REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
FOR |
CHASE GRAMMAR SCHOOL LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
FOR |
CHASE GRAMMAR SCHOOL LTD |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
CHASE GRAMMAR SCHOOL LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 AUGUST 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
The Old Coach House |
Horse fair |
Rugeley |
Staffordshire |
WS15 2EL |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
BACKGROUND AND ETHOS |
Chase Grammar School Limited (Chase Grammar) is a non-selective independent school for 2 to 19 year olds and offers a stimulating, personalised curriculum designed to promote the academic achievement and personal development of all pupils in small focused classes from Nursery to A-Level, culminating in public examinations at BTEC, GCSE and A-Level. IELTS and the International Foundation Diploma are offered to international pupils. Our curriculum includes the core areas of Mathematics (including Advanced Mathematics and Further Mathematics), Sciences, English, English as an additional language, English Literature, Humanities (Classics, Geography, History, Religious Studies) and Performing Arts, as well as Art, Business, Computer Science, Drama, Economics, Music, Photography, Psychology, Sport Science and a choice of six different modern languages (French, German, Italian, Mandarin, Russian and Spanish). Careers, P.E, Sport and Wellbeing are taught throughout the school. |
The school has non-selective entry and is inclusive of pupils of a wide range of abilities and talents and provides a broad selection of academic and extra-curricular opportunities. The international element within the school creates a platform for pupils to become global citizens and effective contributors within a competitive environment. Chase Grammar is non-selective and has an impressive reputation for outstanding academic results. At A level, nearly 15% of year 13 pupils were accepted on courses for medicine. Overall the pupils in year 12 and year 13 made 0.6 grade progress against their targets, on average, and international pupils made 1.8 grades progress. At GCSE, two of the pupils achieved top candidates awards, 30% of grades achieved were two grades above pupils' targets, and 25% were a whole grade above target. Also 56% of international pupils achieved grade 8 and grade 9. The school offers the Extended Project Qualification and with 67% of pupils achieving an A* grade. Chase Grammar achieved outstanding results with pupils receiving offers to top universities. Academic study is central for every pupil and will always take priority, but the experiences of a Chase Grammar pupil are never confined only to the classroom. |
Pupils are introduced to a range of learning strategies through the Learning Toolbox programme run by their Academic Mentors and enjoy an offer of over 50 different enrichment activities each week. A wide range of school trips and special events are also part of every pupil's experience at Chase Grammar. |
International pupils may join the school at any stage but many join as part of our "Pre A Level" programme, before starting A levels. In year 13, international pupils have the opportunity to study the International Foundational Diploma as an alternative route to university entrance. |
Whilst offering an excellent, broad education with modest fees, we aim to continually invest in the infrastructure and facilities at the school. Chase Grammar has a remarkable pool of outstanding teaching, pastoral and coaching staff who ensure that each pupil's needs and aspirations are met. The school aims to prepare its pupils for the whole of life - to be able to respond to life's challenges and opportunities by giving them a balanced education through a strong academic curriculum and an extensive range of extra-curricular activities in an inspiring setting. The breadth and diversity of opportunity offered to all pupils allows each to develop and achieve their potential. |
Within fulfilling its ethos and values the directors are conscious of its various key stakeholders and seeks to understand the respective interests of all its stakeholders, parents, staff, pupils and alumnae so that they may be properly considered in the Advisory Board decisions. We do this through various methods, including direct engagement by the board members, the receiving of reports and updates from the members of the school management who engage with such groups, and coverage in the Advisory Board papers of relevant stakeholders interest with regard to proposed courses of action. |
The school continues to position itself through its effective marketing, both locally and internationally, to be a competitive player within the independent sector.The school markets itself widely and is benefiting from renewed pupil growth as confidence returns to the market. The strength of Chase Grammar provision is built on the hard work and commitment of all the dedicated staff. Chase Grammar provides a safe and stable working environment where teaching and support staff contribute to the wider life of the school. |
REVIEW OF BUSINESS |
The company aims to provide a top-quality education program to a wide range of pupils. The company is committed to investing into education to improve the service and provide wider scholarship and bursary opportunities for both local and international pupils. |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
The independent education sector remains a challenging environment particularly when the economic uncertainty of recent years, following the Covid-19 pandemic, are considered. The Advisory Board are very aware of the risk surrounding the general affordability of school fees across the sector. This together with the risks related to the political environment and a potential Labour government imposing VAT on school fees will have substantial implications to parents and fee affordability. |
Scholarship and mentoring programme |
The Chase Grammar Oxbridge Programme aims to prepare pupils holistically for applications to Oxford, Cambridge and other Russell Group universities, not only in terms of academic excellence, but also in developing their critical, scholarly analysis, passion for their subject, and the interview skills unique to these universities. The programme operates on the belief that, while examination performance is an important prerequisite for application, the most successful applicants will have proven their intrinsic enjoyment of the subject, will already have begun working at an undergraduate level and will be able to clearly express their ideas and respond to the constructive criticism given during interviews. The focus of the Scholarship Programme is on supporting students with their preparation. |
The Scholarship Programme seeks to create strong applicants through personal development, skills coaching, high-quality teaching and interview skills, while also offering excellent leadership and learning opportunities through wider school life. Learning for the sake of learning is strongly encouraged, and the Oxbridge scholars should consider themselves to be part of a learning community - sharing their ideas, challenging each other and supporting each other to greater academic success. They will, in the Classical mode, be 'symposiasts' who see the play in learning. |
International programme with Chinese schools |
The school has formed a number of partnerships with Chinese Schools to further its international growth. The partnership has proved very successful and is an opportunity for Chase Grammar to expand its brand within the international education market further enhancing its cultural diversity. |
KEY PERFORMANCE INDICATORS |
- In the current financial year, the company's turnover has increased from £3.10m in 2022 to £4.27m in 2023. |
- The gross profit has increased from £83k in 2022 from £630k in 2023. |
- The net profit before tax and interest charges has increased from a deficit of £436k in 2022 to a profit of £51k. |
The company's net asset value now stands at £3,177,363. |
DEBTORS, CREDITORS AND FINANCIAL INSTRUMENTS |
The company endeavours to pay all suppliers within 30 days. Borrowing facilities have been re-negotiated during the last year which has eased the pressure on cash flow. All loan repayments are made in accordance with the terms set out in the agreements. |
The Company has a robust fee collection process with all fees due and payable on or before the first day of the term unless parents subscribe to the monthly fee collection service, Go Cardless. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks to the business are: |
Retaining high level teachers and keeping class sizes to an optimum level. |
Pupil recruitment and retention within a competitive market and challenging financial climate for families. |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
BUSINESS IN THE FUTURE |
The company has continued its principal activities throughout the year and the directors expect it to do so for the foreseeable future. The impact of the Covid-19 pandemic has had a significant impact on the school's traditional recruitment streams and has resulted in a lower than normal recruitment of international students which has affected the Chase Grammar revenue streams. |
The marketing of the school and engagement with prospective parents has been a strategic priority with a focus on diversification of international markets to broaden the recruitment reach and make the school less reliant on traditional markets. |
The directors have committed to continue to support the business for the foreseeable future whilst pupils numbers return to pre pandemic levels. |
ON BEHALF OF THE BOARD: |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
The directors present their report with the financial statements of the company for the year ended 31 August 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of school curriculum education. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 August 2023. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The exposure of the company and its subsidiary undertakings included in the consolidation to price risk, credit risk, liquidity risk and cash flow risk is set out in the strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
AUDITORS |
The auditors, Wynniatt-Husey Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHASE GRAMMAR SCHOOL LTD |
Opinion |
We have audited the financial statements of Chase Grammar School Ltd (the 'company') for the year ended 31 August 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion 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 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 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. |
Material uncertainty relating to going concern |
We draw attention to note 17 in the financial statements, which indicates that the company made a net loss of £226,509 during the period ended 31 August 2023, however at that date, the company retains a positive balance sheet of £3,177,363. As stated in note 24, events or conditions indicate that a material uncertainty exists which may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Key audit matters |
Except for the matter described in the Material uncertainty relating to going concern section, we have determined that there are no other key audit matters to be communicated in our report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHASE GRAMMAR SCHOOL LTD |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. |
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: |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
We ensured the engagement team had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. |
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHASE GRAMMAR SCHOOL LTD |
We assessed the extent of compliance with the laws and regulations identified above, through enquiries of management and inspecting correspondence with HM Revenue & Customs. Remaining alert for instances of non-compliance throughout the audit. We responded to these risks by enquiring of management about their own identification and assessment of the risks including enquiries of management about their own identification and assessment of the risks of irregularities, performing analytical procedures to identify unusual transactions, sample testing journals and investigation the rationale behind significant or unusual transactions, and reviewing estimates for bias. Also agreeing the financial statement disclosures to underlying supporting documentation |
We assessed the susceptibility of the company's financial statements to material misstatement in respect of fraud, by making enquiries of management as to where they considered there was susceptibility to fraud, and knowledge of actual, suspected and alleged fraud. We considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
We made enquiries of management as to the existence of actual or potential litigation and claims. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
The Old Coach House |
Horse fair |
Rugeley |
Staffordshire |
WS15 2EL |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
31.8.22 | 31.8.23 |
£ | Notes | £ |
TURNOVER |
( |
) | Cost of sales | ( |
) |
GROSS PROFIT |
( |
) | Administrative expenses | ( |
) |
(467,233 | ) | (75,609 | ) |
Other operating income | 3 |
( |
) | OPERATING LOSS | 5 | ( |
) |
( |
) | Interest payable and similar expenses | 6 | ( |
) |
( |
) | LOSS BEFORE TAXATION | ( |
) |
( |
) | Tax on loss | 7 |
( |
) | LOSS FOR THE FINANCIAL YEAR | ( |
) |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 AUGUST 2023 |
31.8.22 | 31.8.23 |
£ | Notes | £ |
( |
) | LOSS FOR THE YEAR | ( |
) |
- | OTHER COMPREHENSIVE INCOME | - |
( |
) | TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
BALANCE SHEET |
31 AUGUST 2023 |
31.8.22 | 31.8.23 |
£ | £ | Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
( |
) | Amounts falling due after more than one year | 11 | ( |
) |
( |
) | PROVISIONS FOR LIABILITIES | 15 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Revaluation reserve | 17 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 September 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 August 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 August 2023 | 86,001 | 2,970,868 | 3,177,363 |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
31.8.22 | 31.8.23 |
£ | Notes | £ |
Cash flows from operating activities |
( |
) | Cash generated from operations | 1 |
Government grants |
( |
) | Net cash from operating activities |
Cash flows from investing activities |
( |
) | Purchase of tangible fixed assets | ( |
) |
( |
) | Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New loans in year | ( |
) |
( |
) | Loan repayments in year | ( |
) |
(109,861 | ) | Interest paid | (183,153 | ) |
522,527 | Amount introduced by directors | - |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
363,446 | Cash and cash equivalents at beginning of year |
2 |
485,816 | Cash and cash equivalents at end of year | 2 | 999,753 |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.8.23 | 31.8.22 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
Government grants | ( |
) |
Finance costs | 183,153 | 109,861 |
3,549 | (412,281 | ) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 999,753 | 485,816 |
Year ended 31 August 2022 |
31.8.22 | 1.9.21 |
£ | £ |
Cash and cash equivalents | 485,816 | 363,446 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.9.22 | Cash flow | At 31.8.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 485,816 | 513,937 | 999,753 |
485,816 | 999,753 |
Debt |
Debts falling due within 1 year | (219,040 | ) | (2,024,312 | ) | (2,243,352 | ) |
Debts falling due after 1 year | (2,473,352 | ) | 2,243,352 | (230,000 | ) |
(2,692,392 | ) | 219,040 | (2,473,352 | ) |
Total | (2,206,576 | ) | 732,977 | (1,473,599 | ) |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
1. | STATUTORY INFORMATION |
Chase Grammar School Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
The presentation of the financial statements requires judgements, estimations and assumptions to be made that affect the reported values of assets, liabilities, revenue and expenses. The nature of estimation and judgement means that actual outcomes could differ from those estimates. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable recognised by the company in respect of services supplied during the period. |
In the past turnover was always net of pupils remissions, bursaries and scholarships. The company has changed this accounting policy to be in line with FRS 102 section 23 and therefore the income will be shown gross and cost of remissions will be included in cost of sales. |
Tangible fixed assets |
Portable classrooms | - |
Fixtures and fittings | - |
Computer equipment | - |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
Buildings - 2% straight line on depreciable value ( cost less residual value). |
The freehold land is shown in the accounts at cost and is not depreciated. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Creditors |
Short term creditors are measured at 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. |
Going concern |
The directors expect the company to continue operating on a going concern basis for the next 12 months.Thus the accounts have been prepared on a going concern basis. |
Financial instruments |
Financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included under the appropriate format heading depending on the nature of the derivative. |
Payments in advance |
Payments in advance represent sums paid by pupils in advance of their courses which are refundable in whole or in part should they cancel their course. |
Bad debts |
Unpaid amounts contractually due by pupils and agents relating to pupils no longer attending school are written off to bad debts. |
Fee deposits |
Fee deposits received are held on the balance sheet and refunded when a student leaves the school. |
3. | OTHER OPERATING INCOME |
Other operating income includes grant income. This was received for the following: |
Coronavirus Job Retention Scheme 2023: Nil (2022: £3,382). |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
4. | EMPLOYEES AND DIRECTORS |
31.8.23 | 31.8.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.8.23 | 31.8.22 |
Management staff | 2 | 2 |
Administrative staff / Support staff | 28 | 27 |
Teaching staff | 42 | 49 |
31.8.23 | 31.8.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
5. | OPERATING LOSS |
The operating loss is stated after charging: |
31.8.23 | 31.8.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Non-auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.8.23 | 31.8.22 |
£ | £ |
Bank loan interest |
HMRC interest |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
31.8.23 | 31.8.22 |
£ | £ |
Deferred tax | ( |
) |
Tax on loss | ( |
) |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
7. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.8.23 | 31.8.22 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2022 - |
( |
) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax | (7,575 | ) | 11,186 |
Loss carried forward for which no deferred tax asset was recognised | 49,462 | 101,654 |
Total tax (credit)/charge | (7,575 | ) | 11,186 |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Portable | and | Computer |
Totals | property | classrooms | fittings | equipment |
£ | £ | £ | £ | £ |
COST |
At 1 September 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
The freehold land and buildings are shown at cost. The buildings are depreciated at 2% straight line on cost less residual value. The directors believe that the value of the land and property is higher than the original cost. The company continues a relentless program of repairs and renewals each year to keep the buildings to a high standard. |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Trade debtors |
Bad debts provision | (48,390 | ) | (24,384 | ) |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
Amounts owed by group undertakings in the parent company are unsecured, interest free and are repayable on demand. |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Trade creditors |
Coutts company credit card | 792 | 363 |
HSBC Commercial credit card | - | 1,694 |
Amounts owed to group undertakings |
Payments in advance | 1,421,724 | 687,283 |
Wages control account | 220 | - |
PAYE control account | 41,478 | 81,465 |
Pension liabilities | 55,438 | 26,361 |
Directors' current accounts | 571,399 | 571,399 |
Accrued expenses |
Fee deposits | 752,096 | 619,206 |
Amounts owed to group undertakings in the parent company are unsecured, interest free and are repayable on demand. |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Bank loans (see note 12) |
12. | LOANS |
An analysis of the maturity of loans is given below: |
31.8.23 | 31.8.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans less 1 year |
Amounts falling due between one and two years: |
Bank loans 1-2 years |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
12. | LOANS - continued |
31.8.23 | 31.8.22 |
£ | £ |
Amounts falling due between two and five years: |
Bank loans 2-5 years |
The loans are carrying interest rates of between approximately 3.30% and 3.99%. |
The Coutts bank loan repayment started on 9 September 2021. The outstanding balance has been repaid in full. |
HSBC Business Interruption Loan repayment started on 3 August 2021 and has the CBILS Guarantee which is backed by the UK Government. The outstanding balance must be repaid in full by 3 July 2026. |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.8.23 | 31.8.22 |
£ | £ |
Within one year |
Between one and five years |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.8.23 | 31.8.22 |
£ | £ |
Bank loans | 1,923,352 | 2,117,392 |
Bank debt is secured by first legal charges on the company's freehold land and buildings. The company also have fixed and floating charge on its other assets. |
15. | PROVISIONS FOR LIABILITIES |
31.8.23 | 31.8.22 |
£ | £ |
Deferred tax | 49,480 | 57,055 |
Deferred |
tax |
£ |
Balance at 1 September 2022 |
Provided during year | ( |
) |
Balance at 31 August 2023 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.8.23 | 31.8.22 |
value: | £ | £ |
Ordinary | £1 | 86,001 | 86,001 |
CHASE GRAMMAR SCHOOL LTD (REGISTERED NUMBER: 01454970) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
17. | RESERVES |
Retained | Revaluation |
Totals | earnings | reserve |
£ | £ | £ |
At 1 September 2022 | 3,317,871 | 3,197,377 | 120,494 |
Deficit for the year | (226,509 | ) | (226,509 | ) |
At 31 August 2023 | 3,091,362 | 2,970,868 | 120,494 |
Retained earnings represent cumulative distributable profits net of dividends. |
18. | ULTIMATE PARENT COMPANY |
Achieve Education Limited is regarded by the directors as being the company's ultimate parent company. |
Achieve Education Limited owns 100% of the company. Registered office: Chase Grammar School, Convent Close, Cannock, Staffordshire, WS11 0UR. A copy of the parent company's consolidated accounts are available from Companies House. |
19. | CONTINGENT LIABILITIES |
There is a potential contingent liability of £40,000 in relation to a shortfall in the teachers pension scheme. However this may not be payable if future conditions are met. |
20. | RELATED PARTY DISCLOSURES |
During the year no dividends were paid to the directors/shareholders. |
Included in creditors is an amount due to a director of the company of £571,399 (2022: £571,399). This is an interest free loan and repayable upon demand. |
During the year student fees of £732,779 (2022: £437,478) were received from UK Schools Consultant (HK) Limited t/a UK Boarding Schools Admissions Service( a company with a common director). |
Included in cost of sales are £109,450 of costs from a company with a common director. |
21. | POST BALANCE SHEET EVENTS |
Since the year end the company secured a new bank loan after a current loan was repaid. |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr C Bao by virtue of his majority shareholding in Achieve Education Limited. |
23. | CHARGES AND SECURITIES |
There are fixed and floating charges secured against the assets of the company. |
24. | GOING CONCERN |
Despite current year losses and the current reduction in the pupil numbers, the directors are confident that the company is able to meet its liabilities as they fall due, with the support of the parent company, Achieve Education Limited. The directors have also agreed to subordinate their directors' loans in the group in favour of any other creditor. |