Registration number:
for the Year Ended
Care & Recreation Holdings Limited
Contents
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account and Statement of Retained Earnings |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Care & Recreation Holdings Limited
Strategic Report for the Year Ended 31 August 2024
The directors present their strategic report for the year ended 31 August 2024.
Principal activity
The principal activities of the group are that of an insurance intermediary, private schools, property letting and service company.
Fair review of the business
There have not been any significant changes in the group's financial activities in the year under review and the directors are not aware, at the date of this report, of any likely changes in the group's activities in the next year. The group loss after taxation amounted to £4,811,374 (2023 - £792,609). The consolidated balance sheet on page 9 of the financial statements shows that the group's net asset position has weakened. Further results and commentary on the trading activities within the subsidiaries are set out in the directors' reports of those companies.
The group's directors believe that further key performance indicators for the group are not necessary or appropriate for an understanding of the development, performance or position of the business, and the ones identified are the key indicators that are used by the board to monitor the group's performance.
Both the level of business and the year-end position are considered satisfactory.
Principal risks and uncertainties
The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts represented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Competitive pressure in the UK is a continuing risk for the group. The group manages such risks by providing appropriate quality services to its customers.
The group's transactions are all in pounds sterling and therefore there is no exposure to a movement in exchange rates.
Section 172(1) statement
This statement sets out how the directors of the Group have fulfilled their duty to comply with the requirements of Section 172 of the Companies Act 2006.
The strategy set out by the Board is intended to strengthen our position as a leading provider of private education, while keeping safety and social responsibility fundamental to our business approach. The Board conducts board meetings to assess and monitor the progress against its strategic decisions. Factors which are continually being considered against strategy include the promotion of the company, its stakeholders, employees, and the strengthening of suppler and customer relationships.
The Group try to make all decisions with our key stakeholders’ best interests in mind, in particular: employees, customers, suppliers, the environment, and shareholders.
Care & Recreation Holdings Limited
Strategic Report for the Year Ended 31 August 2024
Engagement with employees
The employees of the Group are fundamental to our success and are the only way we can continually meet our strategic ambitions for growth and development, our success is tied to the finding, training and retaining of our great staff, we are committed to being responsible employees, through pay and benefits, continual improvements in health and safety within the workplace, and ongoing training. We are constantly looking to drive employee engagement, this helped by the fact the directors are available to all staff most days.
Engagement with suppliers, customers and other relationships
Our Customers
Our business strategy is reliant on our customers, without them and the relationships we have with them, we wouldn’t have a business. As such, we are constantly trying to build stronger relationships with our customers and support them wherever we possibly can, we try to provide the highest level of education as well as a memorable experience throughout their time with us. We are constantly working on ways to improve the service we provide by regularly investing in new technology and equipment.
Our Suppliers
Suppliers are regularly reviewed for performance, with the directors having oversight and heavy involvement in this process. We have a large network of suppliers with some extremely long-standing relationships.
The Environment
Decisions taken by the directors for the group are done so very much with their environmental impact in mind, we are a group really trying to make an impact on reducing our carbon footprint.
Approved and authorised by the
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Care & Recreation Holdings Limited
Directors' Report for the Year Ended 31 August 2024
The directors present their report and the for the year ended 31 August 2024.
Directors of the group
The directors who held office during the year were as follows:
Employment of disabled persons
The group's policy is to give full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities.
Disabled employees receive appropriate training to promote their career development within the group. Employees who become disabled are retrained in their existing posts where possible or retrained for suitable alternative posts.
Employee involvement
Regular meetings are held between senior management and employee representatives to discuss matters of concern. Employees are kept well informed about the progress and position of the group by means of regular departmental meetings, newsletters and journals.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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Care & Recreation Holdings Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Care & Recreation Holdings Limited
Independent Auditor's Report to the Members of Care & Recreation Holdings Limited
Opinion
We have audited the financial statements of Care & Recreation Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's affairs as at 31 August 2024 and of its loss 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 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 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 director's 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
Care & Recreation Holdings Limited
Independent Auditor's Report to the Members of Care & Recreation Holdings Limited
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities [set out on page 4], 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.
Auditor 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.
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:
Care & Recreation Holdings Limited
Independent Auditor's Report to the Members of Care & Recreation Holdings Limited
In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.
Following this assessment we considered the opportunities and incentives that may exist within the group for fraud and identified the greatest potential for fraud in evaluating fixed assets, cash balances, the validity of purchases, expenses and the misappropriation of transactions through management override.
We also obtained an understanding of the legal and regulatory frameworks that the group operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sectors in which the group operates, to enable us to identify the key laws and regulations applicable to the group. 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 group, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
Care & Recreation Holdings Limited
Independent Auditor's Report to the Members of Care & Recreation Holdings Limited
We then performed audit procedures after consideration of the above risks which included the following:
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substantive fixed asset audit testing and assessing the validity of purchases and expenses by documenting and assessing the internal controls and performing tests of detail on purchases and expenses; |
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documenting and assessing the internal controls over cash balances and performing tests of detail on the balances and reconciliations; |
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enquiring of management concerning actual and potential litigation and claims; |
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reviewing correspondence with HMRC and the group's legal advisors; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
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reading minutes of meetings of those charged with governance; and; |
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in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business and performing a review of inter-company recharges for reasonableness. |
All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.
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 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.
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For and on behalf of
Statutory Auditors & Chartered Accountants
Care & Recreation Holdings Limited
Consolidated Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 August 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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|
|
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Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating loss |
( |
( |
|
|
Loss on financial assets at fair value through profit and loss account |
( |
- |
|
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Other interest receivable and similar income |
|
|
|
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Exceptional items |
( |
- |
|
|
Interest payable and similar charges |
( |
( |
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|
(2,054,205) |
(81,698) |
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|
Loss before tax |
( |
( |
|
|
Taxation |
|
( |
|
|
Loss for the financial year |
( |
( |
|
|
Profit/(loss) attributable to: |
|||
|
Owners of the company |
( |
( |
|
|
Retained earnings brought forward |
36,546,259 |
37,338,868 |
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|
Retained earnings carried forward |
31,734,885 |
36,546,259 |
Care & Recreation Holdings Limited
(Registration number: 03252230)
Consolidated Balance Sheet as at 31 August 2024
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Note |
2024 |
2023 |
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£ |
£ |
£ |
£ |
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Fixed assets |
|||||
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Tangible assets |
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Investment property |
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Current assets |
|||||
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Stocks |
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Debtors |
|
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|||
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Cash at bank and in hand |
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|
|||
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|
||||
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Creditors: Amounts falling due within one year |
( |
( |
|||
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Net current liabilities |
( |
( |
|||
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Total assets less current liabilities |
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|
|||
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Creditors: Amounts falling due after more than one year |
( |
( |
|||
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Provisions for liabilities |
( |
( |
|||
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Net assets |
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|
|||
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Capital and reserves |
|||||
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Called up share capital |
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Revaluation reserve |
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Profit and loss account - non distributable |
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Profit and loss account |
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Equity attributable to owners of the company |
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Total equity |
|
|
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Approved and authorised by the
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Care & Recreation Holdings Limited
(Registration number: 03252230)
Balance Sheet as at 31 August 2024
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Note |
2024 |
2023 |
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£ |
£ |
£ |
£ |
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Fixed assets |
|||||
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Investments |
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Current assets |
|||||
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Debtors |
|
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Creditors: Amounts falling due within one year |
( |
( |
|||
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Net current liabilities |
( |
( |
|||
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Net assets |
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Capital and reserves |
|||||
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Called up share capital |
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Profit and loss account |
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Shareholders' funds |
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The exemption under section 408 of the Companies Act has been taken therefore a Company Profit and Loss Account is not included. The company made a loss after tax for the financial year of £14,474 (2023 - loss of £11,587).
Approved and authorised by the
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Care & Recreation Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 31 August 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
|||
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Loss for the year |
( |
( |
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
|
|
|
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Changes in fair value of investment property |
1,750,000 |
- |
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Profit on disposal of tangible assets |
- |
( |
|
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Finance income |
( |
( |
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Finance costs |
|
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|
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Corporation tax |
( |
|
|
|
|
|
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Working capital adjustments |
|||
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(Increase)/decrease in stocks |
( |
|
|
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Decrease in debtors |
|
|
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Increase in creditors |
|
|
|
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Decrease in provisions |
- |
( |
|
|
Cash generated from operations |
|
|
|
|
Corporation tax received/(paid) |
|
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
- |
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
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Interest paid |
( |
( |
|
|
Net increase in cash and cash equivalents |
|
|
|
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Cash and cash equivalents at 1 September |
|
|
|
|
Cash and cash equivalents at 31 August |
23,356,262 |
19,133,392 |
|
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The group's functional and presentation currency is pound sterling.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 August 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
Summary of disclosure exemptions
The group has taken advantage of the exemption under Section 33 Related Party disclosures from disclosing transactions and balances with fellow group undertakings that are wholly owned.
Going concern
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
All shared expenses are allocated across related companies via recharges. Recharge split percentages are calculated on an appropriate allocation basis, such as turnover, staff numbers and building usage, according to expense type. |
Key sources of estimation uncertainty
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £24,918,660 (2023 -£24,641,963).
Stock provision
The group makes an estimate of the recoverability of the cost of stock. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.
The carrying amount is £685,530 (2023 -£450,439).
Impairment of debtors
The group makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors which include the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount is £7,080,887 (2023 -£9,923,765).
Defined benefit pension scheme
The group has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.
The carrying amount is £Nil (2023 -£Nil).
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of services and commissions received in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates, discounts and scholarships and after eliminating sales within the group.
The group recognises revenue when (a) the group retains no continuing involvement or control over the services provided; (b) the amount of revenue can be measured reliably; and (c) it is probable that future economic benefits will flow to the group.
Government grants
Grants are measured at the fair value of the asset received or receivable.
Grants relating to revenue shall be recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.
A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.
Grants relating to assets shall be recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred it shall be recognised as deferred income and not deducted from the carrying amount of the asset.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives.
If there is an indication that there has been a significant change in estimated useful life or residual value of an asset, the depreciation of that asset is revised prospectively to reflect the new expectations.
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Asset class |
Depreciation method and rate |
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Short leasehold improvements |
4% to 25% straight line |
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Fixtures, fittings and equipment |
10% straight line |
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Plant and machinery |
4% - 25% straight line |
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Motor vehicles |
12.5% straight line |
Investment property
Investments
Investments in subsidiaries are measured at cost less impairment.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method and the average cost method (AVCO).
The cost of finished goods comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
Defined benefit pension obligation
The group also operates a defined benefit pension scheme. Queen Ethelburga's College Limited, Chapterhouse Preparatory School Limited, KM School Limited and Faculty of Queen Ethelburga's Limited participate in the Teachers' Pension Scheme (England and Wales) ("the Scheme"), for its teaching staff. The Teachers' Pension Scheme ('TPS') is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the company in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in the notes to the financial statements, the TPS is a multi-employer scheme and the company is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
Financial instruments
Financial assets
Basic financial assets, including trade and other receivables, 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 asset. Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss and any subsequent reversal is recognised in profit or loss.
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) 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
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
|
|
The analysis of the group's turnover for the year by class of business is as follows:
|
2024 |
2023 |
||
|
£ |
£ |
||
|
Insurance intermediary |
535,161 |
1,074,549 |
|
|
Property letting |
106,547 |
182,352 |
|
|
Private schools |
51,844,124 |
43,718,672 |
|
|
Service company |
1,395,170 |
819,457 |
|
|
53,881,002 |
45,795,030 |
No further analysis of turnover is given as the directors consider this would be seriously prejudicial to the group.
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Rent receivable |
|
|
|
Insurance claim proceeds |
|
|
|
|
|
|
Operating loss |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Profit on disposal of property, plant and equipment |
- |
( |
|
Extraordinary items |
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
2024 |
2023 |
|
|
Extraordinary items |
(407,801) |
- |
Extraordinary items include a write off of a debtor no longer required.
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Other interest receivable |
|
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Loan interest |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Pension costs, defined benefit scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
1,273,017 |
712,179 |
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
During the year the number of directors who were receiving benefits was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under defined contribution schemes |
|
|
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
19,230 |
15,450 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
117,328 |
96,191 |
|
|
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other non-audit services |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
( |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
|
(620,733) |
108,447 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from adjustments relating to previous years |
- |
( |
|
Total deferred taxation |
|
|
|
Tax (receipt)/expense in the profit and loss account |
( |
|
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
|
Tax decrease from effect of capital allowances and depreciation |
- |
( |
|
Increase/(decrease) from effect of different UK tax rates on some earnings |
|
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
( |
|
Total tax (credit)/charge |
( |
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
( |
|
Other provisions |
- |
|
|
- |
( |
|
2023 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
( |
|
Other provisions |
- |
|
|
- |
( |
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
The group has capital losses of £3,124,000 available to carry forward and offset against future capital gains.
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
Tangible assets |
Group
|
Land and buildings |
Plant and machinery |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 September 2023 |
|
|
|
|
|
|
Additions |
- |
|
|
- |
|
|
At 31 August 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 September 2023 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
At 31 August 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 August 2024 |
|
|
|
|
|
|
At 31 August 2023 |
|
|
|
|
|
The short leasehold improvements have been built on land owned by Foxlow Limited, the ultimate parent undertaking, and are subject to ground rent leases of £4,670 (2023 - £4,190) per annum and on land owned by group companies and subject to ground rent leases of £5,170 (2023 - £4,640).
Included within the net book value of land and buildings above is £15,842,026 (2023 - £18,900,102) in respect of long leasehold land and buildings.
Revaluation
The fair value of the group's Short leasehold improvements and Plant and Machinery was revalued on
The valuations have been undertaken in accordance with the RICS Valuation - Global Standards (effective from 31 January 2020), incorporating IVSC International Valuation Standards, together with the UK National Supplement, and also having regard to the requirements under UK GAAP (FRS 102). Following the outbreak of COVID-19 the valuations are reported on the basis of “material valuation uncertainty” as per VPS3 and VPGA10 of the RICS Red Book Global Standards.
Due to the location and the interlinking of the properties with the College Campus land and buildings, and also the specialist nature of all or part of the properties, fair value has been assessed on a Depreciated Replacement Cost basis. This is in accordance with Valuation Statement 1 and Guidance Note 6 of the RICS Red Book.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
Investment properties |
Group
|
2024 |
|
|
At 1 September |
|
|
Fair value adjustments |
( |
|
At 31 August |
|
The group's investment properties were revalued in 2024 at £44,500,000 by an independent valuer Eddison's Taylors Chartered Surveyors, RICS.
The valuations have been undertaken in accordance with the current edition of the RICS Valuation - Professional Standards issued by the Royal Institution of Chartered Surveyors (RICS) - the "Red Book", having regards to the requirements of FRS 102. As the property forms part of a larger College campus the properties could not be sold on the open market except as an overall sale of the whole campus.
Due to the above and the specialised nature of the buildings the Depreciated Replacement Cost has been adopted in assessing the Fair Value in accordance with Valuation Statement 1 and Guidance Note 6 of the RICS Red Book.
Had this class of asset been measured on a historical cost basis, their carrying amount would have been £47,701,405 (2023 - £47,701,405).
The investment properties have been built on land owned by Foxlow Limited, the ultimate parent undertaking, and are subject to ground rent leases of £19,440 (2023 - £18,150) per annum.
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
Investments |
Group
Details of undertakings
Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Holding |
Proportion of voting rights and shares held |
||
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
|
|
Ordinary |
|
|
|
* denotes direct shareholding
The address of all the subsidiary undertakings is Thorpe Underwood Hall, PO Box 100, Great Ouseburn, York, YO26 9SZ and all subsidiary undertakings are incorporated in England & Wales.
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
Company
|
2024 |
2023 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 September 2023 |
|
|
Carrying amount |
|
|
At 31 August 2024 |
|
|
At 31 August 2023 |
|
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Finished goods and goods for resale |
|
|
- |
- |
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
- |
- |
|
|
Amounts owed by related parties |
|
|
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
|
Corporation tax asset |
|
|
- |
- |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
- |
- |
|
Short-term deposits |
|
|
- |
- |
|
|
|
- |
- |
|
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to related parties |
|
|
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
|
Other creditors |
|
|
- |
- |
|
|
Accruals |
|
|
- |
- |
|
|
Corporation tax liability |
316 |
130,501 |
- |
- |
|
|
Payments on account |
|
|
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Other financial liabilities |
|
|
- |
- |
|
|
Deferred tax and other provisions |
Group
|
Deferred tax |
|
|
At 1 September 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 August 2024 |
|
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £(
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
Defined benefit pension schemes
The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers' Pensions Regulations 2010 (as amended) and The Teachers' Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
Multi-employer plans
Four subsidiaries, Queen Ethelburga’s College Limited, Chapterhouse Preparatory School Limited, KM School Limited and Faculty of Queen Ethelburga’s Limited participate in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension cost paid to the TPS in the period amounted to £1,797,827 (2023 - £1,467,925) and at the year-end £Nil (2023 - £Nil) was accrued in respect of contributions to this scheme.
Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The schools have accounted for its contributions to the scheme as if it were a defined contribution scheme.
The schools have set out below the information available on the scheme.
The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report, which was published in October 2023, confirmed that the employer contribution rate for the TPS would increase from 22.8% to 28.6% from 1 April 2024 to 31 March 2027. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.
The 31 March 2020 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 26 October 2023. The assumptions considered and the ruling of the McLoud and Goodwin legal cases and the changes to GMP indexation.
The cost control mechanism introduced in the 2020 valuation has introduced the following recommendations from the Independent Public Pension Commission. The aims were:
- Ensure a fair balance of risk between members of public service pension schemes and taxpayers with regard to the costs of these schemes.
- Maintain the value of such schemes to their members.
- Provide stability and certainty of member benefit and contribution levels, with changes only being triggered by 'extraordinary, unpredictable' events.
A number of legal challenges have been brought against public service (and other) pension schemes since the 2016 valuation of the scheme. This report describes the allowances that we have included at this valuation in respect of those cases.
In some cases, final determinations are outstanding, or impacts have yet to be agreed. Such determinations could impact on future valuations, however prior to their outcomes being known we have not made any allowances for them in the current valuation.
In view of the above rulings and decisions the assumptions used in the 31 March 2020 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.
Until the 2023 valuation is completed, it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
2 |
|
2 |
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
|
Reserves |
Group
Share capital
Represents the nominal value of issued shares
Revaluation reserve
Represents any gains from revaluations of leasehold improvements and plant and machinery
Profit and loss account - non distributable
Represents the fair value gains and losses on revaluation of the investment properties
Profit and loss account
Includes all current and prior period distributable profits and losses
Company
Share capital
Represents the nominal value of issued shares
Profit and loss account
Includes all current and prior period distributable profits and losses
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Commitments |
Group
Other financial commitments
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
Related party transactions |
Group
Key management compensation
|
2024 |
2023 |
|
|
Salaries and other short term employee benefits |
|
|
Income and receivables from related parties
|
2024 |
Key management |
Other related parties |
|
Rendering of services |
- |
|
|
Amounts receivable from related party |
|
|
|
|
||
|
2023 |
Key management |
Other related parties |
|
Rendering of services |
- |
|
|
Amounts receivable from related party |
|
|
|
|
||
Expenditure with and payables to related parties
|
2024 |
Other related parties |
|
Interest paid |
|
|
|
|
|
2023 |
Other related parties |
|
Interest paid |
|
|
Amounts payable to related party |
|
|
|
|
Loans from related parties
Terms of loans from related parties
Care & Recreation Holdings Limited
Notes to the Financial Statements for the Year Ended 31 August 2024
|
Financial instruments |
Group
Categorisation of financial instruments
|
2024 |
2023 |
|
|
Financial assets measured at fair value through profit or loss |
|
|
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate controlling party is
|
Non adjusting events after the financial period |
|
|