Rainbow Children's Nursery Limited - Charities report

REGISTERED COMPANY NUMBER: 03835684 (England and Wales)

REGISTERED CHARITY NUMBER: 1078643

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 August 2025

for

Rainbow Children's Nursery Limited

Page

Report of the Trustees

1

to

7

Independent Examiner's Report

8

Statement of Financial Activities

9

Balance Sheet

10

to

11

Notes to the Financial Statements

12

to

18

The Trustees present their annual report together with the financial statements of the charitable Company for the year 1 September 2024 to 31 August 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

Objectives and aims

a. Policies and objectives

In setting objectives and planning activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit.

The principle aims and objectives of the charitable Company are to enhance the education of children through the provision of a nursery setting; providing high quality childcare, teaching and learning by adhering to and practicing the standards laid down by the Early Years Foundation Stage on a non-profit basis. Session times will be flexible with the offering of funded places to eligible parents and families.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidancepublished by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running acharity (PB2)'.

b. Strategies for achieving objectives

The charitable Company will always be aiming to maintain the standard at which it currently runs. To enable this we will maintain staff qualifications and training to ensure best practice is used, new training and qualifications will be accessed where necessary to continuously improve the charitable Company going forward. Communication is key to the charitable Companys success, with all employees striving for the same goals and outcomes. Ongoing communication with parents / carers supports a positive home and nursery working relationship for the best interests of the child. To obtain sufficient quality resources the charitable Company uses a range of fundraising techniques.

c. Activities undertaken to achieve objectives

Staff undertake a variety of training courses, accessing both face to face and online taught training to promote high quality care, teaching and learning. Regular staff meetings take place giving all a voice and encouraging discussion about the setting and continuous development. Tapestry, an online learning portal, is now completed fortnightly for each child, giving parents access to the most recent learning their child has been participating in. Parents are encouraged to add to this from home to make it a shared learning document. Alongside Tapestry, parents view their child's development on the nursery's learning walls.

d. Main activities undertaken to further the charitable Company's purposes for the public benefit

The charitable Company provides very flexible childcare sessions which allow parents to arrange nursery times around work more easily. We aim to provide inclusive childcare for the whole community; working parents, funded places, low income families and SEND children and families. Children have the opportunity to access engaging, inspiring and age appropriate activities alongside social interactions with peers that cannot always be accessed within the home environment; covering all areas of learning and ultimately working towards school readiness.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

The Trustees and management have worked to maintain the nursery that is financially viable and operating well. The Trustees are developing both their own roles and those of the nursery management to maintain and improve this level of operation.

The nursery was inspected by Ofsted on 7 September 2023 and was graded overall "good". This is recognition for the hardworking management and staff team who have worked tirelessly to maintain standards within the nursery. The nursery has set a target to attain an "outstanding" judgement in the next assessment.

In consultation with the nursery management, the nursery has been operating a highly flexible approach to both session times and session uptake. This has allowed the nursery to cater for shift workers with changing shift patterns in addition to parents wanting casual hours childcare.

The Trustees would like to recognise the performance and dedication of the management team in maintaining and improving the standards within the nursery and the service received by our families.

Fundraising activities

Our biggest fundraiser, our annual fete, was held in August, and it was a very good turnout.

Fundraisers we achieved included children's photographs, various raffles, handmade christmas crafts and easter activity fundraisers. We secured a grant from a local community shop to update and fix a climbing frame in the main garden for the whole nursery to enjoy.

The main garden also benefitted from a new wooden teepee, using funds donated by The Worstead Village Festival Charity.

Funds donated by Roys make a difference to enhance our Tots garden.

FINANCIAL REVIEW

Principal funding sources

The charitable Companys principal funding source is from government funding.

Investment policy and objectives

The charitable Company does not have funds available for long term investment and therefore funds not immediately required are on bank deposit.

Reserves policy

It is the intention of the Trustees to build up a level of reserves to enable the charitable Company to meet operating expenditure for 2 months, amounting to approximately £63,000. As at 31 August 2025, the charitable Company had free reserves (unrestricted funds excluding fixed assets and bank loans) of £73,750.

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. The charitable Company is projected to have sufficient income to meet its financial liabilities as they fall due and for this reason the Trustees continue to adopt the going concern basis in preparing the financial statements.

Financial Summary

Income resources amounted to £431,924. After incurring costs of £379,701 the net expenditure for the period amounted to £52,223 as shown on page 7.

The usual fee review alongside wage review was undertaken, and rates were increased accordingly.

This financial year sees the nursery back to full capacity. It is also clear to see the financial impact (gain) the nursery has had in regards to the recent changes in government funding - since April 2024, 2-year-olds with eligible working parents and since September 2024, children aged 9 to 23 months with eligible working parents have been entitled to receive 570 hours of government-funded early years provision a year. Some of the government rates are more favourable than the nursery fees, but also this funding provision has also encouraged parents to invest more hours in the nursery as well as encouraging more parents to use a childcare provider.

The nursery was pleased to reintroduce the in-house chef, as well as catering for other staffing needs.

The nursery was lucky enough to be granted some larger amounts of monies this year, so were able to invest in some maintenance desirables such as new outside lighting and improvements to larger play equipment.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The organisation is a charitable Company limited by guarantee, incorporated on 3 September 1999 and registered as a charity on 16 December 1999. The charitable Company was established under a Memorandum of Association which established the objects and powers of the charitable Company and is governed under its Articles of Association.

Recruitment and appointment of new trustees

The charitable Company aims to recruit Trustees with a wide range of business and sector experience from which the charitable Company will benefit. Under the Articles of Association, Trustees co-opted during the year must stand down at the AGM and stand for re-election. One third of the Trustees must retire at each AGM.

Organisational structure

The Trustees, who virtually meet monthly, administer the charitable Company. The day to day operations of the charitable Company are managed by the Nursery Manager, Deputy Manager and an Office Manager.

The Trustees have plans to re-establish a fundraising sub-committee to organise and plan fundraising activities.

Risk management

The Trustees have reviewed the major risks to the charitable Company in accordance with the Statement of Recommended Practice and do not consider there are any significant matters of concern.

The Nursery continues to monitor cashflow on a monthly basis ensuring any changes in income or expenditure are responded to appropriately and promptly.

Plans for future periods

To continue to increase the profile of the nursery through local advertising and via social media (namely a public Facebook page).

Maintain a constant uptake of new Trustees as we recognise the issue that some Trustees wish to leave post when their child leaves nursery for school.

To continue to review the fee structure including meal charges to keep up with the national minimum / living wage increases.

To work towards obtaining an 'outstanding' Ofsted rating.

To act on the essential maintenance requirements accumulating across the site.

Members' liability

The Members of the charitable Company guarantee to contribute an amount not exceeding £1 to the assets of the charitable Company in the event of winding up.

Policies adopted for the induction and training of Trustees

New Trustees are provided with copies of:

- The charitable Companys Memorandum and Articles of Association

- The latest accounts of the charitable Company

- Charity Commission guidance notes CC3 - The Essential Trustee

In addition Trustees are encouraged to read Charity Commission and other newsletters and to attend courses designed to keep them abreast of their duties and responsibilities.

Methods of appointment or election of Trustees

The charitable Company aims to recruit Trustees with a wide range of business and sector experience from which the charitable Company will benefit. Under the Articles of Association, Trustees co-opted during the year must stand down at the AGM and stand for re-election. One third of the Trustees must retire at each AGM.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03835684 (England and Wales)

Registered Charity number

1078643

Registered office

Station Road

Worstead

Norfolk

NR28 9SA

Trustees

F C Lloyd

T L Allard

A J Marsh (resigned 31.8.25)

C G Gregson-Rix

V George (resigned 5.2.25)

L D Alderton (appointed 22.8.25)

Company Secretary

C G Gregson-Rix

Independent Examiner

Andrew Hart

H&M Accountancy Solutions Ltd

Nelson House

13 Mundesley Road

North Walsham

Norfolk

NR28 0DA

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 25 May 2026 and signed on its behalf by:

T L Allard - Trustee

Independent examiner's report to the trustees of Rainbow Children's Nursery Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2025.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Andrew Hart

H&M Accountancy Solutions Ltd

Nelson House

13 Mundesley Road

North Walsham

Norfolk

NR28 0DA

25 May 2026

31.8.25

31.8.24

Unrestricted

Total

fund

funds

Notes

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

6,744

100

Charitable activities

423,010

346,286

Other trading activities

2

1,621

3,510

Investment income

3

549

589

Total

431,924

350,485

EXPENDITURE ON

Raising funds

926

41

Charitable activities

378,775

375,108

Total

379,701

375,149

NET INCOME/(EXPENDITURE)

52,223

(24,664

)

RECONCILIATION OF FUNDS

Total funds brought forward

98,817

123,481

TOTAL FUNDS CARRIED FORWARD

151,040

98,817

31.8.25

31.8.24

Unrestricted

Total

fund

funds

Notes

£

FIXED ASSETS

Tangible assets

8

131,728

133,666

CURRENT ASSETS

Debtors

9

2,284

214

Cash at bank

81,678

34,413

83,962

34,627

CREDITORS

Amounts falling due within one year

10

(15,812

)

(14,494

)

NET CURRENT ASSETS

68,150

20,133

TOTAL ASSETS LESS CURRENT
LIABILITIES

199,878

153,799

CREDITORS

Amounts falling due after more than one
year

11

(48,838

)

(54,982

)

NET ASSETS

151,040

98,817

FUNDS

13

Unrestricted funds

151,040

98,817

TOTAL FUNDS

151,040

98,817

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 25 May 2026 and were signed on its behalf by:

T L Allard - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

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

Freehold property - 2% straight line

Property improvements - 10% straight line

Office equipment - 25% reducing balance / straight line

Computer equipment - 25% straight line

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	OTHER TRADING ACTIVITIES

31.8.25

31.8.24

£

Fundraising income

1,621

3,510

3.	INVESTMENT INCOME

31.8.25

31.8.24

£

Interest receivable

549

589

4.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.8.25

31.8.24

£

Depreciation - owned assets

7,470

7,084

Equipment hire

3,711

3,416

Consumables & equipment

3,869

3,930

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2025 nor for the year ended 31 August 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2025 nor for the year ended 31 August 2024.

6.	STAFF COSTS

The average monthly number of employees during the year was as follows:

31.8.25

31.8.24

Managers and supervisors

7

Nursery nurses, assistants, and cooks

14

21

No employees received emoluments in excess of £60,000.

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

fund

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

100

Charitable activities

346,286

Other trading activities

3,510

Investment income

589

Total

350,485

EXPENDITURE ON

Raising funds

41

Charitable activities

375,108

Total

375,149

NET INCOME/(EXPENDITURE)

(24,664

)

RECONCILIATION OF FUNDS

Total funds brought forward

123,481

TOTAL FUNDS CARRIED
FORWARD

98,817

8.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Computer

property

fittings

equipment

Totals

£

COST

At 1 September 2024

250,363

40,885

7,391

298,639

Additions

4,479

409

644

5,532

At 31 August 2025

254,842

41,294

8,035

304,171

DEPRECIATION

At 1 September 2024

119,836

38,978

6,159

164,973

Charge for year

6,427

491

552

7,470

At 31 August 2025

126,263

39,469

6,711

172,443

NET BOOK VALUE

At 31 August 2025

128,579

1,825

1,324

131,728

At 31 August 2024

130,527

1,907

1,232

133,666

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.25

31.8.24

£

Trade debtors

1,162

(889

)

Prepayments

1,122

1,103

2,284

214

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.25

31.8.24

£

Bank loans and overdrafts (see note 12)

5,600

5,621

Trade creditors

2,721

2,611

Social security and other taxes

4,461

3,490

Pensions payable

1,039

1,084

Other creditors

(9

)

(112

)

Accrued expenses

2,000

1,800

15,812

14,494

11.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.25

31.8.24

£

Bank loans (see note 12)

48,838

54,982

12.

LOANS

An analysis of the maturity of loans is given below:

31.8.25

31.8.24

£

Amounts falling due within one year on demand:

Bank loans

5,600

5,621

Amounts falling between one and two years:

Bank loans - Over 1 year

48,838

54,982

13.	MOVEMENT IN FUNDS

Net

movement

At

At 1.9.24

in funds

31.8.25

£

Unrestricted funds

General fund

98,817

52,223

151,040

TOTAL FUNDS

98,817

52,223

151,040

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

Unrestricted funds

General fund

431,924

(379,701

)

52,223

TOTAL FUNDS

431,924

(379,701

)

52,223

Comparatives for movement in funds

Net

movement

At

At 1.9.23

in funds

31.8.24

£

Unrestricted funds

General fund

123,481

(24,664

)

98,817

TOTAL FUNDS

123,481

(24,664

)

98,817

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

Unrestricted funds

General fund

350,485

(375,149

)

(24,664

)

TOTAL FUNDS

350,485

(375,149

)

(24,664

)

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.9.23

in funds

31.8.25

£

Unrestricted funds

General fund

123,481

27,559

151,040

TOTAL FUNDS

123,481

27,559

151,040

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

Unrestricted funds

General fund

782,409

(754,850

)

27,559

TOTAL FUNDS

782,409

(754,850

)

27,559

14.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2025.