The New Model School Company Ltd. - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 04892739 (England and Wales)

THE NEW MODEL SCHOOL COMPANY LTD.

Unaudited Financial Statements for the Year Ended 31 August 2023

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

to

7

Directors:

R S Broadhurst

N A Crean

R Funnell

D C F Jones

D J Livsey

X N C Villers

A L Cornforth

Registered office:

Maple Walk School

62a Crownhill Road

London

NW10 4EB

Registered number:

04892739 (England and Wales)

Accountants:

Cooper Parry Advisory Limited

CUBO Birmingham

Office 401, 4th Floor

Two Chamberlain Square

Birmingham

West Midlands

B3 3AX

Fixed assets

Tangible assets

4

212,454

120,038

Current assets

Debtors

5

298,554

212,135

Cash at bank

2,513,074

2,291,235

2,811,628

2,503,370

Creditors

Amounts falling due within one year

6

2,260,489

1,958,424

Net current assets

551,139

544,946

Total assets less current liabilities

763,593

664,984

Creditors

Amounts falling due after more than one year

7

-

(5,000

)

Provisions for liabilities

9

(32,324

)

(12,315

)

Net assets

731,269

647,669

Capital and reserves

Called up share capital

10

501,057

501,057

Capital redemption reserve

5,000

-

Retained earnings

225,212

146,612

Shareholders' funds

731,269

647,669

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 November 2023 and were signed on its behalf by:

D J Livsey - Director

1.	Statutory information

The New Model School Company Ltd. is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going Concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable.

The majority of the Company's revenue is derived from tuition fees, together with fees for ancillary education-related services. The Company's performance obligations in respect of these revenue streams are delivered evenly over time, typically a school term or an academic year, and so revenue is recognised on this basis with fees initially recognised as deferred income and then transferred to the statement of comprehensive income over the period of time to which the fees relate.

Certain revenue streams, including registration fees, transportation fees and the retention of non-refundable deposits, are recognised at the point in time at which the Company has no further performance obligations.

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Improvements to property

-

Straight line over the life of the lease

Fixtures and fittings

-

15% on cost

Computer equipment

-

20% on cost

All fixed assets are recorded at cost or valuation.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses

Pensions

Defined contribution pension plan

The Company operates two defined contribution plans 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 other creditors as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Defined benefit pension plan

The Company also participates in another, separate, pension plan for certain of its employees. Qualifying teachers are enrolled into the Teachers' Pension Scheme (TPS) administered by the Teachers' Pension Agency. Contributions to the scheme are charged to the Statement of Financial Position as they fall due. The TPS is an unfunded scheme and although it has some of the characteristics of a defined benefit scheme, as it is a multi-employer scheme the Company accounts for the plan as if it were a defined contribution scheme. Contributions on a 'pay as you go' basis are credited to the Exchequer under arrangements governed by the Superannuation Act 1972. Actuarial valuations are carried out by Government's Actuary Department. Under the definitions set out in FRS 102 the TPS is a multi-employer plan.

3.	Employees and directors

The average number of employees during the year was 65 (2022 - 61 ) .

4.	Tangible fixed assets

Fixtures

Improvements

and

Computer

to property

fittings

equipment

Totals

£

£

£

£

Cost

At 1 September 2022

218,411

32,211

124,852

375,474

Additions

56,820

37,158

66,848

160,826

At 31 August 2023

275,231

69,369

191,700

536,300

Depreciation

At 1 September 2022

150,435

19,906

85,095

255,436

Charge for year

39,670

7,419

21,321

68,410

At 31 August 2023

190,105

27,325

106,416

323,846

Net book value

At 31 August 2023

85,126

42,044

85,284

212,454

At 31 August 2022

67,976

12,305

39,757

120,038

5.

Debtors: amounts falling due within one year

2023

2022

£

£

Trade debtors

143,267

113,075

Other debtors

6,624

12,573

Prepayments

148,663

86,487

298,554

212,135

6.

Creditors: amounts falling due within one year

2023

2022

£

£

Trade creditors

76,287

71,342

Corporation tax

16,185

-

Social security and other taxes

53,033

42,449

Other creditors

704,913

650,250

Accruals and deferred income

1,410,071

1,194,383

2,260,489

1,958,424

Included within other creditors are deposits of £627,080 (2022 - £575,700) which relate to interest free deposits received from parents for their child to attend the school. They are repayable on the child leaving, which from experience the Company has found could be at any time during their schooling, therefore parent deposits are classified as falling due within one year.

Included within accruals and deferred income are fees in advance of £1,345,957 (2022 - £1,169,516) received for the Autumn term following the year end.

7.

Creditors: amounts falling due after more than one year

2023

2022

£

£

Preference shares

-

5,000

Shares classed as financial liabilities consists of 50 redeemable 5% preference shares of £100 each. These shares carry a fixed cumulative preferential dividend of 5% per annum, subject to the availability of distributable profits. All 50 of the redeemable 5% preference shares were redeemed on 19 July 2023 at their nominal value. Dividend interest of £250 (2022 - £250) has been accrued for the year to 31 August 2023 and the balance of £nil (2022 - £645) owed is recognised in creditors falling due in less than one year.

8.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2023

2022

£

£

Within one year

303,521

277,247

Between one and five years

892,207

171,779

In more than five years

25,416

-

1,221,144

449,026

9.	Provisions for liabilities

2023

2022

£

£

Deferred tax

32,324

12,315

Deferred tax

£

Balance at 1 September 2022

12,315

Provided during year

20,009

Balance at 31 August 2023

32,324

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

1,000

2nd Non cumulative Redeemable

£100

100,000

100,000

4,010

Non Cumulative Redeemable pref

£100

401,000

401,000

57

Ordinary shares

£1

57

57

501,057

501,057

Ordinary shares have attached to them full voting, dividend and capital distribution rights.

The Non-Cumulative and 2nd Non-Cumulative Redeemable Preference shares entitle the holder to one vote for every ten shares held. There is no right to a fixed or cumulative dividend attached to these shares and redemption is at the option of the Company.

The Cumulative Redeemable Preference shares carry no voting rights. Attached to each share is a fixed, cumulative 5% preferential dividend, payable subject to the availability of distributable profits to make the payment. Redemption of these shares is at the option of the Company.

11.	Contingent liabilities

The Company set aside funds to cover a bank guarantee required by the Teachers' Pension Scheme. As at 31 August 2023 the amount of the potential liability associated with this guarantee was £72,000 (2022 - £72,000).

12.	Pension commitments

The Company operates two defined contribution pension schemes. The assets of the scheme are held separately from those of the Company in independently administered funds. The Company participates in the Teachers' Pension Scheme (The TPS) for certain qualifying employees.

The pension cost charge represents contributions payable by the Company to the funds and amounted to £273,497 (2022 - £299,204). Contributions totalling £7,220 (2022 - £8,341) were payable to the funds at the reporting date and are included in creditors.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers' Pensions Regulations 2010 (as amended) and The Teachers' Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report, which was published in October 2023.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the 'greater value' benefits for groups of relevant members.

The valuation confirmed that the employer contribution rate for the TPS would increase from 23.6% to 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.