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Registered number: 09450731
Further Learning (U.K.) Limited
Unaudited
Director's report and financial statements
Information for filing with the registrar
For the year ended 31 July 2021
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Further Learning (U.K.) Limited
Director's report
For the year ended 31 July 2021
The director presents his report and the financial statements for the year ended 31 July 2021.
Director's responsibilities statement
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The director is responsible for preparing the Director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
The principal activity of the company is that of providing fully accredited classroom-based and home study courses that enable students to acquire the skills they need to achieve their career goals.
COVID-19 impacts were still felt during the FY 2021 presenting many challenges that the company was quick to tackle and was able to leverage its personnel skills and expertise to identify improvement in the operations, product and delivery to ensure we were a steady and reliable partner to both our employees and learners.
Overall, we continued to see an increase in the rate of adoption of the online mode of delivery that is resulting in a significant expansion of the target market. The company believes to be well positioned itself to service this increase in demand using its robust OLC to leverage its quality content. Further Learning UK Limited has been operating with funds generated from its own activities and that situation is projected to continue with the company generating additional funds that will be used to assist in our future growth plans and expansion efforts.
The director who served during the year was:
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Further Learning (U.K.) Limited
Director's report (continued)
For the year ended 31 July 2021
In preparing this report, the director has taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Further Learning (U.K.) Limited
Chartered accountants' report to the director on the preparation of the unaudited statutory financial statements of Further Learning (U.K.) Limited for the year ended 31 July 2021
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Further Learning (U.K.) Limited for the year ended 31 July 2021 which comprise the Balance sheet and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the director of Further Learning (U.K.) Limited in accordance with the terms of our engagement letter dated 21 November 2019. Our work has been undertaken solely to prepare for your approval the financial statements of Further Learning (U.K.) Limited and state those matters that we have agreed to state to the director of Further Learning (U.K.) Limited in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Further Learning (U.K.) Limited and its director for our work or for this report.
It is your duty to ensure that Further Learning (U.K.) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Further Learning (U.K.) Limited. You consider that Further Learning (U.K.) Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or review of the financial statements of Further Learning (U.K.) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Kreston Reeves LLP
Chartered Accountants
Canterbury
31 May 2022
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Further Learning (U.K.) Limited
Registered number: 09450731
Balance sheet
As at 31 July 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 5 to 9 form part of these financial statements.
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2021
Further Learning (U.K.) Limited is a private company limited by shares which was incorporated in England and Wales with the registered number 09450731.
The company's registered office is 48 Dover Street, London, W1S 4FF.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements are rounded to the nearest pound.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis.
In the making of this assessment, management conducted a comprehensive review of the company's financial affairs, including but not limited to:
• The financial position for the financial year ended 31 July 2021
• The Cashflow forecast for the entity for the period up to 31 July 2022
• Sales and profitability forecast for the next three financial years
• The continued support of its parent entity
During the financial year ended 31 July 2021 the company has experienced total losses of £287k but has increased the cash reserves to £650k and deferred income to £3.22m. This was a considerable improvement on the excellent performance from the previous year and emboldens the company to continue its path towards success. The recorded losses are a direct consequence of the income recognition model commonly used across the education and training sector. Revenue derived from sales is initially transferred into deferred income and released as the student progresses throughout the course and the service is delivered. This deferral period increases the longer the duration of the courses provided, which in our case ranges from short term qualifications such as certificates to longer duration qualifications like our BA Honours Degree, as such the significant increase in deferred income foretells significant uptake in the income for the coming months and years. The strategy privileging a strong and sustainable growth will soon be translated into profitability.
COVID-19 impacts were still felt during the FY 2021 presenting many challenges that the company was quick to tackle and was able to leverage its personnel skills and expertise to identify improvement in the operations, product and delivery to ensure we were a steady and reliable partner to both our employees and learners.
Overall, we continued to see an increase in the rate of adoption of the online mode of delivery that is resulting in a significant expansion of the target market. The company believes itself to be well positioned to service this increase in demand using its robust OLC to leverage its quality content. The company has been operating with funds generated from its own activities and that situation is projected to continue with the company generating additional funds that will be used to assist in our future growth plans and expansion efforts.
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2021
2.Accounting policies (continued)
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Going concern (continued)
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The FLG group reiterates its commitment to the UK market, believes it to be crucial to its growth plans and is invested in the continuous success and growth of the company. Should the situation drastically reverse, the FLG Group is available to provide funds and any necessary support to ensure the situation is corrected.
In making its assessment management acknowledges that the ability of the company to continue as a going concern is dependent on the generation of profits and positive cashflows and is fully committed to meet operational and sales targets, track any challenges to the business and implement the necessary adjustments to ensure continuous and sustainable success.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2021
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Defined contribution pension plan
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 contributions are recognised as an expense in profit or loss 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.
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The average monthly number of employees, including the director, during the year was as follows:
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2021
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Charge for the year on owned assets
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Further Learning (U.K.) Limited
Notes to the financial statements
For the year ended 31 July 2021
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Allotted, called up and fully paid
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100 (2020 - 100) Ordinary shares of £1.00 each
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The company is a wholly owned subsidiary of Further Learning Limited, a company registered in the Republic of Ireland.
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