Caseware UK (AP4) 2024.0.164 2024.0.164 2024-05-312024-05-31669false2023-06-01truetruefalsefalseProviding childcare services101101true 06908541 2023-06-01 2024-05-31 06908541 2022-06-01 2023-05-31 06908541 2024-05-31 06908541 2023-05-31 06908541 c:CompanySecretary1 2023-06-01 2024-05-31 06908541 c:Director1 2023-06-01 2024-05-31 06908541 c:Director2 2023-06-01 2024-05-31 06908541 c:Director3 2023-06-01 2024-05-31 06908541 c:Director3 2024-05-31 06908541 c:RegisteredOffice 2023-06-01 2024-05-31 06908541 d:Buildings d:LongLeaseholdAssets 2023-06-01 2024-05-31 06908541 d:Buildings d:LongLeaseholdAssets 2024-05-31 06908541 d:Buildings d:LongLeaseholdAssets 2023-05-31 06908541 d:MotorVehicles 2023-06-01 2024-05-31 06908541 d:MotorVehicles 2024-05-31 06908541 d:MotorVehicles 2023-05-31 06908541 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 06908541 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-06-01 2024-05-31 06908541 d:FurnitureFittings 2023-06-01 2024-05-31 06908541 d:FurnitureFittings 2024-05-31 06908541 d:FurnitureFittings 2023-05-31 06908541 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 06908541 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2023-06-01 2024-05-31 06908541 d:OfficeEquipment 2023-06-01 2024-05-31 06908541 d:OfficeEquipment 2024-05-31 06908541 d:OfficeEquipment 2023-05-31 06908541 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 06908541 d:OfficeEquipment d:LeasedAssetsHeldAsLessee 2023-06-01 2024-05-31 06908541 d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 06908541 d:LeasedAssetsHeldAsLessee 2023-06-01 2024-05-31 06908541 d:CurrentFinancialInstruments 2024-05-31 06908541 d:CurrentFinancialInstruments 2023-05-31 06908541 d:Non-currentFinancialInstruments 2024-05-31 06908541 d:Non-currentFinancialInstruments 2023-05-31 06908541 d:CurrentFinancialInstruments d:WithinOneYear 2024-05-31 06908541 d:CurrentFinancialInstruments d:WithinOneYear 2023-05-31 06908541 d:Non-currentFinancialInstruments d:AfterOneYear 2024-05-31 06908541 d:Non-currentFinancialInstruments d:AfterOneYear 2023-05-31 06908541 d:UKTax 2023-06-01 2024-05-31 06908541 d:UKTax 2022-06-01 2023-05-31 06908541 d:ShareCapital 2024-05-31 06908541 d:ShareCapital 2023-05-31 06908541 d:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 06908541 d:RetainedEarningsAccumulatedLosses 2024-05-31 06908541 d:RetainedEarningsAccumulatedLosses 2022-06-01 2023-05-31 06908541 d:RetainedEarningsAccumulatedLosses 2023-05-31 06908541 d:RetainedEarningsAccumulatedLosses 2022-06-01 06908541 c:OrdinaryShareClass1 2023-06-01 2024-05-31 06908541 c:OrdinaryShareClass1 2024-05-31 06908541 c:OrdinaryShareClass1 2023-05-31 06908541 c:FRS102 2023-06-01 2024-05-31 06908541 c:Audited 2023-06-01 2024-05-31 06908541 c:FullAccounts 2023-06-01 2024-05-31 06908541 c:PrivateLimitedCompanyLtd 2023-06-01 2024-05-31 06908541 d:WithinOneYear 2024-05-31 06908541 d:WithinOneYear 2023-05-31 06908541 d:BetweenOneFiveYears 2024-05-31 06908541 d:BetweenOneFiveYears 2023-05-31 06908541 d:HirePurchaseContracts d:WithinOneYear 2024-05-31 06908541 d:HirePurchaseContracts d:WithinOneYear 2023-05-31 06908541 d:HirePurchaseContracts d:BetweenOneFiveYears 2024-05-31 06908541 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-05-31 06908541 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2024-05-31 06908541 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-05-31 06908541 e:PoundSterling 2023-06-01 2024-05-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 06908541









LITTLE ELMS DAYCARE NURSERY LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
COMPANY INFORMATION


Directors
M Lancaster 
S Lancaster 
M A De Assis  




Company secretary
M Lancaster



Registered number
06908541



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 NURSERY LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of income and retained earnings
 
9
Balance sheet
 
10
Notes to the financial statements
 
11 - 23


 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The company's principal activity during the year was that of childcare services.

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 5.8%, gross profit margin has increased to 50.7% from 50.5% in the prior year. Net profits before tax have decreased to £207,742 
(2023 - £422,438). 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 £347k, while net assets remain in excess of £1,994k.
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 are considered 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 and and 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 £347k 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

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 obligations under finance lease and hire purchase contracts which attract interest at fixed rates.

Page 1

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 

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


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



M Lancaster
Director

Page 2

 
LITTLE ELMS DAYCARE NURSERY 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 Strategic report, the Directors' 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 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 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 for the Company'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 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 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 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 £194,989 (2023 - £343,951).

During the year directors declared dividends of £Nil (2023 - £281,000).

Directors

The directors who served during the year were:

M Lancaster 
S Lancaster 
M A De Assis (appointed 18 March 2024)
A M Shaw (resigned 16 October 2023)

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 NURSERY 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'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's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company 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 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 NURSERY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LITTLE ELMS DAYCARE NURSERY LIMITED
 

Opinion


We have audited the financial statements of Little Elms Daycare Nursery Limited (the 'Company') for the year ended 31 May 2024, which comprise the Statement of income and retained earnings, the Balance sheet 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 Company's affairs as at 31 May 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.


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 Company 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 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 NURSERY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LITTLE ELMS DAYCARE NURSERY 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 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.

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 directors' 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 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 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.

Page 6

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LITTLE ELMS DAYCARE NURSERY LIMITED (CONTINUED)


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 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;
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.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures 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 that those that arise from errors as they may involve deliberate concealment or collusion.


Page 7

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LITTLE ELMS DAYCARE NURSERY LIMITED (CONTINUED)


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 NURSERY LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
                                                                                                                    Note
£
£

  

Turnover
 4 
2,556,749
2,416,556

Cost of sales
  
(1,261,034)
(1,196,471)

Gross profit
  
1,295,715
1,220,085

Administrative expenses
  
(1,086,831)
(798,147)

Other operating income
  
-
500

Operating profit
 5 
208,884
422,438

Interest payable and similar expenses
 9 
(1,412)
-

Profit before tax
  
207,472
422,438

Tax on profit
  
(12,483)
(78,487)

Profit after tax
  
194,989
343,951

  

  

Retained earnings at the beginning of the year
  
277,330
214,379

Profit for the year
  
194,989
343,951

Dividends declared and paid
  
-
(281,000)

Retained earnings at the end of the year
  
472,319
277,330

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

The notes on pages 11 to 23 form part of these financial statements.

Page 9

 
LITTLE ELMS DAYCARE NURSERY LIMITED
REGISTERED NUMBER: 06908541

BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
257,710
79,441

Current assets
  

Debtors: amounts falling due within one year
 13 
5,179,080
4,838,389

Cash at bank and in hand
 14 
346,966
394,381

  
5,526,046
5,232,770

Creditors: amounts falling due within one year
 15 
(3,706,847)
(3,493,656)

Net current assets
  
 
 
1,819,199
 
 
1,739,114

Total assets less current liabilities
  
2,076,909
1,818,555

Creditors: amounts falling due after more than one year
 16 
(82,590)
(19,225)

  

Net assets
  
1,994,319
1,799,330


Capital and reserves
  

Called up share capital 
 19 
1,522,000
1,522,000

Profit and loss account
 20 
472,319
277,330

  
1,994,319
1,799,330


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 11 to 23 form part of these financial statements.

Page 10

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Little Elms Daycare Nursery Limited is a private company, limited by shares, registered in England and Wales. Its registered office address is 29 Beckenham Road, Beckenham, Kent, BR3 4PR. The company's principal activity is that of providing childcare services.

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Little Elms Daycare Nurseries Property Holding Company Limited as at 31 May 2024 and these financial statements may be obtained from Companies House.

 
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 11

 
LITTLE ELMS DAYCARE NURSERY 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 Company 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 Company 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 Company 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

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.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

Page 12

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.8

Taxation

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 operates and generates 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.


Page 13

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.9

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.

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:

Improvements to property
-
5%
straight-line
Motor vehicles
-
10%
straight-line
Fixtures and fittings
-
20%
straight-line
Furniture and 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.

 
2.10

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.

 
2.11

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.

 
2.12

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.

Page 14

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.13

Financial instruments

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

The Company 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 Company's Balance sheet 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 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 Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans 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.

Page 15

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.14

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.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are 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 12 for the carrying amount of the property, plant and equipment, and note 2.9 for the useful economic lives for each class of assets.
(ii) The company 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 13 for the net carrying amount of the debtors.


4.


Turnover

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
45,070
25,529

Defined contribution pension cost
37,535
36,630

Other operating lease rentals
120,000
120,000

Page 16

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
10,800
4,620

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

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


2024
2023
£
£

Wages and salaries
1,437,237
1,097,839

Social security costs
229,690
198,759

Cost of defined contribution scheme
37,535
36,630

1,704,462
1,333,228


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


        2024
        2023
            No.
            No.







Directors
3
3



Staff
98
98

101
101

Page 17

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
271,942
56,233

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


9.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
1,412
-


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
12,483
78,487


12,483
78,487


Total current tax
12,483
78,487
Page 18

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
10.Taxation (continued)


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
207,472
422,438


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
51,868
105,610

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(611)
832

Capital allowances for year in excess of depreciation
(22,437)
(26,199)

Group relief
(16,337)
(1,756)

Total tax charge for the year
12,483
78,487


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2024
2023
£
£


Ordinary dividends
-
281,000

Page 19

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

12.


Tangible fixed assets





Improvements to property
Motor vehicles
Fixtures and fittings
Furniture and equipment
Total

£
£
£
£
£



Cost or valuation


At 1 June 2023
-
30,011
60,445
302,801
393,257


Additions
13,378
95,833
107,004
7,639
223,854


Disposals
-
-
-
(515)
(515)



At 31 May 2024

13,378
125,844
167,449
309,925
616,596



Depreciation


At 1 June 2023
-
4,287
45,046
264,483
313,816


Charge for the year on owned assets
669
5,145
20,391
15,160
41,365


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



At 31 May 2024

669
13,137
65,437
279,643
358,886



Net book value



At 31 May 2024
12,709
112,707
102,012
30,282
257,710



At 31 May 2023
-
25,724
15,399
38,318
79,441

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

Page 20

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

13.


Debtors

2024
2023
£
£


Trade debtors
10,468
30,292

Amounts owed by group undertakings
764,231
841,035

Other debtors
4,313,822
3,871,912

Prepayments and accrued income
90,559
95,150

5,179,080
4,838,389



14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
346,966
394,381



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
244,019
296,520

Amounts owed to group undertakings
2,227,315
2,038,437

Corporation tax
12,483
78,487

Other taxation and social security
59,270
46,502

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

Other creditors
650,151
786,741

Accruals and deferred income
496,113
241,968

3,706,847
3,493,656



16.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

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


Page 21

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

17.


Secured debts

At the balance sheet date the company had entered into a group guarantee in relation to bank loans held
by Little Elms Daycare Nurseries Property Holding Company Limited, the parent company. 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.


18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

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.


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,522,000 (2023 - 1,522,000) Ordinary shares of £1.00 each
1,522,000
1,522,000

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.



20.


Reserves

Profit and loss account

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


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £37,535 (2023 - £36,630). Contributions of £8,431 were outstanding at the balance sheet date (2023 - £7,519)

Page 22

 
LITTLE ELMS DAYCARE NURSERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

22.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
31,949
31,949

Later than 1 year and not later than 5 years
61,235
93,183

93,184
125,132


23.


Related party transactions

The Company 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.
At the year end, included within other debtors, are amounts of £4,304,613 
(2023 - £3,868,454) due from companies under common control.
At the year end, included within other creditors, are amounts of £595,902 
(2023 - £734,370) due to companies under common control.


24.


Controlling party

The ultimate controlling party is M Lancaster and S Lancaster.
The ultimate parent company is Little Elms Daycare Nurseries Property Holding Company Limited. Its registered office is 29 Beckenham Road, Beckenham, Kent, England, BR3 4PR.

 
Page 23