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Registered number: 03033574









OAK TREE SCHOOLS HOLDINGS LIMITED







CONSOLIDATED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
N O Hagger 
M A Hagger 
M O Hagger 




Company secretary
M O Hagger



Registered number
03033574



Registered office
6 Albion Hill

Loughton

Essex

IG10 4RA




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
OAK TREE SCHOOLS HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Directors' Responsibilities Statement
 
5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Balance Sheet
 
11 - 12
Company Balance Sheet
 
13 - 14
Consolidated Statement of Changes in Equity
 
15 - 16
Company Statement of Changes in Equity
 
17 - 18
Consolidated Statement of Cash Flows
 
19 - 20
Consolidated Analysis of Net Debt
 
21
Notes to the Financial Statements
 
22 - 43


 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023

Introduction
 
The directors present their strategic report for the group for the year ended 31 August 2023. The group continued to trade as that of providers of education services.

Business review
 
The Group continues to make use of its efficient system of resourcing the schools centrally. The Group Development Office has flourished with the Group Marketing Team acting as a strong department that oversees the marketing strategy for the Group, including oversight of the websites, apps, advertising and publicity. The marketing strategy, together with growing reputations in the local area, have helped the Group to attract more families and the school rolls have grown throughout the period.
Other central resources include accounting, operations, health and safety, maintenance, ICT technical support and infrastructure managing and secretarial. 
The Group Management Team comprises the Group Managing Principal (also main Director), Group Bursar, Group Education Principal, Group Operations Manager and Group ICT Manager. The Team meets formally at the start of each week to discuss various issues and generally strategise.
Oak-Tree Group
Happily, all Covid-19 restrictions were relaxed and there was no need for the social distancing, bubbling or remote learning to continue. The Group has retained various Covid-legacy systems, such as first round interviewing by Zoom or meetings via Teams, to improve efficiency.
Independent Schools Inspectorate Inspections
Braeside School was inspected in March 2023 as a full Focused Compliance and Educational Quality inspection.  This was a very successful inspections as the school’s education was found to be ‘excellent’ and it was also found to be fully compliant.
Facilities
During the academic year many of the internal facilities were refurbished, with rooms redecorated and recarpeted on a rolling programme.
At Coopersale Hall, the directors started the building programme to change the use of the previously purchased Bakers Cottage into a senior department. The school successfully gained planning consent for the work and teams of specialists worked to complete Phase 1 (conversion of the existing premises) by 31 August 2023. 
In preparation for the opening of the new building, the school marketed new Year 7 places and offered entrance exams with interviews in February 2024. Places were limited in case the building was not ready on time, and 15 children were accepted to start in September 2024.
Technology
The Group continued to invest heavily in a range of virtual platforms for pupils of all ages in order to facilitate the virtual home learning programmes now used for homework and assessment/exam revision.
Activities
An enhanced programme of holiday activities and weekend clubs was provided in the main breaks, which were very popular with parents and generated additional income.
 
Page 1

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Coffee Mornings
The programme of coffee mornings with parents and Mr Hagger at each school continued during the period. The discussions were seen as being very useful for both sides and subsequent actions helped to develop the schools.
Staffing
Beyond the normal routine staff movements, the main change was a new Head at Oaklands School. The previous Head retired in July 2022 and the directors appointed Braeside’s long standing Deputy Head to take over at Oaklands from September 2022. 
Braeside’s Assistant Head became Deputy Head from September 2022.

Principal risks and uncertainties
 
Competition
The main risk to the business is from competitor schools. However, most of the neighbouring preparatory schools are smaller than the schools within the Group and do not have the Group’s level of resources.
There are many large senior schools in the area, all with prep departments and some with pre-prep departments. Although some of these posed a risk when their pre-prep departments were first created, relatively few families decide to leave early.

Financial key performance indicators
 
Annual turnover rose in 2022/2023. Staffing costs included an average 3% pay rise for staff that was applied from September 2022.
Other running costs and overheads have remained stable compared with the previous year.


This report was approved by the board on 2 August 2024 and signed on its behalf.




M O Hagger
Director

Page 2

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023

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

Results and dividends

The loss for the year, after taxation and minority interests, amounted to £143,688 (2022 - profit £1,791,896).

The directors have declared a dividend of £366,000 (2022: £797,000). 

Directors

The directors who served during the year were:

N O Hagger 
M A Hagger 
M O Hagger 

Future developments

The directors have previously announced that Coopersale Hall School will extend its provision for seniors from September 2023 and has been working towards completing the redevelopment of a newly-purchased neighbouring residential property in preparation for this project. This is phase 1 of the development, with phase 2 being the construction of a new classroom block in the grounds of the cottage planned for Summer 2024.

Financial instruments

The Group’s operations expose it to a variety of financial risks that include credit risks, liquidity risk and interest rate risk.
The Group has in place a risk management programme that seeks to limit the adverse effect on the financial performance of the Group by monitoring levels of debt finance and the related finance costs. The Group does not use derivative financial instruments to manage interest rate costs, and as such no hedge accounting is applied.
Given the size of the Group, the directors have not delegated the responsibility of monitoring financial risk management to a subcommittee of the board. The Group’s finance department implements the policies set by the board of directors. The department have guidelines, agreed by the directors, to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures.
Liquidity risk
The Group manages its cash and borrowing requirements in order to minimise the interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
Interest bearing liabilities include only bank borrowing facilities on which interest is charged a base rate plus a fixed rate.

Page 3

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Engagement with employees

The Group places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting their current and future interest.

Disabled employees

Application for employment by disabled person are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the group continues and that appropriate training is arranged.
It is the policy of the Group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the companies since the year end.

Auditors

The auditorsHaslerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 2 August 2024 and signed on its behalf.
 





M O Hagger
Director

Page 4

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Page 5

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAK TREE SCHOOLS HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Oak Tree Schools Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 August 2023 and of the Group's loss 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 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.


Page 6

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAK TREE SCHOOLS HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 7

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAK TREE SCHOOLS HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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 Group's and the parent 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 Group or the parent 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 an Auditors' 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 Group 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:

Based on our understanding of the legal and regulatory frameworks that are applicable to the entity we determined that the most significant are those that had a direct effect on the determination of material amounts and disclosures in the financial statements.
We obtained an understanding of how the entity  are complying with those legal and regulatory frameworks by making enquiries of the management. We corroborated our enquiries through our review of documentation generated and assessing the extent of compliance with the relevant laws and regulations. 
We discussed among the audit engagement team regarding the opportunities, including management override of controls, that may exist within the entity for fraud and where fraud might occur in the financial statements. 
As a result of performing the above, we identified the greatest potential for material misstatements due to fraud are in the following areas, and our specific procedures performed to address these are described below:
The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to potential weaknesses in the procurement system, control over banking and the existence of inappropriate journal entries to manipulate performance were also identified. 
Procedures performed to address these were as follows: 
• Identifying and assessing the design effectiveness of controls management has in place to prevent and   detect fraud. 
• Understanding how the management considered and addressed the potential for override of controls    or other inappropriate influence over the financial reporting process.
 
Page 8

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAK TREE SCHOOLS HOLDINGS LIMITED (CONTINUED)


• Undertaking testing designed to test the controls in place within the procurement system including access  and controls in relation to banking.
• Vouching of specific purchases to supporting documentation to ensure they relate to genuine business    purchases. 
• Identifying and testing journal entries, in particular any unusual journal entries posted around the year-   end and journal entries with no descriptions.


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 Auditors' 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 2006Our 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 Auditors' 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.




Laura Ambrose (Senior Statutory Auditor)
for and on behalf of
Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

2 August 2024
Page 9

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023

As restated
2023
2022
Note
£
£

  

Turnover
  
11,788,870
10,714,324

Cost of sales
  
(7,091,070)
(6,607,990)

Gross profit
  
4,697,800
4,106,334

Distribution costs
  
(2,233,490)
(1,782,384)

Administrative expenses
  
(2,447,748)
239,297

Operating profit
 4 
16,562
2,563,247

Interest receivable and similar income
 7 
6,233
337

Interest payable and similar expenses
 8 
(29,495)
(55,740)

(Loss)/profit before taxation
  
(6,700)
2,507,844

Tax on (loss)/profit
 9 
(102,565)
(537,735)

(Loss)/profit for the financial year
  
(109,265)
1,970,109

  

Unrealised surplus on revaluation of freehold properties
  
2,151,718
-

Deferred taxation arising from revaluation of freehold properties
  
(590,775)
-

Other comprehensive income for the year
  
1,560,943
-

Total comprehensive income for the year
  
1,451,678
1,970,109

(Loss)/profit for the year attributable to:
  

Non-controlling interests
  
34,423
178,213

Owners of the parent Company
  
(143,688)
1,791,896

  
(109,265)
1,970,109

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
34,423
178,213

Owners of the parent Company
  
1,417,255
1,791,896

  
1,451,678
1,970,109

The notes on pages 22 to 43 form part of these financial statements.

Page 10

 
OAK TREE SCHOOLS HOLDINGS LIMITED
REGISTERED NUMBER: 03033574

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
(35,375)
(53,063)

Tangible assets
 13 
15,725,580
13,100,983

  
15,690,205
13,047,920

Current assets
  

Debtors: amounts falling due within one year
 15 
1,239,412
566,172

Cash at bank and in hand
 16 
105,975
113,672

  
1,345,387
679,844

Creditors: amounts falling due within one year
 17 
(5,297,502)
(4,941,427)

Net current liabilities
  
 
 
(3,952,115)
 
 
(4,261,583)

Total assets less current liabilities
  
11,738,090
8,786,337

Creditors: amounts falling due after more than one year
 18 
(1,237,371)
-

Provisions for liabilities
  

Deferred taxation
 19 
(702,177)
(73,473)

  
 
 
(702,177)
 
 
(73,473)

Net assets
  
9,798,542
8,712,864

Page 11

 
OAK TREE SCHOOLS HOLDINGS LIMITED
REGISTERED NUMBER: 03033574
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 20 
10,200
10,200

Share premium account
 21 
6,708,323
6,708,323

Revaluation reserve
 21 
1,560,943
-

Capital redemption reserve
 21 
500,000
500,000

Profit and loss account
 21 
748,437
1,195,898

Equity attributable to owners of the parent Company
  
9,527,903
8,414,421

Non-controlling interests
  
270,639
298,443

  
9,798,542
8,712,864


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 August 2024.




M O Hagger
Director

The notes on pages 22 to 43 form part of these financial statements.

Page 12

 
OAK TREE SCHOOLS HOLDINGS LIMITED
REGISTERED NUMBER: 03033574

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
15,585,227
13,021,278

Investments
 14 
434,600
434,600

  
16,019,827
13,455,878

Current assets
  

Debtors: amounts falling due within one year
 15 
716,377
111,355

Cash at bank and in hand
 16 
105,511
113,412

  
821,888
224,767

Creditors: amounts falling due within one year
 17 
(6,039,715)
(6,131,027)

Net current liabilities
  
 
 
(5,217,827)
 
 
(5,906,260)

Total assets less current liabilities
  
10,802,000
7,549,618

  

Creditors: amounts falling due after more than one year
 18 
(1,237,371)
-

Provisions for liabilities
  

Deferred taxation
 19 
(672,518)
(62,620)

  
 
 
(672,518)
 
 
(62,620)

Net assets
  
8,892,111
7,486,998

Page 13

 
OAK TREE SCHOOLS HOLDINGS LIMITED
REGISTERED NUMBER: 03033574
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2023

2023
2022
Note
£
£


Capital and reserves
  

Called up share capital 
 20 
10,200
10,200

Share premium account
 21 
6,708,323
6,708,323

Revaluation reserve
 21 
1,560,943
-

Capital redemption reserve
 21 
500,000
500,000

Profit and loss account
 21 
112,645
268,475

  
8,892,111
7,486,998


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 August 2024.


M O Hagger
Director

The notes on pages 22 to 43 form part of these financial statements.

Page 14

 

 
OAK TREE SCHOOLS HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£
£
£


At 1 September 2022
10,200
6,708,323
500,000
-
1,195,898
8,414,421
298,443
8,712,864



Comprehensive income for the year


Loss for the year
-
-
-
-
(143,688)
(143,688)
34,423
(109,265)


Surplus on revaluation of freehold property
-
-
-
-
2,151,718
2,151,718
-
2,151,718


Deferred tax on revaluation
-
-
-
-
(590,775)
(590,775)
-
(590,775)

Total comprehensive income for the year
-
-
-
-
1,417,255
1,417,255
34,423
1,451,678



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(366,000)
(366,000)
-
(366,000)


Dividends: Non-controlling interests
-
-
-
1,560,943
(1,560,943)
-
-
-


Other movement
-
-
-
-
62,227
62,227
(62,227)
-



At 31 August 2023
10,200
6,708,323
500,000
1,560,943
748,437
9,527,903
270,639
9,798,542



The notes on pages 22 to 43 form part of these financial statements.

Page 15

 

 
OAK TREE SCHOOLS HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2022



Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£
£


At 1 September 2021
10,200
6,708,323
500,000
(60,749)
7,157,774
381,981
7,539,755



Comprehensive income for the year


Profit for the year
-
-
-
1,791,896
1,791,896
178,213
1,970,109

Total comprehensive income for the year
-
-
-
1,791,896
1,791,896
178,213
1,970,109



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
(797,000)
(797,000)
-
(797,000)


Other movement
-
-
-
261,751
261,751
(261,751)
-



At 31 August 2022
10,200
6,708,323
500,000
1,195,898
8,414,421
298,443
8,712,864



The notes on pages 22 to 43 form part of these financial statements.

Page 16

 

 
OAK TREE SCHOOLS HOLDINGS LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 September 2022
10,200
6,708,323
500,000
-
268,475
7,486,998



Comprehensive income for the year


Loss for the year
-
-
-
-
(91,830)
(91,830)


Surplus on revaluation of freehold property
-
-
-
-
2,151,718
2,151,718


Deferred tax on revaluation
-
-
-
-
(590,775)
(590,775)

Total comprehensive income for the year
-
-
-
-
1,469,113
1,469,113



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(64,000)
(64,000)


Transfer to/from profit and loss account
-
-
-
1,560,943
(1,560,943)
-



At 31 August 2023
10,200
6,708,323
500,000
1,560,943
112,645
8,892,111



The notes on pages 22 to 43 form part of these financial statements.

Page 17

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2022


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 September 2021
10,200
6,708,323
500,000
(608,891)
6,609,632


Comprehensive income for the year

Profit for the year
-
-
-
1,413,366
1,413,366


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(536,000)
(536,000)


Total transactions with owners
-
-
-
(536,000)
(536,000)


At 31 August 2022
10,200
6,708,323
500,000
268,475
7,486,998


The notes on pages 22 to 43 form part of these financial statements.

Page 18

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(109,265)
1,970,109

Adjustments for:

Amortisation of intangible assets
(17,688)
(17,688)

Depreciation of tangible assets
193,614
223,430

Loss on disposal of tangible assets
16
(2,178,725)

Interest paid
29,495
55,739

Interest received
(6,233)
(337)

Taxation charge
102,565
537,734

(Increase)/decrease in debtors
(673,241)
232,176

Increase/(decrease) in creditors
1,202,705
(406,593)

Corporation tax received/(paid)
67,035
(332,383)

Net cash generated from operating activities

789,003
83,462


Cash flows from investing activities

Purchase of tangible fixed assets
(994,091)
(130,554)

Proceeds of sale of tangible fixed assets
(16)
3,452,555

Interest received
6,233
337

Net cash from investing activities

(987,874)
3,322,338
Page 19

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023


2023
2022

£
£



Cash flows from financing activities

New secured loans
383,495
-

Repayment of loans
-
(2,420,468)

Repayment of other loans
-
(116,667)

Dividends paid
(366,000)
(797,000)

Interest paid
(29,495)
(55,739)

Net cash used in financing activities
(12,000)
(3,389,874)

Net (decrease)/increase in cash and cash equivalents
(210,871)
15,926

Cash and cash equivalents at beginning of year
(785,503)
(801,429)

Cash and cash equivalents at the end of year
(996,374)
(785,503)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
105,975
113,672

Bank overdrafts
(1,102,349)
(899,175)

(996,374)
(785,503)


The notes on pages 22 to 43 form part of these financial statements.

Page 20

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2023




At 1 September 2022
Cash flows
At 31 August 2023
£

£

£

Cash at bank and in hand

113,672

(7,697)

105,975

Bank overdrafts

(899,175)

(203,173)

(1,102,348)

Debt due after 1 year

-

(1,237,371)

(1,237,371)

Debt due within 1 year

(998,076)

815,174

(182,902)


(1,783,579)
(633,067)
(2,416,646)

The notes on pages 22 to 43 form part of these financial statements.

Page 21

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

1.


General information

Oak Tree Schools Holdings Limited is a private company, limited by shares and incorporated in England and Wales, United Kingdom, with a registration number 03033574. The address of the registered office is 6 Albion Hill, Loughton, Essex, IG10 4RA. The group's principal activity is that of the provision of education services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 September 2014.

 
2.3

Revenue

Revenue is recognised by the Group in respect of services supplied. This is principally made up of income from tuition fees. Revenue is recognised for the period the tuition fees relate to and to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discount, rebates, value added tax and other sales taxes. 

Page 22

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.4

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 23

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 24

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
not depreciated
Freehold improvements
-
4%
straight-line
Leasehold improvements
-
4%
straight-line
Motor vehicles
-
25%
straight-line
Fixtures and fittings
-
15%
straight-line
Office equipment
-
33%
straight-line
Computer equipment
-
33%
straight-line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Depreciation on freehold property has not been provided. In the view of the directors, any such charge, taking in to account the residual value of the properties, would not be material. 

 
2.11

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 25

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 26

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.16

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 27

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the director is required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
The director does not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements.


4.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
117,462
77,867

Page 28

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

5.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
6,986,680
6,509,116
-
-

Social security costs
641,390
607,430
-
-

Cost of defined contribution scheme
363,766
347,210
-
-

7,991,836
7,463,756
-
-


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Directors
3
3
3
3



Teachers and administration
266
261
39
26

269
264
42
29

The company whose average number of employees, including the directors are 29 (2022: 29) incurred a total wage cost of £1,176,954 (2022: £1,094,940) which has been apportioned to the subsidiary companies to which the cost relates. 


6.


Directors' remuneration

2023
2022
£
£



Directors' emoluments
100,000
100,000

100,000
100,000


7.


Interest receivable

2023
2022
£
£


Other interest receivable
6,233
337

6,233
337

Page 29

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

8.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
29,495
36,618

Other loan interest payable
-
19,000

Other interest payable
-
122

29,495
55,740


9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
64,636
496,095

Adjustments in respect of previous periods
-
46,633


Total current tax
64,636
542,728

Deferred tax


Origination and reversal of timing differences
37,929
(4,993)

Total deferred tax
37,929
(4,993)


Taxation on profit on ordinary activities
102,565
537,735
Page 30

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 21.5% (2022 - 19%). The differences are explained below:

As restated
2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(6,700)
2,507,844


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 21.5% (2022 - 19%)
(1,441)
476,490

Effects of:


Utilisation of tax losses
71,913
-

Other differences leading to an increase (decrease) in the tax charge
32,093
61,245

Total tax charge for the year
102,565
537,735

The corporation tax rate increased from 19% to 25% with effect from 1 April 2023. This results in the increase in tax rate shown above. Next year the Company’s rate will be the full 25%.
The deferred taxation balances have been measured using 25%, which is the enacted rate applicable in the reporting periods when the timing differences reverse.


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


10.


Dividends

As restated
2023
2022
£
£


Dividends
366,000
797,000

366,000
797,000

Page 31

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

11.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year was £91,829 (2022 - profit £1,413,366).


12.


Intangible assets

Group





Goodwill
Negative goodwill
Total

£
£
£



Cost


At 1 September 2022
642,053
(176,879)
465,174



At 31 August 2023

642,053
(176,879)
465,174



Amortisation


At 1 September 2022
642,053
(123,816)
518,237


Charge for the year on owned assets
-
(17,688)
(17,688)



At 31 August 2023

642,053
(141,504)
500,549



Net book value



At 31 August 2023
-
(35,375)
(35,375)



At 31 August 2022
-
(53,063)
(53,063)



Page 32

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
 
           12.Intangible assets (continued)

Company




Goodwill

£



Cost


At 1 September 2022
642,053



At 31 August 2023

642,053



Amortisation


At 1 September 2022
642,053



At 31 August 2023

642,053



Net book value



At 31 August 2023
-



At 31 August 2022
-

Page 33

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

13.


Tangible fixed assets

Group






Freehold property
Freehold Property improvements
Leasehold Property improvements
Motor vehicles

£
£
£
£



Cost or valuation


At 1 September 2022
10,872,748
4,370,569
-
133,527


Additions
-
853,501
-
-


Transfers between classes
-
(860,482)
860,482
-


Revaluations
1,824,124
-
-
-



At 31 August 2023

12,696,872
4,363,588
860,482
133,527



Depreciation


At 1 September 2022
-
2,292,343
-
120,869


Charge for the year on owned assets
-
116,410
34,419
4,855


Transfers between classes
-
(262,703)
262,703
-



At 31 August 2023

-
2,146,050
297,122
125,724



Net book value



At 31 August 2023
12,696,872
2,217,538
563,360
7,803



At 31 August 2022
10,872,748
2,078,227
-
12,658
Page 34

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

           13.Tangible fixed assets (continued)


Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 September 2022
588,271
239,732
279,200
16,484,047


Additions
85,355
9,203
46,032
994,091


Transfers between classes
-
-
-
-


Revaluations
-
-
-
1,824,124



At 31 August 2023

673,626
248,935
325,232
19,302,262



Depreciation


At 1 September 2022
571,578
223,944
174,332
3,383,066


Charge for the year on owned assets
4,826
13,071
20,034
193,615


Transfers between classes
-
-
-
-



At 31 August 2023

576,404
237,015
194,366
3,576,681



Net book value



At 31 August 2023
97,222
11,920
130,866
15,725,581



At 31 August 2022
16,693
15,788
104,868
13,100,982

Page 35

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

Company






Freehold property
Freehold Property improvements
Leasehold Property improvements
Motor vehicles

£
£
£
£

Cost or valuation


At 1 September 2022
10,872,748
3,758,909
-
82,514


Additions
-
853,501
-
-


Transfers between classes
-
(860,482)
860,482
-


Revaluations
1,824,124
-
-
-



At 31 August 2023

12,696,872
3,751,928
860,482
82,514



Depreciation


At 1 September 2022
-
1,680,682
-
73,980


Charge for the year on owned assets
-
116,410
34,419
3,824


Transfers between classes
-
(262,703)
262,703
-



At 31 August 2023

-
1,534,389
297,122
77,804



Net book value



At 31 August 2023
12,696,872
2,217,539
563,360
4,710



At 31 August 2022
10,872,748
2,078,227
-
8,534
Page 36

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

           13.Tangible fixed assets (continued)


Fixtures and fittings
Computer equipment
Total

£
£
£

Cost or valuation


At 1 September 2022
-
78,169
14,792,340


Additions
15,000
44,496
912,997


Transfers between classes
-
-
-


Revaluations
-
-
1,824,124



At 31 August 2023

15,000
122,665
17,529,461



Depreciation


At 1 September 2022
-
16,401
1,771,063


Charge for the year on owned assets
-
18,519
173,172


Transfers between classes
-
-
-



At 31 August 2023

-
34,920
1,944,235



Net book value



At 31 August 2023
15,000
87,745
15,585,226



At 31 August 2022
-
61,768
13,021,277





The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
12,696,871
10,872,748

Freehold improvements
2,217,540
2,078,227

Leasehold improvements
563,359
-

15,477,770
12,950,975


Page 37

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2022
434,600



At 31 August 2023
434,600





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Oaklands School Limited
Provision of education services
Ordinary
80%
Coopersale Hall School Limited
Provision of education services
Ordinary
80%
Normanhurst School Limited
Provision of education services
Ordinary
100%
Braeside School Limited
Provision of education services
Ordinary
100%

The aggregate of the share capital and reserves as at 31 August 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Oaklands School Limited
775,172
26,881

Coopersale Hall School Limited
1,139,241
140,269

Normanhurst School Limited
471,043
95,283

Braeside School Limited
(408,947)
2,445

Page 38

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

15.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
252,587
195,547
-
-

Other debtors
886,788
281,675
716,377
111,355

Prepayments and accrued income
100,037
88,950
-
-

1,239,412
566,172
716,377
111,355


Other debtors due within one year includes loans advanced from the group's Employee Benefit Trust (EBT) of £170,000 (2022: £170,000) that was established in the year ended 31 August 2010.


16.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
105,975
113,672
105,511
113,412

Less: bank overdrafts
(1,102,348)
(899,175)
-
-

(996,373)
(785,503)
105,511
113,412



17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
1,102,348
899,175
-
-

Bank loans
143,657
997,534
143,657
996,410

Payments received on account
1,537,286
999,593
-
-

Trade creditors
1,179,059
525,686
73,050
20,568

Amounts owed to group undertakings
-
-
5,077,350
4,456,649

Corporation tax
570,623
766,545
509,343
396,874

Other taxation and social security
136,694
142,710
-
7,848

Other creditors
225,186
170,842
213,467
157,339

Accruals and deferred income
402,649
439,342
22,848
95,339

5,297,502
4,941,427
6,039,715
6,131,027


Page 39

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

18.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
1,237,371
-
1,237,371
-

1,237,371
-
1,237,371
-


The borrowings of the group that amount to £2,483,377 (2022: £1,896,709) are secured by cross guarantees and debentures by and between Oaklands School Limited, Coopersale Hall School Limited, Braeside School Limited, Normanhurst School Limited and Oak Tree Schools Holdings Limited.




19.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(73,473)
(78,466)


Charged to profit or loss
(628,704)
4,993



At end of year
(702,177)
(73,473)

Page 40

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
 
19.Deferred taxation (continued)

Company


2023
2022


£

£






At beginning of year
(62,620)
(68,131)


Charged to profit or loss
(609,898)
5,511



At end of year
(672,518)
(62,620)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(111,402)
(73,473)
(81,743)
(62,620)

Fair value movements
(590,775)
-
(590,775)
-

(702,177)
(73,473)
(672,518)
(62,620)


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,200 (2022 - 10,200) Ordinary shares of £1.00 each
10,200
10,200


Page 41

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

21.


Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares net of issue costs.

Revaluation reserve

The revaluation reserve represents uplifts in the property values net of any deferred tax movements and other adjustments.

Capital redemption reserve

The capital redemption reserve account represents non distributable reserves arising on the repurchase of the company's own shares.

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.


22.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £363,766 (2022: £347,210).
Contributions totalling £Nil (2022: £Nil) were payable to the fund at the balance sheet date.


23.


Commitments under operating leases

At 31 August 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
99,831
121,741
13,263
13,263

Later than 1 year and not later than 5 years
387,594
260,533
49,952
25,421

Later than 5 years
19,333
77,333
-
-

506,758
459,607
63,215
38,684


24.


Transactions with directors

During the year the director lent monies to the company. At the year end, the amount due from/(to) the directors was £499,250 (2022: £22,366). Interest on the overdrawn loan account was charged and amounted to £6,569 (2022: £337).

Page 42

 
OAK TREE SCHOOLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

25.


Related party transactions

Key management personnel compensation in the year totalled £1,339,215 (2022: £1,267,998).
Information about related party transactions and outstanding balances is outlined below:


2023
2022
£
£

Key management personnel of the company or its subsdiaries
505,820
22,702
505,820
22,702

Page 43