Kids Play Ltd. - Accounts to registrar (filleted) - small 18.1

KIDS PLAY LTD.

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST JULY 2017

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

P R Sharp

J Dickson

S Elliott

SECRETARY:

P R Sharp

REGISTERED OFFICE:

11 Roebuck Way

Knowhill

Milton Keynes

Buckinghamshire

MK5 8HL

REGISTERED NUMBER:

03757366 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Alberto Di Lorenzo, FCA

AUDITORS:

HW East Midlands Audit LLP

Statutory Auditors

Woburn Court, 2 Railton Rd

Woburn Road Ind Est

Kempston

Bedfordshire

MK42 7PN

The directors present their strategic report for the year ended 31st July 2017.

REVIEW OF BUSINESS

Overall turnover increased by 1% with Childcare settings seeing an increase of 4% from £3.28m to £3.41m.

In line with the Company's strategy to become a childcare only specialist, the Company closed their last remaining play

centre in August 2016. This resulted in just one month's contribution of turnover and some non-recurring closure costs.

One off costs were also incurred for temporary office space, whilst the new head office premises were under

construction and some redundancy costs for a site closure in Bury St Edmunds.

A new joint venture arrangement opened during the year and through other joint venture's turnover continued to grow

and increase dividend contributions to the Company.

One of the greatest industry challenges is the recruitment and retention of childcare staff, owing to the number of

available qualified childcare workers being at an all-time low.

PRINCIPAL RISKS AND UNCERTAINTIES

Legislative

The Company is regulated by The Office for Standards in Education, Children's Services and Skills (OFSTED). The

Company continues to meet the high standards set out by the regulator but achieving these exacting standards comes

with challenges.

Competitive

The Company operate in a highly competitive market place, with many childcare competitors operating in the South

East. The Company relies on the name and brand that has been established which is synonymous with high quality and

nature-based play.

Financial risk

The liquidity of the Company is one of the fundamental areas that the Directors review on a regular basis. The Company

has loans from related parties and external finance in the form of bank loans and finance leases. The Company

continually reviews the interest rates that are incurred in the finance of trade and assets to obtain as lower rates as

possible to mitigate the risks.

ON BEHALF OF THE BOARD:

P R Sharp - Secretary

30th April 2018

The directors present their report with the financial statements of the company for the year ended 31st July 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of providing childcare in East Anglia and the

Home Counties.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st August 2016 to the date of this

report.

P R Sharp

J Dickson

S Elliott

Mr P R Sharp has material interests in the share capital of the parent undertaking, Rollers (UK) Limited. His interests

are detailed in the directors' report of that company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

company's auditors are aware of that information.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

P R Sharp - Secretary

30th April 2018

FIXED ASSETS

Tangible assets

4

474,858

341,755

Investments

5

550

550

475,408

342,305

CURRENT ASSETS

Stocks

3,380

5,000

Debtors

6

349,877

259,132

Cash at bank and in hand

45,286

57,395

398,543

321,527

CREDITORS

Amounts falling due within one year

7

943,453

803,518

NET CURRENT LIABILITIES

(544,910

)

(481,991

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(69,502

)

(139,686

)

CREDITORS

Amounts falling due after more than one year

8

88,762

75,699

NET LIABILITIES

(158,264

)

(215,385

)

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

(158,266

)

(215,387

)

SHAREHOLDERS' FUNDS

(158,264

)

(215,385

)

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Profit and loss has not been delivered.

The financial statements were approved by the Board of Directors on 30th April 2018 and were signed on its behalf by:

P R Sharp - Director

1.	STATUTORY INFORMATION

Kids Play Ltd. is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has net current liabilities of £526,492 and net liabilities of £203,688 as shown on the balance

sheet.

The company is supported by the company's parent and associated undertakings. The directors, having assessed

the responses of the directors of the company's parent and associated undertakings to their enquiries have no

reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the parent

and associated undertakings to continue with the current level of support.

On the basis of their assessment of the company's financial position and of the enquiries made of the directors of

the parent and associated undertakings, the company's directors have a reasonable expectation that the company

will be able to continue in operational existence for the foreseeable future. Thus they continue to adopt the going

concern basis of accounting in preparing the annual financial statements.

The financial statements are presented in sterling which is the functional currency of the company and rounded to

the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied in all years presented unless otherwise stated.

Turnover

Turnover represents amounts derived from the provision of nursery care as the services are provided. Any

income received in advance for after school care is deferred and included in current liabilities.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

10% on cost

Fixtures and fittings

-

10% on cost and Straight line over 5 years

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

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

costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and

condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and

slow-moving stock where appropriate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss, except to the

extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Grants receivable

Grants received from local authorities are credited to the profit and loss account in the year in which they

become payable.

Investments in joint ventures

Investments are recorded at historic cost less any impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 139 (2016 - 141 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Short

to

and

leasehold

property

fittings

£

£

£

COST

At 1st August 2016

1

250,111

782,394

Additions

-

68,894

149,560

At 31st July 2017

1

319,005

931,954

DEPRECIATION

At 1st August 2016

-

125,260

665,503

Charge for year

-

25,263

40,457

At 31st July 2017

-

150,523

705,960

NET BOOK VALUE

At 31st July 2017

1

168,482

225,994

At 31st July 2016

1

124,851

116,891

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1st August 2016

155,169

46,515

1,234,190

Additions

-

12,936

231,390

At 31st July 2017

155,169

59,451

1,465,580

DEPRECIATION

At 1st August 2016

75,239

26,433

892,435

Charge for year

19,982

12,585

98,287

At 31st July 2017

95,221

39,018

990,722

NET BOOK VALUE

At 31st July 2017

59,948

20,433

474,858

At 31st July 2016

79,930

20,082

341,755

The net book value of tangible fixed assets includes £ 234,543 (2016 - £ 131,956 ) in respect of assets held under

hire purchase contracts and finance leases.

5.	FIXED ASSET INVESTMENTS

Interest

in joint

venture

£

COST

At 1st August 2016

and 31st July 2017

550

NET BOOK VALUE

At 31st July 2017

550

At 31st July 2016

550

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

195,451

206,306

Doubtful debt provision

(58,982

)

(85,130

)

Amounts owed by participating interests

10,031

-

Amounts owed by joint ventures

66,352

3,735

Other debtors

25,251

22,118

Directors' current accounts

9,240

9,240

VAT

6,327

1,949

Prepayments and accrued income

96,207

100,914

349,877

259,132

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

3,704

15,741

Hire purchase contracts and finance leases

82,551

26,783

Trade creditors

508,771

498,729

Social security and other taxes

53,688

82,558

Other creditors

6,236

24,483

Owed to parent undertaking

50,073

-

Accruals and deferred income

238,430

155,224

943,453

803,518

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Loans from related companies

34,339

31,921

Hire purchase contracts and finance leases

54,423

43,778

88,762

75,699

9.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank loans

3,704

15,741

Hire purchase contracts and finance leases

136,974

70,561

140,678

86,302

The company's bank borrowings are secured by a debenture over the company's assets and an unlimited

guarantee from the parent company, Rollers (UK) Limited.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mr Alberto Di Lorenzo, FCA (Senior Statutory Auditor)

for and on behalf of HW East Midlands Audit LLP

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31st July 2017 and

31st July 2016:

2017

2016

£

£

J Dickson

Balance outstanding at start of year

4,800

(200

)

Amounts advanced

-

5,000

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

4,800

4,800

P R Sharp

Balance outstanding at start of year

4,440

(560

)

Amounts advanced

-

20,000

Amounts repaid

-

(15,000

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

4,440

4,440

12.	ULTIMATE CONTROLLING PARTY

There was no ultimate controlling party in the financial year.