Registered number:
FOR THE 14 MONTHS ENDED 31 JULY 2023
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WATER BABIES COT LIMITED
COMPANY INFORMATION
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WATER BABIES COT LIMITED
CONTENTS
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WATER BABIES COT LIMITED
DIRECTORS' REPORT
FOR THE 14 MONTHS ENDED 31 JULY 2023
The directors present their report and the financial statements for the 14 months ended 31 July 2023.
The company was incorporated on 12 May 2022 and commenced trading on the same date.
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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 judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors who served during the 14 months were:
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WATER BABIES COT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 14 MONTHS ENDED 31 JULY 2023
The auditors, Haysmacintyre LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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WATER BABIES COT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WATER BABIES COT LIMITED
We have audited the financial statements of Water Babies COT Limited (the 'Company') for the 14 months ended 31 July 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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WATER BABIES COT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WATER BABIES COT LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Directors' Report for the financial 14 months for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
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WATER BABIES COT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WATER BABIES COT LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud. Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with company law, and we considered the extent to which non-compliance might have a material effect on the financial statements such as the Companies Act 2006 and sales tax. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the override of controls by management, inappropriate revenue recognition and management bias in accounting estimates. Audit procedures performed by the engagement team included:
∙inspecting correspondence with regulators and tax authorities;
∙discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
∙evaluating management's controls designed to prevent and detect irregularities;
∙risk based sample testing on the posting of journal entries;
∙challenging assumptions and judgements made by management in their critical accounting estimates; and
∙corroborating amounts and balances recognised to supporting documentation on a sample basis.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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WATER BABIES COT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WATER BABIES COT LIMITED (CONTINUED)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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.
for and on behalf of
Statutory Auditors
10 Queen Street Place
EC4R 1AG
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WATER BABIES COT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 14 MONTHS ENDED 31 JULY 2023
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WATER BABIES COT LIMITED
REGISTERED NUMBER: 14103629
BALANCE SHEET
AS AT 31 JULY 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 10 to 18 form part of these financial statements.
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WATER BABIES COT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 14 MONTHS ENDED 31 JULY 2023
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WATER BABIES COT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTHS ENDED 31 JULY 2023
Water Babies COT Limited is a private company limited by shares, incorporated in England and Wales. The company registration number is 14103629 and the registered office is Winslade House, Winslade Park, Manor Drive, Clyst St Mary, Exeter, Devon, EX5 1FY. The principal activity of the Company in the year under review was that of the provision of swimming lessons to babies and toddlers.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Company operates.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraph 74A(b) of IAS 16
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
This information is included in the consolidated financial statements of Water Babies Group Limited as at 31 July 2023 and these financial statements may be obtained from Water Babies Group Limited, Winslade House, Winslade Park, Manor Drive, Clyst St Mary, Exeter, Devon, EX5 1FY.
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WATER BABIES COT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTHS ENDED 31 JULY 2023
2.Accounting policies (continued)
At the time of approving the financial statements, the directors have a reasonable expectation that the Company and the Group that it is part of has adequate resources to continue in operational existence for the foreseeable future. Although a loss was generated in period, this was primarily due to the exceptional franchise termination payments which are not expected to occur in future periods.
Furthermore the company has received finance from fellow group entities while in its start up phase and to pay for the termination payments. These fellow group entities have confirmed that they will not recall the balances due to them until the resources of the company allow, and not within the next 12 months from the date of approval of these financial statements. Additionally they have undertaken to provide further finance to this company if necessary. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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WATER BABIES COT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTHS ENDED 31 JULY 2023
2.Accounting policies (continued)
Expenses incurred in the transfer of franchises to the company are treated as expenses as the company becomes party to a franchise release agreement except for where the transaction represents the reacquisition of franchise rights previously granted to a franchisee, in which case the cost is capitalised as an intangible asset and amortised over the remaining contract term.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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WATER BABIES COT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTHS ENDED 31 JULY 2023
2.Accounting policies (continued)
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WATER BABIES COT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTHS ENDED 31 JULY 2023
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WATER BABIES COT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTHS ENDED 31 JULY 2023
7.Taxation (continued)
There were no factors that may affect future tax charges.
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WATER BABIES COT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTHS ENDED 31 JULY 2023
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WATER BABIES COT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTHS ENDED 31 JULY 2023
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WATER BABIES COT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTHS ENDED 31 JULY 2023
Profit and loss account
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £4,849. Contributions totalling £1,506 were payable to the fund at the reporting date.
Water Babies COT Limited is a wholly owned subsidiary of Water Babies Group Limited, the immediate and ultimate parent company registered in the United KIngdom.
All entities of the group are consolidated within the ultimate parent company Water Babies Group Limited only. The consolidated financial statements of Water Babies Group Limited may be obtained from Water Babies Group Limited, Winslade House, Winslade Park, Manor Drive, Clyst St Mary, Exeter, Devon, EX5 1FY.
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