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Registration number: 02022272

Queen Ethelburga's Services Limited

Annual Report and Financial Statements

for the Year Ended 31 August 2024

 

Queen Ethelburga's Services Limited

Contents

Strategic Report

1

Directors' Report

2

Statement of Directors' Responsibilities

3

Independent Auditor's Report

4 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 26

 

Queen Ethelburga's Services 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 activity of the company is provision of management, water & sewage and transport services along with shop and vending facilities.

Fair review of the business

The company's turnover has increased by 24% from the previous year. The loss on ordinary activities before taxation was £2,553,184 (2023 - £17,002,702). The reason for this loss is due to the provision against debts due from fellow group undertakings of £6,680,945 (2023 - £19,752,947), and therefore excluding these exceptional items, operating profit before tax would have been £4,127,761 (2023 - £2,750,245). The balance sheet on page 8 of the financial statements shows that the company's financial position has now weakened due to the provisions and now shows net current liabilities of £17,580,563 (2023 - £14,551,717). The directors have considered the going concern status of the company in the Directors Report on page 2.

The company's directors believe that further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance or position of the business, and that the ones identified are the key indicators that are used by the board to monitor the company's performance.

Both the level of business for the year and the year end financial position are considered satisfactory.

Principal risks and uncertainties

The business' principal financial instruments comprise group creditors and trade creditors. The main purpose of these instruments is to finance the business' operations.

All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business may make use of money market facilities where funds are available.

Competitive pressure in the UK is a continuing risk for the company. The company manages such risks by providing appropriate quality services to its customers.

The company's transactions are all in pound sterling and therefore there is no exposure to a movement in exchange rates.

Approved and authorised by the Board on 29 August 2025 and signed on its behalf by:
 

.........................................
C J Hall
Director

 

Queen Ethelburga's Services Limited

Directors' Report for the Year Ended 31 August 2024

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

Directors of the company

The directors who held office during the year were as follows:

C J Hall

A K Martin

Financial instruments

Objectives and policies

The management objectives are to retain sufficient liquid funds to enable it to meet its day to day requirements, minimise the company's exposure to fluctuating interest rates, and match the repayment schedule of any external borrowings or overdrafts with the future cash flows expected to arise from the company's trading activities.

Price risk, credit risk, liquidity risk and cash flow risk

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.

Its exposure to price risk, credit risk, liquidity risk and cash flow risk is minimised by retaining sufficient liquid funds to enable it to meet its day to day requirements.

Going concern

As at 31 August 2024, the Company reported net current liabilities of £17,580,563 (2023 - £14,551,717).

In making the going concern assessment, the directors have considered the net current liabilities position of the Company. Whilst the directors acknowledge the significance of this matter, their view is that the Company continues to have sufficient resources available to enable it to meet its liabilities as they fall due.

In reaching their conclusion, the directors have prepared cash flow forecasts to enable them to assess the financial position of the Company over the next 12 months.

The forecasts show that cash headroom exists to absorb some levels of downside against the assumptions made, should they occur. After consideration of the factors noted above, the directors continue to adopt the going concern basis in preparing the financial statements.

Disclosure of information to the auditors

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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 29 August 2025 and signed on its behalf by:
 

.........................................
C J Hall
Director

 

Queen Ethelburga's Services 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

Queen Ethelburga's Services Limited

Independent Auditor's Report to the Members of Queen Ethelburga's Services Limited

Opinion

We have audited the financial statements of Queen Ethelburga's Services Limited (the 'company') for the year ended 31 August 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 company'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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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.

 

Queen Ethelburga's Services Limited

Independent Auditor's Report to the Members of Queen Ethelburga's Services Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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, 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 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 3], 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.

 

Queen Ethelburga's Services Limited

Independent Auditor's Report to the Members of Queen Ethelburga's Services 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 company for fraud and identified the greatest potential for fraud in evaluating the validity of purchases and expenses, and cash balances, and the misappropriation of transactions through management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

We then performed audit procedures after consideration of the above risks which included the following:

assessing the validity of purchases and expenses by documenting and assessing the internal controls and performing tests of detail on purchases and expenses;

documenting and assessing the internal controls over cash balances and performing tests of detail on the balances and reconciliations;

enquiring of management concerning actual and potential litigation and claims;

reviewing correspondence with HMRC, and the company’s legal advisors;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

reading minutes of meetings of those charged with governance; and;

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

 

Queen Ethelburga's Services Limited

Independent Auditor's Report to the Members of Queen Ethelburga's Services Limited

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.

......................................
Andrew Padgett BFP, ACA, FCCA (Senior Statutory Auditor)
For and on behalf of Watson Buckle Limited,
Statutory Auditors & Chartered Accountants
Bradford

29 August 2025

 

Queen Ethelburga's Services Limited

Profit and Loss Account for the Year Ended 31 August 2024

Note

2024
£

2023
£

Turnover

3

24,574,526

19,782,230

Cost of sales

 

(23,606,366)

(19,115,514)

Gross profit

 

968,160

666,716

Administrative expenses

 

(972,017)

(1,000,913)

Other operating income

4

2,034,140

1,879,482

Operating profit

5

2,030,283

1,545,285

Gain on financial assets at fair value through profit and loss

 

250,000

-

Other interest receivable and similar income

6

1,191,471

1,844,251

Interest payable and similar expenses

7

(360,944)

(639,291)

Exceptional items

8

(5,663,994)

(19,752,947)

   

(4,583,467)

(18,547,987)

Loss before tax

 

(2,553,184)

(17,002,702)

Tax on loss

12

(792,628)

(755,447)

Loss for the financial year

 

(3,345,812)

(17,758,149)

 

Queen Ethelburga's Services Limited

(Registration number: 02022272)
Balance Sheet as at 31 August 2024

Note

2024
£

2023
£

           

Fixed assets

   

 

Tangible assets

13

 

6,790,945

 

7,357,911

Investment property

14

 

16,250,000

 

16,000,000

   

23,040,945

 

23,357,911

Current assets

   

 

Stocks

15

685,530

 

450,439

 

Debtors

16

23,858,031

 

26,831,825

 

Cash at bank and in hand

 

492,778

 

811,594

 

 

25,036,339

 

28,093,858

 

Creditors: Amounts falling due within one year

17

(42,616,902)

 

(42,645,575)

 

Net current liabilities

   

(17,580,563)

 

(14,551,717)

Net assets

   

5,460,382

 

8,806,194

Capital and reserves

   

 

Called up share capital

20

100

 

100

 

Revaluation reserve

21

5,192,377

 

5,192,377

 

Other reserves

21

5,318,892

 

5,068,892

 

Retained earnings

21

(5,050,987)

 

(1,455,175)

 

Shareholders' funds

   

5,460,382

 

8,806,194

Approved and authorised by the Board on 29 August 2025 and signed on its behalf by:
 

.........................................
C J Hall
Director

 

Queen Ethelburga's Services Limited

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

Share capital
£

Revaluation reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 September 2023

100

5,192,377

5,068,892

(1,455,175)

8,806,194

Profit/(loss) for the year

-

-

250,000

(3,595,812)

(3,345,812)

At 31 August 2024

100

5,192,377

5,318,892

(5,050,987)

5,460,382

Share capital
£

Revaluation reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 September 2022

100

5,192,377

5,068,892

16,302,974

26,564,343

Loss for the year

-

-

-

(17,758,149)

(17,758,149)

At 31 August 2023

100

5,192,377

5,068,892

(1,455,175)

8,806,194

 

Queen Ethelburga's Services Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Thorpe Underwood Hall
Great Ouseburn
York
YO26 9SZ

2

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 company's functional and presentation currency is pound sterling.

Summary of disclosure exemptions

The company has taken advantage of the exemption to disclose certain aspects of financial instruments, transactions with key management personnel and the exemption to prepare Statement of Cash Flows in accordance with Financial Reporting Standard 102 Section 1.12.

The company 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.

Name of parent of group

These financial statements are consolidated in the financial statements of Care and Recreation Holdings Limited.

The financial statements of Care and Recreation Holdings Limited may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

Queen Ethelburga's Services Limited

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

Going concern

As at 31 August 2024, the Company reported net current liabilities of £17,580,563 (2023 - £14,551,717).

In making the going concern assessment, the directors have considered the net current liabilities position of the Company. Whilst the directors acknowledge the significance of this matter, their view is that the Company continues to have sufficient resources available to enable it to meet its liabilities as they fall due.

In reaching their conclusion, the directors have prepared cash flow forecasts to enable them to assess the financial position of the Company over the next 12 months.

The forecasts show that cash headroom exists to absorb some levels of downside against the assumptions made, should they occur. After consideration of the factors noted above, the directors continue to adopt the going concern basis in preparing the financial statements.

 

Queen Ethelburga's Services Limited

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

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.

Shared expenses
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 company 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 £6,790,945 (2023 - £7,357,911).

Stock provision
The company 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 company 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 £23,858,031 (2023 - £26,831,825).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services to group companies and related undertakings in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the significant risks and rewards of ownership have been transferred to the buyer; the company retains no continuing involvement or control over the goods; the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity.

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 company operates and generates taxable income.

 

Queen Ethelburga's Services Limited

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the 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.

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, as follows:

Asset class

Depreciation method and rate

Short leasehold improvements

4% straight line basis

Plant and machinery

4% - 25% straight line basis

Fixtures, fittings and equipment

10% straight line basis

Motor vehicles

12.5% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually. Valuations are based on observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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 and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories 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.

Provisions

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

 

Queen Ethelburga's Services Limited

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

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 company 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.

Financial instruments

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of 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.

 

Queen Ethelburga's Services Limited

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

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

526,199

365,334

Rendering of services

24,048,327

19,416,896

24,574,526

19,782,230

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Rental income receivable

2,034,140

1,879,482

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

575,640

564,175

Profit on disposal of property, plant and equipment

-

(4,961)

6

Other interest receivable and similar income

2024
£

2023
£

Other finance income

1,191,471

1,844,251

7

Interest payable and similar expenses

2024
£

2023
£

Interest expense on other finance liabilities

360,944

639,291

8

Exceptional items

2024
£

2023
 £

Exceptional items

 

5,663,994

19,752,947

The exceptional item relates to a provision against amounts due from group undertakings and a write off of a debtor no longer recoverable.

 

Queen Ethelburga's Services Limited

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

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

271,505

234,191

Social security costs

26,733

22,232

Pension costs, defined contribution scheme

6,025

5,787

304,263

262,210

 

Queen Ethelburga's Services Limited

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

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

2

2

Other departments

7

7

9

9

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

30,228

21,384

Contributions paid to money purchase schemes

1

312

30,229

21,696

During the year the number of directors who were receiving benefits was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

2

2

11

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

33,607

26,300


 

The company has taken the exemption from disclosing remuneration receivable by auditors for other services as this information is disclosed within the group accounts.

12

Taxation

Tax charged/(credited) in the profit and loss account

 

Queen Ethelburga's Services Limited

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

2024
£

2023
£

Current taxation

UK corporation tax

784,628

724,058

UK corporation tax adjustment to prior periods

-

(16,611)

784,628

707,447

Deferred taxation

Arising from origination and reversal of timing differences

8,000

48,000

Tax expense in the profit and loss account

792,628

755,447

 

Queen Ethelburga's Services 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 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Loss before tax

(2,553,184)

(17,002,702)

Corporation tax at standard rate

(638,296)

(4,250,676)

Decrease in UK and foreign current tax from adjustment for prior periods

-

(16,611)

Tax decrease from effect of capital allowances and depreciation

-

(293)

Effect of expense not deductible in determining taxable profit (tax loss)

1,430,924

5,023,027

Effect of tax losses

784,628

724,058

Tax decrease arising from group relief

(784,628)

(724,058)

Total tax charge

792,628

755,447

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Accelerated capital allowances

203,000

Other provisions

6,000

209,000

2023

Asset
£

Accelerated capital allowances

211,000

Other provisions

6,000

217,000

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 £7,606 (2023 - £15,831).

 

Queen Ethelburga's Services Limited

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

13

Tangible assets

Short leasehold improvements
£

Plant and machinery
 £

Fixtures, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2023

6,936,090

2,015,579

7,301,192

800,342

17,053,203

Additions

-

-

8,674

-

8,674

At 31 August 2024

6,936,090

2,015,579

7,309,866

800,342

17,061,877

Depreciation

At 1 September 2023

1,390,399

933,909

6,879,741

491,243

9,695,292

Charge for the year

278,203

170,336

48,768

78,333

575,640

At 31 August 2024

1,668,602

1,104,245

6,928,509

569,576

10,270,932

Carrying amount

At 31 August 2024

5,267,488

911,334

381,357

230,766

6,790,945

At 31 August 2023

5,545,691

1,081,670

421,451

309,099

7,357,911

The short leasehold improvements have been built on land owned by Foxlow Limited, the ultimate parent undertaking, and is subject to ground rent leases of £4,670 (2023 - £4,190) per annum and land owned by group companies is subject to ground rent leases of £5,170 (2023 - £4,640) per annum.

Revaluation

The fair value of part of the company's Short leasehold improvements and Plant and Machinery was revalued at £5,600,000 and £1,275,000 respectively on 25 March 2021 by an independent valuer, Eddison's Taylors Business Chartered Surveyors, RICS.

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 these classes of assets been measured on a historical cost basis, their cost carried forward and accumulated depreciation carried forward would have been £7,155,583 (2023 - £7,155,583) and £6,294,189 (2023 - £6,088,881) respectively.

Had these classes of assets been measured on a historical cost basis, the carrying amount would have been £861,395 (2023 - £1,066,702).

 

Queen Ethelburga's Services Limited

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

14

Investment properties

2024
£

At 1 September 2023

16,000,000

Fair value adjustment

250,000

At 31 August 2024

16,250,000

The company's investment properties were revalued on 12 July 2024 at £16,250,000 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 property 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 £14,009,493 (2023 - £14,009,493).

The investment property has been built on land owned by Foxlow Limited, the ultimate parent undertaking, and is subject to a ground rent lease of £7,000 (2023 - £7,000) per annum.

15

Stocks

2024
£

2023
£

Finished goods and goods for resale

685,530

450,439

16

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

77,851

69,896

Amounts owed by related parties

 

22,822,872

24,736,480

Other debtors

 

698,333

1,758,473

Deferred tax assets

12

209,000

217,000

Corporation tax asset

 

49,975

49,976

   

23,858,031

26,831,825

 

Queen Ethelburga's Services Limited

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

17

Creditors

2024
£

2023
£

Due within one year

Trade creditors

1,294,760

1,080,005

Amounts due to related parties

40,064,430

40,543,790

Social security and other taxes

487,926

435,432

Outstanding defined contribution pension costs

299,898

236,845

Other creditors

423,762

300,733

Accruals

46,126

48,770

42,616,902

42,645,575

18

Deferred tax and other provisions

Deferred tax
£

At 1 September 2023

220,000

Increase (decrease) in existing provisions

(11,000)

At 31 August 2024

209,000

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £6,025 (2023 - £5,787).

Contributions totalling £299,898 (2023 - £236,845) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:

All shares rank pari passu for income, capital and voting rights.

 

Queen Ethelburga's Services Limited

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

21

Reserves

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

Includes all current and prior periods distributable profits and losses

Other reserves

Represents the fair value gains on revaluation of the investment property

22

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

36,652

14,186

Later than one year and not later than five years

8,679

4,000

Later than five years

5,000

6,000

50,331

24,186

The amount of non-cancellable operating lease payments recognised as an expense during the year was £42,389 (2023 - £54,203).

The operating leases information given above represents the full commitment and charge before recharges to other group companies and related entities.

Operating leases - lessor

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

375,570

375,570

Later than one year and not later than five years

1,502,280

1,502,280

Later than five years

406,868

782,438

2,284,718

2,660,288

 

Queen Ethelburga's Services Limited

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

Total contingent rents recognised as income in the period are £375,570 (2023 - £375,570).

23

Related party transactions

Income and receivables from related parties

2024

Key management
£

Other related parties
£

Receipt of services

-

29,818

Amounts receivable from related party

31,378

599,625

2023

Key management
£

Other related parties
£

Receipt of services

-

120,169

Amounts receivable from related party

1,723

134,231

Expenditure with and payables to related parties

2024

Other related parties
£

Loan interest

23,673

2023

Other related parties
£

Loan interest

86,514

Loans to related parties

Terms of loans to related parties

The loans to key management bear no interest and are repayable on demand.
 

Loans from related parties

Terms of loans from related parties

The balances bear interest at 1% over the Bank of England base rate, are unsecured and repayable on demand.
 

 

Queen Ethelburga's Services Limited

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

24

Financial instruments

Categorisation of financial instruments

2024
£

2023
£

Financial assets measured at fair value through the profit and loss

16,250,000

16,000,000

16,250,000

16,000,000

Financial assets measured at fair value

Investment property
The fair value of the investment property has been determined from the current market prices for comparable real estate determined annually. Valuations are based on observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset.


The fair value is £16,250,000 (2023 - £16,000,000) and the change in value included in profit or loss is £250,000 (2023 - £Nil).

25

Parent and ultimate parent undertaking

The company's immediate parent is The Collegiate Formation Limited, incorporated in England and Wales. The registered address of the Collegiate Formation Limited is Thorpe Underwood Hall, Great Ouseburn, York, YO26 9SZ.

 The ultimate parent is Foxlow Limited, incorporated in British Virgin Islands.

 The most senior parent entity producing publicly available financial statements is Care & Recreation Holdings Limited. These financial statements are available upon request from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

 The ultimate controlling party is The Acme Settlement.