Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Registered number: 05925303 Charity number: 1092566
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Trustees' Report and Financial Statements
For the Year Ended 31 August 2025
Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 6 |
| Independent auditors' report on the financial statements | 7 - 9 |
| Statement of financial activities | 10 |
| Balance sheet | 11 |
| Statement of cash flows | 12 |
| Notes to the financial statements | 13 - 20 |
Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 August 2025
| Trustees | M Wanstall (appointed 26 August 2025) |
|---|---|
| Dr K Smith (appointed 8 October 2024) | |
| F Coombe (appointed 8 October 2024) | |
| E Snaith (appointed 11 September 2025) | |
| B Watkins (appointed 6 October 2025) | |
| I Brooks | |
| S Williamson (resigned 31 December 2024) | |
| D Bailey (resigned 5 March 2025) | |
| T Higgin (appointed 10 December 2025) | |
| Company registered number 05925303 Charity registered number 1092566 Registered office Homewood School & Sixthform Ashford Road Tenterden Kent TN30 6LT Company secretary T Higgin Independent auditors UHY Hacker Young Chartered Accountants Statutory Auditors Thames House Roman Square Sittingbourne Kent ME10 4BJ |
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Trustees' Report For the Year Ended 31 August 2025
The Trustees present their annual report together with the audited financial statements of the Company for the 1 September 2024 to 31 August 2025. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Home Farm Children’s Nursery Limited consists of two early years settings. Home Farm Nursery which offers full day and sessional care to children aged 6 months to 5 years and is located within the grounds of Homewood School & Sixth Form Centre, and St. Michael’s pre-school which offers sessional care to children aged 2 to 5 (term time only) and is located within the grounds of St. Michael’s Church of England Primary school.
Both Homewood School & Sixth Form Centre and St Michaels Primary School are part of the Tenterden Schools Trust.
STRUCTURE, GOVERNANCE AND MANAGEMENT
a . Constitution
Home Farm Childrens Nursery Limited is a charitable company limited by guarantee. The Memorandum and Articles of Association are its primary governing documents. The trustees of Home Farm Childrens Nursery Limited are also directors for the purposes of company law. It is a wholly owned subsidiary of Tenterden Schools Trust (Company Registration No. 07736448) which is the sole Member of the company.
Details of the trustees who served throughout the year except as noted are included in the Reference and Administrative details on page one.
During the year the trustees became aware of an historic issue concerning the formal status of the Charity dating back to 2006, long before Tenterden Schools Trust acquired Home Farm Childrens Nursery in April 2014. At that time, the original charitable trust (charity number 1092566) created a new corporate entity to take forward its activities. However, the legal transfer of assets, liabilities and operations from the trust to the new company was not completed or reported correctly. As a result, the Charity Commission has continued to treat the original trust as if it remained active, despite all charitable activities having been undertaken by the company since 2006. No final accounts were filed to show the transfer out of the trust, nor corresponding opening accounts for the company showing the transfer in. The trustees are in the process of seeking professional advice to determine the appropriate steps to regularise the position. As a consequence of the above the organisation’s name is recorded inconsistently between Companies House and the Charity Commission. For the purposes of these financial statements the trustees are treating the charitable trust number 1092566 and the limited by guarantee company no. 07736448 as if they are the same legal entity.
b. Methods of appointment or election of trustees
Directors who are willing to be appointed may be elected at an Annual General Meeting provided they are proposed by the Member (Tenterden Schools Trust) giving the requisite notice. At every Annual General Meeting one-third of the directors must retire from office but shall be eligible for re-election.
The number of directors is not subject to a maximum but shall be not less than one. The directors have resolved that at least one director shall be a representative of Tenterden Schools Trust, and that additional directors include one or more parents of children attending the nurseries and individuals who support the work of the trust with a background or interest in early years education or the community. The persons responsible for overseeing the management of the Home Farm Children’s Nursery settings are committee members, not trustees. They report to the board and attend trustee meetings.
New Trustees are recruited via notices to parents and through community engagement.
New Trustees have an induction process that includes a discussion with a member of the Board and the director who represents Tenterden Schools Trust on the board. The induction programme and resources are made available to new trustees on the Governor Hub portal.
Training needs are identified at the induction stage and through an annual skills audit.
There are close links with Tenterden Schools Trust and the primary schools within the Trust. Many of the children attending the nurseries
Page 2
Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2025
move into Year R in the Trust primary schools.
c. Organisational structure and decision-making policies
A number of new trustees were appointed during the year, leaving the following in office at the date of approval of the financial statements:
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Dr Katherine Smith - Chair
-
Mr. I Brooks
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Ms Fiona Coombe - TST Chair and representative
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Ms Brigitte Watkins - appointed June 2025
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Ms Megan Wanstall - appointed June 2025
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Ms Emily Snaith - Vice Chair appointed June 2025
Ms Traysi-Jane Higgin was appointed as Company Secretary in December 2025.
Regular minuted meetings took place throughout 2024-25. All documentation related to meetings and trustee information is stored on the Governor Hub password protected site.
d. Pay policy for key management personnel
As a subsidiary of Tenterden Schools Trust (TST), the overall management of personnel, recruitment and HR is carried out at Trust level in communication with each setting and the Home Farm Childrens Nursery (HFCN) Trust board. The CEO of TST is responsible for the overall management of each setting, attends the HFCN Trustee meetings and works with both the TST and HFCN teams to develop and implement improvements. The CFO of TST, who is now also the company secretary of Home Farm Childrens Nursery, is responsible for the finances and the budget.
Increases of pay for HFCN staff is considered by a pay review committee made up of HFCN board Trustees. This committee makes annual pay recommendations to the HFCN board.
OBJECTIVES AND ACTIVITIES
a. Policies and Objectives
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
During 2024/25 year, the following objectives were achieved:
-
Recruitment strategy for new trustees implemented with parental representation and early years education specialism now strengthening the board’s decision making.
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Strengthening of the board’s operations (more effective reporting to the board by managers of curriculum development and provision changes within their settings, all trustees expected training fully completed, increased meetings and communications with the CFO to ensure accurate budget oversight).
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St Michaels pre-school successfully moved into a new pre-school building.
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Increased fundraising activities.
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Continued improvements of outside areas at both Home Farm Nursery and St. Michael’s pre-school.
ACHIEVEMENT AND PERFORMANCE
a. Main achievements
Tenterden Schools Trust was successful in winning a DfE Condition Improvement Fund bid for St. Michael’s pre-school, securing £650k investment for a new pre-school building, which opened on the existing site in September 2025. During the demolition and new build St Michael’s pre-school continued to operate in a temporary building situated within St. Michael’s Primary School playground. Continual risk assessments and modifications ensured that safe access continued and the installation of a ramp maintained accessibility. The preschool staff managed the successful move across to the new building at the end of the summer holiday before the new term began. A bid has been secured to build a covered transition space between the indoor and outdoor of the building; the development of the outside space continues.
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2025
St. Michael’s pre-school continues to maintain its reputation in terms of good quality education and care within the community. There is a high level of retention of staff at all levels and trusted relationships are built with families. The staff continue to work to identify children’s special educational needs and work with families to sign-post support needed.
Home Farm Nursery have been focussed on developing their outdoor learning environment and now has a dedicated space for the younger children to plant and grow plants and vegetables. The pre-school area now has dedicated learning spaces that support key learning areas of the EYFS. New fencing has been installed providing higher levels of security and car-parking areas have been improved. Staffing has been reviewed regularly, with more of a strategic approach employed. New apprentices have been employed as a ‘home grown’ approach to the challenge of finding new staff members.
Both settings are full to capacity and have seen an increased number of younger children (aged 2). Provision has been modified to meet their needs. The managers have been engaged in a peer to peer review process by regularly visiting each other’s settings. This has enabled the sharing of best practice and reflective conversations about improvement. The managers have collaborated with the TST Primary Schools to attend regular EYFS team meetings. They have gained further professional support from the Ashford Early Years Federation.
The HFCN Trust board has successfully recruited new trustees to strengthen the board’s expertise and governance. Oversight of budgets is more rigorous with more reliable budget data informing the board’s decision making.
Key performance indicators explaining outputs achieved by activities
a. Accommodation
The new St. Michael’s pre-school building is providing considerably improved provision enabling adaptability and access. Easy access pathways are in place and the outdoor area has been modified. Improvements of the outside area at Home Farm Nursery provides more focus on early literacy and fencing and parking improvements have improved accessibility and safety.
b. Staffing
Staff at St. Michael’s pre-school are now more settled and able to plan and enhance their provision. The recruitment of new apprentices at Home Farm Nursery have meant that ratios are able to be fulfilled within the staffing budget. Managers have been engaged in a number of creative fundraising activities with parents, strengthening community engagement and increasing funds. Managers have been able to access staff training at low cost from local authority providers.
c. Factors relevant to achieve objectives
Numbers of children have increased to 73 children on roll at Home Farm (March 2025) while numbers remain static at St Michael’s with 37 registered (March 2025). Both units are virtually full in all areas with waiting lists and this is a result of less provision in the area. Many of our new placements have been through recommendations from other families, although some have found us via our websites which we continue to update on a regular basis.
Our parents/carers continue to use the 30-hour Government Funding, but many also top this up with additional hours/days. There are changes in the extension of the 30-hour funding over the next two years which will be very exciting for nursery settings.
Financial Review
a. Review of performance
The accounts for the year to 31 August 2025 show a 19% increase in income to £631k (2024: £529k) and with costs controlled and rising by just 6%, the overall result was a surplus of £58k (2024: deficit of £11k). The improvement is attributed to better financial practices and fee increases.
The majority of the funding continues to come from government-funded nursery places providing parents with 15 hours of free childcare per week for children aged 9 months to 4 years and 30 hours per week for children aged 3 to 4 in eligible working families. For privately funded top up hours fee increases were put in place and all parents have been charged for consumables in line with government guidance.
Fundraising in the form of grants and community activities are planned for the coming year to pay for improvements to the outside areas of the nursery schools.
b. Financial risk management
The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2025
the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
With the appointment of a director of Tenterden Schools Trust as a director on the Home Farm Children’s Nursery board, the holding company has increased oversight of the financial position and management of the nursery schools. Going forward, management reports and cash flow forecasts will be scrutinised by the Finance and Resources committee of Tenterden Schools Trust at their regular meetings.
c. Going concern
The trustees are determined to return the business to in-year surplus positions and to repay any debt to the holding company.
The trustees have increased fees for 2024-25 and 2025-26 to bring the settings in line with other local providers and costs savings will be planned and managed. Both nurseries have a good local reputation, and strong governance is provided by the relationship with Tenterden Schools Trust.
With both settings oversubscribed and a lack of pre-school provision in the area the Trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future.
d. Reserves policy
The Trustees recognise the importance of maintaining an appropriate level of reserves to ensure the ongoing financial stability of the Charity and to enable it to continue delivering its charitable objectives.
The Charity’s income is derived primarily from a combination of local authority funding and parental fees. While these income streams are relatively predictable, they remain sensitive to changes in funding rates, occupancy levels and staffing costs. The Trustees therefore consider it prudent to maintain sufficient free reserves to manage short-term fluctuations in income and expenditure, meet unforeseen costs, and allow time to respond to changes in circumstances without immediate disruption to services.
The Charity does not hold any restricted funds and therefore its reserves comprise unrestricted funds only.
The charity reported in-year deficits in 2023 and 2024 which resulted in net liabilities at the year end. The measures implemented to improve financial performance have been successful and as a result the Charity generated an in-year surplus of £58k. This has strengthened the balance sheet position, with net assets and unrestricted reserves increasing to £35k.
In establishing a formal reserves policy for the first time, the Trustees have considered:
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The level of fixed and committed costs, particularly staffing.
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The level of monthly operating expenditure.
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The risks associated with fluctuations in occupancy and funding.
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The absence of significant alternative funding sources.
The Trustees consider that a prudent level of free reserves would be equivalent to approximately three months’ operating expenditure, which would amount to around £140k based on 2024/25. This level would provide sufficient working capital to manage short-term income volatility, cover unexpected expenditure, and allow time to take corrective action if required.
At the balance sheet date, free reserves of £35k represent progress towards this objective but remain below the Trustees’ long-term target. The Trustees will therefore continue to prioritise the generation of modest operating surpluses in order to strengthen reserves to the desired level, while ensuring that resources are applied primarily to the delivery of high-quality nursery provision.
The Trustees review the reserves position at each board meeting and will formally review the reserves policy annually to ensure it remains appropriate to the Charity’s size, activities and risk profile.
PLANS FOR FUTURE PERIODS
Short term plans:
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To develop a more strategic approach to staffing, pay and training in order to further develop quality early years practice;
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To continue to improve the safety and provision of the outside areas on both sites; and
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To support all staff and children through any new transfer of MAT.
Medium term plans:
- To increase fundraising activities; and
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2025
- To work closely with TST and any future MAT to continue to enhance excellent early years provision within HFCN.
Long term plans:
- HFCN's long-term plans will be in response to the future direction of TST and any potential new trust which will become during 2026. Our long-term plan is to work with TST and any future MAT to ensure that early years provision on the St Michaels's Primary School site continues, and that HFN develops its potential to offer day-care provision to meet the child-care needs within the Tenterden and Homewood School community.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The Trustees (who are also the directors of the Company 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).
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 Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditor
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and
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- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
Auditor
The auditor, UHY Hacker Young, has indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
Dr K Smith (Chair of Trustees)
Date: 4 March 2026
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Home Farm Childrens Nursery Limited
Opinion
We have audited the financial statements of Home Farm Childrens Nursery Limited (the 'charity') for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 August 2025 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' Report has been prepared in accordance with applicable legal requirements.
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Home Farm Childrens Nursery Limited (continued)
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
Responsibilities of trustees
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditors' 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 Auditors' 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:
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we identified the laws and regulations applicable to the charity through discussions with management, and from our commercial knowledge and experience of the charity sector;
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we focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the operations of the charity, including the Companies Act 2006;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
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identified laws and regulations were communicated within the audit team and the team remained alert to instances of noncompliance throughout the audit.
We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Home Farm Childrens Nursery Limited (continued)
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested journal entries to identify unusual transactions;
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assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
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investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation;
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reading minutes of meetings of those charged with governance; and
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enquiring of management and representatives of Trustees as to actual and potential litigation and claims.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' 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 company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Allan Hickie BSc FCA (Senior statutory auditor)
for and on behalf of
UHY Hacker Young
Chartered Accountants Statutory Auditors Thames House Roman Square Sittingbourne Kent ME10 4BJ
Date: 05 March 2026
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 August 2025
| Note Income from: Charitable activities 4 Other trading activities Investments 5 Total income Expenditure on: Charitable activities 6 Total expenditure Net movement in funds Reconciliation of funds: 14 Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2025 £ 630,506 382 8 630,896 572,842 572,842 58,054 (22,855) 58,054 35,199 |
Total funds 2025 £ 630,506 382 8 630,896 572,842 572,842 58,054 (22,855) 58,054 35,199 |
Total funds 2024 £ 531,911 (3,103) 4 528,812 |
|---|---|---|---|
| 540,023 540,023 |
|||
| (11,211) | |||
| (11,644) (11,211) (22,855) |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 13 to 20 form part of these financial statements.
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited (A Company Limited by Guarantee) Registered number: 05925303
Balance Sheet As at 31 August 2025
| 2025 | 2024 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | |||
| Fixed assets | |||||
| Tangible assets | 11 | 1,776 | 1,973 | ||
| Current assets | |||||
| Debtors | 12 | 2,609 | 1,994 | ||
| Cash at bank and in hand | 52,643 | 9,545 | |||
| 55,252 | 11,539 | ||||
| Current liabilities | |||||
| Creditors: amounts falling due within one year | 13 | (21,829) | (36,367) | ||
| Net current assets / liabilities | 33,423 | (24,828) | |||
| Total net assets | 35,199 | (22,855) | |||
| Charity funds | |||||
| Restricted funds | 14 | - | - | ||
| Unrestricted funds | 14 | 35,199 | (22,855) | ||
| Total funds | 35,199 | (22,855) |
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Dr K Smith
(Chair of Trustees)
Date: 4 March 2026
The notes on pages 13 to 20 form part of these financial statements.
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Statement of Cash Flows For the Year Ended 31 August 2025
| Note Cash flows from operating activities Net cash used in operating activities 16 Cash flows from investing activities Dividends, interests and rents from investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 17 |
2025 £ 43,090 8 8 43,098 9,545 52,643 |
2024 £ 3,521 |
|---|---|---|
| 4 | ||
| 4 | ||
| 3,525 6,020 |
||
| 9,545 |
The notes on pages 13 to 20 form part of these financial statements
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited (A Company Limited by Guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2025
1. General information
Home Farm Childrens Nursery Limited is a charitable company limited by guarantee, incorporated in England and Wales. The liability of each member in the event of a winding up is limited to £1. The registered office is Homewood School & Sixthform, Ashford Road, Tenterden, Kent, TN30 6LT.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Home Farm Childrens Nursery 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.
2.2 Going concern
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 on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation of issue of the financial statements.
Having considered the current cash position and their reasonable expectations of the outlook for the year ahead, the Trustees have concluded that there are no material uncertainties over going concern and that the going concern basis remains appropriate for the preparation of the financial statements.
As explained in note 20 a change in controlling party is expected shortly after approval of these financial statements, however since the Charity is expected to continue operating normally then the new ownership is not expected to impact on the Charity's going concern status.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.4 Expenditure
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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2025
2. Accounting policies (continued)
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
Long-term leasehold property - 10% on reducing balance basis Computer equipment - 25% on reducing balance basis
2.7 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.8 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.9 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
3. Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
A historic issue discovered during the year in respect of the charity's structure is explained fully in the constitution section within the trustees' report. With the limited by guarantee company registered with Companies House and the charitable trust registered with the Charity Commission being two separate entities, professional advice is being obtained to regularise the position so that one legal entity is registered with both regulators. The financial statements have been prepared on the basis that no corporation tax liability arises on the entities profits due to the intended charitable status.
Page 14
Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2025
4. Income from charitable activities
| Nursery fees Lunches and teas |
Unrestricted funds 2025 £ 620,696 9,810 630,506 |
Total funds 2025 £ 620,696 9,810 630,506 |
Total funds 2024 £ 522,468 9,443 |
|---|---|---|---|
| 531,911 |
5. Investment income
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2025 | 2025 | 2024 | |
| £ | £ | £ | |
| Bank interest | 8 | 8 | 4 |
6. Analysis of expenditure on charitable activities Summary by fund type
| Pre-school education Analysis of expenditure by activities Pre-school education Analysis of 2024 |
Direct costs 2025 £ 521,533 455,593 |
Unrestricted funds 2025 £ 572,842 Support costs 2025 £ 51,309 84,430 |
Total 2025 £ 572,842 Total funds 2025 £ 572,842 540,023 |
Total 2024 £ 540,023 |
|---|---|---|---|---|
| Total funds 2024 £ 540,023 |
||||
7. Analysis of expenditure by activities
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2025
8. Auditors' remuneration
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Charity's auditor for the audit of the Charity's annual accounts | 4,800 | 4,200 |
9. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2024 - £NIL) .
During the year ended 31 August 2025, no Trustee expenses have been incurred (2024 - £NIL) .
10. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2025 £ 447,141 38,079 7,424 492,644 |
2024 £ 418,258 28,402 6,758 |
|---|---|---|
| 453,418 |
The average number of persons employed by the Charity during the year was as follows:
| 2025 | 2024 | |
|---|---|---|
| No. | No. | |
| Nursery staff | 25 | 25 |
No employee received remuneration amounting to more than £60,000 in either year.
The Key Management Personnel of the Charity are that of Tenterden Schools Trust, the parent company.
11. Tangible fixed assets
| Cost or valuation At 1 September 2024 At 31 August 2025 |
Long-term leasehold property £ 11,769 |
|---|---|
| 11,769 |
Page 16
Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2025
11. Tangible fixed assets (continued)
| Depreciation At 1 September 2024 Charge for the year At 31 August 2025 Net book value At 31 August 2025 At 31 August 2024 12. Debtors Trade debtors 13. Creditors: Amounts falling due within one year Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred income |
2025 £ 2,609 2025 £ 4,385 4,212 8,428 804 4,000 21,829 |
Long-term leasehold property £ 9,796 197 |
|---|---|---|
| 9,993 | ||
| 1,776 | ||
| 1,973 | ||
| 2024 £ 1,994 2024 £ 4,243 17,929 6,764 2,931 4,500 36,367 |
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Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2025
14. Statement of funds
Statement of funds - current year
| Balance at 1 | ||||
|---|---|---|---|---|
| September | Balance at 31 | |||
| 2024 | Income | Expenditure | August 2025 | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| Nursery provision | (22,855) | 630,896 | (572,842) | 35,199 |
The unrestricted funds of the Charity represent income that is not subject to specific conditions by donors and grantors as to how they may be used, along with the related expenditure.
Statement of funds - prior year
| Balance at | ||||
|---|---|---|---|---|
| 1 September | Balance at | |||
| 2023 | Income | Expenditure | 31 August 2024 | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| Nursery provision | (11,644) | 528,812 | (540,023) | (22,855) |
15. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2025 £ 1,776 55,252 (21,829) 35,199 |
Total funds 2025 £ 1,776 55,252 (21,829) |
|---|---|---|
| 35,199 |
Page 18
Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2025
15. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2024 £ 1,973 11,539 (36,367) (22,855) |
Total funds 2024 £ 1,973 11,539 (36,367) |
|---|---|---|
| (22,855) |
16. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Dividends, interests and rents from investments Increase in debtors Increase/(decrease) in creditors Net cash provided by operating activities |
2025 £ 58,054 197 (8) (661) (14,492) 43,090 |
2024 £ (11,211) |
|---|---|---|
| 6,351 (4) (772) 9,157 |
||
| 3,521 |
17. Analysis of cash and cash equivalents
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Cash in hand | 52,643 | 9,545 |
18. Analysis of changes in net debt
| At 1 | |||
|---|---|---|---|
| September | At 31 August | ||
| 2024 | Cash flows | 2025 | |
| £ | £ | ||
| £ | |||
| Cash at bank and in hand | 9,545 | 43,098 | 52,643 |
Page 19
Docusign Envelope ID: 565D3923-5F0D-4BA2-80F4-D603C24CFA4C
Home Farm Childrens Nursery Limited
(A Company Limited by Guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2025
19. Pension commitments
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. There were no outstanding contributions payable to the fund at the balance sheet date.
20. Related party transactions
Home Farm Childrens Nursery Limited is a subsidiary of Tenterden Schools Trust which is a multi-academy trust.
During the year the Nursery invoiced the Trust £3,026 (2024 - £6,168) for the provision of discounted staff nursery fees. In addition the Trust charged the Nursery with the rent and recharges of £43,957 (2024 - £64,883). Included in this balance were fees for payroll maintenance of £1,832 (2024 - £1,367). At the year end a balance of £4,212 (2024 - £17,929) was due from the Nursery to the Trust.
21. Controlling party
The ultimate controlling party of the Charity is the Tenterden Schools Trust (company number 7736448). The results of this Charity are not consolidated in the financial statements of the Tenterden Schools Trust due to being immaterial to their financial statements.
At the time of approval of these financial statements all of the academies within Tenterden Schools Trust are in the process of being rebrokered to another trust. Once these transfers have completed Tenterden Schools Trust will close. The ownership of Home Farm Childrens Nursery Limited is expected to transfer to the multi-academy trust to which the academies move to, and at that point there will be a change in the controlling party. The day-to-day activities of Home Farm Childrens Nursery Limited is expected to be unaffected by this forthcoming change.
Page 20