The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Annual report and Financial Statements
For the year ended 31 August 2023
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Company information
Directors
Mrs E A Palin
Mr T G Walker
Ms A Gunns
(Appointed 28 June 2023)
Company number
06779537
Registered office
Dean Row Court
Summerfields Village Centre
Dean Row Road
Wilmslow
Cheshire
England
SK9 2TA
Auditor
DJH Mitten Clarke Audit Limited
St George's House
56 Peter Street
Manchester
M2 3NQ
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
Notes to the financial statements
15 - 27
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Strategic report
For the year ended 31 August 2023
- 1 -

The National Teaching & Advisory Service (NT&AS) operates within the private education sector. Its customers are almost exclusively local authorities and schools. In addition it works alongside a private fostering agency, Three Circles Fostering. Its client group are probably the most vulnerable group of children and young people in society.

Review of the business

NT&AS has continued to thrive and produce a further set of successful financial results for the year September 1st 2022 to August 31st 2023. The previous financial year was primarily concerned with recovery from the bespoke services we developed during the ‘covid period’ from which we transitioned successfully from remote learning to the renewal of direct contact with our children. After a slow start the organisation recorded a noticeable bounce back in terms of hours discharged across the service.

Principal risks and uncertainties

Principal risks and uncertainties identified last year, remain. The directors are mindful of the potential threats to future success. We are, at the same time, confident that we have the reputation and expertise to continue to provide services for which we have few competitors. The growth in education agencies in effect trespassing on our operations and undercutting our prices has been a trend that has been apparent over the past five years or more. These competitors are attractive to local authorities by providing a significantly lower level of input at a much lower cost. However, we have still managed to grow the organisation during this period. This has also coincided with an number of local authorities increasingly going out to tender. We have been successful in almost all tenders we have put forward, and local authorities remain confident in the quality of what NT&AS delivers.

Development and performance

It is our intention to continue to pursue these opportunities as and when they arise. We have noticed a contraction in the employment market, particularly in the availability of qualified teachers across the UK who are able to work for NT&AS. This is partly the consequence of covid and changing patterns of work, partly through government initiatives to compensate for the covid effect on children’s education by taking up a significant number of available teachers, and, of course, Brexit. We also anticipate future downward pressure on our pricing, together with increased costs, particularly with regards to salary and associated staff costs. Our intention is to increase the number of commissioned hours and meet these challenges with the target of maintaining turnover, and in the best case scenario increase it.

Key performance indicators

2023          2022

Revenue             £13.0m         £12.0m

EBITDA                £1.0m              £1.5m

Shareholders funds         £1.6m               £1.2m

Teaching hours         253,956     235,740

Other information and explanations

Significantly during this period, the organisation has been subject to many take over bids as a consequence of its financial expansion and success. Our response to that has been to transition The National Teaching & Advisory Service from a privately owned company to an Employee Ownership Trust (EOT). This decision was taken by the directors to protect the company’s future. The present directors have no immediate plans to exit the business and continue to both serve in their current roles, as well as serve as two of the three trustees. The third trustee is Allison Gunns who also serves as the organisation’s chief financial officer. The transition was a smooth one, and despite the change in ownership there are no alterations to its overall day to day management.

We look to the future optimistically, and believe we have contributed significantly to the long term viability and stability of the company by effecting this constitutional change.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Strategic report (continued)
For the year ended 31 August 2023
- 2 -

On behalf of the board

Mr T G Walker
Director
11 March 2024
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Directors' report
For the year ended 31 August 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 August 2023.

Principal activities

The principal activity of the company and group continued to be that of teaching, advice and support for children.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs E A Palin
Mr T G Walker
Ms A Gunns
(Appointed 28 June 2023)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Auditor

The auditor, DJH Mitten Clarke Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Directors' report (continued)
For the year ended 31 August 2023
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually 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 auditor of the company is aware of that information.

On behalf of the board
Mr T G Walker
Director
11 March 2024
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Independent auditor's report
To the members of The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
- 5 -
Opinion

We have audited the financial statements of The National Teaching & Advisory Service For Looked After Children And Children In Need Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.

Conclusions relating to going concern

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 group's and parent 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Independent auditor's report (continued)
To the members of The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 auditor's 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.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Independent auditor's report (continued)
To the members of The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
- 7 -

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our 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 auditor's 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.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Independent auditor's report (continued)
To the members of The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
- 8 -
Christopher Abbott FCA (Senior Statutory Auditor)
For and on behalf of DJH Mitten Clarke Audit Limited
11 March 2024
Accountants and Registered Auditors
St George's House
56 Peter Street
Manchester
M2 3NQ
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Group statement of comprehensive income
For the year ended 31 August 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
13,067,751
12,078,279
Administrative expenses
(12,055,202)
(10,621,282)
Operating profit
4
1,012,549
1,456,997
Interest receivable and similar income
7
-
0
1,687
Profit before taxation
1,012,549
1,458,684
Tax on profit
8
(231,435)
(275,850)
Profit for the financial year
20
781,114
1,182,834
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Group balance sheet
As at 31 August 2023
31 August 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
25,860
30,396
Current assets
Debtors
13
1,471,480
1,682,260
Cash at bank and in hand
576,980
1,193,848
2,048,460
2,876,108
Creditors: amounts falling due within one year
14
(423,866)
(1,691,501)
Net current assets
1,624,594
1,184,607
Total assets less current liabilities
1,650,454
1,215,003
Provisions for liabilities
Deferred tax liability
16
7,027
4,637
(7,027)
(4,637)
Net assets
1,643,427
1,210,366
Capital and reserves
Called up share capital
18
67
67
Capital redemption reserve
19
10
10
Profit and loss reserves
20
1,643,350
1,210,289
Total equity
1,643,427
1,210,366
The financial statements were approved by the board of directors and authorised for issue on 11 March 2024 and are signed on its behalf by:
11 March 2024
Mr T G Walker
Director
Company registration number 06779537 (England and Wales)
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Company balance sheet
As at 31 August 2023
31 August 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
150,077
150,077
Current assets
Debtors
13
300
300
Creditors: amounts falling due within one year
14
(148,700)
(148,700)
Net current liabilities
(148,400)
(148,400)
Net assets
1,677
1,677
Capital and reserves
Called up share capital
18
67
67
Capital redemption reserve
19
10
10
Profit and loss reserves
20
1,600
1,600
Total equity
1,677
1,677

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2022 - £1,350,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 11 March 2024 and are signed on its behalf by:
11 March 2024
Mr T G Walker
Director
Company registration number 06779537 (England and Wales)
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Group statement of changes in equity
For the year ended 31 August 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2021
67
10
1,377,455
1,377,532
Year ended 31 August 2022:
Profit and total comprehensive income
-
-
1,182,834
1,182,834
Dividends
-
-
(1,350,000)
(1,350,000)
Balance at 31 August 2022
67
10
1,210,289
1,210,366
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
781,114
781,114
Gift to trust
-
-
(348,053)
(348,053)
Balance at 31 August 2023
67
10
1,643,350
1,643,427
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Company statement of changes in equity
For the year ended 31 August 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2021
67
10
1,600
1,677
Year ended 31 August 2022:
Profit and total comprehensive income for the year
-
-
1,350,000
1,350,000
Dividends
-
-
(1,350,000)
(1,350,000)
Balance at 31 August 2022
67
10
1,600
1,677
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
-
-
0
Balance at 31 August 2023
67
10
1,600
1,677
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Group statement of cash flows
For the year ended 31 August 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
486,174
1,924,754
Income taxes paid
(116,073)
(273,225)
Net cash inflow from operating activities
370,101
1,651,529
Investing activities
Purchase of tangible fixed assets
(10,930)
(17,242)
Interest received
-
0
1,687
Net cash used in investing activities
(10,930)
(15,555)
Financing activities
Repayment of director loans
(627,986)
-
Dividends paid to equity shareholders
-
(1,350,000)
Gift to trust
(348,053)
-
0
Net cash used in financing activities
(976,039)
(1,350,000)
Net (decrease)/increase in cash and cash equivalents
(616,868)
285,974
Cash and cash equivalents at beginning of year
1,193,848
907,874
Cash and cash equivalents at end of year
576,980
1,193,848
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements
For the year ended 31 August 2023
- 15 -
1
Accounting policies
Company information

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office can be found on the company information page.

 

The group consists of The National Teaching & Advisory Service For Looked After Children And Children In Need Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company The National Teaching & Advisory Service For Looked After Children And Children In Need Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 August 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

The group, which the directors consider to be unique, has a healthy balance sheet, a strong history of profitability and strong relationships with local authority commissioners and commissioning schools.

 

The group focuses on the educational, social and mental health needs of vulnerable children, and it is considered highly unlikely that there would be any significant decrease in circumstances that would require children and young people to access the services we offer.

 

As a result, the directors are satisfied that the group is a going concern and in making this assessment have considered a period of time of a minimum of 12 months from the date of signing.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for teaching services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
- 16 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
Intangible fixed assets - goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2009, is being amortised evenly over its estimated useful life of ten years.

 

As shown in the notes to the financial statements, at the balance sheet date the carrying value of goodwill has been fully amortised.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Over lease term
Fixtures and fittings
20% on cost
Computer equipment
25% on cost
1.7
Fixed asset investments

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
- 18 -
1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.12
Employee benefits

Short term employee benefits, including holiday pay are recognised as an expense in the income statement in the period in which they are incurred.

1.13
Retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

1.14

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful life of tangible assets

Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as set out in the company's accounting policy. The selection of these estimated lives requires the exercise of management judgement and is based upon historical experience. Useful lives are regularly reviewed and should management's assessment of useful lives shorten then charges in the financial statements would increase and carrying amounts of fixed assets would reduce accordingly.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Education casework
13,067,751
12,078,279
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
13,067,751
12,078,279
2023
2022
£
£
Other revenue
Interest income
-
1,687
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
13,473
13,087
Loss on disposal of tangible fixed assets
1,992
-
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,000
11,850
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
- 20 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
4
2
2
2
Admin and support staff
15
15
-
-
Teachers
381
399
-
-
Total
400
416
2
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
9,005,183
7,831,650
-
0
-
0
Social security costs
910,629
800,393
-
-
Pension costs
338,014
230,504
-
0
-
0
10,253,826
8,862,547
-
0
-
0

The key management personnel are considered to be the directors and operations manager. The aggregate amount of compensation paid to key management personnel during the year was £174,534 (2022: £159,837).

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
-
1,687
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
234,029
277,773
Adjustments in respect of prior periods
(4,984)
-
0
Total current tax
229,045
277,773
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
8
Taxation
2023
2022
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
2,390
(1,923)
Total tax charge
231,435
275,850

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,012,549
1,458,684
Expected tax charge based on the standard rate of corporation tax in the UK of 21.52% (2022: 19.00%)
217,901
277,150
Tax effect of expenses that are not deductible in determining taxable profit
18,658
2,397
Adjustments in respect of prior years
(4,984)
-
0
Deferred tax adjustments in respect of prior years
2,390
-
0
Effects of super deduction on capital allowances
(1,190)
(984)
Capital allowances in excess of depreication
(1,340)
(2,713)
Taxation charge
231,435
275,850
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 September 2022 and 31 August 2023
150,000
Amortisation and impairment
At 1 September 2022 and 31 August 2023
150,000
Carrying amount
At 31 August 2023
-
0
At 31 August 2022
-
0
The company had no intangible fixed assets at 31 August 2023 or 31 August 2022.
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
- 22 -
10
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 September 2022
6,187
12,316
83,993
102,496
Additions
-
0
198
10,730
10,928
Disposals
-
0
-
0
(18,399)
(18,399)
At 31 August 2023
6,187
12,514
76,324
95,025
Depreciation and impairment
At 1 September 2022
3,375
12,228
56,497
72,100
Depreciation charged in the year
2,250
80
11,143
13,473
Eliminated in respect of disposals
-
0
-
0
(16,408)
(16,408)
At 31 August 2023
5,625
12,308
51,232
69,165
Carrying amount
At 31 August 2023
562
206
25,092
25,860
At 31 August 2022
2,812
88
27,496
30,396
The company had no tangible fixed assets at 31 August 2023 or 31 August 2022.
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
150,077
150,077
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2022 and 31 August 2023
150,077
Carrying amount
At 31 August 2023
150,077
At 31 August 2022
150,077
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
- 23 -
12
Subsidiaries

Details of the company's subsidiaries at 31 August 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
The National Teaching & Advisory Service Limited
Dean Row Court, Summerfields Village Centre, Dean Row Road, Wilmslow,
Cheshire, SK9 2TA
Teaching, advice and support for children
Ordinary
100.00
13
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,047,093
1,163,792
-
0
-
0
Other debtors
340,851
438,009
-
0
-
0
Prepayments and accrued income
83,536
80,459
300
300
1,471,480
1,682,260
300
300
14
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
53,636
43,446
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
148,700
148,700
Corporation tax payable
234,029
121,057
-
0
-
0
Other taxation and social security
77,320
736,414
-
-
Other creditors
29,587
684,821
-
0
-
0
Accruals and deferred income
29,294
105,763
-
0
-
0
423,866
1,691,501
148,700
148,700
15
Secured debts

As security for the the group's invoice discounting facility a debenture, dated 30th January 2008 is held incorporating a fixed and floating charge over the undertaking and all property and assets past and future including goodwill, uncalled capital, buildings, fixtures, fixed plant and machinery.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
- 24 -
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
7,027
7,599
Unpaid pension contributions
-
(2,962)
7,027
4,637
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 September 2022
4,637
-
Charge to profit or loss
2,390
-
Liability at 31 August 2023
7,027
-

As at 31 August 2023 a deferred tax liability of £7,027 (2022: £4,637) has been recognised due to the reasonable expectation of tax payable in future periods in respect of taxable temporary differences.

 

There is no unrecognised deferred tax.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
338,014
230,504

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

Contributions totalling £Nil (2022: £23,057) were payable to the scheme at the end of the year and.

The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
- 25 -
18
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
67
67
67
67
19
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
10
10
10
10
20
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
1,210,289
1,377,455
1,600
1,600
Profit for the year
781,114
1,182,834
-
0
1,350,000
Dividends
-
(1,350,000)
-
(1,350,000)
Gift to trust
(348,053)
-
-
-
At the end of the year
1,643,350
1,210,289
1,600
1,600
21
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
10,563
42,250
-
-
Between two and five years
-
10,563
-
-
10,563
52,813
-
-
22
Related party transactions
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
22
Related party transactions
(Continued)
- 26 -

In June 2023 a majority shareholding in the company was acquired by the NT&AS Employee Ownership Trust (EOT). During the year £348,503 was gifted to the EOT which controls the company, to help the trust meet its costs.

 

Three Circles Fostering Limited, a related company with common control

 

At the year end £28,715 (2022: £6,184) was owed to Three Circles Fostering Limited.

 

Both companies share the same offices and some services. During the year the company provided services to Three Circles Fostering Limited of Educational Casework charges of £144,000 (2022 - £135,000).

 

Rates and rental recharges of £90,247 (2022 - £96,808). and photocopying and other recharges of £8,845 (2022 - £12,907).

 

The ultimate controlling party is the EOT.

23
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
781,114
1,182,834
Adjustments for:
Taxation charged
231,435
275,850
Investment income
-
0
(1,687)
Loss on disposal of tangible fixed assets
1,992
-
Depreciation and impairment of tangible fixed assets
13,474
13,087
Movements in working capital:
Decrease/(increase) in debtors
210,780
(71,522)
(Decrease)/increase in creditors
(752,621)
526,192
Cash generated from operations
486,174
1,924,754
24
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
-
1,350,000
Adjustments for:
Investment income
-
0
(1,350,000)
Cash absorbed by operations
-
-
The National Teaching & Advisory Service For Looked After Children And Children In Need Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2023
- 27 -
25
Analysis of changes in net funds - group
1 September 2022
Cash flows
31 August 2023
£
£
£
Cash at bank and in hand
1,193,848
(616,868)
576,980
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