Charlty regislrallon number $15591 Company registrallon number 01844549 (England and Wale5) HOYLAKE COThAGE ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 HOYLAKE corrAGE LEGAL AND ADMINISTRATIVE INFORMATION Trustees MrsA Heseltine Mr S Heywood Mr R Holmes Mr A Mitchell Mr R Oakden Mr J Southworth Mr M Sutton Mr G Cooper So¢ralary Mr S Heywood Charity numb•r 515591 Company number 01844549 Registered office Southworth House 35 Blrl(enhead Road Hoylake Wlrral Mersey8ide CH47 5AQ Auditor Xeinadin Audit Limited 46 Hamilton Square Birk8nh8ad Wirral Merseyside CH415AR Bankers National Westminster 10 Banks Road West Kirby Wirral Mers8ysida CH48 4LG Royal Bank of Scotland 1 Exchange Flags Liverpool L2 3XN Sollcltors Hill Dickinson 1 St Paul's Square Liverpool Merseyside L3 9SJ HOYLAKE corrAGE LEGAL AND ADMINISTRATIVE INFORMATION Solicitors Brabners LLP Horton House Exchange Flags Liverpool Merseyside L2 3YL HOYLAKE corrAGE CONTENTS Page Trustees, report Statement of truste8s' responsibilities Independenl 8udltor's report Consolidated statement of financlal activities 11 Consolidated balanc8 shaal 12 CharSty balance sheet 15 Consolidated statsmenl of cash flows 14 Notes to Ihe financial statements 15-33 HOYLAKE corrAGE TRUSTEES, REPORT {INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their report and consolidated financial statements for the year ended 31 March 2024. The ￿nsO11d81ed financial slalements have been prepared in accordance wilh Ihe accounting policies set out in nole 110 the financial statements and comply with the charivs Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities.. Slatem@nt of Recommended Practi￿ applicable to Charities preparing their accounts In accordance with the Finan¢lal Reportlng Standard applicable in the UK and Republic of Ireland (FRS 102). (as amended for accounting periods comm8ncing from 1 January 2016) OBJECTIVES AND ACTIVITIES Purposp and aims The Trust's objects as slated in the Memorandum ofAsso¢lalion a￿. "The relief, care and assistance of older persons and provision of facilities in the interests of social welfare for recreation and leisure time occup81ion for the benefit of older m8mbers of the communty and in p8rticular but without prejudic8 to th8 generality of the for8going, wlth the object of Improving the condition of lif8 of the older inhabilants of the community." Charitable activltles that contrlbute to achlevement of the Trust's objects The Trust's prlncipal aclivities are provision of 24 hour nursing, dementia and resplte ￿re for older peopl8 who are unable to supporl themselv8s at home or in other care services. These services comprise almost 85% of the Trust's activity. The Nursing Home, whlch is reglstsred with the Cere Quality Commi5slon, comprlses 62 rooms, of which currently 22 are for residents who suffer from dementla and 40 are for general nursing and respite care. The Day Centre offers 25 places a day for older people and those wllh dementia or mental health problems. Brookfield Homecare Limited offers domiciliary care services to approximatély 80 local residents, providlng soma 500 hours of care each week. but with the opportunlty to substantlally increase care hours delivered as local demand exceeds the avallable supply. How our activlties dellver publlc beneflt Our purpose is lo offer services to the local community that are affordable and relevant lo their needs. We do this by m8n8ging efficiently our expenses on day-to-day operations but in 8 manner which is consistanl with our objective of providing tho high quality care for which the Trust is recognised. Feè increases, whilst unwekome, are necessary lo meet rising costs due lo regulatory Complian￿, inflation and to maintain ccmpelitive salary levels for our staff. Fundraising activilie3 are used malnly to fund capltal expendllure whlch means that fee8 for 8eryi¢e8 can be get at a Iow8r18V81 than would othemise be the case. Servi¢e$ such as nurslng respite care can be made available regardless of the beneficiary's financial means. Decisions that would be judged uncommercial are also possible wilh support from fundr8ising activities and generous donations fram supporters and the local community.. for some Ilme the Trust has provided day care services for those suffering from dementla at fee8 that do not COV8r the cost of Ihair provision Ihe premises used for the day centre have been extensively refurbished in the recent past a sensory garden was created for residents of the nursing home to enjoy. HOYLAKE COTTAGE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE Occupancy al the nursing home rem8ined high during the year, influenced by a substantlal incr8as8 in NHS funded residents to assist in relieving pressure on local hospitsls. F6es were 12Yo higher due to both higher occupanGy and higher fee8 offered by the NHS and local governfflenl and after an increase in fees Charged to self-fundad resid8nls, the latter numbers being a little lower than in previous years. Staff recruitment remained challenging against local competition despite increas8s in Staff remuneration - local evidence suggested that was affecting all healthcare businesses. Overheads increased falrly substantially, especially food 11 %, insurance 10% and bank interest charges by 50%, the latt8r du8 to the rnuch increased base lending rate, Attendance at Ihe Day Cenlr8 was slightly lower than last year although fees were a little higher after 8n increase in charges and as a result, operating expenses w&re barely covered by income receivad, A surplus of incom8 over expenditure of £172,000 w88 achieved, of which Brookffeld Homecare conlrtbuted £17,000. FINANCIAL REVIEW Hoylakg Cottage The results for tha year and the Trusvs financial posltion at tha end of the year are shown on th6 attached financial ststernents. The Trust's 8lrat8gic aim is to recover the full cost of saNices from operats'ng income. It 18 accepted that this may not always occur wilhln a slngle financial y8ar. Fundralslng Is used generally lo fund non- operational activities. Brookfleld Homecare Llmlted 8rookfield Homecare had a very satlsfaclory year due malnly to a substantial increase Sn referrals and thus fees, from Social Servicas who are now our main client. Staff pay lavels were Increased, as required by Social Services to comply with their contract, but despite thal increase, staff recruitment remained very difficult impeding our ability to meet increaslng demand for services. Our staff worked extremely hard in an endeavour lo meet the demand but our ability to fully achieve that and grow the business is limited by staff availability. Fundralslng and other non•charltablo actlvlty Incom• Donations were higher Ihan Ihe previous year but we did not benefit from legacies and grants which amounted to some £64,000 last year, HOYLAKE COTTAGE TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Rosarves policy The Consolidated Balance Sheet of Iha Trusl shows Unrestricted Funds of £4.111,049 an increase of £170,693 which Included Ihe surplus on activities as well as Unrestricted Funds at Brookfield Homecare of £88,252. The Trustees regularly review the Trusfs needs for Reserves in line with guidance issued by the Charity Cornmission. The Trustees, policy in respect of Reserves is that minimum Reserves of £250,000 are required to fund working capital requirements. Reslrictod funds shown in the Balance Sheet wer8 £32,720 and represented donations for specific purposes which were unspent al the year end. These funds wlll be used for their intended purpose a5 soon as It Is appropriate to do so. At the balance sh8el date. free reserves were £314.736 and free cash reserves were £283,144 which the Truslaes consid8r acceptable. Funding sourG¢s The Trust's working capltal requirements during tha year w8r8 adequalely funded from cash generated from busines$ activities supported by the 2 long term loans from Royal Bank of Scotland. The new nursing home loan. originally repayable over 20 years from 2008 has been substantially ￿duCed and repayments on tha Coronavlrus Business Interruption Loan which was required to fund the deficits incurred during the pandemlc, started in June 2022 over 2 5-y8ar temi. At the end of the financial year our bankers agreed to amalgamate bolh the loans and extend the repayment perlod to the original 20 years lo reduce the repayments as the Coronavirus Business Interruption Loan. repayable over 5 years. wa8 placing a strain on cashflow during our recovery from the effects of the pandemic. Inv•slmont Poli¢y Under the Articles of Association the Trust has the power to make any Inveslrnent the direclors see fil. Th8 investment portfolio was realisad to fund tha businass during tha pandemic. Cash generated from normal Charilable activities and donations is needed to fund ongolng worklng capltal requirem8nts so further longer temi investmenl is unlikely at presenl. Principal risks and unc•rtaintio9 The rnain operational risks for the Trust which have influenced decisions in the currenl and prevlous years are: changing govgmmant policy towards long term care funding which has led Io 8 rise In domlclliary care, Can have the effect of reducing demand for long term nurslng care. This 15 matched by an increasingly ageing population which potentially increases demand. The effect of these hvo factors together is, howaver, that our rasidents are more d8P8ndent at admission, and their length of stay with us tends to be shorter, which leads to higher cosl and lower overall occupancy, This has been especially true over th8 last 3 y8ars.This risk has been mitigat8d to some 8Xtent by increas8d demand for services from the NHS emanating from their need to move people with long term illno$s and disability to care homes. an increasingly demanding regulatory environment with insufficient recognltlon of the cost of m88ting Ihese demands. annual Sncreases above inflatlon In National Minimum Wage and the more recent introduction of Natlon81 Livlng Wage whllsl much needed, have been implemented without acceptance of the full impact that has had on th8 car8 industry and has not lad to a r8alistic incr8asa in stat8-fund8d f88s for nursing care . budget conslralnt within local & ￿ntral goveinment affecting ability to fund nurslng cara places. local competition for nursing and day care accompanied by withdrawal of local govemment grants previously supporting these services. Managing these risks is challenging for a re181ively small charity. In recent years the Trustees. m81n concern has been to ensure financial solvency making cash g8nar21ion and cash liow management an integral part of financial control. The acquisition of the Brookfield Homecare business has provided an opportunily to offset periods of lower occupancy in the nursing home with growth in incom8 from doffliciliary care which is. currently, where investment in the care sactor is being encouraged. HOYLAKE corrAGE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Post balance sheel events & plan$ for future perlods Occupancy at the nursing home further increased during the firsl half of the year mainly driven by increased demand from self-funded residents although the NHS continued lo plac8 substantial numbers of residenls wilh us. Staff salaries increased substantially following the increase in minimum wage to which staff pay is linked diractly or indir8Ctly. We also had high ag8ncy staff charg8s du810 contlnued recruitment difficulty. The Trust has continued to geneTat8 U6eful monthly Surpluses and the trustees expect that to continue for the remainder of the year. We have also been Infomied th81 tha Trust will b8n8fit from some legacies. although liming of r8C8lPt is uncertain at present and may not arise before this year end. STRUCTURE, GOVERNANCE AND MANAGEMENT Legal StruGtur• Hoylake Cottage Ilhe Trust.) is a charitable company limited by guarantee incorporated In England on 30th August 1984 and is established under Articles of Association which s81 out its objectives arKJ powers and how it 18 governed. There are no activities outside England. It is managed by a Board of Directors ("the Board") whose members are the directors for the purposes of Company Law and charity trust88s for the purposes of Charity Law. On11th March 2019 Hoylake Cottage acquired the entire issued share Capital of Brookfield Homecaro Limitad. The subsldlary was registered as a charity on 1st November 2019. The Trust Board of Dlrectors The Board currently comprises 8 Trustees and norm811y meets monthly. The Artlcles of Association specify that the Board Should comprise a minimum of 5 and a maximum of 20, the idaal number is conslderad to be 8 - 12. The Arti¢les of Association permit 'virtual' 8oard meatings, which facillty ha8 been used effeGtlvety when necessary. TTuslee$ are carefully sele¢ted to ensur8 that they hav8 the necessary skills and experience and are wllllng to attend regular Board and other meetings. New Trustees are briefed on their legal obligations, the committ88s and decision-making process and the buslness plan and financial performance of the Trust. Trustees ar8 818cted lor re-elected) in accordance with tho Trust's Artl¢le$ of Association at its AGM. Management Oay-to-day operatlonal management is und8r the control of the management team comprising the Finance Manager, the Business Manager and the Care Manager who are responsible to the Board. They attand meetings of the Board to ensure that the Trust's objectives continue to be met. Operational d8cision-making is delegated by Trustees to the management team, including financial transactions that are within the annu81 budgels agreed by the Board and monilored in both formal and informal meetings by members of the Board. HOYLAKE COThAGE TRUSTEES. REPORT (INCLUDING DIRECTORS'.REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The trustees. who are also the directors for tha.pUr￿Se of company law, ￿ who ser4ad durlng the yearand up to the date of $i9natur8 of th6 financl81 statsmenls weie: MrsA Heseltlne Mr S Heywcod Mr R Holme8 MrA Mitchell Mr R Oakdén Mr J Southorlh Mr M Sutton Mr P Wmlcox Mr G C¢Jop8r Dr. R Stokell (Reslgned 17 Awll 2023) (Appointed 28 July 2023 and resignod 15 S8Ptember 2024) Pay policy for key managemont personnel The director8 conslder the senlor management tpam compriso the koy managpment pgrsonnal of the charfty In harge of controuing, rurjnlng and operatlng fhe Tru8t on a day to day basis. The pay of the 8&nior staff Is review¢d annually and nom?*ty in¢rea88d to the same extent as the rést of th staff. All the (firectors glve of thelr tirne freety and no dire¢tor received remuneration in his capaaty a8 a director in the year. Dlsclosure of Intonmatlon to auditor Each of the trustees has confirmed that there is no infomiation of which thay are aware vthich 18 relevant to the aud¢ but of which the auditor Is unaware. They have further confirmed thal they have taken approwlats steps to Identify such relevant Information end to eslabllsh that the audltor Is aware of such Infomiation. The trustees, report was approved by tha Board of Trustees. Trustee Dated: ..l.o.aL.lJ. (418,21 ts) Net currentassetsl{Ilabllilie$) 235,007 67,807) Total ass8ts1g$9 ¢Utrent Iiabllltles 5,2Se.857 5,023,545 Crodltor5: amouiits falllng du• after more than one year 22 {1200,8901. (t,122,143J Net assttls 4,0S5,967 3,001,395 Income funds Restrictèd ft'.nd$ Unrestrlcted funds 32,110 3,869,285 28 4,,tJ23.247 4.055.967 3,901.395 The financial statements were approved by the Tru.stees on l_ork..i., Mr S Heywood Trusteo Mr G Coopèr fnistee Com￿nY Reuistratloii No. 01844549 13- HOYLAKE corrAGE CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Not83 Cash flovvJ from operatlng a¢tlvlUe$ Cash 9enerated from operations 32 199,544 252,701 Investing activities Purchase of tangible fix8d assets PrO￿ed8 on disposal oftangib5e fixed ass8ts Investment income (51,594) {91,3651 1,000 45,632 41,877 Nat cash used In Investlng actlvltles (4.962) 149,488) Financing activities Repayment of bank loans (99,431 > (205,245) Net cash used In flnanclng actlvltles (99,431 } {205,245} Net Ide¢reasellincreasÈ in cash and cash equivalents 95.151 <2,032) Cash and cash equivalents al beginning of year 220,713 222,745 Cash and cagh aqulvalents at ènd of year 316,884 220,713 Relating to: Cash at bank and in hand Bank overdrafts included in creditors payable wlthln one year 315,884 226,883 <6,170) 315,864 220,713 14- HOYLAKE corrAGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounllng pollcSes Charity information Hoylake Cottage 15 a private company limited by guarantee Incorporated in England and Wales. The registered office is Southworth House, 35 Birkenhead Road, Hoylak8, Wirral, Merseyside, CH47 5AQ.In the event of a winding up, the liability in respect of the guarantee is limited to £5 per member. 1.1 Accountlng conventlon The financial ststemenls have been prepared In accordance With the charity's Articles of Association, the Companies Act 2006 and °Accounting and R8POrting by Charitles.. Stalamenl of Recommended Pradice applicable to charities preparing their accounts In accordance with the Financial Reportlng Standard applicable in the UK and Republic of Ireland {FRS 102)" (as amended for a￿oUntIng periods commencing from 1 January 2016). The charity is a Public Benefit Entlty as defined by FRS 102. The financial stalements are prepared in sterling, which Is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial 81atements have been prepared under the historical cost conv8nlion, with the exception of investments which are included al market value, as modlfied by the revaluatlon of ¢ert8ln assets. The principal accounting policies adopted are set out below. 1.2 Going GonGorn With the end of the Coronavlrus pandemic and Government-imposed restrictlons on our operalions, occupancy levels increased to very close to our long-term average. A 3ats'8factory surplus was achieved in tha year end and that trend contlnued Into the 2023-24 year. Therefore, al the tlme of approving the financial ststemenls the trustees have 8 reasonable expectation that the group and charty have sufficient resources to continue in operational existence for the foreseeable future on the oxpectation that Ihore will be no repetition of the forced closures of the nursing home and day centre due to pandemics. 1.3 Charllable funds Unrestricted funds are av8ilable lor use at the dlscretlon of the trustees In furtherance of their Charitable objectlves. Reslricted funds ar8 suble¢l to specific conditions by donors or grantors as lo how thay may be used. Th& purposes and u￿$ of the restricted funds are set out in the notes to the financial statements, 1.4 Incoming re8ou￿9$ Income is recognised when the charity 1$ lagally entitled to it after any performance conditions have been met, tha amounts can be moasured reliably, and it 1$ probable that Income will be received. Cash donations are recognised on receipt. Other donations are racognis8d onc8 the charity has been notified of the donation, unless performance conditions require deferral of the amount, Incoma tax recoverable In relation to donations rec8ived under Gift Aid or deeds of covenant is recogni5ed at the time of the donation. Legacies are recognised on receipt or otherwise if Ihe charity has been notified of an impending distribution, the amount is known. and rgceipt is expected. If the amount is not knovm, the lagacy is tr8ated as a contingent asset. Income from charitable activities includes income received under contract or where entitlement to the grant funding is subjecl to performance conditions. Income is recognised in the Statement of Financial Activities when the relat8d services have been provided. income in advance of those services being provided is defarred. 15 HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcles (Ccntlnued) Income from trading activities, includes income from fundraising events and trading activities to rd15e fvnds for th8 charity. Incom8 is r8oognis8d wh8n 8am8d and the charity is 8ntitled to the receipt. Donations and all other receipts from fundraising are reported gross and the relatsd fundraising costs are reported in expenditur8. 1.5 Re$ource8 expended Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable activities. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing th8 charity to that 6xpenditure, it is probable that a transfer of economic benefits wlll be required in settlam8nt and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs rAnnot be dir8Ctly attributed to particular headings they have been allocated to activities on a basls consistant with Ihe US8 of resource8. Support costs are those that that assist the work of the charity but are not directly attributable to the charitable activities. Support Costs include office costs, administrative payroll costs and govemance costs which support the charity's activlties, Where the support costs c8nnot be attributable to a direct activity they have b88n allocated to the costs of raising funds and charitable aclivili8s on a prowrala basis. Govemance costs represent costs assoclaled with meeting the Constitutional end stslutory requirements of the charity and includa the audit fees and costs linked to th6 strategic management of the charlty. 1.6 Tanglble flxed assets Tangible fixed assets ar8 initially measured at C051 and subsequently measured at Cost or valuation, net of depreclatlon and any Smpalmienl losses. Depreciation is recognised 80 as to writs off the cost or valuation of assets less their residual valuas ovor their useful Ilves on the following bases: Freehold land and building8 Fixtures and fittings Computers Motor vehlcles 1 Vo on cost 10Vo12011/0125%133.33Y• on cost 33.33ty/0120Vo on cost 250A reduclng balance The gsin or Ioss 8rislng on the disposal of an 8sset is delemin8d as the dlff8rence be￿88n the sale proceeds and the ￿rryIng value of the asset, and is reccgnised in the statement of financial a¢livllies. Tangible fixed assols costing more than £500 are capitalised and included al cost including any incidantal expenses of a¢qui$ltlon. 1.7 Impalmient of flxed assels At each reporting end date, the charity ravi8ws Ihe carrying amounts of its tangible assets to determine wh8ther thera is any indicatlon thal those assets have suffered an Impalmient loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 1.8 Cash and cash equivalènts Cash and Cash equivalents include cash in hand, deposits held at call with banks, other short-lenn liquid investments with original maturilies of three monlh5 Qr less, and bank overdrafts, Bank overdrafts are 3hown within borrowings in current liabilities. HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policsos (Contlnued) 1.9 Financlal Instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charitvs balance sheet when the charity becomes paty to the Contractual provislons of the instrument. Financi81 assets and liabiliti8s are offset, with the net amounts presented in Ihe financlal statements, when the￿ is a legally enforceabla right lo set off the recognised amounts and there is an inlenlion to settle on a net basis or to realise the asset and settle the liability simultaneously. Baslc flnanclal assets Basic financial assets, which include debtors and cash and bank balancas, arg initially maasured al transaction prica including transaction costs and are subsequently carried al amortisad cost using the effective interest method unless the arrangement constitutes a financing trans8Ctlon, where the transaction 13 measured al the present value of the future receipts dist)3unt8d al a market rate of interest. Financial assets classified as receivable wlthln one year ere not amort15ed. Basi¢ financial liabllltles Basic financial liabilit18s, Includlng credltors and bank loans are Inlllally recognlsed at transaction prlce unless the arrangement conslitutes a financing transaction, where the debt instrumenl is measured at the present value of the future payment8 discounled at a market rate of int8r8St. Financial liabilities classified as payable within one year are nol amortised. Debt instruments are subsequently carried at amortised cost. using the effective interest rate method. Trade creditors are oblig8tion$ to pay for goods or services that have been acqulred In the ordlnary course of operation5 from suppliers. Amounts payable are classified as current liabilities if paymant is due within one year or less. If not. they are piesenled as non O Ci * Lfi Lri + Iioall- InQtt cacL<(9Suutto￿ttLU 5111" c c . There wero no employees whose 8nnu81 remunaralion was £80,000 or more. 11 Taxatlon The charity is exempl from laxalion on bts activities because all its income is applied for chariiabE8 purposes. 12 Trusl808 There were no trustees, remuneration or expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023. 13 Brookflold Hom•¢aro Limitsd A summary of the results of Ihe subsidlary Is shown b•low: 2024 2023 Turnover Expenditure 574,434 {557,2541 531,796 (513,697) 17,180 18,099 Aggregate a$$els and liabilitles Fixed assets Current assets Current liabilities 314 136,021 (48,081) 1,096 122,889 (52.911) 88,254 71,074 24- HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 14 Tangilble fix8d assets - Group Freehold land Flxtures and •nd buildirtgs fitting8 Computors Motorvehl¢lo$ Total Cost At 1 April 2023 Additions Disposals 7,269,665 674,836 51,594 (40,525> 5,976 61,500 8,011,977 51,594 (102,0251 (61,500) At 31 March 2024 7,269.665 685,905 5.976 7,961.546 Depreciation and impairnlont At 1 April 2023 Depre¢ialion Charged In the year Eliminated in respect of disposals 2,302,506 77,651 554,002 41,088 140,525) 4,989 673 58,037 391 <58.428) 2,919,534 119,803 (98,9531 At 31 March 2024 2,380.157 554.565 5,662 2,940,384 Carrylng amount At 31 March 2024 4,889,508 131,340 314 5,021,162 At 31 March 2023 4,967,160 110,065 1,025 3,464 5,092,444 The charity acqulred the freehold of the site from Mersey Regional Health ALrthority in Aprll 1992, but with covenant limiting ils use to Health and Social Care. 15 Tanglble flxed assets . Charlty Fr•ohold land Flxthr•s and Motor whl¢l¢s and building• Iittlng$ Total Cost At 1 April 2023 Addition8 Disposals 7,269,665 662,956 51,593 (40.524} e1.500 7,994,121 51,593 (102,024) (61.500) At 31 March 2024 7,269,665 674.025 7,943,690 Depreclatlon and Impalrment At 1 April 2023 Depreciation charged in Ihe year Eliminated in respect of disposals 2,302,505 77,651 542.232 58.036 40.978 391 (40,524) (58,427) 2,902,773 119,020 {98,951) At 31 March 2024 2,380,156 542.686 2.922,842 Carrying amount At 31 March 2024 4,889,509 131.339 5,020,848 At 31 March 2023 4,967,160 120,724 3,465 5,091,348 -25- HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 16 Flxed asset Investments - Charity investment In subsldlary The charity holds 2 shares of £1 8ach in its wholly owned charitable subsidary company Brookfield Home¢ar8 Limited which is incorpo￿ted in the Unrted Kingdom. These are the only sharas allotted, called up and fully paid. The company was acquired on 11 March 2019. Activities and results of the company are summarlsed in not8 14. 17 Debtors . Group 2024 2023 Amounls falllng due wilhin one year: Trade debtors Other debtors Prepayments and accrued income 263,065 780 35,752 207,492 36,058 299,597 243,550 18 Debtors . Charity 2024 2023 Amounts falling due wilhin one year: Trade d9btors Amounts OW8d by subsidiary undertakings Olhar debtors Prepayments and accrued incom8 208,942 150,388 2,856 480 33,434 28.364 242,856 181.608 19 Loans and ovardrafts - Group & charlty 2024 2023 Bank ov8rdrafts Bank loans 6.170 1,324,280 1,224,849 1,224,849 1,330,450 Payable wllhin one y8ar Payable after one year 23,959 1,200,890 208,302 1,122,148 Amounts included above which fall due after five years: Payable by instalmants 1,081,481 396.278 A legal mortgage is held by Royal Bank of Scotland on the land and buildings of 35 Birkenhead Road, Hoylake. Wirral CH47 5AQ. There is also a second mortgage which protects the covenant lo the Mersey Regional Health Authority and its successors in tille. -26- HOYLAKE corrAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 19 Loans and ovérdrafts . Group & charity (Contlnuéd) At the gnd of the financial year Royal Bank of Scotland agreed lo amalgamale the 2 loans repayabla over 20 years by monthly Inslalmenls including interest accrued at a ral8 of 3.5% above base rate secured on the Trusl's land and buildings. 20 Credltors: amounts falllng due wlthln one year- Group 2024 2023 Notes Bank loans and overdrafts Other taxation and social security Trade creditors Othar creditors Accruals and deferred income 19 23,959 54.315 56,303 53.291 104.096 208,302 42,908 95,825 54,643 66,585 291.964 468,263 21 Creditors: amounts falling due withln one year- Charlty 2024 2023 Notes Bank loans and overdrafts Other laxalion and social securlty Trade creditors Amounts owed lo fellow group undertakings Other oreditors Accruals and deferrad income 19 23,959 47,201 58,303 807 18,174 97,796 208,302 35,359 95,766 18,246 60,537 244,240 418,210 22 Credltors: amounts falllng due after more than one year GTOUP & charity 2024 2023 Note$ Bank loans 19 1.200.890 1,122,148 -27- HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 23 Restrlcted funds - Group The restricted funds of the charity comprise the unexpended balances of donations and granls held on trust subject to specific conditions by donors as to how they may be u8ed. Movement in funds Incomin9 Rosources rnsourcfrs expand•d 31 Mawh 2024 8glan¢o al 1 April 2023 Nursing Unit Fund Sandhills Fund Entertainment Fund Sandhills Evanls Fund 6.859 25,251 659 (491 7,469 25,251 714 1,095 (7141 11,0951 32,110 2,468 11,8581 32,720 Comparative infomation in respect of the pr8ceding pariod is as follows: Movement In funds ID¢omlng R¢$our¢e$ Balance at r•sour¢•$ expendod 31 Mar¢h 2023 Balanco at 1 Aprll 2022 Nursing Unit Fund Sandhills Fund Entertainment Fund Sandhills Events Fund WBC Adult Social Care Infection Control Fund 10,717 1.995 (519) <1,995) {1,004) 6,858 1,004 47.788 25,2S1 (6) 6Q.506 1,004 (3,524) 32,109 The Sandhills Fund represents donations from supporter5 and families of those who attend the Day Centre towards the cost of creation of a Dementia Village, the purpose of which is lo stimulate memories of those attending. Creation of the Dementia Village was delayed by the Coronavirus epidemic and consequent closure of the Day Centre, then by the need to replace the flat roof over part of the building. Subsequently with attendanc8 at the day centra substantially below form8r levels, priority has been given to supporting the main business,Ihe nurslng home until full recovery has bean achieved. Whon that point is reached a decision will be taken on what further investment in the day centre is appropriate. The Nursing Unit Fund represents donations from families af residents to be used for the benefit of ra5id8nts for entertainment and for additional decoratlve items to enhance the environment. -28- HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 24 Restrlcted funds - Charlty The restricted funds of the charity comprise Ihe unexpended balances of donatlons and grants hald on trust subject to specific conditions by donors as to how they may be used. Movement In funds In¢ornlng R¢8¢)ufGes 8alance at r•sourcè¥ oxpondod 31 March 2024 Balanc• at 1 Aprll 2023 Nursing Unit Fund Sandhills Fund Entertainment Fund Sandhills Events Fund 6,858 25,251 659 (481 7.469 25.251 714 1,095 (714) {1,095) 32,109 2,468 (1,857) 32,720 Comparative infomation in respect of ttie precedlng parfod Is as follows: Movomant In funds Incomlng R¢$our¢è8 8alanco •t resour¢¢$ expandod 31 March 2023 Balance at 1 Aprll 2022 Nursing Unit Fund Sandhills Fund Enlertainmant Fund Sandhills Events Fund 10,717 1,995 1519) (1,995) (1.004) 6,858 1,004 47,788 25.251 60,506 1,004 (3,524) 32.109 The Sandhills Fund represents donations from supporters and famllles of those who attend the Day Centre towards the Cost of creation of a O&mentia Village, th8 purpose of which is to slimulate memories of those attending. Creation of the Dementia Village was delayed by the Coronavirus apidamic and ¢on8equgnt closure of the Day Centre, then by the need to replace the flat roof over part of the bulldlng. Subsequently with attendance at the day centre 8ubstsntially below former levels, priority has been given to supporting the main business.the nursing home until full recovery has been achieved. When that point is reached 8 d￿ls1On will be taken on what furlher investment in the day centre is appropriale. The Nursing Unit Fund represents donations from families of rasidents to be used for the benefit of residants for entertainment and for additional decorative items lo enhance the environment. 29- HOYLAKE corrAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARGH 2024 25 Unrestrlcted funds - Group Movement in funds Resourc•8 Transfers Balanc• at 1 Aprll 2023 Incornlng resources Galns and Balance at l¢Y4s•$ 31 MarGh 2024 General unrestricted funds Designated funds 3,938,810 4,716,106 14,545,414) 1.547 4.109.502 1,547 3,940,357 4,716,106 14,545,414) 4,111.049 Comparative information in respect of Ihe preGeding year Is as follows: Movement In funds Rosourcej Translorl oxp•ndod lanc• at 1 Aprll 2022 Incomlng resources Galns and Balanc• at I￿￿•• 31 March 2023 General unrestrlcted funds D88ignated funds 3,778,371 4,286,148 (4,151,587) 1,547 25,877 3,938,809 1,547 3,778,371 4.287,695 (4.151,5871 25,877 3,940,356 Designaled funds will be used for upgrading fumishings in residents room8. 30- HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 26 Unrestricted funds - Charlty Movement In funds R¢$oureea Tranilern •xpend•d 8alanrA at 1 AprS12023 Incomlng rosourc8* G•lns and Balance al lo$ie$ 31 MaT¢h 21J24 General unrastricted funds Designated fvnds 3.867.738 4,155,672 (4,001,710) 1,547 4,021,700 1,547 3.869,285 4.155.672 4,001,710 4,023,247 Comparative information in respect of the preceding year18 as follows: Movement In funds R•sourc•• Tran¥f¢r$ •xpondod 84l¥nco at 1 April 2022 Incomlng resourc•• Galn• •nd Bal•n¢• at 10gsgB 31 March 2023 Gener81 unrastrlcted funds Designated funds 3,725.403 3.754.353 (3,637,895) 1,547 25,877 3,867,738 1,547 3,725,403 3,755.900 (3.637,895) 25,877 3,869,285 Designated funds will be used for upgrading fumishings in residants rooms. 27 Analysls of net assels botween funds - Group Unrestrlcted Restrlcted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Totsl 2024 2023 Fund balances al 31 March 2024 are repre8ented by: Tangible assets Current 8ssetsl(liabilities) Long term liablliti8S 5,021.162 290,777 (1,200.890) 5,021,162 5,092,444 323.497 {29.940) (1.200.890) (1.122,148) 5,092.444 2,169 (1,122,148) 32,720 32,109 4,111.049 32.720 4.143.769 3.940.356 32,109 3,972,465 31 HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARGH 2024 28 Analysls of ngl assets betwaan fund8 - Charlty Unrestricted Restricted funds funds 2024 2024 Total Unrestricted funds 2023 Restricted funds 2023 Total 2024 2023 Fund balances at 31 March 2024 arg represented by: Tangible assets Investments Current asselsllliabilities> Long temi liabilities 5.020,848 5.020,848 5,091,348 5,091,348 203,287 (1,200,890) 32,720 236,007 (99,9171 (1,200,890) (1,122,148) 32,110 <67.8071 (1,122.148) 4,023,247 32,720 4,055,967 3,869,285 32,110 3,901,395 29 Related party transactlons Hoylake Cottage Care Managei is the daughter of trustee Michael Sutton. who was not Involved In the process of har appointment. Her salary is paid at Hoylaka Cottage standard pay ratss. Father of trustee Richard Stokell was a resid8nt of Hoylake Cottag8 for a short period of time during the year. Fees received amounted to £17,855. 30 Operating lease Cornrnltmonls Al the reporting 8nd dale the charity had outslanding commitments for future minimum lease paym8nls undèr non-cancellable operating leases, which fall due as follows: 2024 2023 Within one year Belween two and five years 9,058 11.160 12,126 18.926 20,218 31.052 -32- HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 31 Analysls of changes In net (debtyfunds Al 1 Aprfl 2023 Cash flowsAt 31 March 2024 Cash at bank and In hand Bank overdrafts 226,883 {6,170) 88,981 6,170 315,864 220,713 95,151 315,864 Loans falling due within one year Loans falling due after more than one year (202,132) (1,122,148) 178,173 {23,9591 (78,742) 11,200,890) (1,103,567) 194,582 (908,9851 32 Cash gonerated from operalions - Group 2024 2023 Surplus for the year 171,302 133,588 Adjustments for: Inveslmenl income recognised in statement of financial activllle8 Loss on disposal of tangible fixed assets Depreciation and impairment of tangible fixed assets {45,632) 2,072 119,803 141,8771 126,578 Movements in working capital: (Incr8asa}Idecrease in debtors Increase in creditors {56,047) 8,046 6,903 27,509 Cash g•narat•d from op•rotion$ 199.544 252,701 33- HOYLAKE COTTAGE CONSOLIDATED BALANCE SHEET ASAT31 MARCH 2024 2024 2023 Notes Fixed as5et5 T*nJc Ible assels Curre17t assets Debtors Cdsh al bank diid iii hand 14 5.021.162 5.092.444 17 299.fj97 315.864 243.550 226,883 615.461 Creditors.. amouiils fallliig due witlil one year 470.432 20 1291,964) 1468.2631 Nel I:iiri'eiil d55¥ Is 323.497 'rotal dsset5 less currei)t liablllties 5,344.659 5.094,614 Crodltors: amo(Inls falllng diie after iiiore than one year 22 f1,200,890) 11.122.14111 I￿¢.1 assots 4,'143,769 3.972.466 Income fuiids Ro.Sli'icied fijnclq Unreslricled funds 23 25 32,720 4,111,049 2.109 3.940.3fJ8 4.143.769 3,972.465 Tiie Iiiiaiicial slaleineii15 ,Ne,re appi'oved by Ilie Trustees on .1.0 (u.4J.£i,¢- k yK.VOurJ lrfr G Cooper Trustee Coiniiaiiy Reuistration No. 01844549