CAPA The Global Education Network Limited
Annual Report and Financial Statements
For the year ended 26 April 2024
Company Registration No. 08352002 (England and Wales)
CAPA the Global Education Network Limited
CAPA The Global Education Network Limited
Company Information
Directors
C Harned
(Appointed 30 November 2023)
J Spitzer
(Appointed 23 July 2024)
Company number
08352002
Registered office
2 New Bailey
6 Stanley Street
Salford
Greater Manchester
M3 5GS
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
CAPA the Global Education Network Limited
CAPA The Global Education Network Limited
Contents
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 14
CAPA The Global Education Network Limited
Directors' Report
For the year ended 26 April 2024
Page 1

The directors present their annual report and financial statements for the year ended 26 April 2024.

Principal activities

The principal activity of the company continued to be that of providing education to foreign university students.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Christian
(Resigned 15 May 2023)
C Colon
(Resigned 15 May 2023)
S Finch
(Appointed 15 May 2023 and resigned 23 July 2024)
K Cohen
(Appointed 15 May 2023 and resigned 30 November 2023)
C Harned
(Appointed 30 November 2023)
A Knappich
(Appointed 30 November 2023 and resigned 29 April 2024)
C Kench
(Appointed 15 May 2023 and resigned 30 November 2023)
J Spitzer
(Appointed 23 July 2024)
Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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:

 

 

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.

CAPA The Global Education Network Limited
Directors' Report (Continued)
For the year ended 26 April 2024
Page 2
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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
J Spitzer
Director
27 January 2025
CAPA The Global Education Network Limited
Independent Auditor's Report
To the Members of CAPA The Global Education Network Limited
Page 3
Opinion

We have audited the financial statements of CAPA the Global Education Network Limited (the 'company') for the year ended 26 April 2024 which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Other information

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

CAPA The Global Education Network Limited
Independent Auditor's Report (Continued)
To the Members of CAPA The Global Education Network Limited
Page 4

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

 

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.

CAPA The Global Education Network Limited
Independent Auditor's Report (Continued)
To the Members of CAPA The Global Education Network Limited
Page 5
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

CAPA The Global Education Network Limited
Independent Auditor's Report (Continued)
To the Members of CAPA The Global Education Network Limited
Page 6

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

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 misrepresentations, or through collusion.

Use of our report

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

Rebecca Shields
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
30 January 2025
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
CAPA The Global Education Network Limited
Statement of Income and Retained Earnings
For the year ended 26 April 2024
Page 7
2024
2023
Notes
$
$
Turnover
9,433,886
8,464,305
Cost of sales
(5,952,686)
(4,802,872)
Gross profit
3,481,200
3,661,433
Administrative expenses
(3,806,149)
(3,511,160)
Other operating income
65
261
Operating (loss)/profit
(324,884)
150,534
Interest payable and similar expenses
(3,472)
(1,898)
(Loss)/profit before taxation
(328,356)
148,636
Taxation
-
0
3,778
Total profit and comprehensive income for the year
(328,356)
152,414
Retained earnings at 1 May 2023
(4,979,689)
(5,132,103)
Retained earnings at 26 April 2024
(5,308,045)
(4,979,689)
CAPA The Global Education Network Limited
Balance Sheet
As at 26 April 2024
Page 8
2024
2023
Notes
$
$
$
$
Fixed assets
Tangible assets
4
280,325
172,242
Current assets
Debtors
5
1,035,973
1,892,836
Cash at bank and in hand
2,293
-
0
1,038,266
1,892,836
Creditors: amounts falling due within one year
6
(6,626,635)
(7,044,766)
Net current liabilities
(5,588,369)
(5,151,930)
Net liabilities
(5,308,044)
(4,979,688)
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
(5,308,045)
(4,979,689)
Total equity
(5,308,044)
(4,979,688)

These financial statements have been prepared 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 27 January 2025 and are signed on its behalf by:
J Spitzer
Director
Company Registration No. 08352002
CAPA The Global Education Network Limited
Notes to the Financial Statements
For the year ended 26 April 2024
Page 9
1
Accounting policies
Company information

CAPA the Global Education Network Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 New Bailey, 6 Stanley Street, Salford, Greater Manchester, M3 5GS.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of 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 financial statements are prepared in US Dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest dollar.

The financial statements have been prepared under the historical cost convention. 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:

 

 

The financial statements of the company are consolidated in the financial statements of Educations Abroad Holdings. these consolidated financial statements are available from its registered office 2 New Bailey, 6 Stanley Street, Salford, Greater Manchester, M3 5GS.

1.2
Going concern

At 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. The company has a service agreement in place with Cultural Experiences Abroad LLC (the parent company of its parent company) that is expected to return the company to profitability.

 

The directors have also received written guarantees from the directors of Cultural Experiences Abroad LLC that they will not seek repayment of amounts owing to them totalling $5,756,935, until the company has sufficient resources to do so. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

CAPA The Global Education Network Limited
Notes to the Financial Statements (Continued)
For the year ended 26 April 2024
1
Accounting policies
(Continued)
Page 10
1.3
Turnover

Turnover represents amounts receivable for the provision of services to Cultural Experiences Abroad, LLC, a company domiciled in the US.

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
over the life of the lease
Fixtures, fittings & equipment
over 10 years on a straight line basis
Computer equipment
over 3 years on a straight line basis
1.5
Impairment of fixed assets

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

1.6
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.

1.7
Financial instruments

The Company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.

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 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.

CAPA The Global Education Network Limited
Notes to the Financial Statements (Continued)
For the year ended 26 April 2024
1
Accounting policies
(Continued)
Page 11
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.

1.11
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.

1.12
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 profit and loss account.

2
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
$
$
For audit services
Audit of the financial statements of the company
47,170
54,040
3
Employees
The average number of persons (including directors) employed by the company during the year was 27 (2023: 24).
2024
2023
Number
Number
Total
27
24
CAPA The Global Education Network Limited
Notes to the Financial Statements (Continued)
For the year ended 26 April 2024
Page 12
4
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Total
$
$
$
$
Cost
At 1 May 2023
117,759
169,657
307,760
595,176
Additions
126,476
-
0
-
0
126,476
Disposals
-
0
(151,664)
(265,773)
(417,437)
At 26 April 2024
244,235
17,993
41,987
304,215
Depreciation and impairment
At 1 May 2023
12,016
154,264
256,654
422,934
Depreciation charged in the year
122
-
0
-
0
122
Eliminated in respect of disposals
-
0
(153,318)
(245,848)
(399,166)
At 26 April 2024
12,138
946
10,806
23,890
Carrying amount
At 26 April 2024
232,097
17,047
31,181
280,325
At 26 April 2023
105,743
15,393
51,106
172,242
5
Debtors
2024
2023
Amounts falling due within one year:
$
$
Trade debtors
-
0
56,710
Other debtors
170,904
452,320
Prepayments and accrued income
865,069
1,383,806
1,035,973
1,892,836
CAPA The Global Education Network Limited
Notes to the Financial Statements (Continued)
For the year ended 26 April 2024
Page 13
6
Creditors: amounts falling due within one year
2024
2023
$
$
Bank loans and overdrafts
-
0
1
Trade creditors
454,308
517,076
Amounts owed to group undertakings
5,991,001
6,098,149
Corporation tax
-
0
73,892
Other creditors
56,098
250,932
Accruals and deferred income
125,228
104,716
6,626,635
7,044,766
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary share of $1 each
1
1
1
1
8
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:

2024
2023
$
$
2,631,267
2,986,027
CAPA The Global Education Network Limited
Notes to the Financial Statements (Continued)
For the year ended 26 April 2024
Page 14
9
Controlling party

The controlling party is Education Abroad Holdings Ltd by virtue of it's majority shareholding. The ultimate controlling party is J Hegenbart b virtue of his ability to appoint and remove directors.

10
Related party transactions

The company has taken advantage of the exemption from disclosing transactions with members within a wholly owned group.

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