2021-03-31-accounts

Care South (Company limited by guarantee) Annual Report and Financial Statements for the year ended 31 March 2021

Company Number: 02565033 Charity Number: 1014697

Care South Annual report for the year ended 31 March 2021 Pages Legal and administrative information Directors, report Strategic report 10-16 Independent audrtors, report 17-20 Consolidated statement of financial aGtivibes (including income and expendrture account) 21 Balance sheets Consolidated statement of cash flt)WS 23 Notes to the financial statements 24-44

Care South Legal and administrative information Dlrectors Executive Team Mrs Felicity Imin DL +.# A$ Chairman (Retired 22 July 2020) Simon Bird MRICS Chief Executive Mr5 Jane Stichbury CBE QPM DL +.# h$ Chairman (from 22 July 2020) Nicholas Fry BA (Hons) MRICS Property Director Mr Christopher Kean FCA +"# A Vice Chairman Simon Jenner BA {Hons) FCA Finance Director & Deputy Chief ExeGutive Mrs Lindsay Ann Ansell $ Martin Ross Director of Care at Home Mr Paul Causton BA (Honsl MA SoSicitor CTA$ Margarèt Searle MCIPD Director of Human Resources and Training Dr Richard Day FRCP FRCPIED} +$ Aaron Whitehead Director of Residential Care Mr Richard Dyson # Mr Richard Groom MBE FCIB +A Penelope Sargeant ACIS Company Secretary {Resigned 31 July 2021) Mr Charles Hunter FRICS +#$ Mr Geoffrey Warde MBE *A Reglst8red Office 39 Commercial Road Poole BH14 OHU + Member of the Audit Committee Member of the Remuneration Committee Independent Auditors Francis Clark LLP Towngate House 2-8 Parkslone Road Poole BH15 2PW

Member of the Property and

Development Committee Member of the Finan￿ Committee Bankors $ Member of the Care Governan Committee Barclays Bank plc 1 Churchill Place London E14 5HP Solicitors Lester Aldridge LLP Russell House Oxford Road Boumemouth BH8 8EK The Royal Bank of Scotland plc 36 St Andrew Square Edinburgh EH2 2YB

Care South Directors, report For the year ended 31 March 2021 The Directors, who are also the Charity's trustees under Charities Law, are pleased to present their report and audited consolidated financial statements for Care South for the year ended 31 March 2021. The Directors, report includes all the information that is required to be included in a trustees, annual report required by the Charities SORP (FRS102). Principal activities and future developments Care South (the 'Company'l is an independenl Company limited by guarantee. It is a not-for- profit organisation and a registered charity governed by its Memorandum and Articles of Association. The main activities and objectives of the Charitable Company are to provide residential care facilities and other community care services in the south of England. The charity registration number is 1014697 and the Company registration number is 2565033. The Group includes the subsidiary companies Beauchamp House Nursing Home Limited and Two Rivers Investments Limtted. Beauchamp House Nursing Home Limited operated a nursing home and close care accommodation in Somerset. It traded as a subsidiary and gift aided its profits to Care South. The subsidiary has traded profitably during the year. Two Rivers Investments Limited operated a nursing home and a residential care home, both in North Devon. It traded as a subsidiary and gift aided its profits lo Care South. The subsidiary has traded profitably during the year. On 31 March 2021, Care South purchased the assets and trade of both subsidiary companies, with all trade relating lo the nursing homes, residential Care home and close care accommodation being transacted within the parent company from 1 April 2021. This streamlines and simplifies the operations of the Group. The consolidated financial statements for 2020-21 represent the results of the Group for the 12 months to 31 March 2021. The principal source of income for the Group is the fees it charges for care services. The beneficiaries of the work of the Group are individuals who are in need of residential or nursing care, rehabilitation, or servi￿$ from care al home. The Group has ontractual arrangements with individuals, local authorities and clinical commissioning groups ICCGSI. The Group responds to the needs of its users by working in partnership with local authorities and CCGS to develop and provide a range of quality care seNices in response to the anticipated need of the population. Care South also conducts customer service sutveys amongst its residents, care at home clients, relatives, health and social care professionals, and the results of these influen the development of the Group. The Group expects these principal activities to continue and further information on future developments is included in the Strategic report. Investment policy The Board reviews its investment policy annually. The current policy is to invest funds in a combination of bank deposit accoLsnts and managed investment portfolios. Bank deposits are to be held in instant access accounts, or for fixed terms of six months or less. It is the Board's policy that no more than one third of cash balan￿S will be deposited with any one of the following major banks at any one time.. Barclays Bank plc, The Royal Bank of Scotland plc, HSBC plc, Natwesl Bank plc and Lloyds Bank plc. It is also current policy that a minimum of £3.Om will be held in bank deposit accounts at any given time.

Care South Directors. report for the year ended 31 March 2021 (continued) Following a strategic review of investment policy, the Board decided to place a proportion of funds into a balanced medium risk investment portfolio, managed by an external investment manager, in order to generate a better rate of return on liquid assets. A sum of £3,000,000 was transferred into the portfolio during the 2018-19 financial year. No further funds were added into the portfolio during the 2020-21 financial year. Post year-end, a further £3,000,000 has been invested in the portfolio. Policy on reserves The Board considers annually the appropriate level of reserves lo be held considering the requirements of the Group, in conjunction with the guidance issued by the Charity Commission. In determining a Reserves Policy, the Board have identified the following core objectives.. The creation of a strong balan￿ sheet position to support the development ofthe Charity and services, along with the improvement of the existing property portrolio and the onstruction or purchase of further residential care homes. The establishment of sufficient reserves to ensure that the Group has appropriate liquidity to build resilience against short term or sudden fluctuations in income or cost levels and can ensure that commitments lo providing services to our clients Can be made with confidence. Taking into consideration these core objectives, Board policy is to target a level of reserves sufficient to fund the fixed asset base held for use within the Group, to the extent that those assets are not funded by bank loans. Additionally, it is Board policy to hold further reserves sufficient lo cover between 4 and 6 months of underlying operating expenditure. As al 31 March 2021, this represents a reserves target of between £47.8m and £54.4m, while the actual level of unrestricted reserves held is £56.4m. Following the strong operating perf0rnan￿ seen during 2020-21, the Gurrent level of reseNes are therefore slightly in excess the targeted range. It is however envisaged that this will be a short term position and that the reserves level will return to the targeted range, as refurbishment and development projects that have been delayed or postponed due to the Covid-19 pandemic are taken forward. Directors The Directors of the Company who were in Offi￿ during the year and up to the date of signing the financial statements are listed on page 1. None of the Directors had a material interest in any contract to which the Company was a party during the year. The Board ensures that its governan￿ is appropriate and effective by appointing Directors who come from a broad base of experience wilh diverse skills and who are conversant with the regulatory requirements of Corporate Governan￿. Five Committees report to the Board - Audit, Remuneration, Propety and Development, Finance and Care Governance. The Board seeks to ensure that.. the Board is represented across the area of its business,. and collectively the Board has particular expertise, with business and community experien relevant to the Charity and its aims.

Care South Directors, report for the year ended 31 March 2021 (continued) New Directors are appointed by recommendation from Directors or outside stakeholders taking account of the skills and knowledge required, and appropriate to the diversity of the Group. New Directors are interviewed by the Chairman and one olher Director prior to appointment by the Board. Every new Director has an induction. New Directors are encouraged to sil on one of the five Committees and lake an active interest in the affairs of the Group which includes visiting the homes and home care offices. Mrs Tiggy Ansell, Mr Richard Day and Mr Richard Dyson are due to retire by rotation at Ihe forthcoming Annual General Meeting. They are eligible to stand for r&election for a further three years. Directors are not offered any remuneration but may be paid all reasonable travelling, hotel and other expenses incurred. Directors, Indemnity Insuran￿, provided by a third party, is in pla￿ to protect the Directors and Officers in respect of negligence, default, breach of duty, or breach of trust of which they may be guilty in relation to their roles as Directors. The cost of the insurance for the year was £2,400 12020.. £2,325). Decision making in the Group The Directors delegate day to day running of th8 Group to the Executive Team. Each member of the Executive Team attends and submits a written report at the Board Meetings. The Board approves annual operating budgets, staff budgets and capital expenditure budgets, and reports are submitted lo Board members updating progress against the budgets at each of their meetings. Employees The Group gives full and fair consideration to application5 for employment made by disabled persons, having regard to their particular aptitudes and abilities. Employees of the Group who become disabled during their employment are given appropriate training wherever possible. Disabled employees are given the same opportunities for career advan￿rnent as any other employee. The Group recognises the importance of good communication and relations with employees and values their contribution to the Group. staff Association All employed staff are members of Care SoLJth's Staff Association. The Association meets at least twice a year and is an effective and constru¢tive means of encouraging open communication and discussion, and Ihe sharing of ideas and opinions amongst staff. Financial and economic factors that affect the performance of the Group are regularly reviewed and disGussed. Staff consultation is the normal way of developing and achieving the Group's objectives. Care South's Staff Association has the aims of.. enabling all staff to PLrt forward and develop constructive proposals and ideas., allowing consultation to take place through elected representatives on matters of 9eneral importance and concern including Health and Safety matters., and involving staff in the aims of the Group, thus increasing effectiveness, job satisfaction and engagement.

Care South Directors, report for the year ended 31 March 2021 (continued) Employee benefits The Company enrols all qualfying staff into a defined benefit pension scheme operated by The Pensions Trust. A small number of staff were previously enrolled in a stakeholder pension scheme operated by Standard Life plc. As a qualifying scheme under pension auto-enrolment Segislation, this scheme remains active for a small number of existing members. Financial risk management- bank loans The Group has in place a risk management programme that seeks to limit the adverse effects of debt service costs on the financial performance of the Group by monitoring levels of debt finance and the related finance cost5. The Directors take overall responsibility for monitorin9 financial risk. The policies set by the Board of Directors are implemented by the Finance Director. In order to ensure stability of cash out flows and manage interest rate risk, the Board reviews what is in the best interests of the Group on each occasion that it enters into a loan agreement. To date, the Group has entered into eight main loan agreements at a mixture of fixed and floating rates. Financial risk management- credit risk The Group credit risk is spread be￿een both private individuals and local authority clients. The highest level of credit risk 0￿UrS when residents are moving between private and loca5 authority funding. This can lead to uncertainty as to who is responsible for payment of fees and delays in payments being received, while the issues of funding responsibility are resolved. Therefore, while local authorty funded residents are in principle a low credit risk, it is ne￿SSary to ensure that contract documentation is robustly managed to mitigate this risk. In respect of privately funded residential clients the Group takes appropriate steps to establish the credit worthiness of customers prior to admission, and they pay a deposit of one month's fees. Financial risk management- price risk The Group financial performance is exposed to the impact of inflation on both staff and non-staff costs. In order to ensure that increasing costs can be recovered, terms ar)d conditions for private clients allow the pricing of services to be reviewed each year. Contracts with local authorities are considered on a case-by-case basis and reviewed to ensure they are financially sustainable for the Group. Financial risk management- liquidity and cash flow risk It is Group policy to maintain a sufficient cash balance at all times in order to ensure liquidity. Investment and expenditure plans are considered prudently in line with the availability of funds. Relationships with related parties The Group has two trading subsidiaries, Beauchamp House Nursing Home Limited and Two Rivers Investments Limlted, and three dormant subsidiaries, which have not traded during the financial year. On 31 March 2021, the assets and trade of the two trading Subsidiaries were purchased by Care South. All trading activity from 1 April 2021 is now conducted wtthin the Care South entity. Post year*nd the three dormant subsidiaries have been struck off.

Care South Directors, report for the year ended 31 March 2021 (continued) Charltablo and taxation status Thè Charity Commissionèr granted charitable status lo th6 Company on 12 October 1992. Charitable activities are exempt from tax under section 505 of the Income and Corporation Taxes Act ("ICTA"11988, and accordingly no corporation tax has been provided for in these financial statements. Profi15 from its subsidiaries Beauchamp House Nursing Home Limited and Two Rivers Investment5 Limited - are gift aided to Care South. The Group does nol engage in fundraising to meet rts tharitable objects'ves. Carbon Eneryy Reporting The table beS¢)w ouuines the energy use by the Group during the 2021>21 financial year. Units 202￿21 Units Carbon Energy Reporting 202(k21 2019-20 Electricity Gas 3,116.521 10,620,845 928,338 14,665,705 727 3.232,547 10,514,974 1,098,593 14.846,114 754 UK Energy Use IKWhl Transport Total Electricity Gas Associated Greenhouse Gases Tonne5 C02e 1,953 254 1,933 301 Tran5POrt Total Electricity Gas 2,934 0.64 2.988 0.67 Intensity Ratio l- Tonnes C02e per FTE Staff member 1.73 1.73 Transport Total 0.23 0.27 2.67 Electricity Ga5 Transport Total 15.22 16.47 Intensity Ratio 2- Tonnes C02e per Million £ Income 42.26 5.33 61.44 6.58 65.31 Enew Efficiency Measures Und8rtak8n During th8 Year During 2020-21, the Group saw a reduction in energy usage from electricity and transport, along wtth a small increase in the use of gas. The increase in the use of gas was due to the conversion of the last heating oil boilers within the Group to run on gas during 2019-20. Therefore while gas consumption increased slightly during the year, this was more than offset by the reduced use of heating oil, which is not captured within this data. All energy intensity ratios demonstrated improvement during the year, with the exception of gas usage per FTE staff member, which remained the same, due to thè S￿tch from heating oil OLrtlined above. The majority of energy usage in rèlation to transport comes from our care at home staff travelling between clients to deliver care in peoples home. This activity continued as normal during the year, however a reduction in other staff travel and in transport of Gare home residents out on activities saw some notable reduction, due to the Covid-19 restrictions in place during the year.

Care South Directors, report for the year ended 31 March 2021 (continued) Due to Covid-19 restrictions Wthin our care homes, planned work to rèplacè old, inefficient boilers and upgrade lighting systems with LED in 2020-21 was not possible. However the installation of modern heating controls at Castle Dene and Dorset House was completed, which should have long temi benefits for energy efficiency. Budgetary provision has been made in 2021-22 for LED lighting upgrades in three of our care homes and replacement boilers al Kenwfth Castle. The boilers al Kenwith Castle will be replaced with A rated condensing boilers which have modulating gas premix burners that automatically adapt to Ihe current heat demand, enabling the heating system to work extremely efficiently even under parts'al load. Methcxlologies Used in Calculating these Disclosures Usage of electricty and gas has ￿en provided by our energy broker from meter dala. The energy usage for electricty and gas for 2019-20 has been upjated from the fuures reported lasi year to correct some small Identif￿ anomalies. Conversion from kwh to C02 has been made using the UK Government GHC conversion factors for company reporting. Energy usage for transport has been derived from mileage data taken from employee expense claims and from MOT mileage data for company owned vans and minibuses. Conversion of mileage into kwh and C02 equivalents has followed the same government reporting guidelines. Covid-19 Our 2020-21 financial year ComMen￿d shortly after the start of the first national lockdown. As a provider of residential care and care at home care Services to extremely vulnerable groups of people, Care South has been al the forefront of the need to support our residents. clients and slaff, safely, responsibly and compassionately through the pandemic. We have been determined from the outsel to take all necessary actions to ensure the safety and wellbeing of our residents, our home care clients and our staff. Throughout the year, Care South has closely monitored and implemented govemment guidan￿ in relation to infection control measures, staff, resident and visitor testing and vacGination programmes. During the pandemic, our primary focus has been in keeping all of our resKlents and clients safe, well-fed and entertained. and our staff welloquipped and prolected so that they can continue to observe the very highest standards of care, cleanliness and infection control throughout our care homes and offices. Very sadly, a number of our residents passed away in this period, some havir tested positive for Covid-19. The greatest finanual impact from the pandemic has been the reduction in occupancy levels, where for signfficant periods during the year, enquiry and new admission rates were very low, following negative publicty for the sector within the national press. Fortunately the Group has been able to mitigate much of the impact with some significant undertying improvements in the efficiency of our staff costs. Agency staff usage was reduced by over 60 /¢ during the year, while Ihe benefrts from the move to an electronic time and attendance system realised further significant efficiencies. While the pandemic itself placed some major upwards pressure on staff costs, central govemment distributed infection control and rapid testing grants to all CQC registered homes across the care sector, which were invaluable to help fund additional costs. The Group deployed additional staff to underpin effective infection control measures, perform Covid-19 testing and support safe visiting, which have been funded by the grants, along with the payment of full wage5 to staff who were self-isolating in line with govemment guidan￿. The Group also made some limtted use of

Care South Directors, report for the year ended 31 March 2021 (continued) the Coronavirus job retention scheme, to fund the pay of staff who could not work due to shielding requirements. Post year-end, we have continued to work hard to restore confidence and promote our services We have subsequently seen enquiry levels return lo much more healthy levels. Occupancy levels have been increasing once again and we have seen continued growth in care at home. While the Covid-19 pandemic has presented many challenges for the Group, both operational and financial, we believe that these issues have been well managed arld that the worst is now over. Our SerVi￿S continue to slowly get back lo nomal, while maintaining all of the enhanced infection Gontrol and safety measure5 that will ensure we keep our residents, care at home clients and our staff Safe. In June 2020 the Charity Commission issued a regulatory alert to lar9e charities w(th a more complex governan￿ and management structure. Subsequently, Care South was randomly selected by the Charity Commission to carry Dut a review of its operations, Structure and overall govemance, its policies and procedures and the impact of Covid-19. The review process was comprehensive and the Charity Commission subsequently CDnfirmed that it had been assured by Care South's responses and overall governance and management. Going Concern Given the past, current and forecast perf0mlan￿ of the Group, the Directors believe that it remains appropriate to prepare the financial statements on a going concem basis. While the Covid-19 pandemic has had a substantial impact on our operations, the need for our care ServI￿S remains strong. Our business therefore has a sound basis upon which to look to the future with confidence. The Group continues to generate both strong positive cash-flow and profit levels and has done so throughout the period of the pandemic. Post year-end, the Group has continued to trade profitably and has been seeing increases in occupancy levels, along with continued growth within Gare at home. Our forecasts and predictions of the Groups performance over the short, medium and long term support the assertion that going cOn￿M continues to be the appropriate basis on which to prepare the financial statements. Statement of Dire¢tors' responsibilities The Directors are responsible for preparsng the Annual Report and the Financial Statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the financial statements in accordance with United Kingdom Generally AC￿pted Accounting Practi￿ {United Kingdom AccDunting Standards, comprising FRS 102 °The Financial Reporting Standard Applicable in the UK and Republic of Ireland. and applicable lawl. 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 the affairs of the Company and the Group and of the incoming resources and application of reSoUr￿s, including the income and expenditure, of the Group for that period. In preparing the financial statements, the Directors are required to.. select suitable accounting policies and then apply them consistently; observe the methods and principals in the Chartties SORP., state whether applicable United Kingdom Accounting Standards, including FRS102 have been followed. subject to any material departures disclosed and explained in the financial statements.,

Care South Directors. report for the year ended 31 March 2021 {continued) make judgements accounting estimates that are reasonable and prudent. and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Cornpany will continue in business. Thè Directors are responsible for keeping adequatè accounting records Ihat are SLrfficient to sh¢)w and explain the Cornpany'5 transaction5 and disclose with reasonable accuracy at any time the financial p051tion of the Company and Ihe Group. and enable thèm to ensure that the financial statement5 ¢omply wth the Companies Act 2006. They are also respjnsible for safeguarding the assets of the Company and the GTOUP and hence for taking reasonable Steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for the maintenance and integrity of the corporate and finanGial infomation included on the Charitable Company's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial staternents may differ from legislation in other jurisdictions. statèment of dlsclosure of information to audltors In the case of eath Director in office at the date the Directors, report is approved.. So far as the Director 15 aware, there is no relevant audit information of which the Charitable Company's auditors are unaware., and They have taken all steps that they ought to have taken to make himselflherself aware of any relevant audrt information and lo establish that the auditors are aware of that infomiation. Independent auditors The independent auditors, PKF Francis Clark, have indicated their willingness to continue in office and a resolution con￿mIng their reappointment will be proposed al the Annual General Meeting. By order of the Board hbury Chairm 29Se ber 2021

Care South 10 Strategic report for the year ended 31 March 2021 The Directors present their strategic report for the year ended 31 March 2021. Financial overrfiew and future developments Group incoming resources increased by 4.4%, compared with the previous year, to £47.8m (2020.. £45.75m). Income from charitable activities declined by £0.1 m (0.40kl overall, reflecting lower oGGupancy levels within residential care and billed hours in care al home, followin9 the impact from the Covid-19 pandemic. This was partially offset by increases in average fee rates. Income from other trading activities declined by £0.1 m, reflecting some reduction in occupancy within the homes operated in the Groups Subsidiaries. Other income increased by £2.2m, the majority of this representing infection control and rapid testing grant income received via local authorities from central government. This income was used to help ensure that robust infection control measures have been maintained across all of our homes and that regular Covid-19 testing Df our workforce and residents has been perfomed in line with government guidance. A donatlDn of £250,000 has been left to Sussexdown by the Estate of Wing Commander Neville W. G. Baker, Deceased and this has been added to restricted funds. This is being used for a number of specrfied purposes that will benefit the current and fLrture residents of the home and for which Care South is most grateful. The Group total expenditure decreased by 2.20/0, reflecting the Sower occupancy level within residential care and a reduction in the usage of agency staff. The Group reported a net income before other recognised gains and losses of £7.6m12020.' £4.7ml. After other recognised gains and losses the Group reported a Net Movement in Funds of £8.4m (2020.. £4.3ml. The surplus for the year has been added to reserves. Group reserves have increased to £56.7m (2020.. £48.3m}. It is the Board's intention to invest significantly in both new and existing services in the short to medium term. The level of reserves held at the end of the year is slightly in excess of the range outlined within the Groups Reserves Policy, but is expected to fall back in line when the planned investments are taken forward. The Group Balance sheet remains strong, with £21.4m held in cash reserves. Purposes and aims In delivering Care South's purposes and aims, the Directors have considered Charity Commission gu￿darnce on public benefit. The Charitable Company has complied with the duty set out in section 17 of the Charities Act 2011 to have due regard lo public benefit guidance published by the Commission. Care South's purpose as set out in the objects contained in the Company'5 Memorandum of Association is to provide residential care facilities and other community care services in the south of England. The Directors review the objectives and strategy each year. They have referred to the Charity Commission's general guidance on public benefit when undertaking this review and when planning future acttvities. The objectives and achievements are considered to incorporate the principal risks and uncertainties of the Group. Care South's main activities are described in this Strategic report. All its charitable activities focus on the provision of residential care facilities and other community care services and are undertaken to further its charitable purposes for the public benefrt.

Care South Strategic report for the year ended 31 March 2021 (continued) Care South's long temi strategy To deliver quality care services which meet all relevant regulations and are rated at least "Good. by CQC, To attract, train, develop and retain engaged staff to deliver quality care services., To expand and develop a range of seNices lo meet the needs primarily of older people, but not excluding other age ranges. To enhance the property portfolio of the charity to provide security for the future., To work with Socal authorities and other commissioners to meet the future need., To remain financially viable and maintain reserves in line with our Reserves Policy,. and To continue the on-going programme of investment in the existing homes. Objectives and achievements for 2020-21 With the onset of the Covid-19 pandemic, the absolute priority for Care South has been to ensure the safety and wellbeing of our residents, clients and staff. We are extremely proud of the extra- ordinary dedication that our staff have shown in protecting our residents, clients and each other. The priority of the Directors and Executive team has been to ensure that we have supported our extra-ordinary frontline staff in continuing to safely deliver care under particularly Ghallenging circumstances. The objectives derived from our long-tem strategy were reviewed and agreed by the Board in November 2020. The table below outlines our objectives for 2020-21 and our assessment of the achievement and success against each of these objectives. Ob'ective deliver quality care services which meet all relevant regulations and are rated at least "Good. by CQC. Achievement The standard of care is continually monitored through internal quality audits and feedback from residentslservice users and relatives with constant focus upon delivering quality care. The Care Governan￿ Committee reviews the results of internal audits and CQC inspections as part of the ongoing commitment lo deliver quality care. The results of CQC inspections for Care South homes and se￿iceS can be found at www.c c.or .uk The Covid-19 pandemic impacted the performan￿ of both intemal audits and CQC inspections durin the ear. The Group continues to invest in training and development of staff, although the delivery and prioritisation of training was impacted by the Covid-19 pandemic during the year. Our priority has been focused on delivering all mandatory training to both existing and new staff, while continuing to invest in improving the quality of our approach to recruitment and trainin The Group has targeted the expansion and development of the care at home offer and delivered significant rates of growth during the year, in spite of the restrictions and measures ne￿SSary to manage the impacts from the Covid-19 pandemic. The Group remains committed to further growth in care at home and in April 2021 acquired new premises in Poundbury, from which a West Dorsel office was launched in June 2021. Expansion and new development took something of a back seat during the year, with the key priority of the Group being to maintain the safet and wellbein of our existin residents, To attract, train, develop and retain engaged staff lo deliver quality care services. To expand and develop a range of services to meet the needs primarily of older people, but not excluding other age ranges. To enhance the property portfolio of the Charity lo rovide securit for the future.

Care South 12 clients and staff. Nevertheless, plans for the development of site in Poole acquired in September 2019 were taken forward, with detailed plans for planning consent submitted lo the local authority. As the worst impacts of the pandemic have passed, the Group have been actively evaluating a number of new site ortunities for further develo ment. The Executive Team continues to have strategic discussions with local authorities and commissioners. The Group worked closely and flexibly with local authority commissioners during the year to support hospital discharge requirements at various pressure points throughout the year, as the Covid-19 pandemic took hold. This included entering into a number of temporary block book bed arrangements within residential care and increased block work within care at home lo support Glients being discharged from hospital back into their own homes. During the year, Group resetves increased by £8.4m, reflecting a strong operating performance from the business. Group unrestricted reserves of £56.4m are slightly in excess the range targeted by the reserves policy, but are expected to return to a level within the targeted range, On￿ projects dela ed b the Covid-19 andemic are taken forward. The Group continues lo invest significantly in existing services, to ensure that the environment and facilities in each of our residential homes are maintained in a good state of repair. The Covid-19 pandemic led lo significant periods during the year, when contractor visits to our homes were limited to essential works only. However the Group has acted quickly to instigate non-essential improvement works On￿ restrictions were lifted, with appropriate risk assessments in place. To work with local authorities and other commissioners to meet the future need. To remain financially viable and hold reserves in line with our reserves policy. To continue the on-going programme of investment in the existing homes. Our objectives for 202112022 remain unchanged. Review of business and developments during the year The Consolidated Statement of Financial Activities for the year is set out on page 21. A review of financial performance during the year and the closing financial position is inclLJded in the Financial overview and future developments section above. Since its formation, Care South has built an ex￿lIent reputation for the provision of high quality care services - recognising the individual needs of its clients, and the importance of training and development of slaff in the delivery of quality care. In recent years, Care South has expanded its range of care Servi￿8, operating across the south of England, from Devon to Wesl Sussex, and embarked on a redevelopment programme for the repla￿ment of some homes, lo include dedicated dementia faciltties. Care SoLrth operates 16 residential care homes, some of which have dedicated dementia units; 3 Gurrently providing nursing care. No home openings or closures took place during the year. The Group also owns the freeholds of 14 close care houses and apartments at Beauchamp House in Somerset,. 11 close care apartments built at Strome Park, Storrington,. 18 close care apartments and cottages at St Ives House, Ringwood., 9 apartments at Alexandra House, Parkslone and 31 close care bungalows at Kenwith Castle Gardens, Devon. At all developments, the properties are either sold on a long leasehold basis, or let on short-term tenancy agreements.

Care South 13 Strategic report for the year ended 31 March 2021 (continued) The Group owns eight care homes.. Talbot View and Wickmeads in Boumemouth, Alexandra House in Poole, St Ives House near Ringwood, Maiden Castle House in Dorchester, Sussexdown in Storrington, West Sussex, Beauchamp House in Halch Beauchamp, Somerset, and Kenwith Castle near Bideford, North Devon. It also owns the head office facility in Poole, and offices in Dorohester and Bath for organising the delivery of home care. Care South leases six care homes.. two from housing associations, Fairiawn in Ferndown, and Buxton House in Weymouth and one home, Fem Brook Lodge, from an investment fund. Two Rivers Investments Limited leases Fremington Manor near Bamstaple from a private company. The Group also lease5 premises in Crewkerne for organising the delivery of home care. Four homes are leased from BCP Council. The Group continues to hold strategic discussions with both BCP Council and Dorset Council with a view to meeting the future needs of the local authority commissioners. The Group also owns the freehold interest of a site in Poole. Plans for the redevelopment of the site are well underway, with a planning application submitted, and it is anticipaled that a new care home will be developed and be ready lo welcome its first residents during the 2022-23 financial year. The Care South Learning & Development team continues to provide an extensive programme of social care training, which includes all mandalory training required by law. In addition, general and management development training opportunities are made available to staff through fa￿ to fa￿ training, distance learning and e-learning. During the year, the delivery of face to face training was constrained by the restrictions required in response to the Covid-19 pandemic, with e learning and remote learning being the focus for mandatory training. Subsidiary company activities and perfonnance Beauchamp House Nursing Home Limited continued to operate a nursing home and close care accommodation throughout 2020-21. For the year to 31 March 2021 it reported a pre tax profit of £0.5m (2020". £0.1ml. Two Rivers Investments Limited continued to operate a nursing home, a residential care home and provided Se￿ICeS to the residents of close care accommodation throughout 2020-21. For the year to 31 March 2021 it reported a pre tax profit of £1.3m {2020'. £1.Om). On 31 March 2021, the assets and trade of both subsidiaries was purchased by Care South. The purchase price was equal to the net assets of each subsidiary company as at the purchase date. All trade within the setvices previously operated by the subsidiary companies has been transacted within Care South from 1 April 2021. The subsidiary companies are therefore no longer trading. By simplifying the trading structure, administrative efficiencies will be realised within the Group.

Care South 14 Strategic report for the year ended 31 March 2021 (continued) Risk management and controls Care South has a formalised system for identifying risks to which the business may be exposed and ensuring that adequate controls are in place to manage risk. The risk register is reviewed on an ongoing basis, lo ensure that actions are always in place to address new and emerging risks. The Board has allocated responsibility to the Executive Team for monitoring and managing these risks and requires regular reporting against the identified risks. The prinGipal risks and uncertainties are identified and recorded in the risk regisler, along with the related controls and actions. The highest risks identified are shown in the table below.. Risk Pandemic or similar e.g. Covid-19 potentially impacting delivery of care, financial and reputational losses. Controls l Miti ation Infection Gontrol policies and procedures. Ongoing referen￿ lo government guidance. Vaccination, testing and harm reduction measures. Clear advice given to staff regarding sickness absence and notification. PPE supplies for minimum 6 months now held. WorkplaTr risk assessments. Ongoing monitoring of impact. Poor economic climate - due lo prevailing economic I political uncertainty I Covid-19 pandemic l Brexit, impacting prorrtability and ability to grow. Budgetary Control, flexibility to alter staffing levels, good reseNes. Weekly oGGupan¢y statistics. Improved marketing. Long-term block purchase contracts. Increased provision of dementia care. Recruitment difficulties reflective of the sector challenge of high turnover, small pool of Gandidates, saturation of adverts, potentially impacting on the delivery of care, Gost levels and the ability to achieve growth. Specialist recruitment team, Glear recruitment and advertising plans, spread in methods of attractions, increased investment, Competitive packages offered to staff. Defects with new propety developments and refurbishments, due to inadequate supervision and scrutiny during build contracts and architectural design defects, leading to additional costs and impact on occupancy l inwme where additional works are needed. Specialist project and development teams focussed on care and the needs of the client, close monitoring of prDjerts, tight ¢ontradual arrangements, building surveyor scrutiny of design work. The Audit Committee 15 charged with the responsibility for ensuring that the organisation has appropriate control systems, and receives recommendations from the auditors arising from issues identified during the audit. The Finance Committee considers the annual budget of the Group (prior to consideration and approval by the Board), and considers changes to financial poliGies where necessary. The Board is responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and any other irregularities that could occur and thereby provide reasonable assuran￿ that: the Group is operating efficiently and effectively., its assets are safeguarded against unauthorised use or disposal.

Care South 15 strategic report for the year ended 31 March 2021 (continued) proper records are maintained and financial infom)ation used within the Group, or for publication, is reliable,. and the Group complies with relevant laws and regulations. In addttion to its responsibilities for identifying and managing risks and approving the annual budget, the Board of Directors receives and considers regular financial reports for the Group, inGluding explanatlDns for variances from budget and other non financial indicators, Including quality of care, health and safety, and those relating to staff and occupancy. Remuneration Policy Care South has a Remuneration Committee which meets annually and determines the ternis and conditions of employment ofthe Chief Executive and members ofthe Senior Management Team. The Chief Executive and Senior Management Team detemiine the salary leve15 for the Extended Management Team and these are approved by the Chairman prior to implementation. In considering salaries, the Committee reviews Care South's salaries against market rates and ensures amendments are appropriate. Section 172 {11 Statement The Board of Directors, both individually and collectively act in good faith and in a way that they would considerwould be most likely to promote the success ofthe Company and its stakeholders. Our key stakeholders include our residents, our home care clients, our employees, our suppliers and the local communities in which we operate. Consideration of the Long Tem? Consequences of DeGisions The consideration of the long term Consequences of decision making is an integral part of the decision making process. As a not-for-profit Charity, the Company is not constrained by short terrn financial targets and bases decisions on the basis of the long term benefits for all of our key stakeholders. The Interests of the Company's Employees Our employees are fundamental to the qualty of the services we are able to offer our residents and our care at home clients. Employing a well trained, motivated and engaged workforce is therefore of paramount importance lo the Company. The Group invests extensively in the learning and development of our workforce and has developed a people plan to ensure that we operate best practice in staff recruitment, retention and engagement. The Care South Staff Association ensures that all sites and services are represented in two way discussions, allowing staff views and ideas to be incorporated in the decision making prO￿ss. In addition, staff sutveys are performed to assess the success of our approach and to develop action plans to invest further in workforce development. Extensive efforts have been made throughout the year to ensure thal our staff have been supported through the Covid-19 pandemic, which has brought Unpre￿dented additional pressures on our dedicated teams Fostering of the Int8r8Sts of the Company's Business Relatiorpships Relationships wth our clients and our supplier5 are critical to the success of the Company. We aim lo deal with our clients and suppliers in an open, honest and transparent way. We understand the importance of a professional and compassionate approach and look to treat all parties in a fair and equitable way, in line with our core values as a Charity. Our residents and service users reflect a mix of local aLrthority commissioned and private fee payer clients. The Company looks to develop and maintain positive working relationships with local authority commissioners and to

Care South 16 Strategic report for the year ended 31 March 2021 (continued) position our services to offèr a high standard of care reflecting good value for money for our private fee payers. ImpaGt on the Gommunity & Environment Vve aim that all of the services operated by the Company are integrated within and enhance the local communities in whiGh they operate. Establishing and nurturing local community links are a key element in Ihe SLIC￿SSful operation of our care homes, as we draw the majority of our residents and staff from those local communities. The Company is mindful of our responsibility to minimise our impact on the environment and our approach to this is outlined on page 6 within our carbon energy reportin9 Statement. Reputation for High Standards of Business Gonduct Honesty, integrity and Iransparency are fundamental to the way in which the Company operates. The success of our services is highly dependent upon maintainir)g high standards of service and building a strong reputation in our local communlties. We aim to treat all of our stakeholders in a fair and equttable way. Acting Fairly Between Members of the Company The Company is limited by guarantee and has no shareholders. The TrLtstee Diredors are the members of the company and all members therefore have equal representation on the Board. The Chaiman ofthe Board has a duty lo ensure that all Board members are given the opportunity to expres5 their views before any importanl decision is taken. By order of the Board Jane Sti Chairman 29 Sep mber 2021

Care South 17 Independent Auditor's Report to the Members of Care South Opinion We have audited the financial statements of Care South (the 'parent company'l and its subsidiaries {the 'group'l for the year ended 31 March 2021, which comprise the Consolidated Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally A¢￿pted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2021 and of the group's profit for the year then ended., have been properly prepared in accordan￿ with United Kingdom Generally A¢￿PIed 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 relating to going concern In auditing the financial statements, we have concluded that the director's 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 Un￿rtaIntieS relating to events or CDnditions that, individually or collectively, may cast significant doubt on the ¢ompany's ability to continue as a going con￿rn for a period of at least twelve months from when the original financial statements were authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going con￿rn are descrtbed in the relevant sections of this report.

Care South 18 Independent Auditor's Report to the Members of Care South Other infomation The responsible for the other infomation. 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, excepl to the extent othewise explicitly stated in our report. we do not express any fom of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other Informat￿0￿ is malerially inconsistent with the financial statements or our knowledge obtained in the audit or olherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstalement of the other information. If, based on the work we have perfornied, 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. Opinion on other matter prescribed by the Companies Act 2006 In our opinion, based Dn the work undertaken in the oourse of the audit.. the infomiation given in the Strategic Report and Directors, Report for the financial year for which the financial statements are prepared is consistent with the financial statements., and the Strategic Report and Directors, Report has been prepared in accordan￿ with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the group and the parent Gompany and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors, report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by u5., or the parent company financial statements are not in agreement with the accounting records and returns., or certain disclosures of directors, remuneration specified by law are not made.. or we have not IEceived all the information and explanations we require for our audit. Responsibilities of directors As explained more fully in the Directorg, report set out on page 8, the director5 are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors detemiine is ne￿SSary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going con￿rn, disclosing, as applicable. matters related to going concem and using the going concem basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Care South 19 Independent Auditor's Report to the Members of Care South Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whose are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonab5e assurance is a high level of assurance, bLrt is not a guarantee that an audit conducted in accordance with ISAS {UK} will always detect a material misstatement when il 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. As part of our audit planning we obtained an understanding ofthe legal and regulatory framework that is applicable to Care South, was gained through appropriate audit engagement team selection (ensuring competence and capability to recognise non-compliance) and discussions with management. This covered any knowledge or evidence of actual and potential fraud, litigation and claims, which was followed up with corroborative audit review work. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the charity's ability to continue trading and the risk of material misstatement lo the accounts. Based on our understanding of the charity and industry, we identified that the principal risks of non-compliance with laws and regulations relating to Charity Commission and Care Quality Commission ( CQC"). We considered the extent to which non-compliance with these laws and regulations may have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial slatements such as The Companies Art 2008. We also discussed with management to what extent the busines5 is exposed to fraud - etther inherently because of nature of operations, assets or because of weaknesses in internal controls. From these discussions we have evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements. The key incentive identified is to ensure a good financial position lo meet budgets and we determined that the principal risks were related to the overstatement of profrt, either through overstating revenue, understating expenditure or management bia5 in accounting estimates. Based on this understanding we designed our audit Pro￿dureS to identrfy non-compliance with relevant laws and regulations. Our procedures involved the following.. Enquiries of management regarding their knowledge of any non Complian￿ with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed w'rth management whether there have been any known instances of fraud, of which there were none. Reviewed filings with the Charty Commission and whether there were any serious inGident reports made during the year, of which there were none. Reviewed documentation from the CQC to confirm compliance with standards, and ensuring continued registration with the CQC through the CQC website. Reviewed legal and professional costs to identify any possible non compliance or legal costs in respect of non compliance. Reviewed Board minutes.

Care South 20 Independent Auditor's Report to the Members of Care South Auditor's responsibilities for the audit of the financial statements - continued In response to the identified risk, as part of our aLKlit work we.. We sampled sales from contracts and other rewrds outside the accounting system to ensure they are complete in the accounts. We reviewed documentation with customers to ensure the revenue can be recognised in the year, and we rewewed the calculations of gGcrued and deferred income. Audited the risk of management override of ¢ontrols, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal wurse of business. Reviewed estimates and judgements made in the accounts for any indication of bias and chall8nged assumpticins used by management in making the estimates. Because of the inherent limitations of an audit, there is a risk that we wll not detect all irregularities, including those leading to a m8terial misslalement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting 2 material misslatemenl due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omis510n or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uklauditorsrespDnsibilities. This description forms part of our audrtor's report. Use of our report This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of Ihe Companies Act 2006. Our audit work has been undertaken so that we might state to the comparTy'S members those matters we are required to state to them in an auditor's report and for no other purpose. Tothe fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. Duncan Leslie {SenioF Statutory Auditor) PKF Francis Clark, Statutory Auditor Towngate House 2 - 8 Parkstone Road Poole BH152PVV Dale.. .OBI.10J202J.............

Care South 21 Consolidated statement of financial activities (including income and expenditure account) for the year ended 31 March 2021 Unrestricted Restric funds funds 2021 2021 £000 Unrestricted Reslricled funds funds 2020 2020 Total 2021 Total 2020 Note £000 £000 £000 £000 £000 Income from: Donations and legacies 250 250 Charitable activities 37,316 16 37.332 37,461 17 37,478 Other trading activities Investment income 7,727 7,727 109 7,862 7,862 184 109 Other income 2,334 226 226 Total Income 47,486 266 47,752 45,733 17 45,750 Expenditure Expendf(ure on charitable activities 33,754 24 33,r18 34,372 17 34,389 Expenditure on other trading activities Other ex enditure 6,385 6￿85 6,703 6,703 Total expenditu 40,139 24 40.163 41,075 17 41,092 Net income 10 7,347 242 7,589 4,S58 4,658 Transfers 16 1161 17 1171 Gainslllossesl on investments 816 816 {3151 13151 Net movements in funds 8,179 226 8,405 4,360 11n 4,343 Fund balan￿S brought forward at 1 April 48,174 109 48,283 43,814 126 43,940 Fund balances at 31 March 56,353 335 56,688 48,174 109 48,283 The Group has no recognised gains and losses other than those included above. All results derive from cont'nuing operations. The￿ is no differen￿ be￿￿n the net income and the nel movement in funds, as reported above, and their historical cost equNalents.

Care South 22 Balance Sheets as at 31 March 2021 Group Company Group Company Company No 02565033 Note 2021 £000 2021 £000 2020 £000 2020 £ODD Flxed assets Intangible a5*ts Tangible assets Investrnents 13 95 95 14 46,335 3.633 41.212 47,021 2.767 34,940 13,309 15 Total fixed assets 50.031 47.T19 49.883 48.344 Current assets Debtor 16 3.443 3,761 7,102 15,341 Cash al bank and in hand 21,433 21.433 15,636 Total current assets 24.876 24,876 19,397 22,443 Creditors: amounts falling due within one year 17 17.5311 110,4021 (7,9981 18,5321 Net Current assets 17,345 14474 11,399 13,911 Totsl assets less current liabilities 67,376 61253 61,282 62,255 Creditors: amounts falllng due after more than one year 18 (10,6881 {10,6881 112,9991 {12.9991 Total ngt assets 56,688 51.565 48,283 49,256 The funds ofthe char Restricted incorne funds 20 335 335 109 Unrestrictgd inwme funds Designated funds General funds 21 34.302 22,051 32,050 19,180 37,779 10,395 36,240 12,￿7 21 Total unrestricted income funds 56,353 51,230 48,'174 49,147 Total charty funds 56,688 51.565 48,283 49,256 The financial statements on pages 21 to 44 were approved by the Board of Dire¢Xors on 29 September 2021 aTrJ were signed on its behalf b e Stichb Chairm ris er ean Vice Chairman

Care South 23 Consolidated Statement of Cash Flows for the year ended 31 March 2021 Note 2021 £000 2020 £000 Net cash provided by operating aetlvltles 25 10.073 6,332 Cash flow from investing activities Purchase of tangible fixed assets Purchase of intangibbe fixed assets Procèeds from the sale of tangible fixed assets Financial investment 1933) 111} 15,474} (70} {867) 109 256 Interest received 184 Net cash used in investing activitles {1.6971 {5,1041 Cash flow from financing activities Loan interest paid Receipt of bank loan Loan capital repaid 14581 16811 {2,121) 11,9321 Net cash used in financing activlties {2.5791 12,6131 Net change in cash and cash èqulvalents Cash and cash equivalents at the beginning of the year 5.797 {1,3851 17,021 15.636 Cash and cash equlvalents at the end of the year 21,433 15,S36

Care South 24 Notes to the financial statements for the year ended 31 March 2021 General information Care South I'lhe cornpany'l provides residential care facilities and other community rare services in the south of England. The company is an independent Company limited by guarantee and is incorporated and domiciled in England. The address of its registered office is 39 Commercial Rd, PDDle, Dorset, BH14 OHU. Statement of Compliance The financial statements of Care South have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republie of Iraland (FRS 1021, Charities SORP IFRS1021, the Companies Act 2006 and the Charities Act 2011. Statement of accounting policies A summary of the more important Group accounting policies is Sel out below. The principal accountsng policies applied in the preparation of these financial statements are set out below. These policies havè been consistently applied to all the years presented, unless Otherwise stated. These financial ststements arè prepared on a going cOn￿M basis, under the historical cost convention except for financial instruments which are measured al lair value. Further details regarding use of going eoncern basis can be found in the Directors Report, page 8. Care South meets the definition of a public benefit entity under FRS102. Group financial statements These financial statements consolidate the results of the Company and its wholly owned subsidiaries Beauchamp House Nursing Home Limited and Two Rivers Investments Limited using the acquisition accounting method. The subsidiaries, accounting poI￿leS have been changed where necessary lo ensure consistency with the wlicies adopted by the Group. Basls of consolidatbon The Group's financial statements consolidate the results of Care South I'the Company'l and all of ils subsidiary undertaking8 drawn up lo 31 March, and are prePa￿d on a going conTrrn basis and a historic cost cOnVen￿n has been applied. There are no material uncertainties in respect of the companies, ability to continue as a going con￿rn. Accounting policies have been applied consislenlly acr05S the Group. The acqUisit￿n melhcm of accounting has been adopted. Under this method, the results of the subsidiary undertakings acquired or disposed of in the period are included in the consolidated statement of financial aclivi(ies from the date of acquisib.on or up to the date of disposal. Acquistion On 31 March 2021, Care South purchased the assets and trade of its subsidiary companies, Beauchamp House Nursing Home Limited and TVKJ Rwers Investrnents Limf(ed. The purchase consideration was equal to the nel assets of each subsidiary company. Note 12 to the accounts shows the value of the nel assets transferred.

Care South 25 ststement of accounting policies- continued Exemptions FRS102 allows a qualfying entity certain disclosure exemptDns subject to certain conditions which have been complied with. The company has taken advantsge of the following ex&mplions'. The requirement to prepare a statement of cash flows, under FRS 102, paragraph 1.12 Ibl, on the basis that it includes the Company's cash flows in the consolidated financial slalements The requirement of secb.on 33 Related Paty Disclosures paragraph 33.7 to discltsse the companvs key management personnel compensation in total. The requirement to provide Trrtain financial instrument di5¢1osure5, under FRS 102 paragraphs 11.39 10 11.48A and paragraphs 12.26 to 12.29, as the information is provided in the consolidated financial statement disclosures. The requirement to prepare a statement of financial activrffies, under FRS 102, paragraph 1.12 Ibl, on the basis that il includes the Company's financial activities in the consolidated financial statements. Tangible fixed assets Generally, tangible fixed assets cosb'ng more than £2,000 are capitalised and included at purchase cos( including any irrecoverable VAT, 109etherwith any incKSental costs of acquisition. less any impairment. Tangib fixed assets costing les5 than £2,000 are generally expensed as incurred. Depreciats"Dn is calculated so as to write off the cost of tangible f￿ed assets less their estimated residual values on a straight line basis over the expected useful economic Sives of the assets COn￿med, as follows.. Years Buildings Short Leasehtsld Improvements Computer Equipment Fixtures, Fitbngs and Equipment Motor Vehicles 50 Remaining length of lease 4-10 Land and assets in the course of construction are not depreciated. Loan interest on debt taken out swrfically to fund assets in the course of Construction is capilalised and written off over the useful lrfe of the asset In siluab.ons where an asset is not able to cornplele its initially assessed usefttl economic lÈfe, the remaining useful life is established, and it is written off over the sh(xter period. Donated assets are recognised at the stsrt of the assets, useful lives. The value of the assets is transfe￿ed to restricted fund and the depreciation of those asse15 is charged lo that fund. A review for impaimient of fixed assets is Ca￿led out al each balance sheet date to determine 'rf events or changes in circumstances Indicate that the carrying value of any fLKed asset may not be recoverable. If there is an indication of possible impairment, the recoverable amount of any affected asset is eslim8frd and compared with the carrying amount. If the esb"mated recoverable amount is lower, the carrying value of the asset is impaired. Impairment I0￿S are recogni5ed in the Statement of Financial ActNrties, Investments Investments are stated at cost, less any provisDn for impairment in value. Listed investsnents are included al market value al the balance sheet date. Realised gains and losses on investments are calculated as the differenTr be￿een sales proce￿$ and their market value at the start of the year, or their subsequent cost and are charged or credited to the Slalemenl of Financial Actwilies in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged lo the Statement of Financial Actwities based on the market value at the year end.

Care South 26 Statement of accounting policies - continued Intsngible assets Intangible assets are slated al cost less accumulated amortisalion and impairment10sses. AmortisatiDn is calculatect, using the straighl-line method, to allocate the depreciable amount of the assets lo their residual values over their esb'mated useful INes, as follows.. Goodwill- 10 years Goodwill, being the ex￿$5 of eonsidemtion paid overthe fair value of nel assets acquired on the acquisition of a business, is amorb.sed evenly over ils estimated useful life of len years. So￿are- 3 years Amortisalion is charged to charitable activities in the statement of financial activities. Where factors, such as technological ac)Van￿ment or changes in market price, indicate that resicsual value or useful life have changed, the residual value, useful life or amortisation rate are amended pr05pecb.vely lo reflect the new circumstanTrs. The assets are reviewed for impaiment rf the above factors indicate that the carrying amount may be impaired. Cash and cash equrvalènts Cash and cash equivalents comprise cash on hand and demand deposits and other short temi, highly liquid investments that are readily convertible lo a known amount of cash and are subject to an insignificant risk of changes in value. Income Income from charitabbe and other trading actwities, which excludes value added tax, represents the value of the residential and domiciSiary care services provided during the year and is recognised al the point the service is provided. Fee depDsils invoiced and reTrived in advance are deferred until such lime as the service user ases occupation in the Companls care homes. Income from revenue related to grants is recognised when recerved. Investment income is re￿niSed in the period in which il is earned. Credit for legacy income is taken in the year in which the amount can be assessed wrf(h probable certainty. Legacies for the general purposes of the Charity are credited to 'General Funds,. Legacies subject to spectric wishes of the donors are cred'rted lo 'Restricted Funds,. Deferred income Amounts received in advan￿ in respect of Block PurchaseAgreernents are included in deferred income at the year end and also included in a restricted fund. Defe￿ed incorne is released to the SOFA over the period of the related contract Expenditure l expènditure is accounted for on an accruals basis. Costs in relation lo governan￿ are not material and have been included wlhin the costs of charitable a¢b"vilies. Irrecoverab￿ VAT irbcurred on resources expended is charged as a cost to the Statement of Financial Activities. Penslon costs The Group has 2 defined contribution stakeholder pension scheme. From 1 September 2013 all qualifying staff not in an eligible pènsion ￿herne were enrolled in a flexible retirement plan as required by auto-enrolment legislation. C051s charged to charitable activities and commercial trading operab.ons are the contributions payable in the year. DifFerences bètween contributions payable in the year and contribub.ons actually paid are recorded as either aecruaK% or prepayments in the balance sheeL

Care South 27 ststement of accounting policies- Continued Stock Stock represents the costs of construction and the rights lo the use of land under leases of unsold close are apartments and cottages, with lease periods of either 99 or 122 years. Stock is staled at net cost less any foreseeable losses. Operatlng leases Costs in respect of operating leases are charged on a straight line basis over the lease tem. Financial instruments The GTOUP has chosen lo adopt Sections 11 and 12 of FRS102 in respect of financial instruments. 8) Financial assets Basic financial assets, including trade and other receivables, and cash and bank balances, are initially recognised al transaction price. Such assets are subsequently measured at amortised cost. At thè end of each reporting period financial assets measured al amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment105S 15 the difference between the carrying amount and the present value of the estimated cash flows discounted al the asset's original effective interest rate. The impairment Ioss is iecognised in the income statement. Financial assets are derecognised when al the contractual rights ID the cash flows from the asset expire, or are settled. or bl when substantially all the rtsks and rewards of ownership of the asset are transferred to another paty. b) Financial liabilities Basic financial liabilitiès including trade and other payables, and cash and bank balances, are initially recognised al transaction price. Such liabilities are subsequently measured al amortised cost. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged. cancelled or expires. Derwatrves, which are not basic financial instruments, and lake the form of interest rate swaps are initially recognised al fair value on the date a derivative contract is entered into and are subsequenuy re-measured at their fair value. Changes in the fair values of derivatives are recognised in the Statement of Financial Activity as either finance cost or iri¢ome as appropriate. Designated funds Designated funds are unrestricted funds that, at the discretion of the Directors, have been set aside for specif purposes. The balance of designated funds al the balance sheet date represents the net book value of fixed assets after taking account of related long term extemal financing. Restricted funds Restricted funds are funds which have been retsived for a specif*c purpose. General funds General funds may be used in accordance wrth the Company's charitable objectives at the discretion of the Directors. Crltlcal accounting judgements and estimates The group makes estimates and assumption5 con￿rning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The èstimates and assumptions that have a significant risk of causing a material adjusbment to the carying amounts of assets and liabilitiès wKthin the next financial year are addressed below.

Care South 28 Statement of accounting policies - continued Impairment of receivables.. The company makes an e5timBte of the recoverable value of deblots. When assessing impairment of receivables, management considers factors including the credit rating of the re￿1Vable, the ageing profile of receivables ar)d historical experience. Useful economic Srfe of assets.. The carrying value of tangible fixed assets at 31 March 2021 Inole 141, requires the directors lo make an estimate of the assets, useful ewnomic lives and undertake an annual reviewfor impairment. The eSt￿Mated lives applied are detsiled on page 25. Assets under construction.. The Directors are required to identify when expenditure is capital in nature and relates lo the creation or improvement of an asset. Judgements are also required lo determine when the asset has been compSeted and therefore brought into use, which wll normally be the dale al which an asset is brought into operational service. See note 14 for more details Financial activities of the Company A summary of the financial activib.es undertaken by the Parent Company are set out below.. 2021 £000 2020 £000 Resources from generated funds: Investment income 109 184 Donations and legacies Charitable activfties 250 37,332 3,205 1,952 42,848 133,684) 17,671) 37,478 Profits donatèd by subsidiaries Other iTbcome 226 Total Income 37,888 134,2951 Total expenditure on charitable athilie5 Impaiment loss on subsidiaries Other expendf(ure Net Income before other recognlsed 9alns and losses Un[￿gnISed gainslllossesl Net movement in funds 1,493 816 3,593 1315) 3,278 45,978 2,309 49,256 Total funds brought forward as al 1 April Total funds carried forward 51.565 49,256 Represented by: Restricted Funds 335 109 Unrestricted Funds 51,230 49,147 51,565 49,256

Care South 29 Income from charitsble activities Unrestrlcted Restricted funds funds 2021 2021 £000 £ODO Totsl UnreStr￿ed Restricted funds funds 2020 2020 £000 £000 Total 2021 £000 2020 £000 Residentia5 care services 33,129 4,187 16 33,145 4.187 32,863 4,598 17 32,880 4,598 Domiciliary care servies 37,316 16 37,332 37,461 17 37,478 Other income 2021 £000 2020 £000 Infection Control and Rapid Testing grants Coronavirus Job RetentDn Scheme income 2,102 172 Sundry income and utility costs ocharg&J 226 2.334 226 Expenditure on charitable activities Unrestrfcted Restrictgd funds funds 2021 2021 £000 £000 Total Unrestrited Restricted funds funds 2020 2020 £000 £000 Total 2021 £000 2020 £000 Re5KJential care 25,052 3.645 4,055 24 25,076 3,645 4,055 25,745 3,815 3,632 499 17 25,762 3,815 3.632 499 Domiciliary care Support costs Other costs Interest payable on bank loans Gains on derivative financial instruments 556 556 694 694 (98) 1981 1131 1131 33.754 24 33,778 34,372 17 34,389

Care South 30 Directors, emoluments and key management compensation Travel expenses of £12 was paid to one Director of the Company during the year12020.' £3,589 paid to six Directors). No emoluments are payable to the Direclors12020.. £nill. Key management compensation (Group) Key management includes the Directors and members of the senior leadership team. The compensab'on paid or payable lo key managemènt is shown below.. 2021 £000 2020 £000 Salarias and other short-term benefits Posl-employmenl benefit 790 56 687 57 Total compensation 846 744 The number of key management personne5 who r￿1Ved feès and other emoluments (including pension contributions) in the following ranges was.. Group 2021 Number GrDUP 2020 NumbeT Less than £10,000 £10,001- £20,000 £30,001- £40,000 £70,001- £80.000 £80,001- £90,000 £90,001-£100,000 £100,001- £110,000 £110,001- £120,000 £130,001- £140,ODD £160,001- £160,000 £170,001- £180,000 £200,001- £210,000

Care South 31 Employee information The average number of people employed by the Company in the financial year was 1,099 {2020.' 1,1101, and by the Group was 1,354 12020.. 1,3541. This equates to the following average monlhw number of full-time equwalent pèrsons (including senior exècutives) employed by the Group and Company during the year.. Group 2021 Number Company 2021 Number Group 2020 Numb Company 2020 Number By actNty Management administration, finance and training 189 168 176 158 Suparvisors 137 106 153 121 Care, catering and domestic staff 802 662 790 651 1,128 936 1,119 930 Group 2021 £000 Company 2021 £000 Group 2020 £000 Company 2020 £000 Staff costs {for thg above persons) Wages and salaries 24,149 20,193 22,151 18,591 Social security costs 1￿45 1.566 1,592 1,351 Other pension costs 633 548 585 506 26,627 22.307 24,328 20,448 staff numbers have been reported on the basis of full time equivalent hours. In addrtion, in the group, temporary staff costs of £1,308,00012020.' £3,542,000) were incurred for hol¢day cover, sickness, and staff shotsges.

Care South 32 10 Net income Group 2021 £000 Group 2020 £DOD Net ineome Is stated after charging: Depreciation for the year. - Tangible fixed assets Intangible owned fLxed assets Operating leases- land and buildings Loss {profrtl on disposal of fixed assets Fees payable to the Company's auditors for the auclit of the Parent Company and Group finanaal statements Fees payab￿ to the Company's auditors to audlc the Company's subsidiaries pursuant to legislation Fees payable lo the Company's auditors for other semces 1,569 1,709 1,827 1,817 28 11 Charitable and taxation ststus The Charity Commissioners granted charitable status to the Company on 12 OclDber 1992. Charitable acb"vib'es are exempl from lax under seth.on 505 of the ICTA1988 and accordingly no ¢OTporation lax has been prov"Kled for in these financial statements. The trading subsidiariès have grft aided all of the operating profits generated from trading, resulting in no material corporation tax liabilty arising in the year. 12 Acquisition On 31 March 2021 the trade and assets of Two Rivers Investments Limited and Beauchamp House Nutsing Home Limited were transferred to Care South at their carrying values. Assets per completion accounts £'o( Fair value adjustments £'ooo Transfer in recognised £'ooo Tangible fixed assets Freehold land and buildings Leasehold land and buildings Plant and machinery Assets under construction 6,719 6,719 232 32 232 32 6,991 6,991 other assfrts Debtors due in less than one year Cash in bank and in hand 358 245 603 358 245 603 Liabilitles Creditors due in less than one year {8751 18751 Net assets 6,719 6,719

Care South 33 13 Intangible assets Software Goodwill Total Group £000 £000 £QDO Cost Al 1 April 2020 Additions 410 385 795 11 11 Disposals At 31 March 2021 421 385 806 Accumulated amortisation At 1 April 2020 Charge for the year Disposals 315 385 700 43 43 At 31 March 2021 358 385 743 Net book value At 31 March 2021 63 63 At 31 March 2020 95 95 Total software Company £000 Cost Al 1 April 2020 Additions 410 Disposals At 31 March 2021 421 Accumulated amortlsatlon At 1 April 2020 Charge for the year Disposals 315 43 At 31 March 2021 358 Net book value At 31 March 2021 63 At 31 March 2020 95

Care South 34 14 Tangible assets Assets Undèr Con- structiort Short Leasehold Improve ments Land and Buildlngs £000 Fixtures, Equiprnent and Mofgr Vehicles Group Total £000 £000 £000 £000 Cost At 1 April 2020 47,618 4,651 313 8,536 61,118 Addib"ons 243 395 295 933 Transfers 161 {3951 401 Disposa15 15651 {5651 At 31 March 2021 47,855 4,651 313 8,667 61,486 Accumulatsd Depreciatlon At 1 April 2020 6,798 302 6,997 14.097 Charge for thè year 718 1,569 Eliminated on disposal 15151 15151 At 31 March 2021 7,647 304 7,200 15,151 Net b¢)ok value At 31 March 2021 40.208 4.651 1,467 46.335 Al 31 Maich 2020 40,820 4,651 11 1,539 47,021 Group and Company Included within Land and Buildings cost are homes freehoSd land and buildings of £21,673.000 12020.. £21,436,000 restated), buildings where the land is held on a 125 year operating lease of £18,011,000 {2020'. £18,011,DOO restated) and buildings where land is held on a 150 year operating lease of £6,299,00012020". £6,299,000) The net boDk value of capitalised finanTr costs is £74,00012020.. £76,000) which is included within land and buildings.

Care South 35 14 Tangible assets (continued) Assets Under Con- struction £000 Short Leasehold Fixture5, Improve- Equipment and ments Motor Vehicles Land and Building8 £000 Company Total £000 £000 £000 Cost Al 1 April 2020 33,458 4,638 291 6,839 45,226 Additions 382 183 565 Transfers from subsidiaries 6,719 232 6,991 Other transfers {4011 401 Disposals 14291 14291 At 31 March 2021 40,177 4,651 299 7,226 52,353 Accumulated Depreciation At 1 April 202Q) 4,445 291 5,550 10,286 Charge for the year 614 624 1,238 Eliminated on disposals 13831 1383} At 31 March 2021 5,059 291 5,791 11,141 Net book value At 31 March 2021 35,118 4.651 1,435 41,212 At 31 March 2020 29,013 4,638 1,289 34,940 15 Investments Group 2021 £000 Company 2021 £000 Group 2020 £000 Company 2020 £000 Shares in group undertakings Listed investments 2,871 3,633 10,542 2,767 3.633 2,767 3.633 6,504 2,767 13,309

Care South 36 15 Investments {¢ontinued} Company 2021 £000 Company 2020 £000 Shares in Group undertakings As al 1 April 2020 10,542 10.202 Impaiment 17,671} Beauchamp House share purchase 340 As at 31 March 2021 2071 10,542 Investments in gTOUP undèrtakings are represented by the entire issued share ¢3pilal of Beauchamp House Nursing Home Limited which was acquired on 31 January 2008, and Two Rivers Investments Limited which was acquired on 10 March 2011. The Direclors consider the value of the investments to be supported by their underlying 35sets. Investments in Group undertakings are staled at cosL The principal acb"vitiÈs of Beauchamp House Nursing Home Limited Icompany number 011244331 and Two Rivers Investments Limited (Company number 051398711 during the year were that of providing nursing homes for the elderly. A summary of the 12 months trading and c105ing balance sheets for both entities follows. On 31 March the activitiès, trade, assets and liabilities of Beauchamp House Nursing Home Limited and Two Rivers Investrnents Limrf(ed were transferred ID Care South. Following the sale, the companies ceased to trade. Care South's three wholly owned domiant subsidiary companies are.- Cao South Developments Limited (Company number 5245934) The Dorset Trust Limited (Company number 5115530) Strome Park Limited (Company number 075614381 The registered address of all subsidiaries is 39 Commercial Road, Poole BH14 OHU. All subsidiaries are incorporated in England and Wales. Beauchamp House Nursing Home Llmited- Financial Results Summary Profit & Loss Account 2021 2020 £000 £000 Tumover 2.694 128 2,784 Other operating income Cost of sales, administralwe expenses and interest costs {2.3521 12,6501 Profit on Ordinary Activities Before Taxation 470 134 2021 2020 Balance Sheet £000 £ODO Assets 406 4,850 {4,150) Liabilrf(ies Total Not Assets 406 700

Care South 37 15 Investments (continued) Two Rivers Investments Limlted- Financial Results Surnmary Profit & Loss Account 2021 2020 £000 £000 Turnover 5.033 253 5,078 Other operating income Cost of sales, adminislratwe expenses and interest costs {4.0321 {4,0541 Profit on Ordinary Activities Before Taxation 1.254 1,024 2021 2020 Balance Sheet £000 £OOD Assets 2,465 4,221 1569} Liabilities Total Net Assets 2,465 3.652 Other Investments 2021 2020 £000 £000 Listed Investments 3.633 2,767 The investments were valued by Investec Wealth and Investment Ltd based on the fair value which is equivalent to market price as at 31 March 2021. 16 Debtors Group 2021 £000 Cornpary 2021 £000 Group 2020 £000 Company 2020 £000 Amounts falling due within one year: Trade debtors 1.774 1,774 2,260 2,079 3,691 Amounts owed by subsidiary undertakings Other debtors 51 51 15 14 Prepayments and acuued income 1.618 1,618 1,486 1,318 3,443 3,761 7,102 Amounts owed by subsidiary undertakings are unsetsured, interest free and are repayable on demand. Trade debtors are staled after provision for impairment tsf £287,00012020'. £322,000).

Care South 38 17 Creditors: amounts falling due within one year Group 2021 £000 Company 2021 £000 Group 2020 £000 Company 2020 £000 Bank loans 2,194 2,178 2,194 2,178 2,871 510 2,129 2,595 2,129 2,383 Trade creditors Amounts owed to subsidiary undertakings Other creditors 1,562 258 510 639 Taxation and social security Accruals and defe￿ed income 404 332 285 2,245 2,245 2,303 1,915 7.531 10,402 7,998 8.532 Group 2021 £000 320 Company 2021 £000 257 Deferred income at 1 April 2020 ReSoU￿S deferred in year 215 170 Amounts released from previous periods {3001 12371 Deferred income at 31 March 2021 235 19D 18 Creditors: amounts falling due after more than one year Group 2021 £000 Company 2021 £ooD Group 2020 £000 Company 2020 £000 Bank loans 9,809 9,809 11,995 11,995 Accrua15 540 551 551 Deferred income 77 93 93 Derivatwe financial instruments 262 262 360 360 10.688 10,688 12,999 12,999 There are eight loan facilities repayable in instalmen15 over durations ranging from 10 to 20 years a inTrption. The value of loans with fixed interest rates of befften 5.9D/ts and 6.60/0 is £6,559,000 12020.. £7,711,000 restated). Loans with variable interest of base plus 2.25'/0 total £2,850,00012020.' £3,420,000). Loans with variable interest of b35e plus 2% total £2,594,00012020.' £2,993,000). Each loan ￿ secured on the property f( was raised against.

Care South 39 18 Creditors: amounts falling due after more than one year (continued} Maturfty of bank loans Group 2021 £000 Company 2021 £000 Group 2020 £000 Company 2020 £000 In one year or ￿sS In more than one year, but not rn0￿ than two years In more than ￿ years. bul not more than five years 2,194 2.194 2,129 2,129 2.138 2,138 2,129 2,129 6.094 6,094 6,388 6,388 In more than five years 1,5TT 1,577 3,478 3,478 12.003 12.003 14,124 14,124 19 Financial Instruments Group 2021 £000 Company 2021 £000 Group 2020 £000 Company 2020 £000 Financial assets measured al amortised cost Trdde debtors 1,774 1,774 2,260 2,079 Amounts owed by subsidiary undertakings Accrued income 3,691 982 982 857 781 Other debtors Financ￿1 assets al fair value through income and expenditure Listed investments 51 51 15 14 3,633 3,633 2,767 2,767 Financial assets 6,440 5,899 9,332 Financial liabilities measured at amortised cost Trade creditors 2,178 2,178 2,595 2,383 Bank loans 12.003 12,003 14,124 14,124 Amounts owed lo subsidiary undertakings Accruals 2,871 2,550 2.550 2,533 2,208 Other credftors 509 639 258 Financial liabilities measured at fair value through income and expenditure Derivative financial instruments 262 262 360 360 Financial liabilities 17,502 20.233 20,251 20,895 Derivative financial instruments The Group had entered into three interest rale swaps to receive interest al LIBOR and pay inlère5t al fixed rates of 4.21 Q/0, 3.84 /v and 1.57¥.. The swaps are based on principal amounts of the Group's Barclays loan facilities, and mature in 2028, 202S and 2025 on the same dates a5 the Barclays loans. Interest rale swaps are valued al the balance sheet dale as advised by Barclays Bank,

Care South 40 20 Restricted Èncome funds Group and Company Sussexdown Legacy Maiden Castle Build Total £000 At 1 April 2020 Income 109 109 250 16 266 Transfers {161 116} 1161 1241 Expenditure 181 At 31 March 2021 242 93 335 The balance of restricted ftjnds at the balance sheet date represents a restricted legacy gifted to Sussexdown during the year, along with the net book value of assets gifted from Dorsel County Council to Maiden Castle House. Deferred income in respect of the above is recognised as £16,000 in short term creditors and £77,000 in long term creditors. The movement in the year relates to depreciation acrDSS the life of thè lease. 21 Unrestricted income funds Group Designatèd Funds General Funds Total £000 £000 £000 At 1 April 2020 Transfer from restricted funds 37,779 10,395 16 48,174 16 Transfer 13,4771 3,477 47,486 140,139} 816 Income 47,486 140.139} 816 Expend￿Ure Unrecognised gains At 31 March 2021 34,302 22,051 56,353 Company Designated Funds General Funds Total £000 £OOD £000 At 1 April 2020 Transfer from restricted funds 36,240 12,907 16 49,147 16 Transfer (4,1901 4,190 39,377 Income 39,377 Expenditure Profi15 donated by subsidiaries Unrecognised gains 141,3311 3,205 816 141,3311 3.205 816 At 31 March 2021 32,050 19,180 51.230 Designated funds represent the value of tangible and intangible fixed assets. A transfer has been made for both the Group and the Company from general funds so that designated funds equal the value of fixed assets after taking account of exlemal financing. For the case of the company, fixed assets also includes the investments in the subsidiaries. Listed invastments are included within general funds.

Care South 41 22 Analysis of net assets between funds Group Designated Funds Restricted Funds General Funds Total 2021 £000 £000 £000 £000 Fixed asse15 46,305 93 3,633 24,634 50,031 24,876 {7,531} 110,688) cu￿ernt assets 242 Current liabilities 12,1941 19,8091 15,3371 18791 Lorig tem) liabilities Total Net Assets 34.302 335 22.051 56,688 Compary Designated Funds Restricted Funds General Funds Total 2021 £000 £000 £000 £000 Fixed assets 44,053 93 3,633 24,634 47,779 24.876 Current assets 242 Current liabilities 12,1941 19,8091 18,2081 1879} 110,4021 (10.6881 Long temi liabilities Total Net Assets 32,050 335 19,180 51,565 23 Pension obligations Defined Contributlon Schemes The Defined Contribution schemes are stakeholder pension schemes and flexible retirement plans that are independently administered by regulated Financial Services companies. The cost of contributions lo the schemes amounted to £25,000 {2020. £24,000) and £608,000 12020.. £561,000} respectively Contributions of £3,000 12020.. £3,0001 and £112,000 12020.. £110,000) were owed to the schemes respectively at the end of the year.

Care South 42 24 Related parties transactions The Company has entered into the following transactions with its wholly owned subsidiaries. Transactions entered into and balances outstanding al 31 March 2021.. Recharges to related parties £000 Payments to reduce intercompany balance Amount owed bylltol related parties £000 Hive up transfer of trade £000 Beauchamp House Nursing Home Ltd Two Rivers Investments Ltd 174 442 14,7131 14061 272 970 12,1451 12,4651 Transactions entered into and balances outstanding at 31 March 2020.. Recharggs to related parties £000 Payments to reduce intercompany balance Amount owed by related parties £000 Hlve up transfer of trade £ODO £000 Beauchamp House Nursing Home Ltd Two Rivers Investments Ltd 145 11.8361 3,691 224 12,7381 I1￿62) During the year the company received gift aid profits from related parties tolalling £3,205,000. Care South leases land on a long leasehold basis from the T H Russell Charitsble Trust al our St Ives House site near Ringwood. Mrs Lyndsay Ann Ansell is both a Director of Care South and a Trustee of the TH Russell Charitable Trust. The rent paid under the lease during the financial year amount￿ lo £91,000.

Care South 43 25 Reconciliation of net income before other recognised garns to net cash provbded byl(used in) operating activities 2021 £000 2020 £OOD Net income (before other recognised gains and losses) Unrealised gainslllosses} Depreciation Amorb"sation 7,589 816 4.658 13151 1,7D9 1.569 43 Interest receNed {109} 458 1184} 681 Interest expenses Loss on disposa1 of fixed assets Decrease in stock 45 23 341 Decreasallincreasel in debtors Decrease in creditors 318 1542) 1931 16561 Net cash provided by operating activities 10,073 6,332 26 Capital commitments The Group has no capital commitments at the balance sheet dale12020 £35,000). 27 Contingent liabilities The Company had no material contingent liabilities at 31 March 202112020.. £nill. 28 Financial commitments Al 31 March the Group and Company are committed to the following future minimum lease payments under non-cancellable operating 5eases.' 2021 Land & Buildings £000 2020 Land & Buildings £000 Within one year Within 2 10 5 years After 5 years 1,839 6,067 1,8L 5,960 44,383 29 Limited liability The Company is limited by guarantee and does not have a share capital. The Directors are the guarantor members for £1 each.

Care South 44 30 Analysis of changes in net debt At 1 April 2020 £'ooo Cash flow$ £'ooo At 31 March 2021 £'ooo Cash and cash equivalents Cash 15,636 5,797 21,433 Overdrafts 15,636 5,797 21,433 Borrowings Debt due within one year 12,1291 (651 12,1941 Debt due after one year 111,9951 2,186 19,8091 114,1241 2,121 112,003} Total 1,512 7,918 9,430