Sussex Educare Limited - Period Ending 2022-08-31

Sussex Educare Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 7

Sussex Educare Limited

Company Information

Directors

G Baker D R Blackman

Company secretary

D R Blackman

Registered office

Boldings Academy Tylden House Dorking Road Warnham Nr. Horsham West Sussex RH12 3RZ

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Sussex Educare Limited

(Registration number: 07512318)
Balance Sheet as at 31 August 2022

	Note	2022 £	Unaudited 2021 £
Fixed assets
Tangible assets	6	1,202,802	1,209,804
Current assets
Debtors	7	20,247	18,082
Cash at bank and in hand		9,352	681
		29,599	18,763
Creditors: Amounts falling due within one year	8	(1,372,511)	(1,339,390)
Net current liabilities		(1,342,912)	(1,320,627)
Net liabilities		(140,110)	(110,823)
Capital and reserves
Called up share capital		1	1
Profit and loss account		(140,111)	(110,824)
Shareholders' deficit		(140,110)	(110,823)

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 2 August 2023 and signed on its behalf by:
 

D R Blackman
Company secretary and director

Sussex Educare Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

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:
Boldings Academy Tylden House
Dorking Road
Warnham
Nr. Horsham
West Sussex
RH12 3RZ
United Kingdom

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.

Going concern

Notwithstanding the net liability position shown on the balance sheet, the financial statements have been prepared on the going concern basis. The directors have considered the forecast cash flows and the cash requirements of the business in their assessment of going concern. As a result of this assessment it was concluded that the cash requirements of the business for the 12 months from signing will be met through a combination of operational cash flows and intergroup loans and thus the business is deemed to operate as a going concern.

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.
 

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Government grants

Government grants are recognised based on the accrual 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.

Sussex Educare Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Tangible assets

Tangible assets are stated in the statement of financial position 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, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold land and buildings	Nil
Plant and machinery	10% - 15% straight line
Fixtures, fittings and equipment	15% straight line

No depreciation is provided on freehold land and buildings as it is the company's policy to maintain these assets so that they keep their previously assessed standard of performance. As the useful economic lives of these assets are of such length and the residual values are such that they are not materially different from the carrying amount any depreciation would not be material.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or 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. Accounts payable 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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

Sussex Educare Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

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.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2021 - 2).

4

Auditors' remuneration

	2022 £	2021 £
Audit of the financial statements	2,400	-

Sussex Educare Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

 

5

Taxation

Deferred tax

Deferred tax assets and liabilities

2022	Liability £
Fixed asset timing differences	1,917
Losses and other deductions	(1,917)
	-

2021	Liability £
Fixed asset timing differences	2,845
Losses and other deductions	(2,845)
	-

The company has tax losses available to carry forward and offset against future profits of £149,068 (2021 - £122,996).

6

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost
At 1 September 2021	1,198,424	120,201	1,318,625
Additions	250	-	250
At 31 August 2022	1,198,674	120,201	1,318,875
Depreciation
At 1 September 2021	-	108,821	108,821
Charge for the year	-	7,252	7,252
At 31 August 2022	-	116,073	116,073
Carrying amount
At 31 August 2022	1,198,674	4,128	1,202,802
At 31 August 2021	1,198,424	11,380	1,209,804

Included within the net book value of land and buildings above is £1,198,674 (2021 - £1,198,424) in respect of freehold land and buildings.
 

Sussex Educare Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

7

Debtors

	2022  £	Unaudited 2021  £
Trade debtors	-	18,082
Prepayments	20,247	-
	20,247	18,082

8

Creditors

	Note	2022  £	Unaudited 2021  £
Due within one year
Trade creditors		3,624	6,584
Amounts due to related parties	9	1,273,889	1,237,499
Other creditors		60,952	60,952
Accrued expenses		34,046	34,355
		1,372,511	1,339,390

9

Related party transactions

Summary of transactions with other related parties

At the balance sheet date, the company owed £725,688 (2021 - £725,688) to the sole shareholder as a result of loans to the company and payments made on its behalf to assist with start-up costs. This loan is secured by way of a legal charge over the Freehold Property of the company.

At the balance sheet date, the company owed £460,244 (2021 - £445,144) to companies in which the shareholder has controlling interest as a result of short term working capital funding. The company also owed £87,957 (2021 - £66,667) to companies under common control. No interest is charged on these amounts.
 

10

Parent and ultimate parent undertaking

The ultimate parent is SHC Rapkyns Holdco Limited, incorporated in Jersey.

 The ultimate controlling party is Dr S H Sachedina by virtue of his majority shareholding.

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 Director's Report. Accordingly, the Independent Auditors' Report has also been omitted.

The Independent Auditor's Report was unqualified. The corresponding figures for the year ended 31 August 2021 shown in the financial statements are derived from the financial statements prepared for that year that were not audited. The name of the Senior Statutory Auditor who signed the audit report on 2 August 2023 was Stephanie Hayman, who signed for and on behalf of Hazlewoods LLP.