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2023-06-29-accounts

Charity registration number 1102017

Company registration number 04838548 (England and Wales)

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 JUNE 2023

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mrs Rachel Pitt Mrs Claire Osborn Mrs Jessica Brown

Mrs Jessica Brown (Appointed 10 November 2023) Mr Daniel Oliver (Appointed 10 November 2023) Mrs Sophie Lindsay (Appointed 10 November 2023) Mrs Nicole King (Appointed 10 November 2023) Mrs Catherine Edwards (Appointed 10 November 2023) Mrs Lucy Breakwell (Appointed 10 November 2023) Mr Daryl Breakwell (Appointed 10 November 2023) Mr Andrew Brown (Appointed 10 November 2023)

Charity number 1102017

Company number 04838548

Registered office

Gibbons Road Trench Telford Shropshire United Kingdom TF2 7JR

Independent examiner

Azets Column House London Road Shrewsbury SY2 6NN

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

CONTENTS

Page
Trustees report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 13

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 28 JUNE 2023

The trustees present their annual report and financial statements for the year ended 28 June 2023.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, 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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The charity's objectives are to enhance the development and education of the children primarily under statutory school age by:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake in relation to public benefit.

Achievements and performance

Trench Tots continues to maintain high numbers across all 4 childcare rooms. With the new Government Funding that has been released the last few places we had have been taken up. As it stands we are unable to take any new children 2 years and up until 2026.

Although fees have had to increase due to the minimum wage increase from April 2024, we have kept the increase as minimal as possible to allow us to remain affordable to our users. This is reflected in the number of children we have enrolled at present. No families have left following the increase in fees.

We continue working on developing our outdoor areas to enhance the children’s learning opportunities whilst playing outside. This is an ongoing project and we are looking into funding.

We are looking into having canopies in the three outdoor gardens, so will be reviewing finances to see if this is affordable. Hopefully grants available will help this project.

We continue to invest money in staff training to continue to keep them up to date and enhance their CPD.

We now have a new committee formed who are very positive and have a clear vision for the nursery's future moving forward.

Financial review

We now receive government funding for 2,3 & 4 year olds and are due to start receiving funding for 9 month olds from September 2024. This is topped up by parents to cover food and other resources.

Due to the National Minimum Wage increase and increasing utilities we reviewed fees and had a small increase in fees. For staff that are qualified to a level 3, we decided to give them a small hourly increase as recognition of completing the higher qualification.

Our savings account still holds enough to cover a months wages should it ever be needed.

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 JUNE 2023

The charity trustees aim to have sufficient funds available to continue the charity for at least three months should funding sources cease to allow time to apply for further funding.

Structure, governance and management

The charity is controlled by its governing document, the memorandum and articles of association incorporated 19 July 2003, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

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:

Mrs Rachel Pitt Mrs Claire Osborn Mrs. L J Madeley (Deceased 6 May 2023) Mrs Jessica Brown (Appointed 10 November 2023) Mr Daniel Oliver (Appointed 10 November 2023) Mrs Sophie Lindsay (Appointed 10 November 2023) Mrs Nicole King (Appointed 10 November 2023) Mrs Catherine Edwards (Appointed 10 November 2023) Mrs Lucy Breakwell (Appointed 10 November 2023) Mr Daryl Breakwell (Appointed 10 November 2023) Mr Andrew Brown (Appointed 10 November 2023)

People who are interested in the charity are recruited by word of mouth or through other trustees. Their interest in the charity is discussed with all parties. Appointments are made if new trustees are required and the perspective candidate is deemed suitable.

The Trustees report was approved by the Board of Trustees.

Mrs Rachel Pitt

Trustee Dated: 25 June 2024

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

I report to the trustees on my examination of the financial statements of Trench Tots Neighbourhood Nursery Ltd (the charity) for the year ended 28 June 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

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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:

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.

Helen Tinsley FCCA

Column House London Road Shrewsbury Shropshire SY2 6NN

Dated: 25 June 2024

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 28 JUNE 2023

**Unrestricted ** Unrestricted
funds funds
2023 2022
Notes £ £
Income and endowments from:
Charitable activities 3 643,724 518,670
Investments 4 58 82
Other income 5 - 5,086
Total income 643,782 523,838
Expenditure on:
Charitable activities 6 626,769 582,393
Net income/(expenditure) for the year/
Net movement in funds 17,013 (58,555)
Fund balances at 30 June 2022 138,270 196,825
Fund balances at 28 June 2023 155,283 138,270

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

BALANCE SHEET

AS AT 28 JUNE 2023

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Unrestricted funds		 2023
£
13,621
106,069
119,690
(23,364)		 £
69,309
96,326
165,635
(10,352)
155,283
155,283
155,283		 2022
£
12,854
96,725
109,579
(32,466)		 £
72,616
77,113
149,729
(11,459)
138,270
138,270
138,270

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 28 June 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 25 June 2024

Mrs Rachel Pitt Trustee

Mrs Jessica Brown Trustee

Company Registration No. 04838548

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 JUNE 2023

1 Accounting policies

Charity information

Trench Tots Neighbourhood Nursery Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Gibbons Road, Trench, Telford, Shropshire, TF2 7JR, United Kingdom.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, 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)” (as amended for accounting periods commencing from 1 January 2016). 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 £.

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. 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.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income, including core funding from local authority, 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. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Grants received are recognised on receipt. All grants received have not been performance related, restricted in terms of the use of the funds. All grants received in the year relate to the JRS scheme.

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 JUNE 2023

1 Accounting policies

(Continued)

1.5 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 are allocated on the portion of the asset’s use.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings 2% straight line Equipment 20% on reducing balance Office Equipment 20% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 JUNE 2023

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.13 Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objectives of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

All funds held within Trench Tots Neighbourhood Nursery are unrestricted funds.

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 JUNE 2023

1 Accounting policies

(Continued)

1.14 Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In 2022, the Charity received Coronavirus Job Retention Scheme Grant income from the Government amounting to £5,085,

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Charitable activities

Nursery Core funding Total Total
income 2023 2022
2023 2023
£ £ £ £
Charitable activities 399,709 244,015 643,724 518,670

4 Investments

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Interest receivable 58 82

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 JUNE 2023

5 Other income

**Total ** Unrestricted
funds
2023 2022
£ £
Government grants including JRS Scheme - 5,086

6 Charitable activities

Staff costs
Depreciation and impairment
Rent and rates
Insurance
Light and heat
Telephone
Post and stationery
Uniforms
Property repairs and maintenance
Staff training
Sundry expenses
Travel and entertainment
Equipment, repairs and renewals
Cleaning supplies and hygiene
Activity costs
Food
Bank charges
Other charitable expenditure
Share of governance costs (see note 7)		 Nursery
2023
£
503,482
3,306
16,123
5,668
7,904
2,115
793
1,591
5,430
4,309
691
1,475
11,213
8,529
3,991
35,618
197
3,469
615,904
10,865
626,769		 Nursery
2022
£
454,179
3,799
13,022
4,867
6,342
1,389
452
580
16,516
4,176
536
-
16,147
8,607
1,453
35,146
314
3,626
571,151
11,242
582,393

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 JUNE 2023

7 Support costs

Accountancy
Legal and professional
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
-
7,357
-
3,508
-
10,865
-
10,865		 2023
£
7,357
3,508
10,865
10,865		 2022 Basis of allocation
£
7,344 Governance
3,898 Governance
11,242
11,242

The Accountancy remuneration includes an independent examination fee of £1,200.

8 Trustees

None of the trustees received remuneration from the company during the period. There were also no reimbursements of expenses for the trustees.

9 Employees

The average monthly number of employees during the year was:

Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
31
2023
£
474,683
22,324
6,475
503,482		 2022
Number
33
2022
£
429,506
18,207
6,466
454,179

There were no employees whose annual remuneration was £60,000 or more.

10 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 JUNE 2023

11
Tangible fixed assets
Cost
At 30 June 2022
At 28 June 2023
Depreciation and impairment
At 30 June 2022
Depreciation charged in the year
At 28 June 2023
Carrying amount
At 28 June 2023
At 29 June 2022		 Land and
buildings
Equipment
Office
Equipment
£
£
£
66,769
41,183
12,303
66,769
41,183
12,303
4,006
35,135
8,499
1,335
1,210
761
5,341
36,345
9,260
61,428
4,838
3,043
62,763
6,049
3,804		 Total
£
120,255
120,255
47,640
3,306
50,946
69,309
72,616

Land and buildings comprises the cost of a purpose built nursery on Gibbons Road. The total cost of this build was £719,149, of which £652,380 were covered by grants and subsidies. The total cost to the company was £66,769.

12
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost		 2023
£
12,734
33,716		 2022
£
12,080
43,925

Financial assets measured at amortised cost consists of trade debtors and other debtors, which includes the wages control account.

Financial liabilities measured at amortised cost consists of bank loans, deferred income, trade creditors, amounts due to employees, other creditors and accruals.

13 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£
11,568
1,166
887
13,621		 2022
£
12,080
-
774
12,854

TRENCH TOTS NEIGHBOURHOOD NURSERY LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 JUNE 2023

14
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
15
Creditors: amounts falling due within one year
Notes
Bank loans
14
Other creditors
Accruals and deferred income
16
Creditors: amounts falling due after more than one year
Notes
Bank loans
14
17
Related party transactions		 2023
£
12,852
2,500
10,352		 2022
£
15,430
3,971
11,459
2023
£
2,500
8,255
12,609
23,364
2023
£
10,352		 2022
£
3,971
9,960
18,535
32,466
2022
£
11,459

There were no disclosable related party transactions during the year (2022 - none).