Company registration number 07481199 (England and Wales)
ABBEY SCHOOL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
ABBEY SCHOOL LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
ABBEY SCHOOL LIMITED
COMPANY INFORMATION
Director
Mr B Borbely
Company number
07481199
Registered office
10-12 Abbey Square
Abbey Square
Chester
CH1 2HU
England
Auditor
Sedulo Audit Limited
605 Albert House
256-260 Old Street
London
United Kingdom
EC1V 9DD
ABBEY SCHOOL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -
The director presents the strategic report for the year ended 31 August 2023.
Principal activities
The principal activity of the company continued to be that of the provision of education and accommodation to children with special needs.
Review of the business
Assum Limited, the company's ultimate parent company, manages its operations on a divisional basis. For this reason, the company's directors believe key performance indicators for the company are not necessary for an understanding of the development, performance or position of the business. The performance of the company is discussed in the ultimate parent company's financial statements, which do not form part of this report.
Principal risks and uncertainties
The following are considered the principal risks of the company:
Revenues from publicly funded bodies
The majority of the company’s revenues derive from publicly funded bodies such as Local Authorities, Clinical Commissioning Groups (CCGs) and other NHS bodies. Changes in education, health and social care budgets potentially affect the ability of the group's purchasers to fund placements in its services.
Credit risk
Credit risk is not considered to be significant given that the majority of revenue is derived from publicly funded bodies.
Liquidity risk
The group prepares an annual cash flow forecast which is tracked throughout the year.
Directors' statement of compliance with duty to promote the success of the company.
The directors have acted in the way they consider, in good faith, promotes the success of the company and the group for the benefit of its members as a whole, and in doing so have given regard to a range of matters when making decisions for the long term.
Key performance indicators
The key performance indicators which the Directors use to monitor and manage performance of the Company are revenue and profit before tax which are disclosed and discussed in the business review above.
Mr B Borbely
Director
30 August 2024
ABBEY SCHOOL LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
The director presents his annual report and financial statements for the year ended 31 August 2023.
Principal activities
The principal activity of the company continued to be that of the provision of education and accommodation to children with special needs.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr B Borbely
Auditor
The auditor, Sedulo Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement 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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
ABBEY SCHOOL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -
On behalf of the board
Mr B Borbely
Director
30 August 2024
ABBEY SCHOOL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ABBEY SCHOOL LIMITED
- 4 -
Opinion
We have audited the financial statements of Abbey School Limited (the 'company') for the year ended 31 August 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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:
give a true and fair view of the state of the company's affairs as at 31 August 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
ABBEY SCHOOL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ABBEY SCHOOL LIMITED (CONTINUED)
- 5 -
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 director's 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was capable of detecting irregularities, including fraud
The primary responsibility for the prevention and detection of fraud rests with directors and management, and we cannot be expected to detect non-compliance with all laws and regulations.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls.
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.
ABBEY SCHOOL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ABBEY SCHOOL LIMITED (CONTINUED)
- 6 -
In the previous accounting period the director of the company took advantage of audit exemption under S.477 of the Companies Act 2006. Therefore, the prior period financial statements were not subject to audit.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Diccon Thornely
Senior Statutory Auditor
For and on behalf of Sedulo Audit Limited
30 August 2024
Chartered Accountants
Statutory Auditor
605 Albert House
256-260 Old Street
London
United Kingdom
EC1V 9DD
ABBEY SCHOOL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -
Year
Period
ended
ended
31 August
31 August
2023
2022
as restated
Notes
£
£
Turnover
3
6,880,622
3,037,262
Cost of sales
(5,386,409)
(2,957,923)
Gross profit
1,494,213
73,957
Administrative expenses
(1,390,842)
(2,269,611)
Operating profit/(loss)
4
103,371
(2,195,654)
Interest receivable and similar income
7
11,534
Interest payable and similar expenses
8
(4,473)
(321,616)
Profit/(loss) before taxation
110,432
(2,517,270)
Tax on profit/(loss)
9
1,920,714
Profit/(loss) for the financial year
2,031,146
(2,517,270)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ABBEY SCHOOL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
Year
Period
ended
ended
2023
2022
as restated
£
£
Profit/(loss) for the year
2,031,146
(2,517,270)
Other comprehensive income
-
-
Total comprehensive income for the year
2,031,146
(2,517,270)
The notes on pages 11 to 21 form part of these financial statements.
ABBEY SCHOOL LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
471,860
530,842
Tangible assets
10
9,045,725
9,045,829
9,517,585
9,576,671
Current assets
Debtors
12
3,154,265
791,976
Cash at bank and in hand
104,661
300,885
3,258,926
1,092,861
Creditors: amounts falling due within one year
13
(5,245,308)
(5,169,475)
Net current liabilities
(1,986,382)
(4,076,614)
Net assets
7,531,203
5,500,057
Capital and reserves
Called up share capital
16
13,000,100
13,000,100
Profit and loss reserves
(5,468,897)
(7,500,043)
Total equity
7,531,203
5,500,057
The notes on pages 11 to 21 form part of these financial statements.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
In accordance with section 444 of the Companies Act 2006, all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).
The financial statements were approved and signed by the director and authorised for issue on 30 August 2024
Mr B Borbely
Director
Company registration number 07481199 (England and Wales)
ABBEY SCHOOL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 August 2022:
Balance at 1 August 2021
100
(3,157,274)
(3,157,174)
Effect of change in accounting policy
-
(1,825,499)
(1,825,499)
As restated
100
(4,982,773)
(4,982,673)
Period ended 31 August 2022:
Loss and total comprehensive income
-
(2,517,270)
(2,517,270)
Conversion of loan to shares
16
13,000,000
-
13,000,000
Balance at 31 August 2022
13,000,100
(7,500,043)
5,500,057
Year ended 31 August 2023:
Profit and total comprehensive income
-
2,031,146
2,031,146
Balance at 31 August 2023
13,000,100
(5,468,897)
7,531,203
ABBEY SCHOOL LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
1
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
2
Accounting policies
Company information
Abbey School Limited is a private company limited by shares incorporated in England and Wales. The registered office is 10-12 Abbey Square, Abbey Square, Chester, England, CH1 2HU.
2.1
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.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 ‘Related Party Disclosures’: non-disclosure of related party transactions with wholly owned subsidiaries within the group.
The financial statements of the company are consolidated in the financial statements of Assum Limited. These consolidated financial statements are available from its registered office.
2.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation based on reviewing cash flow forecasts for at least a year from the date of signing that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2
Accounting policies
(Continued)
- 12 -
2.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of busines. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
2.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
2.5
Intangible fixed assets other than goodwill
These represent capitalised costs directly attributable to the development of a unique and innovative special needs school curricula programme.
Such costs will only be capitalised up to the date of the school opening and will be amortised from that date as follows:
School Curriculum Development
Over a useful estimated life of 10 years
2.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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
4% on cost
Fixtures and fittings
15% on reducing balance
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.
2.7
Financial instruments
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.
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
2
Accounting policies
(Continued)
- 13 -
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.
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.
2.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
2
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.10
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2.11
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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Educational services
6,880,622
3,037,262
2023
2022
£
£
Other revenue
Interest income
11,534
-
Grants received
-
(5,382)
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 15 -
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging:
£
£
Research and development costs
-
607,397
Government grants
-
5,382
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
Depreciation of owned tangible fixed assets
489,052
487,448
Amortisation of intangible assets
58,982
58,982
Operating lease charges
161,108
71,243
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was: 155
2023
2022
Number
Number
Admin staff
22
21
Care/Support workers
117
54
Teachers
15
11
Directors
1
1
Total
155
87
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,452,746
2,350,428
Social security costs
415,096
327,496
Pension costs
217,830
157,936
5,085,672
2,835,860
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 16 -
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
77,500
197,060
Company pension contributions to defined contribution schemes
1,321
1,431
78,821
198,491
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
11,534
8
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
321,616
Other interest
4,473
4,473
321,616
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(1,898,612)
Adjustment in respect of prior periods
(22,102)
Total deferred tax
(1,920,714)
Tax on losses on ordinary activities for the year is at a blended rate of 21.5% as the Corporation Tax rate increased from 19% to 25% on 1 April 2023
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
9
Taxation
(Continued)
- 17 -
The actual (credit)/charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit/(loss) before taxation
110,432
(2,517,270)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 21.50% (2022: 19.00%)
23,743
(478,281)
Tax effect of expenses that are not deductible in determining taxable profit
11,079
10,338
Adjustments in respect of prior years
(22,102)
Effect of change in corporation tax rate
(265,840)
Fixed asset differences
10,328
50,698
Current year losses not recognised
417,245
Brought forward losses utilised
(45,009)
Brought forward losses recognised
(1,632,913)
Taxation credit for the year
(1,920,714)
-
Factors that may affect future tax charges
The Company has recognised a deferred tax asset in respect of carried forward trade losses of £7,594,944. Management have confirmed that they forecast sufficient profits in the foreseeable future to be offset against these losses.
Of these losses £7,804,286 were brought forward from prior years on which no deferred tax asset was previously recognised.
During the year the company utilised £209,342 of these losses against current year taxable profits.
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 18 -
10
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 September 2022
9,075,694
712,182
9,787,876
Additions
372,756
116,192
488,948
At 31 August 2023
9,448,450
828,374
10,276,824
Depreciation and impairment
At 1 September 2022
586,556
155,491
742,047
Depreciation charged in the year
366,344
122,708
489,052
At 31 August 2023
952,900
278,199
1,231,099
Carrying amount
At 31 August 2023
8,495,550
550,175
9,045,725
At 31 August 2022
8,489,138
556,691
9,045,829
11
Intangible fixed assets
School Curriculum Development
£
Cost
At 1 September 2022 and 31 August 2023
589,824
Amortisation and impairment
At 1 September 2022
58,982
Amortisation charged for the year
58,982
At 31 August 2023
117,964
Carrying amount
At 31 August 2023
471,860
At 31 August 2022
530,842
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 19 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,100,096
702,429
Other debtors
5,001
5,000
Prepayments and accrued income
128,454
84,547
1,233,551
791,976
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 14)
1,920,714
Total debtors
3,154,265
791,976
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
131,614
113,920
Amounts owed to group undertakings
2,628,073
3,434,118
Taxation and social security
242,015
375,944
Other creditors
31,776
43,644
Accruals and deferred income
2,211,830
1,201,849
5,245,308
5,169,475
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
15,555
-
Provisions and pensions
6,423
-
Other timing difference
1,898,736
-
1,920,714
-
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
14
Deferred taxation
(Continued)
- 20 -
2023
Movements in the year:
£
Liability at 1 September 2022
-
Credit to profit or loss
(1,920,714)
Asset at 31 August 2023
(1,920,714)
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
217,830
157,936
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.
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
13,000,100
13,000,100
13,000,100
13,000,100
17
Prior period adjustment
Reconciliation of changes in equity
1 August
31 August
2021
2022
£
£
Adjustments to prior year
Reverse incorrect capitalisation of intangible assets
-
(1,825,499)
Equity as previously reported
(3,157,174)
7,325,556
Equity as adjusted
(3,157,174)
5,500,057
Analysis of the effect upon equity
Profit and loss reserves
-
(1,825,499)
ABBEY SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
17
Prior period adjustment
(Continued)
- 21 -
Reconciliation of changes in loss for the previous financial period
2022
£
Total adjustments
-
Loss as previously reported
(2,517,270)
Loss as adjusted
(2,517,270)
18
Ultimate controlling party
The ultimate parent undertaking is Assum Limited, a company incorporated in England & Wales.
The financial statements of the company are consolidated in the financial statements of Assum Limited. These consolidated financial statements are available from its registered office, 1 Abbey Square, Chester, United Kingdom, CH1 2HU.
Mr B Borberly is the controlling party as the sole shareholder of the holding company.
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