Company registration number:
for the Year Ended
Perrott Hill School Ltd
Contents
Directors' Report |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Unaudited Financial Statements |
Perrott Hill School Ltd
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.
Directors of the company
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Principal activity
The principal activity of the company is the provision of a day and boarding school for children aged between 2 and 13 years old.
Business review
The Director is pleased to present these Accounts, which he believes demonstrate sustainable progress in the business at a time of rapidly increasing costs.
The Director notes the following in relation to the Accounts and to the current financial performance and activities of the School:
1. |
Annual revenues have held up well in a challenging market, once again showing year-on-year growth. |
2. |
Gross Profit has maintained a stable ratio of Turnover vs. Cost of Sales. |
3. |
The School demonstrates a positive and diverse commercial outlook with Other Operating Income up, this being achieved by maximising opportunities for revenue generation outside of ‘core’ School activities, such as external facilities hire and Summer Schools. |
4. |
An increase in Administrative Expenses has fuelled an Operating Loss and a Loss for the Financial Year in these Accounts. This has partly been the result of well-documented high price inflation in the period, in particular in food and energy costs. Recently these particular costs now appear to be returning to more normal levels as inflation drops. |
5. |
Two exceptional items of historic debt (relating to TPT pensions and the backdated removal of Statutory Relief on Business Rates) with a combined total P&L cost of £207,499 have been realised in these Accounts. Amicable agreements have been reached with creditors in both cases. |
6. |
A focus on International admissions is yielding significant benefit to the School as a whole. As well as building individual ties with families from across the globe, Perrott Hill is also forging long-term partnerships with overseas schools for individuals and small groups to spend time in ‘Immersion’ projects at School for up to three terms at a time. These activities will allow the School to continue to grow revenues and to expand its market. |
7. |
The ultimate beneficial owner of the Company continues to support the School by way of a long-term finance facility and flexible terms on interest payments. |
8. |
Shareholders have agreed that any profits will be retained and reinvested in the School for the foreseeable future, for the long-term benefit of the School. |
9. |
The School intends to address the position of negative equity by increasing revenues to improve profitability, and the Director is confident that this position can be substantially improved within the next reporting year. |
10. |
The ultimate beneficial owner continues to support the School operationally by making and facilitating business introductions to increase revenue and to save costs, and by working to a long-term investment horizon. |
Perrott Hill School Ltd
Directors' Report for the Year Ended 31 August 2023
11. |
The School continues to achieve exceptional educational outcomes, with a disproportionately high number of Academic, Music and Sports Scholarships at 13+ to a wide selection of senior schools. This is in the context of a very happy family atmosphere, which supports and nurtures children from all backgrounds and abilities, supporting a wide range of interests and aptitudes. |
12. |
The 2022 accounts have been restated to recognise creditors which came to light or were crystalised as a result of the loss of the School’s charitable status. |
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved by the Board on
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Perrott Hill School Ltd
(Registration number: 12455814)
Balance Sheet as at 31 August 2023
Note |
2023 |
(As restated) |
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Fixed assets |
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Tangible assets |
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Other financial assets |
- |
3,197 |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
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Deferred tax liabilities |
(236,995) |
(349,495) |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
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Profit and loss reserve |
( |
( |
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Total equity |
( |
( |
Perrott Hill School Ltd
(Registration number: 12455814)
Balance Sheet as at 31 August 2023
For the financial year ending 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account has been taken.
Approved and authorised by the
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Perrott Hill School Ltd
Statement of Changes in Equity
for the Year Ended 31 August 2023
Share capital |
Retained earnings |
Total |
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At 1 September 2022 |
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( |
( |
Prior period adjustment |
- |
( |
( |
At 1 September 2022 (As restated) |
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( |
( |
Loss for the year |
- |
( |
( |
At 31 August 2023 |
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( |
( |
Share capital |
Retained earnings |
Total |
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At 1 September 2021 |
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Prior period adjustment |
- |
( |
( |
At 1 September 2021 (As restated) |
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( |
( |
Loss for the year |
- |
( |
( |
At 31 August 2022 |
1,000 |
(281,615) |
(280,615) |
Perrott Hill School Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
North Perrott
Crewkerne
Somerset
TA18 7SL
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are presented in Sterling (£).
Going concern
The financial statements show net current liabilities at the year end of £1,211,015. The company is being supported by a loan from the parent entity which will enable the company to continue to repay debts as they fall due. There is no intention to remove this support for the foreseeable future. For these reasons the director has prepared the financial statements on a going concern basis.
Perrott Hill School Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2023
Prior period errors
The prior period has been amended to include liabilities for The Teachers Pension Trust and business rates not recognised in the financial statements for the year ended 31 August 2022 or previous years.
The overall effect is to increase the current liabilities by £61,894, increase liabilities due over 1 year by £112,986, and reduce the profit and loss reserve by the same amount. Of the £174,880, £37,291 relates to the year ended 31 August 2022 with the remaining £137,589 relating to previous years.
Turnover recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors within the balance sheet.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Perrott Hill School Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2023
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation of tangible assets
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
2% straight line |
Plant and machinery |
5-25% straight line |
Motor vehicles |
20% straight line |
Furniture, fittings and equipment |
15-20% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Perrott Hill School Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2023
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors and other creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Perrott Hill School Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2023
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.
Reserves
Profit and loss account includes all current and prior year profits and losses.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
The Company operates defined contribution schemes. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Perrott Hill School Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2023
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
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Cost or valuation |
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At 1 September 2022 |
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Additions |
- |
- |
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- |
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At 31 August 2023 |
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Depreciation |
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At 1 September 2022 |
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Charge for the year |
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At 31 August 2023 |
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Carrying amount |
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At 31 August 2023 |
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At 31 August 2022 |
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Included within the net book value of land and buildings above is £2,654,338 (2022 - £2,687,835) in respect of freehold land and buildings.
Perrott Hill School Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2023
Other financial assets (current and non-current) |
Financial assets at cost less impairment |
Total |
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Non-current financial assets |
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Cost or valuation |
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At 1 September 2022 |
3,197 |
3,197 |
Disposals |
(3,197) |
(3,197) |
At 31 August 2023 |
- |
- |
Carrying amount |
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At 31 August 2023 |
- |
- |
Stocks |
2023 |
2022 |
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Other stocks |
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Debtors |
Current |
2023 |
2022 |
Trade debtors |
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Prepayments |
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Other debtors |
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Perrott Hill School Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2023
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
(As restated) |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Note |
2023 |
(As restated) |
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Due after one year |
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Loans and borrowings |
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Other non-current financial liabilities |
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Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts and other borrowings which are secured of £27,181 (2022 - £22,659).
Loans and borrowings |
Current loans and borrowings
2023 |
2022 |
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Hire purchase contracts |
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Non-current loans and borrowings
2023 |
2022 |
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Hire purchase contracts |
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Other borrowings |
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Perrott Hill School Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2023
Teachers pension scheme (Ceased April 2023) |
The Teachers Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in academies and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.
The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis - these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
Valuation of the Teachers Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019.
The key elements of the valuation and subsequent consultation are:
- employer contribution rates set at 23.68% of pensionable pay (including a 0.08% employer administration charge)
- total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million giving a notional past service deficit of £22,000 million
- the scape rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI. Assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.
The next valuation result is due to be implemented from 1 April 2024.
The employer’s pension costs paid to TPS in the period amounted to £250,727 (2022 - £218,284). A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website. Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The company has accounted for its contributions to the scheme as if it were a defined contribution scheme. The company has set out above the information available on the scheme.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £