Bridges Care and Education Limited - Period Ending 2023-08-31
Bridges Care and Education Limited - Period Ending 2023-08-31
Registration number:
for the
Year Ended 31 August 2023
Bridges Care and Education Limited
Contents
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Company Information |
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Strategic Report |
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Directors' 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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Balance Sheet |
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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 |
Bridges Care and Education Limited
Company Information
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Directors |
D Alipaz S W Bradshaw M D Gross H Kenny-Allen T A Mack K J Thomas S Parker |
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Registered office |
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Auditors |
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Bridges Care and Education Limited
Strategic Report for the Year Ended 31 August 2023
The directors present their strategic report for the year ended 31 August 2023.
Principal activity
The principal activity of the group is providing specialised education services. The principal activity of the company is that of a holding company.
Fair review of the business
The results for the year which are set out in the profit and loss account show turnover of £6,976,664 (2022 - £3,219,998) and an operating loss of £1,520,930 (2022 - £985,569). At 31 August 2023 the group had net liabilities of £6,954,475 (2022 - £1,635,300). The directors consider the performance for the year and the financial position at the year end to be satisfactory.
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 company are considered to relate to ongoing compliance with current and future legislation affecting the sector.
Approved by the
Director
Bridges Care and Education Limited
Directors' Report for the Year Ended 31 August 2023
The directors present their report and the for the year ended 31 August 2023.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The board constantly monitors the group's trading results and revise projections as appropriate to ensure that the group can meet its future obligations as they fall due.
Price risk, credit risk, liquidity risk and cash flow risk
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 group has sufficient resources available and the directors have prepared forecasts for the next 12 months that indicate that this will continue to be the case and that these cash flows will be sufficient for the group to meet its financing commitments as they fall due. 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.
Post balance sheet events
Since the balance sheet date, the company has purchased 1 freehold property for a purchase price of £750,000.
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
Bridges Care and Education Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, Directors' 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 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.
Bridges Care and Education Limited
Independent Auditor's Report to the Members of Bridges Care and Education Limited
Opinion
We have audited the financial statements of Bridges Care and Education Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2023, which comprise the Consolidated Profit and Loss Account, 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 2023 and of the group's loss 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 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
Bridges Care and Education Limited
Independent Auditor's Report to the Members of Bridges Care and Education Limited
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 |
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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 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 4, 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.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the group’s industry and its control environment and reviewed the group’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
Bridges Care and Education Limited
Independent Auditor's Report to the Members of Bridges Care and Education Limited
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
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enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
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reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available 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
Bridges Care and Education Limited
Consolidated Profit and Loss Account for the Year Ended 31 August 2023
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Note |
2023 |
2022 |
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Turnover |
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Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Exceptional expenses |
( |
( |
|
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Operating loss |
( |
( |
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
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Loss before tax |
( |
( |
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Taxation |
( |
|
|
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Loss for the financial year |
( |
( |
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|
Profit/(loss) attributable to: |
|||
|
Owners of the company |
( |
( |
The above results were derived from continuing operations.
The group has no other comprehensive income for the year.
Bridges Care and Education Limited
(Registration number: 12428739)
Consolidated Balance Sheet as at 31 August 2023
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Note |
2023 |
2022 |
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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 |
2,942,458 |
876,056 |
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|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current (liabilities)/assets |
( |
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|
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Total assets less current liabilities |
|
|
|
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Creditors: Amounts falling due after more than one year |
( |
( |
|
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Provisions for liabilities |
( |
- |
|
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Net liabilities |
( |
( |
|
|
Capital and reserves |
|||
|
Called up share capital |
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|
|
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Share premium reserve |
|
|
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Profit and loss account |
( |
( |
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Total equity |
( |
( |
Approved and authorised by the
Director
Bridges Care and Education Limited
(Registration number: 12428739)
Balance Sheet as at 31 August 2023
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Note |
2023 |
2022 |
|
|
Fixed assets |
|||
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Investments |
|
|
|
|
Current assets |
|||
|
Debtors |
- |
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current (liabilities)/assets |
( |
|
|
|
Net (liabilities)/assets |
( |
|
|
|
Capital and reserves |
|||
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Called up share capital |
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|
|
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Share premium reserve |
|
|
|
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Profit and loss account |
( |
( |
|
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Total equity |
( |
|
The company made a loss after tax for the financial year of £224,382 (2022 - loss of £57,421).
Approved and authorised by the
Director
Bridges Care and Education Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 August 2023
Equity attributable to the parent company
|
Share capital |
Share premium |
Profit and loss account |
Total |
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At 1 September 2022 |
|
|
( |
( |
|
Loss for the year |
- |
- |
( |
( |
|
New share capital subscribed |
|
|
- |
|
|
At 31 August 2023 |
|
|
( |
( |
|
Share capital |
Share premium |
Profit and loss account |
Total |
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|
At 1 September 2021 |
|
|
( |
( |
|
Loss for the year |
- |
- |
( |
( |
|
At 31 August 2022 |
|
|
( |
( |
Bridges Care and Education Limited
Statement of Changes in Equity for the Year Ended 31 August 2023
|
Share capital |
Share premium |
Profit and loss account |
Total |
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At 1 September 2022 |
|
|
( |
|
|
Loss for the year |
- |
- |
( |
( |
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New share capital subscribed |
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- |
|
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At 31 August 2023 |
|
|
( |
( |
|
Share capital |
Share premium |
Profit and loss account |
Total |
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At 1 September 2021 |
|
|
( |
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Loss for the year |
- |
- |
( |
( |
|
At 31 August 2022 |
|
|
( |
|
Bridges Care and Education Limited
Consolidated Statement of Cash Flows for the Year Ended 31 August 2023
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Note |
2023 |
2022 |
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Cash flows from operating activities |
|||
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Loss for the year |
( |
( |
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
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|
|
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Profit on disposal of tangible assets |
- |
( |
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Finance income |
( |
( |
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Finance costs |
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|
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Income tax expense |
|
( |
|
|
( |
( |
||
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Working capital adjustments |
|||
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(Increase)/decrease in trade debtors |
( |
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Increase in trade creditors |
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Increase/(decrease) in deferred income |
|
( |
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Net cash flow from operating activities |
|
( |
|
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Cash flows from investing activities |
|||
|
Interest received |
|
|
|
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Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
- |
|
|
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Acquisition of intangible assets |
( |
( |
|
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
|||
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Interest paid |
( |
( |
|
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Proceeds from other borrowing draw downs |
|
|
|
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Payment of costs associated with raising finance |
(249,049) |
(364,857) |
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Net cash flows from financing activities |
|
|
|
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Net increase in cash and cash equivalents |
|
|
|
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Cash and cash equivalents at 1 September |
|
|
|
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Cash and cash equivalents at 31 August |
2,942,458 |
876,056 |
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Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
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General information |
The company is a private company limited by share capital, incorporated 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.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom 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.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 August 2023.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a loss after tax for the financial year of £224,382 (2022 - loss of £57,421).
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.
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
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.
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 specialised education services in the ordinary course of the group’s activities. Turnover is shown net of discounts and after eliminating sales within the group. 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.
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.
Tax
The tax expense for the period comprises 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.
Deferred income 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 income 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 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 buildings |
2% straight line |
|
Fixtures and fittings |
25% straight line |
|
Office equipment |
33.3% straight line |
|
Motor Vehicles |
25% straight line |
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
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 |
|
Website development costs |
25% 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.
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 group 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 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.
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.
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
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. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Recognition and measurement
Impairment
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.
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
|
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2023 |
2022 |
|
|
Rendering of services |
|
|
|
Grants received |
- |
|
|
Other revenue |
|
|
|
|
|
The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.
|
Operating profit |
Arrived at after charging
|
2023 |
2022 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - other |
12,576 |
11,615 |
|
551,537 |
266,765 |
|
Exceptional items |
|
2023 |
2022 |
|
|
Exceptional expenses |
530,318 |
427,420 |
Exceptional items in the current and prior year consist of pre-opening costs for new schools.
|
Other interest receivable and similar income |
|
2023 |
2022 |
|
|
Interest income on bank deposits |
|
|
|
Interest payable and similar expenses |
|
2023 |
2022 |
|
|
Interest expense on other finance liabilities |
|
|
|
Finance costs adjacent to interest |
|
|
|
|
|
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
|
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2023 |
2022 |
|
|
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:
|
2023 |
2022 |
|
|
Education |
|
|
|
Administration and support |
|
|
|
|
|
Company
The company incurred no staff costs and had no employees other than the directors.
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2023 |
2022 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
354,066 |
260,351 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2023 |
2022 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2023 |
2022 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
|
Auditors' remuneration |
|
2023 |
2022 |
|
|
Audit of these financial statements |
14,700 |
10,800 |
|
Other fees to auditors |
||
|
All other non-audit services |
|
|
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2023 |
2022 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2023 |
2022 |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax credit relating to changes in tax rates or laws |
( |
( |
|
Deferred tax expense from unrecognised temporary difference from a prior period |
|
- |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Tax increase from effect of unrelieved tax losses carried forward |
|
- |
|
Total tax charge/(credit) |
|
( |
Deferred tax
Group
Deferred tax assets and liabilities
|
2023 |
Liability |
|
Fixed asset timing differences |
|
|
Short term timing differences |
( |
|
|
|
2022 |
Asset |
|
Fixed asset timing differences |
( |
|
Short term timing differences |
|
|
Taxable losses |
|
|
|
Company
Deferred tax assets and liabilities
|
2022 |
Asset |
|
Taxable losses |
|
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
|
Intangible assets |
Group
|
Website development costs |
|
|
Cost |
|
|
At 1 September 2022 |
|
|
Additions |
|
|
At 31 August 2023 |
|
|
Amortisation |
|
|
At 1 September 2022 |
|
|
Amortisation charge |
|
|
At 31 August 2023 |
|
|
Carrying amount |
|
|
At 31 August 2023 |
|
|
At 31 August 2022 |
|
|
Tangible assets |
Group
|
Freehold land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost |
||||
|
At 1 September 2022 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 31 August 2023 |
|
|
|
|
|
Depreciation |
||||
|
At 1 September 2022 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 August 2023 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 August 2023 |
|
|
|
|
|
At 31 August 2022 |
|
|
|
|
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
|
Investments |
Company
|
2023 |
2022 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost and carrying amount |
|
|
At 1 September 2022 and at 31 August 2023 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) 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 |
||||
|
2023 |
2022 |
||||||
|
Subsidiary undertakings |
|||||||
|
|
England and Wales |
|
|
|
|||
|
Subsidiary undertakings |
|
Spaghetti Bridge Limited The principal activity of Spaghetti Bridge Limited is |
|
Debtors |
|
Group |
Company |
||||
|
Note |
2023 |
2022 |
2023 |
2022 |
|
|
Trade debtors |
|
|
- |
- |
|
|
Amounts owed by group undertakings |
- |
- |
- |
|
|
|
Other debtors |
|
|
- |
- |
|
|
Prepayments |
|
|
- |
- |
|
|
Deferred tax assets |
- |
|
- |
|
|
|
|
|
- |
|
||
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
|
Creditors |
|
Group |
Company |
||||
|
Note |
2023 |
2022 |
2023 |
2022 |
|
|
Due within one year |
|||||
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to group undertakings |
- |
- |
|
- |
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
|
Other creditors |
|
|
- |
- |
|
|
Accrued expenses |
|
|
- |
|
|
|
Deferred income |
|
|
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Loans and borrowings |
|
Group |
Company |
|||
|
2023 |
2022 |
2023 |
2022 |
|
|
Non-current loans and borrowings |
||||
|
Other borrowings |
|
|
- |
- |
Other non-current borrowings relate to loan notes which are repayable in full in February 2025. The loan notes are secured on the assets of the group.
During the year, the group was advanced loan notes with a principal amount of £17,545,109 (2022 - £9,235,436).
The loan notes attract interest of 7.25% over base rate per annum. Interest of £2,617,107 (2022 - £771,714) has been accrued in the year, of which £317,698 (2022 - £63,468) has been paid in the year.
The loan notes outstanding of £32,776,455 (2022 - £12,970,808) are stated after deducting £326,852 (2022 - £288,592) of costs associated with the raising of this finance, which are being released to the profit and loss account over the term of the loan notes in accordance with FRS102.
Post year end, the termination date has been extended to 7 February 2030.
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
|
Share capital |
Allotted, called up and fully paid shares
|
2023 |
2022 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
672.98 |
|
680.00 |
|
|
|
139.28 |
|
120.00 |
|
|
|
58.16 |
- |
- |
|
|
|
7.02 |
- |
- |
|
|
|
|
|
|
Rights, preferences and restrictions
All Ordinary A, B and C shares carry the right to vote and receive dividends.
The holder of the Ordinary D shares has the right to receive dividends but no voting rights.
On a return of capital, surplus assets are distributed to the holders of A shares until a hurdle is met, followed by holders of B, C and D shares until a hurdle is met. Following this, the shares rank pari passu in any further distributable funds.
New shares allotted
On 21 September 2022, 1,928 Ordinary B shares and 5,816 Ordinary C shares were issued for total consideration of £37,694.
On 21 September 2022, all Ordinary shares were sub-divided from a nominal value of £0.10 each to £0.01 each.
On 17 July 2023, 702 Ordinary A shares were redesignated as Ordinary D shares.
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
|
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £
Bridges Care and Education Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
|
Analysis of changes in net debt |
Group
|
At 1 September 2022 |
Financing cash flows |
Other non-cash changes |
At 31 August 2023 |
|
|
Cash and cash equivalents |
||||
|
Cash |
876,056 |
2,066,402 |
- |
2,942,458 |
|
Borrowings |
||||
|
Long term borrowings |
(12,970,808) |
(16,978,362) |
(2,827,285) |
(32,776,455) |
|
|
||||
|
( |
( |
( |
( |
|
Other non-cash changes relates to accrued interest of £2,617,108 and amortisation of costs associated with the raising of finance of £210,177.
|
Related party transactions |
Group
Summary of transactions with key management
Summary of transactions with other related parties
During the year, the group's ultimate parent charged the group £191,357 (2022 - £73,446) in monitoring fees. At 31 August 2023, £10,389 remains outstanding (2022 - £94,352).
|
Parent and ultimate parent undertaking |
The ultimate parent is
|
Post balance sheet events |
|
|