ACCOUNTS - Final Accounts preparation

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 2021-03-312021-03-312021-03-31truetruetrue2020-04-01falsefalse55trueThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 08033207 2020-04-01 2021-03-31 08033207 2019-04-01 2020-03-31 08033207 2021-03-31 08033207 2020-03-31 08033207 1 2020-04-01 2021-03-31 08033207 d:CompanySecretary1 2020-04-01 2021-03-31 08033207 d:Director1 2020-04-01 2021-03-31 08033207 d:Director2 2020-04-01 2021-03-31 08033207 d:Director3 2020-04-01 2021-03-31 08033207 d:Director4 2020-04-01 2021-03-31 08033207 d:Director5 2020-04-01 2021-03-31 08033207 d:RegisteredOffice 2020-04-01 2021-03-31 08033207 c:CurrentFinancialInstruments 2021-03-31 08033207 c:CurrentFinancialInstruments 2020-03-31 08033207 c:Non-currentFinancialInstruments 2021-03-31 08033207 c:Non-currentFinancialInstruments 2020-03-31 08033207 c:CurrentFinancialInstruments c:WithinOneYear 2021-03-31 08033207 c:CurrentFinancialInstruments c:WithinOneYear 2020-03-31 08033207 c:Non-currentFinancialInstruments c:AfterOneYear 2021-03-31 08033207 c:Non-currentFinancialInstruments c:AfterOneYear 2020-03-31 08033207 c:UKTax 2020-04-01 2021-03-31 08033207 c:UKTax 2019-04-01 2020-03-31 08033207 c:ShareCapital 2021-03-31 08033207 c:ShareCapital 2020-03-31 08033207 c:RetainedEarningsAccumulatedLosses 2020-04-01 2021-03-31 08033207 c:RetainedEarningsAccumulatedLosses 2021-03-31 08033207 c:RetainedEarningsAccumulatedLosses 2019-04-01 2020-03-31 08033207 c:RetainedEarningsAccumulatedLosses 2020-03-31 08033207 c:RetainedEarningsAccumulatedLosses 2019-04-01 08033207 d:OrdinaryShareClass1 2020-04-01 2021-03-31 08033207 d:OrdinaryShareClass1 2021-03-31 08033207 d:OrdinaryShareClass1 2020-03-31 08033207 d:FRS102 2020-04-01 2021-03-31 08033207 d:Audited 2020-04-01 2021-03-31 08033207 d:FullAccounts 2020-04-01 2021-03-31 08033207 d:PrivateLimitedCompanyLtd 2020-04-01 2021-03-31 08033207 c:Subsidiary1 2020-04-01 2021-03-31 08033207 c:Subsidiary1 1 2020-04-01 2021-03-31 08033207 c:Subsidiary2 2020-04-01 2021-03-31 08033207 c:Subsidiary2 1 2020-04-01 2021-03-31 08033207 c:Subsidiary3 2020-04-01 2021-03-31 08033207 c:Subsidiary3 1 2020-04-01 2021-03-31 08033207 c:Subsidiary4 2020-04-01 2021-03-31 08033207 c:Subsidiary4 1 2020-04-01 2021-03-31 08033207 c:Subsidiary5 2020-04-01 2021-03-31 08033207 c:Subsidiary5 1 2020-04-01 2021-03-31 08033207 c:Subsidiary6 2020-04-01 2021-03-31 08033207 c:Subsidiary6 1 2020-04-01 2021-03-31 08033207 c:Subsidiary7 2020-04-01 2021-03-31 08033207 c:Subsidiary7 1 2020-04-01 2021-03-31 08033207 c:Subsidiary8 2020-04-01 2021-03-31 08033207 c:Subsidiary8 1 2020-04-01 2021-03-31 08033207 2 2020-04-01 2021-03-31 08033207 6 2020-04-01 2021-03-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 08033207

CARDALE INFRASTRUCTURE INVESTMENTS
LIMITED

AUDITED

DIRECTORS' REPORT
AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED
31 MARCH 2021

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

COMPANY INFORMATION

Directors	Mr N. D. Taee
	Mr R. J. Austin
	Mr P. P. Copley
	Mr C. J. Taee
	Mr A. T. S. Parry


Company secretary	Mr A. T. S. Parry


Registered number	08033207


Registered office	4 Greengate
	Cardale Park
	Harrogate
	North Yorkshire
	HG3 1GY


Independent auditors	Wellden Turnbull Limited
	Chartered Accountants & Statutory Auditors
	Albany House
	Claremont Lane
	Esher
	Surrey
	KT10 9FQ

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

CONTENTS

	Page
Directors' report	1 - 2
Independent auditors' report	3 - 6
Statement of income and retained earnings	7
Statement of financial position	8
Notes to the financial statements	9 - 18

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The directors present their report and the financial statements for the year ended 31 March 2021.

Directors' responsibilities statement

The directors are responsible for preparing the directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgements and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙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 to 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.

Principal activity

The The Company owns and manages the affairs of a portfolio of Companies providing services under the Government's Private Finance Initiative (PFI).

Results and dividends

The loss for the year, after taxation, amounted to £309,268 (2020 - loss £179,469).

No dividends (2020 - £nil) were paid during the year and the directors have not recommended a final dividend to be paid (2020 - £nil).

Directors

The directors who served during the year were:

Mr N. D. Taee

Mr R. J. Austin

Mr P. P. Copley

Mr C. J. Taee

Mr A. T. S. Parry

Page 1

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Post balance sheet events

Subsequent to the year end date, global economies and financial markets have continued to be affected by the uncertainties arising from the COVID-19 virus pandemic. The Company has investments in subsidiaries providing services under the Government's Private Finance Initiative (PFI), and has group loan financing with its parent company. The Directors have assessed the impact and risk of the current market conditions on the Company and do not believe these to be material in nature. Details of the Directors' going concern assessment are included in note 2.4.

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Mr A. T. S. Parry

Director

Date: 22 December 2021

Page 2

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

Opinion

We have audited the financial statements of Cardale Infrastructure Investments Limited (the 'Company') for the year ended 31 March 2021, which comprise the statement of income and retained earnings, the statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 2021 and of its loss 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 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 United Kingdom, including the Financial Reporting Council'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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Page 3

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARDALE INFRASTRUCTURE INVESTMENTS LIMITED (CONTINUED)

Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the directors' report has 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 directors' report.

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

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit; or

∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 1, 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.

Page 4

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARDALE INFRASTRUCTURE INVESTMENTS LIMITED (CONTINUED)

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 an auditors' 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.

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

∙Enquiry of management and those charged with governance as to actual and potential litigation and claims;

∙Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations;

∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias;

∙Assessing the reasonableness of interest receivable and payable recognised in the period based on contractual terms and obligations and the requirement of accounting standards;

∙Reviewing and challenging the underlying assumptions and valuation methodology used for the valuation of the Company's group loans including assessing the reasonableness of valuation inputs and assumptions in the context of market available data to assess for indicators of management bias;

∙Reviewing the tax provisions of the Company with the assistance of our independent tax specialists; and

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 auditors' report.

Page 5

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARDALE INFRASTRUCTURE INVESTMENTS LIMITED (CONTINUED)

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 auditors' 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.

Mark Nelligan FCA (Senior statutory auditor)

for and on behalf of

Wellden Turnbull Limited

Chartered Accountants

Statutory Auditors

Albany House

Claremont Lane

Esher

Surrey

KT10 9FQ

Date: 22 December 2021

Page 6

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 MARCH 2021

	2021	2020
Note	£	£


Turnover		82,368	95,787
Administrative expenses		(99)	(80)
Operating profit		82,269	95,707
Income from fixed assets investments		480,000	589,564
Interest receivable and similar income	7	858,589	1,052,383
Interest payable and expenses	8	(1,917,123)	(1,917,123)
Loss before tax		(496,265)	(179,469)
Tax on loss	9	186,997	-
Loss after tax		(309,268)	(179,469)


Retained earnings at the beginning of the year	(1,827,691)	(1,648,222)
Loss for the year	(309,268)	(179,469)
Retained earnings at the end of the year	(2,136,959)	(1,827,691)

There were no recognised gains and losses for 2021 or 2020 other than those included in the statement of income and retained earnings.

The notes on pages 9 to 18 form part of these financial statements.

Page 7

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

REGISTERED NUMBER: 08033207

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2021

		2021		2020
Note		£		£

Fixed assets
Investments	10		14,412,725		14,412,725
Current assets
Debtors: amounts falling due after more than one year	11	5,583,120		5,653,233
Debtors: amounts falling due within one year	11	987,321		946,172
Cash at bank and in hand	12	102,945		655,026
		6,673,386		7,254,431
Creditors: amounts falling due within one year	13	(2,496,411)		(2,768,188)
Net current assets			4,176,975		4,486,243
Total assets less current liabilities			18,589,700		18,898,968
Creditors: amounts falling due after more than one year	14		(20,725,659)		(20,725,659)
Net liabilities			(2,135,959)		(1,826,691)

Capital and reserves
Called up share capital	16	1,000	1,000
Profit and loss account	17	(2,136,959)	(1,827,691)
Shareholders' deficit		(2,135,959)	(1,826,691)

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr A. T. S. Parry

Director

Date: 22 December 2021

The notes on pages 9 to 18 form part of these financial statements.

Page 8

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1.	General information

Cardale Infrastructure Investments Limited is a private company, limited by shares, incorporated in England and Wales, registered number 08033207. The registered office is 4 Greengate, Cardale Park, Harrogate, North Yorkshire, HG3 1GY.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are presented in sterling, which is the functional currency of the Company and rounded to the nearest £.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Compliance with accounting standards

The accounts have been prepared in accordance with the provisions of FRS 102. There were no material departures from the standard.

2.3

Financial reporting standard 102 - reduced disclosure exemptions

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

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Cardale PFI Investments Limited as at 31 March 2021 and these financial statements may be obtained from the registered office address at 4 Greengate, Cardale Park, Harrogate, North Yorkshire, HG3 1GY.

Page 9

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.Accounting policies (continued)

2.4

Going concern

The financial statements have been prepared on a going concern basis. The Company is in a net liability position, and although it has made a loss in the year, it has generated sufficient cash from operations to meet its liabilities as they fall due. In assessing the appropriateness of the going concern basis of preparation, the Directors have taken into account the key risks of the business, including the uncertainty in relation to COVID-19. The Company is the parent company for 8 subsidiary companies and a joint venture company which provide services in leisure centres, serviced accommodations, hospital equipment and hospital maintenance facilities under PFI contracts. The Company has back to back loans with its subsidiaries, its joint venture and with its parent company. The performance of the Company and its ability to meet its liabilities is therefore directly linked to the underlying performance of its 8 subsidiary companies and joint venture company.
As part of their assessment of going concern the Directors have considered the Company's projected profits and cash flows by reference to the business financial models covering accounting periods up to the maturity of the PFI contracts and the availability of cash resources including those of the Company’s subsidiaries and joint venture. Forecasts support that the subsidiaries and associate will continue to generate sufficient cash flows over the terms of the PFI contracts to allow it to meet its liabilities, including those under the loan agreement with the Company. The Company also has the ongoing support of its parent Cardale PFI Investments Limited with which it has a loan facility. The parent will not call this loan to the detriment of the Company. Having undertaken this assessment the Directors consider it is appropriate to prepare the financial statements on a going concern basis.

2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 10

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.Accounting policies (continued)

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.9

Current and deferred taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 income.

2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.11

Associates and Joint Ventures

Associates and Joint Ventures are held at cost less impairment.

2.12

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 at amortised cost using the effective interest method, less any impairment.

2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.14

Creditors

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

Page 11

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.Accounting policies (continued)

2.15

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of income and retained earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

3.	JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

There are no judgements or estimates when applying the accounting policies that have a significant effect on the amounts recognised in the financial statements that are not readily apparent from other sources.

4.	Auditors' remuneration
	The audit fee for 31 March 2021 and 31 March 2020 has been borne by the parent Company, Cardale PFI investments Limited.

Page 12

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Employees

The average monthly number of employees, including the directors, during the year was as follows:

	2021	2020
	No.	No.

Directors	5	5

During the year, no director received any emoluments (2020 - £nil).

6.	Income from investments
		2021	2020
		£	£

	Dividends received from unlisted investments	480,000	589,564

7.	Interest receivable
		2021	2020
		£	£

Other interest receivable

858,589

1,052,383

8.	Interest payable and similar expenses
		2021	2020
		£	£

Other loan interest payable

1,917,123

Page 13

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

9.	Taxation

		2021	2020
		£	£

Corporation tax
Group relief receivable	(186,997)	-


	Taxation on (loss)/profit on ordinary activities	(186,997)	-

Factors affecting tax charge for the year
The tax assessed for the year is lower than (2020 - lower than) the standard rate of corporation tax in the UK of 19% (2020 - 19%). The differences are explained below:
	2021	2020
	£	£

Profit on ordinary activities before tax

(496,265)

(179,469)

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	(94,290)	(34,099)
Effects of:
Group relief	(92,707)	34,099
Total tax charge for the year	(186,997)	-

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 14

CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

10.	Fixed asset investments

	Investments in subsidiary companies	Investments in associates and joint ventures	Total
	£	£	£
Cost or valuation
At 1 April 2020	12,258,196	2,154,529	14,412,725
At 31 March 2021	12,258,196	2,154,529	14,412,725

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

Leisure Infrastructure Investors Limited (directly held)	Ordinary	100%
DC Projects (Amber Valley) Limited	Ordinary	100%
DC Projects (Rotherham) Limited	Ordinary	100%
DC Projects (Wolverhampton) Limited	Ordinary	100%
Cardale PFI Management Limited (directly held)	Ordinary	100%
Young Herts Limited	Ordinary	100%
Caring 4 Croydon Limited	Ordinary	75%
Healthsource (Bromley) Limited	Ordinary	100%

2 of the subsidiaries are held directly and the others are held indirectly through intermediary parent companies. All the above companies' registered office was 4 Greengate, Cardale Park, Harrogate, North Yorkshire, HG3 1GY.

	Participating interests
	The Company has a 50% holding in Hull Citycare (Investments) Limited, a joint venture with shared control. Hull Citycare (Investments) Limited in turn holds 60% of Hull Citycare Limited managing a healthcare facilities PFI contract.

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CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

11.	Debtors
		2021	2020
		£	£

Due after more than one year
Amounts owed by group undertakings	3,377,823	3,447,936
Amounts owed by joint ventures and associated undertakings	2,205,297	2,205,297
	5,583,120	5,653,233

Amounts owed by group undertakings are charged at interest rates between 11% and 12.71%, and repayable between 2032 and 2043.

					2021	2020
					£	£

Due within one year
Trade debtors	-	12,000
Other debtors	1,000	13,292
Prepayments and accrued income	986,321	920,880
	987,321	946,172

12.	Cash and cash equivalents
		2021	2020
		£	£

	Cash at bank and in hand	102,945	655,026

13.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Amounts owed to group undertakings	2,492,230	2,768,188
Other taxation and social security	4,181	-
	2,496,411	2,768,188

Amounts owed to group undertakings are interest free and repayable on demand.

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CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

14.	Creditors: Amounts falling due after more than one year
		2021	2020
		£	£

	Other loans	20,725,659	20,725,659

The Company has senior secured loan notes in issue of £4,400,000 due in 2035 and £16,325,659 due in 2038, both attracting interest at a rate of 9.25% per annum payable semi-annually, and both repayable in full at the end of the loan note term.
The loan notes are secured by a debenture over the Company's assets, Cardale Infrastructure Investments Limited's group assets, and by cross guarantees between the respective group and related group companies.

The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
	2021	2020
	£	£


	Other loans	20,725,659	20,725,659

15.	Basic financial instruments
	Financial assets held that are debt instruments measured at amortised cost amounted to £5,584,120 (2020 - £5,666,233). Financial liabilities held that are debt instruments measured at amortised cost amounted to £23,217,890 (2020 - £23,493,847).

16.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

1,000 (2020 - 1,000) Ordinary shares of £1.00 each	1,000	1,000

17.

Reserves

Profit & loss account

The profit and loss account represents cumulative profits and losses net dividends and any other adjustments.

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CARDALE INFRASTRUCTURE INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

18.

Related party transactions

At the balance sheet date, the Company was owed £1,394,290 (2020 - £2,226,976 ) in the form of loan notes and £360,148 (2020 - £332,270) in interest by Caring 4 Croydon Holdings Limited, a subsidiary company.
The Company was also owed £2,205,297 (2020 - £2,205,297) in the form of loan notes and £413,978 (2020 - £433,313) in interest by Hull Citycare (Investments) Limited, a joint venture company.
The Company has taken advantage of FRS102 section 33 paragraph 1A not to disclose transactions with wholly owned group members.

19.	Post balance sheet events

Subsequent to the year end global economies have continued to be affected by the negative financial impact of the spread of the COVID-19 virus pandemic.This is considered a non-adjusting event at the year end date and details of the Directors' assessment of this event on the Company is included in the going concern note 2.4.

20.	Controlling party

The Company's ultimate parent undertaking and controlling party is Cardale PFI Investments Limited, a company registered in England and Wales.
Consolidated financial statements are available from the registered office at 4 Greengate, Cardale Park, Harrogate, North Yorkshire, HG3 1GY.

Page 18