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2020-12-31-accounts

COMPANIES HOUSE REGISTERED NO: 6356360

CHARITY REGISTERED NUMBER: 1133681

SAVILE ROW ACADEMY LIMITED

DIRECTORS' AND TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

KEMPTON EMSDEN & CO.

CHARTERED ACCOUNTANTS 34 NAPIER ROAD BROMLEY KENT BR2 9JA

SAVILE ROW ACADEMY LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Company Number: 6356360
Registered Charity Number: 1133681
Director: Professor A M Ramroop, OBE, CMTT
Trustees: Professor A M Ramroop, OBE, CMTT
Dr K I F Khan - resigned 31.12.2020
Ms R Singer - appointed 31.12.2020
Mr A Wong CBE - appointed 31.12.2020
Registered Office: 34 Napier Road
Bromley
Kent
BR2 9JA
Accountants: Kempton Emsden & Co.
Chartered Accountants
34 Napier Road
Bromley
Kent
BR2 9JA

SAVILE ROW ACADEMY LIMITED

FOR THE YEAR ENDED 31 DECEMBER 2020

CONTENTS

Page
Trustees' Report 1
Independent Examiner's Report 3
Statement of Financial Activities 4
Detailed Analysis of Funds 5
Balance Sheet 6
Notes 7
Income and Expenditure Account 14

SAVILE ROW ACADEMY LIMITED

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report and the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (FRS102) in preparing the annual report and financial statements of the charity.

Structure, Governance and Management

Governing document

The charity is governed by its Memorandum and Articles of Association, dated 30 August 2007.

Organisation

The charity is a limited company, incorporated on 30 August 2007. The company was registered as a charity on 22 January 2010, number 1133681. The charity is run by a Principal who administers and manages the day-to- operations of the charity.

Relationships with other groups, charities and individuals

The charity has a very close relationship with Maurice Sedwell (Savile Row) Ltd., of which A.M. Ramroop is a director and ultimate shareholder.

Risk policy

The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

Objectives and activities

The principal activity of the company is that of teaching tailoring skills to students who do not want to go on to higher education.

Achievements and performance

This year has been an uneventful year with Savile Row Academy (SRA) with cancellations and refunds of student fees.

Due to social distancing, lockdowns and quarantine measures SRA has not been able to operate normally.

Although our capacity is ten students due to limited space, we could now only accommodate seven.

Presently, we are able to deliver two courses with two groups of six persons (6). To enable efficient delivery of the courses SRA have had to employ more staff. All staff are former SRA trainees who have attained the level of expertise for which we have become known.

Trainees are allowed to use the classroom on evenings, Saturdays and holidays. Most take advantage of these opportunities.

Financial review

New course guides have been written, students interviewed and SRA Hand Book reviewed for 2022. Due to unaffordability of premises on Savile Row, the school will be relocated.

Plans for future periods

It is expected that another summer course will not be delivered in 2022 unless new premises are found by April 2022.

Research and development

The courses will be redesigned to be delivered in three years.

Page 1

SAVILE ROW ACADEMY LIMITED

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees' responsibilities in relation to the financial statements

The trustees (who are also directors of 31 December 2020 for the purposes of company law) are responsible for preparing the Trustees' Annual 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 which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which 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 detection of fraud and other irregularities.

This report was approved by the board of directors and trustees on 23 September 2021 and signed on its behalf.

......................................................... A M RAMROOP – O.B.E. C.M.TT. TRUSTEE

Page 2

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF SAVILE ROW ACADEMY LIMITED

FOR THE YEAR ENDED 31 DECEMBER 2020

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2020 which are set out on pages 4 to 14

Responsibilities and basis of report

As the charity trustees of the company (and also its director 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 your company's accounts as 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 this 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 that in any material respect:

  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 (FRS102).

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.

........................................ Dated: 23 September 2021 Kempton Emsden & Co. Chartered Accountants 34 Napier Road Bromley Kent BR2 9JA

Page 3

SAVILE ROW ACADEMY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES

Income and endowments from:
Charitable activities
Investments
Other income
Total income and endowments
Expenditure on:
Raising funds
Charitable activities
Other
Total resources expended
Net movement in funds
Total funds brought forward
Total funds carried forward		 FOR THE YEAR ENDED 31 DECEMBER 2020
Total
Total
Unrestricted Funds
Funds
Funds
2020
2019
£
£
£
185,635
185,635
250,914
22,031
22,031
8,836
2,153
2,153
1,991
–––––––
–––––––
–––––––
209,819
209,819
261,741
–––––––
–––––––
–––––––
148,266
148,266
230,787
11,034
11,034
46,668
15,826
15,826
49,190
–––––––
–––––––
–––––––
175,126
175,126
326,645
–––––––
–––––––
–––––––
34,693
34,693
(64,904)
£113,437
£113,437
178,341
–––––––
–––––––
–––––––
£148,130
£148,130
£113,437

======= ======= =======

All income and expenditure derive from continuing activities.

Page 4

SAVILE ROW ACADEMY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES

DETAILED ANALYSIS OF MOVEMENTS IN FUNDS

FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2019
£ £ £ £
General Fund
Balance brought forward 113,437 178,341
Surplus/(deficit) for the year 34,693 (64,904)
––––––– –––––––
148,130 113,437
––––––– –––––––
Total funds at 31 December 2020 £148,130 £113,437
======= =======

Page 5

COMPANY NUMBER: 6356360

SAVILE ROW ACADEMY LIMITED

BALANCE SHEET

AT 31 DECEMBER 2020

Note 2020 2019
£ £ £ £
Tangible fixed assets
Investments 431 29,313
Current assets
Debtors 11 353,555 300,666
Bank accounts 74,886 4,268
––––––– –––––––
428,441 304,934
Creditors
Amounts falling due within
one year 12 278,870 220,809
––––––– –––––––
Net current assets 149,571 84,125
––––––– –––––––
Total assets less current liabilities 150,002 113,438
Provisions for liabilities (1,871) -
––––––– –––––––
Net assets £148,131 £113,438
======= =======
Capital funds
Called up share capital 1 1
Unrestricted funds 148,130 113,437
––––––– –––––––
Total funds £148,131 £113,438
======= =======

For the year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to the small companies regime within Part 15 of the Companies Act 2006. Approved by the trustees on 23 September 2021 and signed on their behalf.

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

A M RAMROOP - Director

The annexed notes form part of these financial statements.

Page 6

SAVILE ROW ACADEMY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 (FRS102) issued on 16 July 2014 (as updated through Bulletin 1 published on 2 February 2016 and Update Bulletin 2 published on 5 October 2018) the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Companies Act 2006 and UK Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical convention (modified to include certain items at fair value). The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest pound.

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

Incoming resources

All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Tuition fees relating to future periods are included in deferred income.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The irrecoverable element of VAT is included with the item of expense to which it relates.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees to further the objectives of the charity.

Investments

Investments in shares are carried at fair value, as determined by the company's US investment brokers. Revaluation surpluses and losses are recognised in the profit and loss account.

Investment Income

Income from investments is accounted for on an accruals basis where material.

Page 7

SAVILE ROW ACADEMY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Foreign exchange

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Intangible assets

Intangible fixed assets are stated at cost less amortisation and impairment. Amortisation has been provided at rates calculated to write off the cost of intangible fixed assets over their expected useful lives as follows:

Trade mark expenses 10% per annum of cost.

Pension costs

The company operates a defined contribution pension scheme with NEST and the pension charge represents the amounts payable by the company to the fund in respect of the year.

Grants received

Covid Job Retention Scheme Grants received are credited to income when the salaries to which the grants relate are paid.

Financial instruments

The charity has financial assets and liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value including transaction costs and subsequently carried at amortised cost using the effective interest method.

Page 8

SAVILE ROW ACADEMY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2. Income

Unrestricted Total Total
Funds Funds Funds
2020 2020 2019
£ £ £
Charitable activities
Tuition fees 185,635 185,635 250,914
––––––– ––––––– –––––––
185,635 185,635 250,914
––––––– ––––––– –––––––
Investment income
Bank interest received - - 17
Loan interest receivable 27,165 27,165 -
Dividends received - - 165
(Loss)/profit on disposal of investments (4,614) (4,614) 5,922
Loss on foreign exchange (263) (263) (1,326)
Fair value changes (257) (257) 4,058
––––––– ––––––– –––––––
22,031 22,031 8,836
––––––– ––––––– –––––––
Other income
Employment allowance 625 625 1,991
Covid Job Retention Scheme Grants 1,528 1,528 -
––––––– ––––––– –––––––
2,153 2,153 1,991
––––––– ––––––– –––––––
3. Expenditure on raising funds
2020 2020 2019
£ £ £
Marketing - 1,857
Rent, rates and service charges 144,000 120,000
Travelling - 77
Printing, postage and stationery - 942
Computer expenses 565 581
Legal and professional charges 2,512 104,180
Book-keeping 454 2,815
Bank charges 689 289
Sundry expenses 46 46
––––––– –––––––
148,266 230,787
======= =======

Page 9

SAVILE ROW ACADEMY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

4. Expenditure on charitable activities
2020 2020 2019
£ £ £
Training materials 2,057 3,243
Teaching staff - 19,066
Teaching fees 8,977 24,300
Recruitment costs - 59
––––––– –––––––
11,034 46,668
======= =======
5. Other costs
2020 2020 2019
£ £ £
Accountancy 2,400 1,920
Corporation Tax on interest receivable 5,161 -
Wages and salaries 7,417 22,251
Employer's NIC 625 1,887
Employer's pension contributions 223 612
Director's remuneration - 20,000
Employer's NIC - 2,070
Pension contributions - 450
––––––– –––––––
15,826 49,190
======= =======
6. Profit before tax
2020 2019
£ £
This is stated after charging:
Pension costs 223 1,493
======== ========

Page 10

SAVILE ROW ACADEMY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

7. Trustees' emoluments

Trustees' emoluments
2020 2019
£ £
Director's remuneration - 20,000
Employer's NIC - 2,070
Pension contributions - 450
–––––– ––––––
£ - £22,520
====== ======

The director is accruing benefits under a money purchase pension scheme. Ansel Wong, a trustee, received £1,200 from the charity for teaching services in January 2020. The trustees have not otherwise received remuneration, benefits or re-imbursement of expenses during the year.

8. Staff costs

The average number of persons employed by the company, including the director, during the year was as follows:

2020 2019
Teaching and administration 1 4
====== ======
The aggregate payroll costs of these persons were as follows:
2020 2019
£ £
Wages and salaries 7,417 59,748
Social security 625 5,096
Other pension costs 223 1,493
–––––– ––––––
£ 8,265 £66,337
====== ======

Page 11

SAVILE ROW ACADEMY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

9. Intangible fixed assets
Patents
£
Cost:
At 1 January 2020 1,331
–––––
At 31 December 2020 1,331
–––––
Amortisation:
At 1 January 2020 1,331
–––––
At 31 December 2020 1,331
–––––
Net book value:
At 31 December 2020 £ -
=====
At 31 December 2019 £ -
=====
10. Fixed asset investments
Listed
£
Cost
At 1 January 2020 29,314
Additions 6,789
Deficit on revaluation (273)
Disposals (35,399)
–––––––
At 31 December 2020 431
–––––––
Net Book Values:
As at 31 December 2020 £ 431
=======
As at 31 December 2019 £ 29,314
=======

Page 12

SAVILE ROW ACADEMY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

11. Debtors and prepayments

Amounts falling due within one year:

Amounts falling due within one year:
2020 2019
£ £
Tuition debtors 6,301 -
Maurice Sedwell (Savile Row) Ltd 336,146 293,847
Prepayments and accrued income 11,013 -
Alexander Investments - cash balance 95 6,819
––––––– –––––––
£353,555 £300,666
======= =======

12. Creditors

Amounts falling due within one year:-

Amounts falling due within one year:-
2020 2019
£ £
Sundry creditors 8,364 8,372
Other taxes & PAYE 214 222
Corporation tax payable 3,291 -
Accruals and deferred income 267,001 212,215
––––––– –––––––
£278,870 £220,809
======= =======

13. Related party transactions

The charity has a very close relationship with Maurice Sedwell (Savile Row) Ltd., which is a wholly owned subsidiary of Maurice Sedwell Ltd., of which A M Ramroop, the director, is the sole shareholder. At the Balance Sheet date Maurice Sedwell (Savile Row) Ltd. owed the charity £336,146 (2019 - £293,847). The loan is repayable on demand. Interest has been charged on the loan at 6% per annum. Rent was payable by the charity to Maurice Sedwell (Savile Row) Ltd. of £144,000 (2019 - £120,000).

Page 13

SAVILE ROW ACADEMY LIMITED

INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2019
£ £ £ £
Turnover
Tuition fees 185,635 250,914
Bank interest received - 17
Loan interest receivable 27,165 -
Dividends received - 165
(Loss)/profit on disposal of investments (4,614) 5,922
Loss on foreign exchange (263) (1,326)
Fair value changes (257) 4,058
Employment allowance 625 1,991
Covid Job Retention Scheme Grants 1,528 -
–––––––– ––––––––
209,819 261,741
Resources Expended
Staff costs - administration 8,265 47,270
Marketing - 1,857
Rent, rates and service charges 144,000 120,000
Travelling - 77
Printing, postage and stationery - 942
Computer expenses 565 581
Legal and professional charges 2,512 104,180
Book-keeping 454 2,815
Bank charges 689 289
Sundry expenses 46 46
Training materials 2,057 3,243
Teaching staff - 19,066
Teaching fees 8,977 24,300
Recruitment costs - 59
Accountancy 2,400 1,920
Corporation Tax on interest receivable 5,161 -
–––––––– ––––––––
(175,126) (326,645)
–––––––– ––––––––
Net income over expenditure for the year £ 34,693 £ (64,904)
======== ========

Page 14