Company No: SC211868 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2021		2020
		£		£
Fixed assets
Tangible assets	3	2,146,872		2,168,439
		2,146,872		2,168,439
Current assets
Stocks		2,352		1,820
Debtors	4	275,659		230,960
Cash at bank and in hand		182,392		62,663
		460,403		295,443
Creditors
Amounts falling due within one year	5	( 354,497)		( 250,680)
Net current assets		105,906		44,763
Total assets less current liabilities		2,252,778		2,213,202
Creditors
Amounts falling due after more than one year	6	( 822,074)		( 866,228)
Net assets		1,430,704		1,346,974
Capital and reserves
Called-up share capital	7	25,000		25,000
Revaluation reserve		538,753		548,350
Profit and loss account		866,951		773,624
Total shareholders' funds		1,430,704		1,346,974

For the financial year ending 31 December 2021 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Cherrytrees Childrens Nurseries Limited (registered number: SC211868) were approved and authorised for issue by the Director on 17 August 2022. They were signed on its behalf by:

S Bennet Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Cherrytrees Childrens Nurseries Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is 3 Abbey Road, Dunbar, EH42 1JP, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Turnover

Turnover represents amounts receivable for the operation of children's nurseries and out of school clubs.

Revenue from the sale of services is recognised when the service is supplied, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

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.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	0 - 50 years straight line
Leasehold improvements	5 years straight line
Assets under construction	not depreciated
Plant and machinery	3 years straight line
Fixtures and fittings	4 years straight line

The transfers between the revaluation reserve and the profit and loss reserves, detailed in the statement of changes in equity, relates to the excess depreciation charge written off over the useful economic life of the revalued buildings.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

The Company as lessee
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

At each reporting period end date, the Company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks

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

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash with the banks and in hand.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.

Basic financial liabilities
Basic financial liabilities, including creditors, and bank loans, 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. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the Company will comply with conditions attaching to them and the grants will be received.

A grant that specifies performance conditions is recognised in income only when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the grant proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2. Employees

	2021		2020
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	96		96

3. Tangible assets

	Land and buildings		Leasehold improve- ments		Assets under construc- tion		Plant and machinery		Fixtures and fittings		Total
	£		£		£		£		£		£
Cost
At 01 January 2021	2,433,654		59,001		725		28,036		253,315		2,774,731
Additions	0		0		3,368		950		39,811		44,129
Disposals	0		0		0		( 1,100)		( 17,612)		( 18,712)
Transfers	4,093		0		( 4,093)		0		0		0
At 31 December 2021	2,437,747		59,001		0		27,886		275,514		2,800,148
Accumulated depreciation
At 01 January 2021	329,529		58,117		0		24,820		193,826		606,292
Charge for the financial year	35,405		442		0		2,849		26,999		65,695
Disposals	0		0		0		( 1,100)		( 17,611)		( 18,711)
At 31 December 2021	364,934		58,559		0		26,569		203,214		653,276
Net book value
At 31 December 2021	2,072,813		442		0		1,317		72,300		2,146,872
At 31 December 2020	2,104,125		884		725		3,216		59,489		2,168,439

Revaluation of tangible assets

The freehold and leasehold land and buildings were professionally valued on an open market basis by Savills, Chartered Surveyors on 2 August 2010.

If the revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

	2021		2020
	£		£
Historical cost	1,696,330		1,696,330
Accumulated depreciation	(513,046)		(479,119)
Carrying value	1,183,284		1,217,211

4. Debtors

	2021		2020
	£		£
Trade debtors	272,203		217,539
Other debtors	3,456		13,421
	275,659		230,960

5. Creditors: amounts falling due within one year

	2021		2020
	£		£
Bank loans	89,373		76,554
Trade creditors	31,591		25,559
Other creditors	182,838		107,498
Corporation tax	27,941		21,433
Other taxation and social security	22,754		19,636
	354,497		250,680

A floating charge was taken out on 5 October 2016 over the freehold and leasehold property of the Company in favour of HSBC Bank PLC.

A standard security was also taken out on the Dunbar, Edinburgh and Hawick properties in favour of HSBC Bank PLC.

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

	2021		2020
	£		£
Bank loans	822,074		861,717
Other creditors	0		4,511
	822,074		866,228

A floating charge was taken out on 5 October 2016 over the freehold and leasehold property of the Company in favour of HSBC Bank PLC.

A standard security was also taken out on the Dunbar, Edinburgh and Hawick properties in favour of HSBC Bank PLC.

7. Called-up share capital

	2021		2020
	£		£
Allotted, called-up and fully-paid
5,000 Ordinary shares shares of £ 1.00 each	5,000		5,000
20,000 Preference shares shares of £ 1.00 each	20,000		20,000
	25,000		25,000

8. Financial commitments

Other financial commitments

	2021		2020
	£		£
	59,500		101,500

At the reporting date the Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as outlined above.

9. Related party transactions

Other related party transactions

	2021		2020
	£		£
Key Management Personnel - loans due to	22,183		41,243

These loans are interest free and have no fixed terms of repayment.

No guarantees have been given or received.