Cornerstones Education Limited - Period Ending 2017-07-31

Registration number: 07228912

Cornerstones Education Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2017

Landin Wilcock & Co
Chartered Accountants
68 Queen Street
Sheffield
South Yorkshire
S1 1WR

Cornerstones Education Limited

Contents

Accountants' Report	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 7

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Cornerstones Education Limited
for the Year Ended 31 July 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Cornerstones Education Limited for the year ended 31 July 2017 as set out on pages 2 to 7 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 Cornerstones Education 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 Cornerstones Education Limited and state those matters that we have agreed to state to the Board of Directors of Cornerstones Education 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 Cornerstones Education Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Cornerstones Education 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 Cornerstones Education Limited. You consider that Cornerstones Education 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 Cornerstones Education 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.

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

Landin Wilcock & Co
Chartered Accountants
68 Queen Street
Sheffield
South Yorkshire
S1 1WR

2 February 2018

Page 1

Cornerstones Education Limited

(Registration number: 07228912)
Balance Sheet as at 31 July 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	4	89,895	104,138
Current assets
Stocks	5	13,388	75,800
Debtors	6	495,353	499,259
Cash at bank and in hand		940,041	805,127
		1,448,782	1,380,186
Creditors: Amounts falling due within one year	7	(590,996)	(551,541)
Net current assets		857,786	828,645
Total assets less current liabilities		947,681	932,783
Provisions for liabilities		(6,203)	(8,620)
Net assets		941,478	924,163
Capital and reserves
Called up share capital		3	3
Profit and loss account		941,475	924,160
Total equity		941,478	924,163

For the financial year ending 31 July 2017 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.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 4 to 7 form an integral part of these financial statements.

Page 2

Cornerstones Education Limited

(Registration number: 07228912)
Balance Sheet as at 31 July 2017

Approved and authorised by the Board on 3 January 2018 and signed on its behalf by:
 

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

Mr S A Hickton

Director

The notes on pages 4 to 7 form an integral part of these financial statements.

Page 3

Cornerstones Education Limited

Notes to the Financial Statements for the Year Ended 31 July 2017

1	General information

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

The address of its registered office is:
68 Queen Street
Sheffield
South Yorkshire
S1 1WR

The principal place of business is:
6 Burghley Court
Sprotbrough
Doncaster
DN5 7DZ

These financial statements were authorised for issue by the Board on 3 January 2018.

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.

The presentation and functional currency is considered to be pounds sterling because that is the currency in the primary economic environment in which the company operates.

Going concern

The financial statements have been prepared on a going concern basis.

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
Office equipment	25% straight line
Fixtures and fittings	25% straight line
Long leasehold land and building	10% straight line

Page 4

Cornerstones Education Limited

Notes to the Financial Statements for the Year Ended 31 July 2017

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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial instruments

Classification
Financial assets and financial liabilities are recognised when the Company becomes party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
 
 

Page 5

Cornerstones Education Limited

Notes to the Financial Statements for the Year Ended 31 July 2017

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 38 (2016 - 31).

4	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 August 2016	71,824	137,587	209,411
Additions	-	23,638	23,638
At 31 July 2017	71,824	161,225	233,049
Depreciation
At 1 August 2016	14,365	90,908	105,273
Charge for the year	7,183	30,698	37,881
At 31 July 2017	21,548	121,606	143,154
Carrying amount
At 31 July 2017	50,276	39,619	89,895
At 31 July 2016	57,460	46,678	104,138

Included within the net book value of land and buildings above is £Nil (2016 - £Nil) in respect of freehold land and buildings and £50,276 (2016 - £57,460) in respect of long leasehold land and buildings.
 

5

Stocks

	2017 £	2016 £
Other inventories	13,388	75,800

6

Debtors

	2017 £	2016 £
Trade debtors	451,972	492,965
Other debtors	43,381	6,294
Total current trade and other debtors	495,353	499,259

Page 6

Cornerstones Education Limited

Notes to the Financial Statements for the Year Ended 31 July 2017

7

Creditors

	Note	2017 £	2016 £
Due within one year
Trade creditors		30,166	32,830
Taxation and social security		217,678	291,159
Other creditors		343,152	227,552
		590,996	551,541

8	Financial commitments, guarantees and contingencies

The total amount of financial commitments not included in the balance sheet is £243,000 (2016 - £261,000). This is due to the company having a rental operating lease commitment till 31 December 2025.

9	Transition to FRS 102

The Company has adopted FRS 102 Section 1A for the year ended 31 July 2017 and there are no requirements to restate the comparative prior year amounts. The last financial statements under previous UK GAAP were for the year ended 31 July 2016 and the date of transition to FRS 102 Section 1A was therefore 1 August 2015.

Page 7