The directors present the strategic report for the year ended 31 December 2025.
Muddy Boot Nurseries exists to provide exceptional early years childcare and education for children across the North of England. Our purpose is simple: to nurture confident, curious and capable children through exceptional, outdoor-focused early education that supports families, empowers staff, and inspires lifelong growth.
We operate seven settings with over 650 registered places. Our approach is rooted in outdoor, nature-led learning, we believe that children thrive when they are given the freedom to explore, play and discover the world around them. This ethos runs through everything we do, from our curriculum and our environments to the way we work with families and each other.
2025 was a year of strong financial performance and continued growth for the Group. Revenue increased to £9.38m (2024: £5.80m), an increase of 61.8%, reflecting higher occupancy across our settings and the positive impact of the Government’s expansion of funded childcare entitlements from September 2024.
Operating profit grew to £1.71m (2024: £1.21m). Our gross profit margin of 41.2% reflects the quality and efficiency of our operation and compares well with the wider sector. The Group continues to operate without significant external acquisition debt, maintaining a strong balance sheet.
The board has identified the following principal risks and uncertainties:
Political and regulatory - government policy on childcare funding, including funded hours entitlements and the level of funding rates set by central and local government.
Economic conditions - the impact of household finances on demand for private fee-paying childcare, and wider cost pressures including employer National Insurance contributions and the National Living Wage.
Labour costs, recruitment and retention - the availability of qualified early years educators, sector-wide competition for talent, and the cost of maintaining a skilled and engaged workforce.
Compliance, health and safety - implementation of Ofsted standards and maintaining the highest standards of care and education across all settings.
Safeguarding - the safety and wellbeing of every child in our care is our highest priority. We maintain rigorous safeguarding policies and procedures, with regular training embedded across all settings.
Physical environment - disruption to the operation of individual settings through unforeseen events, including property issues, infrastructure disruption or public health incidents.
The fundamental risks to which the Group is exposed have not changed significantly during the year.
The board uses the following key performance indicators to assess the performance and progress of the Group.
Financial
Revenue: £9.38m (2024: £5.80m)
Gross profit: £3.86m (2024: £2.68m)
Gross profit margin: 41.2% (2024: 46.2%)
Operating profit: £1.71m (2024: £1.21m)
Staff costs as a percentage of revenue: 57.5% (2024: 49.5%)
Operational
Number of settings: 7 (2024: 7)
Registered places: 652 (2024: 652)
Across our settings we use our staff engagement tools and weekly parent satisfaction surveys to monitor quality and performance on an ongoing basis.
Our People
Our people are our greatest asset. We are committed to creating a workplace where every member of the team feels valued, supported and able to do their best work. We use Friday Pulse, a weekly staff engagement tool, to give our teams a regular and meaningful voice on the things that matter to them. We believe that happy, engaged teams create the best outcomes for the children and families we serve.
Our Community
We are proud to be an active part of the communities we serve in York and Leeds. Each year we support a Charity of the Year, with our York settings supporting Martin House Children’s Hospice in 2024, and our Leeds settings supporting locally chosen charities in 2025. We raised funds through family events, stay-and-plays and team activities throughout the year.
Recognition and Awards
During the year the Group received a few significant external awards that reflect the quality of our provision and the strength of our business.
Nursery World Awards 2025 (shortlisted for Nursery Group of the Year)
BizX Business Award (Best Service Based Business)
Our Approach to Sustainability
As a provider of early years education, we believe that introducing children to the natural world and developing their respect for the environment is not just good practice - it is central to our purpose. Our outdoor, nature-led ethos means that sustainability is embedded in the day-to-day experience we provide for children across all our settings.
The group is exploring a variety of geographies to further expand into and bring the Muddy Boots ethos to those communities.
We continue to see strong demand for our developing nurseries and have an exciting pipeline of nurseries with new acquisitions planned for 2026. Our sustained growth and consistent practice of improving existing nurseries, gives us confidence that we will continue to grow profitability, which enables further investment into the existing group while allowing for new sites to join Muddy Boots.
Finally, Anna & I would like to express our thanks and appreciation to our incredible team members who provide amazing, caring and stimulating nursery education for the children entrusted to us. We are proud of what Muddy Boots has achieved in 2025 and look forward to the future with confidence.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £15,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Group's financial instruments comprise bank loans, overdrafts, cash and cash equivalents, and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the Group's activities.
The principal risks arising from the Group's financial instruments are interest rate risk, liquidity risk and credit risk. The Group's bank borrowings are subject to variable interest rates linked to the Bank of England base rate and are therefore exposed to movements in market interest rates. The directors regularly monitor interest rates and the Group's financing arrangements to manage this exposure.
Liquidity risk is managed through maintaining appropriate banking facilities and monitoring forecast and actual cash flows. Credit risk is managed through regular review of customer balances and established credit control procedures. The directors consider that the Group's exposure to credit risk is not significant.
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
These engagement activities enabled the directors to understand employee views and have regard to employee interests when fulfilling their duties under section 172 of the Companies Act 2006.
Sumer Auditco Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006 and are deemed to be reappointed under section 487(2) of the Companies Act 2006.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Muddy Boots Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine is 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 directors are responsible for assessing the group's and parent 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 directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
- Enquiry of management, those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
- Reviewing minutes of meetings of those charged with governance;
- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the group through enquiry and inspection;
- Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with laws and regulations;
- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rational of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias;
- Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters which we are required to address
Comparative information in the financial statements is derived from the Company's prior period financial statements which were not audited.
Use of our report
This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £62,854 (2024 - £202,500 profit).
Muddy Boots Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Woodhouse Farm, Lords Lane, Nether Poppleton, York, North Yorkshire, YO26 6GQ.
The group consists of Muddy Boots Group Ltd and all of its subsidiaries as set out in note 15.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation share options costs and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Muddy Boots Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The Group has applied the principles of merger accounting in consolidating the results for the acquisition of Inspired Investment Solutions Limited and its subsidiaries, as control was only acquired by Muddy Boots Group Limited on 5 June 2024. Merger accounting requires that the results of the Group are presented as if the Group has always been in its present form, and does not require fair value adjustments as at the point of acquisition. Accordingly, for the Group's comparative Statement of Financial Position as of 31 December 2024, a merger reserve has been created which represents the difference between the net assets and the retained profits recognised by the Group as at 5 June 2024.
This reflects the commercial substance of the trading group remaining under control of the same ultimate parties, Mr A Nimmo and Mrs A Nimmo, before and after the introduction of Muddy Boots Group Limited.
Muddy Boots Group Limited's accounting period was for the 11 months ended 31 December 2024. Notwithstanding this, as merger accounting has been applied, the consolidated financial statements have been prepared as if the Group had always been in its present form and therefore include the results of Inspired Investment Solutions Limited and its subsidiaries for the full comparative period.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the date of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion, the directors have considered the group's profitability, cash flow forecasts and available financing facilities, including additional facilities secured subsequent to the year end. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is measured at the fair value of consideration received or receivable. It is recognised in respect of children's day-care services as soon as there is a right to consideration and is determined by reference to the value of the work performed. Turnover is stated net of trade discounts.
The company recognises revenue when the amount of revenue can me measured reliably and when it is probable that future economic benefits will flow to the entity.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
No depreciation is provided on freehold property as the directors consider that the lives of these assets are so long and the residual values, based on prices prevailing at the time of valuation and ongoing state of maintenance, are so high that any depreciation charge would be immaterial.
In the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an 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, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group 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 payment 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
In the application of the group’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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The useful economic lives and residual values of tangible fixed assets require estimation in determining the appropriate depreciation charge. Estimates are made by management based on the expected period over which each asset, or significant component of an asset, will provide economic benefit to the company, taking into account its nature, condition, expected usage, maintenance requirements and anticipated replacement cycle. Actual useful lives may differ from those estimated and changes in these estimates could materially affect future depreciation charges and the carrying value of tangible fixed assets.
During the year, the director reassessed the residual values of the freehold property and have deemed the residual value to be in excess of its carrying value. As a result of this assessment, no depreciation has been charged during the year on freehold property.
The fair value of share options granted requires estimation in determining the share-based payment charge recognised in the financial statements. Estimates and assumptions are made by management in applying the appropriate valuation methodology, including assumptions over the expected life of the options, share price volatility, the value of the underlying shares and other relevant valuation inputs. Changes in the assumptions applied could materially affect the share-based payment charge and associated equity reserve recognised in the financial statements.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Wages and salaries includes £78,155 (2024: £16,718) in respect of share options costs as disclosed in note 22 of these financial statements.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:
Details of the company's subsidiaries at 31 December 2025 are as follows:
Muddy Boots (Acomb) Limited, Muddy Boots Wilberfoss Limited, Muddy Boots Stamford Bridge Limited and Muddy Boots Leeds Limited were dormant throughout the year and did not undertake any trading activities during the current period.
Included in accruals and deferred income is a balance of £713,643 (2025: £434,856) relating to fees paid and funded places received in advance.
Finance lease assets are secured against the assets to which they relate.
Bank loans and overdrafts include an overdraft of £115,413 which is repayable on demand and is secured against the assets of the group.
Bounce Back Loans of £23,061 (2024: £22,286) are unsecured and are supported by a guarantee provided by the UK Government under the Bounce Back Loan Scheme.
Other bank loans are secured.
Bounce Back Loans of £95,729 (2024: £119,525) are unsecured and are supported by a guarantee provided by the UK Government under the Bounce Back Loan Scheme.
Other bank loans are secured.
Loan 1 - carrying value of £3,128,119
A bank loan of £3,150,000 was drawn down in October 2024 and is repayable in instalments over 5 years with an interest rate of 2.5% above the Bank of England base rate. This loan is secured by way of a fixed and floating charge against certain properties to which it relates.
Loan 2 - carrying value of £118,790
Bounce Back loans totalling £118,789 are repayable in instalments over 10 years with the final repayment made in May 2030 with an interest rate of 2.5%. Bounce Back Loans are unsecured and are supported by a guarantee provided by the UK Government under the Bounce Back Loan Scheme.
Loan 3 - carrying value of £223,273
A bank loan of £260,000 was drawn down in October 2024 and is repayable in instalments over 6 years with an interest rate of 2.5% above the Bank of England base rate. This loan is unsecured.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
The options outstanding at 31 December 2025 had an exercise price of £0.12, and a remaining contractual life of 46 months.
The total fair value at 31 December 2025 amounted to £94,871 (2024 - £ 16,716) for the group, this amount is included within other reserves.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Subsequent to the year end, the group completed the acquisition of the trade and assets of a further nursery business, including a freehold property for material consideration. The transaction represents a material non-adjusting event occurring after the reporting date.
During the year, donations totalling £72,000 (2024: £22,500) were made to Global Church Ltd, a charitable company with common directors.
Purchase totalling £233,226 (2024: £nil) were made from Spring Childcare Agency Limited, a company under common control. At the year end £66,678 was owed to the group by Spring Childcare Agency Limited (2024: the group owed £45,321). The balance is included within other debtors.
At the year end £30,804 (2024: £32,470) was owed by the group to Sutherland Property Ventures Limited, a company under common control. The balance is included within other creditors.
At the year end £359 (2024: £214) was owed by the group to Are We There Yet? Properties Ltd, a company under common control. The balance is included within other creditors.
Dividends totalling £15,000 (2024 - £769,765) were paid in the year in respect of shares held by the company's directors.
During the year, the following unsecured loans to director occurred.
On consolidation a merger reserve of £5,920,167 has been recognised which represents the adjustment required to recognise the group reconstruction on the merger accounting basis.
The company only balance sheet has been restated to recognise share option costs of £16,716 as disclosed in note 22 to these financial statements. The impact of this has been to create other reserves of £16,716 and to increase the cost of investment equally.