Kinderworld Limited - Period Ending 2016-12-31

Registration number: 03094582

Kinderworld Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2016

Stubbs Parkin
Chartered Accountants
55 Hoghton Street
Southport
Merseyside
PR9 0PG

Kinderworld Limited

Contents

Company Information	1
Directors' Report	2
Accountants' Report	3
Statement of Income and Retained Earnings	4
Balance Sheet	5
Notes to the Financial Statements	6 to 10
The following pages do not form part of the statutory financial statements:
Non-statutory pages	11 to 13

Kinderworld Limited

Company Information

Directors

Mrs JAC Carrol Miss AM Carrol

Company secretary

Mr B Whitfield

Registered office

55 Hoghton Street Southport Merseyside PR9 0PG

Solicitors

Whitfields Solicitors Marion House 23/25 Elbow Lane Formby Merseyside L37 4AB

Accountants

Stubbs Parkin Chartered Accountants 55 Hoghton Street Southport Merseyside PR9 0PG

Page 1

Kinderworld Limited

Directors' Report for the Year Ended 31 December 2016

The directors present their report and the financial statements for the year ended 31 December 2016.

Directors of the company

The directors who held office during the year were as follows:

Mrs J Hughes (Retired 16 November 2016)

Mrs JAC Carrol

Miss AM Carrol

Principal activity

The principal activity of the company is that of nursery care

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the Board on 30 March 2017 and signed on its behalf by:

.........................................
Miss AM Carrol
Director

Page 2

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Kinderworld Limited
for the Year Ended 31 December 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Kinderworld Limited for the year ended 31 December 2016 as set out on pages 4 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Kinderworld Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Kinderworld Limited and state those matters that we have agreed to state to the Board of Directors of Kinderworld Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Kinderworld Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Kinderworld Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Kinderworld Limited. You consider that Kinderworld Limited 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 Kinderworld Limited. 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.

Stubbs Parkin
Chartered Accountants
55 Hoghton Street
Southport
Merseyside
PR9 0PG

28 March 2017

Page 3

Kinderworld Limited

Statement of Income and Retained Earnings for the Year Ended 31 December 2016

	Note	2016 £	2015 £
Turnover		789,411	790,764
Cost of sales		(566,353)	(539,801)
Gross profit		223,058	250,963
Administrative expenses		(207,491)	(221,485)
Operating profit		15,567	29,478
Other interest receivable and similar income		1,484	1,991
Profit before tax	4	17,051	31,469
Taxation		(3,800)	(8,893)
Profit for the financial year		13,251	22,576
Retained earnings brought forward		805,876	783,300
Retained earnings carried forward		819,127	805,876

The notes on pages 6 to 10 form an integral part of these financial statements.

Page 4

Kinderworld Limited

(Registration number: 03094582)
Balance Sheet as at 31 December 2016

	Note	2016 £		2015 £
Fixed assets
Tangible assets	5		618,545		621,789
Current assets
Debtors	6	26,595		16,000
Cash at bank and in hand		455,248		449,385
		481,843		465,385
Creditors: Amounts falling due within one year	7	(61,261)		(61,298)
Net current assets			420,582		404,087
Net assets			1,039,127		1,025,876
Capital and reserves
Called up share capital		220,000		220,000
Profit and loss account		819,127		805,876
Total equity			1,039,127		1,025,876

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

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 30 March 2017 and signed on its behalf by:
 

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

Miss AM Carrol

Director

The notes on pages 6 to 10 form an integral part of these financial statements.

Page 5

Kinderworld Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital incorporated in England.

The address of its registered office is:
55 Hoghton Street
Southport
Merseyside
PR9 0PG

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when it is probable that economic benefits will flow to the company and the
amount of revenue can be reliably measured.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

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:

Page 6

Kinderworld Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Asset class	Depreciation method and rate
Property	2% straight line basis
Plant & Machinery	Between 3 and 7 years
Fixtures & fittings	15% reducing balance basis
Motor vehicles	25% reducing balance basis

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 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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

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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 63 (2015 - 59).

Page 7

Kinderworld Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

4	Profit before tax

Arrived at after charging/(crediting)

	2016 £	2015 £
Depreciation expense	20,145	16,849

Page 8

Kinderworld Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 January 2016	637,764	134,014	16,653	31,530	819,961
Additions	-	2,792	14,170	-	16,962
Disposals	-	-	(3,500)	-	(3,500)
At 31 December 2016	637,764	136,806	27,323	31,530	833,423
Depreciation
At 1 January 2016	38,209	114,542	15,559	29,862	198,172
Charge for the year	12,755	3,340	3,801	250	20,146
Eliminated on disposal	-	-	(3,440)	-	(3,440)
At 31 December 2016	50,964	117,882	15,920	30,112	214,878
Carrying amount
At 31 December 2016	586,800	18,924	11,403	1,418	618,545
At 31 December 2015	599,555	19,472	1,094	1,668	621,789

Included within the net book value of land and buildings above is £586,800 (2015 - £599,555) in respect of freehold land and buildings.
 

Page 9

Kinderworld Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

6

Debtors

	2016 £	2015 £
Trade debtors	10,290	-
Other debtors	16,305	16,000
Total current trade and other debtors	26,595	16,000

7

Creditors

	Note	2016 £	2015 £
Due within one year
Trade creditors		3,178	4,698
Taxation and social security		5,168	5,291
Other creditors		52,915	51,309
		61,261	61,298

8	Transition to FRS 102

These are the company's first financial statements under FRS 102. The company's date of transition was 1st
January 2016, with the financial statements for the year ended 31st December 2016 being the last financial
statements prepared under the previous accounting framework.
The policies applied under the company's previous accounting framework are not materially different to FRS
102 and have not impacted on equity or profit and loss.

Page 10

Kinderworld Limited

Detailed Profit and Loss Account for the Year Ended 31 December 2016

	2016  £	2015  £
Sales	789,411	790,764
Turnover	789,411	790,764
Cost of sales	(566,353)	(539,801)
Gross profit	223,058	250,963
Gross profit (%)	28.26%	31.74%
Administrative expenses (analysed below)
Employment costs	(52,522)	(55,206)
Establishment costs	(63,240)	(81,964)
General administrative expenses	(68,723)	(64,628)
Finance charges	(3,001)	(2,784)
Depreciation costs	(20,145)	(16,849)
Other expenses	140	(54)
	(207,491)	(221,485)
Operating profit	15,567	29,478
Other interest receivable and similar income (analysed below)	1,484	1,991
Profit before tax	17,051	31,469

This page does not form part of the statutory financial statements.

Page 11

Kinderworld Limited

Detailed Profit and Loss Account for the Year Ended 31 December 2016

2016 £

2015 £

Turnover
Nursery fees	789,411	790,764

Cost of sales
Purchases	(44,977)	(43,174)
Nursery and after school costs	(10,734)	(9,979)
Entertainers and trips	(4,422)	(3,529)
Wages and salaries (excluding directors)	(503,700)	(480,941)
Staff pensions (Defined contribution)	(2,520)	(2,178)
	(566,353)	(539,801)

Employment costs
Directors remuneration	(52,232)	(54,277)
Staff training	(290)	(929)
	(52,522)	(55,206)

Establishment costs
Rates	(24,460)	(24,867)
Light, heat and power	(14,855)	(11,081)
Insurance	(3,488)	(3,484)
Repairs and renewals	(20,437)	(42,532)
	(63,240)	(81,964)

General administrative expenses
Telephone and fax	(1,944)	(2,399)
Computer software and maintenance costs	(3,151)	(2,798)
Printing, postage and stationery	(5,333)	(4,393)
Trade subscriptions	(664)	(644)
Cleaning	(12,254)	(13,170)
Uniforms	(720)	(1,137)
Motor expenses	(23,649)	(19,967)
Advertising	(2,838)	(3,260)
Customer entertaining (disallowable for tax)	(1,717)	(2,044)
Accountancy fees	(5,580)	(5,300)
Professional indemnity insurance	(9,144)	(8,406)
Legal and professional fees	(1,729)	(1,110)
	(68,723)	(64,628)

Finance charges
Bank charges	(3,001)	(2,784)

This page does not form part of the statutory financial statements.

Page 12

Kinderworld Limited

Detailed Profit and Loss Account for the Year Ended 31 December 2016

Depreciation costs
Depreciation of freehold property	(12,755)	(12,755)
Depreciation of plant and machinery (owned)	(250)	(294)
Depreciation of fixtures and fittings (owned)	(3,339)	(3,436)
Depreciation of motor vehicles (owned)	(3,801)	(364)
	(20,145)	(16,849)

Other expenses
(Profit)/loss on disposal of tangible fixed assets	140	(54)

Other interest receivable and similar income
Bank interest receivable	1,484	1,991

This page does not form part of the statutory financial statements.

Page 13