Company Registration No. 11384192 (England and Wales)
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
COMPANY INFORMATION
Directors
The Earl of Mornington
Her Grace The Duchess of Wellington
Miss H M Williams
Mr J W M Baugh
Mr A J Winter
Dr K E Granville-Chapman
(Appointed 1 January 2024)
Mr J R O Massey
(Appointed 1 December 2023)
Company number
11384192
Registered office
The Estate Office
Stratfield Saye
Hampshire
United Kingdom
RG7 2BT
Auditor
Shaw Gibbs (Audit) Limited
264 Banbury Road
Oxford
OX2 7DY
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

The directors present the strategic report for the year ended 31 August 2023.

Principal activities

The principal activity of the company is that of running a first-class academic educational school for children aged between 3 to 13 years old.

Review of the business

The company has had a successful year of trading, Turnover increased to £4,364,398 (2022: £4,251,065) partly due to the increase in fees and partly due to the increased number of school trips. EBITDA decreased to £258,296 (2022: £735,602). This is due to increases in salaries, property repairs, electricity and the rebranding to Wellesley Prep School Limited. Pupil numbers and recruitment remain strong and there are no bad debts. Expenditure of £298,018 (2022: £214,782) was incurred to maintain the school in good condition.

 

The new dining room and classroom building opened in the Michaelmas 2022 term and has been transformational in the daily operation of the school.

 

The school changed its name on 29 August 2022 and is now called Wellesley Prep School Limited.

Principal risks and uncertainties

The board considers the matters described below to be the principal risks and uncertainties the business faces and were not considered to be significant at the balance sheet date.

 

Recession

 

The impact of a global recession could hit pupil numbers and payment of fees

 

Change in Fiscal Policy

 

If the Government introduced VAT on school fees, fees would increase by 20% which could make this unaffordable for some families, leading to a reduction in pupil numbers

 

Loss of Key Staff

 

The teaching, support and management staff at the school are integral to its success and culture. Loss of key members of staff could impact pupil experience and consequently pupil numbers.

 

Poor Facilities

 

The facilities are integral to the pupil experience. If not kept up to date, this could also impact pupil numbers.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
Key performance indicators

The company uses several key performance indicators ('KPIsi) to manage and direct the performance of the

business to consistently deliver a service which exceeds parent expectations.

 

Fee income £4,129,099 (2022: £4,027,413)

Cost of Sales Salary costs £2,408,477 (58% of fee income) (2022: £2,169,040 (54% of fee income))

 

Non-financial key performance indicators used are:

 

Pupil numbers – 316 by the Summer term (2022: 330)

 

Scholarships and special accolades awarded — 12 in the year (2022: 11).

 

40 (2022: 34) places were gained to the following schools after success at Common Entrance (or scholarship exams): Bradfield, Brighton, Canford, Dauntseys, Lord Wandsworth, Milfield, Pangbourne, Rookwood, Sherborne, Teddies, Wellington, Winchester and Wycombe Abbey.

 

Future plans

 

The company is focusing on an improvement in IT to improve the education provision.

 

On behalf of the board

Miss H M Williams
Director
27 August 2024
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 August 2023.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The Earl of Mornington
Her Grace The Duchess of Wellington
Miss H M Williams
Mr A P Speed
(Resigned 30 November 2022)
Mr J W M Baugh
Mr A J Winter
Mr E B R Venables
(Resigned 29 May 2023)
Dr K E Granville-Chapman
(Appointed 1 January 2024)
Mr J R O Massey
(Appointed 1 December 2023)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

Shaw Gibbs (Audit) Limited were appointed as auditor to the company and is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future plans and principal risks and uncertainties.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Miss H M Williams
Director
27 August 2024
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:

 

 

The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WELLESLEY PREP SCHOOL LIMITED
- 5 -
Opinion

We have audited the financial statements of Wellesley Prep School Limited (the 'company') for the year ended 31 August 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 the financial statements:

Basis for opinion

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 Auditor's 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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 our audit:

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WELLESLEY PREP SCHOOL LIMITED (CONTINUED)
- 6 -
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 directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine is 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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 and on the Financial Reporting Council's website, 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.

 

1. At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the company and how the management seek to comply with those laws regulations. This helps us to plan appropriate risk assessments.

 

2. During the audit we focus on relevant risk areas and review the compliance with the laws and regulations by making relevant enquiries and undertaking corroboration, for example by reviewing Board Minutes and other documentation.

 

3. We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures including:

a. Reviewing the controls set in place by management;

b. Making enquiries of management as to whether they consider fraud or other irregularity may have taken place, or where such opportunity might exist;

c. Challenging management assumptions with regard to accounting estimates;

d. Identifying and testing journal entries, particularly those which appear to be unusual by size or nature.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WELLESLEY PREP SCHOOL LIMITED (CONTINUED)
- 7 -

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Mark Dickinson
Senior Statutory Auditor
For and on behalf of Shaw Gibbs (Audit) Limited
28 August 2024
Chartered Certified Accountants
Statutory Auditor
264 Banbury Road
Oxford
OX2 7DY
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
4,364,398
4,251,065
Cost of sales
(2,846,735)
(2,563,604)
Gross profit
1,517,663
1,687,461
Administrative expenses
(2,268,308)
(1,805,858)
Other operating income
67,906
42,208
Operating loss
6
(682,739)
(76,189)
Interest receivable and similar income
7
2,017
4,468
Interest payable and similar expenses
8
(250,568)
(246,181)
Loss before taxation
(931,290)
(317,902)
Tax on loss
9
457,289
(74,039)
Loss for the financial year
(474,001)
(391,941)

 

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2023
31 August 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
2,010,743
2,412,820
Tangible assets
11
4,562,761
4,485,285
6,573,504
6,898,105
Current assets
Stocks
12
2,621
2,898
Debtors
13
1,420,817
1,037,468
Cash at bank and in hand
111,312
1,209,653
1,534,750
2,250,019
Creditors: amounts falling due within one year
14
(2,580,529)
(3,076,767)
Net current liabilities
(1,045,779)
(826,748)
Total assets less current liabilities
5,527,725
6,071,357
Creditors: amounts falling due after more than one year
16
(7,404,506)
(7,360,972)
Provisions for liabilities
Deferred tax liability
17
-
0
137,366
-
(137,366)
Net liabilities
(1,876,781)
(1,426,981)
Capital and reserves
Called up share capital
18
1
1
Profit and loss reserves
(1,876,782)
(1,426,982)
Total equity
(1,876,781)
(1,426,981)
The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
Miss H M Williams
Director
Company registration number 11384192 (England and Wales)
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 September 2021
1
(1,096,903)
(1,096,902)
Year ended 31 August 2022:
Loss and total comprehensive income
-
(391,941)
(391,941)
Capital contribution
-
61,862
61,862
Balance at 31 August 2022
1
(1,426,982)
(1,426,981)
Year ended 31 August 2023:
Loss and total comprehensive income
-
(474,001)
(474,001)
Capital contribution
-
24,201
24,201
Balance at 31 August 2023
1
(1,876,782)
(1,876,781)
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
1
Accounting policies
Company information

Wellesley Prep School Limited is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is The Estate Office, Stratfield Saye, Hampshire, United Kingdom, RG7 2BT.

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, including the provisions of the Large and Medium sized Companies and Group (Accounts and Reports) Regulations 2008.

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 £1.

The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.

 

The 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:

 

 

The financial statements of the company are consolidated in the financial statements of Wellington Estates Holdings Limited. These consolidated financial statements are available from its registered office, The Estate Office, Stratfield Saye, Hampshire, RG7 2BT.

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:

 

 

The financial statements of the company are consolidated in the financial statements of Wellington Estates Holdings Limited. These consolidated financial statements are available from its registered office, The Estate Office, Stratfield Saye, Hampshire, RG7 2BT.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern

As at 31 August 2023, the company had net current liabilities of £1,045,779 (2022: £826,748) and net liabilities of £true1,876,781 (2022: £1,426,981). The company also reported a loss after taxation for the year £474,001 (2022: £391,941). No impact on going concern is expected as a result of the significant interest charges of £246,718 (2022: £246,181), and the company continues to be supported by its related parties, therefore the financial statements have been prepared on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.

 

Fees receivable and charges for services are accounted for in the period in which the service is provided.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
5% straight line and 10% straight line
Fixtures and fittings
20% straight line
Computers
33.33% straight line

Assets in the course of construction are not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

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.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 13 -
1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

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 statement of financial position 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 debtors, cash and bank balances and amounts owed by related parties, 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and amounts owed to group undertakings, 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs.

1.10
Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.

 

Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited tother comprehensive income, or equity.

Current tax

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.

 

Current tax is based on the taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date.

 

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

1.12
Retirement benefits

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

 

Teaching staff of the school received retirement benefits from the Teachers' Pension Scheme ('TPS') until 31 August 2020 when the company left the TPS and joined the Aviva Pension Trust for Independent Schools.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

 

During the current year amounts totalling £68,994 (2022: 69,476) were received in relation to early years funding.

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.

 

The directors have considered whether any critical estimates or judgements have been made in the preparation of these financial statements and they believe there are none to note.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 16 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Fees for educational services
4,364,398
4,251,065
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
4,364,398
4,251,065
2023
2022
£
£
Other revenue
Interest income
2,017
4,468
Sundry income
67,906
46,714
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Teachers
54
51
Maintenance
3
3
Administration
6
5
Domestic
5
8
Total
68
67

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,249,047
2,005,646
Social security costs
211,195
187,376
Pension costs
227,422
240,808
2,687,664
2,433,830
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
-
0
214
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
5
Directors' remuneration
(Continued)
- 17 -

During the current or prior year no director accrued contributions under defined benefit pension schemes.

6
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,500
7,900
Depreciation of owned tangible fixed assets
243,958
114,714
Amortisation of intangible assets
402,077
402,077
Operating lease charges
295,000
295,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest income
2,017
4,468
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank loans
151,036
154,568
Unwinding of discount on loan from other related party
99,532
91,613
250,568
246,181
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 18 -
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(457,289)
74,039

The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(931,290)
(317,902)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(232,823)
(60,401)
Deferred tax movement
(457,289)
-
0
Tax effect of expenses that are not deductible in determining taxable profit
140,704
17,406
Effect of change in corporation tax rate
-
0
19,988
Group relief
73,645
54,180
Permanent capital allowances in excess of depreciation
18,474
52,110
Movement in deferred tax not recognised
-
0
(9,244)
Taxation (credit)/charge for the year
(457,289)
74,039
10
Intangible fixed assets
Goodwill
£
Cost
At 1 September 2022 and 31 August 2023
4,020,769
Amortisation and impairment
At 1 September 2022
1,607,949
Amortisation charged for the year
402,077
At 31 August 2023
2,010,026
Carrying amount
At 31 August 2023
2,010,743
At 31 August 2022
2,412,820

The amortisation charge for the year is included in administrative expenses.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 19 -
11
Tangible fixed assets
Leasehold improvements
Assets under construction
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 September 2022
3,807,264
593,319
207,105
105,084
4,712,772
Additions
308,595
-
0
3,659
9,180
321,434
Transfers
11,252
(11,252)
-
0
-
0
-
0
At 31 August 2023
4,127,111
582,067
210,764
114,264
5,034,206
Depreciation and impairment
At 1 September 2022
102,530
-
0
94,149
30,808
227,487
Depreciation charged in the year
165,339
-
0
41,397
37,222
243,958
At 31 August 2023
267,869
-
0
135,546
68,030
471,445
Carrying amount
At 31 August 2023
3,859,242
582,067
75,218
46,234
4,562,761
At 31 August 2022
3,704,734
593,319
112,956
74,276
4,485,285
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,621
2,898
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
968,764
966,623
Unpaid share capital
1
1
Prepayments and accrued income
132,129
70,844
1,100,894
1,037,468
Deferred tax asset (note 17)
319,923
-
0
1,420,817
1,037,468
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 20 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
15
106,845
106,845
Trade creditors
111,183
449,666
Amounts owed to group undertakings
295,000
295,000
Taxation and social security
52,554
47,671
Loans owed to connected companies
299,069
320,000
Other creditors
81,845
76,320
Accruals and deferred income
1,634,033
1,781,265
2,580,529
3,076,767

Loans owed to connected companies are interest free and payable on demand.

15
Loans and overdrafts
2023
2022
£
£
Bank loans
4,622,243
4,734,040
Loans from related parties
2,889,108
2,733,777
7,511,351
7,467,817
Payable within one year
106,845
106,845
Payable after one year
7,404,506
7,360,972

 

The bank loan of £106,845 (2022: £106,845) due within one year and £4,515,398 (2022: £4,627,195 ) after one year is secured by The Trustees of the Wellington Resettled Estate by way of fixed charges, of which at the year end 26 years and 1 month was remaining. Interest at the rate of 3.50% is charged on the loan.

 

The loan from related parties of £2,889,108 (2022: £2,733,777) is due for repayment on 9 August 2028 and no interest is charged.

16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
15
4,515,398
4,627,195
Other borrowings
15
2,889,108
2,733,777
7,404,506
7,360,972
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
16
Creditors: amounts falling due after more than one year
(Continued)
- 21 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
4,088,018
4,199,817
Payable other than by instalments
-
2,733,777
4,088,018
6,933,594
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
-
405,016
(23,781)
-
Tax losses
-
(262,977)
339,466
-
Other timing differences
-
(4,673)
4,238
-
-
137,366
319,923
-
2023
Movements in the year:
£
Liability at 1 September 2022
137,366
Credit to profit or loss
(457,289)
Asset at 31 August 2023
(319,923)

The deferred tax asset set out above is expected to reverse within the foreseeable future and relates to the utilisation of tax losses against future expected profits of the same period.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
1
1
1
1

The Ordinary share entitles the holder to voting, dividend and distribution rights for winding up.

 

The Ordinary share capital above is issued but not fully paid and is included in debtors.

WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 22 -
19
Pensions

Aviva Pension Trust

 

The company joined the Aviva Pension Trust for independent schools on 1 September 2020. The pension charge for the year includes contributions payable to the Aviva Pension Trust of £215,550 (2022: £232,160) and at the year-end £27,972 (2022: £26,260) was accrued in respect of contributions to this scheme.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
227,422
240,808

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

At the year end the company had contributions payable included within creditors of £30,365 (2022: £27,996).

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
347,557
313,440
Between two and five years
1,262,458
1,191,328
In over five years
-
0
295,000
1,610,015
1,799,768
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
274,109
23
Ultimate controlling party
WELLESLEY PREP SCHOOL LIMITED
(FORMERLY KNOWN AS WELLINGTON ESTATES EDUCATION LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
23
Ultimate controlling party
(Continued)
- 23 -

The immediate and ultimate parent company and the smallest and largest group to prepare consolidated financial statements which include this entity is Wellington Estates Holdings Limited, a company incorporated in the United Kingdom. Group financial statements are available from its registered office: The Estate Office, Stratfield Saye, Hampshire, RG7 2BT.

 

The ultimate controlling party is the Wellington Resettled Estate whose registered office is: The Estate Office, Stratfield Saye, Hampshire, RG7 2BT.

 

24
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Net loan movement
Net loan movement
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
59,069
495,000
(4,597)
(6,102)
Rent charges
Costs recharged
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
(40,200)
(3,000)
(41,829)
(33,563)

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities under common control
3,489,407
3,061,145
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