Eagle House Group Limited - Period Ending 2020-08-31
Eagle House Group Limited - Period Ending 2020-08-31
Registration number:
for the
Year Ended
Eagle House Group Limited
Contents
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Company Information |
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Directors' Report |
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Strategic Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Consolidated Statement of Financial Position |
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Balance Sheet |
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Consolidated Statement of Financial Position |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Eagle House Group Limited
Company Information
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Directors |
P A Conrathe J M Conrathe |
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Registered office |
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Bankers |
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Auditors |
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Eagle House Group Limited
Directors' Report for the Year Ended 31 August 2020
The directors present their report and the for the year ended 31 August 2020.
Directors of the company
The directors who held office during the year were as follows:
Future developments
The external environment is expected to remain competitive going forward, however the directors remain confident that the group will improve on its current level of performance in the future.
The spread of the COVID-19 presents a significant risk to the UK economy. Our income line remains resilient to the impact of the virus and the business has coped well with its consequences. Staff teams have worked diligently to government guidance, supported each other, and have kept pupils safe and secure.
Disclosure of information to the auditor
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
.........................................
Director
Eagle House Group Limited
Strategic Report for the Year Ended 31 August 2020
The directors present their strategic report for the year ended 31 August 2020.
Principal activity
The principal activity of the group is the provision of care and special educational needs for children with autistic spectrum disorders.
Fair review of the business
The results for the year, which are set out in the profit and loss account, show an operating profit of £1,406,735 (2019 - operating loss of £965,897). The directors consider the financial performance during the year and the financial position of the group and company at the year end to be satisfactory.
Given the nature of the business, the group's directors are of the opinion that key performance indicators are important. The group uses a number of indicators to monitor and improve development, performance or the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. The directors do not consider the inclusion of an analysis using key performance indicators to be necessary to assist users of the financial statements in their understanding of the financial performance or position of the group.
Principal risks and uncertainties
The management of the business and the execution of the group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to the continued provision of adequate government funding and the ongoing compliance with current and future legislation affecting the sector.
Financial instruments
Objectives and policies
The group is exposed to the usual credit and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that price and liquidity risks are minimised by the predetermination of the group funding facilities and terms. The board monitors the group's trading results with a view to ensuring that the group can meet its future obligations as they fall due.
Price risk, credit risk, liquidity risk and cash flow risk
The business’ principal financial instruments comprise bank balances, bank overdrafts and loans, trade debtors, trade creditors and related party 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 through the use of overdrafts at floating rates of interest. All of the business’ cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.
Bank loans and overdrafts are subject to price and liquidity risk as disclosed in note 15 to the financial statements.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Loans comprise loans from the directors and from financial institutions. The interest rate and monthly repayments on the loans from financial institutions are variable. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments and manages the price risk using the interest rate swap agreements as disclosed in the notes to the financial statements.
The group has sufficient financial resources available and the subsidiaries are expected to trade profitably generating cash. The directors have prepared forecasts for the next 12 months that indicate that the group has sufficient resources available to trade as a going concern. The directors, therefore, have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.
Eagle House Group Limited
Strategic Report for the Year Ended 31 August 2020
Approved by the
.........................................
Director
Eagle House Group Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report, Strategic Report 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 group and the company 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Eagle House Group Limited
Independent Auditor's Report to the Members of Eagle House Group Limited
Opinion
We have audited the financial statements of Eagle House Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2020, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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 the parent company's affairs as at 31 August 2020 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 Auditor’s 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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• |
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
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• |
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
Eagle House Group Limited
Independent Auditor's Report to the Members of Eagle House Group Limited
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 Strategic Report and the Directors' Report.
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 5, 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 is 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.
Auditor’s 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 an auditor’s report 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.
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 auditor's report.
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 an auditor’s report 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
Windsor House
Bayshill Road
GL50 3AT
Eagle House Group Limited
Consolidated Profit and Loss Account for the Year Ended 31 August 2020
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Note |
2020 |
2019 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
|
|
|
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Administrative expenses |
(3,342,227) |
(3,205,426) |
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|
Exceptional costs |
(20,029) |
(80,715) |
|
|
Other operating income |
|
- |
|
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Operating profit |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
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The above results were derived from continuing operations.
The group has no other comprehensive income for the year.
Eagle House Group Limited
(Registration number: 06201243)
Consolidated Balance Sheet as at 31 August 2020
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Note |
2020 |
2019 |
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Fixed assets |
|||
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Intangible assets |
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Tangible assets |
|
|
|
|
|
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||
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Current assets |
|||
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Debtors |
|
|
|
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Cash at bank and in hand |
828,988 |
580 |
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|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
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|
|
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Provisions for liabilities |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
|
|
|
|
Retained earnings |
( |
( |
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|
Total equity |
( |
( |
|
|
Total capital, reserves and long term liabilities |
97,226 |
163,791 |
Approved and authorised by the
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......................................... |
Eagle House Group Limited
(Registration number: 06201243)
BALANCE SHEET as at 31 August 2020
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Note |
2020 |
2019 |
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|
Fixed assets |
|||
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Tangible assets |
1,974,465 |
1,987,717 |
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Investments |
|
|
|
|
|
|
||
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Current assets |
|||
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Debtors |
5,862 |
3,819 |
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Cash at bank and in hand |
|
|
|
|
6,045 |
4,399 |
||
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Creditors: Amounts falling due within one year |
(1,041,468) |
(193,682) |
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Net current liabilities |
(1,035,423) |
(189,283) |
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Total assets less current liabilities |
939,046 |
1,798,438 |
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Creditors: Amounts falling due after more than one year |
4,925,191 |
5,557,104 |
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Provisions for liabilities |
29,792 |
17,267 |
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|
Capital and reserves |
|||
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Called up share capital |
|
|
|
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Retained earnings |
(4,016,537) |
(3,776,533) |
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Total equity |
(4,015,937) |
(3,775,933) |
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Total capital, reserves and long term liabilities |
939,046 |
1,798,438 |
The company made a loss after tax for the financial year of £240,004 (2019 - loss of £199,636).
Approved and authorised by the
.........................................
P A Conrathe
Director
Eagle House Group Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 August 2020
|
Share capital |
Retained earnings |
Total |
|
|
At 1 September 2019 |
|
( |
( |
|
Profit for the year |
- |
|
|
|
At 31 August 2020 |
|
( |
( |
|
Share capital |
Retained earnings |
Total |
|
|
At 1 September 2018 |
|
( |
( |
|
Profit for the year |
- |
|
|
|
At 31 August 2019 |
|
( |
( |
Eagle House Group Limited
Statement of Changes in Equity for the Year Ended 31 August 2020
|
Share capital |
Retained earnings |
Total |
|
|
At 1 September 2019 |
|
( |
( |
|
Loss for the year |
- |
( |
(240,004) |
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At 31 August 2020 |
|
( |
( |
|
Share capital |
Retained earnings |
Total |
|
|
At 1 September 2018 |
|
( |
( |
|
Loss for the year |
- |
( |
(199,636) |
|
At 31 August 2019 |
|
( |
( |
Eagle House Group Limited
Consolidated Statement of Cash Flows for the Year Ended 31 August 2020
|
Note |
2020 |
2019 |
|
|
Cash flows from operating activities |
|||
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Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Finance costs |
|
|
|
|
Corporation tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Increase in trade and other receivables |
( |
( |
|
|
Decrease in trade and other payables |
( |
( |
|
|
Cash generated from operations |
|
|
|
|
Corporation taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
|
|
Cash flows from financing activities |
|||
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Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase in cash and cash equivalents |
|
|
|
|
Cash and cash equivalents at 1 September |
(118,410) |
(409,511) |
|
|
Cash and cash equivalents at 31 August |
828,988 |
(118,410) |
|
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
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General information |
The company is a private company limited by share capital, incorporated and domiciled in England and Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 August 2020.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
No profit and loss account is presented for the company as permitted by section 408 of the Companies Act 2006.
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
Judgements and estimation uncertainty
These financial statements do not contain any significant judgements or estimation uncertainty. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Leasehold property |
1.25% - 4% straight line |
|
Fixtures and fittings |
20 - 50% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
13 years straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial instruments (continued)
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
|
Revenue |
The total turnover of the group has been derived from its principal activity wholly undertaken in the United Kingdom.
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2020 |
2019 |
|
|
Management charges receivable |
129,893 |
- |
|
Operating profit |
Arrived at after charging
|
2020 |
2019 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Auditor's remuneration - The audit of the company's annual accounts |
8,200 |
5,700 |
|
Exceptional items |
|
2020 |
2019 |
|
|
Exceptional costs |
20,029 |
80,715 |
Exceptional costs in the current and prior year relate to the provision against a related party loan.
|
Interest payable and similar expenses |
|
2020 |
2019 |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest on bank loans |
|
|
|
Other finance costs |
- |
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2020 |
2019 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
|
2020 |
2019 |
|
|
Administration and support |
|
|
|
Education |
|
|
|
|
|
|
Auditors' remuneration |
|
2020 |
2019 |
|
|
Audit of these financial statements |
8,200 |
5,700 |
|
Taxation |
Tax charged in the profit and loss account
|
2020 |
2019 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
- |
|
|
316,240 |
249,499 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2019 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2020 |
2019 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
- |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Total tax charge |
|
|
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
Deferred tax
Group
Deferred tax assets and liabilities
|
2020 |
Liability |
|
Fixed asset timing differences |
|
|
2019 |
Liability |
|
Fixed asset timing differences |
|
Company
Deferred tax assets and liabilities
|
2020 |
Liability |
|
Fixed asset timing differences |
|
|
2019 |
Liability |
|
Fixed asset timing differences |
|
|
Intangible assets |
Group
|
Goodwill |
|
|
Cost |
|
|
At 1 September 2019 and at 31 August 2019 |
|
|
Amortisation |
|
|
At 1 September 2019 |
|
|
Charge for the year |
|
|
At 31 August 2020 |
|
|
Carrying amount |
|
|
At 31 August 2020 |
|
|
At 31 August 2019 |
|
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
|
Tangible assets |
Group
|
Leasehold property |
Furniture, fittings and equipment |
Total |
|
|
Cost |
|||
|
At 1 September 2019 |
|
|
|
|
Additions |
|
|
|
|
At 31 August 2020 |
|
|
|
|
Depreciation |
|||
|
At 1 September 2019 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 August 2020 |
|
|
|
|
Carrying amount |
|||
|
At 31 August 2020 |
|
|
|
|
At 31 August 2019 |
|
|
|
Company
|
Leasehold property |
|
|
Cost |
|
|
At 1 September 2019 |
|
|
Additions |
|
|
At 31 August 2020 |
|
|
Depreciation |
|
|
At 1 September 2019 |
|
|
Charge for the year |
|
|
At 31 August 2020 |
|
|
Carrying amount |
|
|
At 31 August 2020 |
|
|
At 31 August 2019 |
|
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
|
Investments |
Company
|
2020 |
2019 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost and carrying amount |
|
|
At 1 September 2019 and as at 31 August 2020 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2020 |
2019 |
|||
|
Subsidiary undertakings |
||||
|
|
Ordinary |
|
|
|
|
England and Wales |
||||
|
|
Ordinary |
|
|
|
|
England and Wales |
||||
|
|
Ordinary |
|
|
|
|
England and Wales |
||||
|
|
Ordinary |
|
|
|
|
England and Wales |
||||
The principal activity of Eagle House (Mitcham) Limited is that of a senior school.
The Little Group Early Years Centre Limited, Eagle House (Wellbeck) Limited and Eagle House (Stowford) Limited were previously dormant companies and were dissolved during the year.
|
Debtors |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Trade debtors |
|
|
- |
- |
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
|
|
|
|
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
|
Creditors |
|
Group |
Company |
||||
|
Note |
2020 |
2019 |
2020 |
2019 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
|
Other creditors |
|
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
Corporation tax liability |
567,041 |
252,567 |
- |
- |
|
|
Deferred income and fee deposits |
|
|
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
|
|
|
Amounts owed to group undertakings |
- |
- |
4,925,191 |
4,549,904 |
|
|
287,281 |
1,405,867 |
4,925,191 |
5,557,104 |
||
The bank overdrafts are secured by a mortgage debenture over the assets of the group companies.
The bank loans are all due within 5 years and are secured by a mortgage debenture over the assets of the group. Interest is payable on the bank loans at a rate of 3% above LIBOR and capital repayments are made quarterly.
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
|
Loans and borrowings |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Current loans and borrowings |
||||
|
Bank borrowings |
|
|
|
|
|
Bank overdrafts |
- |
118,990 |
- |
- |
|
|
|
|
|
|
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Non-current loans and borrowings |
||||
|
Bank borrowings |
- |
|
- |
|
|
Other borrowings |
|
|
- |
- |
|
|
|
- |
|
|
Other loans are unsecured and are owed to related parties, as disclosed in note 20 to the financial statements.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme for some of its employees. Certain other of company's employees belong to the Teacher's Pension Scheme for England and Wales (TPS) which is a defined benefit scheme. Under the definition set out in the Financial Reporting Standard (FRS102) Retirement Benefits, the TPS is a multi-employer pension scheme. The company is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the company has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as it were a defined benefit scheme.
The total pension cost charge for both schemes represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
|
Share capital |
Allotted, called up and fully paid shares
|
2020 |
2019 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
285 |
|
285 |
|
|
|
285 |
|
285 |
|
|
|
30 |
|
30 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
The 'A' and 'B' ordinary shares rank pari passu in all respects, other than dividend rights. The 'C' ordinary shares carry no voting rights. |
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2020 |
2019 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
Company
Operating leases
The total of future minimum lease payments is as follows:
|
2020 |
2019 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Eagle House Group Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
|
Related party transactions |
During the year the company made the following related party transactions:
Group
At 31 August 2020, the group owed £1,667,721 (2019 - £2,114,267) to Eagle House School (Mitcham) LLP, a limited liability partnership of which P Conrathe is a designated member. The loan is interest free and there are no fixed repayment terms.
During previous years and in the current year, Eagle House (Mitcham) Limited advanced loans to Enabling Opportunity FZ LLC (a company registered in Dubai and controlled by Mr P Conrathe). At the balance sheet date, £1,018,877 (2019 - £998,848) was still outstanding and a provision of £998,848 (2019 - £998,848) has been made against the balance. The loan is interest free with no fixed repayment terms.
Included in other loans due after more than one year is an amount of £287,281 (2019 - £398,667) owed to Mr and Mrs M Conrathe (parents of Mr P Conrathe). Interest of £6,008 (2019 - £7,402) was accrued in the year in respect of the loan, at a commercial rate.
|
Parent and ultimate parent undertaking |
The company is controlled by