ACCOUNTS - Final Accounts preparation

Registered number: SC203106

Charity number: SC029731

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the charitable company, its Trustees and advisers	1
Trustees' report	2 - 6
Independent auditors' report on the financial statements	7 - 10
Statement of financial activities	11
Balance sheet	12
Notes to the financial statements	13 - 22

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS

FOR THE YEAR ENDED 31 MARCH 2025

Trustees	M Reid
	F Waterston (resigned 26 August 2024)
	D Hayward (resigned 4 August 2025)
	M Fairbairn (resigned 11 November 2024)
	D Doughty Shenton
	C Watson
	R Budavari (appointed 3 March 2025)
	N Haston (appointed 3 February 2025)
	G Le Tissier (appointed 20 January 2025)

Company registered number

SC203106

Charity registered number

SC029731

Registered office

Valley Park Community Centre

37 Southhouse Road

Edinburgh

Midlothian

EH17 8EU

Company secretary

P Ellis

Independent auditors

Sumer Auditco Limited

Chartered Accountants & Statutory Auditors

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH

Bankers

Bank of Scotland

Unit 15A Cameron Toll

Lady Road

Edinburgh

EH16 5PB

Page 1

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The Trustees present their annual report together with the audited financial statements of the charitable company for the 1 April 2024 to 31 March 2025. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the charitable company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Objectives and aims

The objectives of the charitable company are:
1. To provide a quality affordable and inclusive childcare service for those people within the Liberton / Gilmerton Neighbourhood Partnership area who are excluded from key aspects of life.
2. To improve access to economic activity and learning opportunities for local parents and carers by providing childcare which will enable them to take up job, training and educational opportunities.
3. To provide a safe, pleasant and stimulating child-centered play care environment where children learn and broaden their experiences through participating in play activities.

Page 2

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

Achievements and performance

a. Main achievements of the charitable company

During 2024–25, Childcare Connections has continued to deliver high-quality, inclusive childcare for families across our community. By offering reliable and flexible provision, we enable parents and carers to access employment, education, and training opportunities — contributing to broader social and economic wellbeing.
Our service provides a safe, nurturing environment that promotes play, creativity, emotional wellbeing, and social connection outside of school hours. Staff support children’s individual needs through consistent routines and responsive care, fostering a sense of belonging and security.
This financial year marked a significant shift in our funding landscape. The conclusion of our long-standing funding contract in July 2024 brought an end to a historic model of financial support. Following a successful application, a new contract was awarded — albeit at a substantially reduced rate. In recognition of the impact this reduction would have on service delivery, a tapered grant was agreed with Capital City Partnership to support the transition.
In response, the Childcare Connections Board adopted a strategic and proactive approach to financial management. Key actions included:
• A comprehensive review of budget and expenditure
• Adjustments to parental fees to reflect operational needs while maintaining affordability
• Ongoing monitoring of income and reserves to ensure sustainability
• Scenario planning to support long-term viability and responsiveness to future funding environments
The Board remains committed to safeguarding the quality and accessibility of the service. In the year ahead, we will continue to explore additional funding opportunities, pursue cost efficiencies, and strengthen links with local schools and community organisations.
Our staff team has remained stable and deeply committed throughout the year, completing training in key areas such as child protection, inclusive practice, and first aid. Notable achievements include:
• Two staff members successfully completing SVQ Level 3 in Social Services (Children and Young People)
• One staff member achieving the Professional Development Award (PDA) Level 9 in Childhood Practice — a significant milestone in leadership and advanced practice
These accomplishments reflect our continued investment in workforce development and alignment with national standards for quality childcare provision. Regular supervision, reflective practice sessions, and team meetings have supported a culture of continuous improvement and professional growth.
Amid sector-wide challenges in recruiting and retaining qualified childcare professionals in out of school care, our commitment to staff development has never been more critical. Childcare Connections remains a Real Living Wage employer, recognising the importance of fair pay in valuing staff contributions and supporting workforce sustainability. This commitment underpins our efforts to attract and retain skilled practitioners who share our values and dedication to high-quality care.
In the coming year, Childcare Connections will:
• Explore additional funding streams to support long-term sustainability
• Review the capacity of out of school clubs to meet in line with demand for the services
• Enhance staff wellbeing and retention strategies
• Deepen family engagement
• Increase Board membership

Page 3

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

Financial review
The charitable company had net expenditure of £14,816 in the year (2024 - net expenditure of £2,686). The main sources of funding continued to be from parental fees and funding from the Capital City Partnership.

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

At 31 March 2025, free reserves amounted to £397,563 (2024 - £411,432). The trustees' policy is to retain 6 months' worth of unrestricted running costs in order to meet commitments and cover any unexpected expenditure. This equates to approximately £265,000 and hence the charitable company is holding unrestricted free reserves at the year end which are well in advance of the target levels.

Structure, governance and management

a. Constitution

The charity is a company limited by guarantee and is constituted by its Memorandum and Articles of Association. It is governed by a Board of Directors. The Directors make the strategic decisions regarding the charity and delegate to the staff the day to day operations.

b. Methods of appointment or election of Trustees

Requirements are discussed at Board meetings. Vacant positions available on them Board are discussed regularly, and attempts made to identify individuals with the appropriate skill base who are then encouraged to apply to become trustees.

c. Organisational structure and decision-making policies

The Board of Directors meets at least once every two months and, in consultation with the senior members of staff, makes policy decisions, receives budgetary information and ratifies any service delivery decisions. At all times we seek to fulfil the requirements of our founders and to satisfy the demands from the local community in the delivery of our service.
As an organisation we are seeking to maximise the skill base of those involved. This is achieved through encouraging staff training and development, and by attempting to attract Board members with a variety of skills and experience.

d. Policies adopted for the induction and training of Trustees

New trustees receive a director's pack of information and a job description.

Page 4

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

Structure, governance and management (continued)

e. Financial risk management

The trustees have a duty to identify and review the risks to which the charitable company is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Board of Directors conducts an annual review of the major risks to which the charitable company is exposed, and systems are then established to mitigate those risks.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees 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 charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

∙select suitable accounting policies and then apply them consistently;

∙observe the methods and principles of the Charities SORP (FRS 102);

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

∙so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and

∙that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

Auditors

The auditors, Sumer Auditco Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

M Reid
Date: 12 November 2025

Page 6

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILDCARE CONNECTIONS LIMITED

Opinion

We have audited the financial statements of Childcare Connections Limited (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of financial activities, the Balance sheet, and the related notes, 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 charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure 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, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 7

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILDCARE CONNECTIONS LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

∙the Trustees' report has 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

∙adequate and proper 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 Trustees' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit; or

∙the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 Trustees 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 Trustees are responsible for assessing the charitable 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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 8

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILDCARE CONNECTIONS LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, 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 or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities and Trustee Investment (Scotland) Act 2005 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above 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 would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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 Auditors' report.

Page 9

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILDCARE CONNECTIONS LIMITED (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and Trustees those matters we are required to state to them in an Auditors' 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 charitable company, its members, as a body, and its trustees, as a body for our audit work, for this report, or for the opinions we have formed.

Greg Stapley (Senior statutory auditor)

for and on behalf of

Sumer Auditco Limited

Chartered Accountants & Statutory Auditors

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH

12 November 2025

Sumer Auditco Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 10

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted funds 2025	Restricted funds 2025	Total funds 2025	Total funds 2024
£	£	£	£

Income from:
Charitable activities	3	480,192	5,455	485,647	481,646
Total income		480,192	5,455	485,647	481,646

Expenditure on:
Raising funds	4	26,809	-	26,809	26,023
Charitable activities	5	468,199	5,455	473,654	458,309
Total expenditure		495,008	5,455	500,463	484,332

Net movement in funds

(14,816)

(2,686)

Reconciliation of funds:
Total funds brought forward	414,150	-	414,150	416,836
Net movement in funds	(14,816)	-	(14,816)	(2,686)
Total funds carried forward	399,334	-	399,334	414,150

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 13 to 22 form part of these financial statements.

Page 11

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

REGISTERED NUMBER: SC203106

BALANCE SHEET

AS AT 31 MARCH 2025

			2025		2024
	Note		£		£

Fixed assets
Tangible assets	10		1,771		2,718
			1,771		2,718
Current assets
Debtors	11	2,604		5,260
Cash at bank and in hand		412,641		427,952
		415,245		433,212
Current liabilities
Creditors: amounts falling due within one year	12	(17,682)		(21,780)
Net current assets			397,563		411,432
Total net assets			399,334		414,150

Charity funds
Restricted funds	13	-	-
Unrestricted funds	13	399,334	414,150
Total funds		399,334	414,150

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

M Reid
Date: 12 November 2025
The notes on pages 13 to 22 form part of these financial statements.

Page 12

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Childcare Connections Limited is a private company limited by guarantee incorporated in Scotland, governed by their Memorandum and Articles of Association. The charity's registered office is Valley Park Community Centre, 37 Southhouse Road, Edinburgh, EH17 8EU.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Childcare Connections Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The presentation currency of these financial statements is GBP, rounded to the nearest pound.

2.2

Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3

Income

All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Page 13

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)


	2.4	Expenditure

Expenditure is recognised on an accruals basis when a liability is incurred and it is reported as part of the expenditure to which it relates. The charitable company is not registered for VAT and accordingly expenditure is shown gross of irrecoverable VAT. The following specific policies are applied to particular categories of expenditure:

Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of the charitable activities carried out which meet the objectives of the charity. Expenditure on charitable activities includes governance costs which comprise the costs of running the charity, including strategic planning for its future development, external audit, any legal advice for the trustees and all the costs of complying with constitutional and statutory requirements, such as the costs of Board meetings and of preparing statutory accounts and satisfying public accountability.

Costs of raising funds include all staff costs incurred in obtaining external funding for the charity and all other direct costs associated to fundraising activities.

2.5

Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

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

Depreciation is provided on the following basis:

Office equipment

over 4 years

2.6

Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

2.7

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments.

Page 14

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.8

Creditors and provisions

Creditors are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Creditors are recognised at the amount that the charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.9

Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.10

Pensions

The charitable company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charitable company to the fund in respect of the year.

2.11

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 15

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

3.	Income from charitable activities

		Unrestricted funds 2025	Restricted funds 2025	Total funds 2025	Total funds 2024
		£	£	£	£


Parental fees	403,097	-	403,097	340,231
Grants	77,095	5,455	82,550	141,415
Total 2025	480,192	5,455	485,647	481,646
Total 2024	473,471	8,175	481,646

4.	Expenditure on raising funds


		Unrestricted funds 2025	Total funds 2025	Total funds 2024
		£	£	£


Staff costs	25,417	25,417	24,631
Marketing	1,392	1,392	1,392
Total 2025	26,809	26,809	26,023
Total 2024	26,023	26,023

Page 16

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

5.	Analysis of expenditure on charitable activities
	Summary by fund type

		Unrestricted funds 2025	Restricted funds 2025	Total 2025	Total 2024
		£	£	£	£


General Fund	468,199	-	468,199	450,134
Capability Scotland	-	5,455	5,455	8,175
Total 2025	468,199	5,455	473,654	458,309
Total 2024	450,134	8,175	458,309

6.	Analysis of expenditure by activities

		Activities undertaken directly 2025	Support costs 2025	Total funds 2025	Total funds 2024
		£	£	£	£


General Fund	399,224	68,975	468,199	450,134
Capability Scotland	5,455	-	5,455	8,175
Total 2025	404,679	68,975	473,654	458,309
Total 2024	390,052	68,257	458,309

Page 17

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

6.Analysis of expenditure by activities (continued)

Analysis of direct costs

	General Fund 2025	Capability Scotland 2025	Total funds 2025	Total funds 2024
	£	£	£	£


Staff costs	338,942	-	338,942	320,450
Agency staff	-	-	-	220
Rent	5,000	-	5,000	4,400
Materials and play care	32,534	5,455	37,989	41,414
Other direct costs	14,518	-	14,518	15,725
Audit and accountancy fees	8,230	-	8,230	7,843
Total 2025	399,224	5,455	404,679	390,052
Total 2024	381,877	8,175	390,052

Analysis of support costs

	General Fund 2025	Total funds 2025	Total funds 2024
	£	£	£


Staff costs	55,876	55,876	53,722
Depreciation	1,715	1,715	1,559
Other support costs	11,384	11,384	12,976
Total 2025	68,975	68,975	68,257
Total 2024	68,257	68,257

7.	Auditors' remuneration
		2025	2024
		£	£

Fees payable to the charitable company's auditor for the audit of the charitable company's annual accounts

7,560

7,200

Page 18

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

8.	Staff costs
		2025	2024
		£	£


Wages and salaries	394,849	374,381
Social security costs	19,094	18,401
Employer pension costs	6,292	6,021
	420,235	398,803

The average number of persons employed by the charitable company during the year was as follows:
	2025	2024
	No.	No.


Childcare	26	24
Management and administration	2	2
	28	26

No employee received remuneration amounting to more than £60,000 in either year.

The total amount of remuneration and benefits received by key management personnel, made up of the Operations Manager, Finance and Admin Officer and the Playcare Leaders, was £197,049 (2024 - £189,834).

9.	Trustees' remuneration and expenses
	During the year, no Trustees received any remuneration, expenses, or other benefits (2024 - £NIL).

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CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

10.	Tangible fixed assets

		Office equipment
		£
Cost or valuation
At 1 April 2024		11,907
Additions		768
At 31 March 2025		12,675
Depreciation
At 1 April 2024		9,189
Charge for the year		1,715
At 31 March 2025		10,904
Net book value
At 31 March 2025		1,771
At 31 March 2024		2,718

11.	Debtors
		2025	2024
		£	£


Due within one year
Trade debtors	263	704
Prepayments and accrued income	2,341	4,556
	2,604	5,260

12.	Creditors: Amounts falling due within one year
		2025	2024
		£	£


Trade creditors	1,202	1,913
Other taxation and social security	5,014	3,789
Other creditors	1,281	1,156
Accruals and deferred income	10,185	14,922
	17,682	21,780

Page 20

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.

Statement of funds

Statement of funds - current year
	Balance at 1 April 2024 £	Income £	Expenditure £	Balance at 31 March 2025 £
Unrestricted funds

General Fund

414,150

480,192

(495,008)

399,334

	Restricted funds
	Capability Scotland	-	5,455	(5,455)	-

Total of funds

414,150

485,647

(500,463)

399,334

The restricted fund is from Capability Scotland and is for the inclusion of children with additional needs in mainstream provision.

Statement of funds - prior year
	Balance at 1 April 2023 £	Income £	Expenditure £	Balance at 31 March 2024 £
Unrestricted funds

General Fund

416,836

473,471

(476,157)

414,150

	Restricted funds
	Capability Scotland	-	8,175	(8,175)	-

Total of funds

416,836

481,646

(484,332)

414,150

Page 21

CHILDCARE CONNECTIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

14.

Analysis of net assets between funds

Analysis of net assets between funds - current year
	Unrestricted funds 2025	Total funds 2025
	£	£

Tangible fixed assets	1,771	1,771
Current assets	415,245	415,245
Creditors due within one year	(17,682)	(17,682)
Total	399,334	399,334

Analysis of net assets between funds - prior year
	Unrestricted funds 2024	Total funds 2024
	£	£

Tangible fixed assets	2,718	2,718
Current assets	433,212	433,212
Creditors due within one year	(21,780)	(21,780)
Total	414,150	414,150

15.	Pension commitments

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable by the charitable company to the fund and amounted to £6,292 (2024 - £6,021). Contributions totaling £1,281 (2024 - £1,156) were payable to the fund at the balance sheet date.

16.	Related party disclosures

The trustees are of the opinion that there were no related party transactions in the current or previous financial year.

Page 22