Company registration number 06911368 (England and Wales)
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
COMPANY INFORMATION
Director
Mr S Rai
Secretary
Mr D Kaplan
Ms S L Wilkinson
Company number
06911368
Registered office
3rd Floor
Butt Dyke House
33 Park Row
Nottingham
NG1 6EE
Auditor
HSKSG Audit Limited
3rd Floor
Butt Dyke House
33 Park Row
Nottingham
NG1 6EE
Business address
Epinal Way Care Centre
Hospital Way
Loughborough
Leicestershire
LE11 3GD
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -
The director presents the strategic report for the year ended 30 November 2023.
Review of the business
During the period ended 30 November 2023 the school continued to provide day care for children and young people with a primary diagnosis of High Functioning Autism.
During this year the school succeeded in increasing its excellent occupancy levels with average occupancy levels being raised to 93%. The acute level of care required makes this a challenging but very rewarding site to manage. Fee levels are around £7.6m and the company has increased its positive reserves. Commissioners have changed the care model for its service users and the home continues to perform well within that model with the latest Ofsted report in July 2023 rating the service as Outstanding.
Wages have increased slightly compared to the previous year however the ratio to fees has increased slightly to 44% (2022: 40%).
The positive trading results have meant that cashflow continues to be strong. The school performance continues to improve and work has continued on a Hydrotherapy Suite to increase the facilities offered to pupils. This is expected to be completed in September 2024.
Principal risks and uncertainties
The market for provision of education for children on the Autistic spectrum seems to be expanding with new facilities opening both locally to high Grange School and on a national level.
The additional competition whilst a possible risk shows the true potential in the sector with more and more success stories from Specialist Schools seeing placements in the sector increase.
Referral levels have remained strong with occupancy remaining high and is expected to remain at this level.
Development and performance
The company continues to provide regular training for staff to maintain the high levels of tuition expected.
Pipelines remain strong for future placements leaving the future looking bright for growth in the coming years.
Key performance indicators
Wages percentage, like all operations within the group, is a key statistic and this has been seen to fall slightly during 2023.
EBITDA is also closely monitored with key importance put on cash generation.
These KPI's are monitored on a monthly basis and benchmarked against the sector as a whole.
Other performance indicators
The company continues to benchmark internal performance against grading systems used by Ofsted to ensure the quality is maintained and currently has a good rating.
Mr S Rai
Director
22 November 2024
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
The director presents his annual report and financial statements for the year ended 30 November 2023.
Principal activities
The principal activity of the company continued to be that of the provision of learning facilities for children with Autistic Spectrum Disorder.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr S Rai
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
On behalf of the board
Mr S Rai
Director
22 November 2024
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
- 4 -
Opinion
We have audited the financial statements of Rushcliffe Specialist Schools (Mickleover) Limited (the 'company') for the year ended 30 November 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 November 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We considered the nature of the company's business and its control environment. We also enquired of management about their identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework in which the company operates and identified key laws and regulations that:
- Had a direct effect on the determination of material amounts and disclosures in the financial statements, which included the Companies Act 2006, tax legislation and payroll legislation; and
- Did not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate.
We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how / where fraud might occur in the financial statements.
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED (CONTINUED)
- 6 -
In common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of accounting adjustments and journal entries, assessed whether accounting estimates were reasonable and accurate and reviewed the accounting records for any significant or unusual transactions.
In addition, our procedures to respond to the risks identified included:
- Reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements;
- Performing analytical procedures to identify any unusual or unexpected variances that may indicate risks of material misstatement due to fraud;
- Enquiring of management about any instances of non-compliance with laws and regulations and any instances of known or suspected fraud; and
- Reviewing the latest available Ofsted inspection reports for the school operated by the company.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment forgery, collusion, omission or misrepresentation.
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.
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Philip Handley FCA
Senior Statutory Auditor
For and on behalf of HSKSG Audit Limited
26 November 2024
Chartered Accountants
Statutory Auditor
3rd Floor
Butt Dyke House
33 Park Row
Nottingham
NG1 6EE
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
7,659,948
6,932,250
Cost of sales
(3,752,849)
(3,283,384)
Gross profit
3,907,099
3,648,866
Administrative expenses
(1,405,863)
(1,124,627)
Operating profit
4
2,501,236
2,524,239
Interest receivable and similar income
6
14,983
Interest payable and similar expenses
7
(304)
Profit before taxation
2,515,915
2,524,239
Tax on profit
8
(498,589)
(504,226)
Profit for the financial year
2,017,326
2,020,013
The income statement has been prepared on the basis that all operations are continuing operations.
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
2,017,326
2,020,013
Other comprehensive income
-
-
Total comprehensive income for the year
2,017,326
2,020,013
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
10,608,549
10,271,662
Current assets
Debtors
10
3,405,471
3,475,929
Cash at bank and in hand
3,287,815
1,179,813
6,693,286
4,655,742
Creditors: amounts falling due within one year
11
(8,611,426)
(8,252,679)
Net current liabilities
(1,918,140)
(3,596,937)
Total assets less current liabilities
8,690,409
6,674,725
Provisions for liabilities
Deferred tax liability
12
304,057
305,699
(304,057)
(305,699)
Net assets
8,386,352
6,369,026
Capital and reserves
Called up share capital
14
200
200
Profit and loss reserves
8,386,152
6,368,826
Total equity
8,386,352
6,369,026
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 22 November 2024
Mr S Rai
Director
Company registration number 06911368 (England and Wales)
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 December 2021
200
4,348,813
4,349,013
Year ended 30 November 2022:
Profit and total comprehensive income
-
2,020,013
2,020,013
Balance at 30 November 2022
200
6,368,826
6,369,026
Year ended 30 November 2023:
Profit and total comprehensive income
-
2,017,326
2,017,326
Balance at 30 November 2023
200
8,386,152
8,386,352
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
1
Accounting policies
Company information
Rushcliffe Specialist Schools (Mickleover) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, Butt Dyke House, 33 Park Row, Nottingham, NG1 6EE.
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 certain items at fair value, as disclosed in the relevant accounting policy. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Rushcliffe Care Holdings Limited. These consolidated financial statements are available from Companies House.
1.2
Going concern
The company has made a profit on ordinary activities before taxation of £2,5true15,915 (2022: £2,524,239). The statement of financial position details net current liabilities of £1,918,140 (2022: £3,596,937) and net assets of £8,386,352 (2022: £6,369,026). The parent company, Rushcliffe Care Group Limited, has confirmed that it will provide the company with adequate cash resources to finance its trading and other obligations during the course of the twelve months from the date of approval of the financial statements.
The parent company meets its day to day working capital requirements through an overdraft facility, which is payable on demand.
Given the above and that the other companies within the group continue to make significant profits, it is on this basis that the director considers that the company will have sufficient cash resources available to fund its activities and other obligations during the course of the twelve months from the date of approval of the financial statements and it is therefore appropriate for the financial statements to be prepared on the going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for learning facilities provided to pupils in the year, and is shown gross.
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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:
Freehold land and buildings
2% on straight line
Fixtures and fittings
15% on reducing balance
Computers
15% on reducing balance
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
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.
1.6
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 statement of financial position 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
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.
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
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.
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
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.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Services provided
7,659,948
6,932,250
2023
2022
£
£
Other revenue
Interest income
14,983
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,944
6,139
Depreciation of owned tangible fixed assets
235,878
243,177
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Teaching staff
86
84
Care and administration staff
25
26
Total
111
110
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,909,803
2,543,647
Social security costs
275,351
222,024
Pension costs
173,687
105,916
3,358,841
2,871,587
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
14,983
7
Interest payable and similar expenses
2023
2022
£
£
Other interest
304
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
500,231
501,114
Deferred tax
Origination and reversal of timing differences
(1,642)
3,112
Total tax charge
498,589
504,226
The main rate of corporation tax was 19% up to 31 March 2023 and 25% thereafter, which has resulted in an effective tax rate of 23.01% for the year ended 30 November 2023.
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
8
Taxation
(Continued)
- 17 -
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:
2023
2022
£
£
Profit before taxation
2,515,915
2,524,239
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
578,936
479,605
Tax effect of expenses that are not deductible in determining taxable profit
991
Change in unrecognised deferred tax assets
(1,642)
3,112
Effect of change in corporation tax rate
(747)
Group relief
(113,045)
Permanent capital allowances in excess of depreciation
1,282
22,256
Depreciation on assets not qualifying for tax allowances
32,067
Taxation charge for the year
498,589
504,226
9
Tangible fixed assets
Freehold land and buildings
Assets under construction
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 December 2022
11,842,943
129,803
493,919
274,425
213,405
12,954,495
Additions
538,392
16,274
10,599
7,500
572,765
At 30 November 2023
11,842,943
668,195
510,193
285,024
220,905
13,527,260
Depreciation and impairment
At 1 December 2022
1,996,533
342,897
182,168
161,235
2,682,833
Depreciation charged in the year
182,781
23,318
15,019
14,760
235,878
At 30 November 2023
2,179,314
366,215
197,187
175,995
2,918,711
Carrying amount
At 30 November 2023
9,663,629
668,195
143,978
87,837
44,910
10,608,549
At 30 November 2022
9,846,410
129,803
151,022
92,257
52,170
10,271,662
Freehold land and buildings with a carrying amount of £10,331,824 (2022 - £9,976,213) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
Included within freehold land and buildings is non-depreciable land of £2,704,000 (2022 - £2,704,000).
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,118,738
3,230,585
Corporation tax recoverable
15,569
Other debtors
2,986
3,486
Prepayments and accrued income
268,178
241,858
3,405,471
3,475,929
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
104,646
114,063
Amounts owed to group undertakings
4,280,965
4,227,130
Corporation tax
4,231
250,214
Other taxation and social security
117,736
33,541
Other creditors
498,058
269,838
Accruals and deferred income
3,605,790
3,357,893
8,611,426
8,252,679
Lloyds Bank plc holds a debenture and mortgage over the assets of the company. In addition Lloyds Bank plc hold in their favour an omnibus guarantee and set-off agreement for the company and for other companies within the group.
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
304,057
305,699
2023
Movements in the year:
£
Liability at 1 December 2022
305,699
Credit to profit or loss
(1,642)
Liability at 30 November 2023
304,057
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
12
Deferred taxation
(Continued)
- 19 -
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,481
39,535
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. At the year end £8,412 (2022 overpaid: £17,195) was outstanding in respect of contributions to this scheme.
Teachers' Pensions Scheme
The TPS is an unfunded multi-employer defined benefits scheme governed by the Teachers' Pensions Regulations 2022. Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The employer contribution rate is set following scheme valuations undertaken by the Government Actuary's Department. The latest actuarial valuation of the TPS was prepared as at 31 March 2020 and the valuation report, which was published in October 2023, confirmed an employer contribution rate for the TPS of 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%, having previously been 23.68% during the year.
This employer rate will be payable until the outcome of the next actuarial valuation which is due to be prepared as at 31 March 2024, with any resulting changes to the employer rate expected to take effect from 1 April 2027. This valuation will also determine the opening balance of the cost cap fund and provide an analysis of the cost cap as required by the Public Service Pensions Act 2022.
The pension charge for the year includes £123,206 (2022: £66,381) in respect of contributions . At the year end £0 (2022: £0) was due in respect of contributions to this scheme.
14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
15
Operating lease commitments
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:
2023
2022
£
£
Within one year
907
RUSHCLIFFE SPECIALIST SCHOOLS (MICKLEOVER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
16
Ultimate controlling party
The immediate parent undertaking is Rushcliffe Specialist Schools Limited by virtue of its majority shareholdings of the issued ordinary share capital. The registered office is 3rd Floor, Butt Dyke House, 33 Park Row, Nottingham, NG1 6EE.
The ultimate controlling party is the director, S Rai, by virtue of their majority shareholding in Rushcliffe Care Holdings Limited, the ultimate parent company.
Copies of the group accounts for Rushcliffe Care Holdings Limited are available from Companies House, This is the only group that the company is consolidated into for the year.
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