Directors Report 1

The directors present the strategic report and financial statements for the year ended 31 May 2015.
Review of the business During the year the company disposed of the freehold property and entered into an operating lease back arrangement. This transaction was part of a reorganisation of the group structure.
For the year ended 31 May 2015, the company results report turnover of ?3,219,293 (2014: ?2,899,028), being an increase of 11.0% on 2014 figures. Gross profit for the year increased to 46.2% of turnover compared with 45.7% for 2014. Profit on ordinary activities before taxation increased to ?9,633,397 when compared with ?789,096 in the prior year, however this included an amount of ?8,871,545 relating to the profit on disposal of fixed assets. If this amount is excluded profit on ordinary activities before taxation is reported at ?761,852, being a reduction of 3.4% from 2014.
In respect of the financial position of the company, as at the year end the company reports net assets amounting to ?2,259,219 (2014: ?4,253,500). The decrease in assets reported is a direct result of the reorganisation of the group structure detailed above.
The principal risks and uncertainties faced by the company include the premium service expected from the company by residents, whereby the company needs to anticipate and respond to residents' needs to improve competitiveness by continuing to promote a service-driven culture. As premium service is a key objective, the company mitigates this risk well. With an increasing amount of negative press relating to the care home industry, the company needs to make it clearly apparent that it is one of the best providers of residential care in the market. In addition, the company needs to be constantly responsive to changes in regulatory compliance and conversant in any potential changes in the adult care sector which may give rise to external pressures. Furthermore, with the implementation of the Care Act 2014 in April 2016 there shall be additional pressures on Local Government to reassess their care funding levels, which creates a level of uncertainty for the Group in respect of publicly funded residents.
On behalf of the board

Mr B Cooney Director DI 1.0.5 ASHRIDGE COURT LIMITED
DIRECTORS' REPORT FOR THE YEAR ENDED 31 MAY 2015

The directors present their report and financial statements for the year ended 31 May 2015.
Results and dividends The results for the year are set out on page 6.
The directors do not recommend the payment of a final dividend.
Future developments In respect of future developments and performance, subject to the external risks placed on the company, demand for care placements are expected to remain constant and the company anticipates capitalising on this by ensuring the continuance of the current highest standard of service being provided to residents in the most efficient manner, being a key long term business objective.
Directors The following directors have held office since 1 June 2014:
Mr B Cooney Mr B Lambert
Auditors Morris Lane were appointed auditors to the company in accordance with section 485 of the Companies Act 2006. The auditors, Morris Lane, will be deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities The directors are responsible for preparing the Strategic Report, Directors' 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently; - make judgements and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company 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 company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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ASHRIDGE COURT LIMITED
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2015

Statement of disclosure to auditors So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board

Mr B Cooney Director LIP //5

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ASHRIDGE COURT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASHRIDGE COURT LIMITED

We have audited the financial statements of Ashridge Court Limited for the year ended 31 May 2015 set out on pages 6 to 16. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company's members', as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members' those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members' as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the company's affairs as at 31 May 2015 and of its profit for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information 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.

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ASHRIDGE COURT LIMITED
INDEPENDENT AUDITORS' REPORT (CONTINUED) TO THE MEMBERS OF ASHRIDGE COURT LIMITED

Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us; or the 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 received all the information and explanations we require for our audit.

rv1orms Michelle Pettifer (Senior Statutory Auditor) for and on behalf of Morris Lane
Chartered Accountants Statutory Auditor

I I S-eirkiv...1).QA. Ocn S

31/33 Commercial Road Poole Dorset BH14 OHU
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ASHRIDGE COURT LIMITED

Directors Report 2

The directors present the strategic report and financial statements for the year ended 31 May 2014.
Review of the business For the year ended 31 May 2014 the company reports annual turnover of ?2,899,028 which is an increase of 44.7% when compared with the year ended 31 May 2013 (2013: ?2,003,560). Gross profit is reported as 45.7% of turnover (2013: 43.4%) and profit on ordinary activities before taxation has increased from ?364,248 in 2013 to ?789,096 in 2014. The increase in profitability results from the extension works at the home in respect of the Hazel Dementia Unit and the West Wing, both contributing additional income to the business.
During the year the company completed the alteration and extension of the west wing, providing an enhancement to the environment offered to potential residents and ensuring the care home was better equipped for future compliance requirements. The period of works made attracting new residents difficult, although this is expected to recover following build completion. The new facilities will assist in better catering for the clinical needs of residents but will also provide for a more enriching environment, seen as equally important by the company. The ethos of focusing on the total well-being of residents has led to the company being nominated by residents' next of kin in the 2014 Proud to Care Surrey and Sussex Awards for the availability of varied and unique activities.
The principal risks and uncertainties faced by the company include the premium service expected from the company by residents, whereby the company needs to anticipate and respond to residents' needs to improve competitiveness by continuing to promote a service-driven culture. As premium service is a key objective, the company mitigates this risk well. With an increasing amount of negative press relating to the care home industry, the company needs to make it clearly apparent that it is one of the best providers of residential care in the market. In addition, the company needs to be constantly responsive to changes in regulatory compliance and conversant in any potential changes in the adult care sector which may give rise to external pressures.
On behalf of the board

Mr B Cooney Diwcto 6ez 2E2/ A?

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ASHRIDGE COURT LIMITED
DIRECTORS' REPORT FOR THE YEAR ENDED 31 MAY 2014

The directors present their report and financial statements for the year ended 31 May 2014.
Results and dividends The results for the year are set out on page 5.
The directors do not recommend the payment of a final dividend.
Future developments In respect of future developments and performance, subject to the external risks placed on the company, demand for care placements are expected to remain constant and the company anticipates capitalising on this by ensuring the continuance of the current highest standard of service being provided to residents in the most efficient manner, being a key long term business objective. Politically, the company is monitoring the shaping of the care sector with the approaching UK general election in 2015 where care is likely to play an important part of the agenda.
Directors The following directors have held office since 1 June 2013:
Mr B Cooney Mr B Lambert
Auditors Grant Thornton UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Companies Act 2006.
Statement of directors' responsibilities The directors are responsible for preparing the Strategic Report, Directors' 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently; - make judgements and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company 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 company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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ASHRIDGE COURT LIMITED
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2014

Statement of disclosure to auditors So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board

Mr B Cooney lIcto . C0,6? 249/1"

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ASHR1DGE COURT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASHRIDGE COURT LIMITED

We have audited the financial statements of Ashridge Court Limited for the year ended 31 May 2014 which comprise the profit and loss account, the balance sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's website at www.frc.org.uk/apb/scope/private.cfm
Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the company's affairs as at 31 May 2014 and of its profit for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information 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.
Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us; or the 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 received all the information and explanations we require for our audit.

C4tAt?N,wvtliai 441( Stephen Mills Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Southampton 114-.

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ASHRIDGE COURT LIMITED

Directors Report 3

DIRECTORS' REPORT FOR THE YEAR ENDED 31 MAY 2013

The directors present their report and financial statements for the year ended 31 May 2013
Principal activities and review of the business The principal activity of the company continued to be that of the provision of residential care services, being the operation of a nursing home in Bexhill-on-Sea
For the year ended 31 May 2013 the company reports annual turnover of ?2,003,560 which is a reduction of 156% when compared with the year ended 31 May 2012 (2012 ?2,372,830) Gross profit is reported as 434% of turnover (2012 523%) and profit on ordinary activities before taxation has reduced by 496% from ?723,080 in 2012 to ?364,248 in 2013
During the year as part of planned development of Ashndge Court, the company demolished the west wing, reducing capacity by 14 beds and causing major disruption due to the new build works during the year This has contributed to the decline in the financial performance of the company, as this has had a significant impact on the ability of the company to attract residents to fill vacant beds
During the year the company rebuilt the west wing, enlarging the original 14 bed ground floor rooms and adding on the Hazel Dementia Unit, a luxury 16 bed new development providing specialist services for individuals with dementia This unit will aid in the company to be in a position to meet the increasing demand for dementia care in the Bexhill area and provide a significant advantage over surrounding competitors The principal risks and uncertainties faced by the company include the premium service expected from the company by residents, whereby the company needs to anticipate and respond to residents' needs to improve competitiveness by continuing to promote a service-driven culture As premium service is a key objective, the company mitigates this risk well With an increasing amount of negative press relating to the care home industry, the company needs to make it clearly apparent that it is one of the best providers of residential care in the market In addition, the company needs to be constantly responsive to changes in regulatory compliance and conversant in any potential changes in the adult care sector which may give rise to external pressures and this is particularly relevant with respect to the current care fees and funding debate which has been seen in the national press
Results and dividends The results for the year are set out on page 4
The directors do not recommend the payment of a final dividend
Future developments In respect of future developments and performance, subject to the external nsks placed on the company, demand for care placements are expected to remain constant and the company anticipates capitalising on this by ensuring the continuance of the current highest standard of service being provided to residents in the most efficient manner, being a key long term business objective
Directors The following directors have held office since 1 June 2012
Mr B Cooney Mr B Lambert
Auditors Grant Thornton UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Companies Act 2006

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ASH RIDGE COURT LIMITED
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2013

Statement of directors' responsibilities The directors are responsible for prepanng the Directors' 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that penod In prepanng these financial statements, the directors are required to
- select suitable accounting policies and then apply them consistently, - make judgements and accounting estimates that are reasonable and prudent, - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company 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 company website Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other junsclictions
Statement of disclosure to auditors So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information
On behalf of the board

Mr B Cooney De3.r.Vodg ,113 ASHRIDGE COURT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASHRIDGE COURT LIMITED

We have audited the financial statements of Ashndge Court Limited for the year ended 31 May 2013 which comprise the profit and loss account, the balance sheet and the related notes The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Pal 16 of the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed
Respective responsibilities of directors and auditors As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's website at www frc org uk/apb/scope/pnvate cfm
Opinion on financial statements In our opinion the financial statements give a true and fair view of the state of the company's affairs as at 31 May 2013 and of its profit for the year then ended, -have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the requirements of the Companies Act 2006 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements
Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us, or the 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 received all the information and explanations we require for our audit
C4emt-AttAvAitt we 1-11
Stephen Mills Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Southampton

Z/cq// 5

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ASH RIDGE COURT LIMITED

Directors Report 4

DIRECTORS' REPORT FOR THE YEAR ENDED 31 MAY 2012

The directors present their report and financial statements for the year ended 31 May 2012
Principal activities and review of the business The pnnapal activity of the company continued to be that of the provision of residential care services, being the operation of a nursing home in Bexhill-on-Sea
For the year ended 31 May 2012 the company reports annual turnover of ?2,372,830 which is an increase of 9 6% when compared with pro-rated turnover reported for the pnor 8 month penod from 1 October 2010 to 31 May 2011(2011 ?1,443,026) Profit on ordinary activities before taxation has reduced 13 9% on a pro-rata basis from ?840,057 in 2011(2011 actual ?560,038) to ?723,080 for 2012 This reduction in profitability is as a result of the post-acquisition spend which has been required to bnng the home to comparable standards across the group, with significant repairs and maintenance expenditure and staff training and welfare costs being incurred in the year The increases in these costs are not anticipated to be recurrent by the directors

The principal nsks and uncertainties faced by the company include the premium service expected by residents, whereby the company needs to anticipate and respond to residents'needs to improve competitiveness by continuing to promote a service-driven culture In addition, the company needs to be constantly responsive to changes in regulatory compliance and conversant in any potential changes in the adult care sector which may give rise to external pressures and this is particularly relevant with respect to the current care fees and funding debate which has been seen in the national press
Results and dividends The results for the year are set out on page 4
The directors do not recommend the payment of a final dividend
Future developments In respect of future developments and performance, the company is in the process of carrying out build works to the existing care home in order to incorporate a 15 bed specialist self contained dementia care centre to satisfy the increasing demand for dementia care in the Bexhill area These works will assist in future proofing the home for future market expectations
Subject to the external nsks placed on the company within the market going forward, demand for care placements are expected to remain constant and the company anticipates capitalising on this by ensuring the continuance of the highest standard of service being supplied to residents in the most efficient manner, being a key long term business objective
Directors The following directors have held office since 1 June 2011
Mr B Cooney Mr B Lambert
Auditors Grant Thornton UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Companies Act 2006

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ASHRIDGE COURT LIMITED
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2012

Statement of directors' responsibilities The directors are responsible for prepanng the Directors' 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that penod In prepanng these financial statements, the directors are required to
- select suitable accounting policies and then apply them consistently, - make judgements and accounting estimates that are reasonable and prudent, - state whether applicable UK Accounting Standards have been followed, subject to any matenal departures disclosed and explained in the financial statements, - prepare the financial statements on the going concern basis unless it is inappropnate to presume that the company will continue in business
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregulanties
The directors' are responsible for the maintenance and integnty of the company website Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other junsdictions
Statement of disclosure to auditors So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information
On behalf of the board

Mr B Cooney Director223t, I ra_

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ASHRIDGE COURT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASHRIDGE COURT LIMITED

We have audited the financial statements of Ashndge Court Limited for the year ended 31 May 2012 which compnse the profit and loss account, the balance sheet and the related notes The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed
Respective responsibilities of directors and auditors As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's website at www frc org uk/apb/scope/pnvate cfm
Opinion on financial statements In our opinion the financial statements give a true and fair view of the state of the company's affairs as at 31 May 2012 and of its profit for the year then ended, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the requirements of the Companies Act 2006
Opinion on other matter prescnbed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements
Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us, or the 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 received all the information and explanations we require for our audit

aCtAt AnAvAly, UK La
Stephen Mills Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Southampton

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le
ASHRIDGE COURT LIMITED

Directors Report 5

DIRECTORS' REPORT FOR THE PERIOD ENDED 31 MAY 2011

The directors present their report and financial statements for the period ended 31 May 2011
Principal activities and review of the business The principal activity of the company continued to be that of the provision of residential care services, being the operation of a nursing home in Bexhill-on-Sea
For the 8 month period ended 31 May 2011, the company results report turnover of ?1,443,026 compared with ?1,460,491 for the penod ended 30 September 2010 as pro-rated, which represents a marginal decrease of 1 2% and indicates that turnover has remained fairly constant Profit before tax, depreciation and amortisation for the 8 month period is reported at ?537,582, which when compared to pro-rated 30 September 2010 figures of ?442,212 is an increase of 21 6% This increase in profitability follows a change in ultimate ownership of the company, whereby initial reorganisation costs were incurred in the prior penod and further cost savings following the reorganisation have been made in the period to 31 May 2011
The pnncipal risks and uncertainties faced by the company include the premium service expected by residents, whereby the company needs to anticipate and respond to residents' needs to improve competitiveness by continuing to promote a service-driven culture In addition, the company needs to be constantly responsive to changes in regulatory compliance and conversant in any potential changes in the adult care sector which may give nse to external pressures
Results and dividends The results for the period are set out on Page 4
During the penod, dividends of End (2010 ?91,500) were paid in respect of the Ordinary 'A' shares and dividends of End (2010 ?4,800) were paid in respect of the Ordinary 'B' shares
The directors do not recommend the payment of a final dividend
Future developments In respect of future developments and performance, the company is in the process of evaluating an extension to the existing care home in order to incorporate a 15 bed specialist self contained dementia care centre to satisfy the increasing demand for dementia care in the Bexhill area Subject to the external risks placed on the company within the market going forward, demand for care placements are expected to remain constant and the company anticipates capitalising on this by ensuring the continuance of the highest standard of service being supplied to residents in the most efficient manner, being a key long term business objective
Directors The following directors have held office since 1 October 2010
Mr B Cooney Mr B Lambert
Auditors Grant Thornton UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Companies Act 2006

- 1 -
ASHRIDGE COURT LIMITED
DIRECTORS' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MAY 2011

Statement of directors' responsibilities The directors are responsible for preparing the Directors 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that penod In preparing these financial statements, the directors are required to
- select suitable accounting policies and then apply them consistently, - make judgements and accounting estimates that are reasonable and prudent, - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
The directors' are responsible for the maintenance and integnty of the company website Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions
Statement of disclosure to auditors So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information
Share transactions During the period 100% of the company's issued share capital was purchased by Ashridge Court (Bexhill) Limited for cash
On behalf of the board rt."------k- Mr B Lambert Director 2,siloct /201i
ASHRIDGE COURT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASHRIDGE COURT LIMITED

We have audited the financial statements of Ashndge Court Limited for the period ended 31 May 2011 which comprise the profit and loss account, the balance sheet and the related notes The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed
Respective responsibilities of directors and auditors As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's website at www frc org uk/apb/scope/pnvate cfm
Opinion on financial statements In our opinion the financial statements - give a true and fair view of the state of the company's affairs as at 31 May 2011 and of its profit for the period then ended, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the requirements of the Companies Act 2006
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial penod for which the financial statements are prepared is consistent with the financial statements
Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us, or the 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 received all the information and explanations we require for our audit
C.IimAkmacito 411?. a
Stephen Mills Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Southampton

9215.11i

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ASHRIDGE COURT LIMITED

Directors Report 6

DIRECTORS' REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2010

The directors present their report and financial statements for the period ended 30 September 2010
Principal activities and review of the business The principal activity of the company continued to be that of the provision of residential care services, being the operation of a nursing home in Bexhill-on-Sea
For the 6 month period ended 30 September 2010, prior to Canford Healthcare plc ownership, the company results report turnover of ?1,095,368 compared with ?980,337 based on the pro-rated 2010 results for the year ended 31 March 2010, representing an 11 7% increase Profit before tax for the 6 month period is reported at ?263,440 which when compared to pro-rated 2010 figures of ?312,210 is a reduction of 156%
The pnncipal risks and uncertainties faced by the company include the premium service expected by residents, whereby the company needs to anticipate and respond to residents' needs to improve competitiveness by continuing to promote a service-driven culture In addition, the company needs to be constantly responsive to changes in regulatory compliance and conversant in any potential changes in the adult care sector which may give nse to external pressures
Results and dividends The results for the period are set out on Page 4
During the penod, dividends of ?91,500 (2010 ?304,700) were paid in respect of the Ordinary 'A' shares and dividends of ?4,800 (2010 ?21,200) were paid in respect of the Ordinary 'B' shares
The directors do not recommend the payment of a final dividend
Post balance sheet events Subsequent to the period end 100% of the company's issued share capital was purchased by Ashridge Court (Bexhill) Limited for cash
Future developments In respect of future developments and performance, the company is intending to enhance trading performance by way of the streamlining of costs and this is to be implemented following a post year end change in ownership and management, whereby revised targets are to be set to continually improve trading efficiency
Directors The following directors have held office since 1 April 2010
Mr B Cooney (Appointed 30 September 2010) Mr B Lambert (Appointed 30 September 2010) Mr A Van Eugen (Resigned 30 September 2010) Mrs E Van Eugen (Resigned 30 September 2010)
Auditors Grant Thornton UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Companies Act 2006

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ASH RIDGE COURT LIMITED
DIRECTORS REPORT (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2010

Statement of directors' responsibilities The directors are responsible for preparing the Directors' 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period In preparing these financial statements, the directors are required to
- select suitable accounting policies and then apply them consistently, - make judgements and accounting estimates that are reasonable and prudent, - prepare the financial statements on the going concern basis unless it is inappropnate to presume that the company will continue in business
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company 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 company website Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other Jurisdictions
Statement of disclosure to auditors So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information
On behalf of the board (2,-------1-- Mr B Lambert Director agiP9 11.6x)
ASH RIDGE COURT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASHRIDGE COURT LIMITED

We have audited the financial statements of Ashndge Court Limited for the period ended 30 September 2010 which comprise the profit and loss account, the balance sheet and the related notes The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed
Respective responsibilities of directors and auditors As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's website at www frc org uk/apb/scope/pnvate cfm
Opinion on financial statements In our opinion the financial statements give a true and fair view of the state of the company's affairs as at 30 September 2010 and of its profit for the period then ended, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the requirements of the Companies Act 2006
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements
Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us, or the 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 received all the information and explanations we require for our audit

CJAA4- ztkAAvnioi Ailk 1.1A9
Stephen Mills Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Southampton

elrfrit II

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ASHRIDGE COURT LIMITED