ACORN LODGE LIMITED

Registered number

04318265

ACORN LODGE LIMITED

Report and Accounts

30 November 2012

ACORN LODGE LIMITED
Report and accounts
Contents




Page

Director's report	1
Statement of director's responsibilities	2
Independent auditors' report	3
Profit and loss account	4
Balance sheet	5
Cash flow statement	6
Notes to the accounts	7 to 14

ACORN LODGE LIMITED
Registered number:		04318265
Director's Report

The director presents his report and accounts for the year ended 30 November 2012.

Principal activities
The company's principal activity during the year continued to be that of providing Nursing Home facilities for the elderly.

Review of the business
The company made pretax profit of £680,203 (2011: £1,192,994) for the year on a turnover of £3,263,284 (2011: £3,227,528).
At 30 November 2012 the company had net assets of £3,888,541 (2011: 3,505,055)

Principle risks and uncertainties
The principal risks and uncertainties facing the company relate to adverse findings by the Care Quality Commission. However, the company ensures that its care home is run to a high standard and to date such no such adverse findings have been reported.

Directors
The following persons served as directors during the year:

	Mr N J Lukka

Political and charitable donations
During the year the company made charitable donations of £1,351 (2011: £12,351).

Disclosure of information to auditors

The director confirms that:
●	so far as he is aware, there is no relevant audit information of which the company's auditor is 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 auditor is aware of that information.



This report was approved by the board on 28 August 2013 and signed on its behalf.



MR N J LUKKA
Director

ACORN LODGE LIMITED
Statement of Director's Responsibilities

The director is responsible for preparing the report and accounts in accordance with applicable law and regulations.

Company law requires the director to prepare accounts for each financial year. Under that law the director has elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts 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 accounts, the director is required to:
●	select suitable accounting policies and then apply them consistently;
●	make judgements and 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 accounts;
●	prepare the accounts 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 accounts 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.

ACORN LODGE LIMITED
Independent auditors' report
to the member of ACORN LODGE LIMITED

We have audited the accounts of ACORN LODGE LIMITED for the year ended 30 November 2012 which comprise the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Director's Responsibilities, the director is responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the accounts
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm
Opinion on the accounts

In our opinion the accounts:
●	give a true and fair view of the state of the company's affairs as at 30 November 2012 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.


Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Director's Report for the financial year for which the accounts are prepared is consistent with the accounts.
Matters on which we are required to report by exception
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 accounts 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.



MR K B TANNA
(Senior Statutory Auditor)		Antonia House
for and on behalf of		262 Holloway Road
D'Auria Quick & Tanna		LONDON
Accountants and Statutory Auditors
28 August 2013		N7 6NG

ACORN LODGE LIMITED
Profit and Loss Account
for the year ended 30 November 2012


Notes		2012		2011
£			£

Turnover	2	3,263,284		3,227,528

Administrative expenses		(2,162,478)		(2,004,460)
Other operating income		5,130		-

Operating profit	3	1,105,936		1,223,068

Exceptional items:
loss on the disposal of investments	4	(415,149)		-

		690,787		1,223,068

Interest receivable		40,682		26,316
Interest payable	6	(51,266)		(56,390)

Profit on ordinary activities before taxation		680,203		1,192,994

Tax on profit on ordinary activities	7	(296,717)		(292,216)

Profit for the financial year		383,486		900,778


Continuing operations
None of the company's activities were acquired or discontinued during the above two financial years.

Statement of total recognised gains and losses
The company has no recognised gains or losses other than the profit for the above two financial years.

ACORN LODGE LIMITED
Balance Sheet
as at 30 November 2012

Notes			2012			2011
£				£
Fixed assets
Tangible assets	8		3,761,747			3,929,496

Current assets
Debtors	9	2,241,902			1,814,948
Investments held as current assets	10	674,253			989,303
Cash at bank and in hand		456,526			140,508
		3,372,681			2,944,759

Creditors: amounts falling due within one year	11	(763,385)			(660,494)

Net current assets			2,609,296			2,284,265

Total assets less current liabilities			6,371,043			6,213,761

Creditors: amounts falling due after more than one year	12		(2,406,088)			(2,708,706)

Provisions for liabilities
Deferred taxation	14		(76,414)			-

Net assets			3,888,541			3,505,055

Capital and reserves
Called up share capital	15		100			100
Profit and loss account	16		3,888,441			3,504,955

Shareholder's funds	17		3,888,541			3,505,055




MR N J LUKKA
Director
Approved by the board on 28 August 2013

ACORN LODGE LIMITED
Cash Flow Statement
for the year ended 30 November 2012

Notes		2012		2011
£			£
Reconciliation of operating profit to net cash
inflow from operating activities

Operating profit		1,105,936		1,223,068
Depreciation and amortisation		209,873		91,977
Increase in debtors		(426,954)		(784,414)
Increase/(decrease) in creditors		99,422		(114,492)

Net cash inflow from operating activities		988,277		416,139


CASH FLOW STATEMENT

Net cash inflow from operating activities		988,277		416,139

Returns on investments and servicing of finance	18	(10,584)		(30,074)

Taxation		(216,834)		(223,270)

Capital expenditure	18	(457,273)		(14,413)
		303,586		148,382


Management of liquid resources	18	315,050		(188,775)

Financing	18	(302,618)		(297,233)

Increase/(decrease) in cash		316,018		(337,626)


Reconciliation of net cash flow to movement in net debt

Increase/(decrease) in cash in the period		316,018		(337,626)
Decrease in debt and lease financing		302,618		297,233
(Decrease)/increase in liquid resources		(315,050)		188,775

Change in net debt	19	303,586		148,382
Net debt at 1 December		(1,933,733)		(2,082,115)
Net debt at 30 November		(1,630,147)		(1,933,733)

ACORN LODGE LIMITED
Notes to the Accounts
for the year ended 30 November 2012

1	Accounting policies

	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Standards.

	Turnover
	Turnover represents amount of fees receivable.

	Depreciation
	Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

	Freehold buildings			2% pa on cost
	Fixtures Fittings and Equipment			15% pa on reducing balanaces

	Deferred taxation
	Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred tax is calculated at the tax rates which are expected to apply in the periods when the timing differences will reverse, and discounted to reflect the time value of money using rates based on the post-tax yields to maturity that could be obtained at the balance sheet date on government bonds with similar maturity dates.


2	Analysis of turnover					2012		2011
£							£
	By activity:

	Nursing home services					3,263,284		3,227,528

	By geographical market:

	UK					3,263,284		3,227,528


3	Operating profit					2012		2011
£							£
	This is stated after charging:

	Depreciation of owned fixed assets					209,873		91,977
	Auditors' remuneration for audit services					1,725		1,650


4	Exceptional items					2012		2011
£							£

	Loss on disposal of listed securities (shares).					(415,149)		-



5	Staff costs					2012		2011
£							£

	Wages and salaries					1,463,397		1,453,228
	Social security costs					112,528		117,236
						1,575,925		1,570,464


	Average number of employees during the year					Number	Number

	Administration					90		89


6	Interest payable					2012		2011
£							£

	Interest payable					51,266		56,390


7	Taxation					2012		2011
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					279,282		292,674
	Underprovision for C/Tax in earlier years					-		(372)
	Interest due on overdue C/Tax					-		39
	Interest received on C/Tax refund					-		(125)
	Corporation Tax Repayments					(58,979)		-
						220,303		292,216

	Deferred tax:
	Origination and reversal of timing differences					76,414		-


	Tax on profit on ordinary activities					296,717		292,216


	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:

						2012		2011
£							£
	Profit on ordinary activities before tax					680,203		1,192,994

	Standard rate of corporation tax in the UK					24.67%		26.67%

£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					167,806		318,171

	Effects of:
	Expenses not deductible for tax purposes					99,348		2,571
	Capital allowances for period in excess of depreciation					12,128		(28,526)
	Corporation Tax Repayments					(58,979)		-

	Current tax charge for period					220,303		292,216


	Factors that may affect future tax charges
	None in particular.


8	Tangible fixed assets
				Freehold property		Fixtures, fittings and equipment		Total
£					£		£
	Cost
	At 1 December 2011			3,161,238		1,433,105		4,594,343
	Additions			-		42,124		42,124
	At 30 November 2012			3,161,238		1,475,229		4,636,467

	Depreciation
	At 1 December 2011			295,845		369,002		664,847
	Charge for the year			43,939		165,934		209,873
	At 30 November 2012			339,784		534,936		874,720

	Net book value
	At 30 November 2012			2,821,454		940,293		3,761,747
	At 30 November 2011			2,865,393		1,064,103		3,929,496

	Cost of Freehold Land included above* not depreciated							964,300


9	Debtors					2012		2011
£							£

	Trade debtors					52,033		205,427
	Other debtors					2,184,659		1,604,753
	Prepayments and accrued income					5,210		4,768
						2,241,902		1,814,948


	Amounts due after more than one year included in:
	Other debtors					2,028,142		1,604,753


10	Investments held as current assets					2012		2011
£							£

	Listed investments					674,253		989,303

	Valuation:
	Listed investments - market value					795,839		644,183


11	Creditors: amounts falling due within one year					2012		2011
£							£

	Bank loans and overdrafts					354,838		354,838
	Trade creditors					54,378		20,568
	Corporation tax					138,789		135,320
	Other taxes and social security costs					30,874		28,819
	Other creditors					163,440		41,177
	Accruals and deferred income					21,066		79,772
						763,385		660,494


12	Creditors: amounts falling due after one year					2012		2011
£							£

	Bank loans					2,406,088		2,708,706


13	Loans					2012		2011
£							£
	Loans not wholly repayable within five years:
	Loan repayable in 2021 at interest rate of 3.25%					2,760,926		3,063,544

	Analysis of maturity of debt:
	Within one year or on demand					354,838		354,838
	Between one and two years					354,838		354,838
	Between two and five years					1,064,514		1,064,514
	After five years					986,736		1,289,354
						2,760,926		3,063,544

	The bank loans are secured by a legal charge on company's freehold property and by a debenture on all assets of the company.


14	Deferred taxation					2012		2011
£							£

	Accelerated capital allowances					76,414		-
	Undiscounted provision for deferred tax					76,414		-


						2012		2011
£							£

	Deferred tax charge in profit and loss account					76,414		-

	At 30 November					76,414		-


15	Share capital	Nominal		2012		2012		2011
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		100		100		100


16	Profit and loss account					2012
£

	At 1 December 2011					3,504,955
	Profit for the financial year					383,486

	At 30 November 2012					3,888,441


17	Reconciliation of movement in shareholder's funds					2012		2011
£							£

	At 1 December					3,505,055		2,604,277
	Profit for the financial year					383,486		900,778

	At 30 November					3,888,541		3,505,055


18	Gross cash flows					2012		2011
£							£
	Returns on investments and servicing of finance
	Interest received					40,682		26,316
	Interest paid					(51,266)		(56,390)
						(10,584)		(30,074)

	Capital expenditure
	Payments to acquire tangible fixed assets					(42,124)		(14,413)
	Receipts from sales of investments					(415,149)		-
						(457,273)		(14,413)

	Management of liquid resources
	Sale of current asset investments					315,050		(188,775)

	Financing
	Loan repayments					(302,618)		(297,233)


19	Analysis of changes in net debt
		At 1 Dec 2011		Cash flows		Non-cash changes		At 30 Nov 2012
£			£		£		£

	Cash at bank and in hand	140,508		316,018				456,526


	Debt due within 1 year	(354,838)		-				(354,838)
	Debt due after 1 year	(2,708,706)		302,618				(2,406,088)
				302,618


	Current asset investments	989,303		(315,050)				674,253

	Total	(1,933,733)		303,586		-		(1,630,147)


20	Loans to directors
	Description and conditions	B/fwd	Paid		Repaid		C/fwd
£			£		£		£
	Mr N J Lukka
	Loan account	(9,704)		164,362		-		154,658

		(9,704)		164,362		-		154,658

	Mr N J Lukka repaid the loan on 18 June 2013.


21	Related party transactions					2012		2011
£							£
	Mr N J Lukka is a director and has a significant interest in the share capital of the entities listed below.
	At the balance sheet date amounts receivable from these entities is as follows:
	Lukka Care Homes (2010) Limited					51,447		15,525
	Lukka Care Homes Limited					4,894		5,204
	Lukka Properties Limited					10,425		10,192
	Macneil Bootsey Brogan Limited					21,398		20,925
	Macneil Limited					237,315		232,093
	Macneil UB40 Limited					659,193		407,379
	Oakley Wood Limited					5,371		5,253
	Topcare Limited					88,539		83,590
	Waterhole Limited					507,929		447,760

	During the year the company received interest from these related entities.
	Lukka Care Homes (2010) Ltd					482		-
	Lukka Care Homes Limited					-		310
	Lukka Properties Ltd					233		192
	Macneil Bootsey Brogan Limited					473		460
	Macneil Limited					5,222		7,322
	Macneil UB40 Ltd					11,814		9,246
	Oakley Wood Ltd					118		116
	Topcare Ltd					2,839		1,835
	Waterhole Ltd					10,169		1,532


22	Ultimate controlling party

	The company is controlled by the Director.