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REGISTERED NUMBER: 10526074 (England and Wales)














FIRST FOR CHILDCARE 3 LIMITED

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 August 2024






FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Contents of the Financial Statements
for the Year Ended 31 August 2024










Page

Company Information 1

Strategic Report 2 to 3

Report of the Director 4 to 5

Report of the Independent Auditors 6 to 10

Income Statement 11

Other Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Cash Flow Statement 16 to 17

Notes to the Financial Statements 18 to 28


FIRST FOR CHILDCARE 3 LIMITED

Company Information
for the Year Ended 31 August 2024







Director: Ms S C Denton





Registered office: Artisans' House
7 Queensbridge
Northampton
Northamptonshire
NN4 7BF





Business address: Hopper Hill Road
Scarborough
North Yorkshire
YO11 3YS





Registered number: 10526074 (England and Wales)





Auditors: Independent Auditors LLP
Emstrey House North
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Strategic Report
for the Year Ended 31 August 2024


The director presents her strategic report for the year ended 31 August 2024.

The principle activity of the company in the year of review is that of early years childcare activities.

Review of business
This financial year saw the business continue to trade successfully and remain sustainable through extremely difficult conditions. Debt has reduced by 4% and net debt has remained static.

As an industry the Early Years sector has continued to face challenges during FY 23/24.

We continue to see the Govt underfunding the sector. As a company we have overcome this but remaining within the regulatory boundaries and charging for permissible extras. Income has increased by 0.4%.

We continue to have to pay Business Rates without any relief. This is a substantial sum of money.

Minimum wage increases and staff costs generally due the pool of potential workers shrinking have forced us to offer increased pay rates. We have to then balance this against the 'affordability' of childcare for existing families and to remain competitive for potential families. Nevertheless wages costs have remained static in absolute terms and have shrunk as a percentage of turnover from 59% in FY 2022/23 to 57% in FY 2023/24.

We continue to closely monitor costs and successfully achieve efficiencies without sacrificing quality of service or investment in training or facilities. This ensured that profitability in terms of EBITDA to remain robustly strong.

Increased interest rates have obviously had a huge impact on our loan costs. We are constantly reviewing this and have had to reserve the right with parents to have potentially two fee increases per annum.

Principal risks and uncertainties
It was identified during the year that the principle risks and uncertainties related to inflationary increases as well as staff turnover.

Our ongoing streamlining of costs has left us well placed to deal with inflationary pressures on food and fuel and our strong management team and staff structure enables us to remain competitive in a difficult labour market. In all we are ideally positioned to continue to meet the huge increase in demand for our services.

Future development & plans
Our whole focus is based around providing an engaging environment to enable us to produce intuitive and developing children. We very much see ourselves as a resource, constantly updating the environment and offering new and interesting opportunities to learn.

Over the coming years we are looking at new ways of continuing to develop and grow our nursery bases as well as seeking new opportunities within the area such as more wrap around care such as holiday clubs, before school and after school care for the community.


FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Strategic Report
for the Year Ended 31 August 2024

Key performance indicators
The gross profit percentage achieved was 40.0% as opposed to 36.9% in the previous 12 months. This is due to staff cost controls.

The net profit percentage was 6.4% as opposed to 3.5% in 2022/23. This increase was achieved in spite of a massive 20.4% increase in interest costs.

On behalf of the board:





Ms S C Denton - Director


21 August 2025

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Report of the Director
for the Year Ended 31 August 2024


The director presents her report with the financial statements of the company for the year ended 31 August 2024.

Dividends
The total distribution of dividends for the year ended 31 August 2024 will be £476,992.

Director
Ms S C Denton held office during the whole of the period from 1 September 2023 to the date of this report.

Statement of director's responsibilities
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Report of the Director
for the Year Ended 31 August 2024


Auditors
The auditors, Independent Auditors LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:



Ms S C Denton - Director


21 August 2025

Report of the Independent Auditors to the Members of
First For Childcare 3 Limited


Qualified Opinion
We have audited the financial statements of First For Childcare 3 Limited (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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).

We have audited the financial statements of First For Childcare 3 Limited (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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, except for the effects of the matters described in the basis for qualified opinion section of
our report, the financial statements:

- give a true and fair view of the state of the company's affairs at 31 August 2024 and of its 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 qualified opinion
In the year ended 31 August 2023, the audit evidence available to us was limited because no detailed records had been maintained to support sales transactions in September and October 2022 totalling £237,005 following transition to a new software package. Due to the failure of the backup procedures and the previous software provider no holding the data, it has not been possible to obtain information via other means and consequently we were unable to obtain sufficient audit evidence regarding these sales transactions by using other audit procedures.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Report of the Independent Auditors to the Members of
First For Childcare 3 Limited


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 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 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.

Opinions 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
First For Childcare 3 Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
First For Childcare 3 Limited


Auditors' 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 a Report of the Auditors 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:

Inquiry of management, those charged with governance and the company's solicitors around actual and potential litigation and claims.

Inquiry of company staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
First For Childcare 3 Limited


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 a Report of the Auditors 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.




Jonathon Dale BA(Hons) FCA (Senior Statutory Auditor)
for and on behalf of Independent Auditors LLP
Emstrey House North
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

29 August 2025

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Income Statement
for the Year Ended 31 August 2024

2024 2023
Notes £    £   

TURNOVER 3 2,336,844 2,327,620

Cost of sales (1,403,175 ) (1,469,540 )
GROSS PROFIT 933,669 858,080

Administrative expenses (489,605 ) (531,356 )
444,064 326,724

Other operating income 6,131 4,072
OPERATING PROFIT 5 450,195 330,796

Interest receivable and similar income 1,750 1,742
451,945 332,538

Interest payable and similar expenses 6 (302,094 ) (250,933 )
PROFIT BEFORE TAXATION 149,851 81,605

Tax on profit 7 (76,032 ) (44,914 )
PROFIT FOR THE FINANCIAL YEAR 73,819 36,691

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Other Comprehensive Income
for the Year Ended 31 August 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 73,819 36,691


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

73,819

36,691

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Balance Sheet
31 August 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 192,140 266,515
Tangible assets 11 4,260,965 4,339,317
4,453,105 4,605,832

CURRENT ASSETS
Debtors 12 98,317 310,803
Cash at bank and in hand 838,276 983,784
936,593 1,294,587
CREDITORS
Amounts falling due within one year 13 972,152 907,717
NET CURRENT (LIABILITIES)/ASSETS (35,559 ) 386,870
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,417,546

4,992,702

CREDITORS
Amounts falling due after more than
one year

14

(3,934,550

)

(4,107,244

)

PROVISIONS FOR LIABILITIES 18 (42,881 ) (42,170 )
NET ASSETS 440,115 843,288

CAPITAL AND RESERVES
Called up share capital 19 100 100
Retained earnings 20 440,015 843,188
SHAREHOLDERS' FUNDS 440,115 843,288

The financial statements were approved by the director and authorised for issue on 21 August 2025 and were signed by:





Ms S C Denton - Director


FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Statement of Changes in Equity
for the Year Ended 31 August 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 September 2022 100 889,497 889,597

Changes in equity
Dividends - (83,000 ) (83,000 )
Total comprehensive income - 36,691 36,691
Balance at 31 August 2023 100 843,188 843,288

Changes in equity
Dividends - (476,992 ) (476,992 )
Total comprehensive income - 73,819 73,819
Balance at 31 August 2024 100 440,015 440,115

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Cash Flow Statement
for the Year Ended 31 August 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 640,524 488,601
Interest paid (302,094 ) (250,933 )
Tax paid 1,551 (102,622 )
Net cash from operating activities 339,981 135,046

Cash flows from investing activities
Purchase of tangible fixed assets (8,688 ) (13,097 )
Interest received 1,750 1,742
Net cash from investing activities (6,938 ) (11,355 )

Cash flows from financing activities
Capital repayments in year (160,248 ) (175,113 )
Amount introduced by directors 155,549 -
Amount withdrawn by directors 3,140 (156,211 )
Equity dividends paid (476,992 ) (83,000 )
Net cash from financing activities (478,551 ) (414,324 )

Decrease in cash and cash equivalents (145,508 ) (290,633 )
Cash and cash equivalents at beginning
of year

2

983,784

1,274,417

Cash and cash equivalents at end of
year

2

838,276

983,784

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Cash Flow Statement
for the Year Ended 31 August 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 149,851 81,605
Depreciation charges 161,414 163,287
Finance costs 302,094 250,933
Finance income (1,750 ) (1,742 )
611,609 494,083
Decrease/(increase) in trade and other debtors 56,937 (63,196 )
(Decrease)/increase in trade and other creditors (28,022 ) 57,714
Cash generated from operations 640,524 488,601

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2024
31/8/24 1/9/23
£    £   
Cash and cash equivalents 838,276 983,784
Year ended 31 August 2023
31/8/23 1/9/22
£    £   
Cash and cash equivalents 983,784 1,274,417


FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Cash Flow Statement
for the Year Ended 31 August 2024


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/9/23 Cash flow At 31/8/24
£    £    £   
Net cash
Cash at bank and in hand 983,784 (145,508 ) 838,276
983,784 (145,508 ) 838,276
Debt
Debts falling due within 1 year (159,490 ) (12,445 ) (171,935 )
Debts falling due after 1 year (4,107,244 ) 172,694 (3,934,550 )
(4,266,734 ) 160,249 (4,106,485 )
Total (3,282,950 ) 14,741 (3,268,209 )

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements
for the Year Ended 31 August 2024


1. STATUTORY INFORMATION

First For Childcare 3 Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been 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. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the value of work carried out in respect of services provided to customers. Turnover is recognised when the company obtains the right to consideration.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Improvements to property - 10% on cost
Plant and machinery - 25% on cost

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, which the transaction is measured at the present value of the future receipts discounted at market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangement entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payments is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


2. ACCOUNTING POLICIES - continued

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


2. ACCOUNTING POLICIES - continued

Going concern
The current economic conditions present increased risks for all businesses. In response to such conditions, the director has carefully considered these risks, including an assessment of uncertainty on future trading projections for a period of at least twelve months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

Based on this assessment, the director considers that the Company maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations of external liabilities.

In addition, the Company's assets are assessed for recoverability on a regular basis, and the director considers that the Company is not exposed to losses of these assets which would affect their decision to adopt the going concern basis.

The director is therefore satisfied and has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. Theses financial statements have therefore been prepared on a going concern basis.

Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are 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 are recognised in income in the period in which it becomes receivable.

Grants relating to assets are 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 is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Services 2,336,844 2,327,620
2,336,844 2,327,620

The whole of the turnover is attributable to the principle activity of the company wholly undertaken in the United Kingdom.

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,209,060 1,258,340
Social security costs 91,235 84,345
Other pension costs 23,503 22,655
1,323,798 1,365,340

The average number of employees during the year was as follows:
2024 2023

Staff 58 70

2024 2023
£    £   
Director's remuneration - -

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


5. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Hire of plant and machinery 16,342 16,085
Other operating leases 18,480 17,340
Depreciation - owned assets 87,040 88,912
Goodwill amortisation 74,375 74,375
Auditors' remuneration 13,440 16,200

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Interest 1,059 -
Bank loan interest 301,035 250,933
302,094 250,933

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 75,321 48,730

Deferred tax 711 (3,816 )
Tax on profit 76,032 44,914

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 149,851 81,605
Profit multiplied by the standard rate of corporation tax in the UK
of 25% (2023 - 21.520%)

37,463

17,561

Effects of:
Depreciation in excess of capital allowances 37,858 32,007
Adjustments to tax charge in respect of previous periods - (838 )
Deferred tax 711 (3,816 )
Total tax charge 76,032 44,914

8. DIVIDENDS
2024 2023
£    £   
Interim 476,992 83,000

9. GOVERNMENT GRANTS

During the financial year, the nursery received grants from the local authorities totalling £6,099 (2023: £4,025). These grants were provided in relation to SENDIFS and apprenticeship grant payments.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


10. INTANGIBLE FIXED ASSETS
Goodwill
£   
Cost
At 1 September 2023
and 31 August 2024 743,752
Amortisation
At 1 September 2023 477,237
Amortisation for year 74,375
At 31 August 2024 551,612
Net book value
At 31 August 2024 192,140
At 31 August 2023 266,515

11. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery Totals
£    £    £    £   
Cost
At 1 September 2023 4,746,294 28,280 184,770 4,959,344
Additions - - 8,688 8,688
At 31 August 2024 4,746,294 28,280 193,458 4,968,032
Depreciation
At 1 September 2023 456,831 5,656 157,540 620,027
Charge for year 71,195 2,828 13,017 87,040
At 31 August 2024 528,026 8,484 170,557 707,067
Net book value
At 31 August 2024 4,218,268 19,796 22,901 4,260,965
At 31 August 2023 4,289,463 22,624 27,230 4,339,317

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 40,064 86,739
Other debtors 5,942 6,555
Directors' current accounts - 155,549
Prepayments and accrued income 52,311 61,960
98,317 310,803

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 15) 171,935 159,490
Trade creditors 103,768 96,464
Tax 126,418 49,546
Social security and other taxes 16,472 19,344
Other creditors 372,754 372,573
Directors' current accounts 3,140 -
Accruals and deferred income 177,665 210,300
972,152 907,717

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 15) 3,934,550 4,107,244

15. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 171,935 159,490

Amounts falling due between one and two years:
Bank loans - 1-2 years 184,407 171,879

Amounts falling due between two and five years:
Bank loans - 2-5 years 637,754 594,248

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


15. LOANS - continued
2024 2023
£    £   
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 3,112,389 3,341,117

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 17,640 13,680
Between one and five years 72,000 1,140
In more than five years 73,500 -
163,140 14,820

17. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 4,073,152 4,227,844

Bank loans are secured on land and property held by the company.

18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 42,881 42,170

Deferred
tax
£   
Balance at 1 September 2023 42,170
Provided during year 711
Balance at 31 August 2024 42,881

The deferred tax account consists of the tax effect of timing differences in respect of accelerated capital allowances.

FIRST FOR CHILDCARE 3 LIMITED (REGISTERED NUMBER: 10526074)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary £1.00 100 100

20. RESERVES
Retained
earnings
£   

At 1 September 2023 843,188
Profit for the year 73,819
Dividends (476,992 )
At 31 August 2024 440,015

Profit and loss account - This reserve records retained earnings and accumulated losses

21. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 August 2024 and 31 August 2023:

2024 2023
£    £   
Ms S C Denton
Balance outstanding at start of year 155,549 (662 )
Amounts advanced 321,443 244,011
Amounts repaid (476,992 ) (87,800 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 155,549

22. RELATED PARTY DISCLOSURES

Other related parties
2024 2023
£    £   
Amount due from related party 5,942 -
Amount due to related parties 366,953 366,953

There are no formal terms of repayment of the related party balances.