The Mead School Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03825123 (England and Wales)

Financial Statements

for the Year Ended 31 August 2019

for

The Mead School Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

S Antrobus

REGISTERED OFFICE:

25-27 High Street

Corsham

Wiltshire

SN13 0ES

REGISTERED NUMBER:

03825123 (England and Wales)

SOLICITORS:

MHA Monahans

38-42 Newport Street

Swindon

Wiltshire

SN1 3DR

FIXED ASSETS

Intangible assets

4

32,812

45,312

Tangible assets

5

874,365

891,764

907,177

937,076

CURRENT ASSETS

Debtors

6

1,451,160

1,010,116

Cash at bank and in hand

79,770

115,707

1,530,930

1,125,823

CREDITORS

Amounts falling due within one year

7

554,592

544,325

NET CURRENT ASSETS

976,338

581,498

TOTAL ASSETS LESS CURRENT LIABILITIES

1,883,515

1,518,574

PROVISIONS FOR LIABILITIES

27,587

32,479

NET ASSETS

1,855,928

1,486,095

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

1,855,926

1,486,093

SHAREHOLDERS' FUNDS

1,855,928

1,486,095

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

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

The financial statements were approved by the director on 7 February 2020 and were signed by:

S Antrobus - Director

1.	STATUTORY INFORMATION

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities"

of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland" and the Companies Act 2006.

The company's functional and presentation currency is the pound sterling.

The principal accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all the years presented, unless other stated.

Turnover

Revenue is measured at the fair value of the consideration received or receivable and represents the amount

receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the

Company and value added taxes.

Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a

financing transactions, the fair value of the consideration is measured as the present value of all future receipts

using the inputed rate of interest.

The Company recognises revenue when the following conditions are satisfied:

i. the Company has transferred to the buyer the significant risks and rewards of ownership of the goods or

services;

ii. the Company retains neither continuing managerial involvement to the degree associated with ownership nor

effective control over the goods or services sold;

iii. the amount of revenue can be measured reliably;

iv. it is probable that the economic benefits associated with the transaction can be measured reliably.

Provision of educational services

Income represents school fees and extra charges relating to the three academic terms in the year and income

from other activities. Fees invoiced in advance are carried forward for credit in the period to which they relate.

Interest receivable

Interest income is recognised using the effective interest method.

Goodwill

Goodwill arising on the acquisition of a business, representing any excess of the fair value of the consideration

given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a

straight line basis over its useful economic life which is 20 years. Provision is made for any impairment.

Negative goodwill is similarly included in the balance sheet and is credited to the profit and loss account in the

periods in which the acquired non-monetary assets are recovered through depreciation or sale. Negative

goodwill in excess of fair values of the non-monetary assets acquired is credited to the profit and loss account in

the periods expected to benefit.

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

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost

includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its

intended use, dismantling and restoration costs and borrowing costs capitalised.

Depreciation and residual values

Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates

calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful

life as follows:

Short leasehold - 4% on a straight line basis

Fixtures and fittings - 15% on a straight line basis

Motor vehicles - 25% on a straight line basis

Computer equipment - 15% on a straight line basis

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each

reporting period. The effect of any changes is accounted for prospectively.

Subsequent additions and major components

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate,

only when it is probable that economic benefits associated with the item will flow to the company and the cost

can be measured reliably.

The carrying amount of any replaced component is derecognised. Major components are treated as a separate

asset when they have significantly different patterns of consumption of economic benefits and are depreciated

separately over its useful life.

Repairs and maintenance costs are expensed as incurred.

Derecognition

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal,

the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss.

Taxation

Taxation for the year 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.

Current taxation

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is

calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable

tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amount

expected to be paid to the tax authorities.

Deferred tax

Deferred tax arises from timing differences that are differences between taxable profit and total comprehensive

income as stated in the financial statements. These timing differences arise from the inclusion of income and

expenses in tax assessment in periods different from those in which are recognised in financial statements.

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions.

Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be

recovered against the reversal of deferred tax liabilities or other future taxable profits.

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.

Leasing commitments

At inception the Company assesses agreements that transfer the right to use assets. The assessment considers

whether the arrangement is, or contains, a lease based on the substances of the arrangement.

Finance leased assets

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as

finance leases.

Finance leases are capitalised at commencement of the lease as assets at their value of the lease asset or, if

lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease.

Where the implicit rate cannot be determined the Company's incremental borrowing rate is used. Incremental

direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset.

Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are

assessed for impairment at each reporting date.

The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease

payments are apportioned between capital repayment and finance charge, using the effective interest rate

method, to produce a constant rate of charge on the balance of the capital repayments outstanding.

Operating leased assets

Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments

under operating leases are charged to the profit and loss account on a straight-line basis over the period of the

lease.

Lease incentives

Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the

calculation of present value of minimum lease payments.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the

lease expense, on a straight-line basis over the period of the lease.

The Company has taken advantage of the exemption in respect of lease incentive on leases in existence on the

date of transition to FRS 102 and continues to credit such lease incentives to the profit and loss account over the

period to the first review date on which the rent is adjusted to market rates.

Pension costs and other post-retirement benefits

The Company provides a range of benefits to employees, including paid holiday arrangements and defined

benefit and defined contribution pension plans.

Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an

expense in the period in which the service is received.

Defined benefit pension plan

Retirement benefits to employees of the Company are provided by the Teachers' Pension Scheme ('TPS').

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over

employees' working lives with the individual school 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 quadrennial valuations using a prospective unit credit method. The TPS is a

multi-employer scheme and therefore there is insufficient information available to use defined benefit accounting.

The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions

recognised in the period to which they relate.

The Company left the TPS on 1 September 2019.

Defined contribution pension plans

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension

plan under which the company pays fixed contributions into a separate entity. Once the contributions have been

paid the Company has no further payment obligations. The obligations are recognised as an expense when they

are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held

separately from the Company in independently administered funds.

Impairment of assets

Assets, other than those measured at fair value, as assessed for indicators of impairment at each balance sheet

date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described

below:

Non-financial assets

At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether

there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an

indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying

amount of the asset (or asset's cash generating unit).

The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to

sell and value in use. Value is use is defined as the present value of the future cash flows before interest and tax

obtainable as a result of the asset's (or asset's cash generating unit) continued use. These cash flows are

discounted using a pre-tax discount rate that represents the current market risk-free rate and risks inherent in the

asset.

If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying

amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the profit

and loss account, unless the asset has been revalued when the amount is recognised in other comprehensive

income to the extent of any previously recognised revaluation. Thereafter an excess is recognised in profit or

loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating

unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised

carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or

amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is

recognised in the profit and loss account.

Financial assets

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset's

carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original

effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's

carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at

the report date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an

event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial assets to the extent that the revised

recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment

been recognised.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly

liquid investments with original maturities of three months or less.

Provisions and contingencies

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past

events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the

obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is

determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of

an outflow with respect to any one time included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation

using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to

the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

Contingencies

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (a) it is not

probable that there will be an outflow of resources or that the amount cannot be reliably measured at the

reporting date or (b) when the existence will be confirmed by the occurrence or non-occurrence of uncertain

future events not wholly within the Group's control. Contingent liabilities are disclosed in the financial statements

unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an

inflow of economic benefit is probable.

Financial instruments

Financial instruments are classified by the directors as basic or advanced following the conditions in FRS 102

Section 11.

Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at

transaction price, 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.Such assets are subsequently

carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and loans from fellow

group companies, 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 receipts discounted at a

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

rate method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 45 (2018 - 43 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 September 2018

and 31 August 2019

250,000

AMORTISATION

At 1 September 2018

204,688

Amortisation for year

12,500

At 31 August 2019

217,188

NET BOOK VALUE

At 31 August 2019

32,812

At 31 August 2018

45,312

5.	TANGIBLE FIXED ASSETS

Fixtures

Short

and

Motor

Computer

leasehold

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 September 2018

1,026,391

120,587

11,940

155,854

1,314,772

Additions

20,764

12,502

420

14,405

48,091

At 31 August 2019

1,047,155

133,089

12,360

170,259

1,362,863

DEPRECIATION

At 1 September 2018

258,783

52,797

11,940

99,488

423,008

Charge for year

37,065

15,255

26

13,144

65,490

At 31 August 2019

295,848

68,052

11,966

112,632

488,498

NET BOOK VALUE

At 31 August 2019

751,307

65,037

394

57,627

874,365

At 31 August 2018

767,608

67,790

-

56,366

891,764

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

39,531

42,563

Amounts owed by group undertakings

1,368,047

932,360

Other debtors

3,359

-

Prepayments

40,223

35,193

1,451,160

1,010,116

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

64,647

34,574

Social security and other taxes

26,825

24,430

Other creditors

24,587

18,275

Accruals and deferred income

438,533

467,046

554,592

544,325

Included within other creditors is £17,513 (2018 - £15,366) for pension contributions outstanding at the balance

sheet date.

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

The Report of the Auditors was unqualified.

David Black (Senior Statutory Auditor)

for and on behalf of MHA Monahans

9.	CONTINGENT LIABILITIES

An omnibus guarantee and set-off agreement dated 1 September 2012 was entered into by the company for

securing all monies due or to become due from either the company or any one or more of the following

companies to Lloyds TSB Bank Plc:

Wishford Schools (Group) Limited

Wishford H1 Limited

Heywood Prep Limited

Wishford P1 Limited

Wishford P2 Limited

St Faith's at Ash School Limited

Wishford H2 Limited

On 16 June 2016 an agreement supplemental to that dated 1 September 2012 was entered into by the company

adding the following companies to the agreement:

The Mead School Limited

Wishford P6 Limited

On 14 August 2018 an agreement supplemental to that date 16 June 2016 was entered into by the company for

securing all monies due or to become due from either the company or any one or more of the following

companies to Lloyds TSB Bank Plc:

Wishford Schools (Group) Limited

Wishford P1 Limited

Wishford P2 Limited

Wishford P3 Limited

Wishford P5 Limited

Wishford P6 Limited

Hatherop Castle Limited

Heywood Prep Limited

St David's Prep Limited

St Faith's at Ash School Limited

The Mead School Limited

Cricklade Manor Prep Limited

Westonbirt Limited

The company had total operating lease commitments at the year end of £6,175,000 (2018: £6,460,000).

10.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

11.	ULTIMATE PARENT COMPANY