Company registration number 01219410 (England and Wales)
COLLINGHAM LIMITED
Annual report and financial statements
For the year ended 31 July 2024
COLLINGHAM LIMITED
COMPANY INFORMATION
Directors
Mr R J Marsden
Mr E H P Browne
Mr W J Marsden
(Appointed 9 September 2024)
Secretary
Mr R J Marsden
Company number
01219410
Registered office
23 Collingham Gardens
London
SW5 0HL
Auditor
WSM Advisors Limited
Connect House
133-137 Alexandra Road
Wimbledon
London
SW19 7JY
COLLINGHAM LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
COLLINGHAM LIMITED
STRATEGIC REPORT
For the year ended 31 July 2024
- 1 -
The directors present the strategic report for the year ended 31 July 2024.
Fair review of the business
We aim to present a balanced and comprehensive review of the performance of the business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and global economic and political uncertainties.
The company continued to trade successfully throughout the year, this was achieved by increasing turnover and the gross profit margin. The company continues to protect its cash flow by reducing expenditure and maintaining a healthy cash balance.
A risk that has arisen during the financial year is the government regulatory and taxation changes imposed. This may negatively impact income and expenditure, putting pressure on the long-term viability of the school. However, appropriate cash balances and reserves are maintained by the school.
Key performance indicators
The financial key performance indicators which best demonstrate the financial health of the business include turnover and cash ratios.
Turnover comprises students' fees, examination fees, room hire, and miscellaneous fees for additional tutoring. We are confident that during 2025, the turnover and student numbers will continue to grow. The cash ratios demonstrate good levels of liquidity which indicate that Collingham remains in a strong position to meet its short-term liabilities.
2024
2023
Turnover
£4,230,819
£3,695,568
Cash ratio
8.50
7.42
Mr R J Marsden
Director
19 February 2025
COLLINGHAM LIMITED
DIRECTORS' REPORT
For the year ended 31 July 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company continued to be that of the provision of tuition to students studying for GCSE and A-Level examinations.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £600,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr R J Marsden
Mr E H P Browne
Mr W J Marsden
(Appointed 9 September 2024)
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
Investments of cash surpluses and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
Future developments
The directors anticipate the business environment will remain competitive. The directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations.
Auditor
WSM Advisors Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
COLLINGHAM LIMITED
DIRECTORS' REPORT (CONTINUED)
For the year ended 31 July 2024
- 3 -
On behalf of the board
Mr R J Marsden
Director
19 February 2025
COLLINGHAM LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
For the year ended 31 July 2024
- 4 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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.
COLLINGHAM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COLLINGHAM LIMITED
- 5 -
Opinion
We have audited the financial statements of Collingham Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
COLLINGHAM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COLLINGHAM LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of 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.
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.
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 extent to which the audit was considered capable of detecting irregularities including fraud
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 private school 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, taxation legislation and data protection, anti-bribery, employment, education Act and regulations including Independent School Inspectorate) and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries 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.
COLLINGHAM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COLLINGHAM LIMITED (CONTINUED)
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries 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 any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors; and
review of the latest Independent Schools Inspectorate report.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's 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.
Michael Spink ACA (Senior Statutory Auditor)
For and on behalf of WSM Advisors Limited, Statutory Auditor
Chartered Accountants
Connect House
133-137 Alexandra Road
Wimbledon
London
SW19 7JY
19 February 2025
COLLINGHAM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 July 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
4,230,819
3,695,568
Administrative expenses
(3,881,052)
(3,514,929)
Operating profit
4
349,767
180,639
Investment income
7
147,925
57,982
Other gains and losses
61,007
(46,328)
Profit before taxation
558,699
192,293
Tax on profit
8
(126,403)
(40,822)
Profit for the financial year
432,296
151,471
The income statement has been prepared on the basis that all operations are continuing operations.
COLLINGHAM LIMITED
STATEMENT OF FINANCIAL POSITION
As at 31 July 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
5,240,616
5,287,774
Investments
11
1,053,074
5,240,616
6,340,848
Current assets
Trade and other receivables
12
120,545
45,447
Cash and cash equivalents
3,484,339
2,598,313
3,604,884
2,643,760
Current liabilities
13
(409,873)
(350,227)
Net current assets
3,195,011
2,293,533
Total assets less current liabilities
8,435,627
8,634,381
Provisions for liabilities
Deferred tax liability
14
3,366
34,416
(3,366)
(34,416)
Net assets
8,432,261
8,599,965
Equity
Called up share capital
16
30,000
30,000
Retained earnings
17
8,402,261
8,569,965
Total equity
8,432,261
8,599,965
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 19 February 2025 and are signed on its behalf by:
Mr R J Marsden
Director
Company registration number 01219410 (England and Wales)
COLLINGHAM LIMITED
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 July 2024
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 August 2022
30,000
8,618,494
8,648,494
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
151,471
151,471
Dividends
9
-
(200,000)
(200,000)
Balance at 31 July 2023
30,000
8,569,965
8,599,965
Year ended 31 July 2024:
Profit and total comprehensive income for the year
-
432,296
432,296
Dividends
9
-
(600,000)
(600,000)
Balance at 31 July 2024
30,000
8,402,261
8,432,261
COLLINGHAM LIMITED
STATEMENT OF CASH FLOWS
For the year ended 31 July 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
280,550
315,042
Income taxes paid
(50,714)
(1,438)
Net cash inflow from operating activities
229,836
313,604
Investing activities
Purchase of property, plant and equipment
(5,816)
(7,658)
Purchase of investments
(145,492)
(150,597)
Proceeds on disposal of investments
1,259,573
99,732
Interest received
119,457
33,145
Dividends received
28,468
24,837
Net cash generated from/(used in) investing activities
1,256,190
(541)
Financing activities
Dividends paid
(600,000)
(200,000)
Net cash used in financing activities
(600,000)
(200,000)
Net increase in cash and cash equivalents
886,026
113,063
Cash and cash equivalents at beginning of year
2,598,313
2,485,250
Cash and cash equivalents at end of year
3,484,339
2,598,313
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 July 2024
- 12 -
1
Accounting policies
Company information
Collingham Limited is a private company limited by shares incorporated in England and Wales. The registered office is 23 Collingham Gardens, London, SW5 0HL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of discounts.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Property, plant and equipment
Property, plant and equipment 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:
Land and buildings Freehold
50 years (straight line)
Land and buildings Leasehold
50 years (straight line)
Fixtures and fittings
5 years (straight line)
Computer equipment
3 years (straight line)
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less,.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The directors of the company consider there to be no significant judgements, estimates or assumptions made about carrying amounts of assets and liabilities in the preparation of these financial statements.
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 July 2024
- 16 -
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Tuition fees
4,129,665
3,617,080
Room hire
47,627
24,034
Examination income
53,527
54,454
4,230,819
3,695,568
2024
2023
£
£
Other significant revenue
Interest income
119,457
33,145
Dividends received
28,468
24,837
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the auditor for the audit of the company's financial statements
14,294
13,645
Depreciation of owned property, plant and equipment
52,974
60,564
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
61
59
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 July 2024
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,209,176
2,049,249
Social security costs
228,993
189,275
Pension costs
105,818
109,207
2,543,987
2,347,731
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
222,665
200,363
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
207,665
185,363
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
119,457
33,145
Other income from investments
Dividends received
28,468
24,837
Total income
147,925
57,982
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 July 2024
- 18 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
157,453
50,564
Deferred tax
Origination and reversal of timing differences
(31,050)
(9,742)
Total tax charge
126,403
40,822
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
558,699
192,293
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
139,675
36,536
Effect of revaluations of investments
6,292
Dividend income
(7,117)
(4,719)
Capital allowances in excess of depreciation
6,163
4,941
Other adjustments
18,732
2,687
Deferred tax
(31,050)
9,742
Change in tax rate
(14,657)
Taxation charge for the year
126,403
40,822
9
Dividends
2024
2023
£
£
Final paid
600,000
200,000
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 July 2024
- 19 -
10
Property, plant and equipment
Land and buildings Freehold
Land and buildings Leasehold
Fixtures and fittings
Computer equipment
Total
£
£
£
£
£
Cost
At 1 August 2023
5,429,492
186,908
97,844
201,849
5,916,093
Additions
5,816
5,816
At 31 July 2024
5,429,492
186,908
97,844
207,665
5,921,909
Depreciation and impairment
At 1 August 2023
159,856
186,908
92,013
189,542
628,319
Depreciation charged in the year
44,612
3,996
4,366
52,974
At 31 July 2024
204,468
186,908
96,009
193,908
681,293
Carrying amount
At 31 July 2024
5,225,024
1,835
13,757
5,240,616
At 31 July 2023
5,269,636
5,831
12,307
5,287,774
11
Fixed asset investments
2024
2023
£
£
Listed investments
1,053,074
Movements in non-current investments
Investments
£
Cost or valuation
At 1 August 2023
1,053,074
Additions
145,492
Disposals
(1,198,566)
At 31 July 2024
-
Carrying amount
At 31 July 2024
-
At 31 July 2023
1,053,074
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 July 2024
- 20 -
12
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
93,095
24,270
Prepayments and accrued income
27,450
21,177
120,545
45,447
13
Current liabilities
2024
2023
£
£
Trade payables
22,592
7,469
Corporation tax
157,303
50,564
Other taxation and social security
71,660
64,862
Other payables
15,803
Accruals and deferred income
142,515
227,332
409,873
350,227
14
Deferred taxation
The following are the major deferred tax liabilities recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
3,366
3,887
Revaluation of investments
-
30,529
3,366
34,416
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
105,818
109,207
A defined contribution pension scheme is operated for all qualifying employees.
COLLINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 July 2024
- 21 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
30,000
30,000
30,000
30,000
17
Retained earnings
Retained earnings includes non-distributable reserves of £nil (2023: £212,270). The non-distributable reserves include the unrealised profits relating to the investment's' fair value movements less the associated deferred tax movement.
18
Related party transactions
During the year, the company incurred professional fees of £574,000 (2023: £531,250) from entities which are controlled by or in which an equity interest is held by the directors of the company and their close family.
Included in accruals and deferred income at the year end is an amount of £nil (2023: £70,928) that is owed to an entity controlled by a shareholder. Other creditors due to related parties total £nil (2023: £250).
19
Directors' transactions
Dividends totalling £600,000 (2023: £200,000) were paid in the year in respect of shares held by the company's directors and close family.
20
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
432,296
151,471
Adjustments for:
Taxation charged
126,403
40,822
Investment income
(147,925)
(57,982)
Depreciation and impairment of property, plant and equipment
52,974
60,563
Other gains and losses
(61,007)
46,328
Movements in working capital:
(Increase)/decrease in trade and other receivables
(75,098)
19,617
(Decrease)/increase in trade and other payables
(47,093)
54,223
Cash generated from operations
280,550
315,042
21
Analysis of changes in net funds
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
2,598,313
886,026
3,484,339
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