Registered number: 09450731
Further Learning (U.K.) Limited
Unaudited
Director's report and financial statements
Information for filing with the registrar
For the year ended 31 July 2023
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Further Learning (U.K.) Limited
Director's report
For the year ended 31 July 2023
The director presents his report and the financial statements for the year ended 31 July 2023.
Director's responsibilities statement
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The director is responsible for preparing the Director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:
∙select suitable accounting policies for the Company's financial statements 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the company is that of providing fully accredited classroom-based and home study courses that enable students to acquire the skills they need to achieve their career goals.
The fiscal year ending on July 31, 2023, was dedicated to executing our business plan with a particular focus on accelerating the development of new products. We meticulously reviewed our seven strategic drivers to fine-tune the pace and scope of our tactical endeavours, aiming to enhance key business performance indicators, sustain our growth trajectory and take advantage of the tremendous advances in Artificial Intelligence. We remain focused on our purpose, “to make high quality learning accessible; empowering people to do what they truly love and go further” and our vision to have the learners at the heart of everything we do; support them in their development, whether they are studying for the first time on a certificate or are a seasoned learner; design learning that is both powerful and transformative, aware that not everyone learns in the same way and have different starting points and finally, as an education technology business that our technology platforms and systems do truly enhance the learning experience.
Our Deferred Income levels have shown significant resilience, signalling promising revenue prospects for the upcoming year. This is attributable to our income recognition model, commonly practiced in the education and training sector. Revenue derived from sales is initially transferred into deferred income and released as the student progresses throughout the course and the service is delivered. This deferral period increases the longer the duration of the courses provided, which in our case ranges from short term qualifications such as certificates to longer duration qualifications like our Higher National Diplomas.
Effective financial management is paramount in optimizing revenue growth and sustaining our innovation endeavours. We diligently manage costs, leveraging the advances in technology to streamline operations and enhance efficiency. Investing in our team's development ensures their agility in navigating industry shifts and driving innovation forward.
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Further Learning (U.K.) Limited
Director's report (continued)
For the year ended 31 July 2023
Technology is the cornerstone of our operations, and we recognize that the education industry is at the vanguard of the AI revolution. We are confident that our significant experience and expertise in the area will propel us to new heights. Our focus remains on fostering innovation internally, seeking external growth opportunities, and ultimately, prioritizing the growth and outcomes of our learners.
I am proud of the strategic direction we have charted for the business and anticipate another year of significant success ahead.
The director who served during the year was:
In preparing this report, the director has 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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Further Learning (U.K.) Limited
Chartered accountants' report to the director on the preparation of the unaudited statutory financial statements of Further Learning (U.K.) Limited for the year ended 31 July 2023
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Further Learning (U.K.) Limited for the year ended 31 July 2023 which comprise the Balance sheet and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the director of Further Learning (U.K.) Limited in accordance with the terms of our engagement letter dated 21 November 2019. Our work has been undertaken solely to prepare for your approval the financial statements of Further Learning (U.K.) Limited and state those matters that we have agreed to state to the director of Further Learning (U.K.) Limited in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Further Learning (U.K.) Limited and its director for our work or for this report.
It is your duty to ensure that Further Learning (U.K.) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Further Learning (U.K.) Limited. You consider that Further Learning (U.K.) Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or review of the financial statements of Further Learning (U.K.) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Kreston Reeves LLP
Chartered Accountants
Canterbury
2 April 2024
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Further Learning (U.K.) Limited
Registered number: 09450731
Balance sheet
As at 31 July 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 5 to 10 form part of these financial statements.
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2023
Further Learning (U.K.) Limited is a private company limited by shares which was incorporated in England and Wales with the registered number 09450731.
The company's registered office is 111 Park Street, London, W1K 7JF.
2.Accounting policies
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Basis of preparation of financial statements
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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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements are rounded to the nearest pound.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis.
In the making of this assessment, management conducted a comprehensive review of the company’s
financial affairs, including but not limited to:
• The financial position for the financial year ended 31 July 2023
• The Cashflow forecast for the entity for the period up to 31 July 2024
• Sales and profitability forecast for the next three financial years
• The Group Net Liabilities position
Further Learning (U.K.) Limited has achieved sales of a similar level to the previous year, aligning with the company's projections. This outcome underscores the challenges posed by heightened
international and economic uncertainties, where concerns about escalating living costs prompt
consumers to postpone purchase decisions. In response, the group has allocated additional
resources toward establishing new Academies, culminating in the successful launch of the British
Academy of Graphic Design.
Recognizing the prevailing forecasts indicating prolonged higher interest rates and their impact on
consumer behaviour, the group has intensified efforts to diversify its product and academy portfolio.
Despite the considerable investments required in expertise, industry consultations, and quality
control, the group's "Design Mine" framework for new product development provides confidence in
achieving favourable and timely outcomes.
Further Learning (U.K) Limited has demonstrated prudent financial management by relying on
internally generated funds, optimizing cost structures, and strategically managing cash reserves to
weather adverse scenarios. This approach ensures the availability of resources necessary to navigate potential challenges while facilitating the pursuit of growth and expansion strategies.
The group remains determined in its dedication to ongoing projects and markets, implementing
decisive measures to ensure sustained success. The director underscores the key role of profit
generation and positive cash flows in affirming the company's continuity as a going concern. This
commitment extends to meeting and surpassing operational and sales targets while proactively
addressing any emerging challenges.
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2023
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2023
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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The average monthly number of employees during the year was as follows:
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2023
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Charge for the year on owned assets
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2023
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Allotted, called up and fully paid
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100 (2022 - 100) Ordinary shares of £1.00 each
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The company is a wholly owned subsidiary of Further Learning Limited, a company registered in the Republic of Ireland.
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