditor's Report	5 to 6
Profit and Loss Account	7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 to 21

St Dominic's Ltd.

Company Information

Directors

S Jeebun Z Jeebun

Company secretary

Z Jeebun

Registered office

Image Court 328-334 Moseley Road Walton On Thames Surrey KT12 3LT

Bankers

Royal Bank Of Scotland PLC 21 Thames Street Kingston Upon Thames Surrey KT1 1QE

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

- 1 -

St Dominic's Ltd.

Directors' Report for the Year Ended 31 December 2019

The directors present their report and the financial statements for the year ended 31 December 2019.

Directors of the company

The directors who held office during the year were as follows:

S Jeebun

Z Jeebun

Future developments

The external environment is expected to remain competitive going forward, however, the directors remain confident that the group to which the company belongs will improve its current level of performance in the future.

Disclosure of information to the auditors

Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Appointment of auditors

Hazlewoods LLP were appointed as auditors to the company during the period, following the resignation of Wellden Turnbull Limited, and have expressed their willingness to continue in office.

Approved by the Board on 29 April 2021 and signed on its behalf by:

S Jeebun
Director

- 2 -

St Dominic's Ltd.

Strategic Report for the Year Ended 31 December 2019

The directors present their strategic report for the year ended 31 December 2019. The comparative period is from 23 December 2017 to 31 December 2018.

Principal activity

The principal activity of the company is that of the provision of nursing care and accommodation to the elderly.

Fair review of the business

The results for the year, which are set out in the profit and loss account, show an operating profit of £980,824 (2018 - £1,132,185).

The company has tangible fixed assets and intangible fixed assets valued in the financial statements at net book value amounting to £9325,756 (2018 - £9,282,552) and £268,602 (2018 - £306,970) respectively. The directors consider the company's financial position at the year end to be satisfactory.

The company's key financial and other performance indicators during the year were as follows:

	Unit	2019	2018
Turnover	£	4,897,703	4,696,985
Operating profit, excluding exceptional items	£	980,824	1,132,185
Gross profit margin	%	44	42
Average weekly fee	£	877	890

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to the continued provision of adequate government funding. Current and future strategy includes a shift of focus towards the intake of private residents in order to reduce reliance on the government.

Financial instruments

Objectives and policies

The directors constantly monitor the company's trading results and revise projections as appropriate to ensure that the company can meet its future obligations as they fall due.

Price risk, credit risk, liquidity risk and cash flow risk

The company is exposed to credit and cash flow risks associated with trading and manages these through credit control procedures. The nature of its financial instruuments means that price and liquidity risks are minimised by the predetermination of the company funding facilities and terms. The board monitors the company's trading results with a view to ensuring that the company can meet its future obligations as they fall due.

Approved by the Board on 29 April 2021 and signed on its behalf by:

S Jeebun
Director

- 3 -

St Dominic's Ltd.

Statement of Directors' Responsibilities

The directors are responsible for preparing the Directors' Report, Strategic Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;
•	make judgements and accounting estimates that are reasonable and prudent;
•	state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and
•	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.

- 4 -

St Dominic's Ltd.

Independent Auditor's Report to the Members of St Dominic's Ltd.

Opinion

We have audited the financial statements of St Dominic's Ltd. (the 'company') for the year ended 31 December 2019, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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; and
•	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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•	the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

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St Dominic's Ltd.

Independent Auditor's Report to the Members of St Dominic's Ltd.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of 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 Statement of Directors' Responsibilities set out on page 4, 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 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Worsley (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

29 April 2021

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St Dominic's Ltd.

Profit and Loss Account for the Year Ended 31 December 2019

	Note	Year ended 31 December 2019  £	23 December 2017 to 31 December 2018  £
Turnover	3	4,897,703	4,696,984
Cost of sales		(2,756,722)	(2,737,902)
Gross profit		2,140,981	1,959,082
Administrative expenses		(1,160,157)	(826,898)
Operating profit	4	980,824	1,132,184
Interest payable and similar charges	5	(124,967)	(128,034)
Profit before tax		855,857	1,004,150
Taxation	8	(127,866)	(134,298)
Profit for the financial year		727,991	869,852

The above results were derived from continuing operations.

The notes on pages 11 to 21 form an integral part of these financial statements.
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St Dominic's Ltd.

Statement of Comprehensive Income for the Year Ended 31 December 2019

	Note	Year ended 31 December 2019  £	23 December 2017 to 31 December 2018  £
Profit for the year		727,991	869,852
Deferred tax movement on property revaluation reserve		(157,148)	34,697
Surplus/(deficit) on revaluation of other assets		-	1,404,927
Total comprehensive income for the year		570,843	2,309,476

The notes on pages 11 to 21 form an integral part of these financial statements.
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St Dominic's Ltd.

(Registration number: 02420790)
Balance Sheet as at 31 December 2019

	Note	31 December 2019  £	31 December 2018  £
Fixed assets
Intangible assets	9	268,602	306,970
Tangible assets	10	9,325,756	9,282,552
		9,594,358	9,589,522
Current assets
Debtors	11	3,360,039	3,146,042
Cash at bank and in hand		455,878	243,939
		3,815,917	3,389,981
Creditors: Amounts falling due within one year	12	(2,268,277)	(2,363,351)
Net current assets		1,547,640	1,026,630
Total assets less current liabilities		11,141,998	10,616,152
Creditors: Amounts falling due after more than one year	12	(2,765,031)	(2,967,176)
Provisions for liabilities	8	(749,572)	(592,424)
Net assets		7,627,395	7,056,552
Capital and reserves
Called up share capital	14	50	50
Revaluation reserve		2,927,439	3,084,587
Profit and loss account		4,699,906	3,971,915
Total equity		7,627,395	7,056,552

Approved and authorised by the Board on 29 April 2021 and signed on its behalf by:
 

 

S Jeebun
Director

The notes on pages 11 to 21 form an integral part of these financial statements.
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St Dominic's Ltd.

Statement of Changes in Equity for the Year Ended 31 December 2019

	Share capital £	Revaluation reserve £	Profit and loss account £	Total £
At 1 January 2019	50	3,084,587	3,971,915	7,056,552
Profit for the year	-	-	727,991	727,991
Deferred tax relating to revaluation reserve	-	(157,148)	-	(157,148)
At 31 December 2019	50	2,927,439	4,699,906	7,627,395

	Share capital £	Revaluation reserve £	Profit and loss account £	Total £
At 23 December 2017	50	1,656,100	3,090,926	4,747,076
Profit for the year	-	-	869,852	869,852
Revaluation of property	-	1,404,927	-	1,404,927
Deferred tax relating to revaluation of property	-	34,697	-	34,697
Transfers	-	(11,137)	11,137	-
At 31 December 2018	50	3,084,587	3,971,915	7,056,552

The notes on pages 11 to 21 form an integral part of these financial statements.
- 10 -

St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Image Court
328-334 Moseley Road
Walton On Thames
Surrey
KT12 3LT

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

The company has not presented a cash flow statement on the grounds that the company is a wholly owned subsidiary and a group cash flow statement is included in the financial statements of the ultimate parent company.

Name of parent of group

These financial statements are consolidated in the financial statements of Aster Healthcare Limited.

The financial statements of Aster Healthcare Limited may be obtained from Companies House.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

The financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover represents the amounts receivable during the year for the provision of care and accommodation. Where the amount received relates to a period which covers the balance sheet date, that amount is apportioned over the period to which it relates.

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St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Freehold property is held in the balance sheet at fair value at the date of the revaluation less any subsequent accumulated depreciation. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance sheet date.

Fairs values are determined from market based evidence.

Revaluation gains and losses are recognised in the statement of comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the profit or loss account.

Fixtures and fittings are stated in the balance sheet at historical cost, less any subsequent accumulated depreciation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold property	1% on cost
Fixtures and fittings	7.5% - 33% on cost

Freehold land is not depreciated.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	Straight line over 20 years

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St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financial transaction, the financial assets or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

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St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

3

Revenue

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

4

Operating profit

Arrived at after charging:

	Year ended 31 December 2019  £	23 December 2017 to 31 December 2018  £
Depreciation expense	75,888	76,838
Amortisation expense	38,368	38,368

5

Interest payable and similar expenses

	2019 £	2018 £
Interest on bank overdrafts and borrowings	124,967	128,034

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	Year ended 31 December 2019  £	23 December 2017 to 31 December 2018  £
Wages and salaries	2,109,203	2,095,097
Social security costs	144,233	147,513
Pension costs, defined contribution scheme	17,656	9,485
	2,271,092	2,252,095

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

	Year ended 31 December 2019  No.	23 December 2017 to 31 December 2018  No.
Administration and support	8	8
Care	113	128
	121	136

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St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

7

Auditors' remuneration

	2019 £	2018 £
Audit of the financial statements	7,000	8,100

 

- 16 -

St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

8

Taxation

Tax charged/(credited) in the profit and loss account

	Year ended 31 December 2019  £	23 December 2017 to 31 December 2018  £
Current taxation
UK corporation tax	127,866	149,394
Deferred taxation
Arising from origination and reversal of timing differences	-	(15,096)
Tax expense in the income statement	127,866	134,298

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2018 - lower than the standard rate of corporation tax in the UK) of 19% (2018 - 19%).

The differences are reconciled below:

	2019 £	2018 £
Profit before tax	855,857	1,004,150
Corporation tax at standard rate	162,613	190,789
Effect of expense not deductible in determining taxable profit (tax loss)	12,813	7,547
Tax increase/(decrease) from effect of capital allowances and depreciation	5,451	(695)
Tax decrease arising from group relief	(53,011)	(48,246)
Other tax effects for reconciliation between accounting profit and tax expense (income)	-	(15,097)
Total tax charge	127,866	134,298

Deferred tax

Deferred tax assets and liabilities

2019	Liability £
Accelerated capital allowances	62,889
Property revaluations	686,683
	749,572

2018	Liability £
Accelerated capital allowances	62,889
Property revaluations	529,535
	592,424

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St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

9

Intangible assets

	Goodwill  £
Cost
At 1 January 2019 and at 31 December 2019	767,420
Amortisation
At 1 January 2019	460,450
Amortisation charge	38,368
At 31 December 2019	498,818
Carrying amount
At 31 December 2019	268,602
At 31 December 2018	306,970

10

Tangible assets

	Freehold property £	Fixtures and fittings  £	Total £
Cost or valuation
At 1 January 2019	9,252,822	641,151	9,893,973
Additions	116,598	2,494	119,092
At 31 December 2019	9,369,420	643,645	10,013,065
Depreciation
At 1 January 2019	-	611,421	611,421
Charge for the period	57,423	18,465	75,888
At 31 December 2019	57,423	629,886	687,309
Carrying amount
At 31 December 2019	9,311,997	13,759	9,325,756
At 31 December 2018	9,252,822	29,730	9,282,552

The 31 December 2019 valuation of freehold property is based on an anlysis carried out in August 2019 by the directors of the Company. The basis of the valuation is existing use value with regards to trading potential, derived from financials and resident ocupancy as at 31 July 2019. The directors believe the valuation is reprsentative at the period end of the fair value of the freehold property held by the Company.

Freehold property includes land of £1,089,371 (2018: £1,089,371) which is not depreciated.

The carrying amount of freehold property that would have been recognised at 31 December 2019 had the property been carried under the historical cost model is £5,858,950 (2018: £5,793,724).

- 18 -

St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

11

Debtors

	31 December 2019  £	31 December 2018  £
Trade debtors	135,754	342,000
Amounts owed by group undertakings	3,171,976	2,712,365
Other receivables	11,828	50,911
Prepayments	40,481	40,766
	3,360,039	3,146,042

12

Creditors

	Note	31 December 2019  £	31 December 2018  £
Due within one year
Loans and borrowings	13	211,211	220,278
Trade creditors		175,813	217,354
Amounts due to group undertakings		1,144,965	1,226,230
Social security and other taxes		38,566	32,125
Outstanding defined contribution pension costs		5,499	2,120
Other payables		360,275	400,551
Accrued expenses		173,692	115,299
Corporation tax liability	8	158,256	149,394
		2,268,277	2,363,351
Due after one year
Loans and borrowings	13	2,765,031	2,967,176

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St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

13

Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	211,211	220,278

	31 December 2019  £	31 December 2018  £
Non-current loans and borrowings
Bank borrowings	2,765,031	2,967,176

All bank loans are secured by legal charges over the freehold property owned by the company, and by intercompany guarantees between the company and Aster Healthcare Limited (parent undertaking) and Southern Counties Care Limited (fellow subsidiary undertaking of Aster Healthcare Limited), incorporating legal charges and debentures over the assets of the undertakings.

Included within bank loans are four long term loans secured as stated above. The loans are repayable in equal monthly instalments between October 2007 and August 2027. Interest is charged at 3.3% over the Bank of England base rate.

The amount repayable in over 5 years is £1,792,856 (2018 - £2,003,068).

14

Share capital

Allotted, called up and fully paid shares

	31 December 2019		31 December 2018
	No.	£	No.	£
Ordinary shares of £1 each	50	50	50	50

15

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £17,656 (2018 - £9,485).

Contributions totalling £5,499 (2018 - £2,120) were payable to the scheme at the end of the year and are included in creditors.

16

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

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St Dominic's Ltd.

Notes to the Financial Statements for the Year Ended 31 December 2019

	2019 £	2018 £
Not later than one year	15,162	15,162
Later than one year and not later than five years	29,770	44,932
	44,932	60,094

17

Contingent liabilities

The company is bound by an unlimited multilateral cross guarantee with Aster Healthcare Limited (parent undertaking) and Southern Counties Care Limited (fellow subsidiary undertaking of Aster Healthcare Limited), in respect of bank borrowings. The maxiumum amount for which the company would become liable at 31 December 2019 as a result of these arrangements was £5,570,253 (2018 - £5,955,300).

18

Parent and ultimate parent undertaking

The company's immediate parent is Aster Healthcare Ltd, incorporated in England and Wales.

 

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