The National Teaching & Advisory Service Limited
Annual report and financial statements
For the year ended 31 August 2023
The National Teaching & Advisory Service Limited
Company information
Directors
Mr T G Walker
Mrs E A Palin
Ms A Gunns
(Appointed 28 June 2023)
Secretary
Mr T G Walker
Company number
03502340
Registered office
Dean Row Court
Summerfields Village Centre
Dean Row Road
Wilmslow
Cheshire
United Kingdom
SK9 2TA
Auditor
DJH Mitten Clarke Audit Limited
St George's House
56 Peter Street
Manchester
M2 3NQ
The National Teaching & Advisory Service Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 20
The National Teaching & Advisory Service Limited
Strategic report
For the year ended 31 August 2023
- 1 -
The National Teaching & Advisory Service (NT&AS) operates within the private education sector. Its customers are almost exclusively local authorities and schools. In addition it works alongside a private fostering agency, Three Circles Fostering. Its client group are probably the most vulnerable group of children and young people in society.
Review of the business
NT&AS has continued to thrive and produce a further set of successful financial results for the year September 1st 2022 to August 31st 2023. The previous financial year was primarily concerned with recovery from the bespoke services we developed during the ‘covid period’ from which we transitioned successfully from remote learning to the renewal of direct contact with our children. After a slow start the organisation recorded a noticeable bounce back in terms of hours discharged across the service.
Principal risks and uncertainties
Principal risks and uncertainties identified last year, remain. The directors are mindful of the potential threats to future success. We are, at the same time, confident that we have the reputation and expertise to continue to provide services for which we have few competitors. The growth in education agencies in effect trespassing on our operations and undercutting our prices has been a trend that has been apparent over the past five years or more. These competitors are attractive to local authorities by providing a significantly lower level of input at a much lower cost. However, we have still managed to grow the organisation during this period. This has also coincided with an number of local authorities increasingly going out to tender. We have been successful in almost all tenders we have put forward, and local authorities remain confident in the quality of what NT&AS delivers.
Development and performance
It is our intention to continue to pursue these opportunities as and when they arise. We have noticed a contraction in the employment market, particularly in the availability of qualified teachers across the UK who are able to work for NT&AS. This is partly the consequence of covid and changing patterns of work, partly through government initiatives to compensate for the covid effect on children’s education by taking up a significant number of available teachers, and, of course, Brexit. We also anticipate future downward pressure on our pricing, together with increased costs, particularly with regards to salary and associated staff costs. Our intention is to increase the number of commissioned hours and meet these challenges with the target of maintaining turnover, and in the best case scenario increase it.
Key performance indicators
2023 2022
Revenue £13.0m £12.0m
EBITDA £1.0m £1.5m
Shareholders funds £1.6m £1.2m
Teaching hours 253,956 235,740
Other information and explanations
Significantly during this period, the organisation has been subject to many take over bids as a consequence of its financial expansion and success. Our response to that has been to transition The National Teaching & Advisory Service from a privately owned company to an Employee Ownership Trust (EOT). This decision was taken by the directors to protect the company’s future. The present directors have no immediate plans to exit the business and continue to both serve in their current roles, as well as serve as two of the three trustees. The third trustee is Allison Gunns who also serves as the organisation’s chief financial officer. The transition was a smooth one, and despite the change in ownership there are no alterations to its overall day to day management.
We look to the future optimistically, and believe we have contributed significantly to the long term viability and stability of the company by effecting this constitutional change.
The National Teaching & Advisory Service Limited
Strategic report (continued)
For the year ended 31 August 2023
- 2 -
Mr T G Walker
Director
11 March 2024
The National Teaching & Advisory Service Limited
Directors' report
For the year ended 31 August 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 August 2023.
Principal activities
The principal activity of the company under review was that of teaching, advice and support for children.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr T G Walker
Mrs E A Palin
Ms A Gunns
(Appointed 28 June 2023)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
The auditor, DJH Mitten Clarke Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
The National Teaching & Advisory Service Limited
Directors' report (continued)
For the year ended 31 August 2023
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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). 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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr T G Walker
Director
11 March 2024
The National Teaching & Advisory Service Limited
Independent auditor's report
To the members of The National Teaching & Advisory Service Limited
- 5 -
Opinion
We have audited the financial statements of The National Teaching & Advisory Service Limited (the 'company') for the year ended 31 August 2023 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
The National Teaching & Advisory Service Limited
Independent auditor's report (continued)
To the members of The National Teaching & Advisory Service Limited
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
The National Teaching & Advisory Service Limited
Independent auditor's report (continued)
To the members of The National Teaching & Advisory Service Limited
- 7 -
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the safeguarding referrals, and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Christopher Abbott FCA
Senior Statutory Auditor
For and on behalf of DJH Mitten Clarke Audit Limited
11 March 2024
Accountants and Registered Auditors
St George's House
56 Peter Street
Manchester
M2 3NQ
The National Teaching & Advisory Service Limited
Statement of income and retained earnings
For the year ended 31 August 2023
- 8 -
2023
2022
Notes
£
£
Turnover
2
13,067,751
12,078,279
Administrative expenses
(12,055,202)
(10,621,282)
Operating profit
3
1,012,549
1,456,997
Interest receivable and similar income
6
1,687
Profit before taxation
1,012,549
1,458,684
Tax on profit
7
(231,435)
(275,850)
Profit for the financial year
781,114
1,182,834
Retained earnings brought forward
1,358,666
1,525,832
Dividends
(1,350,000)
Gifts to trust
(348,053)
Retained earnings carried forward
1,791,727
1,358,666
The National Teaching & Advisory Service Limited
Balance sheet
As at 31 August 2023
31 August 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
25,860
30,396
Current assets
Debtors
9
1,619,880
1,830,660
Cash at bank and in hand
576,980
1,193,848
2,196,860
3,024,508
Creditors: amounts falling due within one year
10
(423,866)
(1,691,501)
Net current assets
1,772,994
1,333,007
Total assets less current liabilities
1,798,854
1,363,403
Provisions for liabilities
Deferred tax liability
11
7,027
4,637
(7,027)
(4,637)
Net assets
1,791,827
1,358,766
Capital and reserves
Called up share capital
13
97
97
Capital redemption reserve
14
3
3
Distributable profit and loss reserves
15
1,791,727
1,358,666
Total equity
1,791,827
1,358,766
The financial statements were approved by the board of directors and authorised for issue on 11 March 2024 and are signed on its behalf by:
Mr T G Walker
Director
Company Registration No. 03502340
The National Teaching & Advisory Service Limited
Notes to the financial statements
For the year ended 31 August 2023
- 10 -
1
Accounting policies
Company information
The National Teaching & Advisory Service Limited is a private company limited by shares incorporated in England and Wales. The registered office is Dean Row Court, Summerfields Village Centre, Dean Row Road, Wilmslow, Cheshire, United Kingdom, SK9 2TA.
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.
The financial statements cover the company as an individual entity and are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
1.2
Going concern
The truecompany, which the directors consider to be unique, has a healthy balance sheet, a strong history of profitability and strong relationships with local authority commissioners and commissioning schools.
The company focuses on the educational, social and mental health needs of vulnerable children, and it is considered highly unlikely that there would be any significant decrease in circumstances that would require children and young people to access the services we offer.
As a result, the directors are satisfied that the company is a going concern and in making this assessment have considered a period of time of a minimum of 12 months from the date of signing.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for teaching 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 trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
- 11 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over lease term
Fixtures and fittings
20% on cost
Computers
25% on cost
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
Financial assets and liabilities are offset and 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 debtors 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Basic financial liabilities
Basic financial liabilities, including creditors, 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 payments 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
- 13 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.
1.9
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 fixed 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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Hire purchase and leasing commitments
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Operating lease commitments are disclosed on note 19.
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
- 14 -
2
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Education casework
13,067,751
12,078,279
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
13,067,751
12,078,279
2023
2022
£
£
Other revenue
Interest income
-
1,687
3
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
11,850
Depreciation of owned tangible fixed assets
13,473
13,087
Loss on disposal of tangible fixed assets
1,992
-
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
2
2
Admin, finance and support services
15
15
Teachers
381
399
Total
398
416
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
4
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
9,005,183
7,831,650
Social security costs
910,629
800,393
Pension costs
338,014
230,504
10,253,826
8,862,547
The key management personnel are considered to be the directors and operations manager. The aggregate amount of compensation paid to key management personnel during the year was £174,534 (2022: £159,837)
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
55,328
59,191
Company pension contributions to defined contribution schemes
1,006
1,006
56,334
60,197
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
1,687
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
234,029
277,773
Adjustments in respect of prior periods
(4,984)
Total current tax
229,045
277,773
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
7
Taxation
2023
2022
£
£
(Continued)
- 16 -
Deferred tax
Origination and reversal of timing differences
2,390
(1,923)
Total tax charge
231,435
275,850
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,012,549
1,458,684
Expected tax charge based on the standard rate of corporation tax in the UK of 21.52% (2022: 19.00%)
217,901
277,150
Tax effect of expenses that are not deductible in determining taxable profit
18,658
2,397
Adjustments in respect of prior years
(4,984)
Deferred tax adjustments
2,390
Super deduction enhancement
(1,190)
(984)
Capital allowances
(1,340)
(2,713)
Taxation charge for the year
231,435
275,850
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
- 17 -
8
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 September 2022
6,187
12,316
83,993
102,496
Additions
198
10,730
10,928
Disposals
(18,399)
(18,399)
At 31 August 2023
6,187
12,514
76,324
95,025
Depreciation and impairment
At 1 September 2022
3,375
12,228
56,497
72,100
Depreciation charged in the year
2,250
80
11,143
13,473
Eliminated in respect of disposals
(16,408)
(16,408)
At 31 August 2023
5,625
12,308
51,232
69,165
Carrying amount
At 31 August 2023
562
206
25,092
25,860
At 31 August 2022
2,812
88
27,496
30,396
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,047,093
1,163,792
Amounts owed by group undertakings
148,700
148,700
Other debtors
340,851
438,009
Prepayments and accrued income
83,236
80,159
1,619,880
1,830,660
10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
53,636
43,446
Corporation tax
234,029
121,057
Other taxation and social security
77,320
736,414
Other creditors
29,587
684,821
Accruals and deferred income
29,294
105,763
423,866
1,691,501
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
10
Creditors: amounts falling due within one year
(Continued)
- 18 -
As security for the the group's invoice discounting facility a debenture, dated 30th January 2008 is held incorporating a fixed and floating charge over the undertaking and all property and assets past and future including goodwill, uncalled capital, buildings, fixtures, fixed plant and machinery.
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
7,027
7,599
Unpaid pension contributions
-
(2,962)
7,027
4,637
2023
Movements in the year:
£
Liability at 1 September 2022
4,637
Charge to profit or loss
2,390
Liability at 31 August 2023
7,027
As at 31 August 2023 a deferred tax liability of £7,027 (2022: £4,637) has been recognised due to the reasonable expectation of tax payable in future periods in respect of taxable temporary differences.
There is no unrecognised deferred tax.
12
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
338,014
230,504
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £Nil (2022: £23,057) were payable to the scheme at the end of the year and are included in the other creditors balance in note 13.
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
- 19 -
13
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Oridinary of £1 each
97
97
97
97
14
Capital redemption reserve
2023
2022
£
£
At the beginning and end of the year
3
3
15
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
1,358,666
1,525,832
Profit for the year
781,114
1,182,834
Dividends declared and paid in the year
-
(1,350,000)
Gifts to trust
(348,053)
-
At the end of the year
1,791,727
1,358,666
16
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
10,563
42,250
Between two and five years
10,563
10,563
52,813
17
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The National Teaching & Advisory Service Limited
Notes to the financial statements (continued)
For the year ended 31 August 2023
17
Related party transactions
(Continued)
- 20 -
In June 2023 a majority shareholding in the company was acquired by the NT&AS Employee Ownership Trust (EOT). During the year £348,503 was gifted to the EOT which controls the company, to help the trust meet its costs.
Three Circles Fostering Limited, a related company with common control
At the year end £28,715 (2022: £6,184) was owed to Three Circles Fostering Limited.
Both companies share the same offices and some services. During the year the company provided services to Three Circles Fostering Limited of Educational Casework charges of £144,000 (2022 - £135,000).
Rates and rental recharges of £90,247 (2022 - £96,808). and photocopying and other recharges of £8,845 (2022 - £12,907).
18
Ultimate controlling party
The National Teaching & Advisory Service For Looked After Children In Need Limited is regarded by the directors as being the company's ultimate parent company.
The consolidated accounts of The National Teaching & Advisory Service For Looked After Children And Children In Need Limited can be obtained from their registered office which is Dean Row Court Summerfields Village Centre, Dean Row Road, Wilmslow, Cheshire, SK9 2TA.
The ultimate controlling party is the EOT.
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