Macklin Care Homes Limited - Limited company accounts 24.3

REGISTERED NUMBER: NI607069 (Northern Ireland)

MACKLIN CARE HOMES LIMITED

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 30 June 2024

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Independent Auditors' Report

5

Income Statement

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

Brian Macklin

Mary Macklin

REGISTERED OFFICE:

26 Wellington Park

Belfast

Co. Antrim

BT9 6DL

REGISTERED NUMBER:

NI607069 (Northern Ireland)

INDEPENDENT AUDITORS:

CavanaghKelly

Chartered Accountants and Statutory Auditors

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

BANKERS:

Bank of Ireland

364 Lisburn Road

Belfast

Co. Antrim

BT9 6GL

SOLICITORS:

O'Hare Solicitors

St. George's Building

37-41 High Street

Belfast

Co. Antrim

BT1 2AB

The directors present their strategic report for the year ended 30 June 2024.

BUSINESS REVIEW AND KEY PERFORMANCE INDICATORS

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

2024

2023

Revenue

£12,875,602

£10,816,232

Gross profit margin

28.8%

22.2%

Net profit/(loss) before tax

£844,597

£(287,797)

Revenue has increased by 19% and gross profit margin increased by 6.6% as a result of rising costs. The directors are satisfied with the company's financial performance and continue to monitor costs.

BUSINESS ENVIRONMENT

The nursing care market is a highly competitive market with a number of care homes throughout Northern Ireland. The company considers itself as having a strong position in the market due to the knowledge of the industry and the provision of a quality service to its residents.

STRATEGY

The company's success is dependent on the ongoing management of business risks and uncertainties it faces. The directors intend to grow the business further as the company establishes a quality service in the market and through better management of costs and improved efficiencies within the business.

BUSINESS RISKS AND UNCERTAINTIES

Competition Risk:

Competition comes from similar care homes in the locality. The directors manage this risk by ensuring a quality service is offered to all residents.

Financial Risk:

The company's operations expose it to financial risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring the levels of risk and the related finance costs.

Economic Risk:

Economic risk is inherent in the industry in which the company operates, in particular in respect of expected funding reduction within Health Trusts. The directors manage this risk by ensuring long standing relationships with the Trusts and financiers are maintained.

FUTURE DEVELOPMENTS

The directors are committed to long term creation of shareholder value by increasing its market share in the Northern Ireland market. The directors are confident that their strategy will result in continued growth and profitability.

EMPLOYMENT POLICY

The Company is dependent on the skills and commitment of its employees in order to achieve its objectives. Company staff at every level are encouraged to make their fullest possible contribution to the company's success. The company's selection, training, development and promotion policies ensure equal opportunities for all employees, regardless of gender, martial status, race, age or disability. All decisions are based on merit.

ON BEHALF OF THE BOARD:

Brian Macklin - Director

25 February 2025

The directors present their report with the financial statements of the Company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY

The principal activity of the company is to provide residential care services to elderly and disabled persons.

DIVIDENDS

Interim dividends of £100,000 were paid in the year. (2023: £nil)

The directors do not recommend payment of a final dividend (2023: £nil)

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

Brian Macklin

Mary Macklin

CHARITABLE AND POLITICAL CONTRIBUTIONS

During the year the group made charitable donations of £770 (2023: £nil)

DISCLOSURES REQUIRED UNDER SCHEDULE 7

In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties, employment policy and future developments in the Company's Strategic Report which would otherwise be required to be disclosed in the Directors' Report.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The auditors, CavanaghKelly, (Chartered Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Brian Macklin - Director

25 February 2025

Opinion

We have audited the financial statements of Macklin Care Homes Limited (the 'Company') for the year ended 30 June 2024 which comprise the Income Statement, Statement of Financial Position, 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 30 June 2024 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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' 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 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report 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 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 Directors' Responsibilities Statement set out on page three, 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 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.

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.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud - continued

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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.

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.

Mr Ryan Falls (F.C.A) (Senior Statutory Auditor)

for and on behalf of CavanaghKelly

Chartered Accountants and Statutory Auditors

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

25 February 2025

REVENUE

5

12,875,602

10,816,232

Cost of sales

(9,173,811

)

(8,419,186

)

GROSS PROFIT

3,701,791

2,397,046

Administrative expenses

(3,005,846

)

(2,796,584

)

695,945

(399,538

)

Other operating income

6

92,932

141,328

OPERATING PROFIT/(LOSS)

8

788,877

(258,210

)

Finance income

365,939

187,953

1,154,816

(70,257

)

Finance costs

9

(310,219

)

(217,540

)

PROFIT/(LOSS) BEFORE TAXATION

844,597

(287,797

)

Tax on profit/(loss)

10

(350,497

)

(10,211

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

494,100

(298,008

)

OTHER COMPREHENSIVE INCOME

Loss on Revaluation

-

(3,071,501

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(3,071,501

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

494,100

(3,369,509

)

NON-CURRENT ASSETS

Intangible assets

12

2,133,498

2,438,383

Property, plant and equipment

13

12,838,395

12,744,698

14,971,893

15,183,081

CURRENT ASSETS

Inventories

14

10,932

10,932

Receivables

15

4,230,102

4,845,545

Receivables more than one year

15

3,756,167

3,608,771

Cash at bank and in hand

1,535,144

383,470

9,532,345

8,848,718

PAYABLES

Amounts falling due within one year

16

(1,687,030

)

(1,474,939

)

NET CURRENT ASSETS

7,845,315

7,373,779

TOTAL ASSETS LESS CURRENT LIABILITIES

22,817,208

22,556,860

PAYABLES

Amounts falling due after more than one year

17

(3,747,091

)

(3,899,194

)

PROVISIONS FOR LIABILITIES

19

(59,200

)

(40,849

)

NET ASSETS

19,010,917

18,616,817

CAPITAL AND RESERVES

Called up share capital

20

100

100

Revaluation reserve

12,515,435

12,515,435

Retained earnings

6,495,382

6,101,282

SHAREHOLDERS' FUNDS

19,010,917

18,616,817

The financial statements were approved by the Board of Directors and authorised for issue on 25 February 2025 and were signed on its behalf by:

Brian Macklin - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 July 2022

100

6,399,290

15,586,936

21,986,326

Changes in equity

Total comprehensive income

-

(298,008

)

(3,071,501

)

(3,369,509

)

Balance at 30 June 2023

100

6,101,282

12,515,435

18,616,817

Changes in equity

Dividends

-

(100,000

)

-

(100,000

)

Total comprehensive income

-

494,100

-

494,100

Balance at 30 June 2024

100

6,495,382

12,515,435

19,010,917

1.	STATUTORY INFORMATION

Macklin Care Homes Ltd is a private company, limited by shares, domiciled in Northern Ireland within the United Kingdom. The company's registered number and registered office can be found on the General Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. The financial statements are presented in sterling which is the functional currency of the company.

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 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 paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

The company is entitled to avail of this exemption as it is a subsidiary undertaking for which the consolidated financial statements are publicly available.

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.

Provision of services:

Revenue from a contract to provide services is recognised in the period in which the services are provided. The following criteria must also be met before revenue is recognised:

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the company

- the costs incurred or to be incurred in respect of the transaction can be measured reliably

Goodwill

Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its economic useful life of 20 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business.

Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Property, plant and equipment and depreciation

Property, plant and equipment are stated at cost or valuation less accumulated depreciation. Historic cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Buildings freehold

- 2% Straight line

Plant and machinery

- 25% Reducing balance

Fixtures, fittings and equipment

- 25% Reducing balance

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Individual freehold and leasehold properties are revalued to fair value periodically with the surplus or deficit on book value being transferred to the revaluation reserve, except that a deficit which is in excess of any previously recognised surplus over depreciated cost relating to the same property, or the reversal of such a deficit, is charged (or credited) to the profit and loss account.

Inventories

Inventories are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Income Statement.

Financial instruments - continued

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation and deferred taxation

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Employee benefits

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

Finance costs

Finance costs are charged to the Income Statement over the term of the debt.

Government Grants

Government grants are credited to the income statement in the year to which they relate.

Share Capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

4.	CRITICAL ACCOUNTING JUDGEMENTS & KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. However, management do not believe there are any critical estimates, judgements or assumptions applied within the accounting policies.

5.

REVENUE

The revenue and profit (2023 - loss) before taxation are attributable to the one principal activity of the Company.

6.	OTHER OPERATING INCOME

2024

2023

£

£

Government grants

92,932

141,328

7.	EMPLOYEES AND DIRECTORS

Staff costs, including directors' remuneration, were as follows:

2024

2023

£

£

Wages and salaries

8,334,230

6,096,180

National Insurance

617,714

499,875

Pension

139,056

140,246

9,092,200

6,736,300

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

2024

2023

Care Home Staff

312

275

Administrative

31

25

343

300

8.	OPERATING PROFIT/(LOSS)

The operating profit is stated after charging:

2023

2023

£

£

Depreciation

365,976

423,025

Goodwill amortisation

304,885

304,887

9.	FINANCE COSTS

2024

2023

£

£

Bank loan interest

309,897

217,540

Other Interest

322

-

310,219

217,540

10.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

332,146

7,154

Deferred tax:

Deferred tax

18,351

1,460

Adjustment in respect of prior period

-

1,597

Total deferred tax

18,351

3,057

Tax on profit/(loss)

350,497

10,211

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit/(loss) before tax

844,597

(287,797

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 20.496%)

211,149

(58,987

)

Effects of:

Expenses not deductible for tax purposes

(906

)

6,419

Depreciation in excess of capital allowances

121,903

142,467

Deferred tax

18,351

3,057

Group relief

-

(82,745

)

Total tax charge

350,497

10,211

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 30 June 2024.

2023

Gross

Tax

Net

£

£

£

Loss on Revaluation

(3,071,501

)

-

(3,071,501

)

11.

DIVIDENDS

2024

2023

£

£

Ordinary Shares Class 1 shares of £1 each

Interim

100,000

-

12.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 July 2023

and 30 June 2024

6,097,750

AMORTISATION

At 1 July 2023

3,659,367

Amortisation for year

304,885

At 30 June 2024

3,964,252

NET BOOK VALUE

At 30 June 2024

2,133,498

At 30 June 2023

2,438,383

13.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1 July 2023

15,078,499

257,394

1,386,615

16,722,508

Additions

360,769

16,918

81,873

459,560

At 30 June 2024

15,439,268

274,312

1,468,488

17,182,068

DEPRECIATION

At 1 July 2023

2,541,000

180,128

1,256,682

3,977,810

Charge for year

303,996

20,564

41,303

365,863

At 30 June 2024

2,844,996

200,692

1,297,985

4,343,673

NET BOOK VALUE

At 30 June 2024

12,594,272

73,620

170,503

12,838,395

At 30 June 2023

12,537,499

77,266

129,933

12,744,698

14.	INVENTORIES

2024

2023

£

£

Finished goods

10,932

10,932

15.	RECEIVABLES

2024

2023

£

£

Amounts falling due within one year:

Trade receivables

273,653

610,466

Amounts owed by group undertakings

2,660,138

2,935,386

Other receivables

1,207,241

1,232,415

Prepayments and accrued income

89,070

67,278

4,230,102

4,845,545