**Charity registration number 1079310**
**Company registration number 3871017 (England and Wales)**
## **ELMSTEAD NURSERY LIMITED**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **ELMSTEAD NURSERY LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr Steve Higgins|
|---|---|
||Mrs Pip Higgins|
|**Secretary**|Ms C M Perkins|
|**Charity number**|1079310|
|**Company number**|3871017|
|**Registered office**|Elmcroft|
||Holly Way|
||Elmstead Market|
||Colchester|
||CO7 7YQ|
|**Independent examiner**|Rachel Skells BA FCA|
||The Old Exchange|
||64 West Stockwell Street|
||Colchester|
||Essex|
||CO1 1HE|
## **ELMSTEAD NURSERY LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the accounts|6 - 11|
## **ELMSTEAD NURSERY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
The trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "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)".
## **Objectives and activities**
We are committed to valuing every aspect of a child's education. We believe that intellectual, social, emotional and physical development are all interrelated and a child who is self assured will have the confidence to try new things and therefore extend their learning.
It is our aim that every child will experience a broad and balanced curriculum, in an environment that is happy, caring and stimulating.
## _Public benefit_
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## _Activities_
The main activities undertaken by the charity to further its charitable purposes for the public benefit was the provision of pre-school education in the form of a nursery.
## **Achievements and performance**
## _Significant activities and achievements against objectives_
During the period under review the nursery was successful in developing the potential of the children at their own pace using a planned curriculum tailored to the needs of each child by means of developmentally appropriate play activities and a high level of adult input. The curriculum leads to nationally approved learning goals which prepares the children to progress with confidence to the National Curriculum when reaching school age.
## **Financial review**
The nursery’s reserves at the start of 2023 were £61,660 (01/01/2023) and at the year-end £63,263 (31/12/2023). This represents a surplus of £1,603. The nursery is seeing positive revenue in the bank account due to child sessions with the nursery being full all year and it looks like this will continue. There are currently waiting lists being produced each term. The nursery has remained frugal with all expenditure and has always sought the best deals for the Utilities they are responsible for. The nursery has a fixed rate with British Gas until 2025 and BT until 2029.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
## _Major risks_
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
- 1 -
## **ELMSTEAD NURSERY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **Structure, governance and management**
The charity is a charitable company limited by guarantee, incorporated on 3 November 1999, as amended by special resolution on 17 January 2000. The charity was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
The directors of the company are also charity trustees for the purposes of charity law.
Elmstead Nursery is managed by a committee of Trustees and Board Members which includes a Nursery parent representative.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr Steve Higgins
Mrs Pip Higgins
## _Recruitment and appointment of trustees_
New trustees are appointed if existing trustees retire. The Trustees are local representatives.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company.
The Trustees' report was approved by the Board of Trustees.
Mr Steve Higgins **Trustee**
Mrs Pip Higgins **Trustee**
27 June 2024
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## **ELMSTEAD NURSERY LIMITED**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF ELMSTEAD NURSERY LIMITED**
I report to the trustees on my examination of the financial statements of Elmstead Nursery Limited (the charity) for the year ended 31 December 2023.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **Rachel Skells BA FCA**
The Old Exchange 64 West Stockwell Street Colchester Essex CO1 1HE
Dated: 27 June 2024
- 3 -
## **ELMSTEAD NURSERY LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2023**|**2022**|
||**Notes**|**£**|**£**|
|**Income from:**||||
|Charitable activities|**2**|147,012|161,396|
|Other trading activities|**3**|532|1,040|
|Investments|**4**|20|1|
|**Total income**||147,564|162,437|
|**Expenditure on:**||||
|Charitable activities|**5**|145,961|134,274|
|**Total expenditure**||145,961|134,274|
|**Net income and movement in funds**||1,603|28,163|
|**Reconciliation of funds:**||||
|Fund balances at 1 January 2023||61,660|33,497|
|**Fund balances at 31 December 2023**||63,263|61,660|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
- 4 -
## **ELMSTEAD NURSERY LIMITED**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2023**_
|**Notes**
**Current assets**
Stocks
**10**
Debtors
**11**
Cash at bank and in hand
**Creditors: amounts falling due within one**
**year**
**12**
**Net current assets**
**Net assets excluding pension liability**
**The funds of the charity**
Unrestricted funds|**2023**
**£**
214
2,920
66,133
69,267
(6,004)|**£**
63,263
63,263
63,263
63,263|**2022**
**£**
165
3,355
64,570
68,090
(6,430)|**£**
61,660|
|---|---|---|---|---|
|||||61,660|
|||||61,660|
|||||61,660|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the trustees on 27 June 2024
Mr Steve Higgins Mrs Pip Higgins **Trustee Trustee**
Company registration number 3871017 (England and Wales)
- 5 -
## **ELMSTEAD NURSERY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **1 Accounting policies**
## **Charity information**
Elmstead Nursery Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Elmcroft, Holly Way, Elmstead Market, Colchester, CO7 7YQ.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, being 12 months from the date of signing the financial statements. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.
Grants from the government and other agencies have been included as incoming resources from charitable activities where these amount to a contract for services.
- 6 -
## **ELMSTEAD NURSERY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Resources expended**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis and is recognised when there is a legal or constructive obligation to pay. Expenditure has been classified under headings that aggregate all costs related to the category.
Resources expended include attributable VAT, which cannot be recovered.
## **1.6 Stocks**
Stocks are stated at the lower of cost and net realisable value.
## **1.7 Financial instruments**
Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, deferred income and provisions.
## **1.8 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
## **1.9 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Income from charitable activities**
||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2023**|**2022**|
||**£**|**£**|
|**Charitable Activities**|||
|Sales within charitable activities|141,004|156,836|
|Other income|6,008|4,560|
||147,012|161,396|
- 7 -
## **ELMSTEAD NURSERY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **3 Income from other trading activities**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2023**|**2022**|
|||**£**|**£**|
||Fundraising|532|1,040|
|**4**|**Income from investments**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**2023**|**2022**|
|||**£**|**£**|
||Interest receivable|20|1|
|**5**|**Charitable activities**|||
|||**Charitable**|
**Charitable**|
|||**activities**|**activities**|
|||**2023**|**2022**|
|||**£**|**£**|
||Staff costs|118,382|108,917|
||Rent & rates|5,162|5,491|
||Snacks for children|1,250|1,023|
||Insurance|1,026|1,014|
||Light & heat|3,024|4,075|
||Repairs & maintenance|4,815|1,836|
||Printing, postage & stationery|1,478|1,194|
||Telephone & fax|868|933|
||Hot dinners|3,104|2,695|
||Travelling expenses|-|19|
||Subscriptions|146|422|
||Activity fees|2,232|2,101|
||Sundry expenses|1,228|1,590|
|||142,715|131,310|
||Share of governance costs (see note 6)|3,246|2,964|
|||145,961|134,274|
- 8 -
## **ELMSTEAD NURSERY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **6 Governance costs**
|**Governance**
**costs**
**£**
Accountancy
3,246
3,246
Analysed between
Charitable activities
3,246|**2023**
**£**
3,246
3,246
3,246|**2022 Basis of allocation**
**£**
**2,964** Governance
**2,964**
**2,964**|
|---|---|---|
The accountancy fees include £1,848 (2022: £1,680) for accounts production and independent examination fees and £1,122 (2022: £1,140) for other services provided.
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration, benefits or expenses from the charity during the year.
## **8 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
||**2023**|**2022**|
|---|---|---|
||**Number**|**Number**|
||9|9|
|**Employment costs**|**2023**|**2022**|
||**£**|**£**|
|Wages and salaries|116,135|106,421|
|Social security costs|329|846|
|Other pension costs|1,918|1,650|
||118,382|108,917|
No employees received total employee benefits of more than £60,000.
## **9 Taxation**
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
- 9 -
## **ELMSTEAD NURSERY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
|**10**
**Stocks**
Finished goods and goods for resale
**11**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Prepayments and accrued income
**12**
**Creditors: amounts falling due within one year**
Other taxation and social security
Other creditors
**13**
**Retirement benefit schemes**
**Defined contribution schemes**
Charge to profit or loss in respect of defined contribution schemes|**2023**
**£**
214
**2023**
**£**
1,428
1,492
2,920
**2023**
**£**
705
5,299
6,004
**2023**
**£**
1,918|**2022**
**£**
165|
|---|---|---|
|||**2022**
**£**
1,869
1,486|
|||3,355|
|||**2022**
**£**
1,463
4,967|
|||6,430|
|||**2022**
**£**
1,650|
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
- 10 -
## **ELMSTEAD NURSERY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **14 Unrestricted funds**
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
||**At 1 January**|**Incoming**|**Resources**|**At 31**|
|---|---|---|---|---|
||**2023**|**resources**|**expended**|**December**|
|||||**2023**|
||**£**|**£**|**£**|**£**|
|General funds|61,660|147,564|(145,961)|63,263|
|**Previous year:**|**At 1 January**|**Incoming**|**Resources**|**At 31**|
||**2022**|**resources**|**expended**|**December**|
|||||**2022**|
||**£**|**£**|**£**|**£**|
|General funds|33,497|162,437|(134,274)|61,660|
## **15 Related party transactions**
There were no disclosable related party transactions during the year (2022- none).
- 11 -