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REGISTERED NUMBER: 10526074 (England and Wales)














FIRST FOR CHILDCARE 3 LIMITED

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 August 2023






FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Contents of the Financial Statements
for the Year Ended 31 August 2023










Page

Company Information 1

Strategic Report 2 to 3

Report of the Director 4 to 5

Report of the Independent Auditors 6 to 9

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15 to 16

Notes to the Financial Statements 17 to 28


FIRST FOR CHILDCARE 3 LIMITED

Company Information
for the Year Ended 31 August 2023







Director: Ms S C Denton





Registered office: Artisans' House
7 Queensbridge
Northampton
Northamptonshire
NN4 7BF





Business address: Hopper Hill Road
Scarborough
North Yorkshire
YO11 3YS





Registered number: 10526074 (England and Wales)





Auditors: Independent Auditors LLP
Emstrey House North
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Strategic Report
for the Year Ended 31 August 2023


The director presents her strategic report for the year ended 31 August 2023.

The principle activity of the company in the year of review is that of early years childcare activities.

Review of business
This financial year saw the business continue to trade successfully and remain sustainable through extremely difficult conditions. Debt has reduced by 4%, although net debt has risen slightly by 3%

As an industry the Early Years sector has continued to face challenges during FY 22/23.

We continue to see the Govt underfunding the sector. As a company we have overcome this but remaining within the regulatory boundaries and charging for permissible extras. Income has increased by 4%.

We have had many repair and maintenance costs following on from Covid where we could not allow work to be completed due to strict bubbles.

We have now had to pay Business Rates again without any relief. This is a substantial sum of money.

Minimum wage increases and staff costs generally due the pool of potential workers shrinking have forced us to offer increased pay rates. We have to then balance this against the 'affordability' of childcare for existing families and to remain competitive for potential families. Wages costs have risen.

We continued to closely monitor costs and successfully achieve efficiencies without sacrificing quality of service or investment in training or facilities. This ensured that profitability in terms of EBITDA to remain robustly strong.

Increased interest rates have obviously had a huge impact on our loan costs. We are constantly reviewing this and have had to reserve the right with parents to have potentially two fee increases per annum.

Principal risks and uncertainties
It was identified during the year that the principle risks and uncertainties related to inflationary increases as well as staff turnover.

Our ongoing streamlining of costs has left us well placed to deal with inflationary pressures on food and fuel and our strong management team and staff structure enables us to remain competitive in a difficult labour market. In all we are ideally positioned to continue to meet the huge increase in demand for our services.

Future development & plans
Our whole focus is based around providing an engaging environment to enable us to produce intuitive and developing children. We very much see ourselves as a resource, constantly updating the environment and offering new and interesting opportunities to learn.

Over the coming years we are looking at new ways of continuing to develop and grow our nursery bases as well as seeking new opportunities within the area such as more wrap around care such as holiday clubs, before school and after school care for the community.


FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Strategic Report
for the Year Ended 31 August 2023

Key performance indicators
The gross profit percentage achieved was 36.87% as opposed to 45.85% in the previous 12 months, this was a decrease relating to an increase in wages during the year.

The net profit percentage was 3.51% as opposed to 17.07% due to an increase in rising costs.

On behalf of the board:





Ms S C Denton - Director


27 August 2024

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Report of the Director
for the Year Ended 31 August 2023


The director presents her report with the financial statements of the company for the year ended 31 August 2023.

Dividends
Interim dividends totalling £2390 per share were paid during the year. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31 August 2023 will be £ 83,000 .

Director
Ms S C Denton held office during the whole of the period from 1 September 2022 to the date of this report.

Statement of director's responsibilities
The director is responsible for preparing the Strategic Report, the Report of the Director 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she 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 and then apply them consistently;
-make judgements 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 enable her to ensure that the financial statements comply with the Companies Act 2006. She 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.

Statement as to disclosure of information to auditors
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Report of the Director
for the Year Ended 31 August 2023


Auditors
The auditors, Independent Auditors LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





Ms S C Denton - Director


27 August 2024

Report of the Independent Auditors to the Members of
First For Childcare 3 Limited


Qualified Opinion
We have audited the financial statements of First For Childcare 3 Limited (the 'company') for the year ended 31 August 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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, except for the effects of the matters described in the basis for qualified opinion section of
our report, the financial statements:

- give a true and fair view of the state of the company's affairs at 31 August 2023 and of its profit for the
year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion
The audit evidence available to us was limited because no detailed records had been maintained to support sales transactions in September and October 2022 totalling £237,005 following transition to a new software package. Due to the failure of the backup procedures and the previous software provider no holding the data, it has not been possible to obtain information via other means and consequently we were unable to obtain sufficient audit evidence regarding these sales transactions by using other audit procedures.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Report of the Independent Auditors to the Members of
First For Childcare 3 Limited


Other information
The director is responsible for the other information. The other information comprises the information included in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:

- the information given in the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Director has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director.

Report of the Independent Auditors to the Members of
First For Childcare 3 Limited


Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

Inquiry of management, those charged with governance and the company's solicitors around actual and potential litigation and claims.

Inquiry of company staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
First For Childcare 3 Limited


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 a Report of the Auditors 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.




Jonathon Dale BA(Hons) FCA (Senior Statutory Auditor)
for and on behalf of Independent Auditors LLP
Emstrey House North
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

28 August 2024

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Income Statement
for the Year Ended 31 August 2023

2023 2022
Notes £    £   

TURNOVER 3 2,327,620 2,252,767

Cost of sales (1,469,540 ) (1,219,948 )
GROSS PROFIT 858,080 1,032,819

Administrative expenses (531,356 ) (539,618 )
326,724 493,201

Other operating income 4,072 11,327
OPERATING PROFIT 5 330,796 504,528

Interest receivable and similar income 1,742 -
332,538 504,528

Interest payable and similar expenses 6 (250,933 ) (120,025 )
PROFIT BEFORE TAXATION 81,605 384,503

Tax on profit 7 (44,914 ) (113,963 )
PROFIT FOR THE FINANCIAL YEAR 36,691 270,540

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Other Comprehensive Income
for the Year Ended 31 August 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 36,691 270,540


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

36,691

270,540

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Balance Sheet
31 August 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 266,515 340,890
Tangible assets 11 4,339,317 4,415,132
4,605,832 4,756,022

CURRENT ASSETS
Debtors 12 310,803 92,058
Cash at bank and in hand 983,784 1,274,417
1,294,587 1,366,475
CREDITORS
Amounts falling due within one year 13 907,717 917,176
NET CURRENT ASSETS 386,870 449,299
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,992,702

5,205,321

CREDITORS
Amounts falling due after more than
one year

14

(4,107,244

)

(4,269,738

)

PROVISIONS FOR LIABILITIES 18 (42,170 ) (45,986 )
NET ASSETS 843,288 889,597

CAPITAL AND RESERVES
Called up share capital 19 100 100
Retained earnings 20 843,188 889,497
SHAREHOLDERS' FUNDS 843,288 889,597

The financial statements were approved by the director and authorised for issue on 27 August 2024 and were signed by:





Ms S C Denton - Director


FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Statement of Changes in Equity
for the Year Ended 31 August 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 September 2021 100 801,647 801,747

Changes in equity
Dividends - (182,690 ) (182,690 )
Total comprehensive income - 270,540 270,540
Balance at 31 August 2022 100 889,497 889,597

Changes in equity
Dividends - (83,000 ) (83,000 )
Total comprehensive income - 36,691 36,691
Balance at 31 August 2023 100 843,188 843,288

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Cash Flow Statement
for the Year Ended 31 August 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 488,601 744,694
Interest paid (250,933 ) (120,025 )
Tax paid (102,622 ) (221,865 )
Net cash from operating activities 135,046 402,804

Cash flows from investing activities
Purchase of tangible fixed assets (13,097 ) (24,669 )
Interest received 1,742 -
Net cash from investing activities (11,355 ) (24,669 )

Cash flows from financing activities
Capital repayments in year (175,113 ) (145,498 )
Amount withdrawn by directors (156,211 ) -
Equity dividends paid (83,000 ) (182,690 )
Net cash from financing activities (414,324 ) (328,188 )

(Decrease)/increase in cash and cash equivalents (290,633 ) 49,947
Cash and cash equivalents at beginning
of year

2

1,274,417

1,224,470

Cash and cash equivalents at end of
year

2

983,784

1,274,417

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Cash Flow Statement
for the Year Ended 31 August 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 81,605 384,503
Depreciation charges 163,287 180,488
Finance costs 250,933 120,025
Finance income (1,742 ) -
494,083 685,016
Increase in trade and other debtors (63,196 ) (25,836 )
Increase in trade and other creditors 57,714 85,514
Cash generated from operations 488,601 744,694

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2023
31/8/23 1/9/22
£    £   
Cash and cash equivalents 983,784 1,274,417
Year ended 31 August 2022
31/8/22 1/9/21
£    £   
Cash and cash equivalents 1,274,417 1,224,470


FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Cash Flow Statement
for the Year Ended 31 August 2023


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/9/22 Cash flow At 31/8/23
£    £    £   
Net cash
Cash at bank and in hand 1,274,417 (290,633 ) 983,784
1,274,417 (290,633 ) 983,784
Debt
Debts falling due within 1 year (172,109 ) 12,619 (159,490 )
Debts falling due after 1 year (4,269,738 ) 162,494 (4,107,244 )
(4,441,847 ) 175,113 (4,266,734 )
Total (3,167,430 ) (115,520 ) (3,282,950 )

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements
for the Year Ended 31 August 2023


1. STATUTORY INFORMATION

First For Childcare 3 Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

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 apparentfrom other sources. The estimates and associated assumptions are based on historical experience and otherfactors 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 accountingestimates are recognised in the period in which the estimate is revised where the revision affects only thatperiod, or in the period of the revision and future periods where the revision affects both current and futureperiods.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the value of work carried out in respect of services provided to customers. Turnover is recognised when the company obtains the right to consideration.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Improvements to property - 10% on cost
Plant and machinery - 25% on cost

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes a 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 intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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, which the transaction is measured at the present value of the future receipts discounted at market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangement 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, 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 payments 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.

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

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


2. ACCOUNTING POLICIES - continued

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


2. ACCOUNTING POLICIES - continued

Going concern
The current economic conditions present increased risks for all businesses. In response to such conditions, the director has carefully considered these risks, including an assessment of uncertainty on future trading projections for a period of at least twelve months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

Based on this assessment, the director considers that the Company maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations of external liabilities.

In addition, the Company's assets are assessed for recoverability on a regular basis, and the director considers that the Company is not exposed to losses of these assets which would affect their decision to adopt the going concern basis.

The director is therefore satisfied and has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. Theses financial statements have therefore been prepared on a going concern basis.

Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Services 2,327,620 2,252,767
2,327,620 2,252,767

The whole of the turnover is attributable to the principle activity of the company wholly undertaken in the United Kingdom.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,258,340 1,024,400
Social security costs 84,345 63,046
Other pension costs 22,655 17,505
1,365,340 1,104,951

The average number of employees during the year was as follows:
2023 2022

Staff 70 64

2023 2022
£    £   
Director's remuneration - -

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 16,085 14,930
Other operating leases 17,340 18,480
Depreciation - owned assets 88,912 106,115
Goodwill amortisation 74,375 74,375
Auditors' remuneration 16,200 15,600

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest - 906
Bank loan interest 250,933 119,119
250,933 120,025

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 48,730 103,438

Deferred tax (3,816 ) 10,525
Tax on profit 44,914 113,963

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 81,605 384,503
Profit multiplied by the standard rate of corporation tax in the UK
of 21.520% (2022 - 19%)

17,561

73,056

Effects of:
Income not taxable for tax purposes - 2,496
Depreciation in excess of capital allowances 32,007 27,886
Adjustments to tax charge in respect of previous periods (838 ) -
Deferred tax (3,816 ) 10,525
Total tax charge 44,914 113,963

8. DIVIDENDS
2023 2022
£    £   
Interim 83,000 182,690

9. GOVERNMENT GRANTS

During the financial year, the nursery received grants from the local authorities totalling £4,025 (2022: £11,325). These grants were provided in relation to SENDIFS and apprenticeship grant payments.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


10. INTANGIBLE FIXED ASSETS
Goodwill
£   
Cost
At 1 September 2022
and 31 August 2023 743,752
Amortisation
At 1 September 2022 402,862
Amortisation for year 74,375
At 31 August 2023 477,237
Net book value
At 31 August 2023 266,515
At 31 August 2022 340,890

11. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery Totals
£    £    £    £   
Cost
At 1 September 2022 4,746,294 28,280 174,497 4,949,071
Additions - - 13,097 13,097
Disposals - - (2,824 ) (2,824 )
At 31 August 2023 4,746,294 28,280 184,770 4,959,344
Depreciation
At 1 September 2022 385,637 2,828 145,474 533,939
Charge for year 71,194 2,828 14,890 88,912
Eliminated on disposal - - (2,824 ) (2,824 )
At 31 August 2023 456,831 5,656 157,540 620,027
Net book value
At 31 August 2023 4,289,463 22,624 27,230 4,339,317
At 31 August 2022 4,360,657 25,452 29,023 4,415,132

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 86,739 58,116
Other debtors 6,555 -
Directors' current accounts 155,549 -
Prepayments and accrued income 61,960 33,942
310,803 92,058

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 159,490 172,109
Trade creditors 96,464 79,094
Tax 49,546 103,438
Social security and other taxes 19,344 15,789
Other creditors 372,573 371,014
Directors' current accounts - 662
Accruals and deferred income 210,300 175,070
907,717 917,176

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 15) 4,107,244 4,269,738

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 159,490 172,109

Amounts falling due between one and two years:
Bank loans - 1-2 years 171,879 170,184

Amounts falling due between two and five years:
Bank loans - 2-5 years 594,248 562,834

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


15. LOANS - continued
2023 2022
£    £   
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 3,341,117 3,536,720

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 13,680 13,680
Between one and five years 1,140 14,820
14,820 28,500

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 4,227,844 4,397,401

Bank loans are secured on land and property held by the company.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 42,170 45,986

Deferred
tax
£   
Balance at 1 September 2022 45,986
Provided during year (3,816 )
Balance at 31 August 2023 42,170

The deferred tax account consists of the tax effect of timing differences in respect of accelerated capital allowances.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary £1.00 100 100

20. RESERVES
Retained
earnings
£   

At 1 September 2022 889,497
Profit for the year 36,691
Dividends (83,000 )
At 31 August 2023 843,188

Profit and loss account - This reserve records retained earnings and accumulated losses

21. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 August 2023 and 31 August 2022:

2023 2022
£    £   
Ms S C Denton
Balance outstanding at start of year (662 ) (662 )
Amounts advanced 244,011 187,490
Amounts repaid (87,800 ) (187,490 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 155,549 (662 )

The balance outstanding at the end of the year was repaid on 6 April 2024.

22. RELATED PARTY DISCLOSURES

Other related parties
2023 2022
£    £   
Amount due to related parties 366,953 366,953

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2023


22. RELATED PARTY DISCLOSURES - continued

There are no formal terms of repayment of the related party balances.