Company Registration No. 06330138 (England and Wales)
JANCETT CHILDCARE & JACE TRAINING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
JANCETT CHILDCARE & JACE TRAINING LIMITED
COMPANY INFORMATION
Directors
Mrs T A Pritchard-Drummond
Mr S A Drummond
Company number
06330138
Registered office
16 - 18 Stanley Park Road
Wallington
Surrey
United Kingdom
SM6 0EU
Auditor
Bryden Johnson Limited
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
Business address
16 - 18 Stanley Park Road
Wallington
Surrey
United Kingdom
SM6 0EU
JANCETT CHILDCARE & JACE TRAINING LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
JANCETT CHILDCARE & JACE TRAINING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Overview
Jancett Childcare & Jace Training Limited is dedicated to providing high-quality childcare and training services. The company aims to foster an environment conducive to the development of children and the professional growth of learners and employees. This strategic report covers the financial year ending 2024, addressing key areas of regulatory risk, liquidity risk, credit risk, and pricing risk in compliance with FRS 102. The Company comprises of three major sectors: Jancett Childcare (Nurseries); Jancett Playsafe (‘wrap-around’ after school care and Holiday Clubs); and JACE Training (delivery of apprenticeship and pre-apprenticeship training programmes). All three business sectors achieved a net profit for the year.
Principal risks and uncertainties
Regulatory Risk
Description: Regulatory risk refers to the potential for losses or operational disruptions due to changes in laws, regulations, or governmental policies.
Assessment:
The childcare and training sectors are heavily regulated, with strict standards for health, safety, and educational outcomes.
Changes in government funding policies for childcare and educational programmes impact revenue capacity significantly.
The introduction of recent government led Childcare reforms represents the most significant in the history of childcare and are being introduced on a phased basis, between September 2023 to September 2025. Already they are generating an increase in demand for our childcare services.
The introduction of new regulations concerning staff qualifications required and child-to-staff ratios overall have not caused an increase in operational costs.
Mitigation Strategies:
Regular training for staff on regulatory changes, to ensure compliance with Safeguarding and Health and Safety.
Active engagement with childcare and training industry bodies, to stay informed about planned regulatory changes and their potential impact.
Maintaining a strategic leadership team to monitor and review key sector data metrics, to enable adaptations to our operations, in response to external influences.
Liquidity Risk
Description: Liquidity risk is the risk that the company will not be able to meet its short-term financial obligations due to an inability to convert assets into cash quickly.
Assessment:
The company relies on timely payments from customers (parents and learners) and government funding.
A significant proportion of Company assets’ is invested in real property and equipment, which cannot be quickly converted to cash but do provide long term security.
JANCETT CHILDCARE & JACE TRAINING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Mitigation Strategies:
Maintaining a cash reserve to cover short-term liabilities.
Implementing efficient billing and collection processes to clients, to ensure timely cash inflows.
Establishment of credit lines and overdraft options to provide additional liquidity when needed.
Credit Risk
Description: Credit risk arises from the possibility that counterparties (e.g., parents, learners, and government bodies) may default on their financial obligations.
Assessment:
Mitigation Strategies:
Conducting credit checks for new clients where feasible.
Offering flexible payment plans to accommodate clients' financial situations.
Diversifying funding sources to reduce dependency on any single entity, this is achieved to some extent through the three separate business sectors.
Payment in advance of Nursery fees provides further mitigation.
Pricing Risk
Description: Pricing risk pertains to the potential for losses due to changes in market conditions affecting the company's pricing structure.
Assessment:
Competitive pressures in the childcare and training sectors can impact pricing strategies.
Schools & Academies reviewing their ‘wrap-around’ offer can impact the Playsafe delivery.
Rising costs (e.g., wages, utilities, business rates and supplies) can squeeze profit margins if prices cannot be adjusted accordingly.
Mitigation Strategies:
Regularly reviewing and adjusting pricing strategies to remain competitive whilst maintaining a profit margin.
Implementing cost control measures to manage operational expenses effectively.
Exploring value-added services to justify premium pricing.
JANCETT CHILDCARE & JACE TRAINING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Key performance indicators
Revenue:
The company has seen steady growth in revenue, driven by an increase in enrolment for childcare; however, this has been aligned with closure of three settings to optimise efficiency of those in operation.
Playsafe have maintained consistent occupancy despite closure of the Leo Academy schools (four closures in total through this year)
Training delivery has been steady, with an increase in student numbers and therefore revenue over the previous year but with government funding rates per learner remaining largely unchanged since 2017.
Diversification of service offer to deliver flexibility with Childcare reforms is planned for the 2024/25 year.
Expenses:
Operating expenses have increased due to higher staffing costs, food costs and utilities. Investment in property has been limited.
Cost management initiatives have been implemented to maintain profitability.
Achievement of the Sustainability kitemark, Green Mark Level 1, has secured significant business rate reduction in the Childcare sector and we will continue to work to the next level to ensure our carbon footprint continues to decline.
Profitability:
Despite rising costs, profitability has been maintained through strategic pricing and efficient operations.
The focus on quality and compliance has strengthened the company's market position, supporting sustained revenue growth.
Future Outlook
Jancett Childcare & Jace Training Limited is poised for continued growth, with strategic initiatives focused on expanding the Childcare service offerings through the Childcare reforms; increasing Playsafe offer with further schools & Childcare reforms September 24/25 & enhancing operational efficiency in JACE.
The company will continue to monitor and manage risks to ensure long-term stability and success.
Conclusion
The financial year ending 2024 has been one of strategic growth and prudent risk management for Jancett Childcare & Jace Training Limited. By addressing regulatory, liquidity, credit, and pricing risks proactively, the company has laid a solid foundation for future success. Compliance with FRS 102 ensures transparency and accountability in financial reporting, supporting the company's ongoing commitment to excellence.
Mrs T A Pritchard-Drummond
Director
2 August 2024
JANCETT CHILDCARE & JACE TRAINING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be the provision of childcare and vocational training.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs T A Pritchard-Drummond
Mr S A Drummond
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £92,513. The directors do not recommend payment of a final dividend.
No preference dividends were paid.
Employee involvement
The company's policy is to consult and discuss with employees, through employee forums 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 company's performance.
Auditor
The auditor, Bryden Johnson Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs T A Pritchard-Drummond
Director
2 August 2024
JANCETT CHILDCARE & JACE TRAINING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
The directors are responsible for preparing the annual report 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.
JANCETT CHILDCARE & JACE TRAINING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JANCETT CHILDCARE & JACE TRAINING LIMITED
- 6 -
Opinion
We have audited the financial statements of Jancett Childcare & JACE Training Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
JANCETT CHILDCARE & JACE TRAINING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JANCETT CHILDCARE & JACE TRAINING LIMITED
- 7 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
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.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK taxation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management override of controls. Audit procedures performed by the engagement team included:
- Reviewing minutes of meetings of those charged with governance;
- Enquiry of management and those charged with governance around actual and potential litigation and claims;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations, and
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and testing accounting estimates (because of the risk of management bias).
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.
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.
JANCETT CHILDCARE & JACE TRAINING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JANCETT CHILDCARE & JACE TRAINING LIMITED
- 8 -
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.
Jackie Wilding
Senior Statutory Auditor
For and on behalf of Bryden Johnson Limited
4 September 2024
Chartered Accountants
Statutory Auditor
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
JANCETT CHILDCARE & JACE TRAINING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
6,461,987
6,544,982
Cost of sales
(4,342,846)
(4,125,625)
Gross profit
2,119,141
2,419,357
Administrative expenses
(1,748,769)
(1,917,889)
Other operating income
9,296
6,169
Operating profit
4
379,668
507,637
Interest receivable and similar income
7
6,120
1,102
Interest payable and similar expenses
8
(42,861)
(28,205)
Profit before taxation
342,927
480,534
Tax on profit
9
(113,583)
(99,863)
Profit for the financial year
229,344
380,671
The profit and loss account has been prepared on the basis that all operations are continuing operations.
JANCETT CHILDCARE & JACE TRAINING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
£
£
Profit for the year
229,344
380,671
Other comprehensive income
Tax relating to other comprehensive income
(114,611)
Total comprehensive income for the year
114,733
380,671
JANCETT CHILDCARE & JACE TRAINING LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
675,100
750,100
Tangible assets
12
3,319,716
3,356,612
3,994,816
4,106,712
Current assets
Stocks
13
35,688
41,619
Debtors
14
267,930
179,387
Cash at bank and in hand
1,069,650
947,925
1,373,268
1,168,931
Creditors: amounts falling due within one year
15
(867,135)
(862,081)
Net current assets
506,133
306,850
Total assets less current liabilities
4,500,949
4,413,562
Creditors: amounts falling due after more than one year
16
(532,773)
(582,217)
Provisions for liabilities
Deferred tax liability
19
477,547
362,936
(477,547)
(362,936)
Net assets
3,490,629
3,468,409
Capital and reserves
Called up share capital
21
313,200
313,200
Revaluation reserve
1,965,857
2,080,468
Profit and loss reserves
1,211,572
1,074,741
Total equity
3,490,629
3,468,409
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
Mrs T A Pritchard-Drummond
Director
Company registration number 06330138 (England and Wales)
JANCETT CHILDCARE & JACE TRAINING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
313,200
2,080,468
815,995
3,209,663
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
380,671
380,671
Dividends
10
-
-
(121,925)
(121,925)
Balance at 31 March 2023
313,200
2,080,468
1,074,741
3,468,409
Year ended 31 March 2024:
Profit
-
-
229,344
229,344
Other comprehensive income:
Tax relating to other comprehensive income
-
(114,611)
(114,611)
Total comprehensive income
-
(114,611)
229,344
114,733
Dividends
10
-
-
(92,513)
(92,513)
Balance at 31 March 2024
313,200
1,965,857
1,211,572
3,490,629
JANCETT CHILDCARE & JACE TRAINING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
401,859
468,817
Interest paid
(42,861)
(28,205)
Corporation tax paid
(99,577)
(126,377)
Net cash inflow from operating activities
259,421
314,235
Investing activities
Purchase of tangible fixed assets
(9,194)
(56,138)
Interest received
6,120
1,102
Net cash used in investing activities
(3,074)
(55,036)
Financing activities
Repayment of bank loans
(37,249)
(42,346)
Payment of finance leases obligations
(4,860)
(4,500)
Dividends paid
(92,513)
(121,925)
Net cash used in financing activities
(134,622)
(168,771)
Net increase in cash and cash equivalents
121,725
90,428
Cash and cash equivalents at beginning of year
947,925
857,497
Cash and cash equivalents at end of year
1,069,650
947,925
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information
Jancett Childcare & JACE Training Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 - 18 Stanley Park Road, Wallington, Surrey, United Kingdom, SM6 0EU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Revenues consist of nursery income and training in the field of education. Nursery fees are recognised as income over the period of attendance. Revenues received in advance are included in deferred income. Turnover in relation to the training through the apprenticeship route is recognised when the conditions for receipts have been met (i.e. there is entitlement to the funds, it is probable that the funds will be received, and the funds can be reliably measured). Income from full and part-time courses is recognised over the duration of the course.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 20 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.
1.5
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.
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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:
Land and buildings Freehold
Nil
Fixtures, fittings & equipment
25% reducing balance
Computer equipment
33.3% reducing balance
Motor vehicles
25% reducing balance
Freehold land and assets are not depreciated on the basis that repairs expenditure is incurred to maintain the condition of the asset. Which is at least equivalent to what depreciation would have been.
Although this accounting policy is in accordance with FRS 102, it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been changed cannot be separately identified or quantified.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss account in the period of disposal.
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value.
1.7
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.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include 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.
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.
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 company after deducting all of its liabilities.
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.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Nurseries income
2,993,826
3,287,640
Playschemes income
1,441,146
1,354,323
JACE Training income
2,027,015
1,903,019
6,461,987
6,544,982
2024
2023
£
£
Turnover analysed by geographical market
UK
6,461,987
6,544,982
2024
2023
£
£
Other revenue
Interest income
6,120
1,102
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,000
8,610
Depreciation of owned tangible fixed assets
40,350
41,986
Depreciation of tangible fixed assets held under finance leases
3,926
5,235
Loss on disposal of tangible fixed assets
1,814
-
Amortisation of intangible assets
75,000
75,000
Operating lease charges
76,122
77,724
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was 185 (2023- 183).
2024
2023
Number
Number
Nurseries
106
95
Playsafe
42
49
JACE Training
27
30
Administration and business support
10
9
185
183
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,428,729
3,326,052
Social security costs
256,799
253,913
Pension costs
224,830
215,141
3,910,358
3,795,106
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
103,680
98,337
Company pension contributions to defined contribution schemes
26,681
18,058
Compensation for loss of office
20,000
130,361
136,395
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 3).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
6,120
976
Other interest income
126
Total income
6,120
1,102
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
6,120
1,102
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
41,407
26,391
Other finance costs:
Interest on finance leases and hire purchase contracts
1,454
1,814
42,861
28,205
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
113,583
99,863
The main rate of UK Corporation Tax increased to 25% from 19% on 1 April 2023.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
342,927
480,534
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
85,732
91,301
Tax effect of expenses that are not deductible in determining taxable profit
19,314
14,553
Permanent capital allowances in excess of depreciation
(3,200)
Movement in deferred tax not recognised
8,537
(2,791)
Taxation charge for the year
113,583
99,863
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
114,611
-
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
10
Dividends
2024
2023
£
£
Interim paid
92,513
121,925
11
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
1,500,100
Amortisation and impairment
At 1 April 2023
750,000
Amortisation charged for the year
75,000
At 31 March 2024
825,000
Carrying amount
At 31 March 2024
675,100
At 31 March 2023
750,100
12
Tangible fixed assets
Land and buildings Freehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023
3,200,000
252,177
144,254
37,204
3,633,635
Additions
6,694
2,500
9,194
Disposals
(5,180)
(5,180)
At 31 March 2024
3,200,000
253,691
144,254
39,704
3,637,649
Depreciation and impairment
At 1 April 2023
155,297
98,403
23,323
277,023
Depreciation charged in the year
24,811
15,284
4,181
44,276
Eliminated in respect of disposals
(3,366)
(3,366)
At 31 March 2024
176,742
113,687
27,504
317,933
Carrying amount
At 31 March 2024
3,200,000
76,949
30,567
12,200
3,319,716
At 31 March 2023
3,200,000
96,880
45,851
13,881
3,356,612
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)
- 22 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
11,779
15,706
Freehold property with a historical cost of £749,467 is carried at a revalued amount of £3,200,000. The property's carrying value is tested annually for impairment.
13
Stocks
2024
2023
£
£
Toys and consumables
35,688
41,619
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
67,677
41,669
Other debtors
31,062
6,963
Prepayments and accrued income
169,191
130,755
267,930
179,387
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
38,000
42,000
Obligations under finance leases
18
16,195
4,860
Trade creditors
99,075
87,809
Corporation tax
113,907
99,901
Other taxation and social security
54,314
48,126
Deferred income
207,491
217,215
Other creditors
68,213
145,309
Accruals
269,940
216,861
867,135
862,081
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
532,773
566,022
Obligations under finance leases
18
16,195
532,773
582,217
The long term loan is secured by fixed and floating charges over 16 and 18 Stanley Park Road, Wallington, Surrey, SM6 0EU.
17
Loans and overdrafts
2024
2023
£
£
Bank loans
570,773
608,022
Payable within one year
38,000
42,000
Payable after one year
532,773
566,022
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Total liabilties
16,195
4,860
In two to five years
16,195
16,195
21,055
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Revaluation of property
477,547
362,936
2024
Movements in the year:
£
Liability at 1 April 2023
362,936
Effect of change in tax rate - other comprehensive income
114,611
Liability at 31 March 2024
477,547
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
224,830
215,141
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
40
40
40
40
Ordinary A shares of £1 each
40
40
40
40
Ordinary B shares of £1 each
40
40
40
40
Ordinary C shares of £1 each
40
40
40
40
Ordinary D shares of £1 each
40
40
40
40
200
200
200
200
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Share capital
(Continued)
- 25 -
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
313,000
313,000
313,000
313,000
Preference shares classified as equity
313,000
313,000
Total equity share capital
313,200
313,200
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
30,726
39,877
Between two and five years
20,583
27,990
51,309
67,867
23
Related party transactions
Included in other creditors is amount of £6,845 (2023: £12,030) due to the directors.
JANCETT CHILDCARE & JACE TRAINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
229,344
380,671
Adjustments for:
Taxation charged
113,583
99,863
Finance costs
42,861
28,205
Investment income
(6,120)
(1,102)
Loss on disposal of tangible fixed assets
1,814
-
Amortisation and impairment of intangible assets
75,000
75,000
Depreciation and impairment of tangible fixed assets
44,276
47,221
Movements in working capital:
Decrease/(increase) in stocks
5,931
(9,402)
Increase in debtors
(88,543)
(20,962)
Decrease in creditors
(6,563)
(95,857)
Decrease in deferred income
(9,724)
(34,820)
Cash generated from operations
401,859
468,817
25
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
947,925
121,725
1,069,650
Borrowings excluding overdrafts
(608,022)
37,249
(570,773)
Obligations under finance leases
(21,055)
4,860
(16,195)
318,848
163,834
482,682
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