Worcester Garden (No.1) Limited - Period Ending 2021-03-31
Worcester Garden (No.1) Limited - Period Ending 2021-03-31
Registration number:
Worcester Garden (No.1) Limited
for the Period from 1 February 2020 to 31 March 2021
Worcester Garden (No.1) Limited
(Registration number: 04558354)
Balance Sheet as at 31 March 2021
Note |
2021 |
Unaudited |
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Fixed assets |
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Intangible assets |
- |
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Tangible assets |
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Current assets |
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Stocks |
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- |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Revaluation reserve |
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Profit and loss account |
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Shareholders' funds |
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These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
.........................................
Director
Worcester Garden (No.1) Limited
Notes to the Financial Statements for the Period from 1 February 2020 to 31 March 2021
General information |
The company is a private company limited by share capital, incorporated in United Kingdom.
The address of its registered office is:
These financial statements were authorised for issue by the
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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Disclosure of long or short period
Going concern
The director has reviewed budgets to assist with planning and spend over the forthcoming months. Although COVID-19 has had an impact on trading throughout the period ended 31 March 2021, the director does not consider that this will significantly impact the company’s ability to continue as a going concern.
The Company made a profit before tax of £99,384 (2020 - £80,208) and had cash at bank of £222,437 (2020 - £62,982) at the period ended 31 March 2021. Any outbreak is likely to lead to a sudden fall in occupancy, which may not be replaced in the immediate future, however liquidity is unlikely to become an issue due to the large cash reserves.
Based on the above and information available to the Director at the date of approval, the Company continues to adopt the going concern basis in preparing these financial statements and the Company has adequate resources to continue to trade for the foreseeable future being twelve months from approval of these financial statements.
Worcester Garden (No.1) Limited
Notes to the Financial Statements for the Period from 1 February 2020 to 31 March 2021
Audit report
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Grants are credited to deferred revenue. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets to which they relate. Government grants have been recognised on an accruals basis and have been recognised in the same period in which the related expense has been incurred.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income 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.
Tangible assets
Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold land and buildings |
Nil |
Fixtures, fittings and equipment |
15% reducing balance |
No depreciation is provided on freehold land and buildings which is a departure from the requirements of the Companies Act 2006. These properties are held solely for the trade of the company and in the opinion of the director and secured loan provider, their fair value significantly exceeds their book value, although the assets continue to be held at historic cost. Any measure of consumption to depreciate them is therefore not considered to be true and fair reflection of the asset held.
Worcester Garden (No.1) Limited
Notes to the Financial Statements for the Period from 1 February 2020 to 31 March 2021
Goodwill
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. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
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 |
10% straight line |
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.
Debtors
Trade debtors are amounts due from customers for merchandise sold or 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.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Worcester Garden (No.1) Limited
Notes to the Financial Statements for the Period from 1 February 2020 to 31 March 2021
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.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
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.
Staff numbers |
The average number of persons employed by the company (including the director) during the period was
Worcester Garden (No.1) Limited
Notes to the Financial Statements for the Period from 1 February 2020 to 31 March 2021
Intangible assets |
Goodwill |
Total |
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Cost or valuation |
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At 1 February 2020 |
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At 31 March 2021 |
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Amortisation |
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At 1 February 2020 |
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Amortisation charge |
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At 31 March 2021 |
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Carrying amount |
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At 31 March 2021 |
- |
- |
At 31 January 2020 |
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Tangible assets |
Freehold land and buildings |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 February 2020 |
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Additions |
- |
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At 31 March 2021 |
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Depreciation |
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At 1 February 2020 |
- |
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Charge for the period |
- |
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At 31 March 2021 |
- |
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Carrying amount |
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At 31 March 2021 |
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At 31 January 2020 |
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Included within the net book value of land and buildings above is £1,046,930 (2020 - £1,046,930) in respect of freehold land and buildings.
Worcester Garden (No.1) Limited
Notes to the Financial Statements for the Period from 1 February 2020 to 31 March 2021
Stocks |
2021 |
Unaudited |
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Other inventories |
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- |
Debtors |
Note |
2021 |
Unaudited |
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Trade debtors |
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Amounts due from related parties |
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- |
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Other debtors |
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Creditors |
Due within one year |
Note |
2021 |
Unaudited |
Loans and borrowings |
- |
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Trade creditors |
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Social security and other taxes |
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- |
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Other creditors |
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Corporation tax liability |
16,930 |
18,747 |
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Due after one year |
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Loans and borrowings |
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Loans and borrowings |
2021 |
Unaudited |
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Non-current loans and borrowings |
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Bank borrowings |
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Worcester Garden (No.1) Limited
Notes to the Financial Statements for the Period from 1 February 2020 to 31 March 2021
2021 |
Unaudited |
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Current loans and borrowings |
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Bank borrowings |
- |
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Included in loans and borrowings are bank loans totalling £50,000 (2020 - £262,618). This liability is secured by way of a fixed and floating charge over all the property and undertakings of the Company.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of guarantees not included in the balance sheet is £1,669,634 (2020 - £Nil). An unlimited cross-company composite guarantee is in force with the company's parent, Osborne Care Holdings Limited and a related company, Osborne Care Homes Limited, as security for bank borrowings.
Related party transactions |
The company has taken advantage of the exemption within FRS 102 Section 33 in respect of Related Party Transactions not to disclose transactions or balances with the ultimate parent or any wholly owned subsidiary undertakings of the group.
Loans from related parties
2021 |
Key management |
Total |
At start of period |
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Advanced |
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Repaid |
( |
( |
At end of period |
- |
- |
2020 |
Key management |
Total |
At start of period |
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Advanced |
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At end of period |
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