| London School of Management Education Limited |
| Registered number: |
06368318 |
| Strategic Report |
|
| The directors present their strategic report of the company for the year ended 31 August 2024. |
|
| Business Overview |
| This strategic report aims to present a detailed analysis of the London School of Management Education (LSME)'s current position while outlining a strategic plan to strengthen its performance, competitive edge, and influence within rapidly evolving landscape of the higher education sector in the UK. It highlights critical areas for development, as well as the academic quality, student engagement, research and innovation, financial resilience, and community partnerships. |
|
| Our commitment to high-quality education remained firm, with a strong emphasis on student engagement, achievement, retention, and progression, as aligned with our current TEF Silver rating. Additionally, we prioritised institutional growth, the expansion of our academic portfolio and improvement of our international collaborations. |
| We drafted our new Access and Participation Plan for the 2025-26 to 2028-29 to be submitted to the OfS, emphasising a thorough evaluation of the Equal Opportunity Risk Register and its applicability to the LSME context. The ongoing Access and Participation outreach projects also made remarkable strides in its strategic objectives. Internal research suggested that the provision of financial support for our students indeed correlated with their likelihood to progress from the foundation year to higher education. Our project with local schools also made significant impact on the attainment of pupils who undertook their GCSEs in Maths, English and Science in the 2023-24 Academic Year. |
|
| Our 11th Annual International Research Conference was organised in 2024 with the well-established theme of Responsible Research and Innovation (RRI), and explored the ‘Re-visioning Practice in Education, Healthcare and Business’ through contributions from internationally renowned figures, industry experts and researchers from different parts of the world. |
|
| The 2024 LSME Annual Convocation was held with great success, featuring a grand ceremony attended by esteemed guests from academia, local government, politics, diplomacy and local business. During this event, we celebrated the accomplishments of our graduates, recognising their hard work and dedication. Additionally, we reiterated our dedication to supporting our Alumni. |
|
| Statement of Corporate Governance |
| The two main components of the institutional governance system, namely Corporate Governance and Academic Governance have continued to operate collaboratively in the 2023-24 Academic Year. The Corporate Governance of LSME is overseen by the Board of Directors. On the other hand, Academic Governance falls under the purview of the Academic Board, supported by various committees and sub-committees. |
| The Governing Body, entrusted with matters of fundamental operational concern, typically acknowledges and defers to the Academic Board's role in academic governance. Nevertheless, it seeks assurance from the Academic Board regarding the effectiveness of the institution's academic governance system. |
|
|
| London School of Management Education Limited |
| Registered number: |
06368318 |
| Strategic Report |
|
|
| Board of governance and academic board |
| LSME has consistently upheld a strong reputation for academic excellence, quality, professional standards, and effective management practices. This is sustained through a robust governance system overseeing both academic and managerial operations. The Board of Directors, Senior Management Committee, and Academic Board, supplemented by various other committees, collectively contribute to maintaining and enhancing these high standards. |
| The Board of Directors (BoD) is the Governing Body of LSME and has the overall responsibility for the strategic planning and direction of all operations and management of the institute. It delegates management responsibilities to the Senior Management Committee and the Academic Board which are supported by various committees. The Board is made up of Executive Directors, Non-executive Directors as Externals and Senior Members of Staff. The Board members fulfil their roles in accordance with the constitutional document of LSME, its Student Charter and are subject to regulations for the operation of higher educational institutions as determined by the government and other regulators. |
| The BoD is also responsible for the statutory compliances of the College to ensure that it meets the laws and regulations of a company limited by shares, the regulations of its regulator and awarding bodies and the expectations of students, staff and shareholders. |
| The governance arrangement of the College aims to meet the expectations of the UK Higher Education sector, in the core values and primary elements of governance as set out in the Higher Education Code of Governance, published by Committee of Universities Chairs (CUC). |
| Audit Committee monitors and advises the BoD on the adequacy and effectiveness of arrangements for corporate governance, risk management and oversees any statutory and other regulatory responsibilities. The BoD also has taken the responsibility of ensuring regularity and propriety in the use of public funding. The use of such public funding is decided in the board meetings and recorded by way of minutes. |
|
| Statement of internal control |
| Our risk management framework, overseen by the Executive Director, in collaboration with the Board of Directors and the Audit Committee continues to support the sustainability of all our strategic objectives. This framework aims to monitor and mitigate diverse risks that could potentially impact the achievement of the institution's operations. The introduction of a Risk Register and the ongoing deliberation of risks occur within board and committee meetings, reflecting a proactive commitment to managing potential challenges. |
| The Executive Director, acting on behalf of the BoD, is responsible for the daily execution of internal controls at LSME. While the BoD makes significant decisions, their implementation is carried out by the Executive Director. The Audit Committee conducts periodic reviews of internal control procedures, with noteworthy observations discussed by the BoD. Recommendations stemming from these discussions are then executed by the Executive Director. These internal control mechanisms guarantee the consistent and purposeful utilization of public funds in strict accordance with their intended objectives. |
|
| Internal Control and Risk Management |
| The BoD assumes responsibility for ensuring the College's adherence to statutory agreements, ensuring alignment with the laws and regulations applicable to a company limited by shares. This includes compliance with the regulations set forth by its regulator and awarding organisations, as well as meeting the expectations of students, staff, and shareholders. The BoD plays a crucial role in overseeing that the institution operates within the legal framework and fulfils its obligations to various stakeholders. |
|
| London School of Management Education Limited |
| Registered number: |
06368318 |
| Strategic Report |
|
| The governance structure of the College is designed to align with the expectations of the UK higher education sector, incorporating core values and key governance elements outlined in the Higher Education Code of Governance by the Committee of University Chairs (CUC). The Audit Committee plays a pivotal role by monitoring and providing advice to the Board of Directors (BoD) on the sufficiency and effectiveness of corporate governance arrangements, risk management practices, and the oversight of statutory and regulatory responsibilities. |
| BoD has assumed the crucial responsibility of ensuring the regularity and propriety in the utilisation of public funding. The governance mechanism is designed to integrate the system of internal controls and risk management, ensuring a cohesive flow through the overall governance structure. This approach contributes to the prudent and accountable management of public funds within the institution. |
| The Academic Committee oversees the efficiency, effectiveness, and standardisation of academic operations, while the Senior Management Committee is responsible for administrative operations. The Executive Director, BoD, and Audit Committee collectively ensure the implementation of an effective Risk Management Framework at LSME. This Framework, including the initiation of a Risk Register and discussions on risks, is actively addressed in board and committee meetings. The goal is to monitor and manage diverse risks that may impact the institution's operational sustainability. |
| The internal control mechanisms are in place to ensure the consistent and purposeful utilisation of public funds, aligning strictly with the intended purposes for which those funds were allocated. This approach helps maintain financial integrity and accountability in the use of public resources. |
| The Audit Committee conducts periodic reviews of internal control procedures, with significant observations discussed by the BoD. Recommendations resulting from these discussions are then implemented by the Executive Director. The Academic Board has established a rigorous reporting mechanism to ensure accountability across academic departments and admissions through regular meetings and documentation. Meanwhile, administrative affairs fall under the purview of the Senior Management Committee, which convenes periodically. |
| All internal control matters are reported to the Board of Directors, and the recommendations are integrated back into the system through the Academic Board and the Senior Management Committee, ensuring a continuous improvement cycle in governance and control processes. |
| The foundation of our strong financial management and controls is rooted in the dedicated efforts of the Senior Management Committee. Regular reporting and approvals are sought through the Board of Directors, ensuring transparency and accountability in our financial processes. The primary emphasis of LSME's financial strategy revolves around financial prudence and sustainability, reflecting a commitment to sound fiscal practices for the long-term stability of the institution. |
|
| Internal Quality and Audits Committee has a broad range of activities involving governance, risk management and management controls over the efficiency and effectiveness of operations (including the safeguarding of assets), the reliability of financial and management reporting, and compliance with laws and regulations. It also reviews the extent to which academic and non-academic action plans are implemented and monitored. The committee comprises of an internal quality assurance manager, external independent financial adviser and a senior member of staff. |
| The Internal Quality Audit Committee plays a pivotal role in guaranteeing that all academic, admissions, and administrative processes adhere to established quality standards and meet the targets set for the academic year. Simultaneously, the Financial Control Committee focuses on scrutinizing budgeting processes, resource allocations, accountability measures, and expenditures to ensure financial responsibility and efficiency within the institution. These committees collectively contribute to maintaining high standards and effectiveness across various facets of the organisation. |
|
| London School of Management Education Limited |
| Registered number: |
06368318 |
| Strategic Report |
|
| The Health and Safety Team is responsible for supervising the safety and security of the premises. This committee reports its findings to the Senior Management Committee, offering insights on the adequacy of arrangements for internal control, risk management, governance, value for money, and the management and quality assurance of data. By providing an informed opinion on these critical aspects, the committee plays a key role in ensuring the overall well-being, security, and effectiveness of the institution's operations. |
| In addition, the policies, mechanisms and processes put in place to ensure robust internal controls and risk management are as below: |
| Work carried out annually by the Internal Quality and Audit Committee include: |
| a) Keeping under review, the effectiveness control and governance arrangements, including for the management and quality assurance of data submitted to the Higher Education Statistics Agency (HESA)/JISC, OfS and other funding bodies. |
| b) Reviewing the risk register, including the senior management's assessment of risk and to ensure that the controls and plans to mitigate risks are appropriate. The committee provided guidance during 2023-24 Academic Year for the review of the operational risk register for all aspects of our business. The team advised the Senior Management Committee on the risk register and monitored the implementation of agreed audit-based recommendations. |
| c) The team also considered quality systems within the academic provision and ensured that misconducts are properly investigated and appropriate actions are taken to mitigate such risks. |
| d) Other roles of this committee is recommending the College's Financial Statements to the Board of Directors for approval including and assuring the Board that the Financial Statements are in accordance with OfS's accounts directives and that the accounting policies and judgments are appropriate. |
|
| Research and development |
| During the 2023-24 Academic Year, LSME continued to pay more attention to elements of Responsible Research and Innovation (RRI), such as public engagement, open access, gender, ethics and governance. This was largely executed through dialogue with international institutions through its research conferences. |
| LSME has established valuable international partnership by signing a Memorandum of Understanding (MoU) with a reputable academic institution abroad in the 2023-24 Academic Year. The agreements outline firm plans for mutual support in promoting Business Management training, facilitating the development of young researchers, conducting collaborative research projects, and facilitating student and teacher exchange programs. These initiatives reflect LSME's commitment to global collaboration and the enhancement of educational and research opportunities for its community. |
| Several research publications have been published following the Research Conferences conducted by LSME. For example, the research proceedings booklets and research books were published on an open-access basis and are readily available to researchers and educators on LSME's website as an effort to expand the body of knowledge in the relevant fields. |
|
| London School of Management Education Limited |
| Registered number: |
06368318 |
| Strategic Report |
|
| Principal risks and uncertainties with mitigating actions. |
During the 2023-24 Academic Year, our Diploma in Education and Training (DET) programme received an unfavourable Ofsted report-a judgment we strongly contested, given our consistent track record of high-quality delivery over the past decade, as recognised by Pearson Education, the awarding body. This report coincided with our deliberations on whether to seek accreditation for the new Diploma in Teaching (DIT) programme, which replaces the DET from September 2024. However, since Pearson was not offering the DIT, we were already evaluating alternative options. In response to the report, we made a strategic decision not to pursue the DIT and instead focused on the following mitigating actions: 1. Minimising Student Disruption : We swiftly implemented a teach-out plan for the remaining continuing DET students, scheduled to complete their studies on time. 2. Exploring Alternative Qualifications: To better align with student needs, we sought and secured approval from our validation partners to deliver a BA (Hons) in Education Studies programme starting in 2024-25 AY. Given the small cohort size and our ability to transition seamlessly to alternative educational programmes aligned with our institutional strategy, the Ofsted report had no impact on our overall provision of services |
| Our major challenge to find a credible third party organisation to oversee the running of our AEB grant remained in the 2023-24 Academic Year. This can be potentially challenging in the current competitive market but the board will continue to do its best to get this project started in due course. |
| Another potential challenge for us is joining the Register of Apprenticeship Training Organisations as soon as possible to support our ability to apply for grants for vocational programmes. We will continue to keep watch on call for bids for grants awarded by the OfS for degree apprenticeships. |
| Difficulties in securing high-level employment for leavers of HE is apparent across all HE sectors with similar student demographic structure as that of LSME. However, the introduction of the Employability and Enterprise Hub (EEH) and the Graduate First portal to support students with the requisite skills for employability will probably help us to overcome this difficulty. The impact of these initiative has started emerging in our existing student population and was even manifested in the student submission to the TEF 2023. Our successive GO survey results in the coming years will assess the overall impact of this initiative on graduate level employment and further studies. |
| Future developments |
The Directors consider the future developments affecting the company to be covered within the ''Review of Business'' section of this strategic report. Additionally, the following areas will be considered. 1. We will continue to improve the uptake and provisions under the current EEH and Graduate First using feedback from students and external stake holders. 2. We will expand our range of educational programmes to better meet the diverse needs of our students. 3. We will continue to expand our external partnerships and engage more students with local employers to find suitable opportunities for work placement and volunteering for our students. 4. We will continue to work collaboratively with a team of experts to develop our Degree Apprenticeship programmes and apply for grants from the OfS in future to support the running of such programmes. 5. LSME is currently discussing the processes for the introduction of the LLE grants with its validation partner and will ensure we are prepared for development of flexible programmes in the near future under the new student funding proposal. |
|
| London School of Management Education Limited |
| Registered number: |
06368318 |
| Strategic Report |
|
| Financial instrument risk |
| The company has normal level exposure to price, credit, liquidity and cash flow risks arising from trading activities which are mostly conducted in sterling. |
|
| Key Performance Indicators: |
The Key performance indicators for the company are a combination of factors that include number of students, offering wide choices of under-graduate and post-graduate study streams and revenue generated from offering these programmes. During the year the number of students increased from 679 in 2022/23 to 696 in 2023/24 which is a increase of 2.5% and the revenue increased from £4,727,146 in 2022/23 to £5,075,271 in 2023/24 which is a increase of 6.8%. The operating profit increased from £1,318,696 in 2022/23 to £1,325,128 in 2023/24 which is an increase of 0.48%. Capital and reserves as at 31 August 2024 was £6,280,556 compared to £5,388,452 as 31 August 2023, which is a significant improvement in the company’s financial position. |
|
|
| Dr Sarita Parhi |
| Director |
| 30 January 2025 |
|
|
| Irregularities, including fraud, are instances of non-compliance with laws and regulations |
| 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: |
|
| We focused on significant laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, the applicable accounting framework, UK tax legislation and any other applicable laws and regulation that may have material effect on the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. |
|
| Fraud |
| We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedure included enquiry with management and those charged with governance regarding any known or suspected instances of fraud, obtaining an understanding of the Company’s policies and procedures relating to detecting risk of fraud and discussion amongst the engagement team as to how and where fraud might occur in the financial statements. |
|
| We assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
|
| • Identifying and assessing the measures management has in place to prevent and detect fraud, |
| • Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process, and |
| • Identifying and testing journal entries, in particular those journal entries posted around year end and reconciliation of journal listing; |
| • Testing on sample basis the revenue transactions during the year with the underlying supporting documents ensuring the accuracy of amount recorded; |
|
| As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential existed within the recording and recognition of revenue. |
|
| Our procedures in this respect were focused on the origination of revenue and directed towards ensuring the accuracy and completeness of the same by undertaking testing on a sample basis of the revenue items to ensure that revenue had been recorded correctly and in the appropriate accounting period. We consider that the work we undertook in this regard was considered capable of detecting irregularities and fraud within the sales cycle. |
|
| Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases in the event of non-compliance with laws or regulations. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. |
|
| 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. |
|
| 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 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. |
|
|
| Hassan Sheikh |
| (Senior Statutory Auditor) |
Unit 8, Dock Offices |
| for and on behalf of |
Surrey Quays Road |
| Adroit Auditing Limited |
London |
| Statutory Auditor |
| 30 January 2025 |
SE16 2XU |
|
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
| 2 |
Analysis of turnover |
2024 |
|
2023 |
| £ |
£ |
|
|
Fee Income |
5,075,271 |
|
4,727,146 |
|
Office for Students grants |
311,920 |
|
221,618 |
|
|
|
|
|
|
5,387,191 |
|
4,948,764 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
5,387,191 |
|
4,948,764 |
|
|
|
|
|
|
|
|
|
|
| 3 |
Operating profit |
2024 |
|
2023 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
126,699 |
|
118,753 |
|
Operating lease rentals - land and buildings |
267,996 |
|
267,996 |
|
Auditors' remuneration for audit services |
12,000 |
|
15,000 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Directors' emoluments |
2024 |
|
2023 |
| £ |
£ |
|
|
Emoluments |
145,000 |
|
145,000 |
|
Company contributions to defined contribution pension plans |
115,597 |
|
75,597 |
|
Medical Insurance |
- |
|
4,504 |
|
|
|
|
|
|
260,597 |
|
225,101 |
|
|
|
|
|
|
|
|
|
|
|
Highest paid director: |
|
Emoluments |
75,000 |
|
75,000 |
|
Medical Insurance |
- |
|
2,252 |
|
Company contributions to defined contribution pension plans |
57,799 |
|
37,798 |
|
|
|
|
|
|
132,799 |
|
115,050 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Staff costs |
2024 |
|
2023 |
| £ |
£ |
|
|
Wages and salaries |
1,209,472 |
|
1,163,379 |
|
Social security costs |
127,172 |
|
115,855 |
|
Medical Insurance |
- |
|
4,504 |
|
Other pension costs |
140,902 |
|
97,058 |
|
|
|
|
|
|
1,477,546 |
|
1,380,796 |
|
|
|
|
|
|
|
|
|
|
No member of staff is paid over a full-time equivalent basic salary of £100,000 per annum. |
|
|
Two directors to whom retirement benefits are accruing are the Key Management Personnels and highest paid director is also the head of provider. |
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Academic |
19 |
|
20 |
|
Non-academic |
15 |
|
17 |
|
|
|
|
|
|
34 |
|
37 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Interest payable |
2024 |
|
2023 |
| £ |
£ |
|
|
Bank loans and overdrafts |
209 |
|
3,562 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Remuneration for the head of provider |
2024 |
|
2023 |
| £ |
£ |
|
Wages and salaries |
75,000 |
|
75,000 |
|
Pension contribution |
57,799 |
|
37,798 |
|
Medical Insurance |
- |
|
2,252 |
|
Dividends |
48,450 |
|
48,450 |
|
|
|
|
|
|
181,249 |
|
163,500 |
|
|
|
|
|
|
|
|
|
|
The head of the provider is responsible for daily operation of the management and the academic leadership. |
|
|
|
The head of the provider's basic salary is 1.97 times and total remunerationss represent 6.1 times the median total remunerations of staff, where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by the provider of its staff. |
|
|
The provider has not paid any compensation for loss of office to any staff member during the year. |
|
|
| 8 |
Access participation plan |
|
|
The provider has an access and participation plan that has been approved by the OfS' director of fair access and participation. |
|
|
below is the breakdown of the expenditure during the year by type: |
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
Access investments |
281,348 |
|
276,108 |
|
Financial support provided to students |
148,800 |
|
172,350 |
|
Support for disabled students |
9,950 |
|
24,550 |
|
Research and evaluation |
11,064 |
|
11,064 |
|
|
|
|
|
|
451,162 |
|
484,072 |
|
|
|
|
|
|
|
|
|
|
Access and participation plan expenditures include staff costs of £161,279 and these costs are already included in the overall staff costs figure included in the financial statements as disclosed in Note 5. |
|
|
|
| 9 |
Taxation |
2024 |
|
2023 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
321,436 |
|
293,968 |
|
Adjustments in respect of previous periods |
- |
|
(2,661) |
|
|
|
|
|
|
321,436 |
|
291,307 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
45,243 |
|
6,189 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
366,679 |
|
297,496 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
Profit on ordinary activities before tax |
1,353,783 |
|
1,328,679 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
19% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
338,446 |
|
252,449 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
(17,010) |
|
41,519 |
|
Adjustments to tax charge in respect of previous periods |
- |
|
(2,661) |
|
|
Current tax charge for period |
321,436 |
|
291,307 |
|
|
|
|
|
|
|
|
|
| 10 |
Tangible fixed assets |
|
|
|
|
Land and buildings |
|
Plant and machinery |
|
Total |
|
|
|
|
At cost |
|
At cost |
| £ |
£ |
£ |
|
Cost or valuation |
|
At 1 September 2023 |
643,629 |
|
546,878 |
|
1,190,507 |
|
Additions |
28,115 |
|
194,944 |
|
223,059 |
|
At 31 August 2024 |
671,744 |
|
741,822 |
|
1,413,566 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 September 2023 |
152,077 |
|
357,070 |
|
509,147 |
|
Charge for the year |
67,175 |
|
59,524 |
|
126,699 |
|
At 31 August 2024 |
219,252 |
|
416,594 |
|
635,846 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 August 2024 |
452,492 |
|
325,228 |
|
777,720 |
|
At 31 August 2023 |
491,552 |
|
189,808 |
|
681,360 |
|
|
|
|
|
|
|
|
|
|
|
| 11 |
Debtors |
2024 |
|
2023 |
| £ |
£ |
|
|
Other debtors |
4,633,451 |
|
4,199,611 |
|
Prepayments and accrued income |
78,262 |
|
59,163 |
|
|
|
|
|
|
4,711,713 |
|
4,258,774 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
| £ |
£ |
|
|
Trade creditors |
71,993 |
|
106,424 |
|
Corporation tax |
324,586 |
|
293,969 |
|
Other taxes and social security costs |
32,376 |
|
30,590 |
|
Other creditors |
319,817 |
|
306,306 |
|
Accruals and deferred income |
22,926 |
|
20,536 |
|
|
|
|
|
|
771,698 |
|
757,825 |
|
|
|
|
|
|
|
|
|
|
| 13 |
Deferred taxation |
2024 |
|
2023 |
| £ |
£ |
|
|
Accelerated capital allowances |
81,307 |
|
36,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 September |
36,063 |
|
29,874 |
|
Charged to the profit and loss account |
45,244 |
|
6,189 |
|
|
At 31 August |
81,307 |
|
36,063 |
|
|
|
|
|
|
|
|
|
|
|
| 14 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
100 |
|
100 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| 15 |
Profit and loss account |
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 September |
5,388,352 |
|
4,452,169 |
|
Profit for the financial year |
987,104 |
|
1,031,183 |
|
Dividends |
(95,000) |
|
(95,000) |
|
|
At 31 August |
6,280,456 |
|
5,388,352 |
|
|
|
|
|
|
|
|
|
|
| 16 |
Dividends |
2024 |
|
2023 |
| £ |
£ |
|
|
Dividends on ordinary shares (note 15) |
95,000 |
|
95,000 |
|
|
|
|
|
|
|
|
|
|
|
| 17 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| £ |
£ |
£ |
£ |
|
Falling due: |
|
within one year |
267,996 |
|
267,996 |
|
- |
|
- |
|
within two to five years |
698,465 |
|
698,465 |
|
- |
|
- |
|
|
966,461 |
|
966,461 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
| 18 |
Related party transactions |
|
|
Included in other debtors is an amount of £4,615,595 (2023: £4,186,591) receivable from Orbit Properties London Ltd which is connected by virtue of common shareholding and directors in that company. During the year the company paid rent of £267,996 (2023: £267,996) to Orbit Properties London Ltd which is connected by virtue of common shareholding and directors in that company. The company has also provided guarantee to HSBC Bank against loan taken by Orbit Properties London Ltd by way of a fixed and floating charge over all assets of the company. |
|
| 19 |
Controlling party |
|
|
The directors of the company control the company by virtue of a controlling interest of the issued share capital. |
|
|
| 20 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
| 21 |
Legal form of entity and country of incorporation |
|
|
London School of Management Education Limited is a private company limited by shares and incorporated in England. |
|
|
| 22 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Cambrian House |
|
509-511 Cranbrook Road |
|
Ilford |
|
United Kingdom |
|
IG2 6EY |