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Registration number: 06597276

Engagement In Education Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 June 2023

 

Engagement In Education Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 7

 

Engagement In Education Limited

Company Information

Directors

S B Leigh

D Cowley

A Cowley

Registered office

19 Saunders Croft
Walkington
East Yorkshire
HU17 8TG

 

Engagement In Education Limited

(Registration number: 06597276)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

14,250

19,000

Tangible assets

5

1,647

1,938

Investments

6

1

1

 

15,898

20,939

Current assets

 

Debtors

7

3,356

3,985

Creditors: Amounts falling due within one year

8

(78,678)

(39,669)

Net current liabilities

 

(75,322)

(35,684)

Net liabilities

 

(59,424)

(14,745)

Capital and reserves

 

Called up share capital

280

280

Share premium reserve

470,551

470,551

Retained earnings

(530,255)

(485,576)

Shareholders' deficit

 

(59,424)

(14,745)

For the financial year ending 30 June 2023 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 year 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. As permitted by section 444 (5A) of the Companies Act 2006, the Directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 4 March 2024 and signed on its behalf by:
 

.........................................
A Cowley
Director

 

Engagement In Education Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital incorporated in England and Wales and the company registration number is 06597276.

The address of its registered office is:
19 Saunders Croft
Walkington
East Yorkshire
HU17 8TG

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

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

The financial statements are presented in sterling and are rounded to the nearest pound.

Group accounts not prepared

The company has taken advantage of the exemption from preparing group accounts as it is a small group.

Going concern

The directors recognise that there is significant concern over the ability of the company to continue as a going concern due to the net current liabilities of £75,322 and the insolvent balance sheet of £59,424, which are partly due to an overall director's loan balance of £68,052. The directors have confirmed that they will not seek repayment of this until the company has sufficient reserves to do so. The directors have a reasonable expectation that the company's financial position will improve and the directors and shareholders have confirmed they will continue to support the company.

The directors are satisfied that the company will continue as a going concern and that the financial statements can therefore be prepared on this basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of educational support services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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.

 

Engagement In Education Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Tangible assets

Tangible assets are stated in the statement of financial position 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

Office equipment

15% Reducing balance

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the Company in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Company includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Internally generated software development costs

10% on cost

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.

Trade debtors

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

Trade debtors are recognised initially at the transaction price less any bad debts. A provision for the bad debts 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 receivables.

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 subsequently measured at amortised cost using the effective interest method.

 

Engagement In Education Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

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.

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.

3

Staff numbers

The average number of persons employed by the Company (including Directors) during the year, was 3 (2022 - 3).

4

Intangible assets

Software
 £

Total
£

Cost or valuation

At 1 July 2022

47,500

47,500

At 30 June 2023

47,500

47,500

Amortisation

At 1 July 2022

28,500

28,500

Amortisation charge

4,750

4,750

At 30 June 2023

33,250

33,250

Carrying amount

At 30 June 2023

14,250

14,250

At 30 June 2022

19,000

19,000

 

Engagement In Education Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

5

Tangible assets

Office equipment
£

Total
£

Cost or valuation

At 1 July 2022

4,379

4,379

At 30 June 2023

4,379

4,379

Depreciation

At 1 July 2022

2,441

2,441

Charge for the year

291

291

At 30 June 2023

2,732

2,732

Carrying amount

At 30 June 2023

1,647

1,647

At 30 June 2022

1,938

1,938

6

Investments

2023
£

2022
£

Investments in subsidiaries

1

1

Subsidiaries

£

Fair value

At 1 July 2022

1

At 30 June 2023

1

The investment in the subsidiary is at cost and this is deemed to be fair value as the company is dormant.

7

Debtors

2023
£

2022
£

Trade debtors

2,256

3,804

Prepayments

195

181

Other debtors

905

-

3,356

3,985

 

Engagement In Education Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

874

607

Taxation and social security

 

139

1,862

Accruals and deferred income

 

1,554

1,456

Other creditors

 

346

346

Other borrowings

9

68,052

27,424

Bank borrowings

9

7,713

7,974

 

78,678

39,669

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

7,713

7,974

Other borrowings

68,052

27,424

75,765

35,398

Bank overdrafts are unsecured. Other borrowings relate to unsecured Director loan accounts.

10

Related party transactions

Other transactions with Directors

A & D Cowley
At the year end, the company owed the directors £67,274 (2022: £27,096). This amount is unsecured, interest free and repayable on demand.

S Leigh
At the year end, the company owed the director £778 (2022: £328). This amount is unsecured, interest free and repayable on demand.

Summary of transactions with subsidiaries

The company has taken advantage of the exemption in FRS102 Section 1A from disclosing transactions with related parties (wholly owned subsidiaries) that are part of the group.
 

Summary of transactions with other related parties

R Worrell
At the year end, the company owed R Worrell (shareholder) £172 (2022: £172). This loan is unsecured, interest free and repayable on demand.

D Jamison
At the year end, the company owed D Jamison (shareholder) £172 (2022: £172). This loan is unsecured, interest free and repayable on demand.