Company registration number 08561333 (England and Wales)
LEARNING LABS (UK) LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
PAGES FOR FILING WITH REGISTRAR
LEARNING LABS (UK) LTD.
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
LEARNING LABS (UK) LTD.
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 1 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
4
1,901,404
1,293,633
Cash at bank and in hand
66,269
68,100
1,967,673
1,361,733
Creditors: amounts falling due within one year
5
(89,623)
(47,864)
Net current assets
1,878,050
1,313,869
Capital and reserves
Called up share capital
80
80
Capital redemption reserve
20
20
Profit and loss reserves
1,877,950
1,313,769
Total equity
1,878,050
1,313,869

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 18 December 2024 and are signed on its behalf by:
A  Gough
M  Hall
Director
Director
Company Registration No. 08561333
LEARNING LABS (UK) LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 September 2022
80
20
693,531
693,631
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
620,238
620,238
Balance at 31 August 2023
80
20
1,313,769
1,313,869
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
-
564,181
564,181
Balance at 31 August 2024
80
20
1,877,950
1,878,050
LEARNING LABS (UK) LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
1
Accounting policies
Company information

Learning Labs (UK) Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is 9 Apollo Court, Koppers Way, Monkton Business Park South, Hebburn, NE31 2ES.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis. true

The company meets it day to day working capital requirements through cash generated from operations.

The company’s individual forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.

The company is subject to a cross-guarantee with its parent eQuality Solutions Group Limited as part of the eQuality Solutions group.

The directors of eQuality Solutions Group Limited, the ultimate parent undertaking, also manage the eQuality Solutions group’s strategy and risks on a consolidated basis.

On a consolidated basis the directors, after reviewing the eQuality Solutions group’s cashflow forecast for the period of 12 months from the date of approval of these financial statements are of the opinion that the eQuality Solutions group has adequate resources to continue to meet its liabilities over the going concern assessment period.

While the entity does not expect to rely on future support from its ultimate parent undertaking eQuality Solutions Group Limited, or any of its fellow subsidiaries, eQuality Solutions Group Limited has indicated that it will make available such funds as are needed by the entity and that it does not intend to seek repayment of amounts due at the balance sheet date for the foreseeable future.

The directors have prepared cash flow forecasts for the next year which indicate that the group should have sufficient funds through its operating cash flows and existing cash balances to meet its liabilities as they fall due. During the year the group re-negotiated some of the terms on its main external funding and a revised lending agreement has been put in place which includes revised covenants which the directors consider to be more appropriate and achievable for the group going forward. The group’s forecast and projections for the next twelve months show that the group should be able to continue in operational existence for that period and continue to achieve the revised covenants, taking into account reasonable possible changes in trading performance.

LEARNING LABS (UK) LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 4 -

Although the forecasts prepared support the ability of the group to remain a going concern and to be able to trade and meet its debts as they fall due, the underlying trading assumptions used in forecasting are judgemental and difficult to predict and could be subject to significant variation. Nevertheless, the directors are confident that these uncertainties do not cast significant doubt over the group’s ability to continue as a going concern.

Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.5
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 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 debtors 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.

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.

LEARNING LABS (UK) LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

 

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

 

Trade creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.6
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.

1.7
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 profit and loss account 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.

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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

LEARNING LABS (UK) LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
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.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
3
4
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
98,077
25,114
Amounts owed by group undertakings
1,799,419
1,265,810
Other debtors
3,908
2,709
1,901,404
1,293,633
5
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
-
0
172
Amounts owed to group undertakings
15,625
-
0
Taxation and social security
57,219
31,809
Other creditors
16,779
15,883
89,623
47,864
6
Audit report information

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.

LEARNING LABS (UK) LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Audit report information
(Continued)
- 7 -
Senior Statutory Auditor:
Christopher Potter BA (Hons) ACA
Statutory Auditor:
Azets Audit Services
7
Related party transactions
Transactions with related parties

The Company has taken advantage of exemptions within FRS 102 S1A not to disclose transactions with other wholly owned group undertakings.

 

8
Parent company

A Gough is the ultimate controlling party by virtue of his ownership of the majority of the issued share capital of eQuality Solutions Group Limited.

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