Company reylstiatltsn numbèr 046S3659 IEn9land and Wal•$l CARE HOUSING ASSOCIATION LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 CARE HOUSING ASSOCIATION LIMITED CONTENTS Pag Company infoim81io Slialegio Fepori Dlieclors, report Dir¢clots' responsibllilies slalemttnl Indppendenl audilofs report 9-12 Slat8m8nl ol income and relalned e8rnlngS 13-14 BalanGe sheet 15 Stalemenl of cash tlows 16 Notès to the financial slalemenls 17-26 Detailed Irathng and profil and loss 27-29 CARE HOUSING ASSOCIATION LIMITED COMPANY INFORMATION Chalm7an Mr R Pafc Dlrectors Mi R Parr- Chair Ms N Khan- Vice Ch8ir MIA RiGhards Mis D Holmes Cgmpaxy number 04653659 Re9l$tèred offlce Rlverside House King5 Rgach Buslness Park Yew Slreol Stockporl Cheshii¢ SK4 2HD Auditor Xèinadin Audit Llmlted Riverside Housè Klngs Reach Buslnvss Park Yew SITeel Stockport Cheshiie Uniled Klhgdom SK4 2HD Business address Suit6 29 Hardmans Business Cenlr8 New Hall Hey Road Rawtenstal Lancashlrtr UK BB4 6HH CARE HOUSING ASSOCIATION LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024 The dtiecloTS present the slr?le9lC Feport loi the yeai Ended 31 March 2024. Fair revlew ol the buslnÈs5 In Ihe yeai lo 31s1 March 2024 Care Housing Assoryalion Limited can iepoTi upon a profitable year wilh relatively heallhy growlh. This year Care Housing Association Limiled aoquir8d one addilional lour-person propetty (Penistone Road} using reserves, and lea$Èd a further five buildingslsites, lo be occupiod by 51 letEonls. 01 the 55 now lenan¢iés. 43 are single-person accommodalion acioss Ihree siles, wblh Ihe remaining 8 in 3 shared hovse5. At 3151 Mar¢h 2024 Iheie were four hundied Lind Ilirily 5evEn units in Cale Housing Associalion LSmiled. of which sixty Ihree were owned. The below rat￿5 Icomp8ralives have been resl8tedl ale monilor¢d on a quarferly basis Io ensute key areas wilhin Ihe company a¥e mainlained al the reouired level deemed appropriate by the btsaid. Gr055 profit Gross profil slan(Js al 37.15QA whlch Ss a increase Irom 31.17Yb in 2023. Purchased properties hav8 oeneialed higher margin bul also this is consistent wilh hlsloFlttal years prior lo 2023. Gearing r8tiD The yEaring ratio was 34,27 /* down fiotn 36.60Yo in 2023. This is wilhin Ilie ac¢eplable lange ol Care Housing Assoclalion Limiled's level ol gearing. Thls ratio is calculated vsing c8pilal employed. As mentioned in Ihe VFM disdosures, high inlerest lates have rèsulled In Ihe gearing not reducing lo the same extent as In prior years. Return on caplfal employed Retum on eapilal employed is 7.42V/o whiGh Is A Increase from 3.14 /• In 2023. The ialio ha5 incieased due lo the increased profil relu¥i)ed oli a fairly slable capital etnployed. Current ratlo The current ralio is 1.58 which h8s decfeased Irom 2.19 in 2023. Ilquldily is positivè In Ihè company bul the lowesl it has been foi a number ol years. Significant inveslmenl in a wide lange of aieas is parlly Ihe r&a80n. structure, 9oveTnan¢e and manigemonl Caie Houslng Asstr¢iatlon Limited is governed by its Memoiandum and Articles ol AssoGialon dated 17lh March 2017 on companies house. Care Housing Associalion is run by 118 CEO wllh stralegic decision5 overseen by IhE board. The board usually ¢vnslsls ol six direelors, wllh no upper limit and a quofate Igqulrement of ￿0 diie¢lor$. Al each annual general mEeling one-lhlrd ol Ihe diiectois or, if their numbei Is nol three or a mulliple ol Ihree. the number nearÈsl to one.Ihird, must retire fforn oftice. Ilthere Is only one direclor, he or she musl relire. The dirèctots 10 retire by iolalion shall be those who have been longest in office since Iheir lasl appolnimènl. 11 any difeclors became or weiè appoin16d dlreclors on Ihe same day Ih05e to reliie shall (unless Ihey otherwise agrÈè among Ihemselvesl be delermincd by lol, If a diieclor is required lo relirè Al an annual general meeling by a provlslon of ihe Arlldès the relSreinenl shall lake effecl upon Ihe ¢ondusion ol Ihe meeting. The Articles diclale thal no dlreGlor may sland lor re-ele¢tion mor¢ than Ihree Ilmes and no direclor may remalh In off5ce (with or wilhoul rfjliigmenl and re-eleclionl l(w an agyre9ale ￿rIOd DI more Ihan ten1101 years. However, the National Housing Federalion Code ol Conducl 2020, which has been adopled by Ihe board. requlre directors lo remain in office foi no longer than 6 years. unless Ihere Is a valid business Case lor a years exlenslon. up lo 7 year6. CARE HOUSING ASSOCIATION LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Prlnclpal rfsks and un¢ertaintle$ The sijpported housing so¢lor has several iisks relallng lo th8 capital aiid revenue fundin9 models deployed. I leim$ of capllal, there Is limited publi¢ funding available to enable suwicienl investmenl in new homes lo meet the conlinued and growing dèmand lor seryices. The Hom&s England funding legime do8$ nol woik at scale lor speciallsed supported houslng, which lyplcally requii¢s 70%+ ol funding lo ensure providets are able to meet Iheir fegulalory iespoiisibllilies around renl selling. l.ikewise, allhough NHS England do make Cdpi181 available lor specialist projects. it is a finile omounl and meets only a Iradlon ol the housing demand. Allhough piivale capilal is more readlly available, Ihe market is In a period ol Iransilion due lo hlgh-profile failings from piivale Gapllal investors over the previous de¢adÈ, increasing relurrt expedalK)n5 driven ljy Asing inleresl rates, and a lack ol confidence in the long-term suslainabilily ol the model. In addillon. ¢onstruclioTr cosis have increased significanlly hlgher than in1131ion. 2nd so the cosls ol dellvering new homes, and Ihe subsequent increasing went levels. are making il more difficult to deliver homes which aTe financially suslaSnable for houslng providers. Despile Ihe challenges in delivering new homes. Ihe As$oclalion still ¥etalns ambitious gtowih tsfgets. However, Ihls must be balanced wilh Ihe need lo Iinderiake suificlenl duè diligence on all parties Icare provlders, local aulhoritie$. devolopers, and ¢oniiaclorsl and ensure Ihal our lJome5 ¥elain the appropriale level ol quality and suslainabillly. April 2024 saw 1he iniroduclion of revlsod consumer blandards and deliveied greater powers for Ilie RegulatOT of Soc181 HovsltJ9. This has led lo greater expeclations around quality. safely, and ensuring lenanls have 8ppropTiate means of enoagemenl with Ihelr landlord. Caie backs Ihg move to iaise slandards furiher but tnusl also be cons¢ious ol Ih? resourcing and praclictl implicalions of me81ing Ihe standards. Olher legislativè change& iFFclude Ihe inlroduction of the Svpported Housing {R¢gulalory Oversighll Act 2023. which will see the inlroduction ol h'Gon51ng syslem for supported houslng providers and will look to introduce minimum slandards foi care and support. The Asso¢i81ion may need to adapl sts practices and ensure Ihal and adaplallon Is resourced a(lequalely. Thp Board ilsell has rèmained sloady and conslstenl Ihioughout the year, which has helped address a number of long-sl8nding key rlsks and mitigate lo Ihe wolecl the lulure ol Ihe As50cialion. The staff team has grown further. wilh Ihe inlroduclion ol key 51aH In assel man89ement aT*d finance. The Increased Iapaclly and expErien￿ of tho team will help to meel some of Ihe leglsl(115ve and regulatory challenges, and also equlp the Association WEII Io conlinue lo grow in a su$lainable way. Slaff relenlion and morale iomains hlgh, as demtsnslrated in the resull pf an •nnual staff sutV8y. CARE HOUSING ASSOCIATION LIMITED STRATEGIC REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Oblectlvos and acllvltlès Relioving aged, disabled Iwhelher physically or menl8llyl or chronlcally 8i¢k peoplè including n who was a direcloi al Ihe dale ol approvino Ihis report is aware. Ihere is no relevant audit information ol which the comp¥nls 8iidilor 18 unawaie. Addlllonally. the diibclors Individually have taken all the necessary sleps that they ought lo have laker> as dire¢lors in order lo make Ih&mselvEs awaro ol 811 relevant audSl inlormalian to establish Ihal Ihe company's auditor is aware ol that infoifflalion. Appr(Fved by the Boaid on 2.6.1.11 and $i9ned tsn its behall by Mr R Parr- Chaif Ms N Khan- Vice Chair CARE HOUSING ASSOCIATION LIMITED DIRECTORS, RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 The direclors are ie5ponsible for preparlng Ihe Bnnval report and Ihe flnanclBI slalemenls in accordance with appltcable law and regulations. Company law requires th& directors lo prepare fingnelal slatemenls Iof each financF31 year. Under Ihal law the direclgis have elecled lo prepare Ihe financial statements in accortlance with Uniied Kingdom Generally A￿epted Accounting Pracli¢e {Uniled Killodom A¢counllno Standards and 8pplicable lawl. Under company law the direclors mu51 nol approve Ihe financial statements vnless they are satisfied Ihat they give a true and lalr view ol the slale of allairs of Ihe company and uf Ilie profit or loss ol the cornpany lor that period. In prep3riny Ihesc financial slalemenls, Ihe direclors are requSied lo,. selecl suilable Bccounlino pollcios and thèn apply Ihem consislenlly," make judgements and accountinu estlm8les Ihal are reasonable and prudent., stale whether applicable UK Acctrunling Slandaids have been followed, subject to any maleriel departures disc105ed and expl8ined in Ihe financial stalernenls- piepare tlie financial slatemenls on Ihe going Cgncein basi5 unless il is inappropiiale to presutne Ihal the company will continue in business. The (Sireclors are fesponsible loi keeping adequale a¢¢ounling records Ih21 are sufficient to show and explaÈn Ihe company's Iiansaclions and dis¢lose wilh reasonable accuracy al any limè Ihe financial posillon ol Ihe ¢omp8ny and enable them to onsuro Ihal Ihe financial slalemenls comply with Ihe Companies Acl 2006. They are a5s0 iesponsible loi safeguarding the 8s¥els ol the company and henee lor laking reasonable Steps for Ihe prevention and d&te¢lion ollraud and olher irregulaiilies. CARE HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARE HOUSING ASSOCIATION LIMITED Oplnlon We have audited the financial slalements of CARE HOUSING ASSOCIATION LIMITED (the 'GompaDII loi Ihp year ended 31 March 2024 which comprise the 51alemenl of income and retainèrl earning5, the balance sheet, Ihe slaiemenl of ¢ash flows and noles to the financial siatemcnts, Includin9 significant accounling policles. The financial ¥eporting Iramewotk Ihal h25 been applied in their preparalion Is applicable law and Unilgd Kingdom A¢￿untIng Standards, including Finan081 Reporting Standaril 102 Tho FlnanGial Repoiling Slandord appli¢sble in Iho UK and R8Ptiblic ollrfjl?nd Iunited Kingdom GenerallyAccèplèd Accounting S)¥aclicel. In ¢ur opinion Ihe finanelal slalem6nls-. give b Irue atsd fair view of the slate of thè company's affaiis as at 31 March 2024 hnd of its profil lor Ihe year then ended", have been properly prepared in a￿ordaNce wilh Unlted Kingdom Genèrally Accepted Accounling Practice, the Housing snd R8generalion Act 2008 and the Accounllng Direction for Pilvale Re9lStered Providers ol So¢Sal Housing 2019., and have been prepared in accordance wilh thè requiiomenls ol the Companles A¢1 2006 and the Houslng SORP.. 2018 Islalemeht of Recommended Piaclice for iegislered social housing provlders}. P851s for opinlon We conducled our audit in accoidanee with Internation81 Slandaids on Audillng IUKI {ISAs IUKII and applicable law. Our responslbililies under those standards are further described in the Aydiloffs r&sponsibililies lor the audit of Ihe fin8ncral sl8l&menls sectlon of ou¥ report. We ale independènl ol the company iii accordance wilh the ethical r8quiremenlS thal are relev8nt lo our audil ol the financial slalements in Ihe UK. including the FRC'S Elhical Standard, and we hav8 fulfilled Qui other 8ihlcal responsibilities in accordance wllh Ihese requiTements. We beli¢ve Ihal the audll evidÈnce we have obtained is suificient and appropriate lo provide a basls for our opinion. Conclusion$ relatlng to going Concern In audillng the llnancial slalemenls, we have concluded that Ihe diieGtor$' use ol the uoing concern basis ol accounting In the preparation ol Ihe financial $latemenis is appropilale. Based on the work we have performed, we have nol Idenli1I6d any fflaterial uncertainties relaling its èvenls or ondllion5 Ihal, individu8lly or collectivèly. m8y casl signifrcanl doubl on the coinpany's ability to continue as 8 going concein lor a period ol 31 least ￿e1Ve months from when thp ftnanclal slalemenls are aulhorised lor issue. Ouf re5ponsSbililies and tho responsibllitie5 of Ihe dlrèelors wilh re5pe¢l lo going concern are described kn the relevant sections ol this iepotl. Othpr Infoimation The other Inlormalion ¢ompilses Ihe *)lortn$lion included in the annual repori olher than the financial slalements and our audilorfs report the¥eDn. Tlie diredors Bre responslble for the other Inlormalion ¢onlalned within Ihe annual repotl. Our opinion on the financial stalemenls does not CDver Ihè other information and, except lo Ihe extenl olhenwise explicilly staled in our report, we do not express any form ol assurance conclusion thereon. Our responsibility is lo r8ad Ihe olher information 8nd, in doing so. consider whelhel Ihe other information is Inaierially inconsislent wilh the fin8llU81 $18lemenls or oui knowledge oblained in the cou15e ol the audit, or olhetwise appears to be malerially misstaled. 11 we Ideniify such maleiial inconsisien¢ies or appaienl material misslaternenl8, we are r@qulied lo determine whether this gsv¢s iise lo a malefial misslatemenl in the financial statements themselves. 11, based on the work we have performed, wè ¢onclude Ihal theie IÉ a material tn1551alemenl of Ihls othor inlormalÈDn, we are required lo report thal lacl. We have nothl¢)g lo ieport in this regaid. OpSnlons on other rEhittors prescrlbed by the Companles Act 2006 In our oplnion, b8s8d on the work undertaken the £ours¢ ol our audit.. the Inloimalion given in Ihe $lralegi¢ report and the directors, report lor the financi81 year foF which Ihe financial slalements ale prepared is consistent wilh Ihe financial slatemenls. and Ilie strategic reporl and the dii¢Glors' report have been preparad in accordance wilh applleable lègal 18qviremenls. CARE HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CARE HOUSING ASSOCIATION LIMITED Matters on whlGh WÈ at• rèquired to report by exceptlon In the fight of the knowledge and undeislandin9 91 Ihe cotnpAny and ils environmenl oblRined in the course ol Ihe audit, we have nol Identified maleiial mi$$lalemenls in the straleoic report or Ihe difectors, 18ptsri. We have nothing lo report in ￿Spect ol the following mallers In relallon io whlch the Companies Act 2006 requires us lo report lo yov If. In our oplnlon: adequate ac¢ounllng records hgve not b6en kept, or rÈlurns adequale lor our avdil have not been iecelved Irom branches not vislled by us.. or Ihe financial stalements are nol in aoreÈmenl wllh the a¢￿un11ng re￿[da and relurns., OT certain disclosures of dlieclor6' romuneralit]n specified by law are not made., or we have not received all the informalion and oxplanalions we require for oui audil. Ihe diteclors were not enli11gd lo prepare the financial slalemenls and Ihe d118clors' report In accordance wilh tlie small companies regime and lake advanlage ol the s¥nall cornpanles, exempllon5 In preparing Ihe dir8clors' Teport and Iiom the requiierrbPllt lo prepare a slralegic report. Responslblllties of dlrectors As explained mole lully In Ihfy diieclofs. résponsibililies slalemenl. Ihe directors are iesponsible for Ihe preparalipn ol Ihe financial slatemenls and for being salisfied that Ihey give a true and lair view, and IOT such inlernal control as thè directors determine is necessary lo enable Ihe preparation ol finallcial slatemenl$ that are fièp Irorn rnalerlal misslalemenl, whell)er due lo fiaud or Érrol. In preparing the financial sl8lemen15. Ihe dir8clois are responsible for assessiDg Ihe company's ability lo continue 8s a going concern, disclosing, as 8pplicablE, Inalters related lo going coneern and usinu the going concern basls of accounting unless the directors ellher Irilend lo liquidale the company or lo cease oppralions, or havè no realislio 8lteinative bul lo do so. Audltorfs respon$lbilitle$ for the BudSt of Ih? Ilnanclal stAtements Our objeclives are lo oblain reasonable assui8nce aboul whether the financial slaiemenls as a whole ale liee from matèrial misslaletnenl, whelher due Its fraud OT arror, ar)d lo Issue an audiloi's report Ihat includes our opinion. Reasonablg a8surance 1$ a high level ol a5SUfanc8 bul Ss not a guarantee Ih81 an audil conducled in a¢¢ordance wilh ISA5 IUKI will always delecl a maleiiÈl misslatemenl when il exi51s. Misst3lements can arise from Iiaud oi eriof anr> are consldered maleiial il, indi￿¢1￿allY or In the aggiegalp, they could reasonably be expected lo influence Ihe economic decisions ol v5eis taken tsn the basis of these fin8ncial slalements. Iiie9ularilies. Including fraud, are Inslaw£s of non-compliance wilh laws and iegvlalions, We desi9n proceduie5 In line wilh our responsibilities. oullineES above, lo delecl malerial misslalernenls in iespecl ol Irregulaiilies. including rraud. The exlenl lo which our wo¢edui8s ale ¢apablB ol delecling Iiiegularilies, inGludin9 fraud Is delalled below. 10 CARE HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CARE HOUSING ASSOCIATION LIMITED In response lo the risk of kregularilies and non-compliance with laws and regulallons. we deslgned procedui¢s which included, bul weie not limiled to.. agreeing financial slaternenl dlsck)sures lo underlyinu supporlin9 docum8nlalion'. reading the mlnuleg of Ineellngs of those charged with governance., Ènquiting ol management as to aclual and polenliol liligalion and ¢lalms: ond re￿8wing correspondence with HMRC, relevanl regulalois includino Ihe Health and Safely Ex¢oullve, and Ihe company'$18gal 8dvisors. Ther9 ale inherent Ilmilallons in our audit wocedures described abDve. The more removed Ihat laws and regulations are from firianci81 If8n50Ctions, Ihe less likely il is Ihal we woukl become 8w&ie of non-compliance. Audiling standards also lirnil Ihe audil prooeijures required to identify non-compllance wlth laws and regulalign$ t èn4ulry ol Ihe directors and olhei m8nagetnenl and the inspeclion of regulalory and legal corièspDndence. il any. Material misslatemenls thal ari5p due lo fiaud Gan be harder lo delecl than Ihose (hal &iise from e¥ror as Ihey rn8y involve dellbeiale concealmenl oi ￿llUSiOn. A lullher description of oyr responsibililie5 is available on the Financial Reporting Couneil's websile al.. hltps.'Il www.fic.oig.uk18ud5lorsrespon5ibilities. This de$criplk)n forms part of OUF auditor's report. Use of our report Thls lepori Is made solety lo the company's members. as a body. in acctsrdanca with Chapler 3 of Part 18 of the Companies Act 20Q6. Our audtl work has bèèn underiaken so Ihal we Inighl stale lo Ihe companys mèmbers those matlers we are required lo slate lo them in an auditorfs iepoti aftd lor no other purpose. To Ihe fullest extenl permillpd hy law, we do not accepl or assume responsibility lo anyono other Ihan Ihe CDmpany and the company'5 mombers as a body. lor our audit work, lor Ihis reporl, or for Ihe opinlons we have lormod. Philip Jone$ BA Hons IFCCAI ISenFOf Statutory Au¢Jltorl For and on behalf of Xoinadirt Audit Limlted Accountants Oale.. Rlverskle House King$ Reach Busine$s Park Yew Slieel Stockport Cheshiie United Kingdom SK4 2HD 12- CARE HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED> TO THE MEMBERS OF CARE HOUSING ASSOCIATION LIMITED The extent to whlch the audlt was eonsldfrred capablè of detectln9 irrègularltles includlng Iraud Our approach lo idenlifying and assessing Ihe risks ol malerlal mlsslalemenl in respect ol Irregulariliès. Including IraLsd and non-compliance wilh laws and regulalions, was as follows.. the engagement partner ensured Ihal the engagement team colleclively had the appropriale cumpetence. cap8bililies and Skllls to iilenlify OF recognise non-compliance with appli¢able laws and re9ulations'. we idonllfied the laws and regulations appliablè lo the company through discussion$ with dlreclois and other managemenl, 8nd from oui commercial knowtedge pnd Èxpetlence of Ihe compulei Gomponenl manufacturing and supply sector., we locused Oft 5peclfic laws and iegul¥lions which w8 consldered may have a direct matèrial effecl on the rin8nCI81 stalemenls or Ihe operallons ol the compariy, induding the Companies Act 2006, la¥alton legis181ion and dala proleclioTr, anli-brlbery. employfflent. enviionmenlal and hgallh and Safely legislation., we assessed Ihe extent of cotnplianee wilh the laws and regulalion5 identified above Ihrouoh making enqulries ol management gnd in5PeGtTng legg1 correspondence,. and identified laws and regulalions were Communicaled withln lh& oudil leam iegularly and the team remalned alert lu instances of non-compliance Ihroughoul th8 audit, We assessed Ihp suscepllbilily of the company'8 fman¢ial slolemenls 19 malerfal misslalement, inoludino oblaining an understanding of how Iiaud mlghl occui, by.. making enqviries ol managemonl as to where Ihey con5￿dered there was $u5eeplibilily lo fraud, thelr knowledge ol aclual, suspected aiid alleyed fraud,. and considering Ihe internal ￿nI￿OIS in plaGe lo miligate iisks ol fra￿1 and non-eompliance wilh14ws and ￿g{lIatIOnS. To address Ihe fisk ol Iiaud Ihiough managemanl bias and Oveffide ol controls. we.. performed analylical plocedures lo idenlily any unusual ar unexpected relallon8hips'. lesled journal enlrles lo identify ynusual Iran8aclions'. a$ses5ed whelher judgemen15 and assumptions made in deterM￿l￿g Ihe aceounllng e3limale5 were indicative of polenllal blas., and investlgaled the ralioaole behind significant or unvsual liansa¢lwns 11 CARE HOUSING ASSOCIATION LIMITED STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Turnovef Cost of sales 7,081.475 (4,450.7831 5,650,655 {3,889.5111 Gros$ profit 2,630.892 1,761,144 AdminÈslialiv8 expenses Olhw operating income 12.182,9701 25,883 (1.655.78ei 18.190 OpeTating pront 473,60S 123,548 Inl¢iesl recelvable and similar income InlerÈsi payable and similar oxpenses 5,211 1117,3191 1,271 {98,8011 Profit b¢fore taxation 361,497 26.018 Tax on profil Profit for tho Ilnancial year 381.497 26.018 RelalTred earnings brou9ht lotward as pre￿oUSlY repotied 3,115.747 3.237,866 13- CARE HOUSING ASSOCIATION LIMITED STATEMENT OF INCOME AND RETAINED EARNINGS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notès Reslglowonl ol fetalned earnings 1148,1371 Relalned e3rnln9s carrled forward 3,477,244 3,115,747 The profil and10ss 8¢¢0unl has been prepaied on Ihe basis Ihal all operations are ¢ontniulng opèrallons. 14 CARE HOUSING ASSOCIATION LIMITED BALANCE SHEET AS AT31 MARCH 2024 2024 2023 Notes Flxed assets Tangible agsels 7,326,040 6.849,639 Current assets Debt￿$ Cash 81 bank and In hand 10 2.220,424 1,089,148 71rJ,975 1,434,273 3.309.572 2,145.248 Credktors: amount5 falllng duo withln one year 11 12.096,0671 1978.9591 Net current assets 1,213,505 1,16S.289 Total assets 1gs# current Ilabilities 8,539,545 8,015.928 credli0￿. amtsunts falllng du• aftor more than one ypar 12 15,062,298) 14,900,179} Net assets 3.477.247 3,115,749 Capltal and roseNes Called up shale capilal Prr>fil loss reserves 15 3,477,245 3,11S.747 Totsl equlty 3.477.247 3,115,749 The financial slatemen15 were appiov8d by Ihe boaid ol diKeclor$ and aulhorised fof issue ori arg 51gned on its bghall by.. and Mi R Parr- Chair M5 N Khan- Vice Chair Company Rogi5tratlon No, 04653659 15- CARE HOUSING ASSOCIATION LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Nota$ CaBh flow8 from operatlng actlvltles Cash generaled from operglions Interest pald 16 424.772 1117,3191 1,074,422 198.8011 Not cash Inflow from opèratlny activitiès 307.453 975.621 Investlng acllvltlès Purchase ol langible fixed assels Inleresl received 1636.4221 5,211 11,169,840) 1.271 Ngt cash v$ed in Investing activltleB (631.2111 11.168,569) Flnanelng acfivilies Repayment ol bank loans 121,366} 142.9291 Net cash used in flnanclng activSt1&5 121,3661 (42,9291 Net decre48g In Cash and Cash equiv4lenls 1345.124 1235.8771 Cash and cash equlvalenls al beglnnlng ol year 1,434.273 1.870.150 Cash and cash Èqtslvalènts at end of year 1,089.148 1.434,273 CARE HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Aecounllng policiès Company 5rtformatlon The company is a privale comparsy limited by share capital incorporated in United Kingilom. The kddiess ol ils fegislered office is.. Riverside Hovsè Klngs Reach Business Pa Yew Streel Stockport Cheshire SK4 2H The prlncipal Pla￿ of business is.. Suite 29 Hardmans Business Cenlre New Hall Hey Road RawtenslaH Lancashire BB4 6HH 1.1 Accountlng conventlon Summary of slgnlllcant acGuunting pollcles and key acGounllng estlmates Tho prill£ipal accDufbling policies applied in the prepaialion ol these fin8nGial 5tatprnenls a￿ sel out below. These policies have been consisleniiy applied to all Ihe yeats pieset)ted. unless olheTwise staled. The financial slalemÈnls havè been prepared undei the hlstorlcal cosl ¢onv&nlion The pfin¢ipal accounling policies 3dopled are Sel oul below. Statement Df compllance These financial slatemenls were prepa￿￿ in a￿oIdanCe with Finaft¢ial Reporting Standard 102 The FinRncla1 Reporting SlandArd applicable in Ihe UK and Republic t)1 Ireland, and in awoidance wilh the Housing SORP.. 2018 Islatemenl of Recommended Piaclicp IDr fegisleled soeial housihg provideis) Pasi5 01 preparallon These financial slalements have bEen Pfepared using the hislorlcal cost convenllon except Ihal as disclosed in Ilie accounting pollcies certain ilern5 ale shown al fair value. Care HousingAssociatlon Limiled is a publio benefil enlily in accordance with FRS 102 paragraph 3.3A 1.2 Going concern Al Ihe lime of appiovlng the fmancixl slalemenls, the dire¢lorg have a ¥ea$on3ble oxpeclallon tlial Ihe company has adequate resources lo ¢onliiiue in operational existence for the foreseeable fvlure. Thus the diieclor3 conlinue lo adopt the going concern basis of #cctsunllng In preparing the finandal slalemenls. 17. CARE HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcles Icontlnuedl 1.3 Turnover Tuinover comprises Ihe fair value ol the rental income iecelved or recelvable for the pfovislon of servlcès i Ihe ordinary course of the Company's acilviliès. The Company Tecognises revenue when.. The amount Of rèvenu8 can bè reliably m8asurÈd,. il is probable Ihal luluio economi¢ benofils will flow lo the enlily,, and speafic ¢rileNa have been mel for aach ol Ihè Company's acliviltes. More specifically Ihe majority ol income is received via houslng benefll fiom local zulhorilies. Th8 rental income is received in 4 weekly teims-, therefoie, Carè Housing Association rècoonlsés incom8 on a 53 week peiiod. In these a¢counls the peiiod is from 24th Mor¢h 2023- 31st Mar¢h 2024. Olher Income that Is invoiced lor void occup8ncy 15 recognised up lo 31 st March 2024. 1.4 Tonglblc ￿xed asscts Tanglble assets aTe Staled lfi thè glalemenl oi fin¥n¢ial position 41 tosl, lèss any 8ub88quenl ac¢urnu181ed depre¢ialioF> and subsequent ac¢umulaled impairment losses. The cDsl of tangible asse15 includ¢s directly allribu18ble incremenlal co$ls incvrred in Iheii a¢q(tisilion and Inslollatton. Depreciation is recognised so as to wrile off Ihe cost Dr valuation ol assels less Iheir residual values over their usÈful lives on Ihe following b3se5'. Land and bulldlngs Leasehold coslg Freehold Buildin9s- Slructure FTeehold Bvildiiigs- Kil¢hen Flxluies and fillings Compuler eouiptnenl Freehold Bulldinus- Healing Freehold Buildings- Boller Freehold Buildings- Wndows Freehold Buildlng Rool Office equipment Term of lease Wfillen down value 100 years 10 years 15 ye8r$ 30 year$ 30 years 10 years 25 years 40 yea15 33PA VWiltÈn down valu The gain or loss arising on the disposal ol assel is determined 8s Ihe diffèrence belweèn the sale proceed5 and the carrying value ol lh8 ?5sel, and is cigdiled 01 chaiged to profil or105S. 1.5 Cash and Gash gqulval8nts Cash and cash equivalenls comprise cash on hand and Cèll deposlls. and other short-temi highly liquld inveslmenls Ihal ar8 r&adity coiiveriible lo a known amounl ol cash and are subject lo an instgnificanl risk ol change in value. 1.6 Flnanclal In5trurnents Clas$lflGatlon Flnan¢ial inslrumènls arè elasgifled loi. accordlng lo the subslance of the contraclu818yreem8nl, as flnanGial assets, financial Ilabilities or eouily inslrumenls. 18- CARE HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) Fairvalue measurement of linanclal instrumgnls Re¢Dgnlflon and measuremeni An eqyily inslrurnent is any conlacl thal evldences a residual Interesl in Ihe assels of the company after dersucllng all ol ils liabililies. Where shares are i&sued. any cotnpon¢nl Ihal creates a financial liability in thg balgtice sheet. The CDrresponding divldends relating lo the liabilily cotnponenl ale rhaigod as inleresl expense In the PTofil and loss a¢counl. Ba•1¢ flnanclal asséis Basic financi81 assets, which Include deblors and cash and bank balances. are initially measured al transaction prKe including trarksaction cosls and ale sub5equenlly earned al amortlsed cosl using Ihe effectiv8 interest melhod unless the arrangemenl ¢onslilules a financing Iians8clion, where the liansaclion is measured al fhe presenl v81ue of the fU1u￿ receipls discounled al a market rale of inleiesl. Finan¢i81 assols classified as ￿ceIVable within one year are not amortised. Trade debto Trade deblors ale amounts due from Customers fo¥ mer¢handisè sold or gtrvicos p6rfoimed in the ordinary course of busine8$. Trade debtors are reeognSsed inttially al the Iransaclion price. They are subsequèntly measvred at amortlsed Gosl using the effe¢live inleiesl melhod, lesg provision for impairment. A provision lor Ihe impairment ol trade debtors is established when Ihere is objeclive evidencè Ihal the company wlll nol bè able lo collecl all amounts duè ac¢ordtng lo the original lerms ol Ihe receivables. other linantlèl èsseis Olher financial assets. including inveslmenls in equity Insliumenls whlch are nol svbsidlaries. associate5 or joint veiilure5, ale inilialty n)ÈÈgured al faw value. which is normally Ihe Ir8nsaolion price. Such as5els are subsequently carried al fair valuo and the changes in fair value are recognised in profil or los$. except fh£l InveslmÈnts in èqulty inslrumenls Ihal ale nol publicly Iiaded and whose fall v£lues canno( be measured reliatsly ale measured al cost le55 ImpalrmEnt. ImpairnTent of Ilnanclal assets ImpairnTent Financial instruments ale revlewed Bnnually lor any change$ In valuo andlor wriiien dowt)11 Ihey ace Impaiied. Derecognition of Ilnan¢Aal asset$ Financial assets are derecogni&ed only when the contractual rights lo the cash flows fiom the 8s$el èxpire or are sbtlled. or when Ihe company liansler8 lh8 fit)ancial assel and substantially all the risks and rewaids of ownership to anolher enlily. or il sotn¢ s¥gntficattl iisk$ and rewards of owneiship alè Telained bul conlrol ol the asset has Iranslerred to another party Ihal is able lo sell Ihe assel in ils enllrely lo an unr¢laled Ihiid party. Classili¢alion of fin8n¢lal Ilthbllltles Flnanclal liablldies and equity Instfumenls are classln&d aceordlng lo Ihe substance ol the conlractual arr2n9emenls entered into. An equity inslfumenl is any conliacl Ihal evidences a iesldual interest in the assels ol Ihe company aflei deducting all ol Ils liabililies. Trado creditors Trade ¢r¢dilors ale obligations lo pay lor goods or services Ihal have b¢en acqulied In Ihe ordlnary course of business from supplieFS. A¢counls payable are Classified a5 ¢urrenl liabililies if th8 compar*y does nol have an uncondlllonal rlghl, al the end of Ihe reporting poiiod. lo defer selllemenl of the cfedilor lor al leasl Iwelv8 rnonlh$ 8rter the reportino date. If Ihere Is an unconditional righl lo defef S&tllemenl lor at least Iwelve months after the reporting dale. Ihey are presented as non-cucienl liabilities. Tiade ￿ed￿lO[S are r¢cognised Inillally al Ihe transaction price anij subsequently measured al amortised co$1 using the effective inler¢$l method. 19- CARE HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 PAARCH 2024 Atcountlnu pollcle5 (Continued) Olher financlalli8bilities DerivatlV85. Includlng Inlpr681 iale swaps and forward lorelgn exchange roThlraels, are not basic finandal Insliuments. Derivatives ale initially recognised al f&ii value on the dale a derivative ron1I3cI is enlered Into and ale subsequenlly re-measured at their falr v81ue. Change5 in the fall value of derivatives are recognlsÈd In profil 01 Ioss in finance ctssls or flnance Income as appropriale. unle8$ hedge #ceounllnglg applied and the hedge is a Cash Ilow hedge. Debt inslrumenls Ihal do not meBI the ccndilk)ns in FRS 102 paiagraph 11.9 afè subsequently measured al f8ii value Ihrough profit or loss. Debt inslfuinenls may be designated a5 belny measuied al fair value through profil or loss to 8litninale or red4Jce an bccountlng mi$mal¢h or il Ihe inyliumenls Ère measured and Iheii performance evalualed on a lair value basls In accordante with a docurnenled risk managemenl oi inve8lfflent slialegy. D*re¢ognlllon of finan¢lal Ilabilities Financial liabililies are dere¢ognispd when Ihe companls conlraclual obligalions expire 4T ar6 discharged or cancelled. 1.7 Retlrement bènelits A dÈfined conlrlbulion plan Is a penslon plan Etnder which fixed c¢)nlribulions ale paid Inlo a pension fund and the company has no leg81 or conslruclive oblrgaliDn lo pay lurther conlribulion5 even if the fund doe5 not hold sufficlenl assels to pay all employees Ihe b8tl8fils relaling to employee service in Ihe Curienl and prior periods. Conlrsbulions lo defin&d conliibulion plans ale iecognised as employee benefit expense when they are due.11 contr1b￿1tsn paymenls exceed Ihe conliibulion due for service. the èxcess Is iecounised as a prepaymenl. 1.6 Govèmmènt grants Goveinment grants are iecognis8d al the fair value ol Ilie asset recelved or ie¢elvabl8 whèn there is reasonable assurance Ihal Ihe gfanl conditions will be mel and Ihe oraftls will be Feceived. A Qiant thal specifies performance conditigns is reeoynlsed in Incoine when Ihe perfoitnance eondillons afe I￿et. Where a grant does not specify performance condilions il Is re¢ognised in income when the pro¢eeds 8re received or receivBble. A grant recelved belofe Ihe ieco9nilion ciit81ia are 581isfied Is fecognised as a 1.9 Share capital Ordinary shares are classified as equily. Equily in&lrLtm8nts are mèasured al the fail value of the cash or olher resources rèceived tsr reeeivable, nel ol the diTect costs gf issu4ng the eqully Inslruments. If payment Is deferied and Ihe lime walue of money is malerlal. the Inilial measu¥emenl Is on a we5ent value basis. Judg•mgnts and key sources of e$llmation unr8rtainty In the application of tho wmpany's accounllng pokci95, the dtrector8 are requirèd ID make li￿gementS, esllmales and assumptions about Ihg cairying arnounl ol as5els and liabililiÈs that ale not readily apparenl Irom othei sources. Thp eslimales and associAtÈd assumptions are based on hislorfcal expeilence &nd olhol factors that ale ¢on5idEred lo bp relevant. Aclual resulls may difler from Ihese estimales. ThB eslimalgs and underlying assumptions ale r￿leWed on an ongoing bagi5. Revislons to aCGounling stimalès are recognlsed in Ihe period in whlch Ihe esllrnale Is revised where the revision affBcls only Ihal pérlod. or In tho period ol the revision and luluie periods where the revlslon affecls bolh Eurrefii and fuiure periods. -20- CARE HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Judgements and kèy source5 Df estlmolion uncertalnty {Contlnu¢dl Opernting lease ¢ommltmènts The company has enleied Inlo a number of operating lease5 which il oblalns the use ol. The classifi¢ailon o( such leases as operaling or finance lease requlres th& Company to deteirnine, based on an evaluation ol the lerm8 and conditions ol the aTrangemenls, whether il retains ai 8cquires the slgnlficani Tlsks and rewards of ownership DI Ihese assels 2nd aceoidiiigly whelher the lease requires an asset and liabilily lo be recognised in the slal&menl of financlal posilion. Turnov•r and other rèvonu 2024 2023 Turnover arjalysed by class of busine86 Renlal income Other income 6,844,672 236.804 5,615,990 34,666 7,081,476 5.650.655 Analysis persfatutvry database Slatulory database analysis do¢s no¢ agree to Ihé trial bal&n¢e by.- 7.081,476 5.650,656 2024 2023 other revenue Interest income Giants rèceived 5.211 2S,883 1.271 18.190 Operating p¥ofit 2024 2023 Opeialin9 profil for thè year is staled after chaigingllcrediling).. Governmenl granls Fees payable lo the companls èudilor lor Ihe audit of Ihp company's financlal statements Depre¢ialion ol owned lanuiblÈ fixèd assets 12S,883) (18.1901 6,918 160,022 6.918 128.346 Auditor's remuneralion 2024 2023 Fees payable Its ihe company's avdiloi and asso¢iales'. For audlt setvi¢e$ AudTrl of Ihe flnan¢ial slatemenls of the company 6,918 6,918 For olhèr setvlce5 All olher non-audil Se￿1¢0$ 12.948 14,088 21 CARE HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Employees The aver8ge monthly nutllber of pgrsons employed by Ihe company during the year was.. 2024 Numb8r 2023 Number Adminislralion and support 14 13 Thelr aggre9ale rgmuneiallgn comprised.. 2024 2023 Wagos and salaries Soclal securily costs Pension cos13 493,248 47,606 22,867 448,417 43,617 19,938 563.741 511,972 The iemuneration p31d lo key manaoemenl In Ihe year was £101,77612023'. £100,313) including beFipfil In kind pgymenls plus £3,14112023'. £5,306) rn employers pension conlribulions. Interèst p#yable and slmilai e¥pen6es 2024 2023 nlerast on flnanclal Ilabllitles mea5Lsr&d at amorused cost: Other inleresl on financlal liabililies 117,319 9B,801 Intere8t fecelvable and Blmllar incom? 2024 2Q23 Interest incom& Inleresl on bank depo$il$ 5,211 1.271 -22- CARE HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Tanglblè fixed a$$ets Land aRd bulldlng$ Lpa$ghold Flxtures a lfjttlng$ compuièr Total Cost Al l April 2023 Addibons 7.065,997 520,741 267,770 43,442 213.923 52,320 22,862 7,570,552 79.919 636,422 Al 31 March 2024 7.S86,739 311,212 266,243 42.781 8,206.975 D&pm¢lallon and impalrment Al 1 April 2023 Deprecialion charged in the year 4eo,929 103.264 107,110 21,689 138,977 30.726 13.897 4.343 720,913 160,022 Al 31 March 2024 564,193 128,799 169.703 18,240 880,935 CarryFn9 amount Al 31 March 2024 7,022,546 162.413 96,540 24,541 7,328,040 At 31 Maich 2023 6.605,068 160,660 74.94fj 8,965 6,849.639 10 Debtors 2024 2OZ3 Amounts falllng wlthln one year- Trade dgbloTS Olher dtrblors Piepaymenls and aecrued Income A¢ciu8d income 227.278 12,363 1,789,259 191,524 138,892 558,725 13.358 2,220.424 710,975 11 creditors: amounts Yallino dug within one year 2024 2023 Notes Bank loan5 Trade creditors Taxalion and soclal security Accruals and d&ferred income 13 44,777 1.839.654 11.5621 213,198 6,028 825,492 10,OS8 137,381 2.096.067 978.959 .23- CARE HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 12 Grèdltors.. amounts falllng duè after rno¥e than one year 2D24 2023 Note5 Bank loans and oveidiafts Other Cfedilors 13 1,728.882 3.333,416 1,786,997 3,111.182 5.062,298 5,695,744 13 Loans and overdrafts 2024 2023 Bank loans 1.773,659 1.795.025 Payable within one year Payable aller one year 44,777 1,728,882 6.028 1,768,997 Thè bank loans are $8¢uied by a le9al charge over 14 Daybrook,Skelmersdale. 34 Fariingdon Road, Warringlon, 519 Hempsh3w Lane Slockport, 48 Ebdale Close, Stockport. 16 Corinlhi8n Avenue, Liverpool. 148 Nanureave Road, Slockport, 6 Bangoi Road, Cheadle, 18 Hertlord Close. Warfrnglon. 2 Savgrnake Road, Slockporl, 31 S(Fmmeibrldgo Cr8seenl. Bradlord. 6 Lindbury Avènue, Stockport, Flals 1-9 Victorla G8rdeDs, Clilheroe. The ¢umulatlVg C8pilal repayments altèr 5 years are £1,559,034 and the interest rale on Ihese r6p8ymenls ale 2.5°k atx)ve Ihe Bank of England base iale. 14 Penslon 5cliernes 2024 2023 Oelinod ¢()ntributFOn s¢hemes Charge lu profil OF10s5 in respecl of definEd ¢onlribullon schemes 22.887 19,938 The Company operales 8 deflned Conlribuliors pension scherne lor 811 qualifying employeès. The assels of the sclieme are held separalely from Ih05e of IIIE cofftpany In an independenlly adminlsl6red fund. 15 Share capltal 2024 Number 2023 Number 2024 2023 Ordinary $haro capltal l¥$uod and fully pald 175 011peach 175 175 -24- CARE HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 16 Conllngent liablities Rental Income Included Sn Ihe rentol income collected by Ihe associalion is a pèrcentage fel8ting lo future voids. Thi5 element is deleired in Ihe finanrial stalemenls and will b8 iéleased lo Ihe profil and loss a¢¢ounl as and when a void ari$es. If, al the end of the agreement period, any of the defeTred renlal in¢ome for propertles wilh Lancashirè County Council is nol released lo Ihe profil and 1058 account, one Ihlrd of Ihe balancè is payable to L8ncashtrre Social Services. This amount per Ihe void provision at Ihe 31st Marcli 2024 is £188,99812023". £146,746). Du? lo Ilie nalure of the agrewnenls there Is a possibl# 118n51er of economlc benefits, of which the gmovnl rem8ln8 uncertain. The management agreemeftls are in place for 10 or 15 years from whefi Ih8y commenced and are linked lo the piopgrties on an indlvidual and property by prop6rty basis. Grants Within other ￿dItors more Ihan one yeèr is a secood gfanl Ihal was Issued to Care Houslng whlch was in Ihg year endetl 31st MarGh 2017, This was 8180 used lo purchase a piopèrty for individvals with learning disabilities lor such other need5 as are agreed by NHS England). The Icrms ol Ihe giant slipulale (hal il Ihe properly is sold the grant is repayable, unless N14S En9land waiver ils right to repayment. NAS England have 1st legal charge ovew the Property. This is released using tho accruals modttl In 8(￿ordanCe W￿th FRS102 due lo Ihe clause. During 2020 a third gr811t was Issued by NHS England wilh the 58me lerrns a8 Ihe above NHS grant. The granl was issued for £419,000 Sn 2020 with ? further £98,819 being issued in the 2021 year end. During 2021 a fourth granl w85 issued by NHS Englan