Early Days Nursery Limited

	Page
Statement of Financial Position	1—2
Notes to the Financial Statements	3—7

1. General Information

Early Days Nursery Limited is a private company, limited by shares, incorporated in Scotland, registered number SC199638 . The registered office is 10 Walker Street, New Town, Edinburgh, EH3 7LA.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The directors have carefully considered the impact of COVID-19 on the business, in particular the impact on the childcare sector in which the company operates. Considering the closure of the nurseries, other than one remaining open for the children of keyworkers, the directors have taken the decision to utilise the Coronavirus Job Retention Scheme to furlough some staff in order to reduce costs during the downturn in business. Whilst activity has slowed, the directors are confident that the sector will return to health in the next 12 months and the business will return to normal operations.

2.3. Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	5% straight line per annum
Motor Vehicles	25% reducing balance per annum
Fixtures & Fittings	15% reducing balance per annum

The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of income and retained earnings.

2.5. Leasing and Hire Purchase Contracts

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to income statement as incurred.

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Early Days Nursery Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

2.6. Financial Instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

2.7. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

2.8. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the income statement as they become payable in accordance with the rules of the scheme.

2.9. Government Grant

Government grants are recognised in the income statement in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

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Early Days Nursery Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

3. Average Number of Employees

Average number of employees, including directors, during the year was: 122 (2024: 120)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 November 2024	105,000

As at 31 October 2025	105,000

Amortisation
As at 1 November 2024	105,000

As at 31 October 2025	105,000

Net Book Value
As at 31 October 2025	-

As at 1 November 2024	-

5. Tangible Assets

	Land & Property
	Leasehold	Motor Vehicles	Fixtures & Fittings	Total
	£	£	£	£
Cost
As at 1 November 2024	188,995	157,703	503,470	850,168
Additions	109,430	-	25,711	135,141

As at 31 October 2025	298,425	157,703	529,181	985,309

Depreciation
As at 1 November 2024	132,994	121,606	387,816	642,416
Provided during the period	24,861	9,024	70,232	104,117

As at 31 October 2025	157,855	130,630	458,048	746,533

Net Book Value
As at 31 October 2025	140,570	27,073	71,133	238,776

As at 1 November 2024	56,001	36,097	115,654	207,752

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Early Days Nursery Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

6. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	22,208	16,545
Prepayments and accrued income	21,090	31,486
Other debtors	292,259	308,005

	335,557	356,036

7. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	5,000	5,000
Trade creditors	15,270	15,022
Corporation tax	37,342	(44,076 )
Other taxes and social security	69,554	58,333
Other creditors	681,959	689,609
Accruals and deferred income	9,331	12,135
Directors' loan accounts	961	-
Amounts owed to group undertakings	-	40,000

	819,417	776,023

8. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	12,500	17,500

9. Secured Creditors

Royal Bank of Scotland plc holds a floating charge over the assets of the company, supporting a guarantee to the parent company, S P & L Limited.

10. Deferred Taxation

The provision for deferred tax is made up as follows:

	2025	2024
	£	£
Other timing differences	23,385	27,465

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Early Days Nursery Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

11. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	1,000	1,000

12. Pension Commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £137,826 (2024 - £123,160). Contributions totalling £19,353 (2024 - £18,158) were payable to the fund at the balance sheet date and are included in other creditors.

13. Directors Advances, Credits and Guarantees

Included within Creditors are the following loans to directors:

	As at 1 November 2024	Amounts advanced	Amounts repaid	Amounts written off	As at 31 October 2025
	£	£	£	£	£
Mrs Maureen Crandles	(7,709 )	(26,550 )	38,227	-	3,968

The above loan is unsecured, repayable on demand and attracts interest at 2% above bank base rate while outstanding.

14. Related Party Transactions

Included in creditors at the year end is an amount due to the company's parent, S P & L Limited, of

£Nil (2024 - £40,000 debtor). The loan is unsecured, interest free and has no fixed repayment terms.

During the year the company was invoiced £156,000 (2024 - £156,000) by its parent in respect of rental income and paid a dividend to it of £40,000 (2024 - £270,000).

15. Ultimate Controlling Party

The parent undertaking is S P & L Limited, a company registered at 10 Walker Street, New Town, Edinburgh, EH3 7LA. The company is controlled by M J Crandles, a director.

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	5		238,776		207,752

			238,776		207,752
CURRENT ASSETS
Debtors	6	335,557		356,036
Cash at bank and in hand		404,224		345,297

		739,781		701,333
Creditors: Amounts Falling Due Within One Year	7	(819,417 )		(776,023 )

NET CURRENT ASSETS (LIABILITIES)			(79,636 )		(74,690 )

TOTAL ASSETS LESS CURRENT LIABILITIES			159,140		133,062

Creditors: Amounts Falling Due After More Than One Year	8		(12,500 )		(17,500 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	10		(23,385 )		(27,465 )

NET ASSETS			123,255		88,097

CAPITAL AND RESERVES
Called up share capital	11		1,000		1,000
Income Statement			122,255		87,097

SHAREHOLDERS' FUNDS			123,255		88,097