Highclare Limited is a private company limited by shares incorporated in England and Wales. The registered office is 241 Birmingham Road, Sutton Coldfield, West Midlands, B72 1EA.
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 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
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 average monthly number of persons (including directors) employed by the company during the year was:
The legal documentation to effect the transaction to transfer the leasehold improvements to the ultimate parent undertaking were finalised after the year end and all assets were transferred to the parent undertaking at revalued amounts. This is considered to be a material post balance sheet event reflecting a decision made prior to the financial year end and only delayed by the completion of the legal formalities and has therefore been reflected in these financial statements.
The company extinguished 899,999 Ordinary shares of £1 being unrequired share capital as part of the agreed reconstruction and return of assets to the parent undertaking referred to in the events after the reporting date note.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The company has guaranteed by a fixed and floating charge the bank borrowings of other group undertakings which totalled £554,676 at the year end (2023 : £640,573). This charge was satisfied in full after the year end and the cross guarantee released.
During the financial year, the company substantially completed the legal formalities to effect the simplification of the group structure which involved the reduction of its share capital whereby 899,999 Ordinary Shares of £1 each were extinguished reducing its issued share capital to £1. These arrangements also included the transfer of all leasehold improvements at revalued carrying amounts to the ultimate parent undertaking. Whilst these transactions were concluded after date, the decision was taken, and the practical steps to achieve this were substantially completed, before the year end. The process was originally intended to have been concluded by 31 August 2024 but was delayed only by the completion of the legal formalities. The nature and impact of the transactions is considered to be material to the company and therefore the transaction has been reflected in the financial statements as if it had been completed as at 31 August 2024.
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
The amounts owed to group undertakings disclosed within the note "Creditors: Amounts falling due within one year" relate to amounts owed to the parent undertaking, Highclare School. The amounts are not subject to interest and are repayable upon demand. The parent undertaking has agreed not to seek such repayment until the company can do so without detriment to its going concern status or other external creditors.