Company registration number 04048840 (England and Wales)
IPSWICH SCHOOL ENTERPRISES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
PAGES FOR FILING WITH REGISTRAR
IPSWICH SCHOOL ENTERPRISES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
IPSWICH SCHOOL ENTERPRISES LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
89,950
91,227
Current assets
Stocks
5
7,852
5,961
Debtors
6
32,065
19,623
Cash at bank and in hand
212,968
26,772
252,885
52,356
Creditors: amounts falling due within one year
7
(532,831)
(325,748)
Net current liabilities
(279,946)
(273,392)
Net liabilities
(189,996)
(182,165)
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
(189,998)
(182,167)
Total equity
(189,996)
(182,165)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
Mr A Seagers
Director
Company registration number 04048840 (England and Wales)
IPSWICH SCHOOL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
1
Accounting policies
Company information
Ipswich School Enterprises Limited is a private company limited by shares incorporated in England and Wales. The registered office is 25 Henley Road, Ipswich, IP1 3SG.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Ipswich School. These consolidated financial statements are available from its registered office.
1.2
Going concern
These financial statements are prepared on the going concern basis notwithstanding the fact that they show net current liabilities of £279,946 and net liabilities of £189,996. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future with the continued support from the parent, Ipswich School. The directors have also reviewed the cash flow forecasts and budgets for at least the next 12 months from the date of approval of these accounts and are satisfied that the going concern assumption remains appropriate.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.
Revenue from the sale of goods is recognised at the point of sale, when the significant risks and rewards of ownership of the goods have passed to the buyer.
IPSWICH SCHOOL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 3 -
Revenue from facility hires is recognised at the point of hire. Any income received in advance is deferred until the hire has occurred.
1.4
Tangible fixed assets
Any item (or groups of items) and not necessarily on the same order but within the same accounting period with a value more than the capitalisation limit defined below that are considered to have a life longer than the financial year in which they were purchased and are an upgrade or improvement are classed as a tangible fixed asset.
- £5,000 for property improvements and other premises related projects.
- £1,000 for plant and machinery etc.
Finance leases and hire purchases are capitalised and operating leases are not capitalised in-line with FRS102.
Depreciation is recognised on a straight line basis to write off the cost less estimated residual value of each asset over its expected useful life and starts from the month of purchase as follows:
Property Improvements
10 years straight line
Plant and machinery
4 - 10 years straight line
Motor Vehicles
4 years straight line on cost
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
IPSWICH SCHOOL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 4 -
1.8
Financial instruments
The company 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 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 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.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.10
Taxation
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.
IPSWICH SCHOOL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 5 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets' fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
IPSWICH SCHOOL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 6 -
4
Tangible fixed assets
Property improve-ments
Plant and machinery etc
Total
£
£
£
Cost
At 1 September 2022
73,615
162,965
236,580
Additions
20,832
3,072
23,904
Disposals
(2,862)
(2,862)
At 31 August 2023
94,447
163,175
257,622
Depreciation and impairment
At 1 September 2022
38,214
107,139
145,353
Depreciation charged in the year
9,135
14,901
24,036
Eliminated in respect of disposals
(1,717)
(1,717)
At 31 August 2023
47,349
120,323
167,672
Carrying amount
At 31 August 2023
47,098
42,852
89,950
At 31 August 2022
35,401
55,826
91,227
5
Stocks
2023
2022
£
£
Bar stock
7,852
5,961
6
Debtors
2023
2022
as restated
Amounts falling due within one year:
£
£
Trade debtors
16,264
9,127
Other debtors
15,801
10,496
32,065
19,623
IPSWICH SCHOOL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
17,365
4,972
Amounts owed to group undertakings
486,578
301,777
Taxation and social security
3,602
3,668
Other creditors
25,286
15,331
532,831
325,748
At the year-end the company owed £486,578 (2022: £301,777) to Ipswich School. Shortly after the year end, the company paid £184,242 to the School to reduce the balance to £302,336.
Included within other creditors is £nil (2022: £2,448) relating to a hire purchase creditor, which is secured on the underlying asset.
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Helen Rumsey
Statutory Auditor:
Ensors Accountants LLP
Date of audit report:
27 August 2024
9
Related party transactions
Advantage has been taken of the exemption to disclose details of transactions with the parent charity Ipswich School on the basis that 100% of the voting rights are held by Ipswich School. Consolidated financial statements are prepared by Ipswich School which include the accounts of the company and are available from the registered office.
10
Parent company
The parent entity is Ipswich School, a registered charity, its business address is: 25 Henley Road, Ipswich, Suffolk, IP1 3SG.
The ultimate controlling party is Ipswich School Corporate Trustee Limited, a company incorporated in the United Kingdom. The registered office is 25 Henley Road, Ipswich, Suffolk, England, IP1 3SG.
IPSWICH SCHOOL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
11
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Aug 2022
£
£
£
Current assets
Debtors due within one year
28,644
(9,021)
19,623
Capital and reserves
Profit and loss reserves
(173,146)
(9,021)
(182,167)
Notes to reconciliation
A prior year adjustment has been made in relation to underpaid VAT as a result of amending historic partial exemption claims and calculations.