Company No:
Contents
The directors present their annual report and the unaudited financial statements of the Company for the financial year ended 31 August 2024.
PRINCIPAL ACTIVITIES
GOING CONCERN
The company operates four nurseries in Devon. There is a unified brand identity and operating procedures. However, each nursery has its own personality, reflecting that of its location and staff team. The size of each nursery is set to be of a scale that can still feel intimate and domestic for the children and parents using our services.
The primary mission of the company is to provide high quality and affordable childcare and early years education for children from the age of 3 months through to school age. We support working families and as such the nurseries are, in effect, open five days per week for 51 weeks of the year closing only for Christmas week and on national Bank Holidays.
The nurseries operated slightly ahead of plan for the year with sound overall financial performance. The opportunity was taken to refresh a number of areas within the nurseries including outside play spaces, IT equipment, toys and furniture. Overall each nursery is well placed in the short term. Staff have been protected from the worst effects of the recent spike in inflation through progressive pay awards. Fee increases for parents have also been smoothed downwards. There is now clear evidence that the economic disruption associated with that period is settling down although one or two suppliers have tested our patience. We expect normal operating margins to have been restored in the year ahead.
All of the nurseries are due an Ofsted inspection in the coming year and much of recent management time has been spent preparing staff for these visits.
The company acquired additional premises towards the end of the financial year under review with a new nursery called ‘Adventurers’ being readied for opening on 2 January 2025. This nursery is very well located in Exeter and the quality of the new property is exceptional. We have high hopes that the new nursery will take its place alongside our most successful settings thereby adding to the strength of the company. Other opportunities are being explored as we look to expand the nursery grouping towards our longer term objectives.
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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Approved by the Board of Directors and signed on its behalf by:
J R Middleton
Director |
Note | 2024 | 2023 | ||
£ | £ | |||
Fixed assets | ||||
Tangible assets | 3 |
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322,512 | 98,990 | |||
Current assets | ||||
Debtors | 4 |
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Investments |
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Cash at bank and in hand |
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110,685 | 237,808 | |||
Creditors: amounts falling due within one year | 5 | (
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Net current liabilities | (129,762) | (12,352) | ||
Total assets less current liabilities | 192,750 | 86,638 | ||
Creditors: amounts falling due after more than one year | 6 | (
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Provision for liabilities |
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Net assets |
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Capital and reserves | ||||
Called-up share capital |
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Profit and loss account |
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Total shareholders' funds |
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Directors' responsibilities:
These financial statements have been prepared in accordance with the provisions of FRS 102 Section 1A – small entities. The financial statements of Devon Nurseries Limited (registered number:
J R Middleton
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Devon Nurseries Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is St Peter’S Preparatory School, Harefield, Lympstone, EX8 5AU, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Group accounts exemption s399
The Company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the Company as an individual entity and not about its group.
Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply when the timing differences reverse. Deferred tax assets and liabilities are not discounted.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit. Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.
Land and buildings | depreciated over the life of the lease |
Vehicles |
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Fixtures and fittings |
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Computer equipment |
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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.
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
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.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in other operating income over the period in which the related costs are recognised, and timing differences are presented as other debtors or deferred income within the balance sheet. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
2024 | 2023 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year, including directors |
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Land and buildings | Vehicles | Fixtures and fittings | Computer equipment | Total | |||||
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Cost | |||||||||
At 01 September 2023 |
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Additions |
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At 31 August 2024 |
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Accumulated depreciation | |||||||||
At 01 September 2023 |
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Charge for the financial year |
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At 31 August 2024 |
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Net book value | |||||||||
At 31 August 2024 |
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At 31 August 2023 |
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£ | £ | ||
Trade debtors |
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Amounts owed by Group undertakings |
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Other debtors |
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£ | £ | ||
Trade creditors |
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Amounts owed to Group undertakings |
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Taxation and social security |
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Other creditors |
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2024 | 2023 | ||
£ | £ | ||
Other creditors |
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