Company registration number 13846280 (England and Wales)
ASSUM LIMITED
CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023
ASSUM LIMITED
COMPANY INFORMATION
Director
Mr B Borbely
Company number
13846280
Registered office
1 Abbey Square
Chester
CH1 2HU
Auditor
Sedulo Audit Limited
605 Albert House
256-260 Old Street
London
United Kingdom
EC1V 9DD
ASSUM LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Director's responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
ASSUM LIMITED
CONTENTS
Notes to the financial statements
18 - 36
ASSUM LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2023
- 1 -

The director presents the strategic report for the period ended 31 August 2023.

Principal activities

The principal activity of the Company is to act as an investment holding company for the Assum Group.

 

The Assum Group includes two operating Divisions:

 

Abbey School Limited

 

An independent special school that aims to be the very best of its kind in the United Kingdom. The day school is for children and young persons aged 4-19 years with autism who may have additional learning difficulties and behaviours that challenge. We meet the needs of our pupils in Grade II* listed buildings dating back to 1754, and located in the heart of historic Chester, Abbey Square.

Its aim is to improve the life chances of our pupils through education and learning, and to extend the prospect of an improved quality of life for family members and others. It also believes in enriching our community. Through supporting our pupils, their families, and our community, we are working hard to deliver an agenda that is socially significant and relevant.

 

Special Needs Care Limited

 

We are a team of professionals led by a practising solicitor delivering bespoke, personalised care solutions to people with learning disabilities, autism and complex care/health needs for adults.

We are champions of the best models of care, particularly active support and positive behaviour support, led by a team of board-certified behaviour analysts across all our services. We have developed innovative digital solutions to support the implementation of Active Support, turning person centred planning into person centred action.

 

We think about quality of life in terms of Belonging and connection, having Autonomy and control, developing our Gifts and talents, and being a Speaker and listener with a sense of self, namely the BAGS Model. We pursue quality of life goals through Active Support, Positive Behavioural Support and the BAGS model, and these models have significantly improved staff attitudes towards service users through the promotion of engagement, opportunity and participation.

 

In addition to this, our Behaviour Analysts carry out functional assessments for those individuals whose behaviour can be operationally defined as challenging. This process enables us to ascertain the function of behaviour and draw an individual intervention plan based upon the persons specific needs.

Review of the business
Principal risks and uncertainties

The director recognises that the degree of exposure to risks and the group's ability to manage those risks effectively will influence how successful the business is. The director identifies, assess and manage the risks associated with the business objectives and strategy via its senior management team in each division. Below are the principal risks and uncertainties that may affect the group and mitigating factors.

 

Economic and policy risk

The majority of the group's revenue is generated from Local Authorities, Clinical Commissioning Groups (CCGs) and other publicly funded bodies. As such, the success of the group is linked to the willingness of such public bodies to fund the group services. Uncertainty surrounds public body budgets and policy and a change in either, relating to education, health and social care, may pose a risk to the group. To mitigate this risk, the group endeavours to keep well informed of future and proposed legislative changes, assesses public body demand through regular dialogue, and reviews fees and value for money within the marketplace.

ASSUM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 2 -

The director have considered world factors such as climate change and judge the impact to be minimal due to the nature of the operations. The directors continue to monitor the rise in inflation and the impact on the cost base of the business by taking measures to mitigate cost increases and use the increasing size of the business to negotiate improved terms.

 

The directors have considered the potential consequences of the UK leaving the EU. The group neither exports nor makes significant imports but does employ staff from other EU countries. The directors continue to monitor the situation on the availability of staff and implement mitigation strategies as required to help reduce the impact of increased agency costs.

 

Regulatory and Risk

 

All Assum Group services are regulated by the Office for Standards in Education, Children's Services and Skills (Ofsted), the Independent Schools Inspectorate (ISI) or the Care Quality Commission (CQC). The key risks posed by operating within a heavily regulated environment are the introduction of new regulations and failure to meet existing regulations. Failure to comply with regulatory requirements may result in de-regulation of a service and fines, the loss of child, young person and adult placements, and reputational risk. Damage to reputation could lead to the loss of contracts and severely impact revenue. To mitigate regulatory risk, robust policies and procedures are in place throughout the group, a Governance framework established, regular internal audits completed, and.quality inspections are carried out by an experienced independent team. This includes strict safeguarding policies for all students and residents under the group's care to ensure a safe and caring environment is provided at all times and protect them from significant harm. Further to this, rigorous recruitment and training procedures are in place to ensure that our employees are appropriately equipped to work within our services.

Business and operational risk

The success of the business depends on the ability of management to develop services for which there is a demand and then to operate those services to meet stakeholder requirements. The group relies on the management of efficient and established processes and controls to identify, develop and operate its services. The potential impact and likelihood of processes failing, and operational risk materialising is assessed on a regular basis. Where likelihoods are felt to be outside the directors' appetite for risk, management actions and/or control improvements are identified in order to bring each potential risk back to acceptable levels. The group has a disaster recovery plan in place for all services covering all current business requirements.

 

Management is active in seeking knowledge on changes to the business environment which may have an impact on the way that the Group does business.

 

Credit risk

The credit risk is primarily attributable to the group's trade debtors, which are predominantly public bodies. The amount presented in the balance sheet is net of allowance for doubtful receivables. The credit risk is limited because the debtors are public bodies and there is no indication that there has been a change in their ability to pay. The public bodies concerned have not been downgraded as a result of the UK's decision to leave the EU.

 

Liquidity risk

By managing liquidity, the group aims to ensure it can meet its financial obligations as and when they fall due. As detailed in note 1, the financial statements have been prepared on a going concern basis, in support of which the Board has reviewed the Group's trading forecasts for the next 12 months taking into account the current macroeconomic environment. As a result, the directors are confident that the assumptions underlying these forecasts are reasonable and that the group will be able to operate on this basis.

ASSUM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 3 -
Key performance indicators

The director uses several financial and non-financial performance indicators to monitor and evaluate the performance of the Company, including the regulatory gradings, because these are widely recognised by service users. The latest government inspection reports can be found at the following websites: www.cqc.org.uk and www.gov.uk/government/organisations/ofsted. The directors also use the occupancy rates of each of the schools to monitor and evaluate the performance of the Company.

 

The directors consider the financial key performance indicators for the Group to be turnover and earnings before interest, tax, depreciation, amortisation and exceptional items (EBITDA). These metrics best reflect the financial performance of the Group and are consistent with how the finances of the business are assessed and managed on an operational basis.

 

Period ended 31 August 2023

Turnover                 £18,392,654

EBITDA before exceptional income     £503,459 profit

 

The Group's continuing trading performance has seen more demand for services and the Group has continued to grow occupancy, giving rise to an increase in turnover.

On behalf of the board

Mr B Borbely
Director
30 August 2024
ASSUM LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 AUGUST 2023
- 4 -

The director presents his annual report and financial statements for the period ended 31 August 2023.

Results and dividends

The Group profit for the year amounted to £503,459.

 

The Group continues to grow by expanding and opening new sites and maximising occupancy, It is expected that it will takes several years for schools to expand and then reach financial maturity.

Director

The director who held office during the period and up to the date of signature of the financial statements was as follows:

Mr B Borbely
Disabled persons

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

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

The group is committed to employee involvement throughout the business. The group is intent on motivating and keeping staff informed on matters that concern them in the context of their employment and involving them through local consultative procedures.

 

Employees are kept well informed on matters of interest and the financial and economic factors affecting the group's performance through management channels and meetings.

Business relationships

The Group is aware of the importance of relationships with stakeholders and disclosure.

Auditor

In accordance with the company's articles, a resolution proposing that Sedulo Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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 auditor of the company 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 auditor of the company is aware of that information.

ASSUM LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 5 -
On behalf of the board
Mr B Borbely
Director
30 August 2024
ASSUM LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 AUGUST 2023
- 6 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ASSUM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASSUM LIMITED
- 7 -
Opinion

We have audited the financial statements of Assum Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 August 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The 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.

 

The previous period was unaudited.

ASSUM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASSUM LIMITED
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent 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.

ASSUM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASSUM LIMITED
- 9 -

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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
ASSUM LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 AUGUST 2023
- 10 -
period
ended
31 August
2023
Notes
£
Turnover
3
18,392,654
Cost of sales
(14,233,891)
Gross profit
4,158,763
Administrative expenses
(4,375,775)
Other operating expenses
(1,685)
Operating loss
4
(218,697)
Interest receivable and similar income
7
12,366
Interest payable and similar expenses
8
(938,368)
Amounts written off investments
9
(44,749)
Loss before taxation
(1,189,448)
Tax on loss
10
1,692,907
Profit for the financial period
24
503,459
Profit for the financial period is all attributable to the owners of the parent company.
ASSUM LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2023
- 11 -
period
ended
31 August
2023
£
Profit for the period
503,459
Other comprehensive income
-
Total comprehensive income for the period
503,459
Total comprehensive income for the period is all attributable to the owners of the parent company.

The notes on pages 18 to 36 form part of these financial statements.

ASSUM LIMITED
GROUP BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 12 -
2023
Notes
£
£
Fixed assets
Negative goodwill
12
(7,665,980)
Other intangible assets
12
471,861
Total intangible assets
(7,194,119)
Tangible assets
13
9,608,865
Investment property
14
4,970,000
7,384,746
Current assets
Debtors
17
3,694,637
Cash at bank and in hand
125,920
3,820,557
Creditors: amounts falling due within one year
18
(3,548,784)
Net current assets
271,773
Total assets less current liabilities
7,656,519
Creditors: amounts falling due after more than one year
19
(6,909,983)
Provisions for liabilities
Deferred tax liability
21
243,075
(243,075)
Net assets
503,461
Capital and reserves
Called up share capital
23
2
Profit and loss reserves
24
503,459
Total equity
503,461

The notes on pages 18 to 36 form part of these financial statements.

The financial statements were approved and signed by the director and authorised for issue on 30 August 2024
30 August 2024
Mr B Borbely
Director
Company registration number 13846280 (England and Wales)
ASSUM LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023
31 August 2023
- 13 -
2023
Notes
£
£
Fixed assets
Investments
15
5,274,999
Current assets
Debtors
17
2,628,075
Cash at bank and in hand
12,770
2,640,845
Creditors: amounts falling due within one year
18
(2,598,509)
Net current assets
42,336
Total assets less current liabilities
5,317,335
Creditors: amounts falling due after more than one year
19
(6,909,983)
Net liabilities
(1,592,648)
Capital and reserves
Called up share capital
23
2
Profit and loss reserves
24
(1,592,650)
Total equity
(1,592,648)

The notes on pages 18 to 36 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,592,650.

The financial statements were approved and signed by the director and authorised for issue on 30 August 2024
30 August 2024
Mr B Borbely
Director
Company registration number 13846280 (England and Wales)
ASSUM LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
-
-
-
Period ended 31 August 2023:
Profit and total comprehensive income
-
503,459
503,459
Issue of share capital
23
2
-
2
Balance at 31 August 2023
2
503,459
503,461
ASSUM LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2023
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
-
-
-
Period ended 31 August 2023:
Profit and total comprehensive income
-
(1,592,650)
(1,592,650)
Issue of share capital
23
2
-
2
Balance at 31 August 2023
2
(1,592,650)
(1,592,648)
ASSUM LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2023
- 16 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
1,925,367
Interest paid
(938,368)
Income taxes refunded
17,768
Net cash inflow/(outflow) from operating activities
1,004,767
Investing activities
Purchase of intangible assets
7,591,994
Purchase of tangible fixed assets
(10,381,270)
Purchase of investment property
(4,907,000)
Intercompany loan write off
(107,749)
Interest received
12,366
Net cash used in investing activities
(7,791,659)
Financing activities
Proceeds from issue of shares
2
Repayment of bank loans
6,909,983
Net cash generated from/(used in) financing activities
6,909,985
Net increase in cash and cash equivalents
123,093
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
123,093
Relating to:
Cash at bank and in hand
125,920
Bank overdrafts included in creditors payable within one year
(2,827)
ASSUM LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2023
- 17 -
2023
Notes
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(581,051)
Interest paid
(933,416)
Net cash outflow from operating activities
(1,514,467)
Investing activities
Acquisition of entities
(5,382,748)
Net cash used in investing activities
(5,382,748)
Financing activities
Proceeds from issue of shares
2
Repayment of bank loans
6,909,983
Net cash generated from/(used in) financing activities
6,909,985
Net increase in cash and cash equivalents
12,770
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
12,770
ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023
- 18 -
1
Accounting policies
Company information

Assum Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Abbey Square, Chester, United Kingdom, CH1 2HU.

 

The group consists of Assum Limited and all of its subsidiaries.

1.1
Reporting period

The financial statements for the parent company Assum Limited and the group as a whole cover a 16 month period, extended from 30 April 2023 to 31 August 2023 to bring the year end in line with all subsidiaries within the group.

1.2
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.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Assum Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 August 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 19 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group 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.

1.6
Turnover

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

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

1.7
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.

1.8
Intangible fixed assets - goodwill

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

 

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

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 20 -
1.9
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

School curriculum development
Straight line over 10 years
1.10
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 land and buildings
Straight line over 15 years
Leasehold improvements
Straight line over 15 years or 4% on cost
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Computers
33% reducing balance
Motor vehicles
25% 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 recognised in the profit and loss account.

1.11
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.12
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 21 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.13
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.14
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 22 -
1.15
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 23 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.16
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.17
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 24 -
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 if, and only if, there is 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.

1.18
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.20
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 leased asset are consumed.

1.21
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 25 -
3
Turnover and other revenue
2023
£
Turnover analysed by class of business
Educational services
8,159,999
Care services
10,232,655
18,392,654
2023
£
Other revenue
Interest income
12,366
Grants received
(1,685)
4
Operating loss
2023
£
Operating loss for the period is stated after charging/(crediting):
Start up costs
468,210
Government grants
1,685
Depreciation of owned tangible fixed assets
772,405
Amortisation of intangible assets
161,974
Impairment of intangible assets
495,714
Release of negative goodwill
(1,055,563)
Operating lease charges
204,459
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
15,000
Audit of the financial statements of the company's subsidiaries
39,500
54,500
ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 26 -
6
Employees

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

Group
Company
2023
2023
Number
Number
Admin staff
31
1
Care/Support workers
392
-
Teachers
16
-
Directors
1
1
Total
440
2

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
13,297,956
105,013
Social security costs
909,577
-
Pension costs
324,565
-
0
14,532,098
105,013
7
Interest receivable and similar income
2023
£
Interest income
Interest on bank deposits
12,366
2023
Investment income includes the following:
£
Interest on financial assets not measured at fair value through profit or loss
12,366
ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 27 -
8
Interest payable and similar expenses
2023
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
933,416
Other finance costs:
Other interest
4,952
Total finance costs
938,368
9
Amounts written off investments
2023
£
Changes in the fair value of investment properties
63,000
Other gains and losses
(107,749)
(44,749)
10
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
2,500
Deferred tax
Origination and reversal of timing differences
(1,936,344)
Adjustment in respect of prior periods
240,937
Total deferred tax
(1,695,407)
Total tax credit
(1,692,907)
ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
10
Taxation
(Continued)
- 28 -

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

2023
£
Loss before taxation
(1,189,448)
Expected tax credit based on the standard rate of corporation tax in the UK of 21.50%
(255,731)
Tax effect of expenses that are not deductible in determining taxable profit
179,889
Tax effect of income not taxable in determining taxable profit
(258,000)
Adjustments in respect of prior years
240,937
Effect of change in corporation tax rate
(268,635)
Group relief
(65,759)
436,154
(23,840)
(45,009)
(1,632,913)
Taxation credit
(1,692,907)
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
Notes
£
In respect of:
Intangible assets
12
495,714
Recognised in:
Administrative expenses
495,714

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 29 -
12
Intangible fixed assets
Group
Negative goodwill
School curriculum development
Total
£
£
£
Cost
At 1 May 2022
-
0
-
0
-
0
Additions - internally developed
-
0
1,119,943
1,119,943
Additions - separately acquired
(8,711,937)
-
0
(8,711,937)
At 31 August 2023
(8,711,937)
1,119,943
(7,591,994)
Amortisation and impairment
At 1 May 2022
-
0
-
0
-
0
Amortisation charged for the period
(1,045,957)
152,368
(893,589)
Impairment losses
-
0
495,714
495,714
At 31 August 2023
(1,045,957)
648,082
(397,875)
Carrying amount
At 31 August 2023
(7,665,980)
471,861
(7,194,119)
The company had no intangible fixed assets at 31 August 2023.

More information on impairment movements in the period is given in note 11.

The amount written down related to capitalised software costs that were no longer considered likely to generate future economic benefit.

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 30 -
13
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 May 2022
-
0
-
0
-
0
-
0
-
0
-
0
-
0
Additions
134,928
9,151,100
1,459
1,060,779
25,338
7,666
10,381,270
At 31 August 2023
134,928
9,151,100
1,459
1,060,779
25,338
7,666
10,381,270
Depreciation and impairment
At 1 May 2022
-
0
-
0
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
20,675
509,475
255
228,345
11,048
2,607
772,405
At 31 August 2023
20,675
509,475
255
228,345
11,048
2,607
772,405
Carrying amount
At 31 August 2023
114,253
8,641,625
1,204
832,434
14,290
5,059
9,608,865
The company had no tangible fixed assets at 31 August 2023.
ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 31 -
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 May 2022 and 31 August 2023
-
-
Additions through external acquisition
4,907,000
-
Net gains or losses through fair value adjustments
63,000
-
At 31 August 2023
4,970,000
-

Investment properties were revalued to £3,070,000 on 01/08/2018 by Smith and Sons Property Consultants. Investment properties were valued on an open market basis.

 

Since the revaluation investment properties with accumulated cost of £1,323,143 have been acquired, totaling the current carrying value of £4,393,143.

 

There was no movement in value in 2023 based upon the valuation carried out by an external expert.

15
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
16
-
0
5,274,999
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2022
-
Additions
5,274,999
At 31 August 2023
5,274,999
Carrying amount
At 31 August 2023
5,274,999
16
Subsidiaries

Details of the company's subsidiaries at 31 August 2023 are as follows:

ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
16
Subsidiaries
(Continued)
- 32 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Special Needs Care Limited
1 Abbey Square, Chester, United Kingdom, CH1 2HU
Ordinary
100.00
-
Abbey School Limited
10-12 Abbey Square, Chester, United Kingdom, CH1 2HU
Ordinary
100.00
-
Essential Property (NW) Limited
1 Abbey Square, Chester, United Kingdom, CH1 2HU
Ordinary
100.00
-
Special Needs Housing
9 Queens Road, Chester, United Kingdom, CH1 3BQ
Voting rights
-
100.00
17
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
1,133,116
-
0
Corporation tax recoverable
115,633
-
0
Amounts owed by group undertakings
-
2,628,073
Other debtors
5,003
2
Prepayments and accrued income
520,171
-
0
1,773,923
2,628,075
Amounts falling due after more than one year:
Deferred tax asset (note 21)
1,920,714
-
0
Total debtors
3,694,637
2,628,075
18
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Bank loans and overdrafts
20
2,827
-
0
Trade creditors
186,279
50,000
Amounts owed to group undertakings
-
0
2,345,038
Corporation tax payable
118,133
-
0
Other taxation and social security
712,659
-
Other creditors
274,035
202,751
Accruals and deferred income
2,254,851
720
3,548,784
2,598,509
ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 33 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Bank loans and overdrafts
20
6,909,983
6,909,983
20
Loans and overdrafts
Group
Company
2023
2023
£
£
Bank loans
6,909,983
6,909,983
Bank overdrafts
2,827
-
0
6,912,810
6,909,983
Payable within one year
2,827
-
0
Payable after one year
6,909,983
6,909,983

The long-term loans are unsecured. Repayment terms are 10 years from April 2022, the group can break from these terms with 10 months notice. Interest is charged quarterly at 10% pa.

21
Deferred taxation

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

Liabilities
Assets
2023
2023
Group
£
£
Accelerated capital allowances
69,713
15,555
Revaluations
203,536
-
Retirement benefit obligations
(2,453)
6,423
Timing differences
(27,721)
1,898,736
243,075
1,920,714
The company has no deferred tax assets or liabilities.
ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
21
Deferred taxation
(Continued)
- 34 -
Group
Company
2023
2023
Movements in the period:
£
£
Asset at 1 May 2022
-
-
Credit to profit or loss
(1,659,871)
-
Asset at 31 August 2023
(1,659,871)
-
Balance per TB
(1,677,639)
-
Warning - Difference exists; check stat db entries
(17,768)
-
22
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
324,565

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
2
2
24
Profit and loss reserves
Group
Company
2023
2023
£
£
At the beginning of the period
-
-
Profit/(loss) for the period
503,459
(1,592,650)
At the end of the period
503,459
(1,592,650)
ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 35 -
25
Acquisition of a business

On 1 May 2022 the Group acquired 100% of the issued share capital of Abbey School Limited and Special Needs Care Limited for a consideration of £5,275,000.

The net assets acquired totalled £13,986,937 resulting in negative goodwill of £8,711,937.

27
Cash generated from/(absorbed by) group operations
2023
£
Profit for the period after tax
503,459
Adjustments for:
Taxation credited
(1,692,907)
Finance costs
938,368
Investment income
(12,366)
Fair value gain on investment properties
(63,000)
Amortisation and impairment of intangible assets
(397,875)
Depreciation and impairment of tangible fixed assets
772,405
Other gains and losses
107,749
Movements in working capital:
Increase in debtors
(1,658,290)
Increase in creditors
3,427,824
Cash generated from/(absorbed by) operations
1,925,367
28
Cash absorbed by operations - company
2023
£
Loss for the period after tax
(1,592,650)
Adjustments for:
Finance costs
933,416
Other gains and losses
107,749
Movements in working capital:
Increase in debtors
(2,628,075)
Increase in creditors
2,598,509
Cash absorbed by operations
(581,051)
ASSUM LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
- 36 -
29
Analysis of changes in net debt - group
1 May 2022
Cash flows
31 August 2023
£
£
£
Cash at bank and in hand
-
125,920
125,920
Bank overdrafts
-
(2,827)
(2,827)
-
123,093
123,093
Borrowings excluding overdrafts
-
(6,909,983)
(6,909,983)
-
(6,786,890)
(6,786,890)
30
Analysis of changes in net debt - company
1 May 2022
Cash flows
31 August 2023
£
£
£
Cash at bank and in hand
-
12,770
12,770
Borrowings excluding overdrafts
-
(6,909,983)
(6,909,983)
-
(6,897,213)
(6,897,213)
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