Reflections Nurseries Ltd - Period Ending 2021-08-31

Reflections Nurseries Ltd

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Reflections Nurseries Ltd

Company Information

Directors

A N Hassan J A Pickles

Registered office

5th Floor South 14-16 Waterloo Place London SW1Y 4AR

Bankers

HSBC Bank PLC 60 Queen Victoria Street London EC4N 4TR

Auditors

Grant Thornton UK LLP 3 Callaghan Square Cardiff CF10 5BT

Reflections Nurseries Ltd

(Registration number: 05559172)
Balance Sheet as at 31 August 2021

	Note	2021  £	2020  £
Fixed assets
Tangible assets	5	2,048,570	2,042,957
		2,048,570	2,042,957
Current assets
Debtors	6	1,433,479	857,046
Cash at bank and in hand		230,521	307,015
		1,664,000	1,164,061
Creditors: Amounts falling due within one year	7	(263,385)	(389,927)
Net current assets		1,400,615	774,134
Net assets		3,449,185	2,817,091
Capital and reserves
Called up share capital	8	1,100	1,100
Profit and loss account		3,448,085	2,815,991
Total equity		3,449,185	2,817,091

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 22 February 2022 and signed on its behalf by:
 

J A Pickles
Director

Reflections Nurseries Ltd

Notes to the Financial Statements for the Year Ended 31 August 2021

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
5th Floor South
14-16 Waterloo Place
London
SW1Y 4AR

2

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.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Name of parent of group
The parent of the smallest group in which these financial statements are consolidated is Dukes Education Holdings Limited (these accounts are non statutory consolidated accounts, and are unaudited). The parent of the largest group in which these financial statements are consolidated is Grove Education Partners Midco Limited. The financial statements of both companies are available on request from the registered office.

Going concern

The company meets its day-to-day working capital requirements through the use of the group’s bank facilities. The current demand for the educational services offered by the company continue to remain strong. The company’s forecasts and projections, taking account of reasonable fluctuations in student numbers and expected demand for its educational services, show that the company should be able to operate within the level of the group’s cash reserves and bank facilities. After making enquiries, 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.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Depreciation
Tangible assets are depreciated over their useful lives by taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.
 

Reflections Nurseries Ltd

Notes to the Financial Statements for the Year Ended 31 August 2021

Revenue recognition

Revenue represents amounts receivable for nursery fees, events, and other services delivered during the year.

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.

Nursery fees are recognised on a straight line basis over the academic year (1 September to 31 August) to which they relate. Revenue for events or other services is recognised when the event has taken place or the service has been delivered.

Revenue is measured at the fair value of the consideration received or receivable, net of any rebates or
discounts.

Government grants

Government grants are recognised based on the accruals model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

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 company 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 financial statements and on unused tax losses or tax credits in the company. 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.

Individual freehold properties are carried at current year fair value. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance Sheet date.

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in the Statement of Comprehensive Income unless losses exceed the previously recognised gain or reflect a clear consumption of economic benefits, in which case losses are recognised in profit or loss.

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
Land and buildings	No depreciation charged.

Reflections Nurseries Ltd

Notes to the Financial Statements for the Year Ended 31 August 2021

Motor vehicles	5 years straight line
Furniture, fittings and equipment	3 - 5 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade 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 company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company 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.

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 company 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.

Reflections Nurseries Ltd

Notes to the Financial Statements for the Year Ended 31 August 2021

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.

 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.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2021  No.	2020  No.
Average number of employees	78	83

4

Intangible assets

Reflections Nurseries Ltd

Notes to the Financial Statements for the Year Ended 31 August 2021

	Goodwill  £
Cost
At 1 September 2020 and at 31 August 2021	225,000
Amortisation
At 1 September 2020 and at 31 August 2021	225,000
Carrying amount
At 31 August 2020 and at 31 August 2021	-

Reflections Nurseries Ltd

Notes to the Financial Statements for the Year Ended 31 August 2021

5

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 September 2020	2,000,000	298,820	37,055	2,335,875
Additions	9,451	11,925	-	21,376
At 31 August 2021	2,009,451	310,745	37,055	2,357,251
Depreciation
At 1 September 2020	-	275,035	17,883	292,918
Charge for the year	-	9,094	6,669	15,763
At 31 August 2021	-	284,129	24,552	308,681
Carrying amount
At 31 August 2021	2,009,451	26,616	12,503	2,048,570
At 31 August 2020	2,000,000	23,785	19,172	2,042,957

Revaluation

The fair value of the company's land and buildings was revalued on 26 June 2019 by an independent valuer. The valuation was completed on a market value with vacant possession basis. The name and qualification of the independent valuer are Pinders Professional & Consultancy Services (RICS accredited). Had this class of asset been measured on a historical cost basis, the carrying amount would have been £2,216,191 (2020 - £2,206,740).

6

Debtors

	2021  £	2020  £
Amounts owed by group undertakings	1,420,491	662,896
Other debtors	938	186,971
Deferred tax assets	11,054	7,179
Corporation tax asset	996	-
	1,433,479	857,046

7

Creditors

	2021  £	2020  £
Due within one year
Trade creditors	89,783	20,989
Social security and other taxes	13,591	9,210
Other creditors	55,355	62,441
Accrued expenses	13,590	37,384
Corporation tax liability	-	95,767
Deferred income	91,066	164,136
	263,385	389,927

Reflections Nurseries Ltd

Notes to the Financial Statements for the Year Ended 31 August 2021

8

Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary A shares of £1 each	100	100	100	100
Ordinary shares of £1 each	1,000	1,000	1,000	1,000
	1,100	1,100	1,100	1,100

Rights, preferences and restrictions

Ordinary A shares have rights to dividends only. These shares have no voting rights and no rights on winding up.

9

Contingent liabilities

The company is bound by an intra-group cross guarantee in respect of bank debt with other members of the group headed by Dukes Education Group Limited. The amount guaranteed as at 31 August 2021 was £154,000,000 (2020 - £110,000,000). Post year end the group has refinanced its bank debt and the amount guaranteed at the signing date of these accounts is £208,372,899.

10

Parent and ultimate parent undertaking

The company's immediate parent is Little Dukes Limited, incorporated in England and Wales.

 The ultimate parent is Grove Education Partners Holdco Limited, incorporated in Guernsey. This company is considered to have no single controlling party.

11

Disclosure under Section 444(5B) CA 2006 relating to the independent auditor's report

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. Accordingly, the Independent Auditors’ Report has also been omitted.

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 22 February 2022 was Rhian Owen, who signed for and on behalf of Grant Thornton UK LLP.