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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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KINGSCLERE NURSERIES LIMITED
COMPANY INFORMATION
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KINGSCLERE NURSERIES LIMITED
CONTENTS
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KINGSCLERE NURSERIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their strategic report for the year ended 31 December 2024.
Principal activity The principal activity of the Company is that of an operational group which provides children’s daycare facilities.
Combined headwinds of skills shortages, extra-inflationary input cost increases and continued high background inflation severely limited our ability to grow in 2024. Instead we focused on optimising our operations to gain margin uplift and to consolidate our financial position.
Nonetheless a double digit fee uplift was also achieved. The revenue plan was impacted by skill shortages in the main – putting capacity constraints on nurseries which otherwise would have higher occupancy.
Tightening skills shortage throughout the sector, worsening inflation and Government policy on National Minimum and National Living wage levels resulted in continuing upward pressure on the costs of both recruitment and employment. Contingent staffing is increasingly scarce, so the business is taking steps to rebuild a bank of zero hours labour and to create a Boot Camp for the rapid development of new talent in-house in 2025.
Nonetheless we continue to recognise the value of providing good working conditions and fair salaries for all staff, and pursue a strategy of developing staff individually to enhance their careers and value in our company. We removed some senior figures in our organisation with a view to increasing the flow of new ideas and to uplift our professionalism. This created an immediate improvement in operational efficiency which continues to be built upon into 2025. The Company has a strong management team which will continuously monitor the risk and challenges arising and adapt and respond quickly to challenges and changing market conditions. Increased transparency has reduced decision times while aiding consistency across the group. Restructuring of HR and Operations created new opportunity to streamline processes and improve our operational agility – therefore bringing cost to serve per child hour down.
Turnover for the year has increased by £248,450 (2023: £590,224 increase) from £6,146,122 to £6,394,572 and increased by 4% (2023: 11% increase). Profit after tax (excluding exceptional items) for the financial year has increased by £921,440 (2023: £861,386 decrease) from £170,530 to £1,091,970 and increased by 540% (2023: 83% decrease). EBITDA (excluding exceptional items) has increased by £1,005,025 (2023: £741,330 decrease) from £235,707 to £1,240,732 reflecting an increase of 426% (2023: 76% decrease).
The Company continues to review expenditure and inward investment and considers that the tighter practices, organisation and processes are working for the benefit of shareholders without compromising operational effectiveness or customer satisfaction.
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KINGSCLERE NURSERIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company remains committed to improving outcomes for children while delivering affordable and reliable childcare for working families. Our programme of reinvestment in resources and facilities creates a positive and fulfilling environment for child development and staff to work in. By making financial commitments to our staff and play environments, we demonstrate the value that we place in the future of the business.
This report was approved by the board and signed on its behalf.
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KINGSCLERE NURSERIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to £439,346 (2023 - loss £476,240).
The Directors who served during the year were:
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We remain committed to the sector and are actively pursuing growth through acquisition. Our robust and scalable business infrastructure can support significant organisational growth. All acquisition opportunities are considered on the strength of their cultural fit as well as economic stability and potential, and in terms of what new human capital strength they would contribute to the group.
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KINGSCLERE NURSERIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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KINGSCLERE NURSERIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KINGSCLERE NURSERIES LIMITED
We have audited the financial statements of Kingsclere Nurseries Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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KINGSCLERE NURSERIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KINGSCLERE NURSERIES LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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KINGSCLERE NURSERIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KINGSCLERE NURSERIES LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Because of 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 regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
∙Reviewing OFSTED report and correspondence to identify any material instances of non-compliance with laws and regulations;
∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's 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.
for and on behalf of
Chartered Accountants and Statutory Auditor
201 Cumnor Hill
Cumnor
Oxfordshire
OX2 9PJ
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KINGSCLERE NURSERIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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KINGSCLERE NURSERIES LIMITED
REGISTERED NUMBER: 03092545
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 21 form part of these financial statements.
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KINGSCLERE NURSERIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Kingsclere Nurseries Limited (registered number 03092545) is a private limited company, limited by shares, incorporated in England and Wales. Its registered address is Old Bracknell House, Crowthorne Road North, Bracknell, RG12 7AR. The principal place of business is Cedars Day Nursery, Church Rd, Aldermaston, Berkshire RG7 4LR.
The principal activity of the Company is the provision of pre-school childcare facilities.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements are rounded to the nearest whole pound Sterling which is the functional and presentational currency of the company.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Moebius One Limited as at 31 December 2024 and these financial statements may be obtained from Old Bracknell House, Crowthorne Road North, Bracknell, RG12 7AR.
The Company is a parent Company that is also a subsidiary included in the consolidated financial statements of a parent undertaking established under the law of an EEA state and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Directors have prepared forecasts and projections using what they consider to be reasonable assumptions relating to the Company’s finance performance, current financial position and existing financial resources for a period of at least 12 months from the signing of the financial statements which show the Company to be a going concern.
The Group has bank borrowings subject to various covenants. The Group has prepared forecasts that show the Group will meet its financial covenants for a period of at least 12 months from the date of signing the financial statements. The Directors are, therefore, of the opinion that the Company has the necessary resources to continue as a going concern for the foreseeable future and have therefore prepared the financial statements on a going concern basis.
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following methods.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
Tangible fixed assets Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values. Fixed asset investments At each reporting date the Directors assess whether there is any indication of impairment. Assumptions are made regarding the performance and future cash flows generated by the Company's subsidiaries. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Debtor recoverability At each reporting date the Directors assess whether there is any indication of impairment. Assumptions are made regarding the performance and future cash flows generated by the debtors. A provision and irrecoverable debt loss would be recognised where the carrying amount exceeds the recoverable amount.
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
There are no factors that may affect future tax charges.
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
During the year ended 31 December 2024, management identified an amount of £1,125,000 that related to freehold property but had incorrectly been included within fixed asset investments. The effect of this adjustment on the year ended 31 December 2023 is to decrease fixed asset investments and increase tangible fixed assets by £1,125,000. There is no impact on the reported profit.
The Company is party to a guarantee given to Royal Bank of Scotland PLC in respect of group borrowings. These borrowings are held entirely within Moebius Two Limited, a fellow group company.
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KINGSCLERE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totaling £9,477 (2023: £17,221) were payable to the fund at the balance sheet date and are included in other creditors.
The ultimate parent company at the balance sheet date was
The parent of the smallest and largest group for which group accounts including Kingsclere Nurseries Limited are drawn up is Moebius One Limited. Copies of these accounts may be obtained from their registered office.
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