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2025-08-31-accounts

Registered number: 6535999 Charity number: 1133631

THE COTTAGE NURSERY

(A company limited by guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

THE COTTAGE NURSERY

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 6
Independent examiner's report 7 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 24

THE COTTAGE NURSERY

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2025

Trustees

Vyvyan Attwood Ella Biggs (resigned 25 November 2024) Stuart Olden James Walters Alexander Rickard (appointed 1 October 2024) Aidan Wearmouth (appointed 25 November 2024) Nina Oliver (appointed 28 July 2025)

Company registered number

6535999

Charity registered number

1133631

Registered office

Alexander Hall Watchfield Swindon Wiltshire SN6 8TS

Accountants

James Cowper Kreston Chartered Accountants Apex Forbury Road Reading Berkshire RG1 1AX

Page 1

THE COTTAGE NURSERY

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2025

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of The Cottage Nursery (the company) for the year ended 31st August 2025. The Trustees confirm that the annual report and the financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in January 2015.

Since the company qualifies as ‘small’ under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 is not required.

Objectives and activities

The Cottage Nursery offers day care, sessional care and pre-school education to children aged from 3 months to 5 years. During the reporting period 69% of the nursery’s membership were military families working or studying at the Defence Academy, several of whom were international families. This is the same percentage as in 2024. The remainder were children from the local communities of Watchfield and Shrivenham.

The aim of the nursery is to enhance the development and education of the children in its care by providing the best childcare available to the local community with a safe, secure and stimulating environment in which the children are encouraged to reach their full potential and where staff feel valued and engaged.

The nursery follows the Early Years Foundation Stage (EYFS) with its planning and children take part in activities that are both age and stage appropriate.

All children are treated equally, and British Values are embedded in the way the nursery runs, with all staff undertaking Prevent Duty training

Public Benefit

The Cottage Nursery provides care for children from both the local community and the military & civil servant families attending the Defence Academy. In so doing it welcomes children from all backgrounds and nationalities and supports children and families for whom, in some cases, their first language is not English.

The nursery supports any child with special education needs and has strong links with outside agencies provided by the local council. It also liaises with the local schools to aid the transition of children into the school system.

The nursery actively promotes a Healthy Eating Policy providing healthy snacks and a ‘home-cooked’ lunch. Help and support is offered to parents to develop their children’s eating habits.

The nursery will assist any parent who finds it hard to pay their nursery bill with a personalised payment plan and offer support to vulnerable families.

The nursery offers up to 15 hours per week funding for all working parents in the term after their child turns 9 months, term time only. From the 1st of September 2025 this increases to 30 hours per week funding for qualifying working parents. It should be noted that the funding received for such places still falls well short of the cost of providing those places.

No Trustee received any private benefit or any other remuneration from the Charity.

The Trustees have had regard to the Charity Commissions’ guidance on public benefit and follow the Charity Commission Governance Code.

Page 2

THE COTTAGE NURSERY

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Achievements and performance

The year ending 31 August 2025 marked the 21st consecutive year in which the nursery has managed its own financial records. Bookkeeping continues to be the responsibility of the Nursery Managers.

The situation regarding the nursery lease, as outlined in last year’s annual report, remains unresolved. Our previous encroachment status was deemed no longer appropriate by the Defence Academy and the Defence Infrastructure Organisation (DIO), who own the building. To date, we are still awaiting a draft lease for review and comment. The decision taken in 2024 by the Senior Leadership Team (SLT)—comprising the Management Team and the Board of Trustees—to limit major investment until this matter was settled has now been revisited, given the need for essential maintenance. We are currently obtaining quotations for improvements to the kitchen and the Cubs’ garden to ensure the continued high quality of provision.

Trustees maintain close engagement with the nursery through regular visits, during which they meet with management and staff, record observations, and escalate any issues to the Board for consideration and resolution. Over the past year, trustees have also undertaken a number of governance reviews in line with Charity Commission guidance. This work has included the development of a Trustees’ Code of Conduct, enhancements to our Business Continuity Plan and Risk Register, and a review of accreditations such as Millie’s Mark and Sun Safe. In addition, we are assessing the currency and relevance of our Memorandum and Articles of Association.

Staff professional development remains a priority. As part of our enhanced early years package, an Early Years Consultant continues to provide quarterly visits.

Infrastructure improvements have also been a focus this year. Issues with the water supply, reported in last year’s update, have been fully resolved through the installation of a new mains distribution and filtering system. A refurbishment of the nursery’s heating system is currently underway and is scheduled for completion in October 2025.

We were pleased to welcome one new apprentice this year, who is progressing in their professional development.

The nursery is governed by a Board of six trustees, including the Chairperson, Secretary, and Treasurer.

Finally, we have completed a review of our IT systems and have engaged a third-party supplier to provide technical support. We are also considering applying for Cyber Essentials certification to further strengthen our digital security.

Financial Review

A statement of the financial position and details of income and expenditure is provided at each Trustee meeting where it is reviewed by both trustees and management. Reserves have built up over the years to provide funds for major improvements in the nursery, to provide a buffer for unexpected events and for redundancy payments and closedown costs in the unlikely event of the wind-up of the Nursery. During the year we undertook a review of our reserving policy which identified that a buffer of around £300,000 was sufficient to meet all anticipated costs and risks.

During the year we have continued to protect and grow the funds on deposit by ensuring monies on deposit with the Dudley Building Society, the Cambridge Building Society and the Charity Bank are all on advantageous terms. We have also further diversified our investments by opening two accounts with the Hampshire Trust. Collectively the total with these 4 organisations is over £280,000.

Our regular banking is with Lloyds where we operate a current account and an interest-bearing Reserve Account.

Fees are regularly reviewed and are fixed at a level that is expected to raise sufficient revenue to cover all necessary expenditure whilst remaining competitive within the local area.

Page 3

THE COTTAGE NURSERY

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

The nursery receives Nursery Education Funding for qualifying children between 9 months and 4 years. This has been extended considerably in the past year and further extended for the start of the new year. The funding level, whilst determined by the Government is fixed locally by Oxfordshire County Council and varies between age groups. At the older ages the funding is well below the rate the Nursery charges for unfunded hours. This is a matter which is beyond the nursery’s control.

In 2023/4 the Income from funded hours represented 25% of regular income. In 2024/5 this has increased to 40% and in 2025/6 is forecast to be around 46% of regular income.

Although the Nursery reviews fees regularly in relation to overall income needs and with a close eye on remaining competitive within the local area, as can be seen, the impact of fees increases is diminished because of the increase in the number of hours ‘paid for’ by Oxfordshire.

The nursery is fully compliant with both the National Living Wage and Pension Auto-Enrolment. The significant increase in the National Living Wage and the changes to National Insurance has put an additional strain on the Nursery but we are delighted to report that a consistency in child numbers throughout the year at the Nursery, and prudent management of expenses plus the decision to temporarily defer any major improvements because of the uncertainty over the lease, has enabled the Nursery to once again make a operating surplus this year which the Trustees would like to see invested back into the nursery.

The encroachment status is covered above. The Defence Academy currently requires all maintenance and works to the nursery building and infrastructure to be undertaken by their appointed contractors. Whilst we have had good support under this arrangement to date, this is something that we will be reviewing under the new lease arrangement being proposed by the DIO. Our buildings and facilities continue to be well maintained, and we have recently had a new fire alarm system fitted to comply with current regulations.

The nursery is run as a self-funding body.

Page 4

THE COTTAGE NURSERY (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Structure, governance and management

a. Constitution

The Cottage Nursery is registered as a charitable company limited by guarantee (number 6535999). .

b. Organisational structure

The nursery is run jointly by two Managers, a Deputy Manager, and four Room Supervisors. All bookkeeping functions continue to be conducted in house however the payroll continues to be prepared by an outside Payroll Agency, and a firm of Accountants is responsible for preparing the year end accounts

Health & Safety is looked after jointly by the two Managers and the Deputy Manager; all fire related checks and PAT testing are carried out by Serco.

There are five Designated Safeguarding Leads, with all staff trained on Safeguarding and Prevent.

The Managers report to the Trustees who meet regularly (every 6 weeks); minutes of these meetings are kept and are available to all staff and parents as they act as a record of the nursery’s official business. Nursery staff are represented at Trustee meetings by the nursery Managers; this ensures a good and open flow of communication. Declarations of Interest are recorded when applicable.

c. Training & induction of Trustees and staff

The responsibilities of the Trustees are documented in the constitution. We have detailed role descriptions for the Trustees and the Chair. Trustees are expected to serve a minimum of two years to a maximum of six years in post and are generally appointed from within the local community. Their appointment is ratified at the annual AGM. Trustees are expected to spend time during the working day at the nursery to familiarise themselves with the day-to-day operation and to meet the members of staff. Copies of the policies and procedures are made available to them. All Trustees are subject to the same level of checks, including enhanced DBS and EY2 checks, as members of staff.

The majority of staff are qualified to a minimum of NVQ level 3 in childcare (or equivalent). However, staff are chosen not just for their qualifications but also for their individual caring skills. All staff are actively encouraged to continue to obtain new qualifications and further their learning. Safeguarding and first aid training are mandatory.

d. Risk Management

Regular risk assessments are carried out by the Managers; daily checks are done by the staff in all areas of the nursery.

The Trustees have assessed the major risks to which the nursery is exposed, in particular those related to the operations and finances, and are satisfied that systems and procedures are in place to mitigate exposure to major risks. The risk register is reviewed on a rolling basis as part of the Trustees meetings.

Safeguarding and Prevent training are mandatory to level one for all staff. All staff must have a current DBS which is renewed every three years, they must also declare their suitability each term, this extends to ‘suitability by association’.

All outside agencies working regularly within the nursery are required to have a current DBS and must declare their on-going suitability. They must also have suitable insurance cover.

Both Managers and the Chair of the Trustees have completed ‘Safer Recruitment’ training and SR practice is followed with every new recruitment of both staff and Trustees

Page 5

THE COTTAGE NURSERY (A company limited by guarantee)

;

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Plans for the future

The management structure continues to work well and there are no plans to alter this.

Whilst any high-level capital expenditure remains under review due to the current encroachment / lease agreement discussions with the Defence Academy and DIO, we will continue to invest in the setting to maintain our current high quality of provision. We continue to review our funds on deposit to ensure they are protected whilst maximising their growth potential.

We will continue to invest in training and development of staff so that they not only fully equipped to meet Statutory requirements but also in aspects of child development and care that extend the reach of the Nursery.

Statement of Trustees’ responsibilities

The Trustees (who are also Directors of The Cottage Nursery for the purposes of company law) are responsible for preparing the Trustee’s report and the financial statements in accordance with applicable flaw 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 statemenis unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. in preparing these financial statements the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and declaration of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

----- Start of picture text -----
Stuart Olden
Chair of Trustees
Date ZF Aloveule ZOtS
----- End of picture text -----

Page 6

THE COTTAGE NURSERY (A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2025

Independent Examiner's Report to the Trustees of The Cottage Nursery ('the Company')

I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 August 2025.

Responsibilities and Basis of Report

As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company 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 Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner's Statement

Since the Company'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 The institute of Chartered Accountants in England and Wales, 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:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Page 7

THE COTTAGE NURSERY (A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report.

Signed:

Dated: 2 December 2025

Alexander Peal BSc(Hons) FCA DChA

James Cowper Kreston Chartered Accountants Apex Forbury Road Reading Berkshire RG1 1AX

Page 8

THE COTTAGE NURSERY

(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
2
Other trading activities
4
Investments
3
Other income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net income
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Unrestricted
funds
2025
£
667,304
362
9,418
-
677,084
639,059
639,059
38,025
38,025
396,603
434,628
Total
funds
2025
£
667,304
362
9,418
-
677,084
639,059
639,059
38,025
38,025
396,603
434,628
Total
funds
2024
£
547,007
274
4,254
92
551,627
567,721
567,721
(16,094)
(16,094)
412,697
396,603

The notes on pages 12 to 24 form part of these financial statements.

Page 9

27 November 2025

THE COTTAGE NURSERY

(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
17
Cash flows from investing activities
Interest
Purchase of intangible assets
Net cash provided by/(used in) 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
18
The notes on pages 12 to 24 form part of these financial statements
2025
£
62,733
9,418
-
9,418
72,151
311,455
383,606
2024
£
(9,220)
4,254
(303)
3,951
(5,269)
316,724
311,455

Page 11

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1. Accounting policies

1.1 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.

The Cottage Nursery 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.

1.2 Company status

The charity is a private company limited by guarantee and incorporated in England and Wales. The address of its registered office and principal place of business is Alexander Hall, Watchfield, Swindon, Wiltshire, SN6 8TS. The members of the company are the parents who elect the Trustees named on page 1, to run the company on their behalf. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

1.3 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 Company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

1.4 Income

All income is recognised once the Company 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.

The Nursery receives a grant each term from Oxfordshire County Council which pays for some children to receive up to 15 or 30 hours of care at the Nursery each week. The grant is applied for on a termly basis and is recognised in the financial statements when the Nursery becomes entitled to receive the income.

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.

Page 12

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1. Accounting policies (continued)

1.5 Expenditure (continued)

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

1.6 Donated services

The Defence Academy of the United Kingdom bears certain costs on behalf of the Cottage Nursery. These costs are not separate and identifiable from those of the Academy itself and have therefore not been recognised in the accounts as donated services but are disclosed here as such.

Fundraising costs included in costs of activities to generate funds are included in donated services.

1.7 Value added tax

The Nursery is currently not registered for VAT therefore all VAT is written off to the Statement of Financial Activities as incurred.

1.8 Tangible fixed assets and depreciation

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives.

Depreciation is provided on the following bases:

1.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.11 Liabilities

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it as received as advanced payments for the goods or services it must provide.

Page 13

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1. Accounting policies (continued)

1.12 Pensions

The Comapny operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

1.13 Financial instrument

The Company 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.

1.14 Critical accounting estimates and areas of judgement

Estimates and judgements 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:

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial tear are discussed below.

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Tangible fixed assets:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and the projected disposal values.

Page 14

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

2. Income from charitable activities

Unrestricted
funds
2025
£
Fees and deposits
382,946
Grants
284,358
667,304
Total 2024
547,007
3.
Investment income
Unrestricted
funds
2025
£
Bank interest received
9,418
Total 2024
4,254
4.
Income from other trading activities
Income from fundraising events
Unrestricted
funds
2025
£
Fundraising
362
Total 2024
274
Total
funds
2025
£
382,946
284,358
667,304
547,007
Total
funds
2025
£
9,418
4,254
Total
funds
2025
£
362
274
Total
funds
2024
£
396,046
150,961
547,007
Total
funds
2024
£
4,254
Total
funds
2024
£
274

Page 15

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

5. Other incoming resources

Other income
Total 2024
Unrestricted
funds
2025
£
-
92
Total
funds
2025
£
-
92
Total
funds
2024
£
92

6. Analysis of expenditure on charitable activities Summary by fund type

Unrestricted
funds
2025
£
Nursery costs
635,639
Governance costs
3,420
639,059
Total 2024
567,721
Total
2025
£
635,639
3,420
639,059
567,721
Total
2024
£
563,971
3,750
567,721

Page 16

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

7. Analysis of expenditure by activities

Nursery costs
Governance costs
Total 2024
Activities
undertaken
directly
2025
£
635,639
-
635,639
563,971
Support
costs
2025
£
-
3,420
3,420
3,750
Total
funds
2025
£
635,639
3,420
639,059
567,721
Total
funds
2024
£
563,971
3,750
567,721

Analysis of direct costs

Staff costs
Depreciation
Staff training and recruitment
Nursery consumables
Insurance
Premises expenses
Printing, postage, stationery and advertising
Computer expenses
Travel expenses
Clothing costs
Subscriptions
Sundry expenses
Bank charges
Payroll charges
Charitable donation
Consultancy fees
Total
funds
2025
£
526,293
30,186
1,816
47,183
2,919
2,164
666
1,351
-
664
1,690
13,332
98
1,601
4,476
1,200
635,639
Total
funds
2024
£
471,909
30,188
1,652
35,895
2,887
2,151
547
1,039
76
484
1,511
12,868
120
1,444
-
1,200
563,971

Page 17

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Governance costs
8.
Independent examiner's remuneration
Fees payable to the Company's independent examiner for the independent
examination of the Company's annual accounts
9.
Staff costs
Wages and salaries
Social security costs
Other pension costs
Total
funds
2025
£
3,420
2025
£
3,420
2025
£
477,006
37,957
11,330
526,293
Total
funds
2024
£
3,750
2024
£
3,240
2024
£
426,408
34,965
10,536
471,909

The average number of persons employed by the Company during the year was as follows:

2025 2024
No. No.
20 19

No employee received remuneration amounting to more than £60,000 in either year.

During the year the remuneration and benefits received by key management personnel totalled £160,952 (2024: £120,769)

Page 18

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

10. 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).

11. Tangible fixed assets

Cost or valuation
At 1 September 2024
At 31 August 2025
Depreciation
At 1 September 2024
Charge for the year
At 31 August 2025
Net book value
At 31 August 2025
At 31 August 2024
Debtors
Due within one year
Other debtors
Fixtures and
fittings
£
11,531
11,531
10,864
233
11,097
434
667
Playground
equipment
£
2,360
2,360
1,986
95
2,081
279
374
Playground
equipment
£
149,289
149,289
51,992
29,858
81,850
67,439
97,297
2025
£
40
Total
£
163,180
163,180
64,842
30,186
95,028
68,152
98,338
2024
£
40

12. Debtors

Page 19

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

13. Creditors: amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals
2025
£
474
10,366
2,909
3,420
17,169
2024
£
486
7,024
2,479
3,240
13,229

14. Statement of funds

Statement of funds - current year

Balance at 1 Balance at
September Transfers 31 August
2024 Income Expenditure in/out 2025
£ £ £ £ £
Unrestricted funds
Designated funds
Baby area - - - 30,000 30,000
General funds
General Funds - all funds 396,603 677,084 (639,059) (30,000) 404,628
Total Unrestricted funds 396,603 677,084 (639,059) - 434,628
Statement of funds - prior year
Balance at Balance at
1 September 31 August
2023 Income Expenditure 2024
£ £ £ £
Unrestricted funds
General Funds - all funds 412,697 551,627 (567,721) 396,603

Page 20

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

15. Summary of funds

Summary of funds - current year

Designated funds
General funds
Balance at 1
September
2024
£
-
396,603
396,603
Income
£
-
677,084
677,084
Expenditure
£
-
(639,059)
(639,059)
Transfers
in/out
£
30,000
(30,000)
-
Balance at
31 August
2025
£
30,000
404,628
434,628

The trustees decided to transfer £30k to a designated fund in the year. This will be used to redevelop the baby area.

Summary of funds - prior year

Balance at Balance at
1 September 31 August
2023 Income Expenditure 2024
£ £ £ £
General funds 412,697 551,627 (567,721) 396,603

16. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2025
£
Tangible fixed assets
68,152
Current assets
383,645
Creditors due within one year
(17,169)
Total
434,628
Total
funds
2025
£
68,152
383,645
(17,169)
434,628

Page 21

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

16. 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
£
98,337
311,495
(13,229)
396,603
Total
funds
2024
£
98,337
311,495
(13,229)
396,603

17. 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
Interest
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
2025
£
38,025
30,186
(9,418)
3,940
62,733
2025
£
383,606
383,606
2024
£
(16,094)
30,188
(4,254)
(19,060)
(9,220)
2024
£
311,455
311,455

18. Analysis of cash and cash equivalents

Page 22

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

19. Analysis of changes in net debt

Cash at bank and in hand At 1
September
2024
£
311,455
311,455
Cash flows
At 31
August 2025
£
£
72,150
383,605
72,150
383,605
Cash flows
At 31
August 2025
£
£
72,150
383,605
72,150
383,605
383,605

20. Related party transactions

Clare Olden, the spouse of a trustee was employed by the charity in a staff role. The total remuneration paid to the individual amounted to £35,959, inclusive of salary and benefits. The remuneration was considered to be at a market rate for the role and responsibilities undertaken. The trustee is not involved in decisions relating to the spouse’s employment or remuneration.

Alison Envenoldsen, the daughter of a trustee was employed by the charity in a staff role. The total remuneration paid to the individual amounted to £28,659, inclusive of salary and benefits. The remuneration was considered to be at a market rate for the role and responsibilities undertaken. The trustee is not involved in decisions relating to the daughter’s employment or remuneration

The trustees have declared their relationship and interest in accordance with the charity’s conflict of interest policy, and the board has reviewed and approved the arrangement to ensure it is in the best interests of the charity.

No other related party transactions occurred during the year.

21. Controlling party

The ultimate controlling party is the charity's Trustees as detailed on page 1 of the financial statements.

Page 23

THE COTTAGE NURSERY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

22. Pension commitments

The charity operates a Stakeholder Pension Scheme for its employees. This is a money purchase or defined contribution scheme. The employer's contribution is 3% of the gross pay, and for the year totalled £11,330 (2024: £10,536). At the balance sheet date £2,767 (2024: £2,337) of contributions (employees and employers) were outstanding.

Page 24