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Registered number: 02559971












KUMON EUROPE & AFRICA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

 

KUMON EUROPE & AFRICA LIMITED

CONTENTS



Page
Company information
 
1
Group strategic report
 
2 - 3
Directors' report
 
4 - 5
Directors' responsibilities statement
 
6
Independent auditor's report
 
7 - 10
Consolidated statement of comprehensive income
 
11
Consolidated balance sheet
 
12
Company balance sheet
 
13 - 14
Consolidated statement of changes in equity
 
15
Company statement of changes in equity
 
16
Consolidated statement of cash flows
 
17
Notes to the financial statements
 
18 - 36


 

KUMON EUROPE & AFRICA LIMITED
 
COMPANY INFORMATION


Directors
K Inoue 
M Tanabe 
P Mehta 




Company secretary
Y Seike



Registered number
02559971



Registered office
4th Floor West
Ealing Cross

85 Uxbridge Road

London

W5 5TH




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

KUMON EUROPE & AFRICA LIMITED
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
Kumon Europe and Africa Limited is the largest supplemental educational provider in Europe and Africa.
The company functions as the parent entity and regional headquarters of subsidiaries in the UK, Spain, Germany and South Africa, and branches in Ireland and Greece.
It is itself part of the wider Kumon group, which is a worldwide organisation based in Japan and the largest supplemental education provider in the world. 
The Kumon Method was developed in Japan over 65 years ago. It complements rather than replaces traditional methods of teaching by encouraging children to acquire self-learning skills. The method is made up of various worksheet-based educational programmes, which are tailored to suit individual students allowing them to move through different levels within each programme by themselves.
 
The services are delivered by Instructors, who are owner managed Kumon franchises responsible for instructing students in accordance with the Kumon Method which has been substantiated over 65 years. The group operates in 26 countries across Europe and Africa. 
The company and group provide supplementary education services to children in the UK, Europe, and Africa. They offer Maths, native language programmes in English and Spanish and English as a foreign language programme to children of all ages and abilities and have over 115,000 students and 1,200 study centres.

Business review
 
The group is demonstrating robust financial performance, marked by consistent operating income and rising revenue. Operating expenses are trending back toward pre-pandemic levels, with anticipated increases in travel and meeting costs. As the group re-establishes itself post-pandemic, there is improved alignment in both strategy and operations.
Kumon Connect offer the flexibility, individualised study and high-level feedback that is synonymous with the brand. Kumon Connect has been adopted by approximately 25% of students and is gaining momentum. 
Strategy
The group’s mission is to help every child become an independent and advanced learner, fostering a positive attitude towards study and enabling them to reach their full potential.
Through the Maths and English programmes, students build independent learning skills and grow in self-confidence as they learn to tackle challenges on their own.
The directors and senior management have outlined the following strategic initiatives:
 
1)Establish a strong foundation for sustainable growth by actively developing core classrooms.
2)Drive the expansion of the franchise network by creating profitable and appealing business models.
3)Proactively promote Kumon Connect across European and African markets.
4)Enhance operating profit margins by pursuing growth strategies and reducing costs through structural reforms.
5)Invest in innovative solutions and ICT to continually improve the student learning experience.

The Kumon Institute of Education in Japan, as the group’s ultimate holding company, sets the overall strategic direction for Kumon. It develops educational materials and communicates strategies, new ideas, and concepts to regional headquarters worldwide.

Page 2

 

KUMON EUROPE & AFRICA LIMITED

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Principle risks and uncertainty
 
In addition to general operational matters, the group is exposed to the following risks:
 

1)The education sector is highly competitive, with local and online alternatives with evolving online learning platforms can threaten market share. 
2)Changes in education policies, regulations, or local requirements that could increase operational complexity and costs.

 
Key performance indicators
 
The group’s key performance indicators (KPI’s) are numbers of students and study centres as well as gross profit margin, operating profit margin and net assets, which communicate overall financial performance and strength.
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The above figures demonstrate a steady growth in turnover accompanied by healthy increase in operating income. The group has delivered strong performance and continues to hold a solid position, supported by significant cash reserves and no debts.

Future strategy
 
The group plans to enhance brand awareness of Kumon Connect while also accelerating its expansion across Europe by employing a variety of strategic approaches to grow operations in both Europe and Africa. The focus in the next few years are as follows:
 
1)Growing the franchise network throughout Europe and Africa.
2)Investment in ICT solutions to increase accessibility of the program and enhance the learning experience for students.
3)Expansion of the English as a foreign language programme in UK, Europe and Africa.


This report was approved by the board and signed on its behalf.



M Tanabe
Director

Date: 18 July 2025

Page 3

 

KUMON EUROPE & AFRICA 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.

Results

The profit for the year, after taxation, amounted to £3,251,471 (2023 -£2,768,915).

A dividend of £2,700,000 was approved by the board of directors and paid after the year end.

Directors

The directors who served during the year were:

M Shimizu (resigned 30 June 2025)
K Inoue 

On 1 July 2025 M Tanabe and P Mehta were appointed as directors.

Financial risk management objectives and policies

The group's activities expose it to a number of financial risks including cashflow risk, credit risk and liquidity risk. These risks and their management are as follows: 
 
Cash flow risk
 
The group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The group manages foreign currency exchange risk by mainly issuing invoices in its functional currency and by receiving supplier invoices in various foreign currencies, including US Dollars, Japanese Yen and Euros. Overall, this mitigates against the exchange risk.
 
Credit risk
 
The group's principal financial assets are bank balances, cash, trade and other receivables.
The group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. Trade receivables presented in the balance sheet are net of allowances for doubtful receivables which are historically very low. The directors consider that the group has successfully reduced its credit risk as much as economically viable, and it continues to monitor its credit risk position very closely.
 
Liquidity risk
 
The group ensures it has sufficient funds and bank credit lines to meet its working capital requirements and future developments. 

Future developments

Details of future developments can be found in the Strategic Report on page 3.

Engagement with suppliers, customers and others

Details of engagement with suppliers, customers and others can be found in the Strategic Report on page 3.

Page 4

 

KUMON EUROPE & AFRICA LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disabled employees

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the group continues and that appropriate training is arranged. It is the policy of the group and the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Branches outside the United Kingdom

The company and group have a branch, as defined in s1046(3) of the Companies Act 2006, outside the UK in Ireland.  

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

Auditor

The company's auditor, Greenback Alan LLP, ceased to operate as a registered auditor on 31 March 2025 and its business was transferred to Blick Rothenberg Audit LLP. Accordingly the company appointed Blick Rothenberg LLP as its auditor in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





M Tanabe
Director

Date: 18 July 2025

Page 5

 

KUMON EUROPE & AFRICA LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group 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 the group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

 

KUMON EUROPE & AFRICA LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KUMON EUROPE & AFRICA LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2024

Opinion


We have audited the financial statements of Kumon Europe & Africa Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the group statement of comprehensive income, the group and company Balance sheets, the group and company statement of changes in equity, the group statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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).


In our opinion the financial statements:


give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 group 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.


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 group's or the parent 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.


Page 7

 

KUMON EUROPE & AFRICA LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KUMON EUROPE & AFRICA LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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 reportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the group 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 group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group 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:


adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 6, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 8

 

KUMON EUROPE & AFRICA LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KUMON EUROPE & AFRICA LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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 Group financial statements.


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:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the supplemental educational sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
 
performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.

 
Page 9

 

KUMON EUROPE & AFRICA LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KUMON EUROPE & AFRICA LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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.


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 2006Our 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.





Yusuke Takanishi (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
18 July 2025
Page 10

 

KUMON EUROPE & AFRICA LIMITED
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
26,160,544
24,633,302

Cost of sales
  
(6,543,927)
(6,914,962)

Gross profit
  
19,616,617
17,718,340

Administrative expenses
  
(15,849,977)
(14,456,370)

Other operating income
 5 
291,795
289,522

Other operating charges
  
(470,529)
(378,567)

Operating profit
 6 
3,587,906
3,172,925

Interest receivable and similar income
 10 
622,882
484,183

Interest payable and similar charges
 11 
(18,430)
(1,049)

Profit before taxation
  
4,192,358
3,656,059

Tax on profit
 12 
(940,887)
(887,144)

Profit for the financial year
  
3,251,471
2,768,915

  

Other comprehensive income
  
(593,115)
(813,508)

Other comprehensive income for the year
  
(593,115)
(813,508)

Total comprehensive income for the year
  
2,658,356
1,955,407

Profit for the year attributable to:
  

Owners of the parent company
  
3,251,471
2,768,915

  
3,251,471
2,768,915

Total comprehensive income for the year attributable to:
  

Owners of the parent company
  
2,658,356
1,955,407

  
2,658,356
1,955,407

The notes on pages 18 to 36 form part of these financial statements.

Page 11


 
REGISTERED NUMBER:02559971
KUMON EUROPE & AFRICA LIMITED

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 15 
993,979
817,351

Deferred taxation
 22 
55,235
8,448

  
1,049,214
825,799

Current assets
  

Stocks
 17 
2,929,270
3,167,793

Debtors: amounts falling due after more than one year
 18 
152,048
151,458

Debtors: amounts falling due within one year
 18 
4,242,554
4,872,974

Cash at bank and in hand
 19 
19,272,022
17,285,491

  
26,595,894
25,477,716

Creditors: amounts falling due within one year
 20 
(4,402,076)
(3,522,432)

Net current assets
  
 
 
22,193,818
 
 
21,955,284

Total assets less current liabilities
  
23,243,032
22,781,083

Creditors: amounts falling due after more than one year
 21 
(40,714)
(28,360)

Provisions for liabilities
  

Deferred taxation
 22 
(6,454)
(114,013)

Net assets
  
23,195,864
22,638,710


Capital and reserves
  

Called up share capital 
 23 
3,100,000
3,100,000

Foreign exchange reserve
 24 
(320,651)
(807,995)

Profit and loss account
 24 
20,416,515
20,346,705

Total equity
  
23,195,864
22,638,710


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



M Tanabe
Director

Date: 18 July 2025

The notes on pages 18 to 36 form part of these financial statements.

Page 12


 
REGISTERED NUMBER:02559971
KUMON EUROPE & AFRICA LIMITED

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 15 
912,492
714,949

Investments
 16 
2,466,347
2,466,347

  
3,378,839
3,181,296

Current assets
  

Stocks
 17 
1,023,904
1,202,572

Debtors: amounts falling due after more than one year
 18 
57,962
55,292

Debtors: amounts falling due within one year
 18 
2,501,332
3,494,543

Cash at bank and in hand
 19 
14,436,155
12,520,442

  
18,019,353
17,272,849

Creditors: amounts falling due within one year
 20 
(3,108,268)
(2,431,819)

Net current assets
  
 
 
14,911,085
 
 
14,841,030

Total assets less current liabilities
  
18,289,924
18,022,326

  

Provisions for liabilities
  

Deferred taxation
 22 
(6,454)
(114,013)

Net assets
  
18,283,470
17,908,313


Capital and reserves
  

Called up share capital 
 23 
3,100,000
3,100,000

Foreign exchange reserve
 24 
(22,524)
101,892

Profit and loss account brought forward
  
14,706,421
14,490,871

Profit for the year
  
3,030,244
2,715,550

Other changes in the profit and loss account

  

(2,530,671)
(2,500,000)

Profit and loss account carried forward
  
15,205,994
14,706,421

Total equity
  
18,283,470
17,908,313


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


M Tanabe
Director

Date: 18 July 2025

The notes on pages 18 to 36 form part of these financial statements.
Page 13


 
REGISTERED NUMBER:02559971
KUMON EUROPE & AFRICA LIMITED
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024


Page 14

 

KUMON EUROPE & AFRICA LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
3,100,000
5,513
19,597,731
22,703,244



Profit for the year
-
-
2,768,915
2,768,915

Currency translation difference on foreign currency net investments
-
(813,508)
-
(813,508)

Dividends: Equity capital
-
-
(2,019,941)
(2,019,941)



At 1 January 2024
3,100,000
(807,995)
20,346,705
22,638,710



Profit for the year
-
-
3,251,471
3,251,471

Currency translation difference on foreign currency net investments
-
(593,115)
-
(593,115)

Reclassification
-
1,080,459
(1,080,459)
-

Dividends: Equity capital
-
-
(2,101,202)
(2,101,202)


At 31 December 2024
3,100,000
(320,651)
20,416,515
23,195,864


The notes on pages 18 to 36 form part of these financial statements.

Page 15

 

KUMON EUROPE & AFRICA LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
3,100,000
76,757
14,490,871
17,667,628



Profit for the year
-
-
2,715,550
2,715,550

Currency translation difference on foreign currency net investments
-
25,135
-
25,135

Dividends: Equity capital
-
-
(2,500,000)
(2,500,000)



At 1 January 2024
3,100,000
101,892
14,706,421
17,908,313



Profit for the year
-
-
3,030,244
3,030,244

Currency translation difference on foreign currency net investments
-
(155,087)
-
(155,087)

Reclassification
-
30,671
(30,671)
-

Dividends: Equity capital
-
-
(2,500,000)
(2,500,000)


At 31 December 2024
3,100,000
(22,524)
15,205,994
18,283,470


The notes on pages 18 to 36 form part of these financial statements.

Page 16

 

KUMON EUROPE & AFRICA LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
3,251,471
2,768,915

Adjustments for:

Amortisation of intangible assets
-
1,367

Depreciation of tangible assets
521,432
491,560

Loss on disposal of tangible assets
(75,816)
(9,193)

Interest expenses
18,430
717

Interest income
(622,882)
(314,757)

Taxation charge
940,887
(770,051)

Decrease in stocks
192,178
1,422,173

Decrease/(increase) in debtors
601,769
(84,215)

Decrease/(increase) in amounts owed by groups
92,688
(66,614)

Increase in creditors
133,059
257,029

Increase/(decrease)) in amounts owed to groups
223,464
(187,786)

Corporation tax (paid)/received
(578,040)
690,071

Net cash generated from operating activities

4,698,640
4,199,216

Cash flows from investing activities

Purchase of tangible fixed assets
(392,350)
(623,451)

Interest received
622,882
314,757

Net effect of foreign exchange differences
(424,211)
(149,207)

Net cash from investing activities

(193,679)
(457,901)

Cash flows from financing activities

Dividends paid
(2,500,000)
(2,500,000)

Interest paid
(18,430)
(717)

Net cash used in financing activities
(2,518,430)
(2,500,717)

Net increase in cash and cash equivalents
1,986,531
1,240,598

Cash and cash equivalents at beginning of year
17,285,491
16,044,893

Cash and cash equivalents at the end of year
19,272,022
17,285,491


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
19,272,022
17,285,491


The notes on pages 18 to 36 form part of these financial statements.

Page 17

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Kumon Europe & Africa Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is 4th Floor West, Ealing Cross, 85 Uxbridge Road, London, W5 5TH.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The consolidated 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 group management to exercise judgment in applying the group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

 
2.3

Going concern

After making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial
statements.

Page 18

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Franchise Income
Revenue from the franchise income is recognised when all of the following conditions are satisfied:
- The franchisee has procured and declared a student to the group;
- The amount of revenue can be measured reliably;
- It is probable that the group will receive the consideration due under the transaction.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Over the term of the lease
Motor vehicles
-
20 - 33% per annum
Fixtures, fittings and equipment
-
20 - 33% per annum
Computer equipment, software and websites
-
20 - 33% per annum
Other fixed assets
-

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.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 19

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.7

Stocks

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. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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.


2.8

Financial instruments

The group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the group becomes party to the contractual provisions of the instrument. 

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 group after deducting all of its liabilities. 
 
The group’s policies for its major classes of financial assets and financial liabilities are set out below. 

Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, and intercompany balances are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities

Basic financial liabilities, including trade and other creditors, and intercompany balances 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

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

Page 20

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)




Financial instruments (continued)

Impairment of financial assets
Financial assets 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 profit and loss account. 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the group would receive for the asset if it were to be sold at the reporting date. 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.

  
2.10

Share capital

Ordinary shares are classified as equity.

Page 21

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.11

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.12

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.13

Operating leases: the group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.14

Pensions

Defined contribution pension plan

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.

 
2.15

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 22

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.17

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 23

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.19

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.



3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The presentation of financial statements in conformity with FRS102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The key judgements and estimates made by management in preparing these financial statements relate to depreciation of fixed assets, valuation of investments, valuation of stock and deferred taxation, and are explained more fully in the respective accounting policy notes.

Page 24

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
16,746,764
15,025,643

Rest of Europe
7,358,826
7,674,576

Rest of the world
2,054,954
1,933,083

26,160,544
24,633,302


An analysis of turnover by class of business is as follows:


2024
2023
£
£



Sale of goods
181,548
194,922

Rendering of services
339,284
1,359,889

Franchise income
25,639,712
23,078,489

26,160,544
24,633,300









5.


Other operating income

2024
2023
£
£

Other operating income
27,466
58,785

Foreign exchange difference - gain
264,329
230,737

291,795
289,522



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
157,259
61,188

Other operating lease rentals
871,965
874,118

Page 25

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Auditor's remuneration

During the year, the group obtained the following services from the company's auditor and its associates:


2024
2023
£
£

Fees payable to the company's auditors and their affiliates for the audit of the consolidated and parent company's financial statements
39,500
36,000

Fees payable to the company's auditor and its associates in respect of:

Audit-related assurance services
42,700
34,000

Taxation compliance services
9,375
9,000

All non-audit services not included above
11,625
11,200


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
8,015,078
7,895,778
5,371,288
4,801,530

Social security costs
963,716
920,108
460,096
389,498

Cost of defined contribution scheme
240,138
238,179
193,648
191,589

9,218,932
9,054,065
6,025,032
5,382,617


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Senior management
10
10
5
6



Sales
9
4
5
2



Other
206
223
113
120

225
237
123
128

Page 26

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
180,782
208,624

180,782
208,624


The highest paid director received remuneration of £180,782 (2023: £208,624).

The value of the group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023: £NIL).

The number of directors with retirement benefits accrued under defined contribution pension scheme is 1 (2023: 1).
The value of remunerations received by other key management personnel was £NIL (2023: £NIL).


10.


Interest receivable and similar income

2024
2023
£
£


Other interest receivable
622,882
484,183


11.


Interest payable and similar charges

2024
2023
£
£


Bank interest payable
18,430
1,049

Page 27

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,074,257
892,859

Adjustments in respect of previous periods
19,286
16,633


1,093,543
909,492


Double taxation relief
(49,253)
(50,029)


1,044,290
859,463

Foreign tax


Foreign taxation
49,253
50,029

Adjustments in respect of previous periods
290
-

49,543
50,029

Total current tax
1,093,833
909,492

Deferred tax


Origination and reversal of timing differences
(152,946)
(22,348)

Total deferred tax
(152,946)
(22,348)


Taxation on profit on ordinary activities
940,887
887,144
Page 28

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 -higher than) the standard rate of corporation tax in the UK of 25% (2023 -23.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
4,192,358
3,656,059


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
950,112
859,905

Effects of:


Fixed asset differences
16,834
19,952

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
18,376
1,411

Exempt ABGH distributions
(99,700)
(112,913)

Adjustments to tax charge in respect of previous periods
1,623
15,088

Remeasurement of deferred tax for changes in tax rates
51
(486)

Movement in deferred tax not recognised
(117,093)
(136,244)

Higher rate taxes on overseas earnings
170,684
240,431

Total tax charge for the year
940,887
887,144


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


Dividends paid on equity capital
2,500,000
2,500,000


Dividends income
(398,798)
(480,059)

2,101,202
2,019,941

On 1 March 2024 the directors proposed a dividend of £2,500,000. Dividend income is £398,798 for the year ended 31 December 2024.

Page 29

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Parent company profit for the year

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements. The profit after tax of the parent company for the year was £3,030,244 (2023: £2,715,550).


15.


Tangible fixed assets

Group






Short-term leasehold property
Motor vehicles
Fixtures and fittings
Computer equipment, software and website
Construction in progress
Total

£
£
£
£
£
£



Cost


At 1 January 2024
1,270,181
366,427
661,344
1,448,187
94,083
3,840,222


Additions
1,325
157,461
32,523
34,742
166,300
392,351


Disposals
-
(60,567)
(31,246)
(5,713)
-
(97,526)


Exchange adjustments
(3,788)
(3,927)
(18,646)
(4,669)
-
(31,030)



At 31 December 2024

1,267,718
459,394
643,975
1,472,547
260,383
4,104,017



Depreciation


At 1 January 2024
739,875
357,505
491,236
1,434,254
-
3,022,870


Charge for the year
92,759
18,858
355,988
53,827
-
521,432


Disposals
-
(60,325)
(21,811)
(91,206)
-
(173,342)


Exchange adjustments
(3,115)
(3,692)
(249,599)
(4,516)
-
(260,922)



At 31 December 2024

829,519
312,346
575,814
1,392,359
-
3,110,038



Net book value



At 31 December 2024
438,199
147,048
68,161
80,188
260,383
993,979



At 31 December 2023
530,306
8,922
170,108
13,933
94,083
817,352




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Short leasehold
438,199
530,306


Page 30

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           15.Tangible fixed assets (continued)


Company






Short-term leasehold property
Motor vehicles
Fixtures and fittings
Computer equipment, software and websites
Construction in progress
Total

£
£
£
£
£
£

Cost


At 1 January 2024
1,096,808
173,764
338,667
1,300,050
94,083
3,003,372


Additions
-
147,993
14,567
34,742
166,300
363,602


Disposals
-
(59,687)
(562)
(5,713)
-
(65,962)


Exchange adjustments
-
(555)
(106)
-
-
(661)



At 31 December 2024

1,096,808
261,515
352,566
1,329,079
260,383
3,300,351



Depreciation


At 1 January 2024
599,616
173,764
228,748
1,286,295
-
2,288,423


Charge for the year
85,277
15,019
97,190
53,827
-
251,313


Disposals
-
(59,687)
(323)
(91,206)
-
(151,216)


Exchange adjustments
-
(555)
(106)
-
-
(661)



At 31 December 2024

684,893
128,541
325,509
1,248,916
-
2,387,859



Net book value



At 31 December 2024
411,915
132,974
27,057
80,163
260,383
912,492



At 31 December 2023
497,192
-
109,919
13,755
94,083
714,949





The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Short leasehold
411,915
497,192


Page 31

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024
2,466,347



At 31 December 2024
2,466,347





Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

Kumon Deutschland GmbH
WiesenstraBe 21W, 40549 Dusseldorf, Germany
Provision of educational services
Ordinary
100%
Kumon Instituto de Educacion de Espana S.A
Paseo de la Castellana No. 131, Planta 1, 28046 Madrid, Spain
Provision of educational services
Ordinary
100%
Kumon Education South Africa (PTY) Ltd
132 Jan Smuts Avenue, Parkwood, Johannesburg, South Africa 2193
Provision of educational services
Ordinary
100%

All subsidiary undertakings have been included in the consolidation.


17.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Finished goods and goods for resale
2,792,363
3,009,751
1,023,904
1,190,714

Work in progress (goods to be sold)
136,907
158,042
-
11,858

2,929,270
3,167,793
1,023,904
1,202,572


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 32

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Other debtors
152,048
151,458
57,962
55,292

Deferred tax asset (note 22)
55,235
8,448
-
-

207,283
159,906
57,962
55,292


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due within one year

Trade debtors
3,315,951
4,091,301
1,809,470
2,971,534

Amounts owed by group undertakings
27,977
120,665
144,607
120,665

Other debtors
53,249
15,952
40,267
-

Prepayments and accrued income
624,252
442,213
506,988
402,344

Tax recoverable
221,125
202,843
-
-

4,242,554
4,872,974
2,501,332
3,494,543



19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
19,272,022
17,285,491
14,436,155
12,520,442



20.


Creditors: amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
919,808
794,059
132,067
78,408

Amounts owed to group undertakings
580,223
356,759
605,128
356,759

Corporation tax
742,008
206,533
741,874
189,964

Other taxation and social security
698,398
823,620
660,273
784,013

Other creditors
72,726
66,725
55,870
51,754

Accruals and deferred income
1,388,913
1,274,736
913,056
970,921

4,402,076
3,522,432
3,108,268
2,431,819


Page 33

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

21.


Creditors: amounts falling due after more than one year

Group
Group
2024
2023
£
£

Other creditors
1,289
1,317

Accruals and deferred income
39,425
27,043

40,714
28,360




22.


Deferred taxation


Group



2024
2023


£

£



At beginning of year
(105,565)
(126,068)


Charged to profit or loss
154,346
20,503



At end of year
48,781
(105,565)

Company


2024
2023


£

£



At beginning of year
(114,013)
(141,388)


Charged to profit or loss
107,559
27,375



At end of year
(6,454)
(114,013)

The deferred tax balance is made up as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
48,781
(105,565)
(6,454)
(114,013)

48,781
(105,565)
(6,454)
(114,013)

Comprising:

Asset
55,235
8,448
-
-

Liability
(6,454)
(114,013)
(6,454)
(114,013)

48,781
(105,565)
(6,454)
(114,013)


Page 34

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,600,000 (2023 -2,600,000) Ordinary shares of £1.00 each
2,600,000
2,600,000
500,000 (2023 -500,000) Nil% Redeemable preference shares of £1.00 each
500,000
500,000

3,100,000

3,100,000


The company may, subject to the provisions of the Companies Act 2006, at any time redeem the whole or any part of the preference shares upon giving to the shareholders whose shares are to be redeemed not less than three months' notice in writing at any time. The company shall not be entitled to redeem any preference share unless it is a fully paid share. Upon redemption the company shall pay to the shareholder the par value of the shares.


24.


Reserves

Foreign exchange reserve

Foreign exchange translation reserve comprises translation differences arising from the translation of financial statements of the group's foreign entities into Sterling (£).

Profit and loss account

Profit and loss account includes all current and prior period retained profit and losses.


25.


Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £240,138 (2023: £238,179). Contributions totalling £29,449 (2023: £26,052) were payable to the fund at the balance sheet date and are included in creditors.


26.


Commitments under operating leases

At 31 December 2024 the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
943,728
938,961
584,334
595,875

Later than 1 year and not later than 5 years
2,061,275
2,627,290
1,140,607
1,559,953

Later than 5 years
354,605
615,044
354,605
489,912

3,359,608
4,181,295
2,079,546
2,645,740



Page 35

 

KUMON EUROPE & AFRICA LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

27.Other financial commitments

The parent company and the group have other financial commitments relating to the provision of rent subsidies to its franchisees. As at the reporting date, there were financial commitments of £17,708 (2023: £40,656) due within one year, £7,292 (2023: £6,457) due later than one year and no later than five years.


28.


Controlling party

The company's immediate and ultimate parent undertaking is Kumon Institute of Education Co., Ltd.  and its ultimate controlling party is the Kumon Gakuen Educational Foundation .
The largest and smallest groups of which the company is a member and which prepares consolidated accounts is the Kumon Institute of Education Co., Ltd. whose registered office address is Kumon Kyoiku Kaikan, 5-6-6 Nishinakajima Yodogawa-ku, Osaka 532-8511 Japan, where copies of the consolidated financial statements can be obtained.

Page 36