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Registered number: 06829359
THE SERENDIPITY CENTRE LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 28 FEBRUARY 2026
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THE SERENDIPITY CENTRE LIMITED
REGISTERED NUMBER: 06829359
BALANCE SHEET
AS AT 28 FEBRUARY 2026
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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S G Maguinness
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The notes on pages 2 to 8 form part of these financial statements.
Page 1
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THE SERENDIPITY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2026
1.Accounting policies
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Basis of preparation of financial statements
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The Serendipity Centre Limited is a private company limited by shares and incorporated in the United Kingdom. The address of the registered office is given in the company information of these financial statements. The company's registration number is 06829359. The company's place of business is located at 1st Floor, Goodlands House, St Luke's Close, Hedge End, Hampshire, SO30 2US.
The financial statements have been prepared on a going concern basis under the historical cost convention modified to include items at fair value. The financial statements have been prepared in accordance with FRS 102 Section 1A small entities, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006.
The financial statements are prepared in Sterling which is the functional currency of the company and are rounded to the nearest £1.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
The director has prepared forecasts which anticipate an improvement in the Company's profitability and cash position based on maintaining forecast school roll levels. Notwithstanding this improvement, the Company is expected to remain in a net current liability position, and cash balances are forecast to remain at relatively low levels at certain points during the going concern assessment period.
The Company's ability to achieve its forecasts is dependent upon maintaining school roll levels, which are impacted by its ability to retain and recruit suitably qualified staff. The cashflow is also reliant on the shareholders not calling in their loans which are repayable on demand and the significant legal costs being incurred not increasing.
Having considered the forecasts and the actions available to manage working capital, the director considers that the Company has sufficient resources to meet its liabilities as they fall due and that the going concern basis of accounting remains appropriate. However, the Company's net current liability position, limited forecast cash headroom and reliance on maintaining school roll levels indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue being recognised is specifically in relation to the delivery of care and education.
The following criteria must also be met before revenue is recognised:
Rendering of services
- the amount of revenue can be measured reliably;
- it is probable that the company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably
Page 2
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THE SERENDIPITY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2026
1.Accounting policies (continued)
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the period of the lease.
Lease incentives are recognised over the lease term on a straight line basis
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Leased assets: the Company as lessee
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Where assets are financed by leasing agreement that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to profit or loss over the shorter of estimate useful economic life and the term of the lease.
Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to profit or loss over the term of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.
Retirement benefits to employees of the company who are teachers are provided by the Teachers' Pension Scheme ("TPS"). This is a defined benefit scheme and the assets are held separately from those of the company.
The TPS is an unfunded scheme and contributions are calculated so as 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 on the basis of quinquennial valuations using a prospective benefit method. The TPS is a multi-employer scheme and the company is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.
In addition, the company operates a defined contribution pension scheme for non-teaching staff. The pension charge in the accounts represents the aggregate of these two schemes.
Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.
Page 3
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THE SERENDIPITY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2026
1.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, unless it relates to items in other comprehensive income or directly in equity. In such cases, the related tax is also recognised other comprehensive income or directly in equity.
Current tax liabilities are measured at the amount expected to be paid, based on tax rates and laws that are enacted or substantively enacted at the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method and is calculated using rates of taxation enacted or substantively enacted at the balance sheet date which are expected to apply when the asset or liability is settled.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are only recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Tangible fixed assets are stated at cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life.
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may be affected.
On transition to FRS 102, the option has been taken to carry out a one-off revaluation of the properties to be treated as a deemed cost.
Depreciation is provided on the following basis:
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Short term debtors and creditors
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Debtors and creditors with no stated interest rate or that are receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit or loss account in other administrative expenses.
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Cash and cash equivalents
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Cash and cash equivalents in the balance sheet comprise cash in hand and short term deposits with an original maturity date of three months or less.
Page 4
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THE SERENDIPITY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2026
1.Accounting policies (continued)
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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The average monthly number of employees, including the director, during the year was as follows:
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Long-term leasehold property
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Charge for the year on owned assets
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Page 5
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THE SERENDIPITY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2026
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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£250,010 of other creditors are secured by way of fixed and floating charge over the undertaking and all property and assets present and future.
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
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Page 6
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THE SERENDIPITY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2026
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Allotted, called up and fully paid
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3,900 (2025 - 3,900) Ordinary A shares of £1.00 each
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6,100 (2025 - 6,100) Ordinary B shares of £1.00 each
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It was discovered that the director’s loan was treated as being written off in error within the tax computation to 28 February 2021 and therefore the s455 tax was subsequently received in error.
A voluntary disclosure has now been made to ensure that the s455 balance is repaid to HMRC.
Legal case
There are ongoing legal proceedings in relation to disputes surrounding the dismissal of the previous managing director and as at the date of signing the financial statements the company continues to rigorously defend its position and it is not possible to estimate any potential financial impact and as such, no provision has been made regarding this matter.
Dividends
The B Ordinary shares carry cumulative preferential dividend rights of £56.30 per share per annum until all investor loans are repaid. At 28 February 2026 the contingent liability for preference dividends is £1,030,290 (2025: £686,860).
The company operates the Teachers Pension Scheme which is a defined benefit scheme and also a defined contribution scheme for non-teaching staff. The pension charge for the period represents contributions payable by the company to schemes and amounted to £138,338 (2025: £136,002).
Contributions totalling £16,273 (2025: £27,428) were payable to the schemes at the end of the year and are included in creditors.
Page 7
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THE SERENDIPITY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2026
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Related party transactions
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Shareholders
The Ordinary A shareholder received rental payments from the company totalling £Nil (2025: £6,000).
At the year end, there was a debt outstanding with a shareholder. The directors are continuing to pursue the outstanding debt through legal proceedings.
A pension scheme owned by a parent company shareholder received rental payments from the company totalling £25,554 (2025: £18,944). A separate company owned by this shareholder received consultancy payments of £35,000 (2025: £24,000). The balance owing to this related party totalled £Nil (2025: £Nil).
Parent company shareholders received rental payments from the company totalling £37,500 (2025: £37,500).
There are total parent company shareholder loan balances of £250,010 (2025: £250,010). Interest accrued on loans in the year totalled £12,416 (2025: £13,291), repayments of interest to the shareholders totalled £12,416 (2025: £13,291) bringing the total interest accrual to £Nil (2025: £Nil).
Amounts owed to group undertakings total £53,558 (2025: £380,978).
An organisation related to the director
Purchases of social care consultation services amounted to £25,949 (2025: £23,360). There is a yearend purchase ledger debit balance of £Nil (2025: £1,947) due from this organisation.
Key management personnel
The employees who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. Total remuneration in respect of key management is £60,582 (2025: £56,786).
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Post balance sheet events
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As of 1 October 2026, the care operation was terminated, resulting in the transferring of a property lease to a new care operator. As the property has been vacated, long-term leasehold property fixed assets have been disposed of for nil consideration, leading to a loss on disposal of assets with a NBV of £239,060 at 28 February 2026.
The auditors' report on the financial statements for the year ended 28 February 2026 was unqualified.
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In their report, the auditors drew attention to the following matter without qualifying their report:
In forming our opinion on the financial statements, which is not modified, we draw attention to the disclosure made in Note 1.2 to the financial statements concerning the company's ability to continue as a going concern. As stated in Note 1.2, certain events or conditions pertain which indicate a material uncertainty exists that casts a doubt on the company's ability to continue as a going concern. The financial statements do not contain any adjustments that would result if the company was unable to continue as a going concern. Our opinion is not modified in respect of this matter.
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The audit report was signed on 30 October 2026 by James Bagley (Senior statutory auditor) on behalf of PKF Smith Cooper Audit Limited.
Page 8
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