Nurture Day Nurseries Limited Filleted accounts for Companies House (small and micro)

NURTURE DAY NURSERIES LTD - Company Information

37 false false false false false false false false false true false false false false false false No description of principal activity 2019-09-01 Sage Accounts Production Advanced 2020 - FRS102_2019 158,301 422 10,809 147,914 132,651 6,156 9,361 129,446 18,468 25,650 xbrli:pure xbrli:shares iso4217:GBP 07665594 2019-09-01 2020-08-31 07665594 2020-08-31 07665594 2019-08-31 07665594 2018-09-01 2019-08-31 07665594 2019-08-31 07665594 core:FurnitureFittings 2019-09-01 2020-08-31 07665594 bus:Director1 2019-09-01 2020-08-31 07665594 core:WithinOneYear 2020-08-31 07665594 core:WithinOneYear 2019-08-31 07665594 core:FurnitureFittings 2019-08-31 07665594 core:FurnitureFittings 2020-08-31 07665594 core:AfterOneYear 2020-08-31 07665594 core:ShareCapital 2020-08-31 07665594 core:ShareCapital 2019-08-31 07665594 core:RetainedEarningsAccumulatedLosses 2020-08-31 07665594 core:RetainedEarningsAccumulatedLosses 2019-08-31 07665594 core:FurnitureFittings 2019-08-31 07665594 bus:SmallEntities 2019-09-01 2020-08-31 07665594 bus:AuditExempt-NoAccountantsReport 2019-09-01 2020-08-31 07665594 bus:FullAccounts 2019-09-01 2020-08-31 07665594 bus:SmallCompaniesRegimeForAccounts 2019-09-01 2020-08-31 07665594 bus:PrivateLimitedCompanyLtd 2019-09-01 2020-08-31

COMPANY REGISTRATION NUMBER: 07665594

Nurture Day Nurseries Limited

Filleted Unaudited Financial Statements

31 August 2020

Nurture Day Nurseries Limited

Balance Sheet

31 August 2020

	2020		2019
Note	£	£	£

Fixed assets

Tangible assets	5		18,468	25,650

Current assets

Debtors	6	105,248	40,285
Cash at bank and in hand		217,960	155,969
		---------	---------
		323,208	196,254

Creditors: amounts falling due within one year	7	( 149,685)		( 169,530)
		---------		---------
Net current assets			173,523	26,724
			---------	--------
Total assets less current liabilities			191,991	52,374

Creditors: amounts falling due after more than one year	8		( 159,613)	–

Provisions

Taxation including deferred tax	( 3,260)	( 4,570)
	---------	--------
Net assets	29,118	47,804
	---------	--------

Capital and reserves

Called up share capital	1,000	1,000
Profit and loss account	28,118	46,804
	--------	--------
Shareholder funds	29,118	47,804
	--------	--------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 August 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Nurture Day Nurseries Limited

Balance Sheet (continued)

31 August 2020

These financial statements were approved by the board of directors and authorised for issue on 6 January 2021 , and are signed on behalf of the board by:

Mrs. M. Patel
Director

Company registration number: 07665594

Nurture Day Nurseries Limited

Notes to the Financial Statements

Year ended 31 August 2020

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 20 Pepys Road, London, SW20 8PF, England.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The director considers that the going concern basis is appropriate for the preparation of the financial statements, but a material uncertainty exists. The company has been materially and adversely affected by the effects of the COVID-19 pandemic. After the government closures which saw nurseries close temporarily, demand for company's services was reduced. Customers did not renew the demand for the services as they themselves were furloughed, made redundant or working from home. There has been a steady influx of registrations after the year ended 31 August 2020, but demand uncertainty remains. The company's operating profits have been reduced to £287,367 in the year to 31 August 2020 (2019: operating profit £355,331).Although the company has reported for the year ended 31 August 2020 net assets amounting to £29,118 (2019:£47,804), due to the rapid and ongoing nature of COVID-19 the director is uncertain when the profitability will return to pre-COVID level. The company had additional borrowing to assist with the cashflow for the year ended 31 August 2020.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities. The only estimate made by the management is the estimated useful life of the tangible fixed assets.

Revenue recognition

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts and rebates. Revenue from a contract to provide services is recognised in the period in which the services are provided.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Fixtures, fittings and equipment	-	25% reducing balance

Government grants

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

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Debtors

Basic financial assets, including trade and other debtors, 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, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 37 (2019: 38 ).

5. Tangible assets

	Fixtures, fittings and equipment	Total
	£	£
Cost
At 1 September 2019	158,301	158,301
Additions	422	422
Disposals	( 10,809)	( 10,809)
	---------	---------
At 31 August 2020	147,914	147,914
	---------	---------
Depreciation
At 1 September 2019	132,651	132,651
Charge for the year	6,156	6,156
Disposals	( 9,361)	( 9,361)
	---------	---------
At 31 August 2020	129,446	129,446
	---------	---------
Carrying amount
At 31 August 2020	18,468	18,468
	---------	---------
At 31 August 2019	25,650	25,650
	---------	---------

6. Debtors

	2020	2019
	£	£
Trade debtors	23,511	16,102
Prepayments and accrued income	81,737	24,183
	---------	--------
	105,248	40,285
	---------	--------

7. Creditors: amounts falling due within one year

	2020	2019
	£	£
Bank loans and overdrafts	19,958	8,627
Trade creditors	24,449	24,618
Accruals and deferred income	9,381	22,381
Corporation tax	55,569	68,360
Director loan accounts	603	603
Other creditors	39,725	44,941
	---------	---------
	149,685	169,530
	---------	---------

Included under creditors falling due within one year is £10,387 (2019 - £Nil)Coronavirus business interruption bank loan, 80% secured by the government and rest by the debenture against the company's assets.

8. Creditors: amounts falling due after more than one year

	2020	2019
	£	£
Bank loans and overdrafts	159,613	–
	---------	----

Included under creditors falling due after more than one year is £159,613 (2019 - £Nil) Coronavirus business interruption bank loan, falling due for payment after more than 5 years. 80% of the loan is secured by the government and rest by the debenture against the company's assets.The amount is payable by monthly instalments. The company may make additional repayments at any time. Interest rate chargeable is 4.42%p.a over the base rate.The base rate at the balance sheet date was 0.1% p.a

9. Related party transactions

During the year, the company carried out the following transactions with related parties: (1) Included in creditors due within one year is a loan of £603 (2019: £603) from the director. This loan is interest-free and has no fixed repayment term. (2) The company has provided guarantees of £1,200,000 supported by debentures to secure bank loans for Letap Properties Limited, a company in which the director has a material interest. Letap's loan balance at the balance sheet date is £976,032 (2019: £1,059,437)