Registration number:
for the
Year Ended 31 December 2024
Careroom Limited
Contents
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Company Information |
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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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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Careroom Limited
Company Information
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Directors |
I A Y Dardas C L French A Ridha G J Tanner |
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Registered office |
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Auditors |
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Careroom Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the company is the provision of childcare services.
Fair review of the business
Careroom Limited trading as Toad Hall Nursery Group now consists of 13 children's day nurseries covering the Home Counties of England. The nurseries are based in varied premises and provide full day care and early education for children from the age of 3 months to 5 years.
The nurseries accept Government funding for children from the age of 9 months old, following the change in the government policy, and offer a school day session to accommodate the 30 hours free education that children between 3 and 4 years old are entitled to. We have maintained good relationships with Local Authority advisory staff and their advice is sought when necessary.
We have robust and rigorous risk assessments and policies. Our approach to Health and Safety continued throughout the year with regular audits at every site, designed to ensure we maintain best practice and are always fully complaint.
The results for the year which are set out in the profit and loss account show turnover of £14,903,374 (2023 - £12,565,095) and an operating profit of £1,215,395 (2023 - £371,851). At 31 December 2024, the company had net assets of £4,539,685 (2023 - £4,050,896). The directors consider the performance for the year end the financial position at the year end to be satisfactory.
The primary key performance indicator is regarded as percentage occupancy. Average occupancy across all nurseries in 2024 was 67% (2023 - 68%).
Principal risks and uncertainties
Public funding
The market in some areas is challenging as the impact of the current governmental and Local Authority cutbacks continues to make its mark. The economic climate has also affected how parents use childcare and we have seen an increase in children taking part-time places and reducing their days. In common with all nurseries the company receives and applies for funding from government bodies and from Local Authorities. In an economic environment where public spending and Local Authority cuts are expected to be significant the amount of such funding which will be available to the company in the future is uncertain.
Credit risk
Nursery fees are paid at the start of the month in advance, and increasingly by direct debit, therefore the credit risk is minimal. There is a healthy cash flow and this is monitored carefully by the Board and Management.
Approved by the
Director
Careroom Limited
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors of the company
The directors who held office during the year were as follows:
Dividends
The directors propose the payment of a dividend of £329,000 (2023 - £879,917).
Employment of disabled persons
Applications for employment by disabled persons are always fully considered having regard to their particular aptitudes, abilities and suitability for employment in our industry but no special provision is made for training or career development. Within the limits of their disabilities, they are eligible for promotion and are given equal consideration with other applicants. Every effort is made to continue the employment of persons who have become disabled during service with the Company.
Going concern
The business aims to reinvest heavily each year as part of its strategy to establish itself as a provider of choice for families. After consolidating our existing nurseries our focus for 2025 can now turn to increasing our company footprint by looking for nurseries with a 60 to 100 place capacity. The increase in turnover and an increased operating profit this year have resulted in an increase in net assets at 31 December 2024 to £4,539,685 from £4,050,896 in 2023.
The business expects to be able to meet all its financial commitments for the next 12 months from the date of approval of these financial statements. The business is on target to meet its three year plan to substantially improve turnover and profitability.
The Directors, therefore, consider it appropriate to continue to prepare the financial statements on a going concern basis.
Employee involvement
The directors acknowledge the importance of good communication and working relationships with employees. Regular contact and exchanges of information are maintained by the board through meetings with the departmental managers whose responsibility it is to communicate with the employees generally.
Future developments
The main focus for 2025 is to continue to provide quality childcare and search for new investment opportunities to expand capacity.
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.
Appointment of auditors
The auditor, Hazlewoods LLP was appointed as auditor to the company, following the resignation of Forvis Mazars LLP and have expressed their willingness to continue in office.
Careroom Limited
Directors' Report for the Year Ended 31 December 2024
Approved by the
Director
Careroom 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:
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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 United Kingdom 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 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Careroom Limited
Independent Auditor's Report to the Members of Careroom Limited
Opinion
We have audited the financial statements of Careroom Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 company's affairs as at 31 December 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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the 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:
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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:
Careroom Limited
Independent Auditor's Report to the Members of Careroom Limited
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
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the financial statements are not in agreement with the accounting records and returns; or |
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certain disclosures of directors' remuneration specified by law are not made; or |
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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 5, 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’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
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enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
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reading minutes of meetings of those charged with governance. |
Careroom Limited
Independent Auditor's Report to the Members of Careroom Limited
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of this 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.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Careroom Limited
Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
(As restated) |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
1,215,395 |
371,853 |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
( |
( |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Careroom Limited
(Registration number: 03614275)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
- |
- |
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Tangible assets |
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Investment property |
- |
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Current assets |
|||
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Debtors |
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Cash at bank and in hand |
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- |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions |
(73,447) |
(67,787) |
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Deferred tax liabilities |
(79,638) |
(11,820) |
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Net assets |
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Capital and reserves |
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Called up share capital |
1,450,000 |
1,450,000 |
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Revaluation reserve |
- |
100,000 |
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Retained earnings |
3,089,685 |
2,500,896 |
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Shareholders' funds |
4,539,685 |
4,050,896 |
Approved and authorised by the
Director
Careroom Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Revaluation reserve |
Retained earnings |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
- |
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Dividends |
- |
- |
( |
( |
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Other movements on reserves |
- |
(100,000) |
100,000 |
- |
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At 31 December 2024 |
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- |
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Share capital |
Revaluation reserve |
Retained earnings |
Total |
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At 1 January 2023 |
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Profit for the year |
- |
- |
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Dividends |
- |
- |
( |
( |
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At 31 December 2023 |
1,450,000 |
100,000 |
2,500,896 |
4,050,896 |
Careroom Limited
Statement of Cash Flows for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
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Profit 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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Finance income |
( |
( |
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Finance costs |
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Income tax expense |
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Working capital adjustments |
|||
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(Increase)/decrease in trade debtors |
( |
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Increase in trade creditors |
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Increase in provisions |
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Cash generated from operations |
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
|||
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Interest received |
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Acquisitions of tangible assets |
( |
( |
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Proceeds from sale of investment properties |
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- |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
|||
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Interest paid |
( |
( |
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Repayment of bank borrowing |
( |
( |
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Proceeds from other borrowing draw downs |
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- |
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Dividends paid |
( |
( |
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Net cash flows from financing activities |
( |
( |
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Net increase/(decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at 1 January |
( |
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Cash and cash equivalents at 31 December |
474,507 |
(69,168) |
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Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England and Wales
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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 United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Going concern
The business aims to reinvest heavily each year as part of its strategy to establish itself as a provider of choice for parents. The increase in turnover and an increase in operating profit this year have resulted in an increase in net assets to £4,050,896 from £4,539,685 in 2024.
The directors have prepared and reviewed a forecast and budget and are therefore satisfied that the accounts can be prepared on a going concern basis.
The business expects to be able to meet all its financial commitments for the next 12 months from the date of approval of these financial statements. The business is on target to meet its three year plan to substantially improve turnover and profitability.
The directors, therefore, consider it appropriate to continue to prepare the financial statements on a going concern basis.
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Prior period errors
During the year, the directors have reviewed the allocation of costs in the Profit and Loss account. Costs not including wages and salary costs of £2,739,043 have been reallocated from cost of sales to administrative expenses. This has no impact on the overall profit for the comparative period.
Judgements and estimation uncertainty
These financial statements do not contain any significant judgements or estimation uncertainty |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of early years
education exclusive of value added tax. Turnover is shown net of discounts. The company recognises
revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will
flow to the entity and specific criteria have been met for the company's activities.
Any payment received on account from parents is initially recognised as a liability. Subsequently, fees from parents are credited to the profit and loss account in the period that the services are rendered.
Any payment received from parents as a deposit is initially recognised as a liability and refunded when the child resigns from the nursery,
Tax
The tax expense for the period comprises corporation tax and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted by the reporting date in the countries where the company operates and generates taxable income.
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are not discounted.
Tangible assets
Tangible assets are stated in the statement of financial position 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 over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Buildings |
5 years straight line |
|
Computer Equipment |
3 years straight line |
|
Fixtures |
5 years straight line |
|
Furniture |
4 years straight line |
|
Kitchen Equipment |
4 years straight line |
Investment property
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Rent
Rent revenue from investment properties is recognised on a straight-line basis over the lease term. Lease incentives granted are recognised as part of the rental revenue. Contingent rents are recognised as income in the period when earned.
Goodwill
Goodwill represents the excess of the cost of a business combination over the fair value of the Company’s share of the net identifiable assets of the acquired business at the date of acquisition. Goodwill on acquisitions of businesses is included in ‘intangible assets’. Goodwill is carried at cost less accumulated amortisation and any impairments. Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life. The useful life of goodwill has been identified as 3 years based on the industry’s average customer retention period.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
3 years straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
A provision is recognised when the Company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation.
A dilapidations provision is created on inception of a lease. These provisions are a best estimate of the cost required to return leased properties to their original condition upon termination of the lease. Where the obligation arises from ‘wear and tear’, the provision is accrued as the ‘wear and tear’ occurs. The effect of the time value of money is not material and therefore the provisions are not discounted.
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 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.
Operating leases: The company as a lessee
Rentals payable under operating leases are charged to profit or loss on a straight line basis over the lease term.
Operating leases: The company as a lessor
Amounts due from leases under operating leases are credited to income on a straight-line basis over the term of the relevant lease.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term.
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.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
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
Classification
Recognition and measurement
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Financial instruments (continued)
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
|
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Rendering of services |
|
|
The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Government grants |
- |
|
|
Sub lease rental income |
- |
|
|
Miscellaneous other operating income |
|
|
|
|
|
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - other |
|
|
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Other interest receivable |
193,321 |
187,774 |
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest expense on other finance liabilities |
|
- |
|
|
|
|
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 |
|
|
|
Other employee expense |
|
|
|
|
|
|
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was as follows:
|
2024 |
2023 |
|
|
Administration and support |
15 |
13 |
|
Nursery staff |
381 |
339 |
|
Directors |
6 |
6 |
|
|
|
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
295,618 |
205,935 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under defined benefit pension scheme |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
|
|
298,401 |
121,835 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
- |
18,475 |
|
Total deferred taxation |
|
|
|
Tax expense in the income statement |
|
|
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 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 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax expense relating to changes in tax rates or laws |
|
|
|
Tax increase from other tax effects |
- |
|
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2024 |
Liability |
|
Fixed asset timing differences |
|
|
2023 |
Liability |
|
Fixed asset timing differences |
|
|
Intangible assets |
|
Goodwill |
|
|
Cost |
|
|
At 1 January 2024 and at 31 December 2024 |
|
|
Amortisation |
|
|
At 1 January 2024 and at 31 December 2024 |
|
|
Carrying amount |
|
|
At 31 December 2024 |
- |
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
|
Leasehold property and improvements |
Furniture, fittings and equipment |
Office Equipment |
Site Reinstatement |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Additions |
|
|
|
- |
|
|
At 31 December 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2024 |
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Investment properties |
|
2024 |
|
|
At 1 January |
|
|
Disposals |
( |
|
At 31 December |
- |
|
Debtors |
|
2024 |
2023 |
|
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
Amounts owed by group undertakings include principle of £2,821,188 (2023 - £2,821,188) of which interest is charged on £2,119,188 (2023 - £2,119,188) at either 1% per month or based on the Bank of England base rate. The principle and interest is considered due within one year.
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other payables |
|
|
|
|
Accruals |
|
|
|
|
Corporation tax liability |
298,398 |
121,835 |
|
|
Deferred income |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Other creditors |
|
|
Other creditors due after more than one year relates to rent-free periods in relation to operating leases where the Company is a lessee.
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Loans and borrowings |
Current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
- |
|
|
Bank overdrafts |
- |
|
|
Other borrowings |
|
- |
|
|
|
|
Bank borrowings in the prior year related to a CBILS loan which was repaid in the year.
Other borrowings includes principle of £400,000 which is repayable in full in February 2025. Interest is charged at 15% per annum.
|
Provisions |
|
Dilapidation provision |
|
|
At 1 January 2024 |
|
|
Additional provisions |
|
|
At 31 December 2024 |
|
|
|
|
As part of the property leasing agreements, the Company is contractually obliged to repair any damage incurred during the life of the leases. The cost is charged to the profit and loss as the obligation arises. The provision is expected to be utilised as the lease agreements expire.
|
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 £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
1,450,000 |
|
1,450,000 |
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
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 |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
Operating leases - lessor
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 |
- |
|
|
- |
|
|
Dividends |
|
2024 |
2023 |
|
|
Dividends paid |
329,000 |
879,917 |
|
Analysis of changes in net debt |
|
At 1 January 2024 |
Financing cash flows |
Other non-cash changes |
At 31 December 2024 |
|
|
Cash and cash equivalents |
||||
|
Cash |
- |
474,509 |
- |
474,509 |
|
Overdrafts |
(69,168) |
69,168 |
- |
- |
|
(69,168) |
543,677 |
- |
474,509 |
|
|
Borrowings |
||||
|
Long term borrowings |
(250,000) |
(149,504) |
(2,469) |
(401,973) |
|
( |
|
( |
|
|
|
|
||||
Careroom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Related party transactions |
Summary of transactions with key management
Summary of transactions with other related parties
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate controlling party is