St John's International School Limited - Period Ending 2023-08-31

ST JOHN'S INTERNATIONAL SCHOOL LIMITED - Company Information

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Company registration number: 07999804

St John's International School Limited

Filleted Annual Report and Financial Statements

for the Year Ended 31 August 2023

St John's International School Limited

Contents

Balance Sheet	1
Notes to the Financial Statements	2 to 11

St John's International School Limited

(Registration number: 07999804)
Balance Sheet as at 31 August 2023

	Note	2023 £	2022 £
Fixed assets
Tangible assets	4	2,015,025	2,037,667
Current assets
Stocks	5	2,936	3,417
Debtors	6	402,070	318,924
Cash at bank and in hand		97,545	237,818
		502,551	560,159
Creditors: Amounts falling due within one year	7	(3,528,965)	(3,831,205)
Net current liabilities		(3,026,414)	(3,271,046)
Total assets less current liabilities		(1,011,389)	(1,233,379)
Creditors: Amounts falling due after more than one year	7	(6,011,919)	(5,766,710)
Net liabilities		(7,023,308)	(7,000,089)
Capital and reserves
Called up share capital		100	100
Revaluation reserve		887,252	887,252
Profit and loss account		(7,910,660)	(7,887,441)
Total equity		(7,023,308)	(7,000,089)

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

Approved and authorised by the Board on 21 March 2024 and signed on its behalf by:

M S Perdiguero
Director

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

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:
Foot Anstey LLP
Senate Court
Southernhay Gardens
Exeter
Devon
EX1 1NT
England

The principal place of business is:
Broadway
Sidmouth
Devon
EX10 8RG

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

The financial statements have been prepared under the historical cost convention and in accordance with FRS 105 'The Financial Reporting Standard applicable to the Micro-entities Regime'.

Basis of preparation

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

These financial statements are presented in Sterling (£).

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

Going concern

At the balance sheet date the company had net current liabilities of £3,026,414 and total net liabilities of £7,023,308. The financial statements have been prepared on the going concern basis which assumes that the company will continue in operation for at least 12 months from the date of the approval of these financial statements.

The company's continued activities are dependent upon the ongoing support of Dr J Segovia Bonet for the foreseeable future through International Education Systems Limited, as the ultimate shareholder of this company, and the provision of loans through affiliated companies within the IES (International Education Systems) and SEK international schools network. These loans at the year end totalled £8,730,183 to the company, of which £2,718,264 is due within one year of the balance sheet date.

The directors have expressed their intention to continue to provide financial support to the company for at least the next twelve months from the approval of the accounts, to renew those loans falling due in that period and defer the interest due on those loans (so they fall due in more the twelve months) and assist with any working capital requirements. As a result, the directors believe the company will be able to pay debts as they fall due and on this basis the directors have prepared the financial statements on a going concern basis.

Turnover recognition

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business.

Turnover is net of any grants and scholarships awarded.

Government grants

Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors within the balance sheet.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

Tangible assets

Tangible assets are stated at cost or valuation, less accumulated depreciation and accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of tangible assets

Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land and buildings	Not depreciated
Fixtures and fittings	10-33% straight line basis
Motor vehicles	20% straight line basis
Plant and equipment	20% straight line basis

Freehold land and buildings are included in the balance sheet at valuation. Land and buildings will be assessed periodically to identify any changes in value. Any surplus arising on revaluation is credited to a revaluation reserve. Any deficit arising on revaluation is debited to the revaluation reserve to the extent that it reverses a surplus on revaluation previously credited to that reserve.

No depreciation is charged on the company's freehold property since, in the opinion of the directors, the expected useful life is sufficiently long and the estiamted residual value is sufficiently high that any such depreciation would be immaterial.

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.

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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

Other debtors are initially recognised at fair value net of transaction costs and are subsequently measured at amortised cost using the effective interest method less any provision for impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

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 subsequently measured at amortised cost using the effective interest method.

Other financial liabilities, including loans, are measured individually at fair value net of transaction costs and subsequently at amortised cost using the effective interest method.

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 company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss reserve includes all current and prior period profits and losses.

Revaluation reserve is the surplus or deficit arising on the revaluation of an asset of a company.

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

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

3	Staff numbers

The average number of persons employed by the company (including directors) during the year was 59 (2022 - 52).

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

4	Tangible assets

	Land and buildings £	Furniture, fittings and equipment £	Motor vehicles £	Plant and machinery £	Total £
Cost or valuation
At 1 September 2022	1,749,359	1,062,979	59,794	14,021	2,886,153
Additions	-	55,070	23,394	4,355	82,819
Disposals	-	(51,839)	-	(1,573)	(53,412)
At 31 August 2023	1,749,359	1,066,210	83,188	16,803	2,915,560
Depreciation
At 1 September 2022	-	803,788	31,678	13,020	848,486
Charge for the year	-	89,080	12,544	1,870	103,494
Eliminated on disposal	-	(49,872)	-	(1,573)	(51,445)
At 31 August 2023	-	842,996	44,222	13,317	900,535
Carrying amount
At 31 August 2023	1,749,359	223,214	38,966	3,486	2,015,025
At 31 August 2022	1,749,359	259,191	28,116	1,001	2,037,667

Included within the net book value of land and buildings above is £1,749,359 (2022 - £1,749,359) in respect of freehold land and buildings.

Page 7

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

Revaluation

The fair value of the company's land and buildings was revalued on 17 March 2017 by an independent valuer.

The land and buildings, which includes certain fixtures and fittings, were valued on an open market basis at £2,150,000. This valuation has been included in the financial statements. Had these classes of assets been measured on a historical cost basis, the carrying amount would have been £884,388 (2022 - £925,580). This is made up of costs of £1,648,490 (2022: £1,611,895) less accumulated depreciation of £764,103 (2022: £686,315).

Stocks

	2023 £	2022 £
Goods for resale and use	2,936	3,417

Debtors

Current	2023 £	2022 £
Trade debtors	345,687	273,676
Prepayments	47,823	40,123
Other debtors	8,560	5,125
	402,070	318,924

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

Creditors

Creditors: amounts falling due within one year

	Note	2023 £	2022 £
Due within one year
Loans and borrowings	8	2,132,935	2,289,019
Trade creditors		81,066	122,497
Amounts owed to group undertakings and undertakings in which the company has a participating interest	10	79,858	-
Taxation and social security		30,857	-
Other creditors		1,204,249	1,419,689
		3,528,965	3,831,205

Creditors: amounts falling due after more than one year

	Note	2023 £	2022 £
Due after one year
Loans and borrowings	8	5,551,199	5,277,462
Other non-current financial liabilities		460,720	489,248
		6,011,919	5,766,710

8	Loans and borrowings

Current loans and borrowings

	2023 £	2022 £

Other borrowings	2,132,935	2,289,019

Non-current loans and borrowings

	2023 £	2022 £

Other borrowings	5,551,199	5,277,462

9	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £13,247 (2022 - £4,569). Of which, £9,498 is due in more than one year.

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

10	Related party transactions

Transactions with directors

2023	At 1 September 2022 £	Repayments by director £	At 31 August 2023 £
M S Perdiguero
Directors loan account	125	(125)	-

2022	At 1 September 2021 £	Advances to director £	At 31 August 2022 £
M S Perdiguero
Directors loan account	-	125	125

Summary of transactions with other related parties

Affiliated Schools within IES network
At the balance sheet date, the company had loans denominated in US dollars owing to schools with the IES network totalling £3,227,848 (2022: £3,473,778). The company also had loans denominated in Sterling totalling £524,701 (2022: £514,765), and loans denominated in Euros totalling £71,558 (2022: £70,631).

Affiliated Schools within SEK network
At the balance sheet date, the company had loans denominated in US dollars owing to schools within the SEK network totalling £845,647 (2022: £1,048,943). The company also had loans denominated in Euros totalling £683,134 (2022: £2,519,730) and loans denominated in Sterling totalling £2,747,415 (2022: £921,429).

IES Limited (Parent company)
At the balance sheet date the company had a loan denominated in Sterling owing to IES Limited of £629,880 (2022: £166,781). At the balance sheet date the company also had an intercompany loan owing to IES Limited of £79,858 in creditors due in less than one year, on which no interest is charged.

All loans bear interest at an annual rate from 1.50% to 5.00%, and are due within 6 years unless detailed above.

St John's International School Limited

Notes to the Financial Statements
for the Year Ended 31 August 2023

11	Parent and ultimate parent undertaking

The company's immediate parent is International Education Systems Limited, incorporated in England and Wales.

The most senior parent entity producing publicly available financial statements is International Education Systems Limited. These financial statements are available upon request from Companies House, Crown Way, Cardiff.

The ultimate controlling party is Dr J Segovia Bonet.

12	Audit Report

Material uncertainty related to going concern

We draw attention to the going concern accounting policy in note 2 of the financial statements, which states that the company incurred a net loss during the year ended 31 August 2023 and, as of that date, the company’s liabilities exceeded its assets by £7,023,308. As stated in note 2 these events or conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 22 March 2024 was Robert Oram BFP FCA, who signed for and on behalf of Albert Goodman LLP.