EDNS Group Limited - Limited company accounts 22.3
EDNS Group Limited - Limited company accounts 22.3
REGISTERED NUMBER: 10698364 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
FOR |
EDNS GROUP LIMITED |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
EDNS GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
part of Pulp Fraction Limited |
(Statutory Auditor) |
107 Bell Street |
London |
NW1 6TL |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2022 |
The directors present their strategic report of the company and the group for the year ended 31 March 2022. |
REVIEW OF BUSINESS |
The results for the year and financial position of the Group are as shown in the annexed financial statements. |
The year ended 31st March 2022 there was a increase in gross profit margin and profitability due to the group having having a full year of trading within the Nursery and the Restaurant as the Government dispensed with Covid lock down. The Group continues to remain profitable. The net assets of the company increased during the year by 6%. The key financial indicators that the directors use to monitor the performance of the business are turnover, gross profit and operating profit, details of which are set out in 'analysis of development and performance' below. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Group faces a number of risks and uncertainties due to competition, maintaining the reputation and quality of service together with satisfying the laws and regulations. |
The business' principal financial instruments comprise bank balances and bank loans to the business. The main purpose of these instruments is to finance the business' operations. |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. |
Loans comprise loans from financial institutions. The interest rate and monthly repayments on the loans are fixed to the bank's base rate. The business manages the liquidity risk by ensuring there are sufficient funds to meet the payments. |
ANALYSIS OF DEVELOPMENT AND PERFORMANCE |
31.03.22 | 31.03.21 |
Turnover | £8.37m | £6.20m |
Gross profit margin | 38.14% | 26.83% |
Operating profit/ (loss) | £863k | £(216k) |
Profit before tax/ (loss) | £779k | £(299k) |
GOING CONCERN |
The financial statements have been prepared on a going concern basis which the directors consider to be appropriate, for the following reasons. |
The directors reviewed the cash flow forecasts for the Group extending until July 2023. Management have modelled various cash flow scenarios, including a severe yet plausible downside scenario which indicates that the company will have sufficient funds, through its facility and operating cash flows, to meet its liabilities as they fall due for that period. |
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis. |
ON BEHALF OF THE BOARD: |
18 October 2022 |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2022. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of School Nursery and hotelier with Restaurant. |
DIVIDENDS |
The total distribution of dividends for the year end 31 March 2022 was £300,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, 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). 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 the group and of the profit or loss of the group 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Butters Gates & Company, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EDNS GROUP LIMITED |
Opinion |
We have audited the financial statements of EDNS Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EDNS GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company. These include, but are not limited to, compliance with Companies Act 2006, UK GAAP and tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risk was related to posting inappropriate journal entries to manipulate financial results. |
Audit Procedures performed by the audit engagement team included: - We had discussions with management regarding known or suspected instances of non-compliance with laws and regulations and fraud; - We sample tested manual journal entries, in particular journal entries posted with unusual characteristics; . We investigated the rationale behind significant or unusual transactions. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EDNS GROUP LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
part of Pulp Fraction Limited |
(Statutory Auditor) |
107 Bell Street |
London |
NW1 6TL |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ |
TURNOVER | 8,371,925 | 6,207,159 |
Cost of sales | 5,178,498 | 4,491,366 |
GROSS PROFIT | 3,193,427 | 1,715,793 |
Administrative expenses | 2,370,715 | 2,776,351 |
822,712 | (1,060,558 | ) |
Other operating income | 39,994 | 843,753 |
OPERATING PROFIT/(LOSS) | 4 | 862,706 | (216,805 | ) |
Profit/loss on sale of |
investment | 5 | 3 | - |
862,703 | (216,805 | ) |
Interest receivable and similar income | 191 | 1,849 |
862,894 | (214,956 | ) |
Interest payable and similar expenses | 6 | 83,542 | 83,600 |
PROFIT/(LOSS) BEFORE TAXATION | 779,352 | (298,556 | ) |
Tax on profit/(loss) | 7 | 195,874 | (13,168 | ) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 583,478 | (285,388 | ) |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 583,478 | (285,388 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
583,478 |
(285,388 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 583,478 | (285,388 | ) |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 7,266,149 | 7,529,519 |
Investments | 12 | - | 3 |
7,266,149 | 7,529,522 |
CURRENT ASSETS |
Stocks | 13 | 2,600 | 2,600 |
Debtors | 14 | 743,464 | 867,128 |
Cash at bank and in hand | 2,244,294 | 1,343,111 |
2,990,358 | 2,212,839 |
CREDITORS |
Amounts falling due within one year | 15 | 1,928,244 | 1,341,714 |
NET CURRENT ASSETS | 1,062,114 | 871,125 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
8,328,263 |
8,400,647 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(2,946,322 |
) |
(3,302,184 |
) |
PROVISIONS FOR LIABILITIES | 19 | (18,463 | ) | (18,463 | ) |
NET ASSETS | 5,363,478 | 5,080,000 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,000 | 1,000 |
Retained earnings | 21 | 5,362,478 | 5,079,000 |
SHAREHOLDERS' FUNDS | 5,363,478 | 5,080,000 |
The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2022 and were signed on its behalf by: |
G J A Jessiman - Director |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
COMPANY BALANCE SHEET |
31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year | 270,778 | (288,317 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2020 | 1,000 | 5,384,388 | 5,385,388 |
Changes in equity |
Dividends | - | (20,000 | ) | (20,000 | ) |
Total comprehensive income | - | (285,388 | ) | (285,388 | ) |
Balance at 31 March 2021 | 1,000 | 5,079,000 | 5,080,000 |
Changes in equity |
Dividends | - | (300,000 | ) | (300,000 | ) |
Total comprehensive income | - | 583,478 | 583,478 |
Balance at 31 March 2022 | 1,000 | 5,362,478 | 5,363,478 |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,436,645 | (1,076,305 | ) |
Interest paid | (83,542 | ) | (83,600 | ) |
Government Grants | 23,896 | 801,531 |
Tax paid | 8,979 | (272,365 | ) |
Net cash from operating activities | 1,385,978 | (630,739 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (19,872 | ) | (49,675 | ) |
Sale of fixed asset investments | 3 | - |
Interest received | 191 | 1,849 |
Net cash from investing activities | (19,678 | ) | (47,826 | ) |
Cash flows from financing activities |
Loan repayments in year | (176,938 | ) | (164,046 | ) |
Amount introduced by directors | 600,000 | 20,000 |
Amount withdrawn by directors | (588,179 | ) | (28,604 | ) |
Equity dividends paid | (300,000 | ) | (20,000 | ) |
Net cash from financing activities | (465,117 | ) | (192,650 | ) |
Increase/(decrease) in cash and cash equivalents | 901,183 | (871,215 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,343,111 |
2,214,326 |
Cash and cash equivalents at end of year | 2 | 2,244,294 | 1,343,111 |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2022 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.22 | 31.3.21 |
£ | £ |
Profit/(loss) before taxation | 779,352 | (298,556 | ) |
Depreciation charges | 283,242 | 281,899 |
Government grants | (23,896 | ) | (801,531 | ) |
Finance costs | 83,542 | 83,600 |
Finance income | (191 | ) | (1,849 | ) |
1,122,049 | (736,437 | ) |
Decrease/(increase) in trade and other debtors | 114,686 | (331,468 | ) |
Increase/(decrease) in trade and other creditors | 199,910 | (8,400 | ) |
Cash generated from operations | 1,436,645 | (1,076,305 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 2,244,294 | 1,343,111 |
Year ended 31 March 2021 |
31.3.21 | 1.4.20 |
£ | £ |
Cash and cash equivalents | 1,343,111 | 2,214,326 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.21 | Cash flow | At 31.3.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,343,111 | 901,183 | 2,244,294 |
1,343,111 | 901,183 | 2,244,294 |
Debt |
Debts falling due within 1 year | (136,229 | ) | (178,924 | ) | (315,153 | ) |
Debts falling due after 1 year | (3,302,184 | ) | 355,862 | (2,946,322 | ) |
(3,438,413 | ) | 176,938 | (3,261,475 | ) |
Total | (2,095,302 | ) | 1,078,121 | (1,017,181 | ) |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
1. | STATUTORY INFORMATION |
EDNS Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23; |
• | the requirement of paragraph 33.7; |
• | the requirements of paragraph 24(b) of IFRS 6. |
Basis of consolidation |
The group financial statements include the financial statements of the company and all its subsidiary undertakings. The consolidated financial statements are based on financial statements that are coterminous with those of the parent company and using the same accounting policies. |
A subsidiary is an entity that is controlled by the group. Control is the power to govern the financial and operating policies of an entity in order to gain the benefits from its activities and typically arises from owning in excess of 50% of the voting shares in an entity. |
All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill, being the amount paid in connection with acquisitions prior to merger is now fully amortised in the period. |
Tangible fixed assets |
Freehold property | - |
Fire safety equipment | - |
Fixtures and fittings | - |
Motor vehicles | - |
Office equipment | - |
Government grants |
Grants relating to revenue are recognised in profit and loss on a systematic basis over the periods. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
All of the company's financial assets and liabilities qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. |
Cash and cash equivalents include cash in hand and held with banks. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
All of the company's financial assets and liabilities qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. |
Cash and cash equivalents include cash in hand and held with banks. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was as follows: |
31.03.22 | 31.03.21 |
Admin Staff | 12 | 11 |
Management | 16 | 6 |
Teachers and hotel staff | 222 | 217 |
250 | 234 |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
31.3.22 | 31.3.21 |
£ | £ |
Directors' remuneration | 24,000 | 628,932 |
Directors' pension contributions to money purchase schemes | 3,624 | 3,623 |
4. | OPERATING PROFIT/(LOSS) |
The operating profit (2021 - operating loss) is stated after charging: |
31.3.22 | 31.3.21 |
£ | £ |
Other operating leases | 17,494 | 16,573 |
Depreciation - owned assets | 283,242 | 281,899 |
Audit fees | 28,000 | 32,800 |
5. | EXCEPTIONAL ITEMS |
31.3.22 | 31.3.21 |
£ | £ |
Profit/loss on sale of |
investment | (3 | ) | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.22 | 31.3.21 |
£ | £ |
Bank loan interest, fees and charges | 83,542 | 83,600 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
31.3.22 | 31.3.21 |
£ | £ |
Current tax: |
UK corporation tax | 195,874 | (13,168 | ) |
Tax on profit/(loss) | 195,874 | (13,168 | ) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.22 | 31.3.21 |
£ | £ |
Profit/(loss) before tax | 779,352 | (298,556 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
148,077 |
(56,726 |
) |
Effects of: |
Depreciation in excess of capital allowances | 47,797 | 43,558 |
Total tax charge/(credit) | 195,874 | (13,168 | ) |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
31.3.22 | 31.3.21 |
£ | £ |
Ordinary shares of £1 each |
Dividends | 300,000 | 20,000 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2021 | 132,767 |
Disposals | (132,767 | ) |
At 31 March 2022 | - |
AMORTISATION |
At 1 April 2021 | 132,767 |
Eliminated on disposal | (132,767 | ) |
At 31 March 2022 | - |
NET BOOK VALUE |
At 31 March 2022 | - |
At 31 March 2021 | - |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fire | Fixtures |
Freehold | safety | and |
property | equipment | fittings |
£ | £ | £ |
COST |
At 1 April 2021 | 9,757,292 | 50,044 | 540,535 |
Additions | - | 6,000 | 8,618 |
At 31 March 2022 | 9,757,292 | 56,044 | 549,153 |
DEPRECIATION |
At 1 April 2021 | 2,387,715 | 42,082 | 415,972 |
Charge for year | 251,865 | 2,792 | 22,050 |
At 31 March 2022 | 2,639,580 | 44,874 | 438,022 |
NET BOOK VALUE |
At 31 March 2022 | 7,117,712 | 11,170 | 111,131 |
At 31 March 2021 | 7,369,577 | 7,962 | 124,563 |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2021 | 29,794 | 129,350 | 10,507,015 |
Additions | - | 5,254 | 19,872 |
At 31 March 2022 | 29,794 | 134,604 | 10,526,887 |
DEPRECIATION |
At 1 April 2021 | 25,031 | 106,696 | 2,977,496 |
Charge for year | 953 | 5,582 | 283,242 |
At 31 March 2022 | 25,984 | 112,278 | 3,260,738 |
NET BOOK VALUE |
At 31 March 2022 | 3,810 | 22,326 | 7,266,149 |
At 31 March 2021 | 4,763 | 22,654 | 7,529,519 |
The freehold property for the Group is based on the purchase price of the properties. |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold |
property |
£ |
COST |
At 1 April 2021 |
and 31 March 2022 |
DEPRECIATION |
At 1 April 2021 |
Charge for year |
At 31 March 2022 |
NET BOOK VALUE |
At 31 March 2022 |
At 31 March 2021 |
The Cost for the company relating to Freehold property is based upon the market value at time of restructuring of the Group. |
12. | FIXED ASSET INVESTMENTS |
Group |
Investments |
£ |
COST |
At 1 April 2021 | 3 |
Disposals | (3 | ) |
At 31 March 2022 | - |
NET BOOK VALUE |
At 31 March 2022 | - |
At 31 March 2021 | 3 |
Company |
Investments |
£ |
COST |
At 1 April 2021 |
and 31 March 2022 |
NET BOOK VALUE |
At 31 March 2022 |
At 31 March 2021 |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Eveline Day Nursery Schools Ltd (The) |
Registered office: Corner Of Meadowsweet Close, Grand Drive, Raynes Park, London, England, SW20 9NA |
Nature of business: Nursery School |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Justin James Holdings Limited |
Registered office: Corner Of Meadowsweet Close, Grand Drive, Raynes Park, London, England, SW20 9NA |
Nature of business: Property |
% |
Class of shares: | holding |
Ordinary | 100.00 |
13. | STOCKS |
Group |
31.3.22 | 31.3.21 |
£ | £ |
Stocks | 2,600 | 2,600 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Other Debtors | 80,000 | 315,308 | - | - |
Directors loan account | 124,400 | - | - | - |
Tax | 13,168 | 22,146 |
Loan - Strathearn Properties Limited | 506,437 | 502,371 |
Prepayments | 18,260 | 27,303 |
Justin James Holdings Limited | 1,199 | - | - | - |
Eveline Day Nursery School Ltd | - | - | 237,763 | 112,519 |
743,464 | 867,128 |
Mr G J Jessiman and Mrs E M Drut, directors, hold all the issued share capital of Strathearn Properties Limited. |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 315,153 | 136,229 |
Trade creditors | 5,383 | 912 |
Tax | 195,889 | 14 |
Social security and other taxes | 168,806 | 140,977 |
VAT | 8,496 | 18,847 | - | - |
Deposits held & Fees received in advance | 632,033 | 566,791 |
Justin James Holdings Limited | - | - | 100 | 100 |
Amex credit card control | 11,272 | 2,023 | - | - |
Net wages control | - | 2,488 | - | - |
Directors' current account | 19,226 | 7,405 | 7,405 | 7,405 |
Accrued expenses | 571,986 | 466,028 |
1,928,244 | 1,341,714 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Bank loans (see note 17) | 2,946,322 | 3,302,184 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 315,153 | 136,229 |
Amounts falling due between one and two | years: |
Bank loans 1-2 years | 350,268 | 406,086 |
Amounts falling due between two and five | years: |
Bank loans 2-5 years | 1,050,805 | 1,029,320 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans over 5 years | 1,545,249 | 1,866,778 | 1,545,249 | 1,866,778 |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Bank loans | 3,261,475 | 3,438,413 |
The freehold properties have been provided as security against the bank loans.The loan interest charged on the loans ranges from 1.50% to 3.50% above the bank base rate. |
19. | PROVISIONS FOR LIABILITIES |
Group |
31.3.22 | 31.3.21 |
£ | £ |
Deferred tax | 18,463 | 18,463 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2021 | 18,463 |
Balance at 31 March 2022 | 18,463 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.22 | 31.3.21 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2021 | 5,079,000 |
Profit for the year | 583,478 |
Dividends | (300,000 | ) |
At 31 March 2022 | 5,362,478 |
EDNS GROUP LIMITED (REGISTERED NUMBER: 10698364) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
21. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 April 2021 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2022 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2022 and 31 March 2021: |
31.3.22 | 31.3.21 |
£ | £ |
E M Drut |
Balance outstanding at start of year | - | - |
Amounts advanced | 49,200 | - |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 49,200 | - |
G J A Jessiman |
Balance outstanding at start of year | - | - |
Amounts advanced | 75,200 | - |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 75,200 | - |
23. | RELATED PARTY DISCLOSURES |
During the year loan of £80,000 was given to family member that is related to G Jessiman. |
The company incurred cost of £67,110 that was to the family member of G. Jessiman. |
24. | ULTIMATE CONTROLLING PARTY |
There is no overall controlling party. |