Jubilee Care Ltd - Limited company accounts 22.3

REGISTERED NUMBER: 03558803 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE PERIOD

1 NOVEMBER 2020 TO 31 MARCH 2022

FOR

JUBILEE CARE LTD

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTOR:

Mr M P Madden

REGISTERED OFFICE:

Granville Hall

Granville Road

Leicester

Leicestershire

LE1 7RU

REGISTERED NUMBER:

03558803 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Phillip Bott FCA

AUDITORS:

Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

The director presents his strategic report for the period 1 November 2020 to 31 March 2022.

REVIEW OF BUSINESS

The results for the year and financial position of the company are as shown in the annexed financial statements.

Performance of the business and outlook

This period is a 17 month period from 1st November 2020 to 31st March 2022 so when comparing to the previous year it is not entirely comparable. We have prorated the income to compare to 2020 as detailed below. The accounts for the year ended 31st October 2020 included the income from two care homes, Churchill and Sandford. Sandford was sold in the year to 31st October 2020, leaving Churchill as the only source of income for the company. For the year ended 31st October 2020 the income split of the £4m below which was attributable to Churchill was £2,8m. Based on this comparison the turnover has slightly decreased by £108k (-3.9%) on 2020.

The company was purchased on 6 October 2021 by Welford Healthcare CHH.

Our KPI's for the year show how much we have achieved this year:

KPI's £

1st November 2020 to 31st March 2022(17 Month period)

2022 (Prorated for 1 year)

Year ended 31st October 2020

Year ended 31st October 2020

Churchill only

Churchill only

Churchill and Sandford

Churchill

Turnover

3,779

2,668

4,007

2,776

Staff costs

2,047

1,445

2,211

1,437

The company completes monthly management accounts, agreeing these to budgets to measure actual performance.

Our experienced management team and strong financial position enable us to be well positioned to continue the development of the company.

ON BEHALF OF THE BOARD:

Mr M P Madden - Director

2 December 2022

The director presents his report with the financial statements of the company for the period 1 November 2020 to 31 March 2022.

DIVIDENDS

An interim dividend of £1,437,894 was paid during the year (2020: £3.000.000).

DIRECTORS

The directors who have held office during the period from 1 November 2020 to the date of this report are as follows:

Mr M Freeland - resigned 6 October 2021

Mrs L C Freeland - resigned 6 October 2021

Mr M P Madden - appointed 6 October 2021

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Mark J Rees LLP Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M P Madden - Director

2 December 2022

Opinion

We have audited the financial statements of Jubilee Care Ltd (the 'company') for the period ended 31 March 2022 which comprise the 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 March 2022 and of its profit for the period 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 Auditors' 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

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director 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 Report of the Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above, to detect material misstatements in respect of irregularities, including fraud.

We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition, significant one-off or unusual transaction, going concern and the CQC rating.

Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud).

Our audit procedures included but were not limited to:

- A review of a sample of occupancy reports in the year to ensure these were correctly recorded in revenue and detailed cut off testing around the year end to ensure revenue is correctly recognised.

- A review of laws and regulations the company is subject to, being specifically the CQC review and rating and discussion with management to ensure no instances of non compliance.

- Addressing the risks of fraud through management override of controls by performing journal entry testing.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Mr Phillip Bott FCA (Senior Statutory Auditor)

for and on behalf of Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

15 December 2022

TURNOVER

3

3,779,353

4,007,998

Cost of sales

2,187,471

2,294,936

GROSS PROFIT

1,591,882

1,713,062

Administrative expenses

677,396

578,531

914,486

1,134,531

Other operating income

59,295

67,594

OPERATING PROFIT

5

973,781

1,202,125

Profit/loss on sale of trade

and freehold property

6

-

1,681,279

973,781

2,883,404

Interest payable and similar expenses

7

185,266

5,522

PROFIT BEFORE TAXATION

788,515

2,877,882

Tax on profit

8

147,750

449,200

PROFIT FOR THE FINANCIAL PERIOD

640,765

2,428,682

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

6,958,219

1,024,571

Investments

12

-

6

6,958,219

1,024,577

CURRENT ASSETS

Stocks

13

-

3,810

Debtors

14

477,974

453,299

Cash at bank and in hand

211,769

322,080

689,743

779,189

CREDITORS

Amounts falling due within one year

15

701,706

483,323

NET CURRENT (LIABILITIES)/ASSETS

(11,963

)

295,866

TOTAL ASSETS LESS CURRENT LIABILITIES

6,946,256

1,320,443

CREDITORS

Amounts falling due after more than one year

16

(6,777,007

)

(300,061

)

PROVISIONS FOR LIABILITIES

20

(3,680

)

(57,684

)

NET ASSETS

165,569

962,698

CAPITAL AND RESERVES

Called up share capital

21

2

2

Retained earnings

22

165,567

962,696

SHAREHOLDERS' FUNDS

165,569

962,698

The financial statements were approved by the director and authorised for issue on 2 December 2022 and were signed by:

Mr M P Madden - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2019

2

1,534,014

1,534,016

Changes in equity

Dividends

-

(3,000,000

)

(3,000,000

)

Total comprehensive income

-

2,428,682

2,428,682

Balance at 31 October 2020

2

962,696

962,698

Changes in equity

Dividends

-

(1,437,894

)

(1,437,894

)

Total comprehensive income

-

640,765

640,765

Balance at 31 March 2022

2

165,567

165,569

1.	STATUTORY INFORMATION

Jubilee Care Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Revenue represents income receivable from health and care provision services rendered and goods supplied.

Revenue is recognised in the accounting period in which the company obtains the right to consideration in exchange for its performance.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Freehold property

-

2% on cost

Long leasehold

-

Straight line over 25 years

Fixtures and fittings

-

20% on cost and 10% on cost

Motor vehicles

-

33% on cost

Government grants

During the year the company received various grants such as, the Rapid Testing Grant, Infection Control Grant and from Shropshire Council. The amounts received are included within the accounts on an accruals basis.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 period 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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently, where material, at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at transaction price, less any impairment. Other financial liabilities, including bank loans are measured initially at fair value, net of transaction costs, and are measured subsequently, where material, at amortised cost using the effective interest method, less any impairment.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

£

£

United Kingdom

3,779,353

4,007,998

3,779,353

4,007,998

4.	EMPLOYEES AND DIRECTORS

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

£

£

Wages and salaries

1,842,504

2,015,062

Social security costs

149,797

146,606

Other pension costs

54,908

49,247

2,047,209

2,210,915

The average number of employees during the period was as follows:

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

Admin

2

6

Carers

67

110

69

116

During the year, remuneration of £71,488 was paid to key management personnel.

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

£

£

Depreciation - owned assets

212,667

120,828

Auditors remuneration

5,600

6,160

6.	EXCEPTIONAL ITEMS

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

£

£

Profit/loss on sale of trade

and freehold property

-

1,681,279

During the year ended 31 October 2020 the company sold a care home and trade for £2,500,000 and made a profit on sale of £1,681,279.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

£

£

Bank loan interest

4,834

5,022

Other interest

180,432

500

185,266

5,522

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

£

£

Current tax:

UK corporation tax

201,754

447,992

Prior year

UK corporation tax

-

5,000

Total current tax

201,754

452,992

Deferred taxation

(54,004

)

(3,792

)

Tax on profit

147,750

449,200

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

£

£

Profit before tax

788,515

2,877,882

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

149,818

546,798

Effects of:

Expenses not deductible for tax purposes

2,363

18,793

Depreciation in excess of capital allowances

4,828

12,665

Adjustments to tax charge in respect of previous periods

-

5,000

Finance lease charge

(9,259

)

-

Exceptional item

-

(134,056

)

Total tax charge

147,750

449,200

9.

DIVIDENDS

Period

1.11.20

to

Year Ended

31.3.22

31.10.20

£

£

Ordinary shares of £1 each

Interim

1,437,894

3,000,000

The company paid dividends of £480,000 (2020: £3,000,000) to its previous parent company Wemyss Lodge Limited. Wemyss Lodge Limited then transferred, via a distribution in specie its shareholding in the company to Stratton Colebrook Limited. Following this transfer a dividend in specie was voted of £957,894 which transferred the property, including its assets, and dormant subsidiaries to Stratton Colebrook Limited at net book value.

10.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 November 2020

309,000

Disposals

(309,000

)

At 31 March 2022

-

AMORTISATION

At 1 November 2020

309,000

Eliminated on disposal

(309,000

)

At 31 March 2022

-

NET BOOK VALUE

At 31 March 2022

-

At 31 October 2020

-

11.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Long

and

Motor

property

leasehold

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 November 2020

1,408,778

-

777,260

21,745

2,207,783

Additions

-

7,077,808

3,899

22,495

7,104,202

Disposals

(1,408,778

)

-

(781,159

)

-

(2,189,937

)

At 31 March 2022

-

7,077,808

-

44,240

7,122,048

DEPRECIATION

At 1 November 2020

527,819

-

636,713

18,680

1,183,212

Charge for period

25,828

138,960

41,690

6,189

212,667

Eliminated on disposal

(553,647

)

-

(678,403

)

-

(1,232,050

)

At 31 March 2022

-

138,960

-

24,869

163,829

NET BOOK VALUE

At 31 March 2022

-

6,938,848

-

19,371

6,958,219

At 31 October 2020

880,959

-

140,547

3,065

1,024,571

Included within the net book value of land and buildings above is £nil (2020 - £880,959) in respect of freehold land and buildings.

12.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 November 2020

6

Disposals

(6

)

At 31 March 2022

-

NET BOOK VALUE

At 31 March 2022

-

At 31 October 2020

6

The above disposal related to the dormant subsidiaries that were owned by the company being Churchill House Nursing Home Ltd, Jubilee Care (SNH) Limited and Jubilee Care (NHRH) Limited which were transferred to Stratton Colebrook Limited on 27th September 2021 at nominal value.