Company Registration No. 12117198 (England and Wales)
CHATSWORTH SCHOOLS (HIGHFIELD PREPARATORY) LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2020
PAGES FOR FILING WITH REGISTRAR
CHATSWORTH SCHOOLS (HIGHFIELD PREPARATORY) LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
CHATSWORTH SCHOOLS (HIGHFIELD PREPARATORY) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2020
31 August 2020
- 1 -
2020
Notes
£
£
Non-current assets
Intangible assets
3
6
Property, plant and equipment
4
1,791,603
1,791,609
Current assets
Trade and other receivables
5
57,844
Cash and cash equivalents
225,714
283,558
Current liabilities
6
(291,779)
Net current liabilities
(8,221)
Total assets less current liabilities
1,783,388
Non-current liabilities
7
(2,222,642)
Net liabilities
(439,254)
Equity
Called up share capital
1
Retained earnings
(439,255)
Total equity
(439,254)
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 May 2021 and are signed on its behalf by:
F Knipe
Director
Company Registration No. 12117198
CHATSWORTH SCHOOLS (HIGHFIELD PREPARATORY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2020
- 2 -
1
Accounting policies
Company information
Chatsworth Schools (Highfield Preparatory) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Part Of Crimea Office, Former Estate Office At The Great Tew Estate, Great Tew, Chipping Norton, Oxfordshire, United Kingdom, OX7 4AH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.
1.2
Going concern
When preparing these Financial Statements, the Directors have assessed the Company’s ability to continue as a going concern. The directors have undertaken an extensive assessment of the impact of Covid-19 on the business and have taken measures as necessary including the preparation of a long term cash flow forecast. As a result, the directors consider that the measures introduced, together with the financial support provided by the UK government, will ensure that the company is in a good position to withstand the economic pressures brought about by the Covid-19 pandemic, and has the ability to continue as a going concern for a period of 12 months from the date of approving these financial statements.This is the first period of accounts and the company has the support of the other group companies.
true
1.3
Reporting period
These accounts are for a
long
period as this is the first period of accounts since incorporation on
23 July
201
9
. As it is the first period of accounts there are no comparative figures to report.
1.4
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account settlement discounts.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years
CHATSWORTH SCHOOLS (HIGHFIELD PREPARATORY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 3 -
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
1.7
Property, plant and equipment
Property, plant and equipment
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost
of assets
less their residual values over their useful lives on the following bases:
Freehold land and buildings
5% straight line
Fixtures and fittings
6.67% straight line
IT equipment and software
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
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.
CHATSWORTH SCHOOLS (HIGHFIELD PREPARATORY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
CHATSWORTH SCHOOLS (HIGHFIELD PREPARATORY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 5 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.
1.15
Finance costs are expenses that are presented separately on the profit and loss account and are in relation to advance payment discounts.
These costs are recognised in profit or loss in the period in which they are incurred.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2020
Number
Total
42
3
Intangible fixed assets
Goodwill
Other Intangibles
Total
£
£
£
Cost
At 23 July 2019
Additions
1
5
6
At 31 August 2020
1
5
6
Amortisation and impairment
At 23 July 2019 and 31 August 2020
Carrying amount
At 31 August 2020
1
5
6
CHATSWORTH SCHOOLS (HIGHFIELD PREPARATORY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2020
- 6 -
4
Property, plant and equipment
Freehold land and buildings
Fixtures and fittings
IT equipment and software
Total
£
£
£
£
Cost
At 23 July 2019
Additions
1,858,874
2,025
589
1,861,488
At 31 August 2020
1,858,874
2,025
589
1,861,488
Depreciation and impairment
At 23 July 2019
Depreciation charged in the period
69,708
79
98
69,885
At 31 August 2020
69,708
79
98
69,885
Carrying amount
At 31 August 2020
1,789,166
1,946
491
1,791,603
5
Trade and other receivables
2020
Amounts falling due within one year:
£
Other receivables
57,844
6
Current liabilities
2020
£
Trade payables
116,808
Taxation and social security
67,801
Other payables
107,170
291,779
7
Non-current liabilities
2020
£
Amounts owed to group undertakings
2,222,642
A legal charge was created on 25 October 2019 by Investec Bank PLC by means of a fixed and floating charge over all the property and undertakings of the company.
CHATSWORTH SCHOOLS (HIGHFIELD PREPARATORY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2020
- 7 -
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The impact of macro-economic uncertainties on our audit
Our audit of the financial statements requires us to obtain an understanding of all relevant uncertainties, including those arising as a consequence of the effects of macro-economic uncertainties such as Covid-19. All audits assess and challenge the reasonableness of estimates made by the directors and the related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company’s future prospects and performance.
Covid-19 is amongst the most significant economic events currently faced by the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty, with the full range of possible outcomes and their impacts unknown. We applied a standardised firm-wide approach in response to these uncertainties when assessing the company’s future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company associated with this particular event.
The senior statutory auditor was William Devitt.
The auditor was Grant Thornton UK LLP.
9
Parent company
The parent company of Chatsworth Schools (Highfield Preparatory) Limited is Chatsworth Bidco Limited and the ultimate parent is Synova Capital Fund III LP. The registered office address of the ultimate parent is 55 Wells Street, London, W1T 3PT.
Consolidated group accounts are prepared by Chatsworth Topco Limited and are available upon request from the company at Part Of Crimea Office Former Estate Office At The Great Tew Estate, Great Tew, Chipping Norton, England, OX7 4AH.