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2022-08-31-accounts

Company registration number: 02819354 Charity registration number: 1024774

Sunninghill Preparatory School Limited

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 August 2022

Sunninghill Preparatory School Limited

Contents

Reference and Administrative Details 1 to 2
Strategic Report 3 to 5
Trustees' Report 6 to 12
Independent Auditors' Report 13 to 16
Consolidated Statement of Financial Activities 17
Consolidated Balance Sheet 18
Balance Sheet 19
Consolidated Statement of Cash Flows 20
Notes to the Financial Statements 21 to 43

Sunninghill Preparatory School Limited

Reference and Administrative Details

Chair

Miss J R Walker

Trustees

Dr A Blunt Mr A Boggis Mr D Brugge Mrs A Chittenden Mrs S Downey (appointed 1 September 2021) Mr C Keenan Mr D Perks Ms K Smith (resigned 31 October 2021) Mr B Wadey Miss J R Walker Mr J Watson (appointed 11 November 2021 and resigned 30 June 2023)

Mr J Chittenden (appointed 23 February 2023)

Senior Management / Leadership Team

Mrs Nancy Sewed, Acting Head until 31 August 2022 Mrs Eileen Akerman, Bursar Mrs Lecca Moss, Acting Deputy Head Academic from 1 September 2021 Mr Ian Stazicker, Deputy Head Pastoral Mrs Emma Sleightholme, Head of Junior Prep Mrs Sarah Smith, Head of Humanities, Designated Safeguarding Lead

Mr David Newberry, Headmaster from 1 September 2022

Charity Registration Number 1024774

Company Registration Number 02819354

The charity is incorporated in England.

Page 1

Sunninghill Preparatory School Limited

Reference and Administrative Details

Registered Office South Court South Walks Dorchester Dorset DT1 1EB Auditor Milsted Langdon LLP Motivo House Bluebell Road Yeovil Somerset BA20 2FG Solicitors Humphries Kirk 40 High West Street Dorchester Dorset DT1 1UR Bankers Barclays Bank plc 10 South Street Dorchester Dorset DT1 1BT

Page 2

Sunninghill Preparatory School Limited

Strategic Report for the Year Ended 31 August 2022

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 August 2022, in compliance with s414C of the Companies Act 2006.

Financial review

During the year ended 31 August 2022, the School made a surplus of £29,049. This was after incurring £36,258 additional costs in respect of the previous Head’s retirement on 23 August 2021 and £60,917 on unexpected essential fire safety repairs. Without these costs the School would have made a surplus of £126,224.

The School’s trading subsidiary hired out the School’s facilities for weddings during 2021/22 and has been able to pay a management charge to the School as well as make a donation, all of which total £39,597 (2021: £37,352).

This has helped the School to make capital expenditure of £26,183 during 2021/22 and continue to invest in the School’s infrastructure and technological teaching aids.

The School is committed to make savings wherever possible in operational expenditure. At the same time the School will continue to reward fairly its team of high quality professionals. The School has regular management accounts produced on the accruals basis and prudent budgets are prepared.

The consolidated Group had cash of £651,672 on its balance sheet at 31 August 2022. However, this included £175,558 for fees received in advance for 2022/23 and deposits received from parents of £98,500. Hence, the Group had £377,614 of cash to meet existing liabilities due within 2022/23.

The Group's net current assets decreased from £244,194 on 31 August 2021 to £210,869 at 31 August 2022. Even so, the Group should continue to be able to pay all its debts as they fall due.

Page 3

Sunninghill Preparatory School Limited

Strategic Report for the Year Ended 31 August 2022

Policy on reserves

In recent years the School’s policy has been to make operational surpluses of income over expenditure in order to generate sufficient net current assets by 31 August 2027 to equate to about two months’ of current annual total expenditure, which is about £338,000. In order to achieve that position, the Schools’s policy has been to increase the School’s cash at bank to meet the target Net Current Assets. That level of cash at bank would provide the financial security necessary for the School to fulfil its principal activity – the promotion and provision of education of children between the ages of 2 years and 9 months and 13 years. Sunninghill Prep School is the only independent preparatory school in the Dorchester and Weymouth area and it is important for the pupils and professional team that the School’s future is secure.

The School had bank loans of £375,133 at 31 August 2022 of which £229,097 was wholly repayable in five years. In order to meet this liability, the School must make annual surpluses of income over expenditure of about £75,000 on average for each of the next five years. This would enable the School to repay its bank borrowings and achieve its stated goal of creating net current assets of £338,000.

A Charity’s free reserves are defined as the amount of reserves on the balance sheet after excluding fixed assets and any other asset not readily convertible to cash. As at 31 August 2022 the School’s reserves were £2,138,722, including restricted funds, but the School’s fixed assets at that date amounted to £2,227,210 and so the School had a deficit of free reserves of £88,488.

The School aimed to make annual capital expenditure broadly equal to the level of the annual depreciation charge, which is currently just under £50,000 per annum. This would have maintained the School’s capital base.

Plans for future periods

Aims and key objectives for future periods

Page 4

Sunninghill Preparatory School Limited

Strategic Report for the Year Ended 31 August 2022

Principal risks and uncertainties

The Board of Governors is responsible for the management of the risks faced by the School. Detailed considerations of risk are delegated to the Estates, risk and compliance committee, which is assisted by the Senior Leadership Team. Risks are identified, assessed and controls established throughout the year.

The School maintains a whole school risk register, which covers the main areas of risk to the School, and aims to offset those risks:

The key controls used by the Charity and its subsidiary undertakings to mitigate the risks include:

Through the risk management processes established for the School, the Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

The strategic report was approved by the trustees of the charity on 28 September 2023 and signed on its behalf by:

......................................... Miss J R Walker Chairman and trustee

Page 5

Sunninghill Preparatory School Limited

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 August 2022.

Objectives and activities

Objects and aims

The Charity's objects are to promote and provide for the advancement of education of children between the ages of 2 years and 9 months and 13 years.

In setting objectives and planning the School's activities the Governors confirm they have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee-charging.

Within the objects, the School's aim is to provide a first class independent education whilst safeguarding and promoting the welfare of children, both through strong academic tuition and pastoral care, and through developing wider sporting, artistic and social skills in all its pupils.

This is intended to provide a safe and happy environment where pupils can develop at their own speed and fulfil their potential, thus helping to build self-confidence, self-motivation and develop important skills that will be valuable long after their Sunninghill careers have finished. We hope it will be an education for life.

We aim to encourage a spirit of respect and kindness, and to engender in every girl and boy a sense of responsibility for their own learning, happiness and the welfare of others.

It is our aim for pupils, staff and parents to work together as a team, to take ownership and to be proud of their School.

Our mission is to be a School where everyone feels valued and where all pupils are inspired to achieve to the best of their ability. Through our extended curriculum we aim to instil a passion for learning and striving for excellence, together with gaining an understanding of how to become responsible citizens actively helping each other. We set out to create a vibrant and ambitious School community with a family ethos.

Page 6

Sunninghill Preparatory School Limited

Trustees' Report

Objectives, strategies and activities

The financial year saw many new initiatives as set out below:

Strategies to achieve the year’s objectives:

The School improved parent communication and involvement with the school by:

Staff continued to prepare for the forthcoming ISI inspection by:

The standard of pupils’ recorded work by:

• Departmental work reviews in all subjects in the Autumn term and then reviewed in the Summer Term.

We have improved how we support our pupils’ preparing for Senior schools by:

The new staff appraisal system was put on hold with a change in head, however the SLT attended facilitator training with Mr Tim Ennion.

The afterschool area was improved by:

Page 7

Sunninghill Preparatory School Limited

Trustees' Report

Public benefit

The School’s aim is to continue to contribute to the local community in line with the Charity Commissions’ Public Benefit requirement.

We continue to support local schools and charities in a variety of ways by giving access to our facilities and by fundraising, including:

• Making bursary provision to assist pupils who would otherwise be unable to afford the School’s fees and to support current pupils whose parents are experiencing financial hardship.

• Making available the all-weather pitch to be used by local tennis clubs, Weymouth Veterans Hockey Club, Dorchester Rugby club and Dorchester Youth Football Clubs.

• Making available the School hall to local clubs, charities and organisations (U3A, Rugby Tots, Dorset Guild of Spinner & Weavers, Rock Choir, Catholic Women’s League, Repair Cafe, Space Youth Group, Dorset Beekeepers, Dorchester Lions, Dorchester Arts Centre) and churches (Indian Orthodox) at a reduced rate.

• The School’s pupils raised funds throughout the year to support local and national charities: Ukrainian appeals, Red Nose Day, Great Ormond Street Hospital, Jeans for Genes, Royal British Legion, Children in Need, Julia’s House, Mosaic, Portland Foodbank, Wear Red Day.

All income generated by making our facilities available to the community is invested into the education of current and future pupils of the School through the operation of the School’s trading subsidiary.

Bursaries and Assisted places

• Our means tested Bursary policy is designed to enable children from families, who would otherwise not be able to afford the School’s fees, to access the education we offer. We also aim to help our current parents who find themselves experiencing financial hardship, where the child’s education would be at risk. As a result, this year we provided assistance to parents to the value of £85,190 (2021 - £88,776). The School has no endowment fund from which to draw funding for these awards.

• In addition, the School offers standardised discounts to members of the Armed Forces, members of staff and siblings of current pupils.

Full details of these discounts are available on our website.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 8

Sunninghill Preparatory School Limited

Trustees' Report

Structure, governance and management

Nature of governing document

The Charity (and its subsidiary undertaking) is governed by its Memorandum and Articles of Association dating from 1993 as amended in May 2013.

The Charity has a governing body for the School. The details of this are explained below, together with information on how members of each governing body are appointed to office.

Recruitment and appointment of trustees

The Charity's elected Governors are appointed at a Meeting of the Board by nomination by a Trustee or the Head on the basis of competence, specialist skills and local availability. New Governors are inducted into the workings of the Charity and its subsidiary undertakings and the School, including Board Policy, and have the opportunity to attend external training sessions.

Organisational structure

The Governors, as the trustees of the Charity and its subsidiary undertaking, are legally responsible for the overall management and control of the School, and meet at least six times a year. The work of implementing most of their policies is carried out by the members of Governance Committees; the Finance & Business Committee (covering Finance, Audit, Marketing and Staffing), the Education Committee (covering Education, ISI compliance, and safeguarding) and the Estates, Risk & Compliance Committee (covering Risk, Health & Safety, Property). The Head and the Bursar attend meetings of the above Committees.

The day to day running of the School is delegated to the Head and Senior Leadership Team which consists of the Acting Head (Mrs Nancy Sewed), the Bursar (Mrs Eileen Akerman) the Deputy Heads (Mr Ian Stazicker and Mrs Lecca Moss), Head of Junior Prep (Mrs Emma Sleightholme) and Designated Safeguarding Lead (Mrs Sarah Smith). The aggregate employee-benefits of these key leadership personnel is reported in the notes to the accounts.

The School actively supports the attainment of the highest standards in the Independent Schools sector, partly through networking with other schools and partly through peer group studies for the evaluation of quality and performance improvement methods. We also co-operate with many local charities in our ongoing endeavours to widen public access to the schooling we can provide, to optimise the use of our cultural and sporting facilities and to awaken in our pupils an awareness of the social context of the all-round education they receive at the School.

The remuneration of key leadership personnel is set by the Board of Governors, with the policy objectives of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly and responsibly for their individual contributions to the Charity's success.

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that, where relevant, the School remains sensitive to the broader issues of pay and employment conditions elsewhere.

Delivery of the School's charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure.

Page 9

Sunninghill Preparatory School Limited

Trustees' Report

Financial instruments

Objectives and policies

The School's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the School’s policies approved by the Board of Trustees, which provide written principles on the use of financial derivatives to manage these risks. The School does not use derivative financial instruments for speculative purposes.

Cash flow risk

The School’s activities expose it primarily to the financial risks of changes in interest rates.

Interest bearing assets and liabilities are largely held at variable rates.

Credit risk

The School’s principal financial assets are bank balances and cash, trade and other receivables, and investments.

The School’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The School has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the School uses a mixture of long-term and short-term debt finance.

Page 10

Sunninghill Preparatory School Limited

Trustees' Report

Going concern

The School’s principal activity is operating a small Independent Preparatory School. In recent years, most small independent schools have linked with local senior schools or with other prep schools, or have joined Educational School Groups, in order to remain financially viable as a business, or they have closed.

In recent years, the School has suffered major one-off expenditure as a result of the retirement of a previous Head on grounds of ill-health, recruitment costs involved in the appointment of the current Head, and unexpected essential fire safety costs. These additional costs have drained cash from the School, at a time of heightened economic risk and uncertainty for prospective parents, current parents, and the School.

The factors causing heightened economic uncertainty include:

• The pandemic, which has led to more home schooling and the use of private tutors. Also, the use of private tutors has proven to be a cost-effective way for parents to obtain additional educational support for children in the state sector.

• The changing profile of the age at which children now enter the independent sector and how parents finance school fees.

• The cost-of-living crisis and the impact of the mini-budget in September 2022 on rising interest rates and the impact of this for parents.

• General uncertainty due to political and economic uncertainty.

• Political commentary about making school fees subject to VAT and independent schools paying business rates.

• The School managing increased costs of, for example, utilities and consumables.

In January 2023, the School Governors noted that the School was likely to sustain a substantial deficit in the year ended 31 August 2023 and, with falling pupil numbers as a result of the economic risk and uncertainty, with the possibility of larger deficits in subsequent years.

In view of this, the Board of Governors took the decision on 15 February 2023 to instruct educational specialists, VWV, to advise the Governors and market the school with the principal aim of putting the School in the best possible position for a successful future.

On 28 September 2023 the Governors exchanged binding contracts for the sale of the School to SHS London Limited part of the Inspired Learning Group Limited (ILG) and secured the future of the School.

The sale of the school to SHS London Limited is expected to result in funds of £75,000 for the Charity and these will be retained to meet the future liabilities of the school.

Page 11

Sunninghill Preparatory School Limited

Trustees' Report

Statement of trustees' responsibilities

The trustees (who are also the directors of Sunninghill Preparatory School Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees 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 parent charitable company and the group and of the incoming resources and application of resources, including its income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the parent charitable company and the group 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 parent charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

The annual report was approved by the trustees of the charity on 28 September 2023 and signed on its behalf by:

......................................... Miss J R Walker Chairman and trustee

Page 12

Sunninghill Preparatory School Limited

Independent Auditor's Report to the Members of Sunninghill Preparatory School Limited

Opinion

We have audited the financial statements of Sunninghill Preparatory School Limited (the 'charitable parent company') and its subsidiaries (the 'group') for the year ended 31 August 2022, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 trustees 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

Page 13

Sunninghill Preparatory School Limited

Independent Auditor's Report to the Members of Sunninghill Preparatory School Limited

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees' Report.

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:

Responsibilities of trustees

As explained more fully in the Statement of trustees' responsibilities (set out on page 12), the trustees 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 trustees 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 trustees are responsible for assessing the charity'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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 14

Sunninghill Preparatory School Limited

Independent Auditor's Report to the Members of Sunninghill Preparatory School Limited

Auditor 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Page 15

Sunninghill Preparatory School Limited

Independent Auditor's Report to the Members of Sunninghill Preparatory School Limited

Use of our report

This report is made solely to the charitable parent company's trustees, 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 group's trustees 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 charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Mr Robert Cadwallader (Senior Statutory Auditor) For and on behalf of Milsted Langdon LLP, Statutory Auditor Motivo House Bluebell Road Yeovil Somerset BA20 2FG

28 September 2023

Page 16

Sunninghill Preparatory School Limited

Consolidated Statement of Financial Activities for the Year Ended 31 August 2022 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Investment income
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
22		 Unrestricted
funds
£
50
1,958,121
106
100,357
2,058,634
(18,739)
(2,009,354)
(2,028,093)
30,541
30,541
2,101,885
2,132,426		 Restricted
funds
£
-
-
-
-
-
-
(1,492)
(1,492)
(1,492)
(1,492)
7,788
6,296		 Total
2022
£
50
1,958,121
106
100,357
2,058,634
(18,739)
(2,010,846)
(2,029,585)
29,049
29,049
2,109,673
2,138,722		 Total
2021
£
-
1,765,310
41
107,233
1,872,584
(10,526)
(1,949,288)
(1,959,814)
(87,230)
(87,230)
2,196,903
2,109,673

All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 22.

The notes on pages 21 to 43 form an integral part of these financial statements. Page 17

Sunninghill Preparatory School Limited

(Registration number: 02819354) Consolidated Balance Sheet as at 31 August 2022

Note
Fixed assets
Tangible assets
13
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
19
Net assets
Funds of the group:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
22		 2022
£
2,227,210
2,500
86,556
651,672
740,728
(529,859)
210,869
2,438,079
(299,357)
2,138,722
6,296
2,132,426
2,138,722		 2021
£
2,249,203
2,000
78,769
637,578
718,347
(474,153)
244,194
2,493,397
(383,724)
2,109,673
7,788
2,101,885
2,109,673

The financial statements on pages 17 to 43 were approved by the trustees, and authorised for issue on 28 September 2023 and signed on their behalf by:

......................................... Miss J R Walker Chairman and trustee

The notes on pages 21 to 43 form an integral part of these financial statements. Page 18

Sunninghill Preparatory School Limited

(Registration number: 02819354) Balance Sheet as at 31 August 2022

Note
Fixed assets
Tangible assets
13
Investments
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
19
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
22		 2022
£
2,227,210
100
2,227,310
2,500
117,245
600,458
720,203
(509,434)
210,769
2,438,079
(299,357)
2,138,722
6,296
2,132,426
2,138,722		 2021
£
2,249,203
100
2,249,303
2,000
109,508
599,933
711,441
(467,347)
244,094
2,493,397
(383,724)
2,109,673
7,788
2,101,885
2,109,673

The financial statements on pages 17 to 43 were approved by the trustees, and authorised for issue on 28 September 2023 and signed on their behalf by:

......................................... Miss J R Walker Chairman and trustee

The notes on pages 21 to 43 form an integral part of these financial statements. Page 19

Sunninghill Preparatory School Limited

Consolidated Statement of Cash Flows for the Year Ended 31 August 2022

Note
Cash flows from operating activities
Net cash income/(expenditure)
Adjustments to cash flows from non-cash items
Depreciation
7
Investment income
5
Working capital adjustments
Increase in stocks
15
(Increase)/decrease in debtors
16
Increase in creditors
18
Increase/(decrease) in deferred income
19
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
5
Purchase of tangible fixed assets
13
Net cash flows from investing activities
Cash flows from financing activities
Value of new loans obtained during the period
Repayment of loans and borrowings
18
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August		 2022
£
29,049
48,176
(106)
77,119
(500)
(7,787)
18,184
28,285
115,301
106
(26,183)
(26,077)
-
(75,130)
(75,130)
14,094
637,578
651,672		 2021
£
(87,230)
51,898
(41)
(35,373)
(150)
1,429
59,388
(38,979)
(13,685)
41
(34,004)
(33,963)
50,000
(27,293)
22,707
(24,941)
662,519
637,578

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 21 to 43 form an integral part of these financial statements. Page 20

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

1 Charity status

The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: South Court South Walks Dorchester Dorset DT1 1EB

These financial statements were authorised for issue by the trustees on 28 September 2023.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Sunninghill Preparatory School Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 August 2022.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a net loss for the financial year of £1,548 (2021 - loss of £115,582).

Page 21

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Going concern

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

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

As detailed in note 26, on 28 September 2023 the school’s trade and assets were sold for a consideration of £550,000. With this injection of cash, the trustees are confident the charity will be able to meet its liabilities as they fall due and therefore the accounts have been prepared on a going concern basis.

Page 22

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Judgements

In the application of the charitable company's accounting policies, which are described above, the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources.

These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. 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 if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The Governors have not made any critical judgements in the process of applying the company's accounting policies that have significant effect on the amounts recognised in the financial statements. The following are areas that are considered to be key sources of estimation uncertainty:

The economic useful lives of tangible fixed assets and their expected residual values on future disposal is estimated by the trustees based on their experience. The total carrying value of fixed assets at 31 August 2022 is £2,227,210.

Income and endowments

Fees receivable are accounted for in the period to which they relate. Fees received in advance are included as deferred income and released to the Statement of Financial Activities in the financial year to which they relate. Donations are recognised on a receivable basis where the receipt is probable and the amount can be reliably measured.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where entitlement occurs before income is received, the income is accrued. Capital grants are recognised in full when there is an unconditional entitlement to the grant.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which it has been received. Such income is only deferred when:

-The donor specifies that the grant or donation must only be used in future accounting periods; or -The donor has imposed conditions which must be met before the charity has unconditional entitlement.

Investment income

Interest receivable and other income is accounted for on the accruals basis as far as it is prudent to do so.

Page 23

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable a settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Government grants

Government grants are recognised under the accrual model and are recognised as income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

As a registered charity, the School benefits from rates relief and is generally exempt from income tax and capital gains tax, but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

Page 24

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Tangible fixed assets

Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The Governors have considered the component parts of the School's freehold land and buildings. The Governors consider the expected useful life of the majority of the component parts to be no less than 50 years and consider the estimated residual value of those parts to be no less than the current carrying value in the accounts. Those component parts with a useful life of less than 50 years are depreciated over their useful life.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Land is not depreciated, buildings are Freehold land and buildings and improvements depreciated over 50 years straight line Other improvements 20 years straight line Furniture and equipment 10 years straight line Computer equipment 3 years straight line Musical instruments 10 years straight line

Business combinations

Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO) basis.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 25

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the School has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Page 26

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Pensions and other post retirement obligations

The School contributes to the Teachers' Pension Scheme for its teaching staff at rates set by the Scheme Actuary. The scheme is a multi employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the school. In accordance with FRS 102, the scheme is accounted for as a defined contribution scheme and the employer's contribution to the pension scheme is charged to the Statement of Financial Activities.

The School also operates a defined contribution group personal plan for staff who are not eligible for the Teachers' Pension Scheme. Employer's contributions to the pension scheme are charged to the Statement of Financial Activities.

The School left Teachers' Pension on Scheme on 31 August 2021.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Recognition and measurement

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 future receipts discounted at a market rate of interest.

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price. Financial liabilities due in more than one year are initially measured at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities constituting financing transactions are initially measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Investments

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

Page 27

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

3 Income from donations and legacies

Donations and legacies;
Donations from individuals		 Unrestricted
funds
General
£
50
50		 Total
2022
£
50
50		 Total
2021
£
-
-

All of the income above was attributable to unrestricted funds in 2022.

4 Income from charitable activities

Tuition fees (incl. nursery and fledglings)
Extracurricular activities
Catering
Registration fees
Bursaries
Sibling, staff and forces discount
Homeschooling and key workers discount		 Unrestricted
funds
General
£
2,007,265
109,900
1,765
875
(85,190)
(76,494)
-
1,958,121		 Total
2022
£
2,007,265
109,900
1,765
875
(85,190)
(76,494)
-
1,958,121		 Total
2021
£
1,897,525
51,558
342
3,250
(88,776)
(80,295)
(18,294)
1,765,310

All of the income above was attributable to unrestricted funds in 2022 and 2021.

The net income of tuition fees following discounts and bursaries for the year was £1,845,581 (2021: £1,710,160).

5 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits		 Unrestricted
funds
General
£
106		 Total
2022
£
106		 Total
2021
£
41

All of the income above was attributable to unrestricted funds in 2022 and 2021.

Page 28

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

6 Other income

Hire of school buildings and grounds
Early years funding
Coronavirus grant income
Other government grant income		 Unrestricted
funds
General
£
60,429
37,720
-
2,208
100,357		 Total
2022
£
60,429
37,720
-
2,208
100,357		 Total
2021
£
49,880
40,979
15,332
1,042
107,233

All of the income above was attributable to unrestricted funds in 2022 and 2021.

7 Expenditure on raising funds

a) Costs of trading activities

Trading subsidiary costs
Allocated support costs
Costs of trading activities		 Note
9
Direct costs
£
12,190		 Unrestricted
funds
General
£
12,190
6,549
18,739
Allocated
support
costs
£
6,549		 Total
2022
£
12,190
6,549
18,739
Total
2022
£
18,739		 Total
2021
£
7,351
3,175
10,526
Total
2021
£
10,526

Page 29

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

8 Expenditure on charitable activities

Note
Teaching costs and
related expenditure
Running costs and
school
maintenance
Staff costs
Governance costs
9		 Unrestricted
funds
General
£
264,043
284,006
1,195,862
265,443
2,009,354		 Restricted
funds
£
-
1,492
-
-
1,492		 Total
2022
£
264,043
285,498
1,195,862
265,443
2,010,846		 Total
2021
£
199,404
226,786
1,297,847
225,251
1,949,288

£2,009,354 (2021 - £1,941,700) of the expenditure above was attributable to unrestricted funds and £1,492 (2021 - £1,492) attributable to restricted funds.

Page 30

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

9 Analysis of governance and support costs

Support costs allocated to raising funds

Basis of
allocation
Other
support
costs
£
Total
2022
£
Management charges
U
6,549
6,549
Support costs allocated to charitable activities
Basis of
allocation
Governance
costs
£
Other
support
costs
£
Total
2022
£
Staff costs
U
-
121,689
121,689
Motor and travel costs
U
-
29,584
29,584
Postage stationery and
printing
U
-
12,275
12,275
Telephone
U
-
3,906
3,906
Advertising and marketing U
-
48,997
48,997
Legal and professional feesU
-
4,292
4,292
Audit and accountancy
fees
U
12,953
16,852
29,805
Bank charges
U
-
1,659
1,659
Loan interest
U
-
10,268
10,268
Bad debt provision
U
-
2,968
2,968
Ipad Lease
U
-
-
-
12,953
252,490
265,443		 Basis of
allocation
Other
support
costs
£
Total
2022
£
Management charges
U
6,549
6,549
Support costs allocated to charitable activities
Basis of
allocation
Governance
costs
£
Other
support
costs
£
Total
2022
£
Staff costs
U
-
121,689
121,689
Motor and travel costs
U
-
29,584
29,584
Postage stationery and
printing
U
-
12,275
12,275
Telephone
U
-
3,906
3,906
Advertising and marketing U
-
48,997
48,997
Legal and professional feesU
-
4,292
4,292
Audit and accountancy
fees
U
12,953
16,852
29,805
Bank charges
U
-
1,659
1,659
Loan interest
U
-
10,268
10,268
Bad debt provision
U
-
2,968
2,968
Ipad Lease
U
-
-
-
12,953
252,490
265,443		 Total
2021
£
3,175
Total
2021
£
120,713
22,875
11,792
4,882
12,229
17,030
22,092
2,188
11,945
(3,527)
3,032
265,443 225,251

Basis of allocation

Reference Method of allocation U Unrestricted R Restricted

Page 31

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

10 Net incoming/outgoing resources

Net incoming/(outgoing) resources for the year include:

Operating leases - other assets
Audit fees
Other non-audit services
Depreciation of fixed assets		 2022
£
33,176
10,853
3,040
48,176		 2021
£
37,687
9,862
6,452
51,898

11 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the group during the year.

No trustees have received any reimbursed expenses from the charity during the year.

12 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Compensation payments		 2022
£
1,108,373
93,525
115,653
-
1,317,551		 2021
£
1,168,714
85,558
149,288
15,000
1,418,560

The monthly average number of persons (including senior management / leadership team) employed by the group during the year was as follows:

by the group during the year was as follows:
Teachers
Admin and Support		 2022
No
36
26
62		 2021
No
35
23
58

The full time equivalent numbers of staff for the same period was Teacher 27 (2021 26) and Administration and support 14 (2021: 13).

During the year, the group made redundancy and/or termination payments which totalled £Nil (2021 - £15,000).

No employees received emoluments of more than £60,000 during the year.

Page 32

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

The number of employees whose emoluments fell within the following bands was:

£110,001 - £120,000 2022
No
-		 2021
No
1

The total employee benefits of the key management personnel of the group were £338,217 (2021 - £424,064).

13 Tangible fixed assets

Group

Cost
At 1 September
2021
Additions
At 31 August
2022
Depreciation
At 1 September
2021
Charge for the
year
At 31 August
2022
Net book value
At 31 August
2022
At 31 August
2021		 Land and
buildings
£
2,464,528
11,622
2,476,150
313,702
18,318
332,020
2,144,130
2,150,826		 Furniture and
equipment
£
256,397
3,180
259,577
178,431
18,427
196,858
62,719
77,966		 Computer
equipment
£
92,826
8,836
101,662
74,367
10,919
85,286
16,376
18,459		 Musical
instruments
£
18,919
2,545
21,464
16,967
512
17,479
3,985
1,952		 Total
£
2,832,670
26,183
2,858,853
583,467
48,176
631,643
2,227,210
2,249,203

Page 33

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Charity
Cost
At 1 September
2021
Additions
At 31 August
2022
Depreciation
At 1 September
2021
Charge for the
year
At 31 August
2022
Net book value
At 31 August
2022
At 31 August
2021		 Land and
buildings
£
2,464,528
11,622
2,476,150
313,702
18,318
332,020
2,144,130
2,150,826		 Furniture and
equipment
£
256,397
3,180
259,577
178,431
18,427
196,858
62,719
77,966		 Computer
equipment
£
92,826
8,836
101,662
74,367
10,919
85,286
16,376
18,459		 Musical
instruments
£
18,919
2,545
21,464
16,967
512
17,479
3,985
1,952		 Total
£
2,832,670
26,183
2,858,853
583,467
48,176
631,643
2,227,210
2,249,203

14 Fixed asset investments

Charity

Shares in group undertakings and participating interests

Cost
At 1 September 2021
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Subsidiary
undertakings
£
100
100
100
100		 Total
£
100
100
100
100

Page 34

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Details of undertakings

Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:

Country of Proportion of voting Principal
Undertaking incorporation Holding rights and shares held activity
2022
2021
Subsidiary undertakings
Sunninghill Enterprises
Limited		 UK Ordinary 100%
100%		 Hire
facilities		 of

Subsidiaries

Sunninghill Enterprises Limited is a company incorporated in England, registration number 09193650. Turnover for the year was £60,429 (2021: £49,880) and expenditure for the year was £29,832 (2021: £21,528). The profit for the financial period was £30,597 (2021: £28,352) and the aggregate of capital and reserves at the end of the period was £30,697 (2021: £28,452).

15 Stock

Stocks
16 Debtors
Trade debtors
Due from group undertakings
Prepayments
Accrued income
Other debtors		 Group
2022
£
2021
£
2,500
2,000
Group
2022
£
2021
£
23,663
24,652
-
-
26,611
22,653
36,211
31,464
71
-
86,556
78,769		 Charity
2022
£
2021
£
2,500
2,000
Charity
2022
£
2021
£
20,726
22,219
3,109
5,220
26,611
22,253
66,728
59,816
71
-
117,245
109,508		 Charity
2022
£
2021
£
2,500
2,000
Charity
2022
£
2021
£
20,726
22,219
3,109
5,220
26,611
22,253
66,728
59,816
71
-
117,245
109,508
109,508

Page 35

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

17 Cash and cash equivalents

Cash on hand
Cash at bank		 Group
2022
£
2021
£
11
48
651,661
637,530
651,672
637,578		 Charity
2022
£
2021
£
11
48
600,447
599,885
600,458
599,933		 Charity
2022
£
2021
£
11
48
600,447
599,885
600,458
599,933
599,933

18 Creditors: amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social
security
Other creditors
Accruals
Deferred income		 Group
2022
£
2021
£
75,776
66,539
73,854
17,803
22,313
49,704
115,710
113,745
66,648
79,089
175,558
147,273
529,859
474,153		 Charity
2022
£
2021
£
75,776
66,539
70,976
17,803
22,313
49,704
113,460
113,745
54,062
75,683
172,847
143,873
509,434
467,347		 Charity
2022
£
2021
£
75,776
66,539
70,976
17,803
22,313
49,704
113,460
113,745
54,062
75,683
172,847
143,873
509,434
467,347
467,347

Creditors due within one year includes the following liabilities on which security has been given:

Bank loan Group
2022
£
2021
£
75,776
66,539		 Charity
2022
£
2021
£
75,776
66,539

Legal charges are held over the School's freehold property as security against outstanding bank loans.

The loan financing is in the form of secured loans with a variable interest rate which have been treated as basic financial instruments measured at amortised cost.

Deferred income

Group
Deferred income at 1 September 2021
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2022
£
147,273
175,558
(147,273)
175,558		 2021
£
186,252
147,273
(186,252)
147,273

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Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Charity
Deferred income at 1 September 2021
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2022
£
143,873
172,847
(143,873)
172,847		 2021
£
165,590
143,873
(165,590)
143,873

At the balance sheet date the charity was holding funds received in advance in relation to student fees and wedding deposits for the following year.

19 Creditors: amounts falling due after one year

Bank loans Group
2022
£
2021
£
299,357
383,724		 Charity
2022
£
2021
£
299,357
383,724

Creditors amounts falling due after more than one year includes the following liabilities on which security has been given:

security has been given:
Group Charity
2022 2021 2022 2021
£ £ £ £
Bank loan 299,357 383,724 299,357 383,724

Legal charges are held over the School's freehold property as security against outstanding bank loans.

The loan financing is in the form of secured loans with a variable interest rate which have been treated as basic financial instruments measured at amortised cost.

Legal charges are held over the School's freehold property as security against the outstanding bank loans totalling £333,492 (2021: £400,263), representing 15.55% (2021: 18.61%) of the property carrying value at 31 August 2022.

The loan financing is in the form of secured loans with a variable interest rate which have been treated as basic financial instruments measured at amortised cost. The total expense on these loans in the year was £10,255 (2021: £11,945). The market risk facing the School is that it is widely expected that interest rates will rise. Refer to the risk management section of the Report of the Governors for information as to the policies that have been put in place to manage risk.

Group

Included in the creditors are the following amounts due after more than five years:

After more than five years by instalments 2022
£
136,036		 2021
£
158,969

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Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Charity

Included in the creditors are the following amounts due after more than five years:

After more than five years by instalments 2022
£
136,036		 2021
£
158,969

20 Obligations under leases and hire purchase contracts

The total value of future minimum lease payments was as follows:

Within one year
In two to five years		 Group
2022
£
2021
£
33,176
37,687
50,233
26,853
83,409
64,540		 Charity
2022
£
2021
£
33,176
37,687
50,233
26,853
83,409
64,540		 Charity
2022
£
2021
£
33,176
37,687
50,233
26,853
83,409
64,540
64,540

21 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £115,653 (2021 - £3,672).

Page 38

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Teachers' Pension Scheme

Until 31st August 2021, the School participated in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The School withdrew from the TPS with effect from 31st August 2021 after appropriate consultation with staff.

With effect from 1st September 2021 all teaching staff at the School agreed to change their contractual terms and conditions of employment and joined the School’s new defined contribution pension scheme with Royal London.

The pension charge for the year to 31st August 2021 includes contributions payable to the TPS of £Nil (2021: £145,616) and at the year end £Nil (2021: £15,995) was accrued in respect of contributions to this scheme. All relevant Employer and Employee contributions have been made into the TPS up to and including 31st August 2021.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

Page 39

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Page 40

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

22 Funds

Group

Unrestricted funds
General
Unrestricted income funds
Restricted funds
Woodland Play area fund
Cyber Coach equipment fund
Total restricted funds
Total funds
Unrestricted funds
General
Unrestricted income funds
Restricted funds
Woodland Play area fund
Cyber Coach equipment fund
Total restricted funds
Total funds		 Balance at 1
September
2021
£
2,101,885
2,833
4,955
7,788
2,109,673
Balance at 1
September
2020
£
2,187,623
3,333
5,947
9,280
2,196,903		 Incoming
resources
£
2,058,634
-
-
-
2,058,634
Incoming
resources
£
1,872,584
-
-
-
1,872,584		 Resources
expended
£
(2,028,093)
(500)
(992)
(1,492)
(2,029,585)
Resources
expended
£
(1,958,322)
(500)
(992)
(1,492)
(1,959,814)		 Balance at 31
August 2022
£
2,132,426
2,333
3,963
6,296
2,138,722
Balance at 31
August 2021
£
2,101,885
2,833
4,955
7,788
2,109,673

The specific purposes for which the funds are to be applied are as follows:

The Woodland Play Area fund represents a donation from the School's PTFA of £5,000 which was put towards the cost of a new low ropes course during 2016/17 and is being written off over the expected useful life of the asset.

During the year ended 31 August 2016 the School received a grant from The National Lottery towards the purchase of Cyber Coach dance equipment (£9,915) and this is being written off over the expected useful life of the asset.

Page 41

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

23 Analysis of net assets between funds

Group

Group
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Unrestricted
funds
General
£
2,220,914
740,728
(529,859)
(299,357)
2,132,426
Unrestricted
funds
General
£
2,241,415
718,347
(474,153)
(383,724)
2,101,885		 Restricted
funds
£
6,296
-
-
-
6,296
Restricted
funds
£
7,788
-
-
-
7,788		 Total funds
at 31 August
2022
£
2,227,210
740,728
(529,859)
(299,357)
2,138,722
Total funds
at 31 August
2021
£
2,249,203
718,347
(474,153)
(383,724)
2,109,673

24 Analysis of net funds

Group

Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net debt
Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net debt		 At 1
September
2021
£
637,578
(66,539)
(383,724)
187,315
At 1
September
2020
£
662,519
(55,145)
(372,411)
234,963		 Financing
cash flows
£
14,094
(9,237)
84,367
89,224
Financing
cash flows
£
(24,941)
(11,394)
(11,313)
(47,648)		 At 31 August
2022
£
651,672
(75,776)
(299,357)
276,539
At 31 August
2021
£
637,578
(66,539)
(383,724)
187,315

Page 42

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

25 Related party transactions

Charity

Children of staff and Governors may attend the school. In such cases Governors pay the normal fees applicable but staff members receive a discount.

Neither the Governors nor persons connected with them received any remuneration or other benefits from the School in the year (2021: £Nil).

During the year the charity made the following related party transactions:

Sunninghill Enterprises Ltd

The School owns 100% of the £100 ordinary share capital of Sunninghill Enterprises Limited.

The trading subsidiary is due to donate profits of £30,597 (2021: £28,352) to the school within nine months of the financial year end. In addition, management charges of £9,000 (2021: £9,000) in respect of the year ended 31 August 2022 are receivable from the trading subsidiary.. At the balance sheet date the amount due from Sunninghill Enterprises Ltd was £3,109 (2021 - £5,220).

Humphries Kirk

(C Keenan, a trustee at Sunninghill Preparatory School Limited, is a partner at Humphries Kirk Solicitors)

During the year, legal advice fees of £Nil (2021: £432), including VAT, were paid to Humphries Kirk of which, C Keenan is a partner. At the balance sheet date the amount due to/from Humphries Kirk was £Nil (2021 - £Nil).

26 Non-adjusting events after the financial period

In January 2023, the trustees noted that the School was likely to sustain a substantial deficit in the year ended 31 August 2023 and, with falling pupil numbers as a result of the economic risk and uncertainty, with the possibility of larger deficits in subsequent years.

In view of this, the Board of Trustees took the decision on 15 February 2023 to instruct educational specialists, to advise the trustees and market the school with the principal aim of putting the School in the best possible position for a successful future.

On 28 September 2023 the trustees exchanged binding contracts for the sale of the School's trade and assets to SHS London Limited part of the Inspired Learning Group Limited for total consideration of £550,000. The value was agreed by an independent valuer in accordance with Section 119 of the Charities Act 2011 (as amended by the Charities Act 2022).

Included in the contract is an overage clause which means that if the School and buildings are either sold or planning permission submitted for alternate use is implemented within 5 years of the completion date the charity will receive 100% of the uplift in value over and above the total consideration of £550,000 received as part of the deal.

Page 43