Every day well lived WCS Care Group Limited Annual report and consolidated financial statements For the year ended 31 March 2023 Peter, oneojourfitstmobile Corers WCS Care Group Limited Contents Page number Reference and admlnlstratlon details Welcome from the Chair of the Board and Chief Executive Report of the Trustee5 including the strategic report Financial revlew 18 Independent auditor's report 26 Consolldated and company statement of financial activities Consolidated and company balance sheet 30 31 Consolidated statement of cash flows 32 Notes to the flnanclal statements 33 WCS Care Group Limited Reference and administrative details of the charityl it5 trustees and advisors Reglstered name: WCS Care Group Limited Also known a5: WCS Care Registered company: 02713150 Re8lstered charlty: 1012788 Reglstered offlce Newlands Head Office Whites Row Kenilworth CV8 IHW Trustee5: A F Levett- Chair l A Matthews- Vlce Chair AILast S E Dobinson R L Merchant M R Andrews R L Warwick T M Banks N Weatherburn E J Basten A J Holt Appointed on Il, July 2022 E E Ireson Appointed on Il, july 2022 B C Cressey IResigned on Il, July 20221 L E Middleburgh IResi8ned on Il, July 20221 Executlve Team: E J Russell- Chief Executive P C Parekh- Director of Finance and Company Secretary K Salt- Director of Quality and Compliance J Cheshire- Director of Communications and Marketing J Rose- (Co-opted) Head of People and Support Services Independent Audltor: Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury B69 20G Sollc5tors: Anthony Collin5 LLP 134 Edmund Street Birmingham B3 2ES Bankers: The Royal Bank of Scotland Sheffield Branch 5 Church Street Sheffield 51 IHF Annual repDri and financi3151BtÈment5. year ended 31 Maith 2023 WCS Care Group Limited Welcome from the Chair of the Board At the end of this, our 30th year of providing care, we remain confident and positive,. determined to deliver our model of care to the highest P055ible standard. The Board is confident that our strategy, the governance arrangements, staffing structures and investment plan will see the charity continue to prosper. We are positive about the benefits that have arisen from our programme of innovation. As the threat from Covid receded, and the impact of the control measures reduced, we returned to driving forward our investment programme for the benefit of our residents and relatives. The Board is very conscious that every day is precious to those who choose to live with us and have carefully considered the balance between borrowing and the use of reserves to deliver a5 quickly as possible, but prudentlv. Like all businesses, a predictable and stable operating environment makes forward planning and investment easier. We have encountered exactly the opposite, and drawn heavily on our skilled and experienced Board and Executive to rise to the challenges successfully. We remain concerned about the regulatory impact on our operation5, experiencing conflicting and changing demands without any sense of a strategic approach. This adds hugely to our overheads and thus cost5. Significant effort was devoted to providirbg data to the 'fair cost of care, exercise initiated by the Government in the hope that the below-cost funding of socially supported places would be rectified. We have yet to see any output from that exercise with local authority fees still rising at below the rate of inflation for the sector. We also devoted time and resource5 to preparing for the 'care cost cap, which would, over time, alter the Source of our income. The implementation was deferred at the last minute until 2025, or most likely beyond. A focus this year and last has been the recognition and reward of our key asset, our staff. SO many went way beyond what we could reasonably expect during the pandemic and with public support high we moved to steadily increase wages and conditions, particularly given the higher levels of inflation experience by all of us. No one who works for the company earns just the National Minimum Wage. We are proud of the posltive feedback we have received from residents, relatives and those whom we work with, wa￿l£kSh1re Courbty Council and the NH5. We fully support the drive for better integration of adult social care. We are pleased about the support given by the communities we form part of. Above all, we draw strength from the way our residents have engaged in opportunities for activities and experience5 that have become possible as the isolation created by Covid recedes. Adrian Levett- Chair of the Board Annual ieport and financial statements, ye3rended 31 Marth 2023 WCS Care Group Limited And a word from our Chief Executive Our very first year in 1992 was a tough one for the UK, Black Wednesday lor the 1992 sterling crisis) occurred 2 weeks before we started operating, the housing market was in freefall, GDP dropped in the first six months of our life by 1.5% and inflation was just beginning to fall from a recent 8% high. This all sounds only too familiar and yet a daring vision for residential care in the shape of our charity WCS Care was birthed and in the proceeding 30 years has flourished. Now our 30, year has been one of the most challenging we've faced as the care home sector recovers from the effects of the pandemic, high inflation, a cost-of-living crisis and the number of vacancies in Social care at the highest rate on record with 165,CM)O unfilled post5 this last year. But again, in great adversity, it's care that brings us together. Our vision of Every Day Well Lived and an nwavering commitment to quality care, has sustained us in our 30, year as it did in our first. Over the longer term, health and care services will face continuing pressures as populations age, and our health and social care needs become more complex. But at the same time there are many opportunities to use new ideas and technologies to improve the way we deliver care, improve outcomes for people who use services and become more efficient. At WCS Care we're bucking the trend by 5UPPOrting our staff to have more control over their workllife balance through the use of new technology, and introducing a new mobile carer role which is, and has, reduced our reliance on external agency. Consequently, happy customers and better pay have in turn helped us to attract new and retain existing employees through the provision of better pay to our own staff instead of agencies, plus great benefits, and a fantastic work environment. Todayi we have developed an eight-page visual explanation of how we aim to provide care in the most innovative way. It's used as a recruitment and training tool and forms the backbone of our care practice. An innovative culture gives people permission to innovate. This can set high standards for safety without cumbersome governance and thi5 year we have added ISO 9001 quality, 14(X)I environmental and 45001 health & safety management system accreditations to our Investors in People Gold Award achieved last year. We've been on an incredible journey the last 30 years and as for the next we are designing services where I will be happy to live when my time comes. l am very grateful to our customers for continuing to choose us to care, our amazing staff who demonstrate every day what an incredible job being a carer 15, and also to our Board of Trustees. We have a sector leading Board. Throughout these challenging times their independent judgment and expert perspectives have been a huge benefit to our charity, residents and to our staff. Ed Russell- Chief Executive Annual Teport and financial statements. yearended 31 March 2023 WCS Care Group Limited Report of the Trustees including the strategic report Introductlon The Trustees, who are also the dirertors of the company. present their report and the audited, consolidated financial statement5 for the year ended 31 March 2023. Who we are: our story WCS Care is a Warwickshire-based charity established in 1992. We operate 13 residential care homes, providing accommodation, 24-hour personal care, and support to nearly 6￿ older people and people of working age who may find it difficult to manage daily life at home, many of whom are socially funded through our lon8-established partnership with Warwickshire County Council. Residential home5 provide residents with a safe place where they are looked after according to their needs, such as help with washing, dressin8, toileting, administering medication and mobility. The word 'resident' means that people can treat the settin8 as their home and live there with access to the services available on site. Our ambition 15 that every day is well lived for our residents- every day we invite people to choose the things they want to do and try new opportunities. Our care model outllnes how we achieve a day well Ilved,. this is developed around our values and the individual character of each of our 13 care homes. Our values are that every day we play, moke someone's doy, be there and ch005e our attitude. The standard we walk past is the standard we accept. Four essential buildin8 blocks to deliver a day well lived are.. Our prlnciples Fair fees Home for life Always improving Sharing with sector Partnership Enablln8 environments Small self-sufficient households Lifestyle options- livin8 a life that is familiar Communallactive space in addition to living space Spending time outdoors Circadian lighting which promotes wellbeing Attractive and comfortable decor Hlgh quallty care People Behaviours Systemslpolicies Funding Technology Flnancial sustslnablllty Sustainable fee levels and occupancy Strong financial leadership and management Commercial and prosocial Key behaviour5 to 5UPPOrt and enable this are: Passionate leadership Strong communication Value driven Innovative Effective and robust governante Active risk management Annual report and financrdl statements,yÈarewJed 31 Mafth 2023 WCS Care Group Limited Report of the Trustees Including the strategic report (Continued) Objectives for the year We have an ambitious strategy which focuses on providing environments and staff that deliver quality of life for the people who choose to live with us. Our strategy has seven key threads: l. Consistently articulating a model of who we are 2. Engaging with key partners and decision makers 3. Differentiating our village and residential offerings 4. Continuing to offer a ran8e of options for customer5, including those who are sociallv funded Refurbishin8 older buildings and planning new developments 6. Developing fulure design based on the village concept 7. Reviewing assels for reinvesiment into our homes and people Achlevements and perfomiance What ourcustomers told us We're delighted our customers contlnue to rate us highly and as a learning or8anisation we're commilted to continual improvement. In June 2022 and February 2023, WCS Care was re¢ognised as a Top 20 Mid- size Care Home Group by carehome.co.uk. These awards are based on reviews from our customers and we thank them for taking the time to provide valuable feedback to us about thelr experience of our care homes. TOP 20 C4REHOME GROUP carehome.co.uk carehome.co.uk TOP Customers have glven WCS a ratlng of 9.6 out of 10 20 CARE HOME GROUP carehotne.co.uk What our staff told us This year we asked our staff three simple questions in oijr staff survey.. what should we start doing. stop doing and keep doing? The feedback we received in response was rich and informative and we thank our staff for providing direct, open responses to these questions. We also asked staff whether they'd recommend their home as a good place to work. 9.1 out of 10 staff said they were satisified with, likely, or very likely to recommend their home as a good place to work. Ann￿al repDrt and financial siatements, *arended 31 Marth2023 WCS Care Group Limited Report of the Trustees Including the strategic report {Continued) ISO accreditation WCS Care have achieved accreditation for our Quality Management System, ISO 9001, and accreditation for our Health and Safety system, ISO 45001. We are proud of these internationally recognised accreditations which are important because they recognise our good governance and give extemal bodies such as regulators and commissioners assurance via a third party. IS045WI Regulatory requirements Over the last year we have started to see an increase in visits from regulatory bodies as they resume a more usual level of inspections. WCS Care Group recognises the importance of regulatory oversight. and we are committed to operating our business responsibly and in compliance with all regulations, legislation and approved codes of practice. It is our objective to opernte with, and to maintain good relations with all regulatory bodies, and to carry out all measures reasonably practicable in order to continually improve our performance. Despite thi5, we've experienced a mixed Care Quality Commission ICQCI inspection approach over the last 12 months. In three of the four inspections we've hod this year we challenged the factual accuracy of the CQC reports through their factual accuracy process which resulted in some narrative changes. We know that our customers will be just as disappointed with the three 'Requires Improvement, ratings as we are. This year WCS has had the following inspections: Drayton Court {June 2022).. our first post pandemic inspection which took place as the long-serving home manager retired and a new manager came into P05t. Thi5 inspection looked at two of the five domains, with both re-rated as 'Require5 Improvemeny, meaning that unfortunately the overall IY021JOIS 191WW22 ¥¢urW4¥5 IYW102J MI11GtooD t4ewlar Irfj1102 wcv 24IIU12021 rating could not change. Woodslde Care Village {November 20221: Woodside Care Village's first inspertion since re-opening in 2019 rated the home 'Good' in all area5. Westlands (March 20231- this full inspection saw three domains remain as 'Good' with two changing to 'Requires Improvement,, unfortunately giving an overall rating of 'Requires Improvement,. Attleborough Grange (April 20231.. this first post pandemic full inspection saw three of the five domains improved to a 'Good' rating, however two domains remained at 'Requires Impfovement,, unfortunately giving an overall rating again of'Requires Improvement,. AThnual report and financral statements. year eThded 31 Marth 2023 WCS Care Group Limited Report of the Trustees including the strategic report Icontinuedl Statement by the directors in performance of their statutory duties in accordance with s172 (1) Companies Act 2006 Stakeholder engagement The Charities stakeholders are: Residents, including their families Staff members Other stakeholder relationships include.. Warwickshire County Council, other local authorities, NHS, Local Charities, Suppliers, and voluntary sector The Charity's trustees, who are regularly engaged throughout the year particularly through Board and Committee meetings, and regular visits to the care homes Structure, management and governance WCS Care Limited is an independent charity, formed in 1992. The charity is registered with 12 trustees (Board of Directors), during the year there were 12 active members. The Board of Directors has a wide portfolio of expertise and experience in health care, human resource5, finance, property, marketing, IT and other disciplines. In accordance with the Charity's Articles of Association, members of the Management Committee retire every 3-year cycle, serving a maximum of 9 years. Those offering themselves for reelection are those who have seNed the longest since their election or re-election. Roger Merchant, Shan Dobinson and Mark Andrews will retire by rotation and will offer themselves for re-election at the next annual general meeting. Trustee indurtion and training Induction includes a Trustees Handbook,. comprehensive sessions with each member of the Executive Leadership Team,. and an in-depth tour of the organisation. Training is also carried out both with external agencies and via in-house training. The Board provide support and leadership to the Executive Team on the direction and strategry of the Charity and in fulfilling its role has established the following system of management.. Management of organlsation The body responsible for the management of the charity is the Board of Directors l Trustees - (Management Committee). The Board has five scheduled meetings each year with other meetings arranged as necessary. Members are elected every three years and setve a maximum term of nine years, unless othenMi5e agreed. The maximum number of members that can be elected to the Board is 12. The Board elects the Chairman at the November Board Meeting. The Board receives reports from four formally constituted committees which are reviewed annually: Quality and Prartice, includirig the Safeguarding sub-group Finance, Risk and Audit Project CommissioninE Annu31 report3nd financlal st3rements. year ended 31 March 2023 WCS Care Group Limited Governance Report of the Trustees including the strategic report (Continued) Each committee has specific terms of reference and functions delegated by the Board. The Chief Executive and the ExecutNe Team attend meetings of the Board. The Chief Executive attends the Committee meetings and is accompanied by members of the Executive Team as appropriate. The Board has overall responsibility for ensuring the charity has an appropriate system of internal financial and managerial controls across the entire organisation. The Executive Team meets monthly. the focus being on strateEY, and financial and operational issues. The Director of Finance is responsible for corporate govemance as well as WCS'S overall financial strategy including statutory accounts and business perfomiance. The Director of Quality and Compliance 15 responsible for ensuring that WCS meets the quality and operational performance required by WCS'S care management system. The Director of Marketing and Communications is responsible for maintaining our brand and reputation, WCS'S communication strategy and occupancy management. The Head of People and Support Services is responsible for delivery of WCS'S human resources functions including the development of our culture. The members of the Executive Team are supported by the three service managers in the management and development of the service. Service managers line manage a designated group of care homes and are responsible for the day-to-day operational management of the homes. with support from two support managers and our Quality Manager who is resF)onsible for monitoring quality as part of our policy of continual improvement. WCS is registered with the Care Quality Commission who monitor. inspect and regulate residential care services to make sure they meet fundamental standard5 of quality, and the charity complies with the Commission's Fundamental Standards. Additional Trustee input and support WCS Care is proud that our trustees. engagement goes far beyond attendance at committee and board meetings and extends into regular visits to the homes alongside member5 of the executive team to see the homes first hand- from refurbishments and the opportunity to speak to carers aboLtt what keeps them at WCS Care. and our residents about what everyday life 15 like for them, to judging our WCS in Bloom competitions. As passionate advocates for the chartty, trustees use their networks to raise the profile of the group. sharing news articles, our regular newsletter and Social media posts with their connections. Review of 202212023 Our 30, year saw the end of Covid restrictions and the retum to normal life in our care home5, Wlth the removal of all restrictions. residents making the most of our new Memory Maker minibus, and the community beingwelcomed back into our homes. Annual reportand financial statements. yeai ended31 MaT(h 2023 WCS Care Group Limited Report of the Trustees includlng the strategic report {Continuedl Residents and their families Emer in from Covid This was the year that we finally began to emerge from Covid. Whilst we've responded to Government guidance throughout the pandemic, we've also been pragmatic in that response, ensuring relatives could continue to visit their loved one safely, and, for the third year running, provided opportunities for people to celebrate Christmas together. As the Government removed their guidance on the use of masks in care home settings in mid- December, at a lime of increased community infections, we not only continued to Use masks in our homes, we also reintroduced 72 hour asymptomatic testing, helping to detect cases which could otherwise have caused infections to spread amongst residents and staff. By the end of February 2023 we took the decision to remove masks, whilst retainlng testlng for another two months until the warmer weather arrived and re5ident5 had the benefit of the Spring booster. Feedback from residents, relative5 and staff was incredlbly positive to our phased approach to the lifting of these final infection prevention measures. l)ail life Refurblshments and Improvements We've invested over £lmillion in our refurbishment programme over the year, completin8 transformatlons at Drayton Court, Attleborough Grange, Fairfield, Newlands and Mill Green, and startin8 work at Four Ways. Alongslde this work, we've a150 continued our work to upgrade 51vices, replace gutterin8 and facias and install new technology including an advanced nurse call system ot Attleborough Grange and cameras that Ilnk to our acoustic night-tlme monitoring system at Castle Brook, Drovers House, Woodside Care Village and The Limes. In February 2023, we received plannlng permlssion for our care cottage extensions at Fairfield in Bedworth and work is expected 10 Start on slte13ter in the year. We've also progressed planning applications for development5 at another four homes to extend their capacity, providing modern, bedrooms Wlth ensuite wetrooms. R•fvrb15hEd lounieat Newl•hds Feedback from residents, relative5 and staff ha5 been nothing but positive about the new décor and improvements to the homes. R￿U￿1Shed lounae In thecountryllfestyle at FalTNeld Annual report and linantial staiements. year ended 31 March 2023 WCS Care Group Limited Report of the Trustees Includln8 the strategic report (Continued) Daily artivitie5 The Memory Maker, our new minibus. hit the road in 2022, providing trips for residents to shops and attractions in their local communities. With multiple outings per home each month, residents have enjoyed getting out to cafes, pubs. country parks. the local butterfy farm, garden centres and museums. The mlnibus can accommodate wheelchairs and we also invite relatives along on trips so they Can make new memorie5 With their loved ones. Dally exerc15e Keeping active has a significant impact on our health and wellbeing. We continue to malntain our membership of the National Activity Providers Association and Oomphl Wellness, giving our Lifestyle Coaches, who are employed in every home. the tools they need to promote regular exercise in engaging ways. This year we've also introduced outdoor gym equipment at Castle Brook in Kenilworth following the successful introduction of equipment at Woodside Care Village. Recumbent cy¢ling machines and a tai chi arm spinner encourage people to spend time outside as well as exercise their arms and legs. Residents at Woodside Care Village can now enjoy virtual cycling, travelling local, national and international roads from the comfort of their cinema. Using a mini exercise bike, residents can choose where they'd like to cycle, following the route on the big screen as they cycle in comfort. Virtual cycling provides a fun, immersive experience, genlSe exercise and reminiscence in a social and interactive way. What Is vlrlual cycllng7 htl outu.be WKE-n U8xlY Laundry sebvlces After a successful trial at The Limes in Strètford-Upon-Avon, all WCS homes are switching to laundry products from Proctor and Gamble's range of familiar product5 which include names such as Ariel and Lenor. Residents have experienced improvements in wash quality, stain treatment. the softness of clothes and fragrance. Whilst staff have reported fewer wash cycles and lower temperatures resultinE in significant energy savings. The reusable containers will a150 reduce plastic waste by nearly 3,500 containers per year. Annu31 report and financkil Statements. ￿ar ended 31 M3Tth 2023 LO WCS Care Group Limited Report of the Trustees Including the strategic report (Continued) Residerit wellbeii) Dementla Support UK WCS is a founding memberof Dementia Support UK. run by Australia's Hammondcare. Under a subscription model the service currentty supports over 40,OLKI people with dementia in care homes. The aim of the service is to Improve the quality of life and care for people who are experiencing behaviours and psychological symptoms of dementia. Staff irs care homes can often struggle lo get timely support and referrals to the relevant professionals through the NHS and then this may be more of a biomedical model rather than combined one with a psychosocial approach where people with dementia can have their personal, social and emotional needs met alongside their medical needs of care. Dementia Support UK, is a speclalist consultanry service which supports carers and staff teams in WCS'S home5 who look after people living with dementia. It's non-pharmacological and provides better understanding of ihe behaviour, and problem-solvin8 time wilh a consultant, to agree on the action5 which can be taken to meet that resident's needs. Through our pllot Hammondcare have tried to make the service as accessible as possible- it can be accessed by our staff land famllles with consent) via an app, the website, or by phonelemail. form. they booked in ofull ossessmenrfor soon ofter. After tt7king lot5 0 inlormotion obout the resident, they provided o behaviour support plon toilored to meet their needs. The whole proce55 took less thon o week in totol ¥vhich is mtjch quicker thon hoving to 5peok to a GP to moke o referrol to onother ogency. It's •eot to have somewhere to go to get the support we need. Staff members Markii) ID In September 2022 we held our first leadership conference, bringing together home managers. members of our frontline care teams, heads of department and trustees. This well-received day looked back at our 10-year innovation journev and the staggering amount of work we've done in that time, before looking forward and introducing new innovations that would be coming to our homes in the coming month5, such as Booklane. Annual report and financkil statements, wTended 31 Marth 2023 Ji WCS Care Group Limited Report of the Trustees including the strategic report {Continued) and work life balance The number of vacancies in social care has been at the highest rate on record with 165,CKIO unfilled posts in the last year. At WCS Care we've bucked the trend by supporting our staff to have more control over their work/life balance through the use of new technology, and introducing a new mobile carer role which is, and has, reduced our reliance on external agency. Using technology to give carers control of their workllife balance_. This year we took on learning from overseas. for example in the US staffing problems were twice as severe as here in the UK. One initiative was the Bookjane staffing app which we're the first UK provider to use. Bookjane 15 very simple for employees to use. After downloading the Boo￿ane app to their phones. staff can see all of their shifts easily, as well as open shifts that are still available. It gives them the opportunity to choose how much they work and earn. making it easy to pick up additional hours, and all too importantly, at times that suit them. As well as benefitting our fulltime staff, the app appeals to people who are looking for a second income or flexible hours. The app opens up a whole new workforce to us, making work/life balancing easy for people who have other jobs, family commitment5, are topping up their pension or studying. Providing this flexibility means more of our own staff are picking up shrfts. eaming additional income and reducing our reliance on more costfy agenry workers. Youpick a date ondyou ho￿ yourhours, dlck occeptond YOU'￿ booked in for work. You geta nobficution when yourshrfti5 Im￿keda￿d another3 houts before yourshifta5 o reminder.. ..and introducing a new Mobile Carer role We asked ourselves, 'who benefits most in a staffing crisis?. and of course the answer was the staffing agencies themselves. Staff who we could employ directly often choose to work for any agency because they like the flexibility of the role. and the agencies pay slightly above the going rate. By saving on expensive agency staff we now pay more than agencies and have been able to attract the very best staff. who would not have worked for u5 before. in our new role of mobile caref. These workers choose their shifts through our app like Uber workers and aren't tied down to any one of our homes, so they retain the freedom of working in multiple locations. By introducing the app. putting control into the hands of our carers. establishing our mobile carer role and reducing external agenry use we've ovoided the staffing problem5 that have faced many other care providers and have seen: 9CY% reduction in rota admin time 85% reduction in agency 22% decrease in complaints 16% increase in residents participating in leisure activrties Annbal rewrt and financial ststemerbts. year ended 31 March 2023 12 WCS Care Group Limited Report of the Trustees including the strategic report {Continuedl 15% reduction in staff turnover 4% increase in positive customer ratin8S 7've wothdfor WCSAorsevernlyeots as o Seniorcorerot Woodsldecare illoge ond only took on the Moblle Corerrole in the10stfrwmonts. I fto¥v havefargreotercontrol ondfreedom overwhen ond Whe￿ I work ondhave the prlvllege of Wo￿ng with a wlde varietyof Care￿ stoff and residents ucross WCS'S home5., ￿￿)1￿(..,91{4 P3 3wards In November 2022 we brought forward 5% of the national livin8 wage increase that was Set to come into effect from the I" April 2023, in recognition of the cost of living pressures that staff were facing. At the end of the financial year, we were pleased to let our colleagues know thal their hourly pay would increase again from the I" April, giving a total increase to frontline team members of 11.1% in the year with all staff paid above the national living wage and 50% of frontllne carers paid above the real livin8 wa8e. Staff wellbein The Potting Shed Introduced in 2020, The Potting Shed 15 run by a team of staff volunteers who give iheir time to arrange events for staff and support them with their health and wellbeing. Linked to this SUPPOrt is our provision of Perkbox, a Thc Poiilne Shed be nefits platform with hundreds of shopping discount5, and access to Health Assured for free. confidential advice and support. ¥Wh¢Y¢ tk¢ x¢¢&ts 9rtrw A5 well as their re8ular activities that include quizzes, walks, ten-pin bowling and more, the Potting Shed team held a staff black tie event in December,. an evening of fun alongside a thank you for everything Staff do. The event Wa5 attended by slaff from across all thirteen WCS homes and was huge succe55. We can see the results of our focus on the support, pay and wellbeing of our staff comin8 throu8h in our staff survey results with 9.1 out of io staff saying they are satlsfied with. are likely or very likely to recommend WCS Care as a good place to work. Other stakeholders )lier5." New iva s ol workiii WCS Care is known in the care sector for our use of technology and embedding new, innovative ways of working. Our experience of thinking outside the box, trialling new approaches. learning fast and applyin8 change held us in good Stead during 202212023. Annual reportand financial 51aLementyyear ended 31 Mawth 2023 13 WCS Care Group Limited Report of the Trustees including the strategic report (Continued) Improving Sleep Over the last year we've enhanced our use of acoustlC5 for night-time monitoring by adding cameras to the system. Used with consent. the camera is not on all the time, but is activated when a trigger Sound is picked up by the acou5tlC5 5YStem and the night manager checks the alert to see if a carer needs to be sent to support the resident. Having visual information means our night staff can make even better decisions about when to support residents. Previo¥Jsly any sound from a room could have indicated that an in-person check wa5 needed, however the use of camera5 means we can check if this is really necessary. Often a resident is simply moving around in bed, getting comfortable, and they do not need to be disturbed further by a carer. And the cameras have helped to reduce falls even further with a 45% reduction at the Lime5 and 24% at Woodside Care Village. The cameras identify when residents are about to get out of bed more easily, but also allow us to see when a resident has lowered themselves to the floor rather than falling out of bed. removing the need for an unwitnessed fall to be recorded and all of the follow-on precautionary actions that would otherwise need to be taken, as well as preventing the emotional upset that thi5 causes for staff and relattves. If you've not heard of acoustic monitoring. iys a non-intrusive technology that listens to sleeping residents and is triggered by unvsual sounds beyond a set level for each person's specific needs. If there'5 no sound from a resident's room, the￿re left to sleep in peace. rather than being disturbed by hourly door-checks throughout the night. WCS Care have championed the use of acoustic monitoring in the sector since we first retro-fitted it in one of 04Jr newer homes in 2015. Within a year we experienced a 34% reduction in night-time falls and. after installing it in two further new-builds, were able to evidence a 55% reduction in falls across days and nights. In 2020 we installed a new Wi-Fi version of the acoustic system into The Limes, one of our older buildings. and became the first provider in the UK to monitor two site5 from one location, using remote monitoring to support the night carers at this small residential home. This strateEY has provided oversight and staff support for the night carefs at The Limes. enhanced care quality and reduced night staff costs by 17%. J ￿ rf) 02112 htt outu.be 5HOeiu u060 Having shared our acoustic story with the sector. Care Quality Commission ICQCI and Ministers of State for Care, we are pleased thol this technology is now being supported via funding made available through the NHS Transformation Directorate and hope to benefit from this so that we can introduce this system to the rest of WCS'S homes. Human centric lighting Over the last year we've moved forwards with our work to find a solution that will enable us to retrofit circadian lighting into our older buildings. Working with a lighting consultant, we're finalising an approach that will bring the benefits of this lighting to all of our homes. We've also launched our PhD study with Oxford University which will investlgate the benefits of circadian lighting for people living in residential care homes, and in particular people living with dementia. Annual report and fin3ntiil statements, yeareThded 31 March 2023 14 WCS Care Group Limited Report of the Trustees including the strategic report (Continued) Circadian lighting imitates nature'5 cycles of light and dark, as well as the changes in colour we experience from dawn to dusk. 80% of residents living in a WCS Care home for older people live with dementia. l in 5 people with Alzheimer's disease experience sundowning syndrome, sometimes called late-day confusion, but it can also happen generally to older people. l in 15 people in the UK suffer from Seasonal Affective Disorder (known as SAD syndromel which, because we live in the northern hemisphere, tends to impact people more between September and April. The conditions above. as well as a lack of sleep, can lead to depression, over-eating. poor concentration, memory problems, a lack of energy, confusion, loss of day orientation and changes in mood. Exposure to natural light for as Ilttle as 10 to 15 minutes day, can help to reduce or stop these symptoms. During the day, clrcadian rhythm lighting replaces the sun Indoors, and at night stops you bein8 exposed to inappropriate blue/white light which can delay or dlsturb sleep palterns. d Russell hti outu.be ZX2x sSGr We installed circadlan lighting into our latesi home, Woodslde Care Village in Warwlck, and having seen the positive impacts it has for residents in this home and at Drovers House in Rugbv where it's installed in communal areas and on one household, we're keen to bring its health and wellbein8 benefits to residents across the 8roup. Bookjane: flexlbllltyls the new work currencv Learning from the US we introduced the Canadian staffing app, Bookjane, into our three largest homes in the summer of 2023. This simple app allows Staff to See their rota on their mobile phone alongside open shifts that they can choose to pick up if and when it suits them. QrGJdlan1I8htlni atwoodslde Caro v111￿C proyldl • 501t, wimi Iliht In th• evenlni Introducing the app, alongside our new Mobile Carer role, which gives experienced staff who prefer to have the freedom to work at more than one location visibility of shifts across a group of our homes, h35 transformed our staffinE. Rotas are full, managers are no longer feeling guilty that they're pressurising people into picking up shifts, rota management time ha5 reduced, and staff are in control of their workllife balance, earning what they want, when they want to. We've seen staff turnover reduce and external agency use has fallen by 85Yo, halting ihe waste of money on expensive agency workers. The original pilot wa5 $0 successful that instead of rolling the app out to the rest of our homes over 2023, we've pushed ahead and established this new way of working in all of our homes. Looking ahead our ambition 15 to introduce faster pay. allowing staff to draw down a percentage of earned income ahead of the monthly pay cycle to help them manage their financial obligations. Annual reportand financi315tatement5, yEar ended 31 March 2023 15 WCS Care Group Limited Report of the Trustees Includlng the strategic report {Continuedl OneDay video." Ilghts. camera, actionl Taking another initiative from oversea5, we're starting to introduce the OneDay video app, starting with our Trusted Advisors and recruitment team members. This mobile app makes taking and editlng videos with captions p055ible on your mobile phone, with the added bonu5 of being able to send the finished videos by text or email directly to customers, interview candidates and new employees. As more and more people rely on their phones for communication and text messaging overtakes email communication, and with over 80% of the content people absorb every day being video based, this new approach allows us to reach people in a way that brings our people and homes to life in a way the written word can never do. Partnership working Warwlckshlre County Councll We're proud that approximately 450 socially funded people benefit from WCS'S charitable support every year leading to a significant annual charitable contribution via our main social care contract with Warwickshire County Council. We were pleased to build on the excellent working relationship we have with our local commissioners during 202212023 by providing additional bed capacity to support with local hospital pressures. enablin8 people who were medically fit, but needed additional sUPPOrt before being able to go home to spend time in a re5identiol settin8 while they re8ained important independent living South Warnilckshlre Foundatlon Trust {SWFri Our partnership with SWFT continued to provide additional capacity in 202212023 at Castle Brook in Kenilworth and Drovers House in Rugby, and continued to deliver successful outcomes for hospital patients who are discharged to us for support wilh their ongoing reablement before returning to their usual accommodation. Oxford Unlverslty As reported on earlier in this ￿pOrt. we've already installed circadian lighting at Woodside Care Village and completed a partial retrofit at Drovers House. We know the lighting has significant health and wellbeing impacts for residents. but published findings and research are limited, meaning this standard of li8htin8 isn't widely adopted in the sector. In October we launched our PhD study with Oxford University into the impact of circadian li8htin8 for people living in residential care, particularly people livin8 Wlth dementia. Working alongside Professor Russell Foster, Director of the Sleep and Circadian Neuroscience Institute, our PhD student Lucy Jobbins has previously conducted research into dementia risk factors and worked within an NHS memory service. This three-year study will compare traditional care home lighting and circadian lighting to asse55 the health and wellbeing impacts for residents. Annval repDrt financial si*emthis. >*ai ended 31 Maith 2023 16 WCS Care Group Limited Report of the Trustees including the strategic report (Continued) Influenclng the sertor WCS Care in ihe news The Guardian In December we welcomed The Guardian's social affairs correspondent to Woodside Care Village. Against a backdrop of negative coverage of the care sector we welcomed him to the villa8e on typical winter's day where he experienced the life residents experience. writing... 'Woodside Core Villoge in Worwick is stoged like t7 town centre in mini¢7ture with benches ond o fountoin. caAé tobles ondfront door5 to hornes styled os either 'town'. 'country' or 'clos5ical'.....here everything hos o greoter purpose.. to improve the wellbeing of people with dementio., Despite talkin8 to Robert about our use of technolo8y antl the design of the village, his focu5 remained on the residents and staff who he met and chatted to, making firm friends with one ladv who introduced him lo all of her favourite carers and her robotic cat... Before I left. Pom 9Ot upfrom herploce in the ct7fe knitting circle to show me a robotic long-hoired cor she likes to stroke. She tickled it5 tummy to keep it purring. l joined her stroking it ondshe took my other hond ond squeezed it. She wa5 smiling., To read the full online article visit The Guardian website and search for Woodside Care Vlllage- the article is titled Dementio village in Worwick is a pioneer in per50n-centred core. Carlng Mmes Al the start of 2023 we also welcomed Caring Times, editor Lee Peart to Woodside Care Village. Lee wrote about his visit... 'After being welcomed with teo ond o croi550nt by Woodside'sfriendly receptionist Megon, I sot ond woitedfor my tour of the home in the 'A Cup Above, café. I wos immediately struck by the worm. welcoming ond reloxed otmosphere. Soothing Phil Collins music ployed in the cofé ond reception oreo, which wosfull of light thonk5 to the lorge window5 fucing out onto the centrol Village Plozo. It was not long before the coféfilled upfor o gome of bingo led by some of the support worker5 Using o Tiny Toblet interortive screen. Focusln8 on the detail of the care model Lee noted... It's 5urpri5ing to hear there ore 72 residents in the villoge os its V-shoped design provides o much smoller ond intimotefeel thon the typicol core home. I w05 interested to learn thot while holf of the households coterfor people living with dementio, the other holf houses residentiol care. with two households devoted to deof people.. As a registered charity. we're proud to be leading the way and showing the care sector what's possible when you step away from the traditional models of design and care, whi15t still working within the regulatory frameworks whith allow people to live in a safe, caring and responsive environment. Since these articles were published we've welcomed care providers from around the country to Woodside Care Village who are keen to see what we're doing and how it may change their own approach and, in particular. building design,. sharing the reality of what's possible. Annual report ènd financ￿1 statements. year ended 31 Maith 2023 WCS Care Group Limited Report of the Trustees Intluding the strategic report (Continued) Raisin the rofile of circadian li htin In March we were invited to join the panel of an online Innovators in Residential Healthcare event 'Circadian Lighting Principles and Practice, led by lighting expert Dr Shelley James. Featuring academics and residential care fatilities from around the world, WCS Care were proud to represent the UK as a leader in the implementation of circadian lighting. sharing our experience to date and ambitions for the future. Financial review Taxatlon status As a charity, WCS Care Group Llmlted is exempt from corporation tax on its charitable activities. Insurance of dlrertors and trustees The charity maintains insurance for the directors and trustees of WCS Care Group Limited In respect of their duties for the organisation. Reserve5 policy and golng concern 11 is the policy of the charity to tar8et free reserves at a level which will support the operations of the business in the event that some of the homes encounter tradin8 difficulties during the year. The Board ha5 agreed to set aside £4m for this eventuality. Reserves are olso held to provide funds for the future development of its property portfolio, continual improvement of servlces and growth within the charity. The reseNes policy is reviewed on an annual basis. At the year end, free reserves available to the Charlty are represented by unrestricted reserves of £22.2m, less fixed assets of £29.Om, plus debt used to finance assets of £14.8m, which equals £8.Om 12022.. £8.Iml. The free reserves over £4m are planned to be invested in maintenance of existin8 care homes and the development of new care services over the coming years, as explained throughout in the report. The directors have considered it approprSate to adopt the going concern basis of accountin8 in preparing the financial statements. The trustee5 are of the view that adequate resources are available to the organisation to continue to operate as a golng concern over the foreseeable future from the date of approval of the financial statements. The Charity has revislted its going concern assessment during 2022-23. It has reviewed the re- worked cash flows up to March 2025, including scenario planning for another wave of Covid andlor lower occupancy impact on self-funder income. Although there has been some impact, this had no material impact on the financial viabillty of the charity in the foreseeable future. Post Covid-19, we have seen the investment sentiment remaining strong and without an alternative safe and viable option for the care of older people, residential care sector will continue to play a vital role. The Charity ha5 shown to be resilient and able to operate and provide 8ood leve15 of care in very challenging of circumstances. Annual report and financial sraiemeDts. year ended 31 March 2023 18 WCS Care Group Limited Ileport of the Trustees includlng the Strategic report Icontlnued) Statement of dlsclosure of information to auditor The director5 at the time when the Report of the Trustees was approved confirm that: so far a5 they are aware, there is no relevant audit information of which the charity's auditor is unaware; and each director has taken steps that ought to have been taken as a director in order to be aware of any information needed by the charitrfs auditor in connection with preparing their report and to establish that the charity's auditor is aware of that information. Stren8thenlng the financial positlon The charity has made surpluses in the year, building on the rese￿e5 generated in previous years. Flnancial results The Charity generated an overall surplus of £0.88m12022.. £2.46ml in the financial year ended 31 March 2023. This yearfs financial performance has had a positive impact on the Charity's balance sheet, shows net asset5 of £22.2m12022 £21.4ml. More information on the opplitation of reserves is provided on page 18. Whilst substantial net assets are not the prime business objective, a strong balance sheet 15 important in providing the resources to support the Charitrfs development. The Charity remains in a position to be able to pay its debts as and when they fall due and it continues to provide quality care to its sernice users. The Parent Charity, WCS Care, saw overall income increase by 5.96%. malnly due to the annual Inflatlonary increase and overall higher occupancy across all the homes. Care operating expenditure continues to absorb relatively high property maintenance costs and additional depreciation from the three village homes and refurbishments at the older homes. The Executive Team is charged wilh maintaining a tight control over operating and administrative expendilvre whilst still recognising the need to undertake major maintenance works at some homes $0 that the hlgh level of service to our service users 15 maintained. Payroll costs have increased due to the National Minimum Wage legislation, a further mid-year pay increase and agency costs due to tougher recruitment condition5. While the homes make every effort to minimise the use of agency staff throu8h the use of in-house mobile workfor￿, costs In this area have increased by Il%.12022- 6%) There were no additional Govemment grants for infection control received during the year12022: £I,288,c￿I. The cost of all refurbishment and capital work5 hos been depreciated since the completion of each individual 5¢heme. The Charity has undertaken a programme of refurbishment works at all its older Homes. Depreciation costs have increased this year to £1,463,ocKI12022 - £1,313,OCQI due to the newer village homes and refurbishment work5. Further inforination on depreciation costs can be found in note 8 to the Financial Statements. Annual reportand fftTh3ttthil statements, year eTrded 31 Marth 2023 19 WCS Care Group Limited Report of the Trustees including the strategic report (Continued) The expenditure on property refurbishment and maintenance continues to be a priority for the charity spending £1,250,00012022 - £655.0001. Smaller items of furnishings and equipment purchased by the Homes which, in accordance with the Charity's accounting policies has not been capilalised, increased to £81.00012022 - £52,000). This expenditure reflects the Charity's continuing commitment to maintain a high level of décor and furniture within the Homes for the benefit of our service users. Cost increa5e5 were experienced in care and management staff, through the deployment of additional resources in care, pension contributions and Head Office sUPPOrt services, social activitie5 for residents, residential expenses and professional seNices. Although the charity operates on a 'not-for-proflt' basis, the financial future of the business Can only be secured through the delivery of an efficient and effective service that provide5 operating surpluses to finance even hi8her standard5 and future developments. The Charity is required to generate sufficient surplu5e5 in order to repay debt financing, raise finances from the bank to invest in existing and new homes. Despite the continuing underlying financial success of the charity a number of si8nlflcant financial pressures remain and these include.. 115taffing costs Over many years now the real cost of employing dlrect care staff In our residentiol homes has been in¢rea5ing by 5ignificanily more than the rate of inflation. The increase in cost has resulted from meeting the needs of ever frailer residents, specific requirement5 to meet Dementia Care standard5. enhancin8 service quality in areas such as Social activities and laundry. Changes in legislation due to increase5 in the National Living Wage16.6% from April 20221 and the continuing professionalisation of the workforce together with the cost of living pressures continues to maintain the upward5 pressure on staffing costs. The annual direct care stafflng expendlture Increased Year￿n.year by 11%1£1,805,0001. It has been essential for pay awards to be kept In line wlth the care sector, other than to recognise the increase in the National Livin8 Wage eath year. However, during the year, to ensure the charity retained and recruited staff in an inflationary environment an additional mid-ye2r pay award of 5% was made in November. The Charity sees inflationary pressures continuing in 2023-24 and therefore pressure on the organisatlon to generate the income is essential to meet its major costs. 11} Property malntenance costs. Icr and envlronment expendlture The charity's previous refurbishment programme did not address all property aspects and certain equipment. A programme of replacement and refurbishment has been established and the charity will work through the remainder of this over the next few years. Further resources have also been earmarked to roll out enhanced technology 5UPPOrting electronic care planning and acoustic night- time monitoring within the homes. There is also an ongoing programme to purchase new furniture, flooring and curtains. Annual ￿P￿r[and financial siaiements. year ended 31 March 2023 20 WCS Care Group Limited Report of the Trustees Including the strategic report (Contlnued) 1111 Other costs PPE has continued to be provided via the Government portal and the Charity has estimated an expenditure in-kind of £77,OCKI12022- £125,0(M)I. The impact of the Ukraine war on utility costs has been widely felt domestically and in the Commercial sector. Resulting in higher direct energy costs and feeding into hi8her input costs across most industries, leading to higher prices. Expenditure on gas and electricity more than doubled during the year from £407k to £985k. Other cost5 including: food, property maintenance. waste disposal, insurance all rose between 8% and 25%. Brexit uncertainties have added further cost pressures in the areas of food supplies and enerbry costs, depending on the relative strength of Sterling and potential additional tariffs being applied in any future Settlement. Although WCS Care does not employ many staff from mainland Europe (less than 5%), the indirect effect5 of 5taffin8 movement at the minimum wage level could see staff shortages In the care sector as a whole. In seekin8 to meet the increasing operational costs faced by the charity, the busine55 Strate￿ 15 geared towards improvin8 income streams whilst being as efficient as possible in the deployment and management of staff and in contracting for services. Places within our homes are Purchased either by people with independent mean5 or those supported through public expenditure to meet the specific care needs of very frail older people and adults with disabilities. The charity remains committed to ensurin8 that places a￿ available for public benefit throughout Warwick5hire. WCC support prices rose in line with inflation in 2022123, however. this did not entirely cover the wage increase resultin8 from general and energy inflation. The need to balance rising care standards and costs with income generation has driven the Charity's business strategy since inception. However, to secure the charity's fulure position as the leading independent care provider in Warwickshire. directors are committed to the generation of higher operating surpluses with the aim bein8 to continue to Strengthen the charity'5 Balance Sheet and to invest in new residential care homes. On the basis that WCC support fee rates in line with the c05t of care expectation5 and National Living Wage increase5, directors remain Confident the chority will be able to maintain care standards and develop its core services. a5 envisaged in the Business Plan. Plans for future peri¢x15 The strategy adopted focuses on ensuring the Charity has the capacity and capability to develop and deliver future-proofed core service5. This 5tralegy is predicated on a programme of ensurin8 5UStainability of all its care homes across the county. The key element of the strategy is to develop WCS'S older people's services over a 5-10-year period bosed on a mix of sustainability of existing homes and expansion. redevelopment and new build extensions. nual ieport and financ￿1 statements. year ended 31 Marth 2023 21 WCS Care Group Limited Report of the Trustees including the strategic report {Continuedl Development programme The charity has developed three new residential care homes. The first home was opened in 2013 in Rugby, providing specialist dementia care for 75 people and the second opened in 2016 in Kenilworth, housing 84 residents and the latest development in Wa￿iCk opened in November 2019 with 72 beds. All ihree care homes were developed with a mix of internally generated funds and bank lending. The current focus is on developing extensions to existing homes as well as a new tare village in the future. Principal risks and uncertainties General risk management On a continuous basis, specific risks are identified and rated hi8h. medium or low in a matrix fomiat. Controls are then designed to minimise or mitigate the risk throu8h quality measures, indicating action required and by whom. The Business Risk Assessment forms an integral part of our board meetin8S. The directors have examined the principal areas of the charity's operations and considered the major risks faced in each of these areas. The Executive Team reviews key or8anisational risks on a bi- monthly basis and these are assessed for their likelihood and potential impact on the charity. Action is taken to mitl8ate any significanl risk5 and the outcome is reported to the board. In the opinion of the directors, the charity has established resources and review systems which. under normal conditions, should allow these risks to be miti8aied to an acceptable level in its doy-to.dav operations. Care service failures, ability to recruit and retain staff, price rise due lo higher energy Costs and general inflolion, the threat from competitors and hi8her wage costs due to statutory National Llving Wage increases are the most Si8nificant risks faced by the charity. For all of the risks above, the Charity has strong mitl8ation5 and monitorin8 Systems in place and is confident in being able to contain them. The charity's operations expose it to a variety of financial risks that include credit risk, liquidity risk and interes1 rate risk. The charily has in place a risk management programme that seeks to limit any adverse effects on the financial performance of the charity by fixin8 majority of its, loans to avoid interest rate fluctuations. The charity does not use derivative financial instruments to manage interest rate risk5 and as such, no hedge accounting is opplied. Given the size of the charity, the directors have not delegated the responsibility of monitoring financial risk management to a sub group of the board. The policies set by the board of directors are implemented by the charity's finance department. Annu31 reportand financia15tatements. ￿¥[en￿e0 31 Marth 1023 22 WCS Care Group Limited Report of the Trustees including the strategic report {Continuedl Energy and emlssions report The following table summarises WCS Care's reporting requirements under the Government's Streamlined Energy and Carbon Reporting ISECRI. 2023 2022 UK energy use111 kwh 7,324,798 5,158,775 A550ciated Greenhouse gas emissions 121 Tonnes C02 equivalent Intensity ratio131 Tonnes C02 uivalent emi55ions per FTE 1,386 1,037 Z.61 2.06 111 UK energy use IKwhl is relatlon to Gas, Electrlclty and car fuel used by the company. 121 The associated Greenhouse gas emissions tonnes C02 equivalent has been calculated using the Government's conversion factors for reporting and HM Énvironmental reportin8 8uidelines. 131 The chosen intensity measurement ratio is total gross emissions in metric tonnes C02e per full time employee IFTEI. Energy efflcienry measures WCS Care have commissioned the latest E50S audit in 2023, however the works are still on-golng for the findings to be reported. Our ESOS (Energy Savings Opportunities Scheme) energy audit was undertaken in 2019 in accordance with the principles of the ISO 50))2 and the Brltish Standards Institution energy audits requirements. The Summary findings recommended to replace high energy IiBhting with LED equivalent. WCS has replaced florescent lights in two additional Home's receptions and corfidors and where existing florescent lights fail ihe5e are upgraded to LED as a matter of course. In 2023-24, as part of the work we are taking forward in relation to our Asset Management Strategy we will put mechanisms in place to monitor and improve our ener8y consumption and carbon footprint where it is feasible to do so. Related partles The organisation has one wholly owned subsKliary. which was active during the year.. Common Lane Developments Limited ICLDLI. The charity acquired the entire share capital of CLDL in May 2013 and developed the site it owns in Kenilworth into an 84-bed specialist residential dementia care home which completed in December 2016. CLDL will continue to operate a5 a development company for WCS Group Limited. It developed Woodside Care Village durin8 2019. Slgnificant contrart5 The charity has a care contrart with Warwickshire County Council IWCCI which ha5 been extended for a further 5 years from 2021. The contract involves delivering residential care services to older people and people with disabilities and provides the charity with around half of its income with the remainder generated from sales to private individuals or other public authorities. Annual repDrtand financial Stslkynents. yeèrended 31 Marth 2023 23 WCS Care Group Limited Report of the Trustees Includlng the strategic report {Continuedl Key performance indlcators Each home within the residential care operation prepares a monthly Management Report which includes key performance indicators to ensure each part of the business is compliant with the following standards which are internally audited. The KPI 5tandard5 include overall care quality; safety: effectiveness of operations; responsiveness.. and the homes being well led. Public benefit The charity trustees have complied with the requirement contained in section 17 of the Charities Act 2011 to have due regard to the guidance on public benefit published by the Charity Commission in exercising their duties. Service users who are not able to fund their place entirely from their own resources are normally subsidised by their local authority, predominately Warwickshire County Council. following an assessment of care needs. In this way, the charity is able to ensure that individuals across the whole community are able to benefit from the high-quality ser4ices WCS offers. Fees charged to se￿iCe users are commensurate with maintainin8 the financial viability of the or8anisation. Statement ot Dlrertots, responslbllltles The directors are reswnsible for preparin8 the report of the trustees incorporating the strategic report and the flnanclal statements In accordance with applicable law and ￿gUlatiOnS. Company law requires the directors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Pra¢ti¢e (United Kingdom Accounting Standards and applicable lawl- Under company law the directors must not approve the financial statements unless they are satlsfied that ihey give a true and fair view of the state of affairs of the group and charity and of the Incoming resources and application of resources, inclljding the income and expenditure, of the group and charity for the year. In preparing those financial statements the directors are required to- select suitable accountin8 policies and then apply them consistently make judgments and accounting estimate5 that are reasonable and prudent state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financi31 statements prepare the financial statements on the going concem ba515 unle55 It is inappropriate to presume that the charity will continue in business The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2C(16. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Independent auditor A resolution to reappoint CROWE U.K. LLP as auditor to the charity will be Proposed at the annual general meeting. Annual report and financial 5tateMeDis. >*ai ended 31 MaTth 2023 24 WCS Care Group Limited Report of the Trustees includlng the strategic report Icontlnuedl People management An extensive programme of training on organisational values and aspiration5 continued to be delivered to staff across the organisation to ensure values are shared and cascaded into all areas of care and practice. The charity promote5 Strong culture, leadership and innovation at all levels of WCS Care and individual homes. Staff turnover decreased to 24% durin8 the year12022 . 37%) however, still above the internal target of 20%. A combination of factors have contributed to the high turnover which include.. care sector low wages failing to attract and retain staff,. the opening up of the economy post covid restrictions has seen demand from all sectors to recruit staff as well as some sectors who relied on siaff from Europe now competing domestically. WCS has in place Conditions of Service which comply with legislation, are flexible, support the or8anisation's values and objectives, and which promote employee 5ati5faction. They include: fvll and fair consideration of applications for employment made by disabled persons, having regord to their particular aptitudes and abilities continuing the employment of, and arrarsgin8 training for, employee5 who have become disabled persons while employed the tralning, career development and promotlon of disabled person5 Staff salaries (including KMPI are benchmarked against similar organisation5, recruitment guidance and 3, parties, advice is also taken to ensure that they are reasonable and In Ilne with the sector. Sickness absence was Impacted by Covld-19 In the prevlous year and has now decreased to 6.6% for the year12022- 7.7%) but stlll is higher than the internal target of 5.5%. Approval of the report of the trustees •nd the strateglc report The Report of the Iruslees incorporaling the strategic report has been opproved by the Board of Directors and is signed on behalf of the board bv: A F Levett - Chairman IO, July 2023 IF Lw4tr Annual repori and finanrt and financial statemenis, year ended 31 Marth 2023 36 WCS Care Group Limited The average monthly number of persons employed within the charity by business activity was= 2023 2022 Number Number Residential care Support SeNices 794 797 37 29 831 826 The following number of employees recerved remuneration lexcluding pension contributionsl falling within the following ranges: 2023 2022 Number Number £60.001- £70,000 £70,001- £80.000 £80,001- E90,IXK) £90,001- £100.(KIO £IOO,CKJI - EIIO,(K)O All of the above 512022- 41 were members of a money purchase scheme for which the employerfs contributions were £62,82412022= £56.C(101. The key management personnel of the group and the charity comprise of the Chief Executive, Finance Director, Director of Quality and Compliance and Director of Marketing and Communications. The total remuneration was £468,52812022: £444.IXKJI. 4. Investment income Group Company 2023 2022 2023 2022 £000 Interest receivable on Short term deposits and other bank balances iThJ 100 ICK) loo Annu31 reportand finaThcial statements.yearended 31 March 2UI3 a7 WCS Care Group Limited 5. Interest payable Group Companv 2023 2022 2023 2022 £￿0 £000 Interest payable on bank loans 474 588 474 474 588 474 6. Charltable expenditure Care operating expenses of £24.844k12022= £21,893kl include the following support charges: Group Company 2023 2022 £cK)o 2023 2022 £000 £000 General office and finance staff 1,637 98 1,446 72 1.637 98 1.446 72 Premises Training MarketSng Information and communications technoFogy Bankin8 and finance char8es Legal and professional Governance costs 70 82 70 82 62 56 62 56 418 316 418 316 26 S7 26 57 119 96 119 96 49 47 45 2A79 2.172 2,478 2,170 Annual ieport financial stètem•)Is. ended 31 MaTth 2023 38 WCS Care Group Limited 7. Net income for the year Group Company 2023 2022 2023 2022 £000 £000 £000 £000 Depreciation charge for the year: Tangible owned fixed assets Auditor's remuneration for: Audit Other services Operating lease rentals.. Other leases Expenditure on furnishinBS and equipment in refurbished premises 1,463 1,313 1,463 1.313 20 29 19 29 13 13 13 13 81 52 81 52 1,577 1,407 1,576 1,407 Annual repori and financial 51aiements, yearended 31 March 2023 39 WCS Care Group Limited 8. Tangible assets Group Freehold Fixtures Fittings and Land and Motor Buildin ui Total £000 £000 £000 Cost At l April 2022 Additions Disposals 41435 70 4.222 15 46.672 1,355 1,250 35 At 31 March 2023 505 De reclation At l April 2022 Charge for the year Eliminated in respect of disposals 14,531 775 3,062 681 17.609 1,463 At 31 March 2023 Net Book Value At 31 March 2023 At l April 2022 Annual reporiand fmanclal stsi•ments. yearended 31 Marth 2023 40 WCS Care Group Limited 8. Tangible assets Companv Freehold Fixtures Fitting5 and Land and Buildin Motor ui ment Vehicles Total £000 £000 £000 Cost At l April 2022 Additions 42,442 4.222 1,250 15 46.679 35 1,285 Disposals At 31 March 2023 50 De reciation At l April 2022 Charge for the year Eliminated in respect of disposals 14,531 775 3.063 681 15 17,609 1.463 At 31 March 2023 15 22 Net Bookvalue At 31 March 2023 At l April 2022 The net book value at 31 March 2023 represents fixed assets used entirely for direct charitable purposes. Annual reportand financial statements. yearth4ed 31 Marth 2023 41 WCS Care Group Limited 9. Fixed asset investments WCS Care owns 100% of the share capital of the following group companv: Company Common Lane Developments Limited Company number- 07582043 Incorporated in England in March 2011 Principal artivity Construction development seThices The liability of WCS Care as a member of Common Lane Developments Limited is £799,. 100% of the ordinary share capital. The Company made a 1055 for the year: £l,00012022: £01. The subsidiary has net a55ets of £4,00012022.' nel ossets of £5,000). 10. Debtors Group Company 2023 2022 2023 2022 £000 £cx)o £000 £000 Amounts fallin8 due within one year Trade debtors Amounts owin8 from subsidiary undertakings Taxation recoverable Prepayments and accrued income 1,136 1,242 1,136 91 1,242 61 337 179 337 179 1,478 1,423 1,564 1,482 11. Credltors: amount5 falllng due wlthln one year Group Company 2023 2022 2023 2022 £000 £000 £000 £000 Bank loans Payments received on account Trade creditors Amounts owing to subsidiary undertakings Other taxation and social security Other creditors Accruals 2,751 961 2.751 961 135 135 519 429 516 428 238 179 238 179 1,360 928 1,358 925 4.875 2,640 4A70 2.636 Annual repDrt and financial statements, year ended 31 March 2023 42 WCS Care Group Limited 12. Creditors: amounts falling due after more than one year Group Company 2023 £000 2022 2023 2022 £000 £000 £000 Bank loans 12.052 14,814 12.052 14.814 12.052 14,814 12,052 14,814 Bank loans are repayable as follows: Group Company 2023 2022 2023 2022 £000 £000 £000 £000 In one year or less Between one and two years Between two and 5 years In 5 year5 or more 2,751 963 960 2.751 963 960 2,736 2,785 9,293 2,736 2,785 9,293 3,191 7,898 3,191 7,898 14,803 15,774 14,803 15,774 The charity has four loan facllities, which are fully drawn, their remaining balances are.. 111 £1.gm variable loan to July 2023.121 Fixed loan of £3.Om to 2030.131 Fixed loan of £4.6m to 2028.141 £5.3m variable loan to 2043. On 13 May 2013 the chority entered into a debenture with The Royal Bank of Scotland pl¢ to secure loan facilities by way of a fixed charge over all property, plant & machinery, goodwill, investments in subsidiaries and intellectual property. There is a floating charge over its undertaking and all its other property, assets and rights owned now or in the future which are not subject to an effective fixed charge under the debenture. Annual repDrt and financial sraiements, year ended 31 March 2023 43 WCS Care Group Limited 13. Employee benefit obligations Defined contribution Scheme The charity participates in a Stakeholder Pension Scheme operated by Aviva which meets the government's Auto Enrolment fequirements. This scheme was closed to new entrant5 in March 2015. Charity contributions range from 3% to 6% dependent on length of se￿iCe and the level of contribution made by employees, which is flexible and governed by the Stakeholder Pension Scheme rules. On l April 2014 the charity implemented an Auto Enrolment Scheme making contributions that follow the requirement5 of the relevant legislation. At present. employee and employer contributions are 3%. The total pension cost for the charity for the defined contribution schemes in the current year was £363,OLK)12022: £325.1XJOI. 14. Deferred grants There are no deferred grants. 15. Restricted funds-Group and Charity During the year the charity did not receive any restricted funds Idonations and grants that could only be used for specific purposes). Analysis of restricted fund movements Fund Balance brought forward Fund balance carried Expenditure forward Income 31 March l April 2022 202V23 2022123 2023 Donations 16. Designated fund The charity does not have any designated funds which have been set aside by the trustees. Annual reportand financialstatemEnts, ￿[ended al March 2023 WCS Care Group Limited 17. Other charitable fund The other charitoble funds of the charity are represented by the followin8 balances and movements in the year related to operational surpluses. Group Company 2023 2022 2023 2022 £000 At l April Net income 21,357 18.891 21,382 18,916 2,466 2,466 At 31 March 22,237 21.357 22.263 21,382 18. ReconcSllatlon of changes In resources to net cash Inflow from contlnulng operatlnz actlvltles 2023 2022 Net income for the period Depreciation on tan8ible fixed assets Interest receivable 2,466 1,313 IA63 1461 Interest payable Increase in trade debtors Increase in prepayments and other debtors Increase in trade creditors Increase in accruals and other creditors 474 15191 11611 51 499 1481 153 1161 4.839 Net Cash Inflow from ¢ontlnulni operatlng artl¥ltles 3.230 Annual reportand financial Staterr￿ts. ￿a￿ended 31 Mar(h 2023 45 WCS Care Group Limited 19, Analysi5 of changes In net debt Cash flows Flnanclng charge Cash flow5 Financlng charge 31 IAprll 2022123 2022123 March 2022 2023 31 March 2022 l April 2021122 2021122 2021 £000 £000 £000 £o)o £000 £￿0 £000 Cash at bank and in hand 8.325 406 8,731 5,519 2,806 8,325 Debt due within I year 19601 1.551 13,3421 12,7511 18451 885 11,0001 19601 Debt due after l year 114,8141 15801 3,342 112,0521 115,8141 1.000 114.8141 111,1401 17,4491 17,4491 1,377 16,0721 3,691 20. Capltal commltments Planning works have commenced for extenslons at a number of care homes, as at year-end, no contracts had been entered into forming any legal commilmenl5. 21. Flnanclal commltment5 At 31 March 2023 the Group and Company had annual commitments under non-cancellable operatin8 leases as follows.. 2023 2022 Land and Other Buildlng5 Land and 8uildin¥s Other Group and company Expiring within one year Expiring between two and five years inclusive li li 13 14 24 Annu31 report and financial statements, year ended 31 March 2023 46 WCS Care Group Limited 22. Contingent liabilitles At 31 March 2023 the Group and Company had no contingent liabilities12022.. £nill. 23. Related party tran5artions The organisation has one wholly owned subsidiary which was active during the year. Common Lane Developments Limited ICLDLI, registered at Newlands, Whites Row, Kenilworth, CV8 IHW. The charity acquired the entire share capital of CLDL in May 2013 and the company is used to redevelop care homes for WCS Care GroL¢P limited. During the year CLDL had 4 work-in-progress developments. In year movement of inter-company balance of £30k. Amount owned by CLDL to WCS Care as at 31 March 2023 is £91k12022= £61kl. There are no other related party transoctions. 24. Allocatlon of Net Assets between funds- Current Year Group Total Company Total Unrestricted Restricted Unrestricted Restricted 28.892 Tangible Fixed Assets Net Current Assets I 28,955 28,955 28,892 5,334 5,334 5,423 5.423 Long-Term Liabilities 1> I yrl 112,0521 112.0521 112.0521 112,0521 22,237 22,237 22,263 22.263 Allocation of Net Assets between funds- Prior Year Group Total Company Total Unrestricted Restricted Unrestricted Restricted Tangible Fixed Assets Net Current Assets I 29,063 29.063 29,070 29,070 7,108 7,108 7,126 7.126 Long-Term Liabilities 1> I yrl 114.8141 114,8141 114,8141 114,8141 21,357 21,357 21,382 21,382 Annual report and financlal starem¢nts. yearended 31 March 2023 47