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Registration number: 06821638

Lakehouse Nurseries Ltd

Annual Report and Unaudited Financial Statements

for the Period from 1 March 2021 to 31 March 2022

 

Lakehouse Nurseries Ltd

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 10

 

Lakehouse Nurseries Ltd

Company Information

Directors

O M Humphries

D Lumsden-Earle

W R Thresher

Registered office

3 Peardon Street
London
SW8 3BW

Accountants

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Lakehouse Nurseries Ltd

(Registration number: 06821638)
Balance Sheet as at 31 March 2022

Note

31 March 2022
 £

28 February 2021
 £

Fixed assets

 

Tangible assets

4

1,691,241

1,702,772

Investments

5

-

60,000

 

1,691,241

1,762,772

Current assets

 

Debtors

6

19,164

11,817

Cash at bank and in hand

 

202,052

131,238

 

221,216

143,055

Creditors: Amounts falling due within one year

7

(260,263)

(200,738)

Net current liabilities

 

(39,047)

(57,683)

Total assets less current liabilities

 

1,652,194

1,705,089

Creditors: Amounts falling due after more than one year

7

(931,456)

(1,002,240)

Deferred tax liabilities

(83,968)

(64,201)

Net assets

 

636,770

638,648

Capital and reserves

 

Called up share capital

100

100

Profit and loss account

636,670

638,548

Total equity

 

636,770

638,648

For the financial period ending 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 19 August 2022 and signed on its behalf by:
 


W R Thresher
Director

 

Lakehouse Nurseries Ltd

Notes to the Financial Statements for the Period from 1 March 2021 to 31 March 2022

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
3 Peardon Street
London
SW8 3BW
England

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Group accounts not prepared

The company has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the grounds that it is a small group.

Judgements and estimation uncetainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.The company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Lakehouse Nurseries Ltd

Notes to the Financial Statements for the Period from 1 March 2021 to 31 March 2022

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of current and deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Improvements to property

4% straight line

Fixtures, fittings and equipment

25% reducing balance - 33% straight line

Motor vehicles

25% reducing balance

Freehold Land and Buildings

Nil

No depreciation is provided on freehold property as it is the company’s policy to maintain these assets so that they keep their previously assessed standard of performance. As the useful economic life of these assets are of such a length and the residual values are such, that they are not materially different from the carrying amount and depreciation would not be material.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

 

Lakehouse Nurseries Ltd

Notes to the Financial Statements for the Period from 1 March 2021 to 31 March 2022

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Lakehouse Nurseries Ltd

Notes to the Financial Statements for the Period from 1 March 2021 to 31 March 2022


Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial instruments (continued)

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was as follows:

 

Lakehouse Nurseries Ltd

Notes to the Financial Statements for the Period from 1 March 2021 to 31 March 2022

1 March 2021 to 31 March 2022
 No.

Year ended 28 February 2021
 No.

Average number of employees

79

80

 

Lakehouse Nurseries Ltd

Notes to the Financial Statements for the Period from 1 March 2021 to 31 March 2022

 

4

Tangible assets

Freehold property
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 March 2021

1,727,081

124,881

19,676

1,871,638

Additions

-

5,428

-

5,428

At 31 March 2022

1,727,081

130,309

19,676

1,877,066

Depreciation

At 1 March 2021

56,786

108,392

3,689

168,867

Charge for the year

7,887

5,074

3,997

16,958

At 31 March 2022

64,673

113,466

7,686

185,825

Carrying amount

At 31 March 2022

1,662,408

16,843

11,990

1,691,241

At 28 February 2021

1,670,295

16,490

15,987

1,702,772

 

5

Investments

2022
£

2021
£

Investments in subsidiaries

-

60,000

Subsidiaries

£

Cost and carrying amount

At 1 March 2021

60,000

Amounts written off investments

(60,000)

At 31 March 2022

-

At 28 February 2021

60,000

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2022

2021

Subsidiary undertakings

My Child At Nursery Limited

Ordinary

0%

100%

 

England and Wales

     
 

Lakehouse Nurseries Ltd

Notes to the Financial Statements for the Period from 1 March 2021 to 31 March 2022

Subsidiary undertakings

My Child At Nursery Limited

The principal activity of My Child At Nursery Limited was the provision of IT software development and support, and building services. The company was dissolved on 7 December 2021.

 

6

Debtors

31 March 2022
 £

28 February 2021
 £

Trade debtors

51

7,582

Amounts owed by related parties

-

4,095

Other debtors

19,113

140

 

19,164

11,817

 

Lakehouse Nurseries Ltd

Notes to the Financial Statements for the Period from 1 March 2021 to 31 March 2022

 

7

Creditors

Note

31 March 2022
 £

28 February 2021
 £

Due within one year

 

Loans and borrowings

8

40,000

40,000

Trade creditors

 

106,847

81,292

Social security and other taxes

 

16,347

13,416

Outstanding defined contribution pension costs

 

5,554

6,439

Other creditors

 

3,916

-

Accrued expenses

 

23,916

5,167

Corporation tax liability

63,683

54,424

 

260,263

200,738

Due after one year

 

Loans and borrowings

8

535,250

918,648

Director's loan account

 

396,206

83,592

 

931,456

1,002,240

 

8

Loans and borrowings

2022
£

2021
£

Current loans and borrowings

Bank borrowings

40,000

40,000

2022
£

2021
£

Non-current loans and borrowings

Bank borrowings

535,250

918,648

 

9

Parent and ultimate parent undertaking

Up until 31 March 2022, the company was controlled by Z Parsons.

Since 31 March 2022, the company's immediate parent is LGDN Bidco Limited, incorporated in England and Wales.

 Since 31 March 2022, the ultimate parent is LGDN Topco Limited, incorporated in England and Wales.

 Since 31 March 2022, the ultimate controlling party is August Equity Partners IV General Partners LLP.