Educate School Services Ltd - Period Ending 2016-03-31

Registration number: 07154692

Educate School Services Ltd

Unaudited Abbreviated Accounts

for the Year Ended 31 March 2016
 

Redwoods
Chartered Certified Accountants
2 Clyst Works,
Clyst Road, Topsham
Exeter
EX3 0DB

Educate School Services Ltd
Contents

Accountants' Report 1

Abbreviated Balance Sheet 2 to 3

Notes to the Abbreviated Accounts 4 to 6

The following reproduces the text of the accountants' report in respect of the company's annual financial statements, from which the abbreviated accounts (set out on pages 2 to 6) have been prepared.

Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Educate School Services Ltd
for the Year Ended 31 March 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Educate School Services Ltd for the year ended 31 March 2016 set out on pages from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/en/member/professional-standards/rules-standards/acca-rulebook.html.

This report is made solely to the Board of Directors of Educate School Services Ltd, as a body, in accordance with the terms of our engagement letterdated 6 December 2013. Our work has been undertaken solely to prepare for your approval the accounts of Educate School Services Ltd and state those matters that we have agreed to state to them, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Educate School Services Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Educate School Services Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Educate School Services Ltd. You consider that Educate School Services Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Educate School Services Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Redwoods
Chartered Certified Accountants
2 Clyst Works,
Clyst Road, Topsham
Exeter
EX3 0DB

22 July 2016

Page 1

Educate School Services Ltd
(Registration number: 07154692)
Abbreviated Balance Sheet at 31 March 2016

		Note			2016 £			(As restated) 2015 £
Fixed assets
Intangible fixed assets					209,578			302,724
Tangible fixed assets					8,696			9,708
Investments					275,082			280,913
					493,356			593,345
Current assets
Debtors					47,605			147,724
Cash at bank and in hand					15,315			96,993
					62,920			244,717
Creditors: Amounts falling due within one year					(207,390)			(154,069)
Net current (liabilities)/assets					(144,470)			90,648
Net assets					348,886			683,993
Capital and reserves
Called up share capital		3			301			287
Share premium account					2,342,659			2,042,679
Profit and loss account					(1,994,074)			(1,358,973)
Shareholders' funds					348,886			683,993

The notes on pages 4 to 6 form an integral part of these financial statements.
Page 2

Educate School Services Ltd
(Registration number: 07154692)
Abbreviated Balance Sheet at 31 March 2016
......... continued

For the year ending 31 March 2016 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime .

Approved by the Board on 22 July 2016 and signed on its behalf by:

.........................................
Mr J R F De Bass
Director

The notes on pages 4 to 6 form an integral part of these financial statements.
Page 3

Educate School Services Ltd
Notes to the Abbreviated Accounts for the Year Ended 31 March 2016
......... continued

1	Accounting policies

Basis of preparation

The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective January 2015).

Exemption from preparing group accounts

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes indicate that the carrying value may not be recoverable.

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Amortisation method and rate
Goodwill	20% straight line on original value of £465,729, (March 2011), amortised value recognised on hive up of trade from subsidiary

Depreciation

Impairment
At each reporting date fixed assets, including tangible fixed assets, are assessed to determine whether there is an indication that the carrying amount of an asset may be more than its recoverable amount and that the asset should be impaired. If there is an indication of possible impairment, the recoverable amount of an asset, which is higher of its value in use and net realisable value, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is written down to its estimated recoverable amount and an impairment loss is recognised in profit and loss.

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual valu, over the expected useful economic life as follows:

Asset class	Depreciation method and rate
Computer and office equipment	25% straight line

Fixed asset investments

Fixed asset investments are stated at historical cost less provision for any diminution in value.

Page 4

Educate School Services Ltd
Notes to the Abbreviated Accounts for the Year Ended 31 March 2016
......... continued

Deferred tax

Deferred tax is recognised, without discounting, in respect of timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by the FRSSE. Deferred tax is measured at rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.

Hire purchase and leasing

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Financial instruments

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 in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

2	Fixed assets

		Intangible assets £			Tangible assets £			Investments £			Total £
Cost
At 1 April 2015		411,394			20,704			280,913			713,011
Revaluations		-			-			(5,831)			(5,831)
Additions		-			4,421			-			4,421
At 31 March 2016		411,394			25,125			275,082			711,601
Depreciation
At 1 April 2015		108,670			10,996			-			119,666
Charge for the year		93,146			5,433			-			98,579
At 31 March 2016		201,816			16,429			-			218,245
Net book value
At 31 March 2016		209,578			8,696			275,082			493,356
At 31 March 2015		302,724			9,708			280,913			593,345

Page 5

Educate School Services Ltd
Notes to the Abbreviated Accounts for the Year Ended 31 March 2016
......... continued

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Country of incorporation	Holding	Proportion of voting rights and shares held	Principal activity
Subsidiary undertakings
Head Support Ltd		200 ordinary 1p shares	100%	Dormant company
Educate Schools Plus Ltd		82 ordinary £1 shares	82%	Dormant company
Education Management Direct Ltd		159,640 ordinary £1 shares, and 1,160 Ordinary B £1 shares	100%	Training and continuous professional development for the school workforce
Educate (PGCE) Ltd		1 Ordinary £1 share	100%

The financial period end of Education Management Direct Ltd is 31 August 2015. The loss for the financial period of Education Management Direct Ltd was £47,200 and the aggregate amount of capital and reserves at the end of the period was (£43,749).

3	Share capital

Allotted, called up and fully paid shares

	2016						2015
		No.			£			No.			£
Ordinary shares of £0.01 each		30,060			301			28,673			287

New shares allotted

During the year 1,387 Ordinary having an aggregate nominal value of £14 were allotted for an aggregate consideration of £299,994. new issue.

4	Prior period adjustments

On transition to FRSSE 2015 the company has revised its estimated useful life of goodwill from 20 years to 5 years. Although the previous estimate was believed to be correct, it cannot be reliably demonstrated, as required under FRSSE 2015. The comparative year's amortisation charge has been changed via a prior year adjustment, in order that the comparative amount shown, is comparable to the 2016 charge.

Page 6