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2020-08-31-accounts

Registration number: 05179971

Rainbow Pre-School (Stansted)

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2020

Mansell & Co Chartered Certified Accountants 5 Ducketts Wharf South St Bishop's Stortford Herts CM23 3AR

Rainbow Pre-School (Stansted)

Contents

Company Information 1
Directors' Report 2
Accountants' Report 3
Profit and Loss Account 4
Statement of Comprehensive Income 5
Balance Sheet 6
Statement of Changes in Equity 7
Notes to the Financial Statements 8 to 10

Rainbow Pre-School (Stansted)

Company Information

Directors C Y Hardy GM Pursglove Registered office The Peter Kirk Centre St Johns Road Stansted Essex CM24 8JP Accountants Mansell & Co Chartered Certified Accountants 5 Ducketts Wharf South St Bishop's Stortford Herts CM23 3AR

Page 1

Rainbow Pre-School (Stansted)

Directors' Report for the Year Ended 31 August 2020

The directors present their report and the financial statements for the year ended 31 August 2020.

Directors of the company

The directors who held office during the year were as follows:

C Y Hardy

GM Pursglove

Principal activity

The principal activity of the company is pre-school education

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the Board on .................... and signed on its behalf by:

......................................... C Y Hardy Director

Page 2

Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of Rainbow Pre-School (Stansted) for the Year Ended 31 August 2020

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Rainbow Pre-School (Stansted) for the year ended 31 August 2020 as set out on pages 4 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/gb/en/discover/public-value/rulebook.html .

This report is made solely to the Board of Directors of Rainbow Pre-School (Stansted), as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Rainbow Pre-School (Stansted) and state those matters that we have agreed to state to the Board of Directors of Rainbow Pre-School (Stansted), as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2009/ october/factsheet-163-audit-exempt-companies.html. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Rainbow Pre-School (Stansted) and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Rainbow Pre-School (Stansted) has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Rainbow Pre-School (Stansted). You consider that Rainbow Pre-School (Stansted) is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Rainbow Pre-School (Stansted). For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Mansell & Co Chartered Certified Accountants 5 Ducketts Wharf South St Bishop's Stortford Herts CM23 3AR Date:.............................

Page 3

Rainbow Pre-School (Stansted)

Profit and Loss Account for the Year Ended 31 August 2020

Note
Turnover
Administrative expenses
Other operating income
Operating profit
Other interest receivable and similar income
Profit before tax
4
Profit for the financial year
Total
31 August
2020
£
87,780
(76,970)
2,531
13,341
185
185
13,526
13,526
Total
31 August
2019
£
87,691
(83,997)
-
3,694
152
152
3,846
3,846

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

The notes on pages 8 to 10 form an integral part of these financial statements. Page 4

Rainbow Pre-School (Stansted)

Statement of Comprehensive Income for the Year Ended 31 August 2020

Note
Profit for the year
Total comprehensive income for the year
2020
£
13,526
13,526
2019
£
3,846
3,846

The notes on pages 8 to 10 form an integral part of these financial statements. Page 5

Rainbow Pre-School (Stansted)

(Registration number: 05179971) Balance Sheet as at 31 August 2020

Note
Fixed assets
Tangible assets
5
Current assets
Debtors
6
Cash at bank and in hand
Creditors: Amounts falling due within one year
7
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
7
Net assets
Capital and reserves
Profit and loss account
Total equity
2020
£
340
567
169,164
169,731
(12,803)
156,928
157,268
(44,182)
113,086
113,086
113,086
2019
£
454
515
156,625
157,140
(13,281)
143,859
144,313
(44,753)
99,560
99,560
99,560

For the financial year ending 31 August 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on .................... and signed on its behalf by:

.........................................

C Y Hardy

Director

The notes on pages 8 to 10 form an integral part of these financial statements. Page 6

Rainbow Pre-School (Stansted)

Statement of Changes in Equity for the Year Ended 31 August 2020

At 1 September 2019
Profit for the year
Total comprehensive income
At 31 August 2020
At 1 September 2018
Profit for the year
Total comprehensive income
At 31 August 2019
Profit and loss
account
£
99,560
13,526
13,526
113,086
Profit and loss
account
£
95,714
3,846
3,846
99,560
Total
£
99,560
13,526
13,526
113,086
Total
£
95,714
3,846
3,846
99,560

The notes on pages 8 to 10 form an integral part of these financial statements. Page 7

Rainbow Pre-School (Stansted)

Notes to the Financial Statements for the Year Ended 31 August 2020

1 General information

The company is a private company limited by share capital incorporated in England and Wales.

The address of its registered office is: The Peter Kirk Centre St Johns Road Stansted Essex CM24 8JP

Authorised for issue date

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:

The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Shed

Depreciation method and rate 25% reducing balance

Page 8

Rainbow Pre-School (Stansted)

Notes to the Financial Statements for the Year Ended 31 August 2020

Cash and cash equivalents

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

Trade debtors

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

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

Trade creditors

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

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 Staff numbers

The average number of persons employed by the company (including directors) during the year, was 8 (2019 - 8).

4 Profit before tax

Arrived at after charging/(crediting)

Depreciation expense 2020
£
114
2019
£
151

Page 9

Rainbow Pre-School (Stansted)

Notes to the Financial Statements for the Year Ended 31 August 2020

5 Tangible assets

Cost or valuation
At 1 September 2019
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
At 31 August 2020
Carrying amount
At 31 August 2020
At 31 August 2019
6
Debtors
Prepayment insurance
Total current trade and other debtors
7
Creditors
Note
Due within one year
PAYE and wages
Accountancy accrual and other accruals
Due after one year
Deferred income
Other creditors
Furniture,
fittings and
equipment
£
3,962
Total
£
3,962
3,962
3,508
114
3,622
340
454
2019
£
515
3,962
3,508
114
3,622
340
454
2020
£
567
567
2020
£
555
12,248
12,803
8,130
36,052
44,182
515
2019
£
1,033
12,248
13,281
7,926
36,827
44,753

Page 10

Rainbow Pre-School (Stansted)

Detailed Profit and Loss Account for the Year Ended 31 August 2020

Turnover (analysed below)
Gross profit (%)
Administrative expenses
Employment costs (analysed below)
Establishment costs (analysed below)
General administrative expenses (analysed below)
Finance charges (analysed below)
Depreciation costs (analysed below)
Other operating income (analysed below)
Operating profit
Other interest receivable and similar income (analysed below)
Profit before tax
2020
£
87,780
100%
(64,416)
(4,608)
(7,772)
(60)
(114)
(76,970)
2,531
13,341
185
13,526
2019
£
87,691
100%
(67,178)
(4,824)
(11,784)
(60)
(151)
(83,997)
-
3,694
152
3,846

This page does not form part of the statutory financial statements. Page 11

Rainbow Pre-School (Stansted)

Detailed Profit and Loss Account for the Year Ended 31 August 2020

Turnover
Net receipts from parents - Sundry income
Funding received
Employment costs
Wages and national insurance
Pension cost
Staff recruitment and training
Establishment costs
Rent
Waste and utilities
Insurance
Consumables, renewals and maintenance
Alarm
General administrative expenses
Administrative expenses
Donations
Sundry
Cleaning
Advertising
Gifts to helpers / Entertaining
Accountancy charges
Legal and professional fees
Finance charges
Bank charges
Depreciation costs
Depreciation charge - shed
Other operating income
Grants receivable - HMRC
Other interest receivable and similar income
Interest received
2020
£
67,712
20,068
87,780
(62,949)
(1,307)
(160)
(64,416)
(1,334)
(545)
(1,309)
(1,420)
-
(4,608)
(5,924)
-
(8)
(832)
-
(90)
(750)
(168)
(7,772)
(60)
(114)
2,531
185
2019
£
5,957
81,734
87,691
(64,869)
(1,554)
(755)
(67,178)
(1,502)
(664)
(1,278)
(802)
(578)
(4,824)
(9,090)
(47)
(35)
(1,199)
(135)
(240)
(1,038)
-
(11,784)
(60)
(151)
-
152

This page does not form part of the statutory financial statements. Page 12