OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

2024-08-31-accounts

LITTLE OWLS PRE-SCHOOL PLYMOUTH CIO Unaudited Statement of Financial Activities Year to 31 August 2024

Page 1 of 10

Contents:

Page No.
Highlights 3
Chair’s Foreword 4
The Board of Trustees 5
Charity Information 6
Trustee Report 7
Strategic Objectives 2024-2025 8-9
Financial Governance & Financial Accounts 10

Page 2 of 10

Highlights

The Board of Trustees of Little Owls Pre-School (Plymouth) CIO is pleased to present their annual report and accounts for the year ending 31 August 2024 and confirm they comply with the requirements of the Charities Commission.

Charitable Objects

To provide high quality childcare for children primarily under statutory school age and to work for the public benefit by having as its objects the development and education of children and young people by:

  1. Promoting their care and safety.

  2. Promoting their education and parental involvement.

  3. Promoting their health and wellbeing.

  4. Providing services to support them and their families and carers.

Little Owls

Little Owls has been established in the local community for over 40 years. The current setting provides childcare and education for approximately 60 children and employs seven members of staff full-time on both all year round and term-time contracts.

Financial Summary

The financial year to 31 August 2024 generated total revenues of £178,327 which represents a small reduction of £1,337 when compared to the previous financial year.

The total cost, including administrative expenses, to deliver the revenues was £155,756, resulting in a small operational surplus of £22,571.

Shareholders (Trustee’s) funds as at the 31[st] August 2024 was £162,195 (2023 £139,624).

Page 3 of 10

Chair’s Foreword

I provide my report for the year ended 31 August 2024.

At the end of this financial year, having struggled with recruitment for many months, we are pleased to announce the recruitment of two Level 3 qualified practitioners. The Board would like to take this opportunity to thank the team for working additional hours and enabling Little Owls to continue to support its families and serve the local community.

It is noted, however, that the Early Years industry is still suffering from a staffing crisis which shows no sign of recovering despite government initiatives. This, combined, with the roll out of additional funded hours for parents/carers, suggests the future for Little Owls and other nurseries will be very challenging.

The Board has been mindful of the impact of the ‘cost of living crisis’ on the families of Little Owls and agreed to freeze fees this year.

The setting is performing well, and we continue to invest in staff, facilities and educational resources.

Despite the continued and very serious staff recruitment challenges within the early years industry throughout the year, effective cost management helped to deliver good financial results for the 12 months to 31 August 2023 and saw Trustee’s Funds increase to £162,195.

Links with local schools remain strong and the team works hard to help ensure school transitions are a positive experience for all our children.

Relationships with other educational institutions remain positive and, we are advised, Little Owls is one of the only settings that continues to provide work experience placements for school age children. Links with colleges also remain positive and we welcomed Sara as a placement at the beginning of the 2023/2024 academic year who quickly became our new Level 2 Apprentice.

Our Strategic Objectives for 2023/2024

  1. Identify and apply for appropriate grants to improve the facilities and learning opportunities for our children and families.

  2. Completed. Little Owls was successful in securing three grants from Tesco Groundworks, Aldi and the Co-op which was used to improve our outdoor provision and provide some ageappropriate cookware. The Board wishes to formally thank these organisations for their support.

  3. Explore the possibility of expanding the premises with our landlord. Completed. In collaboration with our landlord, Little Owls supported the submission of a planning pre-application however the outcome was largely neutral. The Board agreed to put this project on hold because of the results of the pre-application and the ongoing staffing challenges in the Early Years Industry.

  4. Identify additional, affordable benefits to attract and retain staff, for example:

  5. Develop and implement a staff performance-related bonus scheme. Completed and awarded in 2023/2024.

  6. Evaluate business healthcare schemes for all staff. Completed. After evaluating the market, the Board agreed to trial Vitality Health.

Skye Godfrey, MSc, BSc (Hons), CIPS Chair, Little Owls Pre-School (Plymouth) CIO

Page 4 of 10

The Board of Trustees

Skye Godfrey, MSc, BSc (Hons), CIPS – Chair

Skye Godfrey took over as Chair of the charity in January 2013 after being on the committee for a period. Skye has senior level commercial experience and has led most of the key organizational changes over the years and thus enjoys helping charities/not for profit businesses become more commercially aware, competitive and sustainable. She has been instrumental in identifying and implementing key opportunities to improve the care and education for our children and passionately believes children should have the best start in life with Early Years education playing a vital role in this.

Mark Pickersgill, MBA, CEng, FIMechE – Treasurer

Mark joined the Board in 2017. During his 30-year career in the UK and international rail industry, Mark held senior engineering, operations, commercial and customer management roles, including three Board positions for award winning companies within the privatised passenger and freight sectors. Mark ended his rail career as the UK’s senior director with the world’s largest transportation company – Bombardier Transportation. He has a proven track record of improving the financial and operational performance of businesses safely, which has been a common theme throughout his career, and which remains an area of particular interest and enjoyment for him today. Mark is currently a Trustee and Director of Devonport High School for Boys, a local Grammar school.

Nick Hellings, MBA – Secretary

Nick Hellings originally joined the Board in 2017 to assist with governance. Nick is a local businessman and was the Chair of Governors at a local school prior to his role with us; bringing a huge amount of relevant experience.

The Board members give their time and expertise freely and no remuneration costs or expenses were paid to the individuals during the year as Trustees of the Charitable Incorporated Organisation.

Page 5 of 10

Charity Information

Charity Number: 1159402

Little Owls Pre-School (Plymouth) CIO Allard House 82-84 Higher Compton Road Higher Compton Plymouth PL3 5JD Ofsted Number: EY2596605 Bank: Natwest

Registered Charity Address:

Little Owls Pre-School (Plymouth) CIO Allard House 82-84 Higher Compton Road Higher Compton Plymouth PL3 5JD

Solicitors:

Wolferstans North Hill Plymouth

Accountants:

TS Partners Limited 4-5 Russell Court Palace Street Plymouth PL1 2AS

Page 6 of 10

Trustee Report

Trustee Responsibilities

The Board of Trustees is responsible for ensuring the Charity demonstrates financial probity, is compliant with relevant legislation and encourages good practice.

Policies

Little Owls regularly reviews its policies to ensure compliance with legislation and to reflect good practice. Little Owls has a suite of approximately 40 policies including key policies such as Safeguarding and Child Protection, Whistleblowing, Equal Opportunities, SEN Provision, Complaints.

New employees, student placements and volunteers are required to read and accept the policies as part of their induction. New or revised policies are briefed at staff meetings and cascaded appropriately.

Parents/carers are briefed about the policies during the Child Registration Process and are available to them.

Fees

Fees are set at Board level and consideration is given to operational costs, market sustainability and competition. Fees are reviewed as/when appropriate.

Curriculum

Little Owls is fully compliant with the EYFS and ‘Development Matters’.

Health and Safety

Little Owls has a member of staff dedicated to Health and Safety. The member of staff is responsible for carrying out fire drills, highlighting health and safety issues to the Board and for ensuring records are maintained.

Skye Godfrey has Board responsibility for Health and Safety.

The Little Owls Fire Safety documentation was developed by external consultant ‘Fire Safety Matters’.

Employees have received fire safety training in accordance with their roles.

Insurance

Our insurance is provided by Royal Sun Alliance via the Early Years Alliance. We hold £5m of Public Liability insurance and £10m Employers Liability insurance.

Page 7 of 10

Strategic Objectives for 2024/2025 - Future of the Charity

  1. To review the recruitment market and identify incentives to attract qualified staff to work for Little Owls*.

  2. To develop a succession plan for the Trustees.

*In pursuit of the 2024-2025 objectives, at a Trustee meeting held on 20 January 2025, following the departure of the Manager, the Chair reported that, along with the rest of the Early Years industry, Little Owls was facing a sustained, continuing recruitment/staffing crisis and, despite being optimistic during 2023-2024, there was little evidence this was easing. In addition, all Trustees agreed that having had a lengthy involvement with the organisation, it was time to step back from their roles and options were discussed for the continuation of Little Owls.

It had previously been agreed informally that the desired outcome of any resourcing crisis would be to transfer the running of setting to a suitable alternative operator rather than closing the setting. Initial enquiries had identified that there were unlikely to be any Charitable organisations in a position to take over the day to day running of Little Owls as many independent nurseries were closing down – many as a result of staff shortages.

With this in mind, the Trustees identified the opportunity to collaborate with Honeyshutes Childcare Limited. Tamsyn and Brett Shute, the current owners of Honeyshutes, currently run four nurseries and pre-schools in the area and were therefore more resilient to staffing changes. Adding this setting to their portfolio was viewed by them as a positive opportunity and with their strong track record of running ‘good’ or ‘outstanding’ settings, the Trustees concluded that, as fellow long-serving members of our local community, they shared the same ethos and values as Little Owls. The transfer would involve closing the charity and transferring the operation to the Honeyshutes limited company model.

The Trustees agreed that the collaboration would provide the best potential for the survival of the organisation, maintaining vital childcare places and securing the jobs of the current team. It would also allow the new operators to strengthen the current team by providing additional, long-term staff, provide a strategic vision to develop an outstanding provision as well as developing the SEN provision across the settings.

It was proposed that this opportunity would be developed with Honeyshutes, with the aim of transferring the setting to the new operators in time for the September 2025 new academic year. The proposals were ratified unanimously by the Trustees

Page 8 of 10

The Trustees then discussed workstreams and objectives that had been created in order to facilitate the transfer, including transfer of the lease and allowable assets, transfer of staff and the subsequent closure of the Charity.

It was agreed that the significant workstreams, some of which are likely to continue for at least 12 months beyond the cessation of the Charity’s operations, will include but not be limited to:

  1. Financial due diligence with TS Partners to include the final financial reports to the governing bodies that is, the Charities Commission, HMRC etc

  2. Finalise the charity’s asset register as of 31[st] August 2025

  3. The appropriate disposal of all the Charity’s assets in accordance with its stated objectives post 31[st] August 2025

  4. Liaise with the Charity’s legal representatives and the Landlord during the transfer of the commercial lease to the new tenant

  5. Ensure all due diligence is undertaken to ensure compliance with all legislative bodies’ requirements during the closure of the charity including de-registration of the site.

  6. In accordance with employment law, ensure all TUPE requirements are satisfied

  7. Ensure compliance with legislation and arrange for the destruction of documentation in the correct manner. This highly sensitive work can only be undertaken by the Board’s representative for safeguarding due to current legislation

  8. Ensure compliance with legislation and facilitate the archiving and cataloguing to ensure future access of all retained records including but not limited to Safeguarding, SEN, Employment, Financial records and arrange safe storage. This highly sensitive work can only be undertaken by the Board’s representative for safeguarding due to current legislation

  9. Liaison with the Charity’s extensive supply chain and compliant termination of contracts including, where relevant, extraction and safe storage of data pertaining to the charity.

  10. Liaison with the local Early Years team and OFSTED in accordance with their requirements

It was therefore agreed by the Trustees that the above workstreams would become the Charity’s strategic objectives for 2024-2025 superseding all previously agreed objectives.

Page 9 of 10

Financial Accounting, Procedures and Governance

Legislation requires the Board to prepare financial accounts for each financial year which give a true and fair view of the state of affairs of the Charity as at the end of the financial year. The Accounts are independently examined as a part of this process.

In preparing the accounts, the Board is required to:

Select suitable accounting policies and apply these consistently; Make judgements and estimates that are reasonable and prudent;

State whether applicable accounting standards have been followed, subject to any material departure disclosed and explained in the financial statements; and

Prepare the financial accounts.

The Board is responsible for keeping proper records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable to ensure the accounts comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approval of financial accounts

The financial accounts were presented at the Annual General Meeting of the Charity held on 25[th] June 2025.

Corporate Governance

During the year, the Board consisted of the three First Charity Trustees. Details of these Board members are given on page 4 of this report.

The Board members and the Manager meet monthly with the Charity’s Accountants, TS Partners Limited, to discuss the Charity’s accounts and also meet as a Board to discuss and agree key strategic issues.

Page 10 of 10

Registered number CE003352

Little Owls Pre-School

Report and Accounts

31 August 2024

Little Owls Pre-School Profit and Loss Account for the year ended 31 August 2024

Turnover
Cost of sales
Gross profit
Administrative expenses
Other operating income
Operating profit
Interest payable
Profit before taxation
Tax on profit
Profit for the financial year
2024
£
178,327
(8,411)
169,916
(147,365)
20
22,571
-
22,571
-
22,571
2023
£
179,664
(3,011)
176,653
(162,155)
-
14,498
959
15,457
-
15,457

1

CE003352

Little Owls Pre-School Registered number: Balance Sheet as at 31 August 2024

Notes
Fixed assets
Tangible assets
3
Current assets
Debtors
4
Cash at bank and in hand
Creditors: amounts falling due
within one year
5
Net current assets
Net assets
Capital and reserves
Profit and loss account
Shareholders' funds
2024
£
2,235
87,065
82,010
169,075
(9,115)
159,960
162,195
162,195
162,195
2023
£
1,425
91,663
62,425
154,088
(15,889)
138,199
139,624
139,624
139,624
2023
£
1,425
91,663
62,425
154,088
(15,889)
138,199
139,624
139,624
139,624
139,624
139,624
139,624

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit in accordance with section 476 of the Act.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.

0

Director

Approved by the board on 0 January 1900

2

Little Owls Pre-School Detailed profit and loss account for the year ended 31 August 2024

This schedule does not form part of the statutory accounts

Sales
Cost of sales
Gross profit
Administrative expenses
Other operating income
Operating profit
Interest payable
Profit before tax
2024
£
178,327
(8,411)
169,916
(147,365)
20
22,571
-
22,571
2023
£
179,664
(3,011)
176,653
(162,155)
-
14,498
959
15,457

3

Little Owls Pre-School Detailed profit and loss account for the year ended 31 August 2024

This schedule does not form part of the statutory accounts

Sales
Other Income
Fee Income
Grant Income
Cost of sales
Consultancy Fees
Direct Labour
Refreshments
Crafts and Activities
Other direct costs
Administrative expenses
Employee costs:
Wages and salaries
Pensions
Employer's NI
Staff training and welfare
Entertaining
Premises costs:
Rent
Rates
Service charges
Light and heat
Cleaning
General administrative expenses:
Telephone and internet
Postage, stationary and printing
office expenses
Subscriptions
Bank charges
Insurance
Equipment expensed
Software
Repairs and maintenance
Cleaning materials
Sundry expenses
Legal and professional costs:
Accountancy fees
Payroll fees
Advertising and PR
Other operating income
Other operating income
2024
£
84,550
-
93,777
178,327
188
3,748
1,494
377
2,604
8,411
104,846
2,190
1,309
192
277
108,814
14,400
1,773
159
1,625
1,737
19,694
641
107
189
-
344
1,537
1,129
4,167
3,275
296
1,435
13,120
4,639
664
434
5,737
147,365
20
2023
£
-
87,547
92,117
179,664
150
766
1,089
496
510
3,011
115,430
1,597
4,336
820
-
122,183
14,400
1,247
237
397
4,515
20,796
557
480
531
438
354
392
3,137
1,087
5,320
1,090
115
13,501
4,601
855
219
5,675
162,155
-

4

VN ‘ CHARITY CHARITY COMMISSION COMMISSION Independent Independent examiner's examiner's FOR FOR ENGLAND ENGLAND AND AND WALES WALES report report on on the the accounts accounts

IER IER

1 1 October October 2018 2018

'

Section Section B B Disclosure Disclosure

Only Only complete complete[if] if the the examiner examiner needs needs to to highlight highlight matters matters of of concern concern (see (see CC32, CC32, Independent Independent examination examination[of] of charity charity accounts: accounts: directions directions and and guidance guidance for for examiners). examiners).

Give Give here here brief brief details details of of any any items[items][that] that[the] the examiner wishes examiner wishes to[to]

disclose. disclose.

IER IER

2 2

October October 2018 2018