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Registered Number:06550120
ROYAL HOSPITAL SCHOOL ENTERPRISES LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
PAGES FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 AUGUST 2024
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ROYAL HOSPITAL SCHOOL ENTERPRISES LIMITED
REGISTERED NUMBER:06550120
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STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 February 2025.
The notes on pages 2 to 6 form part of these financial statements.
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ROYAL HOSPITAL SCHOOL ENTERPRISES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
Royal Hospital School Enterprises Limited (the Company) is a private company limited by shares incorporated and registered in England and Wales. The registered office and principal place of business is Royal Hospital School, Holbrook, Ipswich, IP9 2RX.
The financial statements are presented in Sterling (£).
2.Accounting policies
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Basis of preparation of financial statements and going concern
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
Up until the 31 August 2024 the Company was supported as part of a wider group and at the year end, owed monies to The Royal Hospital School (part of Greenwich Hospital). In the event that the Company has insufficient funds available to repay the monies owed The Royal Hospital School has undertaken not to require payment until the Company has sufficient surplus funds available.
Accordingly the financial statements have been prepared on a basis other than going concern. This basis includes, where appropriate, writing the Company's assets down to their net realisable value, no such provision was revalued in this instance. No provision has been made for the future costs of terminating the business unless such cost were committed to at the balance sheet date. No such costs had been committed on at 31 August 2024 and therefore no such provision has been included in these financial statements. There are currently no plans to wind up the company.
It is anticipated the costs of closure will be met by another Group company. For the financial statements for the year ended 31 August 2024 there have been no impact of this decision on asset or liability valuations.
The following principal accounting policies have been applied:
Turnover 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. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover comprises revenue recognised by the company in respect of services supplied during the period, exclusive of Value Added Tax. Revenue is recognised by reference to when the properties are let.
Food and drink sales are recognised on the date that goods are supplied to customers.
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ROYAL HOSPITAL SCHOOL ENTERPRISES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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ROYAL HOSPITAL SCHOOL ENTERPRISES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
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.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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.
The Company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each
reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
Up until 31 August 2024 the Company pays 100% of its taxable profits for each financial period to The Royal Hospital School, part of Greenwich Hospital, which is the Company's immediate parent undertaking. This liability was recognised when there is a legally binding obligation. There is a Deed of Covenant in place confirming the distribution to be made each year and therefore the amount is accrued at each period end and paid in the subsequent period. The movement is recognised as a distribution in the Statement of Changes in Equity
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The average monthly number of employees, including directors, during the year was 3 (2023 - 3).
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ROYAL HOSPITAL SCHOOL ENTERPRISES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to parent undertaking
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Other taxation and social security
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Accruals and deferred income
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In connection with Greenwich Hospital's status as a Crown Charity and not a charity registered with the Charities Commission, HMRC are challenging the validity of donations made by Royal Hospital School Enterprises Limited to The Royal Hospital School using gift aid relief and thereby exposing the company to a significant corporation tax liability. The Directors of Royal Hospital School Enterprises Limited are seeking professional advice on this point and there are ongoing negotiations with HMRC. In the event that agreement cannot be reached on this matter, there is an estimated corporation tax liability of circa £240k, before interest and penalties, going back to 2018.
As HMRC's review of this matter has not yet concluded and in light of the ongoing discussions no provision has been included in these financial statements. In the event that settlement is required financial support in settling the liability will be drawn from Greenwich Hospital.
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ROYAL HOSPITAL SCHOOL ENTERPRISES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Related party transactions
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Included in amounts owed to parent undertaking is £621,200 (2023 - £489,340) of expenditure invoiced by The Royal Hospital School in respect of costs incurred on the Company's behalf and a gift aid donation of £43,180 (2023 - £325,396).
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The Company is wholly owned subsidiary of Greenwich Hospital, the immediate controlling party. The ultimate controlling party is the Secretary of State for Defence.
The smallest and largest group which includes the results of the Company is that headed by Greenwich Hospital. Copies of the consolidated financial statements of Greenwich Hospital are publicly available from 3rd Floor, 1–2 Bolt Court, London EC4A 3DQ.
The auditor's report on the financial statements for the year ended 31 August 2024 was unqualified.
The audit report was signed on 18 March 2025 by John Perry (Senior Statutory Auditor) on behalf of Sumer Auditco Limited.
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