London School Of Business & Finance (UK) Limited
Financial Statements
For the year ended 31 July 2023
Pages for Filing with Registrar
Company Registration No. 04977611 (England and Wales)
London School of Business & Finance (UK) Limited
London School Of Business & Finance (UK) Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 12
London School Of Business & Finance (UK) Limited
Balance Sheet
As at 31 July 2023
Page 1
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,461,689
1,535,977
Investments
6
106,970
-
0
1,568,659
1,535,977
Current assets
Debtors
8
14,342,400
14,189,023
Cash at bank and in hand
6,100,402
7,651,867
20,442,802
21,840,890
Creditors: amounts falling due within one year
9
(16,811,729)
(14,222,422)
Net current assets
3,631,073
7,618,468
Total assets less current liabilities
5,199,732
9,154,445
Creditors: amounts falling due after more than one year
10
(1,618,131)
(2,462,576)
Provisions for liabilities
11
(1,715,850)
(1,787,636)
Net assets
1,865,751
4,904,233
Reserves
Other reserves
5,400,000
5,400,000
Income and expenditure account
(3,534,249)
(495,767)
Members' funds
1,865,751
4,904,233

The director of the company has elected not to include a copy of the income and expenditure account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 13 November 2024 and are signed on its behalf by:
Dr A  Etingen
Director
Company Registration No. 04977611
London School Of Business & Finance (UK) Limited
Notes to the Financial Statements
For the year ended 31 July 2023
Page 2
1
Accounting policies
Company information

London School of Business & Finance (UK) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Buchanan House, 30 Holborn, London, EC1N 2HS.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

A prior year adjustment has been processed which has been outlined in note 18.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

The sole member of London School of Business & Finance (UK) Limited, a company limited by guarantee, is Global University Systems B.V. which is a wholly owned subsidiary of Global University Systems Holdings B.V.

 

The results of London School of Business & Finance (UK) Limited are included in the consolidated financial statemerts of Global University Systems Holding B.V. which are available from Passeerdersgracht 23, 1016 XG, Amsterdam, the Netherlands.

1.2
Going concern

The financial statements have been prepared on a going concern basis which the Directors believe to be appropriate for the following reason. The company is reliant on the support of other group companies as a result of the way that the group is financed. Global University Systems Holding B.V. has agreed to continue to provide financial and other support to the company for the foreseeable future to enable it to continue to trade.true

 

As a result, having assessed the response of the directors of Global University Systems Holding B.V., in light of its support and on the basis of their assessment of the company's financial position and Global University Systems Holding B.V.'s financial position, the Directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future and continue to adopt the going concern basis of accounting in preparing the financial statements.

London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
1
Accounting policies
(Continued)
Page 3
1.3
Income and expenditure

Revenue represents fees receivable for the provision of tuition and student services. Revenue is recognised on the basis of the estimated timing of delivery of the courses and the provision of student services. For certain courses delivery can vary on a student by student basis and therefore an estimation of the timing of the delivery is made on a course by course basis. Revenue in respect of student services is recognised on invoice.

 

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the balance sheet date. Deferred income represents amounts invoiced for which the service will be provided in future periods. Revenue is only recognised when the company has performed all of its required obligations and when all the following conditions are satisfied: the revenue can be measured reliably; it is possible that the economic benefits will flow to the company; the state of completion at the balance sheet date can be measure reliably; and the cost relating to the transaction can be measured reliably.

 

Other operating income represents rentals arising from the provision of space, and the provision of consultancy services, to companies in the Global University Systems group.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Straight line over lesser of 5 years and the remaining life of the lease
Fixtures, fittings & equipment
5 years straight line
Computer equipment
3 years straight line

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 surplus or deficit.

1.5
Fixed asset investments

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

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
1
Accounting policies
(Continued)
Page 4

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 surplus or deficit, 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 surplus or deficit, 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.

1.7
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.

Other financial assets

The company does not enter into any transactions that can be classified as other financial assets, including equity instruments which are not subsidiaries, associates or joint ventures.

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.

London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
1
Accounting policies
(Continued)
Page 5
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
Taxation

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

 

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 income statement, except when it relates to items charged or credited directly to equity. in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in surplus or deficit in the period in which it arises.

London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
1
Accounting policies
(Continued)
Page 6
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.

 

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.14
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to income and expenditure account.

1.15

Other reserves

In 2014 the company issued £5.4m of perpetual irredeemable bonds on which interest has been waived by the bondholder in perpetuity. The company accounts for such instruments by reference to their substance which is to present the bonds as an equity reserve since the company has no liability to capital or interest.

London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
Page 7
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of debtors

The Directors make an estimate of the recoverable amount of trade debtors at each reporting date. When assessing potential impairment of trade debtors, management considers a range of factors including the current and forecast economic conditions, industry-specific factors, and historical and anticipated cash collections. Changes in the economic, industry, or specific customer conditions may require further adjustment to the provision recorded in the financial statements.

 

Similar factors are taken into account when assessing the recoverability of intercompany balances. The existence of guarantees provided by other group companies are also taken into consideration when assessing the expected recoverable amount on such receivable balances.

Dilapidation obligations

The company is subject to obligations, under an operating lease, to maintain leasehold properties to an agreed standard and remove any alterations made to the property prior to the termination of the lease. In estimating the necessary provision, management review of range of data sources including estimates prepared by surveyors for other similar properties owned in the group, actual payments on properties previously occupied, industry benchmarks and inflation and interest rate data and forecasts. The directors recognise a provision for such obligations based on the assessment of each of these factors.

3
Employees

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

2023
2022
Number
Number
Total
11
12
London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
Page 8
4
Director's remuneration
2023
2022
£
£
Remuneration paid to directors
800,323
-
0
5
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 August 2022
1,613,625
2,688
795,076
2,411,389
Additions
44,120
-
0
-
0
44,120
At 31 July 2023
1,657,745
2,688
795,076
2,455,509
Depreciation and impairment
At 1 August 2022
160,566
2,240
712,606
875,412
Depreciation charged in the year
80,283
448
37,677
118,408
At 31 July 2023
240,849
2,688
750,283
993,820
Carrying amount
At 31 July 2023
1,416,896
-
0
44,793
1,461,689
At 31 July 2022
1,453,059
448
82,470
1,535,977
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
106,970
-
0
London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
6
Fixed asset investments
(Continued)
Page 9
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 August 2022
-
Additions
106,970
At 31 July 2023
106,970
Carrying amount
At 31 July 2023
106,970
At 31 July 2022
-
7
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Time Institute Limited
Malta
Ordinary
100
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade Debtors
61,988
3,426
Corporation tax recoverable
-
0
3,899
Amounts owed by group undertakings
12,470,073
12,468,000
Prepayments and accrued income
1,810,339
1,713,698
14,342,400
14,189,023
London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
Page 10
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,473,906
1,486,813
Amounts owed to group undertakings
6,071,855
4,088,589
Taxation and social security
479,157
270,070
Other creditors
8,786,811
8,376,950
16,811,729
14,222,422
10
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
1,618,131
2,462,576
11
Provisions for liabilities
2023
2022
£
£
Dilapidation provision
1,715,850
1,787,636
12
Members' liability

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

13
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Shivani Kothari
Statutory Auditor:
Moore Kingston Smith LLP
London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
Page 11
14
Financial commitments, guarantees and contingent liabilities

The Company, along with certain other group companies, is named as a guarantor for a lease held by Interactive Pro Limited, a company in the Global University Systems group. The Company guarantees to pay any rents and make good to the landlord on a full indemnity basis all losses, costs, damages and expenses in case of any default by the lessee. The maximum rent payable under the guarantee, if triggered, is estimated as £9.6m. The Directors consider that no material exposure arises as a result of issuing this guarantee.

 

At the year end, certain of the company's assets were subject to a fixed charge in favour of external parties.

15
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
36,285,468
49,681,338
16
Contingent liabilities

In 2018 HMRC opened an enquiry into historic VAT treatments applied by certain entities in the Global University Systems group, including London School of Business & Finance Limited. The Board are of the view that directives relating to the application of VAT as it applies to education services is open to varying interpretations by HMRC, tax tribunals and courts. As at the year end, appeals were continuing and so no final resolution had been reached in respect of the enquiry. Therefore the Directors consider the outcome of the enquiry, which could include interest and penalties in addition to any assessed VAT liability, to be uncertain.

17
Events after the reporting date

During the year end, HMRC closed enquiries into certain company's tax filings in respect of earlier accounting periods, resulting in the payment of additional taxes of £238,777. The crystallisation of potential associated penalties is uncertain.

 

The directors are of the opinion that there were no other significant adjusting or non-adjusting events occurring after the reporting date.

18
Related party transactions

The company has taken advantage of the exemption allowed in FRS 102 and has not disclosed details of related party transactions with 100% owned entities within the group.

London School Of Business & Finance (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2023
Page 12
19
Parent company

The immediate parent undertaking is Global University Systems Holding B.V., a company incorporated in The Netherlands.

 

The ultimate controlling party is The Heritage Trust, registered in Guernsey.

 

The smallest group into which the entity is consolidated is Global University Systems Holding B.V., a company registered in The Netherlands. The largest group into which the entity is consolidated is Academic Bridge B.V. The registered office of both parent companies is Passeerdersgracht 23, 1016 XG, Amsterdam, the Netherlands.

20
Prior year adjustment
Changes to balance sheet
31 July 2022
31 July 2022
Signed accounts
Restatement
restated balance
£
£
£
Other creditors less than 1 year
(1,336,943)
49,034
(1,287,909)
Other creditors greater than 1 year
(2,059,440)
(392,274)
(2,451,714)
Retained earnings
152,525
343,240
495,765
Changes to profit and loss
31 July 2022
31 July 2022
Signed accounts
Restatement
restated balance
£
£
£
Income
1,289,377
(49,034)
1,240,343
A prior year adjustment has been processed to correct the value of the deferred income for the prior year. Retained earnings, deferred income and the revenue account have all been restated accordingly.
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