Company Registration No. 11780711 (England and Wales)
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
COMPANY INFORMATION
Directors
C Lawson
(Appointed 10 March 2020)
L Hopper
(Appointed 17 July 2020)
Company number
11780711
Registered office
Tuscany House
White Hart Lane
Basingstoke
Hampshire
United Kingdom
RG21 4AF
Auditor
Azets Audit Services
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
NG9 6RZ
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 22
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 1 -
The directors present the strategic report for the Period ended 31 December 2020.
Fair review of the business
Turnover increased from £47,000 to £132,000, whilst operating losses increased by £25,000 to £100,000 for the 11 month period to 31 December 2020.
The immediate parent undertaking, Grandir UK Limited, owns over 40 nurseries in the UK.
Details of the
merge
r of
operations of these nurseries
within the group in 2021 are noted in the Director's Report
. The ultimate parent undertaking, Grandir SAS, has plans to grow the business in 2021 via acquisition of existing trading nurseries.
Principal risks and uncertainties
The business faces regulatory risk from Ofsted inspections that take place at each site every few years. A poor inspection result can temporarily compromise fee income and profitability at a single site, resulting in a negative impact on the business’ overall performance. Other risks facing the business include competition from new entrants and difficulty recruiting experienced staff in some areas.
The
pandemic outbreak of COVID-19 in 2020 has had a significant impact on
childcare provision with only children of key-workers being initially provided with childcare services.
The overall impact of COVID-19 is currently very difficult to predict
. The effect of the pandemic was to close all nurseries for 2 months and following re-opening slow the return of children to the nurseries, resulting in lower occupancy levels. However the company has utilised the Government Job Retention Scheme and the directors believe that the company has successfully managed its way through this challenging period with sensible cost control measures. The company is now seeing child occupancy levels returning towards pre-Coronavirus levels.
Other performance indicators
We have made significant progress throughout the year in relation to key elements of our strategy. The Board monitors the progress of the group rather than individual companies, the performance indicators for this can be seen in the consolidated accounts of Grandir UK Ltd.
C Lawson
Director
21 June 2021
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 2 -
The directors present their annual report and financial statements for the Period ended 31 December 2020.
Principal activities
The principal activity of the company continued to be that of children's day nuseries.
Results and dividends
The results for the Period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
J Barnett
(Resigned 10 March 2020)
C Lawson
(Appointed 10 March 2020)
L Hopper
(Appointed 17 July 2020)
A Moore
(Appointed 10 March 2020 and resigned 17 July 2020)
T Blackwell
(Appointed 22 May 2020 and resigned 30 October 2020)
Post reporting date events
The ongoing outbreak of the COVID-19 pandemic continues to lead to travel and trade restrictions including social distancing measures. The directors have considered the risk to the company's activities and it's income streams and made further disclosures concerning the impact of the pandemic in note 15 to the financial statements.
Further information concerning the risks and uncertainties facing the company following the pandemic can be found in the Strategic Report.
Future developments
On 1 April 2021 the Group headed up by Grandir UK Limited undertook a reorganisation of its activities, as a result the trade and assets of the company were hived across to The Childcare Corporation Limited, a fellow group undertaking. After this date the company ceased trading and it is the intention of the directors to strike the company off within 12 months from the date of approval of these financial statements. As such, these financial statements have been prepared on a basis other than going concern as disclosed within the accounting policies.
Auditor
Azets Audit Services were appointed as auditor to the company during the period and is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
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.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 3 -
On behalf of the board
C Lawson
Director
21 June 2021
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 4 -
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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FUTUREPATH CHILDCARE (FAREHAM) LIMITED
- 5 -
Opinion
We have audited the financial statements of Futurepath Childcare (Fareham) Limited (the 'company') for the Period ended 31 December 2020 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 FRS 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 December 2020 and of its loss for the Period 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.
Emphasis of matter - basis of preparation / financial statements prepared on a basis other than going concern
We draw attention to note 1, Accounting Policies, which describes the basis of preparation of these financial statements and highlights that these financial statements are prepared on a basis other than going concern. The basis of preparation has not impacted upon the carrying value or disclosure of amounts included within the financial statements. Our opinion is not modified in respect of this matter.
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.
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' r
eport for the financial Period 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.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FUTUREPATH CHILDCARE (FAREHAM) LIMITED
- 6 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where 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 directors' 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'
r
esponsibilities
s
tatement, 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.
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.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FUTUREPATH CHILDCARE (FAREHAM) LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Reviewing minutes of meetings of those charged with governance;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
-
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Other matters which we are required to address
In the previous accounting period the director took advantage of audit exemption under s477 of the Companies Act. Therefore the prior period financial statements were not subject to audit.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FUTUREPATH CHILDCARE (FAREHAM) LIMITED
- 8 -
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.
Mr Mitesh Thakrar (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
22 June 2021
Chartered Accountants
Statutory Auditor
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
NG9 6RZ
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 9 -
11 months
Year
ended
ended
31 December
31 January
2020
2020
Notes
£'000
£'000
Turnover
3
131
47
Cost of sales
(161)
(69)
Gross loss
(30)
(22)
Administrative expenses
(88)
(53)
Other operating income
17
Loss before taxation
(101)
(75)
Tax on loss
7
(9)
Loss for the financial Period
(110)
(75)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 10 -
11 months
Year
ended
ended
31 December
31 January
2020
2020
£'000
£'000
Loss for the Period
(110)
(75)
Other comprehensive income
-
-
Total comprehensive income for the Period
(110)
(75)
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 11 -
2020
2020
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
8
51
39
Current assets
Debtors
9
26
7
Cash at bank and in hand
19
15
45
22
Creditors: amounts falling due within one year
10
(254)
(135)
Net current liabilities
(209)
(113)
Total assets less current liabilities
(158)
(74)
Provisions for liabilities
Deferred tax liability
11
26
(26)
-
Net liabilities
(184)
(74)
Capital and reserves
Called up share capital
13
1
1
Profit and loss reserves
(185)
(75)
Total equity
(184)
(74)
The financial statements were approved by the board of directors and authorised for issue on 21 June 2021 and are signed on its behalf by:
C Lawson
Director
Company Registration No. 11780711
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 22 January 2019
Year ended 31 January 2020:
Loss and total comprehensive income for the year
-
(75)
(75)
Issue of share capital
13
1
-
1
Balance at 31 January 2020
1
(75)
(74)
Period ended 31 December 2020:
Loss and total comprehensive income for the period
-
(110)
(110)
Balance at 31 December 2020
1
(185)
(184)
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 13 -
2020
2020
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
17
10
62
Income taxes refunded/(paid)
17
Net cash inflow from operating activities
27
62
Investing activities
Purchase of tangible fixed assets
(23)
(48)
Net cash used in investing activities
(23)
(48)
Financing activities
Proceeds from issue of shares
1
Net cash (used in)/generated from financing activities
1
Net increase in cash and cash equivalents
4
15
Cash and cash equivalents at beginning of Period
15
Cash and cash equivalents at end of Period
19
15
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 14 -
1
Accounting policies
Company information
Futurepath Childcare (Fareham) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Tuscany House, White Hart Lane, Basingstoke, Hampshire, United Kingdom, RG21 4AF.
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 are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
On 1 April 2021 the Group headed up by Grandir UK Limited undertook a reorganisation of its activities, as a result the trade and assets of the company were hived across to The Childcare Corporation Limited, a fellow group undertaking. After this date the company ceased trading and it is the intention of the directors to strike the company off within 12 months from the date of approval of these financial statements. As such, these financial statements have been prepared on a basis other than going concern as disclosed within the accounting policies.
true
1.3
Reporting period
The
entity’s
reporting period
was shortened to 11 months in order that the period end was coterminous with the period end of it's parent undertaking, i.e. 31 December 2020. Consequently
t
he
comparative amounts presented in the financial statements (including
the related notes) are not entirely comparable.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for
childcare services
provided in the normal course of business
.
1.5
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:
Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Computers
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
.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 15 -
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand
.
1.8
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 balance sheet 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 debtors
, amounts due from group undertaking
and cash and bank balances, are initially measured at transaction
price
and are subsequently carried at amortised
less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
The impairment loss is recognised in profit or loss.
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
.
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,
and
loans from
fellow group companies are
initially recognised at transaction price
and
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. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised
cost.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 16 -
1.9
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.
1.10
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 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.
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 profit and loss account, 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 lease
s
asset are consumed.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 17 -
1.14
Government grants
Government grants
receivable under the Job Retention Scheme are
recognised
in the period to which the payroll contribution relates.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2020
2020
£'000
£'000
Other significant revenue
Grants received under the Job Retention Scheme
17
4
Exceptional item
2020
2020
£'000
£'000
Expenditure
Release of loan
(23)
-
5
Operating loss
2020
2020
Operating loss for the period is stated after charging/(crediting):
£'000
£'000
Government grants
(17)
Depreciation of owned tangible fixed assets
11
9
Operating lease charges
36
5
6
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2020
2020
Number
Number
11
4
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
6
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2020
2020
£'000
£'000
Wages and salaries
141
53
Social security costs
9
3
Pension costs
2
1
152
57
7
Taxation
2020
2020
£'000
£'000
Current tax
Group tax relief
(17)
Deferred tax
Origination and reversal of timing differences
26
Total tax charge
9
The actual charge for the Period can be reconciled to the expected credit for the Period based on the profit or loss and the standard rate of tax as follows:
2020
2020
£'000
£'000
Loss before taxation
(101)
(75)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
(19)
(14)
Deferred tax adjustments in respect of prior years
28
Deferred tax asset not recognised
14
Taxation charge for the period
9
-
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 19 -
8
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Total
£'000
£'000
£'000
£'000
Cost
At 1 February 2020
46
2
48
Additions
23
23
At 31 December 2020
23
46
2
71
Depreciation and impairment
At 1 February 2020
9
9
Depreciation charged in the Period
11
11
At 31 December 2020
20
20
Carrying amount
At 31 December 2020
23
26
2
51
At 31 January 2020
37
2
39
9
Debtors
2020
2020
Amounts falling due within one year:
£'000
£'000
Trade debtors
(1)
6
Amounts owed by group undertakings
17
Prepayments and accrued income
10
1
26
7
10
Creditors: amounts falling due within one year
2020
2020
£'000
£'000
Trade creditors
8
2
Amounts owed to group undertakings
193
Taxation and social security
2
1
Other creditors
17
121
Accruals and deferred income
34
11
254
135
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 20 -
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2020
Balances:
£'000
£'000
Tax losses
26
-
2020
Movements in the Period:
£'000
Liability at 1 February 2020
-
Charge to profit or loss
26
Liability at 31 December 2020
26
12
Retirement benefit schemes
2020
2020
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
2
1
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.
13
Share capital
2020
2020
2020
2020
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of 1 each
1,000
1,000
1
1
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 21 -
14
Operating lease commitments
Lessee
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:
2020
2020
£'000
£'000
Within one year
41
Between two and five years
199
In over five years
958
1,198
15
Events after the reporting date
During the
period
and since
the period end, the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. The Company has been able to continue to operate throughout this period of disruption within certain parameters, notwithstanding measures taken based upon Government advice to contain the spread of the virus, including travel bans, quarantines, and social distancing.
The UK Government has responded with monetary and fiscal interventions to stabilise economic conditions and the Company has utilised the furlough measures introduced by the Government for a number of employees.
On 1 April 2021 the Group headed up by Grandir UK Limited undertook a reorganisation of its activities, as a result the trade and assets of the company were hived across to The Childcare Corporation Limited, a fellow group undertaking. After this date the company ceased trading and it is the intention of the directors to strike the company off within 12 months from the date of approval of these financial statements. As such, these financial statements have been prepared on a basis other than going concern as disclosed within the accounting policies.
16
Ultimate controlling party
The immediate parent undertaking is Grandir UK Limited ad the ultimate parent undertaking is Grandir SAS, a company registered in France. The ultimate controlling party is Jean Emmanuel Rodocanachi by reference to his majority shareholding in Grandir SAS.
The smallest group in which the company is consolidated is Grandir UK Limited, the largest group is Grandir SAS.
The registered office of Grandir UK Limited is Tuscany House, White Hart Lane, Basingstoke, Hampshire, RG21 4AF and the registered office of Grandir SAS is 6 Allee Jean Prouve, 92110, Clichy, France.
The consolidated financial statements of Grandir UK Limited are available from Companies House.
FUTUREPATH CHILDCARE (FAREHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 22 -
17
Cash generated from operations
2020
2020
£'000
£'000
Loss for the Period after tax
(110)
(75)
Adjustments for:
Taxation charged
9
Depreciation and impairment of tangible fixed assets
11
9
Movements in working capital:
Increase in debtors
(19)
(7)
Increase in creditors
119
135
Cash generated from operations
10
62
18
Analysis of changes in net funds
1 February 2020
Cash flows
31 December 2020
£'000
£'000
£'000
Cash at bank and in hand
15
4
19
2020-12-31
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