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REGISTERED NUMBER: 13087605 (England and Wales)

CORNERSTONE ALTERNATIVE EDUCATION LTD

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Page |

Company Information | 1 |

Balance Sheet | 2 |

Notes to the Financial Statements | 3 |

CORNERSTONE ALTERNATIVE EDUCATION LTD

COMPANY INFORMATION

FOR THE YEAR ENDED 31 AUGUST 2025

| DIRECTORS: | A N Smith

| N D Brindle

| R N Halsall

| REGISTERED OFFICE: | Cornerstone Academy

| Warmingham Road

| Crewe

| Cheshire

| CW1 4PP

| REGISTERED NUMBER: | 13087605 (England and Wales)

| AUDITORS: | Murray Smith LLP

| Chartered Accountants

| Statutory Auditors

| Darland House

| 44 Winnington Hill

| Northwich

| Cheshire

| CW8 1AU

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

BALANCE SHEET

31 AUGUST 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Tangible assets | 4 | 23,126 |  | 18,186 |  |

CURRENT ASSETS

Debtors | 5 | 32,396 |  | 83,926 |  |

Cash at bank | 104,371 |  | 78,489 |  |

136,767 |  | 162,415 |  |

CREDITORS

Amounts falling due within one year | 6 | 147,222 |  | 132,576 |  |

NET CURRENT (LIABILITIES)/ASSETS | (10,455 | ) | 29,839 |  |

TOTAL ASSETS LESS CURRENT LIABILITIES | 12,671 |  | 48,025 |  |

RESERVES

Income and expenditure account | 12,671 |  | 48,025 |  |

12,671 |  | 48,025 |  |

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 11 December 2025 and were signed on its behalf by:

N D Brindle - Director

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

1. | STATUTORY INFORMATION

| Cornerstone Alternative Education Ltd is a private company, limited by guarantee , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

| The presentation currency of the financial statements is the Pound Sterling (£).

2. | ACCOUNTING POLICIES

| Basis of preparing the financial statements

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

| Critical accounting judgements and key sources of estimation uncertainty

| Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

| Critical accounting estimates and assumptions

| The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

| The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 8, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 August 2025. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

| The Company has not recognised the pension asset calculated by the actuaries on the basis that under FRS 102 a pension asset should only be recognised if it is expected to result in a refund or a reduction in future contributions. The Directors believe that there is significant uncertainty about whether the Company will receive any such benefit from the asset, and have restricted the asset to nil in accordance with the asset ceiling report produced by the actuaries.

| Turnover

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

| Tangible fixed assets

| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

| Fixtures and fittings | - | 20% on cost

| Computer equipment | - | 25% on cost

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2025

2. | ACCOUNTING POLICIES - continued

| Financial liabilities

| A financial liability is recorded at transaction price and is derecognised when the obligation under the liability is discharged or cancelled or expires.

| Trade debtors

| Trade debtors are recognised at cost less provision for doubtful debts. The recoverability of trade debtors is reviewed on an ongoing basis. A provision for doubtful debtors is established when collection of the full nominal amount is no longer probable. Bad debts are written off as incurred.

| Provisions

| Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period, and are discounted to present value where the effect is material.

| Employee benefits

| (a) Wages and salaries and annual leave

| Liabilities for wages and salaries and annual leave are recognised and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date. They are expected to be settled within one year.

| (b) Pensions

| The Company contributes towards a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

| Retirement benefits to employees of the Company are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes.

| The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the Company in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

| The LGPS is a funded multi-employer scheme, and the assets are held separately from those of the Academy Trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to net income/(expenditure) are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

| Actuarial gains and losses are recognised immediately in other recognised gains and losses.

3. | EMPLOYEES AND DIRECTORS

| The average number of employees during the year was 14 (2024 - 14 ) .

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2025

4. | TANGIBLE FIXED ASSETS

| Fixtures |

| and |  | Computer |

| fittings |  | equipment |  | Totals

£ | £ | £ |

| COST

| At 1 September 2024 | 14,329 |  | 7,742 |  | 22,071 |  |

| Additions | 3,673 |  | 7,922 |  | 11,595 |  |

| At 31 August 2025 | 18,002 |  | 15,664 |  | 33,666 |  |

| DEPRECIATION

| At 1 September 2024 | 1,192 |  | 2,693 |  | 3,885 |  |

| Charge for year | 3,234 |  | 3,421 |  | 6,655 |  |

| At 31 August 2025 | 4,426 |  | 6,114 |  | 10,540 |  |

| NET BOOK VALUE

| At 31 August 2025 | 13,576 |  | 9,550 |  | 23,126 |  |

| At 31 August 2024 | 13,137 |  | 5,049 |  | 18,186 |  |

5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Trade debtors | 23,296 |  | 42,774 |  |

| Prepayments and accrued income | 9,100 |  | 41,152 |  |

32,396 |  | 83,926 |  |

6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Trade creditors | 13,120 |  | - |  |

| Amounts owed to group undertakings | 99,858 |  | 96,471 |  |

| Social security and other taxes | 24,012 |  | 17,222 |  |

| Accruals and deferred income | 10,232 |  | 18,883 |  |

147,222 |  | 132,576 |  |

7. | LEASING AGREEMENTS

| Minimum lease payments under non-cancellable operating leases fall due as follows:

2025 | 2024 |

£ | £ |

| Within one year | 22,500 |  | 22,500 |  |

| Between one and five years | 90,000 |  | 90,000 |  |

| In more than five years | 45,000 |  | 67,500 |  |

157,500 |  | 180,000 |  |

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2025

8. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

| The Report of the Auditors was unqualified.

| Nicola Tucker (Senior Statutory Auditor)

| for and on behalf of Murray Smith LLP

9. | EMPLOYEE BENEFIT OBLIGATIONS

| The Company's employees belong to two principal pension schemes: The Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by the Cheshire Pension Fund. Both are multi-employer defined benefit schemes.

| The latest actuarial valuation of the TPS related to the period ended 31 March 2020 and of the LGPS 31 March 2022.

| Contributions amounting to £8,811 were payable to the schemes at 31 August 2025 (2024: £9,438) and are included within creditors.

| Teachers' Pension Scheme

| The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt-out of the TPS following enrolment.

| The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary -these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

| Valuation of the Teachers' Pension Scheme

| The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.

| Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:

| - |  | employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control result is such that no change in member benefits is needed. |  |

| - |  | total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million. |  |

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2025

| The result of this valuation will be implemented from 1 April 2024. The next valuation result is due to be implemented from 1 April 2027.

| The employer's pension costs paid to TPS in the year amounted to £71,687 (2024 £59,344).

| A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.

| (https://www.teacherspensions.co.uk/news/employers/2023/10/valuation-result.aspx)

| Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The academy trust is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the academy trust has taken advantage of the exemption under FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy trust has set out above, the information available on the scheme.

| Local Government Pension Scheme

| The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 August 2025 was £27k (2024 £26k), of which employer's contributions totalled £21k (2024 £20k) and employees' contributions totalled £6k (2024 £6k). The agreed contribution rates for future years are 18.2% for employers and between 5.5% and 12.5% for employees.

| Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of an Academy Trust closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013 and on 21 July 2022, the Department for Education reaffirmed its commitment to the guarantee, with a parliamentary minute published on Gov.uk.

| The amounts recognised in the balance sheet are as follows:

| Defined benefit |

| pension plans |

2025 | 2024 |

£ | £ |

| Present value of funded obligations | (90,000 | ) | (94,000 | ) |

| Fair value of plan assets | 90,000 |  | 94,000 |  |

- |  | - |  |

| Present value of unfunded obligations | - |  | - |  |

| Deficit | - |  | - |  |

| Net liability | - |  | - |  |

| The amounts recognised in surplus or deficit are as follows:

| Defined benefit |

| pension plans |

2025 | 2024 |

£ | £ |

| Current service cost | 17,000 |  | 16,000 |  |

| Net interest from net defined benefit asset/liability | (2,000 | ) | (1,000 | ) |

| Past service cost | - |  | - |  |

15,000 |  | 15,000 |  |

| Actual return on plan assets | 7,000 |  | 9,000 |  |

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2025

9. | EMPLOYEE BENEFIT OBLIGATIONS - continued

| Changes in the present value of the defined benefit obligation are as follows:

| Defined benefit |

| pension plans |

2025 | 2024 |

£ | £ |

| Opening defined benefit obligation | 94,000 |  | 67,000 |  |

| Current service cost | 17,000 |  | 16,000 |  |

| Contributions by scheme participants | 6,000 |  | 6,000 |  |

| Interest cost | 5,000 |  | 4,000 |  |

| Remeasurements:

| Actuarial (gains)/losses from changes in financial assumptions | (31,000 | ) | (2,000 | ) |

| Obligation other experience | (1,000 | ) | 3,000 |  |

90,000 |  | 94,000 |  |

| Changes in the fair value of scheme assets are as follows:

| Defined benefit |

| pension plans |

2025 | 2024 |

£ | £ |

| Opening fair value of scheme assets | 122,000 |  | 87,000 |  |

| Contributions by employer | 21,000 |  | 20,000 |  |

| Contributions by scheme participants | 6,000 |  | 6,000 |  |

| Assets interest on plan assets | 7,000 |  | 5,000 |  |

| Effect of asset ceiling | (66,000 | ) | (28,000 | ) |

| Return on plan assets (excluding interest income) | - |  | 4,000 |  |

90,000 |  | 94,000 |  |

| The amounts recognised in other comprehensive income are as follows:

| Defined benefit |

| pension plans |

2025 | 2024 |

£ | £ |

| Actuarial gains/(losses) from changes in financial assumptions | 31,000 |  | 2,000 |  |

| Obligation other experience | 1,000 |  | (3,000 | ) |

| Return on plan assets (excluding interest income) | - |  | 4,000 |  |

32,000 |  | 3,000 |  |

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2025

9. | EMPLOYEE BENEFIT OBLIGATIONS - continued

| The major categories of scheme assets as a percentage of total scheme assets are as follows:

| Defined benefit |

| pension plans |

2025 | 2024 |

| Equities | 54% | 53% |

| Bonds | 32% | 33% |

| Property | 13% | 13% |

| Cash | 1% | 1% |

100% | 100% |

| Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2025 | 2024 |

| Discount rate | 6.10% | 5.00% |

| Future salary increases | 3.40% | 3.35% |

| Future pension increases | 2.70% | 2.65% |

| The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:

|  | At 31 August |  |  | At 31 August |  |

|  | 2025 |  |  | 2024 |  |

| Retiring today |  |

| Males |  | 21.1 |  |  | 20.9 |  |

| Females |  | 23.9 |  |  | 23.9 |  |

| Retiring in 20 years |  |

| Males |  | 21.8 |  |  | 21.5 |  |

| Females |  | 25.6 |  |  | 25.5 |  |

10. | ULTIMATE CONTROLLING PARTY

| Cornerstone Alternative Education Ltd is a company limited by guarantee.

| Youth Engagement Schools Trust is the sole member.