Sherfield School Limited
Annual Report and Financial Statements
For the year ended 31 August 2024
Company Registration No. 04885051 (England and Wales)
Sherfield School Limited
Company Information
Directors
L M Meyer
M D Simmons
F G White
Secretary
Hawksford UK Services Limited
Company number
04885051
Registered office
Sherfield-on-Loddon
Hook
Hampshire
United Kingdom
RG27 0HU
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Sherfield School Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 23
Sherfield School Limited
Strategic Report
For the year ended 31 August 2024
Page 1

The directors present the strategic report for the year ended 31 August 2024.

Fair review of the business

The company has had a challenging year in 2024. An Interim Head was appointed from August 2023 to July 2024, which created some uncertainty within the community, especially as the nursery was also closed from the 5th of March to the 6th of June 2024. The number of boarding pupils has also declined slightly due to a decrease in international boarding students. Consequently, this has led to a slight reduction in overall pupil numbers compared to the previous year. 

The ongoing high inflation has led to the company incurring a loss for the current financial year due to increased expenses on utilities, maintenance, rates, and fees.

Principal risks and uncertainties

In common with many independent schools, the company faces risks in attracting new pupils and retaining existing ones. As of January 2025, tax breaks for independent schools have ended, and 20% VAT has been added to education and boarding fees. This situation has impacted families struggling to afford the fees, creating considerable uncertainty and risk for the business.

The school also continues to face pressure from rising inflation. Amid ongoing teacher shortages, in May 2025, the government announced a pay award for teachers of 4%, which was originally advised at 2.8%.

The company mitigates these risks by ensuring that the school remains attractive to both prospective and current parents. This is achieved through a combination of a competitive fee structure, training and performance monitoring of the teaching staff, ongoing investment in school infrastructure and facilities available to pupils, and continued monitoring of pupil performance to ensure that the needs of both parents and their children are ultimately met. The school is in an excellent position to thrive, given its strong reputation and increased engagement with stakeholders.

Key performance indicators

The financial results for the year are presented in the profit and loss account on page 8 of these financial statements. The company's turnover for the year amounted to £10,661,060. This increase in turnover is attributed to a rise in tuition fees during the year.

On behalf of the board

F G White
Director
26 June 2025
Sherfield School Limited
Directors' Report
For the year ended 31 August 2024
Page 2

The directors present their annual report and financial statements for the year ended 31 August 2024.

Principal activities

The principal activity of the company continued to be that of the provision of education services for children up to the age of 18.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

L M Meyer
M D Simmons
F G White

Velocity Company Secretarial Services Limited were appointed Corporate Secretary on the 14th November 2023.

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Sherfield School Limited
Directors' Report (Continued)
For the year ended 31 August 2024
Page 3
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Change in ownership

On the 1st September 2023, Education in Motion (EiM) has taken on ownership of Sherfield School Limited

 

EiM is a family of schools with a clear purpose; to empower pupils with knowledge, skills and motivation to make a positive difference for people, society and the planet. EiM has a global presence around the world with over 11,000 pupils.

 

As EiM's first school in the UK, this marks a milestone for EiM and reflects the commitment and ambition in continuing to expand our global presence with mission-aligned schools. Our dedication to delivering exceptional educational experiences continues to be our guiding principle. We are excited to work with Sherfield and its community and to build on the school's many strengths.

 

EiM will provide the financial and operation support required in the period of transition. In particular, a line of finance to provide some short term funding was put in place post balance sheet and EiM provided a letter of support to the directors that they will provide sufficient financial support to enable the company to meet its liabilities as they fall due for at least 12 months following approval of these financial statements and will not seek repayment of amounts owed to any company within EiM unless the company's cash flow permits this.

 

On behalf of the board
F G White
Director
26 June 2025
Sherfield School Limited
Directors' Responsibilities Statement
For the year ended 31 August 2024
Page 4

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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 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.

Sherfield School Limited
Independent Auditor's Report
To the Members of Sherfield School Limited
Page 5
Opinion

We have audited the financial statements of Sherfield School Limited (the 'company') for the year ended 31 August 2024 which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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 UK, including the FRC’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.

Conclusions relating to going concern

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.

Other information

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.

Sherfield School Limited
Independent Auditor's Report (Continued)
To the Members of Sherfield School Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

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.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Sherfield School Limited
Independent Auditor's Report (Continued)
To the Members of Sherfield School Limited
Page 7
Auditor's responsibilities for the audit of the financial statements

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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

Sherfield School Limited
Independent Auditor's Report (Continued)
To the Members of Sherfield School Limited
Page 8

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. The 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.

Shivani Kothari
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
27 June 2025
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Sherfield School Limited
Profit and Loss Account
For the year ended 31 August 2024
Page 9
2024
2023
Notes
£
£
Turnover
3
10,661,060
10,072,026
Cost of sales
(6,148,955)
(5,718,054)
Gross profit
4,512,105
4,353,972
Administrative expenses
(4,879,413)
(3,989,680)
Other operating income
44,748
253,844
Operating (loss)/profit
4
(322,560)
618,136
Finance costs
(38,819)
-
Inter-company balances written off
-
30,329,559
(Loss)/profit before taxation
(361,379)
30,947,695
Tax on (loss)/profit
7
-
0
-
0
(Loss)/profit for the financial year
(361,379)
30,947,695

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

Sherfield School Limited
Statement of Comprehensive Income
For the year ended 31 August 2024
Page 10
2024
2023
£
£
(Loss)/profit for the year
(361,379)
30,947,695
Other comprehensive income
-
-
Total comprehensive income for the year
(361,379)
30,947,695
Sherfield School Limited
Balance Sheet
As at 31 August 2024
Page 11
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
11,782,097
11,179,260
Current assets
Debtors
10
526,349
283,298
Cash at bank and in hand
1,128,661
803,949
1,655,010
1,087,247
Creditors: amounts falling due within one year
11
(7,738,115)
(6,206,136)
Net current liabilities
(6,083,105)
(5,118,889)
Net assets
5,698,992
6,060,371
Capital and reserves
Called up share capital
13
2
2
Profit and loss reserves
5,698,990
6,060,369
Total equity
5,698,992
6,060,371
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
F G White
Director
Company Registration No. 04885051
Sherfield School Limited
Statement of Changes in Equity
For the year ended 31 August 2024
Page 12
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 September 2022
2
(24,887,326)
(24,887,324)
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
30,947,695
30,947,695
Balance at 31 August 2023
2
6,060,369
6,060,371
Year ended 31 August 2024:
Loss and total comprehensive income for the year
-
(361,379)
(361,379)
Balance at 31 August 2024
2
5,698,990
5,698,992
Sherfield School Limited
Statement of Cash Flows
For the year ended 31 August 2024
Page 13
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
1,415,202
742,983
Investing activities
Purchase of tangible fixed assets
(1,090,490)
(386,213)
Net cash used in investing activities
(1,090,490)
(386,213)
Net increase in cash and cash equivalents
324,712
356,770
Cash and cash equivalents at beginning of year
803,949
447,179
Cash and cash equivalents at end of year
1,128,661
803,949
Sherfield School Limited
Notes to the Financial Statements
For the year ended 31 August 2024
Page 14
1
Accounting policies
Company information

Sherfield School Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sherfield-on-Loddon, Hook, Hampshire, United Kingdom, RG27 0HU.

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.

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, which have been applied and adopted consistently throughout the year, are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

1.2
Going concern

As at 31 July 2024, the Company is in a net current liabilities position of £6,083,105 (2023: £5,118,889). These financial statements are prepared on a going concern basis as the ultimate holding corporation has undertaken to provide continuing financial support to enable the Company to pay its debts as and when they fall due for at least the next twelve months from the date of authorisation of the financial statements. trueTherefore, these accounts have been prepared on the going concern basis.

 

 

1.3
Turnover

Turnover represents the value of fees charged for educational and other related services delivered to pupils of the school in the accounting year, net of discounts.

Sherfield School Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
1
Accounting policies
(Continued)
Page 15

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold buildings
50 years
Plant and equipment
3 years
Fixtures and fittings
5 years
Computers
3 years
Motor vehicles
5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any).

Sherfield School Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
1
Accounting policies
(Continued)
Page 16

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

1.8
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Sherfield School Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
1
Accounting policies
(Continued)
Page 17
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

Sherfield School Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
1
Accounting policies
(Continued)
Page 18
1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

 

Depreciation of assets

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of the property, plant and equipment and for the useful economic lives for each class of asset.

Recoverability of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Sherfield School Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
Page 19
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
School fees
10,661,060
10,072,026
2024
2023
£
£
Turnover analysed by geographical market
UK
10,661,060
10,072,026
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
487,653
431,138
Operating lease charges
10,959
33,706
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
42,031
15,000
For other services
Audit-related assurance services
34,905
15,000
All other non-audit services
7,126
-
0
42,031
15,000
6
Employees

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

2024
2023
Number
Number
152
137
Sherfield School Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
6
Employees
(Continued)
Page 20

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,001,031
4,253,361
Social security costs
460,141
403,145
Pension costs
496,331
432,362
5,957,503
5,088,868
7
Taxation

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(361,379)
30,947,695
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 21.52%)
(68,662)
6,659,944
Tax effect of income not taxable in determining taxable profit
-
0
(6,513,571)
Change in unrecognised deferred tax assets
68,662
(234,520)
Effect of change in corporation tax rate
-
0
31,344
Depreciation on assets not qualifying for tax allowances
-
0
56,803
Taxation charge for the year
-
-
8
Intangible fixed assets
Software
£
Cost
At 1 September 2023 and 31 August 2024
49,986
Amortisation and impairment
At 1 September 2023 and 31 August 2024
49,986
Carrying amount
At 31 August 2024
-
0
At 31 August 2023
-
0
Sherfield School Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
Page 21
9
Tangible fixed assets
Leasehold buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2023
13,794,147
46,674
4,051,503
160,999
49,250
18,102,573
Additions
720,825
77,799
103,769
100,205
87,892
1,090,490
At 31 August 2024
14,514,972
124,473
4,155,272
261,204
137,142
19,193,063
Depreciation and impairment
At 1 September 2023
2,964,385
18,735
3,845,288
72,685
22,220
6,923,313
Depreciation charged in the year
291,235
28,569
86,307
55,916
25,626
487,653
At 31 August 2024
3,255,620
47,304
3,931,595
128,601
47,846
7,410,966
Carrying amount
At 31 August 2024
11,259,352
77,169
223,677
132,603
89,296
11,782,097
At 31 August 2023
10,829,762
27,939
206,215
88,314
27,030
11,179,260
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
92,291
73,120
Other debtors
360
3,060
Prepayments and accrued income
433,698
207,118
526,349
283,298
11
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
477,942
638,247
Amounts owed to group undertakings
4,943,809
3,113,229
Taxation and social security
107,445
100,415
Deferred income
1,490,818
1,786,460
Other creditors
633,227
431,843
Accruals and deferred income
84,874
135,942
7,738,115
6,206,136
Sherfield School Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
Page 22
12
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
496,331
432,362

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

13
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Allotted, called up and fully paid of £1 each
2
2
2
2
14
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
687,113
687,361
Between two and five years
2,722,260
2,664,703
In over five years
6,132,123
6,820,000
9,541,496
10,172,064
15
Related party transactions
Remuneration of key management personnel

The company has taken advantage of the exemption in Financial Reporting Standard Number 102 section 33, 1A from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.

16
Ultimate controlling party

Education in Motion UK Limited, a company incorporated in England and Wales, is the immediate parent undertaking of Sherfield School Limited. The ultimate parent undertaking of Education in Motion UK Limited is Education Index Management Limited, a company incorporated in Cayman Islands.

Sherfield School Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2024
Page 23
17
Cash generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(361,379)
30,947,695
Adjustments for:
Depreciation and impairment of tangible fixed assets
487,653
431,138
Movements in working capital:
(Increase)/decrease in debtors
(243,051)
3,577
Increase/(decrease) in creditors
1,531,979
(30,639,427)
Cash generated from operations
1,415,202
742,983
18
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
803,949
324,712
1,128,661
Sherfield School Limited
Management Information
For the year ended 31 August 2024
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