for the Period Ended 31 May 2023
Company Information - 3 | |
Report of the Directors - 4 | |
Profit and Loss Account - 5 | |
Balance sheet - 6 | |
Additional notes - 8 | |
Profit and Loss notes - 11 | |
Balance sheet notes - 12 |
for the Period Ended 31 May 2023
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Registered office: |
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Company Registration Number: |
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The directors present their report with the financial statements of the company for the period ended 31 May 2023
Principal Activities
Political and charitable donations
Additional information
We officially opened our doors on 3rd January 2023 with a small but dedicated workforce and just 3 registered children. Our mission was simple - to provide high quality, compassionate and inclusive childcare in a ‘wonderful place for children to learn and grow.’ Interest in the setting grew rapidly from that point onwards, with the number of children registered on our books reaching 29 by the 31st May 2023. The Nursery reported a loss in its first year which was expected and thus budgeted for within our initial financial model, albeit to a lesser degree than the £72k reported here. There were significant building and equipment costs incurred in the initial set up along with 4 months of rental, insurance and utilities costs whilst we awaited our Ofsted registration. These costs were met by a combination of director loans and owner funds. Once the nursery opened, it took time to build up to optimum occupancy (again, anticipated) so further director loans were used to bridge the gap in working capital. Moving into our second year, The Nursery is forecast to reach breakeven. We are confident this can be achieved given the number of children currently attending regular sessions and the ever-growing demand for weekend respite care, despite the wider macro-economic challenges. Our first Holiday, Activities and Food (‘HAF’) club over the Easter break was also a resounding success which stands us in good stead for future funding rounds. That being said, there will always be a gap between the price paid by for universal provision (for government funded childcare places) and the additional cost required to deliver a safe SEND service. This does pose a risk to our future financial position, but we will monitor the situation on an ongoing basis and adjust our pricing structures accordingly. We will also continue to work with the local authority to access any additional funding that our children are entitled to. There are ambitious growth plans in place for The Nursery, including private speech and language therapy sessions, external paediatric first aid training courses and additional holiday club places. We know the demand is there (due to current waiting lists for such services) but need to work through the staffing and estates implications first. We have invested heavily in our apprentice workforce this year with a view to ‘growing our own’ team of qualified and passionate early years practitioners, all of whom will receive additional SEND training to support them in their roles. More detail regarding our growth ambitions is set out in our 5-year strategic plan. As directors of The Nursery we are immensely proud of everything that has been achieved this year. Though the accounts are reporting a loss, that loss demonstrates the hard work and determination that went into establishing our business in a market that very few nursery owners enter into (due to the funding limitations noted above). We have achieved everything we set out to in our first 5 months of trading and the feedback we receive from our children, their families and the wider community on a regular basis is a testament to that success.
Directors
The director(s) shown below were appointed to the company during the period
This report was approved by the board of directors on
And Signed On Behalf Of The Board By:
Name:
Status: Director
for the Period Ended 31 May 2023
Notes |
13 months to 31 May 2023 £ |
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Turnover |
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Cost of sales |
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Gross Profit or (Loss) |
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Income from coronavirus (COVID-19) business support grants | 0 | |
Distribution Costs |
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Administrative Expenses |
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Other operating income |
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Operating Profit or (Loss) |
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Interest Receivable and Similar Income |
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Interest Payable and Similar Charges |
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Profit or (Loss) Before Tax | 4 |
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Tax on Profit |
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Profit or (Loss) for Period |
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The notes form part of these financial statements
As at
Notes |
13 months to 31 May 2023 £ |
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Fixed assets | ||
Total fixed assets: | - | |
Current assets | ||
Cash at bank and in hand: |
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Total current assets: |
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Prepayments and accrued income: |
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Creditors: amounts falling due within one year: | 5 |
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Net current assets (liabilities): |
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Total assets less current liabilities: |
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Accruals and deferred income: |
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Total net assets (liabilities): |
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The notes form part of these financial statements
As at 31 May 2023
Notes |
13 months to 31 May 2023 £ |
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Capital and reserves | ||
Called up share capital: |
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Profit and loss account: |
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Shareholders funds: |
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This report was approved by the board of directors on
And Signed On Behalf Of The Board By:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 31 May 2023
Basis of measurement and preparation
for the Period Ended 31 May 2023
13 months to 31 May 2023 |
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Average number of employees during the period |
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for the Period Ended 31 May 2023
for the Period Ended 31 May 2023
This category captures £160 of income received to reimburse staff time on the Early Years Practitioner Development Practice (‘EYPDP’) 3 programme. The associated cost is captured against the ‘direct wages’ account code.
Note 2 Sales
This category captures all revenue generated for nursery sessions between 6th May 2022 and 31st May 2023. Invoices are issued a month in arrears, so an accrual has been posted for all outstanding payments as at the end of the financial year. Based on previous payment history, we would expect all residual balances to be cleared by the end of the following month. Over two thirds of our income came from the local authority (for government funded nursery places and holiday provision) with the balance from privately funded sessions.
Note 3 Direct Expenses
This category includes all food and personal hygiene products (i.e. nappies, wipes and barrier cream). These expenses can be directly attributed to each individual session that is delivered.
Note 4 Direct Wages
This category includes all staff who are permanently based within the rooms, providing direct care to children. All staffing costs have been captured here for year 1, with the exception of G Bridge who has been charged to directors renumeration. Going forward we would expect to see nursery cook, caretaker and deputy manager costs all charged to salaries. However, in the first 5 months post opening all cooking duties were performed by the managing director, all caretaker hours were undertaken on a voluntary basis and the deputy manager was counted within room ratios.
Note 5 Audit and Accountancy Fees
This category covers our monthly accounting software subscription (Xero).
Note 6 Consulting
This category covers our external HR services provider (Avensure Ltd.).
Note 7 General Expenses
This category captures all set-up costs incurred for building works, equipment and supplies prior to opening the nursery.
Note 8 Insurance
This category covers all essential building, contents and company insurance policies. A comprehensive insurance package is in place via a single provider (Dot2dot) with payments taken through Close Brother Premium Finance. The package includes, but is not limited to, material damage, business interruption, employers’ liability, public liability and directors’ liability. Building insurance costs are provided via a separate policy that is arranged (and recharged) by the landlord.
Note 9 Legal Expenses
This category covers the company’s share of legal costs incurred when setting up the initial lease agreement.
Note 10 Pension Costs
This category covers all payments made into the company pension scheme (NEST). An 8% contribution is made for all eligible staff which covers the statutory minimum required (for employer and employee combined). Staff are given the opportunity to opt-in to the scheme if not eligible for auto-enrolment.
Note 11 Repairs & Maintenance
This category covers all essential health and safety testing carried out for the building. It also captures any ad hoc repairs and maintenance costs.
Note 12 Staff Non-Pay Costs
This category covers all costs incurred on staff uniforms and DBS checks.
Note 13 Subscriptions
This category covers subscriptions for Ofsted, Famly (nursery app), Information Commissioners Office (ICO), Amazon and Go Daddy (website domain).
for the Period Ended 31 May 2023
13 months to 31 May 2023 £ |
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Taxation and social security |
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Other creditors |
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Total |
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This category combines all directors' loan, PAYE, NIC and pension payables. Over 80% of the balance relates to the directors' loan account which was established in July 2022 and topped up in February 2023. Minimal repayment has been made from this account during the period in order to stabilise cashflow. Balances reported against the PAYE, NIC and pensions payable accounts reflect those costs recognised during the period but not due to be paid until after the financial year-end.