Kip McGrath Education UK Limited 06210932 false 2023-07-01 2024-06-30 2024-06-30 The principal activity of the company is the sale of franchises and provision of services to existing franchises. These franchises provide literacy and numeracy education services outside the state schooling system. Digita Accounts Production Advanced 6.30.9574.0 true true true 06210932 2023-07-01 2024-06-30 06210932 2024-06-30 06210932 bus:OrdinaryShareClass1 bus:CumulativeShares 2024-06-30 06210932 bus:Consolidated 2024-06-30 06210932 core:RetainedEarningsAccumulatedLosses 2024-06-30 06210932 core:ShareCapital 2024-06-30 06210932 core:CurrentFinancialInstruments 2024-06-30 06210932 core:CurrentFinancialInstruments core:WithinOneYear 2024-06-30 06210932 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-06-30 06210932 core:Goodwill 2024-06-30 06210932 core:PatentsTrademarksLicencesConcessionsSimilar 2024-06-30 06210932 core:FurnitureFittingsToolsEquipment 2024-06-30 06210932 bus:SmallEntities 2023-07-01 2024-06-30 06210932 bus:Audited 2023-07-01 2024-06-30 06210932 bus:FilletedAccounts 2023-07-01 2024-06-30 06210932 bus:SmallCompaniesRegimeForAccounts 2023-07-01 2024-06-30 06210932 bus:RegisteredOffice 2023-07-01 2024-06-30 06210932 bus:Director1 2023-07-01 2024-06-30 06210932 bus:OrdinaryShareClass1 bus:CumulativeShares 2023-07-01 2024-06-30 06210932 bus:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 06210932 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-07-01 2024-06-30 06210932 core:Goodwill 2023-07-01 2024-06-30 06210932 core:PatentsTrademarksLicencesConcessionsSimilar 2023-07-01 2024-06-30 06210932 core:FurnitureFittings 2023-07-01 2024-06-30 06210932 core:FurnitureFittingsToolsEquipment 2023-07-01 2024-06-30 06210932 1 2023-07-01 2024-06-30 06210932 countries:EnglandWales 2023-07-01 2024-06-30 06210932 2023-06-30 06210932 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-06-30 06210932 core:Goodwill 2023-06-30 06210932 core:PatentsTrademarksLicencesConcessionsSimilar 2023-06-30 06210932 core:FurnitureFittingsToolsEquipment 2023-06-30 06210932 2022-07-01 2023-06-30 06210932 2023-06-30 06210932 bus:OrdinaryShareClass1 bus:CumulativeShares 2023-06-30 06210932 core:RetainedEarningsAccumulatedLosses 2023-06-30 06210932 core:ShareCapital 2023-06-30 06210932 core:CurrentFinancialInstruments 2023-06-30 06210932 core:CurrentFinancialInstruments core:WithinOneYear 2023-06-30 06210932 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-06-30 06210932 core:Goodwill 2023-06-30 06210932 core:PatentsTrademarksLicencesConcessionsSimilar 2023-06-30 06210932 core:FurnitureFittingsToolsEquipment 2023-06-30 iso4217:GBP xbrli:pure xbrli:shares

Kip McGrath Education UK Limited

Annual Report and Financial Statements
Year Ended 30 June 2024

Registration number: 06210932

 

Kip McGrath Education UK Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 8

 

Kip McGrath Education UK Limited

Balance Sheet

30 June 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

5

354,810

160,880

Tangible assets

6

3,558

3,998

 

358,368

164,878

Current assets

 

Debtors

7

938,902

907,997

Cash at bank and in hand

 

250,552

67,868

 

1,189,454

975,865

Creditors: Amounts falling due within one year

8

(527,515)

(273,805)

Net current assets

 

661,939

702,060

Total assets less current liabilities

 

1,020,307

866,938

Provisions for liabilities

-

(2,777)

Net assets

 

1,020,307

864,161

Capital and reserves

 

Called up share capital

9

1

1

Profit and loss account

1,020,306

864,160

Shareholders' funds

 

1,020,307

864,161

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 27 March 2025 and signed on its behalf by:
 

.........................................
Storm McGrath
Director

Company Registration Number: 06210932

 

Kip McGrath Education UK Limited

Notes to the Financial Statements

Year Ended 30 June 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Centenary House
Peninsula Park
Rydon Lane
Exeter
EX2 7XE
United Kingdom

The principal place of business is:
Railway House
Bruton way
Gloucester
Gloucestershire
GL1 1DG
United Kingdom

These financial statements were authorised for issue by the Board on 27 March 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of Kip McGrath Education UK Limited is considered to be pounds sterling because that is the currency of the economic environment in which the company operates.

Going concern

The financial statements have been prepared on a going concern basis. The directors have assessed its forecasts and budgets for the next 12 months. From these forecasts, the directors have determined that the company will remain profitable and able to meet its liabilities for the next 12 months. On the basis of this information, the directors consider it appropriate to prepare the accounts on a going concern basis.

 

Kip McGrath Education UK Limited

Notes to the Financial Statements

Year Ended 30 June 2024

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures, fittings and equipment

15% - 40% of cost per annum

 

Kip McGrath Education UK Limited

Notes to the Financial Statements

Year Ended 30 June 2024

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Included within intangible fixed assets are costs of acquiring the National Master Franchise and South West Master Franchise licences of Kip McGrath Educational Centres in the UK and Ireland.

Intangible assets are reviewed for impariment at the end of the first full financial period following acquisition and the other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Licences

Over 10 years (the term of the licence)

Website costs

Over 3 years

Goodwill

Over 10 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

Kip McGrath Education UK Limited

Notes to the Financial Statements

Year Ended 30 June 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 64 (2023 - 32).

4

Profit before tax

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

2,575

3,474

Amortisation expense

32,402

6,191

 

Kip McGrath Education UK Limited

Notes to the Financial Statements

Year Ended 30 June 2024

5

Intangible assets

Goodwill
 £

Trademarks, patents and licenses
 £

Website costs
 £

Total
£

Cost or valuation

At 1 July 2023

160,571

420,164

78,469

659,204

Additions acquired separately

226,332

-

-

226,332

At 30 June 2024

386,903

420,164

78,469

885,536

Amortisation

At 1 July 2023

10,010

420,164

68,150

498,324

Amortisation charge

30,302

-

2,100

32,402

At 30 June 2024

40,312

420,164

70,250

530,726

Carrying amount

At 30 June 2024

346,591

-

8,219

354,810

At 30 June 2023

150,561

-

10,319

160,880

Goodwill additions relate to the acquisitions of the Kip McGrath Education Centres in Huddersfield, Stirling and Bradford.

 

Kip McGrath Education UK Limited

Notes to the Financial Statements

Year Ended 30 June 2024

6

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 July 2023

60,720

60,720

Additions

2,135

2,135

At 30 June 2024

62,855

62,855

Depreciation

At 1 July 2023

56,722

56,722

Charge for the year

2,575

2,575

At 30 June 2024

59,297

59,297

Carrying amount

At 30 June 2024

3,558

3,558

At 30 June 2023

3,998

3,998

7

Debtors

2024
£

2023
£

Amounts owed by group undertakings

849,650

842,817

Prepayments

26,865

22,351

Other debtors

62,387

42,829

938,902

907,997

8

Creditors

Creditors: amounts falling due within one year

2024
£

2023
£

Due within one year

Trade creditors

44,095

13,093

Amounts owed to group undertakings

356,432

122,845

Taxation and social security

78,129

59,281

Accruals and deferred income

3,209

8,622

Other creditors

3,646

9,178

Corporation tax

42,004

60,786

527,515

273,805

 

Kip McGrath Education UK Limited

Notes to the Financial Statements

Year Ended 30 June 2024

9

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

       

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £177,770 (2023 - £38,343). This comprises of non-cancellable operating leases over the remaining life of those leases.

11

Parent and ultimate parent undertaking

The company's immediate parent, who is preparing consolidated accounts including the company, is Kip McGrath Educational Centres Limited, incorporated in Australia.

  These financial statements are available upon request from the parent company's registered office, Kip McGrath Educational Centres Limited, 7 Bond Street, Newcastle, New South Wales, NSW 2300, Australia.

 

12

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Neil Hitchings, who signed for and on behalf of PKF Francis Clark on 28 March 2025.