Every day well lived
WCS Care Group Limited Annual report and consolidated financial statements For the year ended 31 March 2024
## WCS Care Group Limited
|**Contents**|**Page number**|
|---|---|
|Reference and administration details|1|
|Welcome from the Chair of the Board and Chief Executive|2|
|Report of the Trustees including the strategic report|4|
|Financial review|17|
|Independent auditor’s report|25|
|Consolidated and company statement of financial activities|29|
|Consolidated and company balance sheet|30|
|Consolidated statement of cash flows|31|
|Notes to the financial statements|32|
WCS Care Group Limited
## **Reference and administrative details of the charity, its trustees and advisors**
|**Registered name:**|WCS Care Group Limited|
|---|---|
|**Also known as:**|WCS Care|
|**Registered company:**|02713150|
|**Registered charity:**|1012788|
|**Registered office**|Newlands Head Office|
||Whites Row|
||Kenilworth|
||CV8 1HW|
|**Trustees:**|A F Levett - Chair|
||J A Matthews - Vice Chair|
||A J Last|
||S E Dobinson|
||R L Merchant|
||M R Andrews|
||R L Warwick|
||T M Banks (resigned 5thDecember 2023)|
||N Weatherburn|
||E J Basten|
||A J Holt|
||E E Ireson|
|**Executive 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 Auditor:**|Crowe U.K. LLP|
||Statutory Auditor|
||Black Country House|
||Rounds Green Road|
||Oldbury B69 2DG|
|**Solicitors:**|Anthony Collins LLP|
||134 Edmund Street|
||Birmingham B3 2ES|
|**Bankers:**|The Royal Bank of Scotland|
||Sheffield Branch|
||5 Church Street|
||Sheffield|
||S1 1HF|
Annual report and financial statements, year ended 31 March 2024
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WCS Care Group Limited
## **Welcome from the Chair of the Board**
‘Every day well lived’ is our vision and the health, wellbeing of, and opportunities for, those who choose to live with us have remained central to Board discussions and decisions this past year.
This report covers the final full year of our current strategy and as we develop the replacement, to be in place by September 2024, we are considering the impact it has had on residents’ lives. Strong strategic leadership has enabled the Executive Team to deliver our investment plan, care model, staff recognition programme and enhanced business systems and procedures with confidence.
None of the above would be possible without a skilled and passionate workforce. Our carers are strongly invested in making a difference to those who they look after. It is hugely heartening to see people of all ages realise their abilities to care, be compassionate and make a difference.
This report contains details of the progress made with the seven threads of our strategy. I will try and express progress in terms of outcomes for residents.
Those considering living with us are now helped to pick the right location and facilities. Our terms are transparent, there are no extras. They experience prompt admission processes and rapid care plan production. The environment in every home facilitates ease of movement and a resonance with a previous lifestyle. There are many more prompts to encourage discussion, reflection, and memories. We aim to generate a sense of locality and belonging. There are more opportunities for social interaction and stimulation both inside and outside our buildings. We strive to support individuals with dementia in their own reality with compassion to reduce stress. Technology has helped us reduce falls, improve hydration and accurately time medication. In some cases, the symptoms of dementia and anxiety have markedly reduced. We encourage a sense of joy, playfulness and belonging rather than dull acceptance of circumstance. Every resident is treated as a valuable individual who has contributed to society throughout their life.
The Board of Trustees perform no operational role, creating an environment in which goals are clear and innovation encouraged. Each Trustee brings a wealth of experience in their particular field. Regular visits to homes are made to scrutinise progress, inform decision making and encourage staff.
We remain confident our residential care offers a social and safe environment, combating the loneliness, worry, and isolation often reported by those at home. We are not complacent though; much more can and will be done.
Adrian Levett - Chair of the Board
Annual report and financial statements, year ended 31 March 2024
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WCS Care Group Limited
## **And a word from our Chief Executive**
We should be in no doubt that passion for, and investment in, our mission at WCS Care has never been greater. Looking forward, I believe our focus on quality care, serving our local communities in Warwickshire, working collaboratively, continually improving and meeting complex customer needs, and providing care homes that offer hope has positioned us strongly for the future. Our commitment to excellence is unwavering, and our ambition to set new standards in care is clear.
This past year has seen us achieve remarkable milestones. The success of our village care home model, exemplified by Woodside Care Village, stands as a testament to our innovative approach and dedication to creating environments where residents can thrive. Our efforts to integrate advanced technologies, such as circadian lighting and acoustic monitoring, have enhanced our residents' quality of life and positioned us as leaders in the sector, influencing care standards beyond Warwickshire.
We are proud of our team and grateful for their exceptional service and unwavering dedication. It is their hard work and compassion that underpin our achievements. From our frontline carers to our management team, everyone plays a vital role in making a significant difference in the lives of those we care for. Their commitment is evident in the high satisfaction ratings we receive from residents and their families, and in the accolades we continue to garner within the industry.
As we prepare to implement our new strategy later this year, our focus remains on elevating the standard of care and expanding our impact. We will continue to invest in our facilities, our people, and our community partnerships to ensure that we remain at the forefront of innovation and excellence in care.
Together, we are building a future where every resident can experience a life of dignity, joy, and fulfilment. Thank you for your continued support and trust in WCS Care.
Ed Russell – Chief Executive
Annual report and financial statements, year ended 31 March 2024
WCS Care Group Limited
## **Report of the Trustees including the strategic report**
## **Introduction**
The Trustees, who are also the directors of the company, present their report and the audited, consolidated financial statements for the year ended 31 March 2024.
## **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 600 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 long-established partnership with Warwickshire County Council.
Residential homes provide residents with a safe place where they are looked after according to their needs, such as help with washing, dressing, toileting, administering medication and mobility. The word ‘resident’ means that people can treat the setting as their home and live there with access to the services available on site.
Our ambition is 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 outlines how we achieve a day well lived; 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_ , _make someone’s day_ , _be there_ and _choose our attitude_ . The standard we walk past is the standard we accept.
Four essential building blocks to deliver a day well lived are:
## **Our principles**
- Fair fees
- Home for life
- Always improving
- Sharing with sector
- Partnership
## **Enabling environments**
- Small self-sufficient households
- Lifestyle options – living a life that is familiar
-
- Communal/active space in addition to living space
-
- Spending time outdoors
-
- Circadian lighting which promotes wellbeing
-
- Attractive and comfortable decor
## **High quality care**
## **Financial sustainability**
- Sustainable fee levels and occupancy
- People
- Strong financial leadership and management
- Behaviours •
- Systems/policies •
- Commercial and prosocial
- Funding
- Technology
## **Key behaviours to support and enable this are:**
- Passionate leadership
- Strong communication
- Value driven
- Innovative
- Effective and robust governance
- Active risk management
Annual report and financial statements, year ended 31 March 2024
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## **Report of the Trustees including the strategic report (Continued)**
**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: Integrated Care Boards through Warwickshire County Council, other local authorities and the 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 11 active members.
The Board of Directors has a wide portfolio of expertise and experience in health care, human resources, 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 re-election are those who have served the longest since their election or re-election.
Rebecca Warwick, Nick Weatherburn and Elizabeth Basten will retire by rotation and will offer themselves for re-election at the next annual general meeting.
## **Charity governance code**
WCS Care as a charity aims to follow charity sector best practices. The Charity Governance Code has been adopted into our governance framework in July 2022. The code sets out the principles and recommended practice for good governance. Our current governance framework meets the requirements of the code.
## **Trustee induction 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 strategy of the Charity and in fulfilling its role has established the following system of management:
## **Management of organisation**
The body responsible for the management of the charity is the Board of Directors / Trustees - (Management Committee). The Board has five scheduled meetings each year with other meetings arranged as necessary. Members are elected every three years and serve a maximum term of nine years, unless otherwise 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.
Annual report and financial statements, year ended 31 March 2024
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## **Report of the Trustees including the strategic report (Continued)**
The Board receives reports from four formally constituted committees which are reviewed annually:
- Quality and Practice, including the Safeguarding sub-group
- Finance, Risk and Audit
- Project Commissioning
- • Governance
Each committee has specific terms of reference and functions delegated by the Board.
The Chief Executive and the Executive 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 strategy, and financial and operational issues.
The Director of Finance is responsible for corporate governance as well as WCS’s overall financial strategy including statutory accounts and business performance. The Director of Quality and Compliance is responsible for ensuring that WCS meets the quality and operational performance required by WCS’s care management system, and responding to external reviews and regulatory inspections. 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 responsible 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 standards 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 members of the executive team to see the homes first hand – from refurbishments and the opportunity to speak to carers about what keeps them at WCS Care, and our residents about what everyday life is like for them, to judging our WCS in Bloom competitions.
As passionate advocates for the charity, trustees use their networks to raise the profile of the group, sharing news articles, our regular newsletter and social media posts with their connections.
Annual report and financial statements, year ended 31 March 2024
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## **Report of the Trustees including the strategic report (Continued)**
## **Review of 2023/2024**
2023/2024 is the last complete year of the charity’s current five-year strategy, presenting the perfect opportunity to reflect not only on our achievements of the last 12 months, but also to review our progress against this outgoing strategy before our new strategy is adopted at the September 2024 Board meeting.
## **Objectives for the year**
We have had an ambitious strategy which has focused on providing environments and staff that deliver quality of life for the people who choose to live with us. Our strategy was built around seven key threads:
1. 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 range of options for customers, including those who are socially funded
5. Refurbishing older buildings and planning new developments
6. Developing future design based on the village concept
7. Reviewing assets for reinvestment into our homes and people
## **Achievements and performance against the strategic threads**
## 1. Consistently articulating a model of who we are
WCS Care is known across the sector for its use of innovation and technology. Over the course of this strategy we’ve gone from welcoming, over 1,000, visitors to our Innovation Hub at Castle Brook in Kenilworth to hear about our use of electronic care planning, acoustic monitoring, circadian lighting, and our future building design plans, to opening our visionary home, Woodside Care Village in Warwick, which brings all of these elements together in a care home like no other.
Visitors are now invited to see innovation in motion; the culmination of our vision to develop a village care home design using the principles of De Hogeweyk in The Netherlands. We continue to welcome care providers, academics, journalists, policymakers, commissioners and NHS colleagues to experience the village and hear our development story, challenging and inspiring others to think differently about how they deliver residential adult social care.
## **Back to the Future leadership conference**
In September 2023 we held our second leadership conference, bringing together home managers, members of our frontline care teams, heads of department and trustees.
We know that ‘culture eats strategy for breakfast’, that without a strong culture, it doesn’t matter what strategy we set as a poor culture will stop us from achieving our ambitions. Our team members have a wide circle of influence and can have a positive impact on the perception of WCS Care, care homes and the services we provide through consistent articulation of who we are and what we do.
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## **Report of the Trustees including the strategic report (Continued)**
Connecting team members and our internal key influencers to our strategy ensures that everyone is pulling in the same direction, understanding our current and future ambitions.
The highly successful event took a brief look back to see how our journey so far is influencing our future and driving our strategic development.
Key themes focused on: elevating the role of caregiving, building homes that offer
hope, the importance of having the right culture to ensure we achieve our strategic ambitions, and connecting the individual purposes of our team members to their everyday work.
## 2. Engaging with key partners and decision-makers **Warwickshire County Council**
We continue to have a successful working partnership with our local authority with excellent relationships at all levels from social workers and care home teams to commissioners and directors. Our contract with Warwickshire County Council, renewed for a further five years during the course of this strategy, for the provision of socially funded places ensures we can provide care at a price that makes our care homes accessible to as many people as possible.
## **Influencing the sector**
WCS’s influence reaches beyond Warwickshire. Having been the first UK adopter of the Canadian rostering app BookJane and outperforming those who were implementing the system in the developer’s own country and the US, Chief Executive, Ed Russell, was invited to present at a conference in Atlanta to share our experience.
In May we presented to an international panel of care providers and academics on the topic of circadian lighting, with visitors from Canada subsequently visiting Woodside Care Village for themselves.
In December Ed was invited to present to senior leaders from the Department of Health and Social Care on the role of commissioning in enabling the development of innovative approaches within the care sector and to consider opportunities at a national level to foster new models of care. Attendees included the department’s Deputy Director, and the Head of Adult Social Care at the Department for Levelling Up, Housing and Communities.
And in March 2024 we welcomed the Medical Director for Transformation at NHS England, the Programme Director for Digitising Social Care (DiSC) in the NHS England Transformation Directorate and the Deputy Director for Social Care Technology Policy in DHSC to Woodside Care Village in Warwick. This visit highlighted the design principles of the home and our use of technology as well as raising opportunities for more joint working between health and social care.
## **Regulatory requirements**
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.
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## **Report of the Trustees including the strategic report (Continued)**
It is our objective to operate 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.
We have not experienced any Care Quality Commission (CQC) inspections under the new regime. The CQC continued to delay the introduction of its new regulatory framework which was originally due to be implemented in early 2023. Inspections under the new framework began towards the end of 2023 and we are ready to welcome the CQC and share our services and experience with them.
## **What our customers told us**
We’re delighted our customers continue to rate us highly and as a learning organisation we’re committed to continual improvement.
We thank our customers for taking the time to provide valuable feedback to us about their experience of our care homes, giving us an overall rating of 9.6 on carehome.co.uk, with individual homes rated between 9.2 and 9.9.
**Customers have given WCS a rating of 9.6 out of 10**
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## **Report of the Trustees including the strategic report (Continued)**
This year we asked our customers three simple questions in our resident and relative survey: what should we start doing, stop doing and keep doing? The feedback we received in response was detailed, specific and informative and we thank our customers for providing open and rich responses to these questions. We also asked them whether they’d recommend their home as a good place to live. 9.1 out of 10 customers said they were satisified with, likely, or very likely to recommend their home as a good place to live.
## **Making memories and music with support from a local charity**
In February 2023 we welcomed Trustees from The Charity of Thomas Oken and Nicholas Eyffler to Woodside Care Village in Warwick to see the home and hear about the impact of the acoustic monitoring and circadian lighting which they provided grants for when the home was being built.
Following this visit, and to continue their support of the residents who live at the home, the charity kindly donated funds for a Memory Maker minibus which was delivered in November 2023, with residents immediately benefiting from more frequent trips to local shops, attractions and places of interest.
**Clive Mason, Chair of The Charity of Thomas Oken and Nicholas Eyffler, hands over the minibus keys to General Manager Samantha Stuart and WCS Chief Executive, Ed Russell**
The minibus is called the Memory Maker because getting out and about helps people to stay connected to their community, making new memories for them as well as their family members who can go with them on trips to local Warwickshire attractions, cafes, shops and places of interest.
Alongside the minibus, the Trustees of Thomas Oken were also interested to learn more about our work to bring music into our homes as often as possible.
**Community Musician David, right, playing guitar with a resident**
Music is about building relationships, engaging people and seeing them engage with others. It connects and reaches people emotionally, and for family, friends and carers, it provides a way to bond even when speech fails. For people living with dementia, when understanding language and verbal communication becomes harder, music can unlock the brain and people who can no longer speak or follow a conversation can often still sing and even recall lyrics.
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## **Report of the Trustees including the strategic report (Continued)**
A grant from the Trustees of Thomas Oken is now funding additional, dedicated, musician hours at Woodside Care Village for three years, with funds also being donated to purchase a range of percussion instruments for use by residents in group activities.
## 3. Differentiating our village and residential offerings
WCS Care is one brand, but within that we’ve developed two services; our new build, ‘ _village_ ’, homes and our purpose-built 1960s ‘ _residential_ ’ care homes. Through the development of our village concept which has progressed with each new build, we’ve successfully created the fundamental design principles of future WCS homes. Whilst this design will underpin all new builds, we can’t deliver new builds at each of our locations straight away, and yet we must provide the people who are living with us today with the best experience we can. We have therefore taken key design and concept principles from our villages and implemented these where possible across the rest of the group, lifting the quality of our accommodation, but maintaining a differential between the two services.
Having these different offerings means we have something to offer to, and appeal to, a broader customer base meeting people’s care needs and financial situation. Customers who connect with the charity and want to live with us are therefore more able to find the right home for them within the group rather than going elsewhere.
Following a learning visit to the US where we experienced a similar approach we introduced our first Trusted Advisor in 2020 to oversee enquiries at the village homes, offering a smooth and supported customer journey from first enquiry to admission. This year, we introduced a second Trusted Advisor. This pivotal role takes a longer-term point of view to enquires, creating relationships with customers that go beyond the transactional process so that customers can be confident they’re making the right decision for themselves or their loved ones when choosing a care home. This additional role has immediately proven itself, with bed occupancy improving by approximately 25 beds.
## 4. Continuing to offer a range of options for customers, including those who are socially funded
We’re proud that approximately 450 socially funded care home residents 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. And we’re also proud that visitors cannot identify socially funded customers by the home or room they live in.
Linking to our village and residential home services as described above, WCS Care is able to offer customers a range of facilities, which are priced accordingly, making access to quality care more affordable to a wider range of people. For those who do not need, or want an ensuite, they can choose a room without this. Or they can choose to pay a bit more for a room with an ensuite toilet, or, where available, an ensuite wetroom.
As we continue our refurbishment programme across the group, we’re investing in additional wetrooms where conversions are possible, providing customers with more choice within a setting so people can choose their room based on facilities and/or price.
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WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
5. Refurbishing older buildings and planning new developments Throughout the year, we’ve continued our strategic work to refurbish our older homes, bringing the lifestyle themes that were first introduced at Woodside Care Village to our older homes and remaining village homes.
Our three lifestyles, country, town and classical, developed after our visits to De Hogeweyk in The Netherlands, link to people’s past lives and interests. We know that if people, particularly those living with dementia, live in an environment that feels familiar it can reduce anxiety and associated behaviours, and we’ve seen the impact of these changes with residents who were previously unsettled feeling more relaxed in their redecorated spaces.
**----- Start of picture text -----**
Refurbished lounge in the country lifestyle at Dewar Close
**----- End of picture text -----**
Making the most of the spaces inbetween, we’ve brought
the corridors to life with conversation pieces that focus on local industry as well as hobbies and pastimes.
But we’ve not just limited ourselves to the décor, and have also opened up lounge spaces by removing walls, making them more inviting and accessible, and have replaced high windows that residents couldn’t see out of with floor-to-ceiling windows giving residents views over, and connection to, their local community.
**----- Start of picture text -----**
A relative describes the difference the
corridor decoration has made to her family
https://youtu.be/zTTQXwkwJjw
**----- End of picture text -----**
At Dewar Close work started in early 2024 on their new entrance, reception and café which will create a bright, public destination in the home for residents and family members away from the more private lounges.
Elsewhere we’ve finalised plans for a new café at Drayton Court, and the refurbishment of the Limes which will include a new café and hair salon. These important communal spaces will provide the opportunity for different social interactions and community engagement.
**----- Start of picture text -----**
Refurbished wetroom at Dewar Close
**----- End of picture text -----**
Sluice and communal shower and bathroom improvements have continued with all sluice upgrades completed, and three shower rooms converted into welcoming wetrooms.
Alongside this work, we’ve started a project to cover up the unattractive Georgian safety glass in our older buildings, completing window dressings at Attleborough Grange, Sycamores and Dewar Close.
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## **Report of the Trustees including the strategic report (Continued)**
Feedback from residents, relatives and staff has been incredibly positive about the refurbishments and enhancements that we’ve made across the homes.
## 6. Developing future design based on the village concept
At the beginning of this five-year strategy we opened Woodside Care Village, the culmination of our vision to deliver a community-based care home design. Our design has delivered everything we had hoped for with residents living a life that feels familiar, visiting the shop, café and cinema, spending time outdoors, and getting involved in the daily tasks that we all take for granted every day. And it also proved to have unintended benefits throughout the pandemic with the small households being able to independently bubble.
Building on this success we’re committed to bringing the village way of life to more care home residents. However, we can also use the small household principle to extend some of our current properties, enhancing the choice of residents at these homes.
As such, we have now selected our contractor for the new care cottage development at Fairfield in Bedworth. Work is expected to start on site in August 2024, with customers moving in in Spring 2025. The cottage will feature 10 ensuite bedrooms with their own kitchen, dining and living area.
The cottage and the main home will benefit from acoustic night-time monitoring, circadian lighting, and a new café and launderette. We’re also going to put a clear canopy on the home’s inner courtyard, transforming the space into a Mediterranean style indoor/outdoor plaza with café seating, fountain and outdoor chessboard.
## **Human centric lighting**
Circadian lighting will be fitted as standard into all of our new developments, however getting it into our 1960s properties is not as easy. Over the last year we’ve moved forwards with our work to find a solution that will enable us to bring the health and wellbeing benefits of this lighting to residents across the group. Because circadian lighting is more commonplace in offices and schools, the light fittings that are currently available are not suitable for a domestic setting like a care home. Developing a fitting with this domestic feel which delivers the right lux levels to achieve circadian entrainment has been a key objective to the success of this project.
In January 2024 we retrofitted one room at the Sycamores in Leamington Spa with a new, purpose-made light fitting which meets our requirements for both its aesthetic and lighting output. Powered by a kinetic light switch, which requires no wiring, the fitting takes less than an hour to retrofit using existing wiring which removes any disruption to residents. Once installed the lights need no ongoing maintenance or software updates having been programmed to follow a predetermined day/night cycle. This new fitting is working effectively and we aim to complete a whole home retrofit in the coming year.
https://youtu.be/ZX2xpsSGrqE
Circadian lighting imitates nature’s 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. 1 in 5 people with Alzheimer’s disease experience sundowning syndrome, sometimes
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## **Report of the Trustees including the strategic report (Continued)**
called late-day confusion, but it can also happen generally to older people. 1 in 15 people in the UK suffer from Seasonal Affective Disorder (known as SAD syndrome) 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 little as 10 to 15 minutes a day, can help to reduce or stop these symptoms.
During the day, circadian rhythm lighting replaces the sun indoors, and at night stops you being exposed to inappropriate blue/white light which can delay or disturb sleep patterns.
We installed circadian lighting into our latest home, Woodside Care Village in Warwick, and having seen the positive impacts it has for residents in this home and at Drovers House in Rugby where it’s installed in communal areas and on one household, we’re keen to bring its health and wellbeing benefits to residents across the group.
## **Oxford University circadian lighting PhD**
We know circadian lighting has significant health and wellbeing impacts for residents, but published findings and research are limited, meaning this standard of lighting isn’t widely adopted in the sector.
Our PhD study with Oxford University has now received ethics approval and we are progressing plans for initial observational benchmarking work to be completed by our PhD student to enable pre and post install comparative analysis.
This three-year study will compare traditional care home lighting and circadian lighting to assess the health and wellbeing impacts for residents.
## 7. Reviewing assets for reinvestment into our homes and people
Our strong operation quality and governance, have enabled us to invest in the largest refurbishment of the homes for over 25 years, continuing our commitment to the communities these homes are placed in. But we know we’re only as good as our last act of care and investing in our people underpins the quality of our care and the experience of our customers.
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## **Report of the Trustees including the strategic report (Continued)**
## **Elevating the role of caregiving**
Building on the successful introduction of the mobile rota app, BookJane, which gives carers a lot more control over how often they work and how much they earn, and our new Mobile Carer role, which have between them reduced agency use to 1.8% across the group, we’ve continued our campaign to elevate the role of caregiving, celebrating the long service of team members across the organisation.
**Lyn was recognised for her 47 years of service**
At the end of 2023 we recognised 112 staff, presenting them with long service certificates. Between these staff we celebrated over 1,000 years of service to WCS Care with the longest serving team member receiving a special gold badge for her 47 years of service.
## **Staff pay and development**
WCS continues to pay staff above the National Living Wage and
invest in the development of our team members. Our in-house Management College supported eight people to complete their Level 5 Diploma in Leadership and Management for Adult Social Care, and three to complete their Level 3 Diploma in Management during the year.
Following the success of our management college approach, we established a sister Care College in December 2023, to be able to further support team members at any level within the organisation to complete their Level 2 and 3 apprenticeship qualifications in Adult Care and Lead Adult Care. To deliver this initiative, we recruited four, internal, Care College Assessors, who are now supporting up to eight staff each with their qualifications.
## **Staff wellbeing - The Potting Shed**
Introduced in 2020, The Potting Shed is run by a team of staff volunteers who give their time to arrange events for staff and support them with their health and wellbeing.
This year the team have focused on providing one-to-one support for team where the seeds of Rindness grow members who need a listening ear, enhancing their skills to support and signpost team members to additional resources through Mental Health First Aid training. Linked to this is access to our employee assistance programme, provided by Health Assured, for free, confidential advice and support.
## **Environmental considerations**
This year we’ve focused on understanding our pathway to achieving the UK’s commitment to deliver Net Zero by 2050. As a charity we will aim to limit, and where possible stop, unnecessary harm to the environment, being, environmentally, the best we can be. We will embody sustainability in the same way that we embody our other values.
By targeting net zero now, reducing emissions, transitioning to renewable energy sources, and investing in nature-based solutions, WCS will align with our customer needs and expectations, positioning ourselves to benefit from the long-term effects of social and environmental issues.
Annual report and financial statements, year ended 31 March 2024
15
WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
## We’ll:
- attract and retain talent
- grow profits
- future-proof the business
- increase cost savings
- gain competitive advantage
As part of our preparation this year, we’ve added ISO 14001 to our suite of accreditations which already includes ISO 45001, demonstrating our compliance with health and safety at work, and ISO 9001 for our quality management system which demonstrates our ability to meet customer and regulatory requirements.
14001 is an internationally agreed standard that sets out the requirements for an environmental management system. It helps us to improve our environmental performance through more efficient use of resources and reduction of waste.
We are proud of our internationally recognised accreditations which are important because they recognise our good governance and give external bodies such as regulators and commissioners assurance via a third party.
And in December 2023, WCS’s Environmental Group, a sub-group of Trustees and members of the Executive Team, presented a proposal to the Board for the development of WCS’s Environmental Strategy, including wider Environmental, Social and Governance (ESG) issues.
The charity’s aim is to align environmental objectives and targets with our strategic business objectives to enhance overall outcomes. As a first step to achieving this ambition, the charity has commissioned consultants to support with the benchmarking of the WCS’s current environmental impact, which will help to then set and establish a pathway to the delivery of our overall environmental objectives.
But as always we’re moving forward at pace and taking action where we can. In March 2024, Woodside Care Village became the first home in the group to have solar panels installed. We estimate the panels will generate 45-50% of the home’s overall electricity needs, with a payback period of just 6 years.
Annual report and financial statements, year ended 31 March 2024
16
WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
## **Financial review**
## **Taxation status**
As a charity, WCS Care Group Limited is exempt from corporation tax on its charitable activities.
## **Insurance of directors and trustees**
The charity maintains insurance for the directors and trustees of WCS Care Group Limited in respect of their duties for the organisation.
## **Reserves policy and going concern**
It is the policy of the charity to target free reserves at a level which will support the operations of the business in the event that some of the homes encounter trading difficulties during the year. The Board has agreed to set aside £4m for this eventuality. Reserves are also held to provide funds for the future development of its property portfolio, continual improvement of services and growth within the charity. The reserves policy is reviewed on an annual basis.
At the year end, free reserves available to the Charity are represented by unrestricted reserves of £24.0m, less fixed assets of £29.5m, plus debt used to finance assets of £13.9m, which equals £8.4m (2023: £8.0m). The free reserves over £4m are planned to be invested in maintenance of existing care homes and the development of new care services over the coming years, as explained throughout in the report.
The directors have considered it appropriate to adopt the going concern basis of accounting in preparing the financial statements. The trustees are of the view that adequate resources are available to the organisation to continue to operate as a going concern over the foreseeable future from the date of approval of the financial statements.
The Charity has revisited its going concern assessment during 2023-24. It has reviewed the reworked cash flows up to March 2030 including scenario planning for another Care Village in 2026/27 with a lower occupancy fill up in admissions. The results show that there is some adverse impact, however this has no material impact on the financial viability of the charity in the foreseeable future.
Post Covid-19, we have seen the care home 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 has shown to be resilient and able to operate and provide good levels of care in very challenging of circumstances.
## **Statement of disclosure of information to auditor**
The directors at the time when the Report of the Trustees was approved confirm that:
- so far as 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 charity’s auditor in connection with preparing their report and to establish that the charity’s auditor is aware of that information.
Annual report and financial statements, year ended 31 March 2024
17
WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
## **Strengthening the financial position**
The charity has made surpluses in the year, building on the reserves generated in previous years and will be investing these reserves back into upgrading and expanding care services across the charity’s homes in Warwickshire.
## **Financial results**
The Charity generated an overall surplus of £1.8m (2023: £0.9m) in the financial year ended 31 March 2024. This year’s financial performance has had a positive impact on the Charity’s balance sheet, shows net assets of £24.0m (2023 - £22.2m). More information on the application of reserves is provided on page 17. Whilst substantial net assets are not the prime business objective, a strong balance sheet is important in providing the resources to support the Charity’s 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 service users.
The Parent Charity, WCS Care, saw overall income increase by 13%, mainly due to the annual inflationary increase, better average fees 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 with maintaining a tight control over operating and administrative expenditure whilst still recognising the need to undertake major maintenance works at some homes so that the high level of service to our service users is maintained.
Care payroll costs increased by 9.7% in April 2023 due to the National Minimum Wage legislation. With the introduction of the in-house mobile workforce, this has led to a reduction in the use of external agency staff across all homes, generating a net saving of £400k compared to the previous year.
There were no additional Government grants for infection control received during the year (2023: £0 - nil).
The cost of all refurbishment and capital works has been depreciated since the completion of each individual scheme. The Charity has undertaken a programme of refurbishment works at all its older Homes. Depreciation costs have increased this year to £1,701k (2023 - £1,463k) due to the newer village homes and refurbishment works. Further information on depreciation costs can be found in note 8 to the Financial Statements.
The expenditure on property refurbishment and maintenance continues to be a priority for the charity spending £2,029,000 (2023 - £1,250,000). Smaller items of furnishings and equipment purchased by the Homes which, in accordance with the Charity’s accounting policies has not been capitalised, was £49,000 (2023 - £81,000). 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 increases were experienced in care and management staff, through the deployment of additional resources in care, pension contributions and Head Office support services, social activities for residents, residential expenses and professional services.
Annual report and financial statements, year ended 31 March 2024
18
WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
Although the charity operates on a ‘not-for-profit’ basis, the financial future of the business can only be secured through the delivery of an efficient and effective service that provides operating surpluses to finance even higher standards and future developments. The Charity is required to generate sufficient surpluses 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 significant financial pressures remain and these include:
## **i) Staffing costs**
Over many years now the real cost of employing direct care staff in our residential homes has been increasing by significantly more than the rate of inflation. The increase in cost has resulted from meeting the needs of ever frailer residents, specific requirements to meet Dementia Care standards, enhancing service quality in areas such as social activities and laundry. Changes in legislation due to increases in the National Living Wage (9.7% from April 2023) and the continuing professionalisation of the workforce together with the cost of living pressures continues to maintain the upwards pressure on staffing costs. The annual direct care staffing expenditure increased year-on-year by £843,000 (2023: £1,323,000). The introduction of the internal mobile workforce mitigated against external agency costs.
It has been essential for pay awards to be kept in line with the care sector, other than to recognise the increase in the National Minimum Wage (NMW) each year. To ensure that the charity retained and recruited staff in a competitive employment market an additional 30 pence per hour has been maintained for all care staff above the NMW.
The Charity sees care sector inflationary pressures continuing in 2024-25 and therefore pressure on the organisation to generate the income is essential to meet its major costs.
## **ii) Property maintenance costs, ICT and environment expenditure**
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 supporting electronic care planning and acoustic nighttime monitoring within the homes. There is also an ongoing programme to purchase new furniture, flooring and curtains as well as redecoration of the bedrooms.
## **iii) Other costs**
Personal protective equipment items, such as gloves, masks, aprons are no-longer provided by the Government and the Charity spent £89,000 of its own funds this year. (2023: £77,000, provided by the government).
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 higher input costs across most industries, leading to higher prices. Expenditure on gas and electricity more than doubled from two years ago and have remain at that level during this financial year at £1,180,000 (2023: £985,000). Other costs including food, property maintenance, waste disposal, insurance increased between 8% and 25%.
Annual report and financial statements, year ended 31 March 2024
19
WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
Brexit uncertainties have added further cost pressures in the areas of food supplies and energy 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 effects of staffing movement at the minimum wage level could see staff shortages in the care sector as a whole.
In seeking to meet the increasing operational costs faced by the charity, the business strategy is geared towards improving 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 means 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 ensuring that places are available for public benefit throughout Warwickshire.
WCC support prices rose in line with CPI inflation in 2023/24, however, this did not entirely cover the price rises resulting 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 future position as the leading independent care provider in Warwickshire, directors are committed to the generation of higher operating surpluses with the aim being to continue to strengthen the charity’s Balance Sheet and to invest in front line care services and new residential care homes.
On the basis that WCC support fee rates in line with the cost of care expectations and National Living Wage increases, directors remain confident the charity will be able to maintain block contract places and develop its core services, as envisaged in the Business Plan.
## **Plans for future periods**
The strategy adopted focuses on ensuring the Charity has the capacity and capability to develop and deliver future-proofed care services. This strategy is predicated on a programme of ensuring sustainability 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 based on a mix of sustainability of existing homes and expansion, redevelopment and new build extensions.
## **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 Warwick opened in November 2019 with 72 beds. All three 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 care village in the future.
Annual report and financial statements, year ended 31 March 2024
20
WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
## **Principal risks and uncertainties**
General risk management
On a continuous basis, specific risks are identified and rated high, medium or low in a matrix format. Controls are then designed to minimise or mitigate the risk through quality measures, indicating action required and by whom. The Business Risk Assessment forms an integral part of our board meetings.
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 organisational risks on a bimonthly basis and these are assessed for their likelihood and potential impact on the charity. Action is taken to mitigate any significant risks 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 mitigated to an acceptable level in its day-to-day operations.
Care service failures, ability to recruit and retain staff, WCC block contract fees not keeping pace with inflation, price rise due to higher energy costs and general inflation, the threat from competitors and higher wage costs due to statutory National Living Wage increases are the most significant risks faced by the charity.
For all of the risks above, the Charity has strong mitigations and monitoring 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 interest rate risk. The charity has in place a risk management programme that seeks to limit any adverse effects on the financial performance of the charity by fixing majority of its’ loans to avoid interest rate fluctuations.
The charity does not use derivative financial instruments to manage interest rate risks and as such, no hedge accounting is applied.
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.
Annual report and financial statements, year ended 31 March 2024
21
WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
## **Energy and emissions report**
The following table summarises WCS Care’s reporting requirements under the Government’s Streamlined Energy and Carbon Reporting (SECR).
|||**2024**||**2023**|
|---|---|---|---|---|
||||||
|UK energy use (1) kWh|**7,737,915**||**7,324,798**||
|Associated Greenhouse gas
emissions (2) Tonnes CO2
equivalent|**1,465.42**||**1,386**||
|Intensity ratio (3) Tonnes CO2
equivalent emissionsper FTE|**2.25**||**2.61**||
- (1) UK energy use (Kwh) is relation to Gas, Electricity and car fuel used by the company.
- (2) The associated Greenhouse gas emissions tonnes CO2 equivalent has been calculated using the Government’s conversion factors for reporting and HM Environmental reporting guidelines.
- (3) The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full time employee (FTE).
## **Energy efficiency measures**
WCS Care have commissioned the latest ESOS audit in 2023, however the works are still on-going 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 50002 and the British Standards Institution energy audits requirements. The Summary findings recommended to replace high energy lighting with LED equivalent. WCS has replaced florescent lights in two additional Home’s receptions and corridors and where existing florescent lights fail these are upgraded to LED as a matter of course.
In 2024-25, we are taking forward in relation to our Asset Management Strategy, mechanisms to monitor and improve our energy consumption and carbon footprint where it is feasible to do so. In March 2024, the charity installed solar panels at Woodside Care Village, where it is generating 40% of its electricity consumption.
## **Related parties**
The organisation has one wholly owned subsidiary, which was active during the year: Common Lane Developments Limited (CLDL). During the year, CLDL has been progressing a project at Fairfield Care home to develop a 10 bed care cottage and agreeing planning for a new care village in Nuneaton at Attleborough Grange.
## **Significant contracts**
The charity has a care contract with Warwickshire County Council (WCC) which has 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 placements to private individuals or other public authorities.
Annual report and financial statements, year ended 31 March 2024
22
WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
## **Key performance indicators**
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 standards 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 services WCS offers.
Fees charged to service users are commensurate with maintaining the financial viability of the organisation.
## **Statement of Directors' responsibilities**
The directors are responsible for preparing the report of the trustees incorporating the strategic report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year 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 financial statements unless they are satisfied that they 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, including the income and expenditure, of the group and charity for the year. In preparing those financial statements the directors are required to:
- select suitable accounting policies and then apply them consistently
- make judgments and accounting estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 2006. 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 statements, year ended 31 March 2024
23
WCS Care Group Limited
## **Report of the Trustees including the strategic report (Continued)**
## **People management**
An extensive programme of training on organisational values and aspirations 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 promotes strong culture, leadership and innovation at all levels of WCS Care and individual homes.
Staff turnover decreased to 17.5% during the year (2023 - 24%) exceeding our internal target of 20%. A combination of factors has contributed to the reduction in turnover which include rolling out of electronic rota management system which provides greater flexibility in choosing shifts, investment in pay during the year and enhanced staff well-being programmes.
WCS has in place Conditions of Service which comply with legislation, are flexible, support the organisation’s values and objectives, and which promote employee satisfaction. They include:
- full and fair consideration of applications for employment made by disabled persons, having regard to their particular aptitudes and abilities
- continuing the employment of, and arranging training for, employees who have become disabled persons while employed
- the training, career development and promotion of disabled persons
Staff salaries (including KMP) are benchmarked against similar organisations, recruitment guidance and 3[rd] parties’ advice is also taken to ensure that they are reasonable and in line with the sector.
Our care homes experienced a sickness rate of 6.4% among our staff (2023: 6.6%), internal target for sickness is 5.5%. The fall can be attributed to a number of initiatives to improve the health and wellbeing of our staff. These include offering free flu vaccinations, promoting a healthy work-life balance, and providing support for mental health. Despite the sickness rate, we have ensured that the quality of care provided to our residents remained unaffected, by deploying mobile care staff and adjusting shift patterns where necessary.
## **Approval of the report of the trustees and the strategic report**
The Report of the trustees incorporating the strategic report has been approved by the Board of Directors and is signed on behalf of the board by:
A F Levett - Chairman 8[th] July 2024
Annual report and financial statements, year ended 31 March 2024
24
WCS Care Group Limited
## **Independent auditor’s report to the members of WCS Care Group Limited**
## **Opinion**
We have audited the financial statements of WCS Care Group Limited (‘the charitable company’) and its subsidiary (‘the group’) for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, Group Balance Sheet, Company Balance Sheet, Statement of Consolidated Cash Flow and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 March 2024 and of the group’s income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions related to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Annual report and financial statements, year ended 31 March 2024
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WCS Care Group Limited
## **Independent auditor’s report to the members of WCS Care Group Limited (continued)**
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit:
- the information given in the Trustees’ report, which includes the Directors’ report and the Strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic report and the Directors’ report included within the Trustees’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors’ report included within the Trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the Trustees’ responsibilities statement set out on page 23, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Annual report and financial statements, year ended 31 March 2024
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WCS Care Group Limited
**Independent auditor’s report to the members of WCS Care Group Limited (continued)**
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context were the CQC Regulations, General Data Protection Regulations and Employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be with the completeness and accuracy of resident fee incomer and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, designing audit procedures over resident fee income, sample testing on the posting
Annual report and financial statements, year ended 31 March 2024
27
## WCS Care Group Limited
**Independent auditor’s report to the members of WCS Care Group Limited (continued)**
of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body for our audit work, for this report, or for the opinions we have formed.
Kerry Brown Senior Statutory Auditor For and on behalf of **Crowe U.K. LLP** Statutory Auditor Black Country House Rounds Green Road Oldbury B69 2DG
Date
Annual report and financial statements, year ended 31 March 2024
28
WCS Care Group Limited
**Consolidated statement of financial activities (including income and expenditure account) for the year ended 31 March 2024**
|Notes
**Income**
Income from Charitable Activities
Provision of care services
2
Donations
2
Investment income
4
**Total Income**
**Expenditure**
Charitable expenditure:
Care operating expenses
6
**Total charitable expenditure**
Interest payable
5
**Total Expenditure**
**Net income before other recognised gains**
**and losses**
**Net income and net movement in funds for**
**the year**
**Reconciliation of funds**
**Fund balances brought forward at 1 April**
17
Net movement
Transfer between funds
**Fund balances carried forward at 31 March**
17|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**
**2024**
Total
funds
2023
**£000**
**£000**
**£000**
£000
29,532
-
29,532
26,135
27
53
80
77
254
-
254
100|
|---|---|
||29,813
53
29,866
26,312|
||27,336
6
27,342
24,844|
||27,336
6
27,342
24,844|
||730
-
730
588|
||28,066
6
28,072
25,432|
||1,747
47
1,794
880
1,747
47
1,794
880|
||22,237
-
22,237
21,357
1,747
47
1,794
880
45
(45)
-
-|
||24,029
2
24,031
22,237|
The notes on pages 32 to 46 form part of these financial statements.
Annual report and financial statements, year ended 31 March 2024
29
WCS Care Group Limited
## **Balance sheet as at 31 March 2024**
|||Group|Group|Company|Company|
|---|---|---|---|---|---|
||Notes|||||
|||**2024**|2023|**2024**|2023|
|||**£000**|£000|**£000**|£000|
|**Fixed Assets**||||||
|Tangible Assets|8|**29,519**|28,955|**29,291**|28,892|
|Investments|9|-|-|-|-|
|||**29,519**|28,955|**29,291**|28,892|
|**Current Assets**||||||
|Debtors|10|**1,635**|1,478|**1,894**|1,564|
|Cash at bank and in hand||**9,225**|8,731|**9,204**|8,729|
|||**10,860**|10,209|**11,098**|10,293|
|Creditors: amounts falling due within||||||
|one year|11|**(3,158)**|(4,875)|**(3,137)**|(4,870)|
|**Net current assets**||**7,702**|5,334|**7,961**|5,423|
|Total assets less current liabilities||**37,221**|34,289|**37,252**|34,315|
|Creditors: amounts falling due after||||||
|more than one year|12|**(13,190)**|(12,052)|**(13,190)**|(12,052)|
|||||||
|**Net assets**||**24,031**|**22,237**|**24,062**|22,263|
|**Funds**||||||
|Unrestricted fund|17|**24,029**|**22,237**|**24,060**|22,263|
|Restricted fund|15|**2**|**-**|**2**|-|
|**Total funds**||**24,031**|**22,237**|**24,062**|22,263|
Company Number: 02713150 Charity only results for the year are £1,799k (2023 £881k).
The financial statements on pages 29 to 46 were approved and authorised for issue by the board of directors on 8th July 2024 and were signed on its behalf by:
A F Levett - Chair
Annual report and financial statements, year ended 31 March 2024
30
WCS Care Group Limited
**Statement of Consolidated Cash flow for the year ending 31 March 2024**
|Notes
**Cash provided by operating activities**
18
**Cash flows from investing activities**
Interest income
Purchase of tangible fixed assets
**Cash used in investing activities**
**Cash flows from financing activities**
Cash outflow from repayment of borrowings
Cash inflows from new borrowings
Interest payable
**Cash used in financing activities**
Increase in cash and cash equivalents in the year
19
Cash and cash equivalents at the beginning of the year
**Total Cash and cash equivalents at the end of the**
**year**
**Cash and cash equivalents**
Cash and bank and in hand
**Cash and cash equivalents**|**2024**
2023
**£000**
£000
**3,958**
3,230|
|---|---|
||**197**
46
**(2,042)**
(1,319)|
||**(1,845)**
(1,273)|
||**(2,698)**
(971)
**1,805**
-
**(725)**
(580)|
||**(1,619)**
(1,551)|
||**493**
406
**8,731**
8,325|
||**9,225**
8,731|
||**9,225**
8,731|
||**9,225**
8,731|
Note: All cash and cash equivalents are held in instant access deposit accounts.
Annual report and financial statements, year ended 31 March 2024
31
WCS Care Group Limited
## **Notes to the Financial Statements for the year ended 31 March 2024**
## **1. Accounting policies**
WCS Care Group Limited is a company limited by guarantee, registered in England and Wales with registration number 02713150, and a registered charity, number 1012788. The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Charities SORP (FRS102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102),the Charities Act 2011 and the Companies Act 2006.
## **Basis of Preparation and Going Concern**
The financial statements have been prepared on a going concern basis.
Given the strength of the balance sheet and availability of cash, the members of the Board believe that, while uncertainty exists, this does not pose a material uncertainty that would cast doubt on the group’s ability to continue as a going concern. The Board, therefore, consider it appropriate for the accounts to be prepared on a going concern basis.
## **Basis of consolidation**
The consolidated statement of financial activities, income and expenditure account, cash flow statement and balance sheet include the financial statements of the charity and its subsidiary undertaking made up to 31 March 2024 on a line-by-line basis. Intra-group sales and surpluses are eliminated fully on consolidation. Uniform accounting policies are applied across the whole group.
The charity has also taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirements to present a charity only Statement of Cash Flows and certain disclosures about the charity’s financial instruments within the consolidated financial statements. No separate Statement of Financial Activities (“SOFA”) has been prepared for the charity alone as permitted by Section 408 of the Companies Act 2006.
## **Tangible fixed assets**
Property and equipment is stated at cost less accumulated depreciation and impairment charges.
## **Freehold land and buildings**
Freehold land and buildings are capitalised at cost. Freehold land is not depreciated. New freehold buildings are depreciated on a straight-line basis over their estimated useful economic life of 50 years commencing with the completion of the building or its acquisition. Capital expenditure incurred by the charity on refurbishing or improving older freehold properties acquired is capitalised. Depreciation on these properties is provided on a straight-line basis over the expected economic life of the improvements, commencing with the period in which the improvement or refurbishment project is concluded. An average economic life of 25 years is used as a basis.
## **Other tangible fixed assets**
Items costing over £1,500 each are capitalised. The cost of fixed assets comprises their purchase cost, together with any incidental costs of acquisition.
Annual report and financial statements, year ended 31 March 2024
32
WCS Care Group Limited
Depreciation is calculated so as to write off the cost of tangible fixed assets less their estimated residual values, on a straight-line basis over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are:
**%** Equipment, fixtures and fittings 20 – 33% Motor vehicles 20%
## **Leases**
Rentals paid under operating leases are charged to the income and expenditure account on a straight-line basis over the lease term. To note, the risks and rewards stay with the lessor.
## **Investments**
Fixed asset investments include investment in subsidiaries which are stated at cost less any impairment.
## **Investment income**
Interest income is accounted for on a receivable basis and is accrued up to the balance sheet date.
## **Income from provision of care services**
Income, which excludes value added tax, represents revenue from residents and local authorities for care services. This revenue is recognised as the services are provided.
## **Legacies**
Legacies are recognised when they are received or, if before receipt, there is sufficient evidence to provide the necessary certainty that the legacy will be received, and the value can be measured with sufficient reliability.
## **Expenditure**
Expenditure in relation to charitable activities is included on an accruals basis, inclusive of any value added tax which cannot be recovered.
## **Support costs**
Support costs include all expenditure not directly attributable to the day-to-day operation of providing care services. Governance costs are included in support costs and include external audit, legal and all costs related to complying with statutory and constitutional requirements.
## **Bad debts**
Specific provision is made for those debts which are not considered recoverable.
## **Government grants**
Revenue grants are credited to the statement of financial activities. The grants are recognised in the income statement in line with meeting the criteria of those grants and the occurrence of qualifying expenditure.
## **Pension costs**
The charity operates its own Stakeholder Pension Scheme and makes contributions based on length of service. The charity has also implemented an Auto Enrolment Scheme making contributions that follow the requirements of the relevant legislation. The cost of contributions is charged to the statement of financial activities as incurred.
Annual report and financial statements, year ended 31 March 2024
33
WCS Care Group Limited
## **Taxation**
Taxation has not been provided on the net income for the year on the grounds that Part 11 of the Corporation Tax Act 2010 applies (tax exemption for charitable companies).
## **Funds structure**
## **Unrestricted funds**
Fund available to the charity to reinvest in the services it provides.
## **Restricted fund**
In the year, the charity did not receive any restricted funds (donations and grants that could only be used for specific purposes)
## **Judgements in applying accounting policies and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements. If, in the future, such estimates and assumptions, which are based on management’s best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and judgements will be modified as appropriate in the year in which the circumstances change.
## **Impairment of debtors**
The group makes an estimate of trade debtors and other debtors. When assessing the impairment of trade debtors and other debtors, management considers factors including ageing profile of debtors and historical experience.
## **Useful economic lives of tangible assets**
The annual depreciation charges for the tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are amended when necessary to reflect current estimates and the physical condition of the assets.
Annual report and financial statements, year ended 31 March 2024
34
WCS Care Group Limited
## **2. Income**
## **Provision of care services**
The total income from charitable activities of £29,866,000 has arisen entirely within the United Kingdom and includes a total of £15,341,000 which was received from WCC under a contract for the provision of care services (2023 £11,041,000). During the year the charity did not receive any gift-inkind PPE in relation infection control. (2023 £77,000).
||||**Total**|Total|
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**funds**|funds|
||**funds**|**funds**|**2024**|2023|
||**£000**|**£000**|**£000**|£000|
|**Income from charitable activities**|**29,532**|**-**|**29,532**|26,135|
|**Other Income**|||||
|Charitable donations|27|-|27|-|
|Grant Income|-|53|53|-|
|Government portal PPE|-|-|-|77|
|**Donations**|-|53|**80**|77|
## **3. Employee information**
The members of the Management Committee, who are directors of the charity, receive no remuneration for their services to the charity but are reimbursed for incidental expenses associated with attendance at committee and other meetings. The total of expenses for travel and subsistence reimbursed in the year related to 2 Trustees, amounting to £193 (2023: £311 for 2 Trustees).
The cost of indemnity insurance for the trustees was £1,400 (2023: £840).
The cost of employing staff during the year was:
||**Group**||**Company**||
|---|---|---|---|---|
||**2024**|2023|**2024**|2023|
||**£000**|£000|**£000**|£000|
|**Staff costs**|||||
|Wages and salaries|**17,601**|16,498|**17,601**|16,498|
|Social security costs|**1,339**|1,025|**1,339**|1,025|
|Pension costs|**433**|363|**433**|363|
|**Total staff costs**|**19,373**|17,886|**19,373**|17,886|
Staff costs include expenditure on agency staff of **£337,000** (2023: £2,519,000). During the year, the charity made redundancy and termination payments amounting to £34,297 (2023: £0 nil) with respect of 3 (2023: 0) individual cases.
Annual report and financial statements, year ended 31 March 2024
35
## WCS Care Group Limited
The average monthly number of persons employed within the charity by business activity was:
|Residential care
Support Services|**2024**
2023
**Number**
Number
**916**
794
**37**
37|
|---|---|
||**953**
831|
The following number of employees received remuneration (excluding pension contributions) falling within the following ranges:
||**2024**|2023|
|---|---|---|
||**Number**|Number|
|£60,001 – £70,000|**0**|**1**|
|£70,001 – £80,000|**1**|**0**|
|£80,001 – £90,000|**2**|**2**|
|£90,001 – £100,000|**0**|**1**|
|£100,001 - £110,000|**2**|**1**|
All of the above 5 (2023: 5) were members of a money purchase scheme for which the employer’s contributions were £69,400 (2023: £62,824).
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 £500,000 (2023: £468,528).
## **4. Investment income**
|Interest receivable on short term
deposits and other bank balances|**Group**
**Company**
**2024**
2023
**2024**
2023
**£000**
£000
**£000**
£000
254
100
254
100|
|---|---|
||254
100
254
100|
Annual report and financial statements, year ended 31 March 2024
36
WCS Care Group Limited
## **5. Interest payable**
|Interest payable on bank loans|**Group**
**Company**
**2024**
2023
**2024**
2023
**£000**
£000
**£000**
£000
730
588
730
588|
|---|---|
||730
588
730
588|
## **6. Charitable expenditure**
Care operating expenses of £27,342 (2023: £24,844k) include the following support charges:
|General office and finance staff
Premises
Training
Marketing
Information and communications technology
Banking and finance charges
Legal and professional
Governance costs|**Group**
**Company**
**2024**
2023
**2024**
2023
**£000**
£000
**£000**
£000
**1,877**
1,637
**1,877**
1,637
**100**
98
**100**
98
**84**
70
**84**
70
**58**
62
**58**
62
**475**
418
**475**
418
**73**
26
**73**
26
**167**
119
**167**
119
**56**
49
**52**
48|
|---|---|
||**2,890**
2,479
**2,886**
2,478|
Annual report and financial statements, year ended 31 March 2024
37
WCS Care Group Limited
## **7. Net income for the year**
|Depreciation charge for the year:
Tangible owned fixed assets
Auditor's remuneration for:
Audit
Other services
Operating lease rentals:
Other leases
Expenditure on furnishings and equipment in
refurbished premises|**Group**
**Company**
**2024**
2023
**2024**
2023
**£000**
£000
**£000**
£000
1,701
1,463
1,701
1,463
33
20
30
19
3
13
3
13
49
81
49
52|
|---|---|
||1,786
1,577
1,783
1,547|
Annual report and financial statements, year ended 31 March 2024
38
WCS Care Group Limited
## **8. Tangible assets**
## **Group**
|**Cost**
At 1 April 2023
Additions
Disposals
At 31 March 2024
**Depreciation**
At 1 April 2023
Charge for the year
Eliminated in respect of disposals
At 31 March 2024
**Net Book Value**
**At 31 March 2024**
At 1 April 2023|**Freehold**
**Land and**
**Buildings**
**£000**
**42,505**
186
(40)
**42,651**
**15,307**
665
(40)
**15,932**
**26,719**
27,199|**Fixtures**
**Fittings**
**and**
**Equipment**
**£000**
**5,472**
2,029
(229)
**7,273**
**3,743**
1,019
(228)
**4,534**
**2,739**
1,728|**Motor**
**Vehicles**
**£000**
**50**
51
-
**101**
**22**
17
-
**39**
**62**
28|**Total**
**£000**
**48,027**|**Total**|
|---|---|---|---|---|---|
|||||||
|||||
2,266
(269)
**50,024**||
|||||
**19,072**||
|||||
1,701
(268)
**20,505**||
|||||
**29,519**||
|||||28,955||
Annual report and financial statements, year ended 31 March 2024
39
WCS Care Group Limited
## **8. Tangible assets**
## **Company**
|**Cost**
At 1 April 2023
Additions
Disposals
At 31 March 2024
**Depreciation**
At 1 April 2023
Charge for the year
Eliminated in respect of disposals
At 31 March 2024
**Net Book Value**
**At 31 March 2024**
At 1 April 2023|**Freehold**
**Land and**
**Buildings**
**£000**
42,442
20
(40)
**42,422**
**15,306**
664
(40)
**15,930**
**26,492**
27,136|**Fixtures**
**Fittings**
**and**
**Equipment**
**£000**
5,472
2,029
(228)
**7,273**
**3,744**
1,019
(228)
**4,535**
**2,738**
1,728|**Motor**
**Vehicles**
**£000**
50
51
-
**101**
**22**
17
-
**39**
**62**
28|**Total**
**£000**
47,964
2,100
(269)
**49,795**
**19,072**
1,700
(268)
**20,504**
**29,291**
28,892|
|---|---|---|---|---|
||||||
The net book value at 31 March 2024 represents fixed assets used entirely for direct charitable purposes.
Annual report and financial statements, year ended 31 March 2024
40
WCS Care Group Limited
## **9. Fixed asset investments**
WCS Care owns 100% of the share capital of the following group company:
## **Company Principal activity**
Common Lane Developments Limited Construction development services Company number: 07582043 Incorporated in England in March 2011
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 profit for the year: £15,500 (2023: loss £1,000). The subsidiary has net assets of £19,000 (2023: net assets of £4,000).
## **10. Debtors**
|Amounts falling due within one year
Trade debtors
Amounts owing from subsidiary undertakings
Taxation recoverable
Prepayments and accrued income|**Group**
**Company**
**2024**
2023
**2024**
2023
**£000**
£000
**£000**
£000
1,232
1,136
1,232
1,136
-
271
61
12
5
-
-
391
337
391
337|
|---|---|
||1,635
1,478
1,894
1,564|
## **11. Creditors: amounts falling due within one year**
|Bank loans
Payments received on account
Trade creditors
Other taxation and social security
Other creditors
Accruals|**Group**
**Company**
**2024**
2023
**2024**
2023
**£000**
£000
**£000**
£000
**705**
2,751
**705**
2,751
**4**
-
**4**
-
**741**
519
**723**
516
**308**
238
**308**
238
**15**
7
**15**
7
**1,385**
1,360
**1,382**
1,358|
|---|---|
||**3,158**
4,875
**3,137**
4,870|
Annual report and financial statements, year ended 31 March 2024
41
WCS Care Group Limited
## **12. Creditors: amounts falling due after more than one year**
|Bank loans
Bank loans are repayable as follows:
In one year or less
Between one and two years
Between two and 5 years
In 5 years or more|**Group**
**Company**
**2024**
2023
**2024**
2023
**£000**
£000
**£000**
£000
13,190
12,052
13,190
12,052
**13,190**
12,052
**13,190**
12,052|
|---|---|
||**Group**
**Company**
**2024**
2023
**2024**
2023
**£000**
£000
**£000**
£000
705
2,751
705
2,751
683
963
683
963
3,048
3,191
3,048
3,191
9,459
7,898
9,459
7,898
**13,895**
14,803
**13,895**
14,803|
The charity has four loan facilities, which are fully drawn, their remaining balances are: (1) £1.8m variable loan to 2049. (2) Fixed loan of £2.6m to 2030. (3) Fixed loan of £4.4m to 2028. (4) £5.1m variable loan to 2043.
On 13 May 2013 the charity entered into a debenture with The Royal Bank of Scotland plc 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 report and financial statements, year ended 31 March 2024
42
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 requirements. This scheme was closed to new entrants in March 2015. Charity contributions range from 3% to 6% dependent on length of service and the level of contribution made by employees, which is flexible and governed by the Stakeholder Pension Scheme rules. On 1 April 2014 the charity implemented an Auto Enrolment Scheme making contributions that follow the requirements 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 £433,000 (2023: £363,000).
## **14. Deferred grants**
There are no deferred grants.
## **15. Restricted funds – Group and Charity**
During the year the charity received £53,000 of restricted funds for a minibus and for the services of a musician at Woodside Care Village (Restricted funds are donations and grants that could only be used for specific purposes).
Analysis of restricted funds movements
|Donations|Fund
Balance
brought
forward
Incoming
resources Expenditure
Transfer
between
funds
Fund
balance
carried
forward
**1 April**
**2023/24**
**2023/24**
**2023/24**
**31 March**
**2023**
**2024**
**£000**
**£000**
**£000**
**£000**
**£000**
-
53
6
(45)
2|
|---|---|
During the year, restricted donations of £45k were received which related to capital expenditure for the purchase of a minibus and musical instruments). These purchases were made in the year and as such, management have deemed the conditions attached to these donations to have been met. As a result of this a transfer has been made from restricted funds to unrestricted funds equal to the value of capital expenditure funded by restricted donations.
## **16. Designated fund**
There are no designated funds.
Annual report and financial statements, year ended 31 March 2024
43
WCS Care Group Limited
## **17. Other charitable fund**
The other charitable funds of the charity are represented by the following balances and movements in the year related to operational surpluses.
|At 1 April
Net income
Movement between funds
**At 31 March**|**Group**
**Company**
**2024**
2023
**2024**
2023
**£000**
£000
**£000**
£000
22,237
21,357
22,263
21,382
1,747
880
1,754
881
45
0
45
0|
|---|---|
||**24,029**
22,237
**24,062**
22,263|
## **18. Reconciliation of changes in resources to net cash inflow from continuing operating activities**
|Net income for the period
Depreciation on tangible fixed assets
Interest receivable
Interest payable
Increase in trade debtors
Increase in prepayments and other debtors
Increase in trade creditors
Increase in accruals and other creditors
**Net cash inflow from continuing operating activities**|**2024**
2023
**£000**
£000
**1,794**
880
**1,701**
1,463
**(197)**
(46)
**726**
580
**530**
(519)
**(56)**
(161)
**(2)**
51
**(538)**
982|
|---|---|
||**3,958**
3,230|
Annual report and financial statements, year ended 31 March 2024
44
WCS Care Group Limited
## **19. Analysis of changes in net debt**
|Cash at bank
and in hand
Debt due
within 1 year
Debt due after
1 year|**Cash**
**Financing**
**Cash**
**Financing**
**flows**
**charge**
**flows**
**charge**
**1 April**
**2023/24**
**2023/24**
**31**
**March**
1 April
2022/23
2022/23
31
March
**2023**
**2024**
2022
2023
**£000**
**£000**
**£000**
**£000**
£000
£000
£000
£000
**8,731**
**494**
**-**
**9,225**
8,325
406
-
8,731
**(2,751)**
**3,029**
**427**
**(705)**
(960)
1,551
(3,342)
(2,751)
**(12,052)**
**(711)**
**(427)**
**(13,190)**
(14,814)
(580)
3,342
(12,052)|
|---|---|
||**(6,072)**
**2,812**
**0**
**(3,260)**
(7,449)
1,377
-
(6,072)|
## **20. Capital commitments**
A contractor has been selected for an extension at Fairfield care home, as at year-end, no contracts had been entered into forming any legal commitments.
## **21. Financial commitments**
At 31 March 2024 the Group and Company had annual commitments under non-cancellable operating leases as follows:
|Group and company
Expiring within one year
Expiring between two and five years inclusive|**2024**
**2023**
**Land and**
**Buildings**
**Other**
**Land**
**and**
**Buildings**
**Other**
-
**1**
**-**
**11**
-
**-**
**3**|
|---|---|
||**-**
**1**
**-**
**14**|
Annual report and financial statements, year ended 31 March 2024
45
WCS Care Group Limited
## **22. Contingent liabilities**
At 31 March 2024 the Group and Company had no contingent liabilities (2023: £nil).
## **23. Related party transactions**
The organisation has one wholly owned subsidiary which was active during the year, Common Lane Developments Limited (CLDL), registered at Newlands, Whites Row, Kenilworth, CV8 1HW. The charity acquired the entire share capital of CLDL in May 2013 and the company is used to redevelop care homes for WCS Care Group limited. During the year CLDL had 4 work-in-progress developments. In year movement of inter-company balance of £181k. Amount owned by CLDL to WCS Care as at 31 March 2024 is £271k (2023: £91k). There are no other related party transactions.
## **24. Allocation of Net Assets between funds – Current Year**
|Tangible Fixed Assets
Net Current Assets /
(Liabilities)
Long-Term Liabilities (> 1
yr)|**Group**
Unrestricted
Restricted
**Total**
29,520
-
**29,520**
7,699
2
**7,701**
(13,190)
-
**(13,190)**
**24,029**
2
**24,031**|**Company**
Unrestricted
Restricted
**Total**
29,291
-
**29,291**
7,959
2
**7,961**
(13,190)
-
**(13,190)**|
|---|---|---|
|||24,060
-
**24,062**|
## **Allocation of Net Assets between funds – Prior Year**
|Tangible Fixed Assets
Net Current Assets /
(Liabilities)
Long-Term Liabilities (> 1
yr)|**Group**
Unrestricted Restricted
**Total**
28,955
-
**28,955**
5,334
-
**5,334**
(12,052)
-
**(12,052)**
22,237
-
**22,237**|**Company**
Unrestricted
Restricted
**Total**
28,892
-
**28,892**
5,423
-
**5,423**
(12,052)
**(12,052)**|
|---|---|---|
|||22,263
-
**22,263**|
Annual report and financial statements, year ended 31 March 2024
46