St John's International School Limited - Period Ending 2020-08-31

St John's International School Limited

Contents

Balance Sheet	1
Notes to the Financial Statements	2 to 12

St John's International School Limited

(Registration number: 07999804)
Balance Sheet as at 31 August 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	5	2,212,889	2,180,330
Current assets
Stocks	6	10,155	8,634
Debtors	7	284,709	287,551
Cash at bank and in hand		113,674	177,863
		408,538	474,048
Creditors: Amounts falling due within one year	8	(2,911,699)	(3,653,159)
Net current liabilities		(2,503,161)	(3,179,111)
Total assets less current liabilities		(290,272)	(998,781)
Creditors: Amounts falling due after more than one year	8	(5,042,418)	(4,637,881)
Provisions for liabilities
Deferred tax liabilities		-	(675)
Net liabilities		(5,332,690)	(5,637,337)
Capital and reserves
Called up share capital		100	100
Revaluation reserve		907,517	906,842
Profit and loss account		(6,240,307)	(6,544,279)
Total equity		(5,332,690)	(5,637,337)

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

Approved and authorised by the Board on 29 April 2021 and signed on its behalf by:
 

M Segovia Director

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Narrow Quay House
Narrow Quay
Bristol
BS1 4QA

The principal place of business is:
Broadway
Sidmouth
Devon
EX10 8RG

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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 otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

Going concern

At the balance sheet date the company had net current liabilities of £2,503,161 and total net liabilities of £5,332,690. The financial statements have been prepared on the going concern basis which assumes that the company will continue in operation for at least 12 months from the date of the approval of these financial statements.

The company's continuing activities are dependent upon the ongoing support of Dr J Segovia Bonet for the foreseeable future through International Education Systems Limited, as the ultimate shareholder of this company, and the provision of loans through affiliated companies within the IES (International Education Systems) and SEK international schools network. The loan balances and interest due on the loans from the network at the year end totalled £7,522,543 of which £2,487,585 is due within one year of the balance sheet date.

The directors have expressed their intention to continue to provide financial support to the company for at least the next twelve months, to renew those loans falling due in that period and assist with any working capital requirements in 2020-21. The directors have considered the impact of the ongoing Covid-19 pandemic when assessing the working capital requirements. As a result, the directors believe the company will be able to settle or renegotiate debts as they fall due and on this basis the directors have prepared the financial statements on a going concern basis.

Turnover recognition

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business.

Turnover is net of any grants and scholarships awarded.

Government grants

Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors within the balance sheet.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible assets

Tangible assets are stated at cost or valuation, less accumulated depreciation and accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of tangible assets

Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land and buildings	Not depreciated
Fixtures and fittings	10-33% straight line basis
Motor vehicles	20% straight line basis
Plant and equipment	20% straight line basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Other debtors are initially recognised at fair value net of transaction costs and are sebequently measured at amortised cost using the effective interest method less any provision for impairment.

Stocks

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

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities, including loans, are measured individually at fair value net of transaction costs and subsequently at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss reserve includes all current and prior period profits and losses.

Revaluation reserve is the surplus or deficit arising on the revaluation of an asset of a company.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

Defined benefit pension obligation

The company operates two pension schemes:

The Teachers' Pension Scheme (England and Wales) for its teaching staff. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the academy trust in such a way that 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. TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

A defined contribution scheme for the other staff, where the assets of the scheme are held separately from those of the company.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Defined contribution pension obligation

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 payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year was 41 (2019 - 49).

4	Government grants

During the year income of £105,060 was received from the government under the coronavirus job retention scheme. At the year end, £25,840 was held in other debtors in relation to the scheme.

The amount of grants recognised in the financial statements was £105,060 (2019 - £Nil).

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

Revaluation

The fair value of the company's land and buildings was revalued on 17 March 2017 by an independent valuer.

The land and buildings, which includes certain fixtures and fittings, were valued on an open market, existing use basis at £2,150,000. This valuation has been included in the financial statements. Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,072,795 (2019 - £1,093,480). This is made up of costs of £1,602,160 (2019: £1,547,908) less accumulated depreciation of £529,366 (2019: £454,428).

6

Stocks

	2020 £	2019 £
Goods for resale and use	10,155	8,634

7

Debtors

	2020  £	2019  £
Trade debtors	212,288	229,685
Other debtors	72,421	57,866
Total current trade and other debtors	284,709	287,551

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

8

Creditors

Creditors: amounts falling due within one year

	Note	2020 £	2019 £
Due within one year
Loans and borrowings	9	2,042,498	2,402,729
Trade creditors		56,982	140,355
Taxation and social security		34,190	29,970
Other creditors		778,029	1,080,105
		2,911,699	3,653,159

Creditors: amounts falling due after more than one year

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	9	4,558,120	4,140,190
Other non-current financial liabilities		484,298	497,691
		5,042,418	4,637,881

9	Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Other borrowings	2,042,498	2,402,729

	2020 £	2019 £
Non-current loans and borrowings
Other borrowings	4,558,120	4,140,190

Loans and borrowings due in greater than five years

Included in the loans and borrowings are the following amounts due after more than five years:

	2020 £	2019 £
After more than five years not by instalments	1,470,455	1,603,376

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

10	Reserves reconciliation

	Revaluation reserve £
At 1 September 2019	906,842
Movement in year :
Deferred tax on property, plant and equipment revaluation	675
Total comprehensive income	675
At 31 August 2020	907,517

	Revaluation reserve £
At 1 September 2018	906,842
Movement in year :
At 31 August 2019	906,842

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

11	Teachers pension scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in academies and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis - these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers' Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education on 9 June 2014.

The key elements of the valuation and subsequent consultation are:
• employer contribution rates set at 16.48% of pensionable pay (including a 0.08% employer
administration charge)
• total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for
service to the effective date of £191,500 million, and notional assets (estimated future
contributions together with the notional investments held at the valuation date) of £176,600 million
giving a notional past service deficit of £14,900 million
• an employer cost cap of 10.9% of pensionable pay will be applied to future valuations
• the assumed real rate of return is 3.0% in excess of prices and 2% in excess of earnings. The rate
of real earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%.

The TPS valuation for 2012 determined an employer rate of 16.4%, which was payable from September 2015. The latest valuation of the TPS based on April 2016 data determined an employer contribution rate of 23.6% which will be payable from 1 September 2019. The employer’s pension costs paid to TPS in the period amounted to £135,000 (2019 - £113,000). A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website. Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The academy trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy trust has set out above the information available on the scheme. The school ceased to be a member of the scheme on 30 September 2020.

12	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £3,413 (2019 - £5,364).

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2020

13	Related party transactions

Summary of transactions with other related parties

Affiliated Schools within IES network
At the balance sheet date, the company had loans denominated in US dollars owing to schools with the IES network totalling £2,918,981 (2019: £3,113,083). The company also had loans denominated in Sterling totalling £789,284 (2019: £752,994), and loans denominated in Euros totalling £76,145 (2019: £75,325).

Affiliated Schools within SEK network
At the balance sheet date, the company had loans denominated in US dollars owing to schools within the SEK network totalling £1,240,784 (2019: £1,273,155). The company also had loans denominated in Euros totalling £1,706,309 (2019: £1,624,214) and loans denominated in Sterling totalling £624,259 (2019: £nil).

IES Limited (Parent company)
At the balance sheet date the company had a loan denominated in Sterling owing to IES Limited of £166,781 (2019: £166,781).

All loans bear interest at an annual rate from 1.50% to 3.00%, and are due within 7 years.
 

14	Parent and ultimate parent undertaking

The company's immediate parent is International Education Systems Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is International Education Systems Limited. These financial statements are available upon request from Companies House, Crown Way, Cardiff.

 The ultimate controlling party is Dr J Segovia Bonet.

15	Audit Report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 6 May 2021 was Joseph Doggrell ACA, who signed for and on behalf of Albert Goodman LLP.