Calcot Services For Children Limited - Limited company accounts 20.1
Calcot Services For Children Limited - Limited company accounts 20.1
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| FOR |
| CALCOT SERVICES FOR CHILDREN LIMITED |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Statement of Comprehensive Income | 10 |
| Balance Sheet | 11 |
| Statement of Changes in Equity | 12 |
| Cash Flow Statement | 13 |
| Notes to the Cash Flow Statement | 14 |
| Notes to the Financial Statements | 16 |
| CALCOT SERVICES FOR CHILDREN LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditors |
| Advantage |
| 87 Castle Street |
| Reading |
| Berkshire |
| RG1 7SN |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| The directors present their strategic report for the year ended 31 March 2021. |
| The journey of Calcot Services for Children began 30 years ago with a simple ethos 'to provide children and young people in care with safe and nurturing homes in which they can heal from the trauma caused by abuse'. |
| We now have homes and schools in Berkshire, Hampshire, South Oxfordshire and Buckinghamshire. |
| Over the last 30 years we have worked tirelessly to develop our service to achieve placement goals and the best possible outcomes for our children and young people and these have been recognised and celebrated by placing authorities, Ofsted, their families, external agencies, awarding bodies and within the sector. |
| Our service has flourished over the last few years as demand for care and education continued to grow. We have been very careful in considering our development ensuring that our high standards are not compromised. |
| REVIEW OF BUSINESS |
| The Directors are pleased to report a turnover of £13m (2020 - £10.7m) and a gross profit of £6.2m (2020 - £3.8m). |
| As a result of another very strong year, the company has seen its reserves increase from £5.6m to £7.7m. |
| Future plans |
| The plans for future growth include expanding our therapeutic services to include equine therapy, agricultural activities and extending our workshops to enhance our educational provision. |
| We will also continue to grow our therapeutic community with an organic and measured strategy enabling the professional development of our team. |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Financial risks |
| The company's activities expose it to a number of financial risks including credit risk and liquidity risk. |
| Credit risk |
| The company's principal financial assets are bank balances, trade and other receivables. |
| The company credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables, estimated by the company's management based on prior experience and their assessment of the current economic climate. |
| The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings. |
| Liquidity risk |
| The company has continued to maintain liquidity and sufficient working capital for its ongoing operations and future developments. |
| Operational risks |
| The company's activities expose it to a number of operational risks including reputational risk and regulatory risk. |
| Reputational risk |
| The company is focused on providing care to children with emotional, learning, social and behavioural difficulties. Any serious incident relating to the provision of care services could result in negative publicity and may result in an increase in scrutiny from regulators. |
| In order to mitigate this risk the company delivers employee training through specific learning and development programmes, in additional the company carries out a Disclosure and Barring Service check on all care staff and constantly monitors compliance. |
| Regulatory risk |
| The company's operations are are subject to an increasingly high level of regulation and scrutiny by various regulators in the UK. Failure to meet national regulations could lead to a service being placed under special measures, being subject to enforcement notices or possibly forced to close. The CQC also have the power to issue fines and prosecute. |
| In order to mitigate this risk the company has a dedicated compliance department that manages regulatory matters. |
| KEY PERFORMANCE INDICATORS |
| The company considers turnover and gross profit to be the key indicators of its performance. |
| ON BEHALF OF THE BOARD: |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| The directors present their report with the financial statements of the company for the year ended 31 March 2021. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of the provision of residential care homes for children and young adults. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31 March 2021 will be £1,508,877. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2020 to the date of this report. |
| POLITICAL DONATIONS AND EXPENDITURE |
| There have been no political donations during the year. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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 company's auditors are aware of that information. |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| AUDITORS |
| The auditors, Haines Watts, 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 |
| CALCOT SERVICES FOR CHILDREN LIMITED |
| Opinion |
| We have audited the financial statements of Calcot Services For Children Limited (the 'company') for the year ended 31 March 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 2021 and of its 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 company 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 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. |
| However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed in the accounting policy note on Going Concern. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| CALCOT SERVICES FOR CHILDREN LIMITED |
| 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the 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 four, 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 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 company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| CALCOT SERVICES FOR CHILDREN LIMITED |
| 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 framework applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS102 - the Financial Reporting Standard applicable in the UK & The Republic of Ireland, the Companies Act 2006 and relevant tax compliance regulations in the UK, in addition the Company must comply with the Care Quality Commission regulations and Ofsted. |
| We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where management considered there was susceptibility to fraud. Audit procedures performed by the audit team included: |
| - Challenging assumptions and judgements made by management in its significant accounting estimates; |
| - Identifying and testing journal entries, with a focus on entries made with unusual accounting combinations; |
| - Confirming with management whether they have knowledge of any actual, suspected or illegal fraud; |
| - Evaluating whether there was evidence of bias by management that represents a risk of material misstatement due to fraud. |
| These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
| Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance will all laws and regulations. |
| 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 |
| CALCOT SERVICES FOR CHILDREN 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 |
| Chartered Accountants and Statutory Auditors |
| Advantage |
| 87 Castle Street |
| Reading |
| Berkshire |
| RG1 7SN |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| STATEMENT OF COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales |
| GROSS PROFIT |
| Administrative expenses |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| 4,518,925 | 4,289,347 |
| Interest payable and similar expenses | 6 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 7 |
| PROFIT FOR THE FINANCIAL YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| BALANCE SHEET |
| 31 MARCH 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 |
| CURRENT ASSETS |
| Debtors | 10 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 11 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
12 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 17 |
| Retained earnings | 18 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 April 2019 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2020 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2021 |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| Capital movement on loans | ( |
) | ( |
) |
| Amount withdrawn by directors | (1,500,000 | ) | - |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Increase in cash and cash equivalents |
| Cash and cash equivalents at beginning of year |
2 |
2,834,915 |
1,181,249 |
| Cash and cash equivalents at end of year |
2 |
3,507,251 |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
| 2021 | 2020 |
| £ | £ |
| Profit for the financial year |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) |
| Finance costs | 66,097 | 88,426 |
| Finance income | (32,999 | ) | (30,732 | ) |
| Taxation |
| 4,653,301 | 4,450,097 |
| Decrease/(increase) in trade and other debtors | ( |
) |
| (Decrease)/increase in trade and other creditors | ( |
) |
| Cash generated from operations |
| 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 2021 |
| 31/3/21 | 1/4/20 |
| £ | £ |
| Cash and cash equivalents | 3,507,251 | 2,837,723 |
| Bank overdrafts | ( |
) |
| 3,507,251 | 2,834,915 |
| Year ended 31 March 2020 |
| 31/3/20 | 1/4/19 |
| £ | £ |
| Cash and cash equivalents | 2,837,723 | 1,181,249 |
| Bank overdrafts | ( |
) |
| 2,834,915 | 1,181,249 |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1/4/20 | Cash flow | At 31/3/21 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 2,837,723 | 669,528 | 3,507,251 |
| Bank overdrafts | (2,808 | ) | 2,808 | - |
| 2,834,915 | 3,507,251 |
| Debt |
| Debts falling due within 1 year | (1,621,370 | ) | 120,773 | (1,500,597 | ) |
| Debts falling due after 1 year | (1,237,518 | ) | 79,368 | (1,158,150 | ) |
| (2,858,888 | ) | 200,141 | (2,658,747 | ) |
| Total | (23,973 | ) | 872,477 | 848,504 |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 1. | STATUTORY INFORMATION |
| Calcot Services For Children Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Going Concern |
| The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
| Revenue |
| 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: |
| Sale of goods |
| Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
| - the Company has transferred the significant risks and rewards of ownership to the buyer; |
| - the Company retains neither continuing managerial involvement to the degree usually |
| associated with ownership nor effective control over the goods sold; |
| - the amount of revenue can be measured reliably; |
| - it is probable that the Company will receive the consideration due under the transaction; and |
| - the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
| 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. |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| 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. |
| Land is not depreciated. Depreciation on other assets 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: |
| Freehold property | - | 50 years |
| Leasehold improvements | - | 10 years |
| Vehicles | - | 10 years |
| Fixtures and fittings | - | 4 years |
| Office equipment | - | 4 years |
| 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 the Statement of comprehensive income. |
| Debtors |
| Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
| Cash and cash equivalents |
| Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are 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. |
| Financial instruments |
| 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 non-puttable ordinary shares. |
| Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Creditors |
| Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
| Finance costs |
| Finance costs are charged to the Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
| Dividends |
| Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
| Operating leases |
| Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
| Pensions - Defined contribution |
| 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 the Statement of comprehensive income 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. |
| Interest income |
| Interest income is recognised in the Statement of comprehensive income using the effective interest method. |
| Provisions for liabilities |
| Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
| Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
| When payments are eventually made, they are charged to the provision carried in the Balance sheet. |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
| The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. |
| Deferred tax |
| Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that: |
| - The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
| - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
| Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| 2021 | 2020 |
| £ | £ |
| 4. | EMPLOYEES AND DIRECTORS |
| 2021 | 2020 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2021 | 2020 |
| Admin | 8 | 10 |
| Care | 130 | 125 |
| Education | 24 | 20 |
| Maintenance | 4 | 2 |
| Management | 28 | 18 |
| 2021 | 2020 |
| £ | £ |
| Directors' remuneration |
| Information regarding the highest paid director for the year ended 31 March 2021 is as follows: |
| 2021 |
| £ |
| Emoluments etc |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 2021 | 2020 |
| £ | £ |
| Motor vehicle leasing (operational) |
| Depreciation - owned assets |
| Loss on disposal of fixed assets |
| Auditors' remuneration |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2021 | 2020 |
| £ | £ |
| Mortgage interest payable |
| Interest payable |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2021 | 2020 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Prior year underprovision | (95 | ) | 38 |
| Total current tax |
| Deferred tax |
| Tax on profit |
| UK corporation tax has been charged at 19% (2020 - 19%). |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2021 | 2020 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Adjustments to tax charge in respect of previous periods | ( |
) |
| Deferred tax | 30,431 | 32,323 |
| Total tax charge | 845,156 | 824,718 |
| The Finance (No.2) Act 2015 reduced the main rate of UK corporation tax to 19%, effective from 1 April 2017. A further reduction in the UK corporation tax rate to 17% was expected to come into effect from 1 April 2020 (as enacted by Finance Act 2016 on 15 September 2016). |
| However, legislation introduced in the Finance Act 2020 (enacted on 22 July 2020) repealed the reduction of the corporation tax, thereby maintaining the current rate of 19%. Deferred taxes on the balance sheet have been measured at 19% (2019 - 17%) which represents the future corporation tax rate that was enacted at the balance sheet date. |
| The UK Budget 2021 announcements on 3 March 2021 included measures to support economic recovery as a result of the ongoing COVID-19 pandemic. These included an increase to the UK's main corporation tax rate to 25%, which is due to be effective from 1 April 2023. These changes were not substantively enacted at the balance sheet date and hence have not been reflected in the measurement of deferred tax balances at the period end. It is not anticipated that these changes will have a material impact on the company's deferred tax balances |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 8. | DIVIDENDS |
| 2021 | 2020 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| 9. | TANGIBLE FIXED ASSETS |
| Improvements |
| Freehold | to |
| property | property | Vehicles |
| £ | £ | £ |
| COST |
| At 1 April 2020 |
| Additions |
| Disposals | ( |
) |
| Reclassification | ( |
) |
| At 31 March 2021 |
| DEPRECIATION |
| At 1 April 2020 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| Reclassification | ( |
) |
| At 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 9. | TANGIBLE FIXED ASSETS - continued |
| Fixtures |
| and | Office |
| fittings | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 April 2020 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| Reclassification |
| At 31 March 2021 |
| DEPRECIATION |
| At 1 April 2020 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| Reclassification |
| At 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| 10. | DEBTORS |
| 2021 | 2020 |
| £ | £ |
| Amounts falling due within one year: |
| Trade debtors |
| Other debtors |
| Directors' loan accounts | 1,500,000 | - |
| Prepayments and accrued income |
| Amounts falling due after more than one year: |
| Other debtors |
| Aggregate amounts |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Bank loans and overdrafts (see note 13) |
| Trade creditors |
| Tax |
| Social security and other taxes |
| Other creditors |
| Accruals and deferred income |
| 12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Bank loans (see note 13) |
| 13. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2021 | 2020 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank overdrafts |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more 5 yr by instal | 832,054 | 914,941 |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2021 | 2020 |
| £ | £ |
| Within one year | 209,911 | 108,651 |
| Between one and five years | 389,776 | 81,890 |
| 599,687 | 190,541 |
| 15. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2021 | 2020 |
| £ | £ |
| Bank loans |
| The Company's bank loans are secured on its freehold premises, which are used as both an educational establishment as well as a care facility. |
| 16. | PROVISIONS FOR LIABILITIES |
| 2021 | 2020 |
| £ | £ |
| Deferred tax | 136,202 | 105,771 |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2020 |
| Provided during year |
| Balance at 31 March 2021 |
| 17. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2021 | 2020 |
| value: | £ | £ |
| Ordinary | £1 | 2 | 2 |
| CALCOT SERVICES FOR CHILDREN LIMITED (REGISTERED NUMBER: 05957737) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 18. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 April 2020 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 March 2021 |
| 19. | PENSION COMMITMENTS |
| The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. |
| The pension cost charge represents contributions payable by the Company to the fund and amounted to £98,985 (2020 - £79,196). Contributions totalling £18,737 (2020 - £17,659) were payable to the fund at the balance sheet date and are included in creditors. |
| 20. | CONTINGENT LIABILITIES |
| During the year the Company provided a cross guarantee to Calcot Services for Children (Assessments) Limited. |
| 21. | CONTROLLING PARTY |
| The Company was under the control of the directors throughout the current and previous years. |