Kids Play Ltd. - Accounts to registrar (filleted) - small 18.2

KIDS PLAY LTD.

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST JULY 2019

Page

Company Information

1

Report of the Directors

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

P R Sharp

J Dickson

S Elliott

SECRETARY:

P R Sharp

REGISTERED OFFICE:

1a Roebuck Way

Knowhill

Milton Keynes

Buckinghamshire

MK5 8HL

REGISTERED NUMBER:

03757366 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Alberto Di Lorenzo FCA

AUDITORS:

HW East Midlands Audit LLP

Statutory Auditors

Woburn Court, 2 Railton Rd

Woburn Road Ind Est

Kempston

Bedfordshire

MK42 7PN

The directors present their report with the financial statements of the company for the year ended 31st July 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of providing childcare in East Anglia and the Home

Counties.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st August 2018 to the date of this report.

P R Sharp

J Dickson

S Elliott

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with

applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have

elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and of

the profit or loss of the company 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;

The directors are 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 them to

ensure that the financial statements comply with the Companies Act 2006. They are 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 directors are 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 each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

company's auditors are aware of that information.

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

companies.

ON BEHALF OF THE BOARD:

P R Sharp - Secretary

21st May 2020

FIXED ASSETS

Tangible assets

4

380,286

472,027

Investments

5

750

600

381,036

472,627

CURRENT ASSETS

Stocks

5,909

4,800

Debtors

6

562,304

371,725

Cash at bank and in hand

155,913

48,533

724,126

425,058

CREDITORS

Amounts falling due within one year

7

785,436

798,603

NET CURRENT LIABILITIES

(61,310

)

(373,545

)

TOTAL ASSETS LESS CURRENT LIABILITIES

319,726

99,082

CREDITORS

Amounts falling due after more than one year

8

36,882

62,033

NET ASSETS

282,844

37,049

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

282,842

37,047

SHAREHOLDERS' FUNDS

282,844

37,049

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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21st May 2020 and were signed on its behalf by:

P R Sharp - Director

1.	STATUTORY INFORMATION

Kids Play Ltd. 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has net current liabilities of £61,310 (2018: £373,545).

The company is supported by the company's parent and associated undertakings. The Directors, having assessed the

responses of the Directors of the company's parent and associated undertakings to their enquiries have no reason to

believe that a material uncertainty exists that may cast significant doubt about the ability of the parent and associated

undertakings to continue with the current level of support.

The Directors have reviewed and considered relevant information, including the annual budget and future cash flows

in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their

cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of

Covid-19 including the measures that they can take to mitigate the impact. In making these assessments the

Directors have budgeted for the business to be operating at reduced capacity between April 2020 and June 2020

where the nurseries were open for key workers. The Directors have forecast for turnover to gradually increase for

the remainder of 2020 as the UK economy continues to reopen. The Directors have mitigated the risks of the

Company generating less turnover by taking advantage of financial support which is available, including; grants,

business interruption loan and job retention scheme payments.

Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions,

and the current resources available, the Directors have concluded that they can continue to adopt the going concern

basis in preparing the annual report and accounts

The financial statements are presented in sterling which is the functional currency of the company and 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 in all years presented unless otherwise stated.

Turnover

Turnover represents amounts derived from the provision of nursery care as the services are provided. Any income

received in advance for after school care is deferred and included in current liabilities.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

10% on cost

Fixtures and fittings

-

10% on cost and Straight line over 5 years

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all

costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition.

Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving

stock where appropriate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss, 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 year 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are

depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of

the future payments is treated as a liability.

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.

Grants receivable

Grants received from local authorities are credited to the profit and loss account in the year in which they become

payable.

Investments in joint ventures

Investments are recorded at historic cost less any impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 181 (2018 - 163 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Short

to

and

leasehold

property

fittings

£

£

£

COST

At 1st August 2018

9,697

367,260

990,451

Additions

-

24,346

3,602

Disposals

(6,774

)

(38,510

)

-

Reclassification/transfer

(2,922

)

2,922

-

At 31st July 2019

1

356,018

994,053

DEPRECIATION

At 1st August 2018

-

180,158

753,127

Charge for year

-

30,076

41,658

Eliminated on disposal

-

(10,417

)

-

At 31st July 2019

-

199,817

794,785

NET BOOK VALUE

At 31st July 2019

1

156,201

199,268

At 31st July 2018

9,697

187,102

237,324

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1st August 2018

74,254

73,267

1,514,929

Additions

-

2,879

30,827

Disposals

(8,317

)

-

(53,601

)

Reclassification/transfer

-

-

-

At 31st July 2019

65,937

76,146

1,492,155

DEPRECIATION

At 1st August 2018

53,652

55,965

1,042,902

Charge for year

5,150

10,446

87,330

Eliminated on disposal

(7,946

)

-

(18,363

)

At 31st July 2019

50,856

66,411

1,111,869

NET BOOK VALUE

At 31st July 2019

15,081

9,735

380,286

At 31st July 2018

20,602

17,302

472,027

The net book value of tangible fixed assets includes £ 179,161 (2018 - £ 213,074 ) in respect of assets held under

finance leases.

5.	FIXED ASSET INVESTMENTS

Interest

in joint

venture

£

COST

At 1st August 2018

600

Additions

150

At 31st July 2019

750

NET BOOK VALUE

At 31st July 2019

750

At 31st July 2018

600

Joint Ventures

Willows Farm Day Nursery Limited

Registered Office: Willows Farm Village, Bowmansgreen Farm London Colney, St Albans, Hertfordshire, AL2 1BB

Class of shares:

Ordinary 50.00%

Topsy Turvy Day Nursery Ltd

Registered Office: The Grampians 5 Grampian Gardens, Golders Green, London, NW12 1JH

Class of shares:

Ordinary 50.00%

Mead Open Farm Day Nursery Limited

Registered Office: 1a Roebuck Way, Knowlhill, Milton Keynes, MK5 8HL

Class of shares:

Ordinary 50.00%

Adventure Valley Day Nursery Limited

Registered Office: Union Hall Farm, Brasside, Co Durham, DH1 5SG

Class of shares:

Ordinary 50.00%

Rand Farm Park Day Nursery Ltd

Whitehouse Farm, Rand, Lincoln, Lincolnshire, LN8 5NJ

Class of shares:

Ordinary 50.00%

Odds Farm Park Day Nursery Ltd

Registered Office: 1a Roebuck Way, Knowlhill, Milton Keynes, MK5 8HL

Class of shares:

Ordinary 50.00%

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/7/19

31/7/18

£

£

Trade debtors

146,626

173,743

Doubtful debt provision

(33,128

)

(69,217

)

Amounts owed by joint ventures

204,166

124,978

Other debtors

7,701

30,594

VAT

3,764

10,814

Prepayments and accrued income

233,175

100,813

562,304

371,725

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/7/19

31/7/18

£

£

Finance leases (see note 9)

31,075

64,429

Trade creditors

452,878

431,869

Amounts owed to group undertakings

50,000

-

Social security and other taxes

35,835

57,287

Other creditors

8,929

7,778

Owed to related party

62,200

49,293

Accruals and deferred income

144,519

187,947

785,436

798,603

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/7/19

31/7/18

£

£

Loans from related companies

34,339

34,339

Finance leases (see note 9)

2,543

27,694

36,882

62,033

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases

31/7/19

31/7/18

£

£

Net obligations repayable:

Within one year

31,075

64,429

Between one and five years

2,543

27,694

33,618

92,123

Non-cancellable operating

leases

31/7/19

31/7/18

£

£

Within one year

197,239

172,500

Between one and five years

726,827

710,000

In more than five years

115,000

287,500

1,039,066

1,170,000

10.	SECURED DEBTS

The following secured debts are included within creditors:

31/7/19

31/7/18

£

£

Finance leases

33,618

92,123

The bank have two charges registered over the company, including; a cross company guarantee with Rollers (UK)

Limited and a debenture over all the assets of the company.

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

The Report of the Auditors was unqualified.

Mr Alberto Di Lorenzo FCA (Senior Statutory Auditor)

for and on behalf of HW East Midlands Audit LLP

12.	ULTIMATE CONTROLLING PARTY

There was no ultimate controlling party in the financial year.