THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Company Registration Number:
14091589 (England and Wales)

Unaudited statutory accounts for the year ended 31 May 2023

Period of accounts

Start date: 06 May 2022

End date: 31 May 2023

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Contents of the Financial Statements

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

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Company Information

for the Period Ended 31 May 2023




Director: Gemma Bridge
Jessica Liddle
Registered office: 15
Church Lane
Rochdale
England
OL16 1NR
Company Registration Number: 14091589 (England and Wales)

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Directors' Report Period Ended 31 May 2023

The directors present their report with the financial statements of the company for the period ended 31 May 2023

Principal Activities

The company's principal activity during the period was the provision of specialist daycare for children aged 0-7 years with complex health needs and/or learning disabilities across Rochdale and the surrounding areas.

Political and charitable donations

No political or charitable donations were made during the period.

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
Gemma Bridge
06 May 2022
Jessica Liddle
06 May 2022

This report was approved by the board of directors on 6 February 2024
And Signed On Behalf Of The Board By:

Name: Jessica Liddle
Status: Director

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Profit and Loss Account

for the Period Ended 31 May 2023


Notes
13 months to
31 May 2023
£
Turnover 62,775
Cost of sales ( 43,866 )
Gross Profit or (Loss) 18,909
Income from coronavirus (COVID-19) business support grants 0
Distribution Costs ( 0 )
Administrative Expenses ( 91,171 )
Other operating income 0
Operating Profit or (Loss) ( 72,262 )
Interest Receivable and Similar Income 0
Interest Payable and Similar Charges ( 0 )
Profit or (Loss) Before Tax 4 ( 72,262 )
Tax on Profit ( 0 )
Profit or (Loss) for Period ( 72,262 )

The notes form part of these financial statements

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Balance sheet

As at 31 May 2023


Notes
13 months to
31 May 2023
£
Fixed assets
Total fixed assets: -
Current assets
Cash at bank and in hand: 21,633
Total current assets: 21,633
Prepayments and accrued income: 5,595
Creditors: amounts falling due within one year: 5 ( 68,752 )
Net current assets (liabilities): ( 41,524 )
Total assets less current liabilities: ( 41,524 )
Accruals and deferred income: ( 2,860 )
Total net assets (liabilities): ( 44,384 )

The notes form part of these financial statements

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Balance sheet continued

As at 31 May 2023


Notes
13 months to
31 May 2023
£
Capital and reserves
Called up share capital: 2
Profit and loss account: ( 44,386 )
Shareholders funds: ( 44,384 )

For the year ending 31 May 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

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

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 6 February 2024
And Signed On Behalf Of The Board By:

Name: Jessica Liddle
Status: Director

The notes form part of these financial statements

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Notes to the Financial Statements

for the Period Ended 31 May 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Notes to the Financial Statements

for the Period Ended 31 May 2023

  • 2. Employees

    13 months to
    31 May 2023
    Average number of employees during the period 2

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Notes to the Financial Statements

for the Period Ended 31 May 2023

  • 3. Off balance sheet disclosure

    No

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Notes to the Financial Statements

for the Period Ended 31 May 2023

4.Profit or (Loss) before tax

Note 1 Other Revenue
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).

THE NURSERY; SPECIAL EDUCATIONAL NEEDS AND DISABILITY CHILDCARE LTD

Notes to the Financial Statements

for the Period Ended 31 May 2023

5.Creditors: amounts falling due within one year note

13 months to
31 May 2023
£
Taxation and social security 10,582
Other creditors 58,170
Total 68,752

Note 14 Creditors amounts due falling within one year
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.