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Registered number: 08713949









LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
COMPANY INFORMATION


Directors
M Lancaster 
S Lancaster 




Registered number
08713949



Registered office
29 Beckenham Road
Beckenham

Kent
England

BR3 4PR




Independent auditors
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor

Leytonstone House

3 Hanbury Drive

Leytonstone

London

E11 1GA





 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Consolidated statement of income and retained earnings
 
9
Consolidated balance sheet
 
10 - 11
Company balance sheet
 
12 - 13
Consolidated statement of changes in equity
 
14
Company statement of changes in equity
 
15
Consolidated statement of cash flows
 
16
Consolidated analysis of net debt
 
17
Notes to the financial statements
 
18 - 38


 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The Group's principal activity during the year was that of childcare services. It also owns property which it uses for business purposes.
The principal activity of Little Elms Daycare Nurseries Property Holding Company Limited is that of holding of investments in subsidiaries, and property investment.
The principal activities of Little Elms Daycare Nursery Limited, Little Elms Daycare Nursery Peninsula Limited, Little Elms Daycare Nursery Sydenham Limited, Little Elms Daycare Nursery Beckenham Limited, Little Elms Daycare Nursery Catford Green Limited, and Little Elms Daycare Nursery Crofton Limited during the year was that of childcare services.
The principal activity of Little Elms Daycare Nursery Property Holding Company Bromley Limited
is that of property investment.

Business review
 
The director aims to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business. The director considers the key financial performance indicators to be net profit and net assets. Net profit provides a good measure of the performance of the company, whilst net assets demonstrate the financial strength of the company.
During the year, turnover has increased by 5.7%, gross profit margin has decreased to 46.7% from 47.9% in the prior year. Net profits before tax and fair value movements have decreased to £391,420 
(2023 - £943,903). The decreases have been driven by increases caused by general inflationary pressures impacting the industry. The directors are satisfied with the results for the year.
The financial position of the company continues to be strong at the year end with a healthy cash balance of £870k, while net assets remain in excess of £4,728k.
.
The Board are confident in its assessment of going concern, and have put measures in place to protect their staff and continue to operate as normal in the period ahead.

Principal risks and uncertainties
 
The management of the business is subject to a number of risks. The key business risks and uncertainties areconsidered to relate to the current economic climate.
The company operates in a sophisticated market and its performance is related to ensuring it provides a high quality of childcare to satisfy all of its customers requirements.

Credit risk
 
The company regularly reviews its exposure to credit risk. Management closely monitor outstanding debts andand make provisions in the accounts for customers considered to be at risk of non-payment.

Liquidity risk
 
The cash balance at the year end was £870k which provides the company with adequate working capital. The directors recognise the importance of funding and liquidity under the current economic climate and will continue to monitor the company's financial resources to ensure that the company is able to support its activities and future growth.

Page 1

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Interest rate and cash flow risk

The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which attract interest at the prevailing market rate. Interest bearing liabilities include bank loans and obligations under finance lease and hire purchase contracts which attract interest at fixed rates.


This report was approved by the board on 22 February 2025 and signed on its behalf.



M Lancaster
Director

Page 2

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,951,797 (2023 - £754,405).

During the year, the directors declared dividends of £Nil (2023 - £731,000).

Directors

The directors who served during the year were:

M Lancaster 
S Lancaster 

Future developments

Looking ahead, the company's business environment is expected to remain challenging but promising. The directors consider that the company's strong financial position should provide a platform which is conducive to capitalising on both current and future opportunities.

Page 3

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

Berringers LLP resigned as the auditor during the year and Barnes Roffe LLP were appointed in their place.
The auditor, Barnes Roffe LLP, will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 22 February 2025 and signed on its behalf.
 





M Lancaster
Director

Page 4

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 

Opinion


We have audited the financial statements of Little Elms Daycare Nurseries Property Holding Company Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2024, which comprise the Consolidated statement of income and retained earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 May 2024 and of the Group's 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.


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.


Page 5

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Auditors' 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 Auditors' 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 Group financial statements.


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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The engagement partner ensured that the engagement team collectively had the appropriate competence,
      capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussions with directors and
other management, and from our commercial knowledge and experience of the relevant sector;
We focused on specific laws and regulations, which we considered may have a direct material effect on the
financial statements or the operations of the company, including the Companies Act 2006, Ofsted standards
and food hygeine regulations;
We assessed the extent of compliance with laws and regulations identified above through making enquires
of management and inspecting legal correspondence and identified laws and regulations were
communicated within the audit team regularly and the team remained alert to instances of non-compliance
throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by:

Making enquires of management as to where they considered there was susceptibility to fraud, their
knowledge of actual suspected and alleged fraud; and
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations.

To address the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify and unusual or unexpected relationships;
Page 7

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED (CONTINUED)


Tested journal entries to identify unusual transactions;
Assessed whether judgements and assumptions made in determining the accounting estimates were
indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


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 2006Our 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 Auditors' 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.





Adam Dodds (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
3 Hanbury Drive
Leytonstone
London
E11 1GA

24 February 2025
Page 8

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024

As restated
2024
2023
                                                                                                                      Note
£
£

  

Turnover
 4 
8,562,314
8,130,897

Cost of sales
  
(4,562,850)
(4,233,973)

Gross profit
  
3,999,464
3,896,924

Administrative expenses
  
(3,457,982)
(2,846,561)

Other operating income
  
32,033
500

Gain from changes in fair value of investment property
  
2,185,467
-

Operating profit
  
2,758,982
1,050,863

Interest receivable and similar income
  
31,624
30,138

Interest payable and similar expenses
 11 
(213,719)
(137,098)

Profit before tax
  
2,576,887
943,903

Tax on profit
  
(625,090)
(189,498)

Profit after tax
  
1,951,797
754,405

  

  

Retained earnings at the beginning of the year
  
1,254,569
1,231,164

Profit for the year attributable to the owners of the parent
  
1,951,797
754,405

Dividends declared and paid
  
-
(731,000)

Retained earnings at the end of the year
  
3,206,366
1,254,569

  

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of income and retained earnings.

The notes on pages 18 to 38 form part of these financial statements.

Page 9

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
REGISTERED NUMBER: 08713949

CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2024

As restated
2024
2023
                                                                            Note
£
£

Fixed assets
  

Tangible assets
 14 
4,382,523
2,759,161

Investment property
  
2,200,000
1,505,813

  
6,582,523
4,264,974

Current assets
  

Debtors: amounts falling due within one year
 17 
9,456,467
8,398,958

Cash at bank and in hand
 18 
870,058
865,183

  
10,326,525
9,264,141

Creditors: amounts falling due within one year
  
(8,314,340)
(8,151,754)

Net current assets
  
 
 
2,012,185
 
 
1,112,387

Total assets less current liabilities
  
8,594,708
5,377,361

Creditors: amounts falling due after more than one year
  
(3,309,773)
(2,590,590)

Provisions for liabilities
  

Deferred tax
  
(546,367)
-

Other provisions
  
(10,000)
(10,000)

  
 
 
(556,367)
 
 
(10,000)

Net assets
  
4,728,568
2,776,771


Capital and reserves
  

Called up share capital 
 24 
1,522,202
1,522,202

Revaluation reserve
 25 
1,639,100
-

Profit and loss account
 25 
1,567,266
1,254,569

  
4,728,568
2,776,771


Page 10

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
REGISTERED NUMBER: 08713949
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 February 2025.




M Lancaster
Director

The notes on pages 18 to 38 form part of these financial statements.

Page 11

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
REGISTERED NUMBER: 08713949

COMPANY BALANCE SHEET
AS AT 31 MAY 2024

As restated
2024
2023
                                                                          Note
£
£

Fixed assets
  

Investments
 15 
1,522,600
1,522,600

Investment Property
 16 
3,540,000
2,048,720

  
5,062,600
3,571,320

Current assets
  

Debtors: amounts falling due within one year
 17 
6,194,484
4,898,335

Cash at bank and in hand
 18 
67
144

  
6,194,551
4,898,479

Creditors: amounts falling due within one year
 19 
(5,892,907)
(4,307,278)

Net current assets
  
 
 
301,644
 
 
591,201

Total assets less current liabilities
  
5,364,244
4,162,521

  

Creditors: amounts falling due after more than one year
 20 
(2,349,314)
(2,571,365)

Provisions for liabilities
  

Deferred taxation
 22 
(372,820)
-

  
 
 
(372,820)
 
 
-

Net assets excluding pension asset
  
2,642,110
1,591,156

Net assets
  
2,642,110
1,591,156


Capital and reserves
  

Called up share capital 
 24 
1,522,202
1,522,202

Revaluation reserve
 25 
1,118,460
-

Profit and loss account brought forward
  
68,954
56,123

Profit for the year
  
1,050,954
743,831

Other changes in the profit and loss account

  

(1,118,460)
(731,000)

Profit and loss account carried forward
  
1,448
68,954

  
2,642,110
1,591,156


Page 12

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
REGISTERED NUMBER: 08713949
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 February 2025.


M Lancaster
Director

The notes on pages 18 to 38 form part of these financial statements.

Page 13

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£


At 1 June 2022 [as restated]
1,522,202
-
1,231,164
2,753,366
2,753,366


Comprehensive income for the year

Profit for the year
-
-
754,405
754,405
754,405


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(731,000)
(731,000)
(731,000)



At 1 June 2023 [as restated]
1,522,202
-
1,254,569
2,776,771
2,776,771


Comprehensive income for the year

Profit for the year
-
-
1,951,797
1,951,797
1,951,797

Surplus on revaluation of freehold property
-
1,639,100
(1,639,100)
-
-


At 31 May 2024
1,522,202
1,639,100
1,567,266
4,728,568
4,728,568


The notes on pages 18 to 38 form part of these financial statements.

Page 14

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 June 2022
1,522,202
-
56,123
1,578,325



Profit for the year
-
-
743,831
743,831

Dividends: Equity capital
-
-
(731,000)
(731,000)



At 1 June 2023
1,522,202
-
68,954
1,591,156



Profit for the year
-
-
1,050,954
1,050,954

Surplus on revaluation of freehold property
-
1,118,460
(1,118,460)
-


At 31 May 2024
1,522,202
1,118,460
1,448
2,642,110


The notes on pages 18 to 38 form part of these financial statements.

Page 15

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

As restated
2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,951,797
754,405

Adjustments for:

Depreciation of tangible assets
132,949
118,900

Loss on disposal of tangible assets
1,631
-

Interest paid
213,719
137,098

Interest received
(31,624)
(30,138)

Taxation charge
625,090
189,499

(Increase) in debtors
(1,060,365)
(1,976,753)

Increase in creditors
7,492
3,176,686

Net fair value (gains) recognised in P&L
(2,185,467)
-

Corporation tax (paid)
(189,282)
(162,367)

Net cash generated from operating activities

(534,060)
2,207,330


Cash flows from investing activities

Purchase of tangible fixed assets
(170,829)
(1,651,155)

Interest received
31,624
30,138

HP interest paid
(1,412)
-

Net cash from investing activities

(140,617)
(1,621,017)

Cash flows from financing activities

New secured loans
1,000,000
-

Repayment of loans
(88,168)
(126,066)

Repayment of/new finance leases
(19,973)
24,227

Dividends paid
-
(731,000)

Interest paid
(212,307)
(137,098)

Net cash used in financing activities
679,552
(969,937)

Net increase/(decrease) in cash and cash equivalents
4,875
(383,624)

Cash and cash equivalents at beginning of year
865,183
1,248,807

Cash and cash equivalents at the end of year
870,058
865,183


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
870,058
865,183


The notes on pages 18 to 38 form part of these financial statements.

Page 16

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024




At 1 June 2023
Cash flows
At 31 May 2024
£

£

£

Cash at bank and in hand

865,183

4,875

870,058

Debt due after 1 year

(2,571,365)

222,051

(2,349,314)

Debt due within 1 year

(143,163)

(1,133,883)

(1,277,046)

Finance leases

(24,226)

(75,860)

(100,086)


(1,873,571)
(982,817)
(2,856,388)

The notes on pages 18 to 38 form part of these financial statements.

Page 17

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Little Elms Daycare Nurseries Property Holding Company Limited, is a private company, limited by shares, registered in England and Wales. The company's registered office is 29 Beckenham Road, Kent, England BR3 4PR. It's principal activity is that of a holding company and the holding of property.
The principal activity of its subsidiaries, Little Elms Daycare Nursery Limited, Little Elms Daycare Nursery Beckenham Limited, Little Elms Daycare Nursery Catford Green Limited, Little Elms Daycare Nursery Crofton Limited, Little Elms Daycare Nursery Sydenham Limited, Little Elms Daycare Nursery Peninsula Limited, and Little Elms Daycare Nursery Property Holding Company Bromley Limited is that of childcare services. The registered office address for the subsidiary undertakings is 29 Beckenham Road, Kent, England, BR3 4PR.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The directors have reviewed and considered the company working capital requirements and the directors are of the opinion that the company will be able to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements. They therefore consider it appropriate to continue to prepare the financial statements on a going concern basis.

Page 18

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 19

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 20

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
5%
straight-line
Short-term leasehold property
-
5%
straight-line
Motor vehicles
-
20%
straight-line
Fixtures and fittings
-
20%
straight-line
Office equipment
-
20%
straight-line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.13

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 21

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 22

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance sheet when the Group 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The
Page 23

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)

impairment reversal is recognised in the profit or loss.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 24

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.20

Dividends

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical judgements in applying the entity's accounting policies 
No significant judgements have had to be made by management in preparing these financial statements.
Critical accounting estimates and assumptions
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utlisiation and the physical condition of the assets. See note 14 for the carrying amount of the property, plant and equipment, and note 2.11 for the useful economic lives for each class of assets.
(ii) The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 17 for the net carrying amount of the debtors.


4.


Turnover

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Other operating income
32,033
500


Page 25

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Defined contribution pension costs
84,737
77,738

Depreciation of tangible fixed assets
132,949
118,903

Operating lease rentals
205,630
203,398


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
12,000
-

Fees payable to the Company's auditors in respect of:

The auditing of accounts of the subsidiaries of the Company
75,600
15,409

All non-audit services not included above
50,189
15,409


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
5,089,746
4,432,576

Social security costs
435,279
407,998

Cost of defined contribution scheme
84,737
77,738

5,609,762
4,918,312


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Employees
308
288
2
2

Page 26

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
271,942
56,233

Group contributions to defined contribution pension schemes
735
-

272,677
56,233


During the year retirement benefits were accruing to 2 directors (2023 - NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £112,950 (2023 - £12,950).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
31,624
30,138


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
212,307
137,098

Finance leases and hire purchase contracts
1,412
-

213,719
137,098

Page 27

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
78,723
189,498


Total current tax
78,723
189,498

Deferred tax


Origination and reversal of timing differences
546,367
-


Tax on profit
625,090
189,498

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,576,887
943,903


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
638,726
235,976

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
7,701
35,901

Capital allowances for year in excess of depreciation
(12,329)
13,061

Utilisation of tax losses
38,042
-

Non-taxable income
-
(22,535)

Group relief
(47,050)
-

Change in tax rate
-
(72,905)

Total tax charge for the year
625,090
189,498


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 28

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

13.


Dividends

2024
2023
£
£


Dividends declared
-
731,000

Page 29

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

14.


Tangible fixed assets

Group






Freehold property
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 June 2023
2,974,810
30,011
234,638
644,830
3,884,289


Additions
13,378
95,833
135,967
21,484
266,662


Disposals
(890)
-
-
(741)
(1,631)


Revaluations
1,491,280
-
-
-
1,491,280



At 31 May 2024

4,478,578
125,844
370,605
665,573
5,640,600



Depreciation


At 1 June 2023
391,718
4,287
182,608
546,515
1,125,128


Charge for the year on owned assets
46,930
5,145
36,154
41,015
129,244


Charge for the year on financed assets
-
3,705
-
-
3,705



At 31 May 2024

438,648
13,137
218,762
587,530
1,258,077



Net book value



At 31 May 2024
4,039,930
112,707
151,843
78,043
4,382,523



At 31 May 2023
2,583,092
25,724
52,030
98,315
2,759,161

Page 30

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

           14.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
92,128
25,724

Cost or valuation at 31 May 2024 is as follows:

Land and buildings
£


At cost
938,578
At valuation:

31 May 2024
3,540,000



4,478,578

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2024
2023
£
£

Group


Cost
2,048,720
2,048,720

Accumulated depreciation
(1,078,628)
(976,192)

Net book value
970,092
1,072,528

Page 31

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2023
1,522,600



At 31 May 2024
1,522,600






Net book value



At 31 May 2024
1,522,600



At 31 May 2023
1,522,600


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Little Elms Daycare Nursery Limited
Ordinary
100%
Little Elms Daycare Nursery Beckenham Limited
Ordinary
100%
Little Elms Daycare Nursery Crofton Limited
Ordinary
100%
Little Elms Daycare Nursery Catford Green Limited
Ordinary
100%
Little Elms Daycare Nursery Peninsula Limited
Ordinary
100%
Little Elms Daycare Nursery Sydenham Limited
Ordinary
100%
Little Elms Daycare Nursery Property Holding Company Bromley Limited
Ordinary
100%

Page 32

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

16.


Investment property

Group


Freehold investment property

£



Valuation


At 1 June 2023
1,505,813


Surplus on revaluation
694,187



At 31 May 2024
2,200,000

The 2024 valuations were made by the directors, on an open market value for existing use basis.






Company





Freehold investment property

£



Valuation


At 1 June 2023
2,048,720


Surplus on revaluation
1,491,280



At 31 May 2024
3,540,000

The 2024 valuations were made by the directors, on an open market value for existing use basis.


Page 33

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

17.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
97,923
98,200
-
-

Amounts owed by group undertakings
-
-
2,833,917
2,520,259

Other debtors
9,084,430
8,016,069
3,360,567
2,378,076

Prepayments and accrued income
274,114
284,689
-
-

9,456,467
8,398,958
6,194,484
4,898,335



18.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
870,058
865,183
67
144



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
399,177
143,163
282,687
143,163

Trade creditors
420,775
495,918
-
-

Amounts owed to group undertakings
-
-
3,333,929
1,565,924

Corporation tax
78,506
78,487
-
-

Other taxation and social security
108,056
91,046
-
-

Obligations under finance lease and hire purchase contracts
17,496
5,001
-
-

Other creditors
5,928,508
6,337,821
2,257,691
2,598,191

Accruals and deferred income
1,361,822
1,000,318
18,600
-

8,314,340
8,151,754
5,892,907
4,307,278


Page 34

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
3,227,183
2,571,365
2,349,314
2,571,365

Net obligations under finance leases and hire purchase contracts
82,590
19,225
-
-

3,309,773
2,590,590
2,349,314
2,571,365



The following liabilities were secured:
Group
Group
2024
2023
£
£


Bank loans
3,626,360
2,714,528

Details of security provided:

At the balance sheet date the group had entered into a group guarantee in relation to bank loans held by Little Elms Daycare Nurseries Property Holding Company Limited. The loan is secured by way of a fixed charge over property, other debts, chattels, goodwill and uncalled capital and a floating charge over all assets.

In December 2019 the company entered into a bank facility agreement. Interest is charged at 2.25% over the base rate. The loan is repayable within 5 years of the balance sheet date.


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
17,496
5,001

Between 1-5 years
82,590
19,225

100,086
24,226

Net obligations under hire purchase contracts of £100,086 (2023 - £24,226) are secured on the assets to
to which they relate.

Page 35

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

22.


Deferred taxation


Group



2024


£






Charged to profit or loss
546,367



At end of year
546,367

Company


2024


£






Charged to profit or loss
372,820



At end of year
372,820

Group
Company
2024
2024
£
£

Deferred tax on revaluation of investment property
546,367
372,820


23.


Provisions


Group



Dilapidation provision

£





At 1 June 2023
10,000



At 31 May 2024
10,000

Page 36

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

24.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,522,202 (2023 - 1,522,202) Ordinary shares of £1 each
1,522,202
1,522,202

The ordinary shares are fully voting shares and rank pari passu in all respects. There are no restrictions on the distribution of dividends and the repayment of capital in respect of all shares.



25.


Reserves

Revaluation reserve

The revaluation reserve comprises of accumulated revaluation gains and losses, net of any deferred tax
and other adjustments.

Profit and loss account

The profit and loss account represents cumulative distributable profits and losses net of dividends and other adjustments.


26.


Prior year adjustment

The comparative figures for the year ended 31 May 2023 and 31 May 2022 have been restated to
correctly reclassify freehold property included within tangible fixed assets, to investment property, in order
to comply with the requirements of Financial Reporting Standard FRS102.
In addition, the comparative figures for the year ended 31 May 2023 and 31 May 2022 have been restated following the recognition of depreciation on leasehold improvements. The quantum effect of the adjustments is a decrease in retained earnings and fixed assets of £296,716.


27.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £84,737 (2023 - £77,738). Contributions totalling £18,019 (2023 - £16,766) were payable to the fund at the balance sheet date and are included in creditors.

Page 37

 
LITTLE ELMS DAYCARE NURSERIES PROPERTY HOLDING COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

28.


Commitments under operating leases

At 31 May 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
203,398
178,648

Later than 1 year and not later than 5 years
592,946
539,167

Later than 5 years
217,000
684,500

1,013,344
1,402,315

29.


Related party transactions

The group has taken advantage of the exemption, under FRS 102 paragraph 1.12 and paragraph 33.1A from disclosing transactions with key management and from disclosing other related party transactions as they are with other companies that are wholly owned within the group.
Included within other debtors at the year end are amounts of £7,277,547 
(2023 - £5,924,402) due from companies under the control of the directors.
Included within other creditors at the year end are amounts of £5,778,009 
(2023 - £5,270,702) due to companies under the control of the directors.
Included within other debtors at the year end are amounts owed from the ultimate owners of the group of £1,220,190 
(2023 - £1,509,410). Interest on the loan was charged at HMRC's official rate of interest of 2.25%.
Included within other creditors at the year end are amounts owed from the ultimate owners of the group of £Nil 
(2023 - £860,000).
Dividends of £Nil 
(2023 - £731,000) were declared and paid to the directors.


30.


Controlling party

The ultimate controlling party is M Lancaster and S Lancaster

 
Page 38