REGISTERED NUMBER: 10526074 (England and Wales)

FIRST FOR CHILDCARE 3 LIMITED

Strategic Report, Report of the Director and

Financial Statements

for the Period 1 September 2024 to 30 August 2025

Page

Company Information

1

Strategic Report

2

to

3

Report of the Director

4

to

5

Report of the Independent Auditors

6

to

9

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

to

16

Notes to the Financial Statements

17

to

28

Director:

Ms S C Denton

Registered office:

Artisans' House

7 Queensbridge

Northampton

Northamptonshire

NN4 7BF

Business address:

Hopper Hill Road

Scarborough

North Yorkshire

YO11 3YS

Registered number:

10526074 (England and Wales)

Auditors:

Independent Auditors LLP

Emstrey House North

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG

The director presents her strategic report for the period 1 September 2024 to 30 August 2025.

The principal activity of the company in the year of review is that of early years childcare activities.

Review of business

This financial year saw the business continue to trade successfully and remain sustainable through extremely difficult conditions. Debt has reduced by 4% and net debt has reduced 1%.

As an industry the Early Years sector has continued to face challenges during FY 24/25.

We continue to see the Government underfunding the sector. As a company we have overcome this but remaining within the regulatory boundaries and charging for permissible extras. Income has increased by 17.4%.

We continue to have to pay Business Rates without any relief. This is a substantial sum of money.

Minimum wage increases and staff costs generally due the pool of potential workers shrinking have forced us to offer increased pay rates. We have to then balance this against the 'affordability' of childcare for existing families and to remain competitive for potential families. Nevertheless wages costs have shrunk as a percentage of turnover from 57% in FY 2023/24 to 53% in FY 2024/25.

We continue to closely monitor costs and successfully achieve efficiencies without sacrificing quality of service or investment in training or facilities. This ensured that profitability in terms of EBITDA to remain robustly strong.

Interest rates have obviously had a huge impact on our loan costs. We are constantly reviewing this and have had to reserve the right with parents to have potentially two fee increases per annum.

Principal risks and uncertainties

It was identified during the year that the principle risks and uncertainties related to inflationary increases as well as staff turnover.

Our ongoing streamlining of costs has left us well placed to deal with inflationary pressures on food and fuel and our strong management team and staff structure enables us to remain competitive in a difficult labour market. In all we are ideally positioned to continue to meet the huge increase in demand for our services.

Future development & plans

Our whole focus is based around providing an engaging environment to enable us to produce intuitive and developing children. We very much see ourselves as a resource, constantly updating the environment and offering new and interesting opportunities to learn.

Over the coming years we are looking at new ways of continuing to develop and grow our nursery bases as well as seeking new opportunities within the area such as more wrap around care such as holiday clubs, before school and after school care for the community.

Key performance indicators

The gross profit percentage achieved was 43.0% as opposed to 40.0% in the previous 12 months. This is due to staff cost controls.

The net profit percentage was 0.3% as opposed to 6.4% in 2023/24.

On behalf of the board:

Ms S C Denton - Director

20 August 2026

The director presents her report with the financial statements of the company for the period 1 September 2024 to 30 August 2025.

Dividends

The total distribution of dividends for the year ended 31 August 2025 will be £20,000.

Director

Ms S C Denton held office during the whole of the period from 1 September 2024 to the date of this report.

Statement of director's responsibilities

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

The auditors, Independent Auditors LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

Ms S C Denton - Director

20 August 2026

Opinion

We have audited the financial statements of First For Childcare 3 Limited (the 'company') for the period ended 30 August 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

- give a true and fair view of the state of the company's affairs at 31 August 2025 and of its loss for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinions 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate 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 director's remuneration specified by law are not made; or

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

- the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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:

Inquiry of management, those charged with governance and the company's solicitors around actual and potential litigation and claims.

Inquiry of company staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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/auditors responsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathon Dale BA(Hons) FCA (Senior Statutory Auditor)

for and on behalf of Independent Auditors LLP

Emstrey House North

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG

25 August 2026

TURNOVER

3

2,744,585

2,336,844

Cost of sales

(1,565,585

)

(1,403,175

)

GROSS PROFIT

1,179,000

933,669

Administrative expenses

(916,154

)

(489,605

)

262,846

444,064

Other operating income

4,000

6,131

OPERATING PROFIT

5

266,846

450,195

Interest receivable and similar income

3,809

1,750

270,655

451,945

Interest payable and similar expenses

6

(262,078

)

(302,094

)

PROFIT BEFORE TAXATION

8,577

149,851

Tax on profit

7

(30,038

)

(76,032

)

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD

(21,461

)

73,819

(LOSS)/PROFIT FOR THE PERIOD

(21,461

)

73,819

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

(21,461

)

73,819

FIXED ASSETS

Intangible assets

10

117,765

192,140

Tangible assets

11

4,207,573

4,260,965

4,325,338

4,453,105

CURRENT ASSETS

Debtors

12

398,410

98,317

Cash at bank and in hand

699,382

838,276

1,097,792

936,593

CREDITORS

Amounts falling due within one year

13

1,244,866

972,152

NET CURRENT LIABILITIES

(147,074

)

(35,559

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,178,264

4,417,546

CREDITORS

Amounts falling due after more than one year

14

(3,740,486

)

(3,934,550

)

PROVISIONS FOR LIABILITIES

18

(39,124

)

(42,881

)

NET ASSETS

398,654

440,115

CAPITAL AND RESERVES

Called up share capital

19

100

100

Retained earnings

20

398,554

440,015

SHAREHOLDERS' FUNDS

398,654

440,115

The financial statements were approved by the director and authorised for issue on 20 August 2026 and were signed by:

Ms S C Denton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2023

100

843,188

843,288

Changes in equity

Dividends

-

(476,992

)

(476,992

)

Total comprehensive income

-

73,819

73,819

Balance at 31 August 2024

100

440,015

440,115

Changes in equity

Dividends

-

(20,000

)

(20,000

)

Total comprehensive income

-

(21,461

)

(21,461

)

Balance at 30 August 2025

100

398,554

398,654

Cash flows from operating activities

Cash generated from operations

1

762,748

640,524

Interest paid

(262,078

)

(302,094

)

Tax paid

(133,715

)

1,551

Net cash from operating activities

366,955

339,981

Cash flows from investing activities

Purchase of tangible fixed assets

(37,469

)

(8,688

)

Interest received

3,809

1,750

Net cash from investing activities

(33,660

)

(6,938

)

Cash flows from financing activities

Capital repayments in year

(180,919

)

(160,248

)

Amount introduced by directors

-

155,549

Amount withdrawn by directors

(271,270

)

3,140

Equity dividends paid

(20,000

)

(476,992

)

Net cash from financing activities

(472,189

)

(478,551

)

Decrease in cash and cash equivalents

(138,894

)

(145,508

)

Cash and cash equivalents at beginning of period

2

838,276

983,784

Cash and cash equivalents at end of period

2

699,382

838,276

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

PERIOD

1/9/24

TO

YEAR ENDED

30/8/25

31/8/24

£

£

Profit before taxation

8,577

149,851

Depreciation charges

165,236

161,414

Finance costs

262,078

302,094

Finance income

(3,809

)

(1,750

)

432,082

611,609

(Increase)/decrease in trade and other debtors

(31,963

)

56,937

Increase/(decrease) in trade and other creditors

362,629

(28,022

)

Cash generated from operations

762,748

640,524

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 30 August 2025

30/8/25

1/9/24

£

£

Cash and cash equivalents

699,382

838,276

Year ended 31 August 2024

31/8/24

1/9/23

£

£

Cash and cash equivalents

838,276

983,784

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/9/24

Cash flow

At 30/8/25

£

£

£

Net cash

Cash at bank and in hand

838,276

(138,894

)

699,382

838,276

(138,894

)

699,382

Debt

Debts falling due within 1 year

(171,935

)

(13,145

)

(185,080

)

Debts falling due after 1 year

(3,934,550

)

194,064

(3,740,486

)

(4,106,485

)

180,919

(3,925,566

)

Total

(3,268,209

)

42,025

(3,226,184

)

1.	STATUTORY INFORMATION

First For Childcare 3 Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Turnover

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

Turnover represents the value of work carried out in respect of services provided to customers. Turnover is recognised when the company obtains the right to consideration.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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% on cost

Improvements to property

-

10% on cost

Plant and machinery

-

25% on cost

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, which the transaction is measured at the present value of the future receipts discounted at market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangement entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payments is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates 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.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

Going concern

The current economic conditions present increased risks for all businesses. In response to such conditions, the director has carefully considered these risks, including an assessment of uncertainty on future trading projections for a period of at least twelve months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

Based on this assessment, the director considers that the Company maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations of external liabilities.

In addition, the Company's assets are assessed for recoverability on a regular basis, and the director considers that the Company is not exposed to losses of these assets which would affect their decision to adopt the going concern basis.

The director is therefore satisfied and has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. These financial statements have therefore been prepared on a going concern basis.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

PERIOD

1/9/24

TO

YEAR ENDED

30/8/25

31/8/24

£

£

Services

2,744,585

2,336,844

2,744,585

2,336,844

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

PERIOD

1/9/24

TO

YEAR ENDED

30/8/25

31/8/24

£

£

Wages and salaries

1,325,920

1,209,060

Social security costs

103,764

91,235

Other pension costs

24,168

23,503

1,453,852

1,323,798

The average number of employees during the period was as follows:

PERIOD

1/9/24

TO

YEAR ENDED

30/8/25

31/8/24

Staff

62

58

PERIOD

1/9/24

TO

YEAR ENDED

30/8/25

31/8/24

£

£

Director's remuneration

-

-