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← Canto Learning Limited

2025-07-31-accounts

REGISTERED COMPANY NUMBER: 10094184 (England and Wales) REGISTERED CHARITY NUMBER: 1168455

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 July 2025

for

Canto Learning Limited

Canto Learning Limited

Contents of the Financial Statements for the year ended 31 July 2025

Page
Report of the Trustees 1 to 4
Report of the Independent Auditors 5 to 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Cash Flow Statement 12
Notes to the Financial Statements 13 to 24
Detailed Statement of Financial Activities 25 to 26

Canto Learning Limited (Registered number: 10094184)

Report of the Trustees for the year ended 31 July 2025

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2025. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

To advance the education and skills of young people who live with challenges arising from learning, behavioural, emotional or social difficulties by the provision of a specialist establishment.

The Charity achieves the stated objective by continuing to successfully run the specialist establishment and by understanding those who access the provision, maintain the high standards in all work, continuing to striving for success, safe guarding those in the Charities care, and, ensuring equality, diversity and inclusion are promoted throughout the organisation.

Public benefit

All the Charity's activities are undertaken to further our charitable purpose for the benefit of the public. The trustees have had regard to the Charity Commission guidance on public benefit in section four of the Charities Act 2011. The main benefits which have arisen during the year from the organisations aims and activities are detailed in the following sections and in the financial review.

STRATEGIC REPORT

Achievements and performance

Review of the year's activities

The trustees remain confident that the general balance between income, expenditure and reserves has remained satisfactory throughout the year. They also remain confident that all resources have been used in an effective manner and that all funds spent have been done so to further improve and enrich the lives of those that attend the provision.

CANTO Learning Ltd continues to increase students provision due to the growing need of those residing in Northamptonshire and the surrounding area. The good reputation of the organisation means that demand for the services is increasing leading to organic growth of student numbers across both Adult Social Care and Education funded provision.

The accumulated surplus shown in these accounts are in line with the plans for future development of the provision in the form of a new premise. The trustees consider this essential due to the increasing challenges on the current site due to the growth of the provision.

Ofsted's most recent inspection in 2023 judged the education provision to remain good and recognising the valuable work being undertaken and the impact it has on the lives of those attending its Education provision. The in-year monitoring visit from West Northamptonshire County Council confirmed that the provision for it's Adult Social Care funded programme is meeting the needs of those who access it.

We have made significant progress throughout the year in relation to the key elements of our strategy, the board monitors the progress by reference to the following financial KPI's:

2025 2024
Accumulated surplus £1,977,569 £1,603,750
Wage cost as a % of incoming resources 64.4% 67.8%
Operating surplus % 16.3% 13.9%

1

Canto Learning Limited (Registered number: 10094184)

Report of the Trustees for the year ended 31 July 2025

STRATEGIC REPORT Achievements and performance Fundraising activities

The charity does not carry out significant fundraising activities, it does, however, undertake minor fundraising activities and social events aimed to give the young people who live with challenges arising from behavioural, emotional and social difficulties, a platform to express themselves and further their progression within the scope of the charities stated public benefit.

Financial review

Financial position

The Charity is satisfied with its financial position, it has healthy reserves which would maintain the charity for a period of time should activities be unexpectedly curtailed.

Principal funding sources

The principal funding sources remain the various local authorities in and around Northamptonshire region and the DfE, who enable the charity to undertake its day to day activities and meet its stated objectives.

Investment policy and objectives

The investment policy of the charity is to put surplus funds into low risk investments with a view to generating a reasonable return while maintaining the security and accessibility of the funds. At the balance sheet date the company held fixed term deposits with its main bankers which could be accessed if needed.

Reserves policy

The nature of funding to the charity is such that payments are received in advance for various areas of the activities undertaken. These funds are reconcilable at the end of the academic year and, if unused, are at risk of being clawed back if the charity cannot demonstrate that the funds have been applied. Such 'at risk' funds are retained separately and only allocated to the finances of the charity as they are applied. It is from these applied funds that allocation is made to our reserves. Reserve funds are invested in an array interest bearing notice bank accounts to achieve a higher return, while keeping any downside risk to a minimum.

The trustees are satisfied that the amount of reserves remains at a healthy level and is being constantly monitored to ensure the long-term financial stability of the charity. At the balance sheet date, total reserves amounted to £2,703,735.

Financial and risk management objectives and policies

The trustees have assessed the major risks to which the charity is exposed, those relating to 'In Advance' payments which could be clawed back by the funding authorities. The trustees are satisfied that the measures in place adequately provide for any such risk that exists. Financial reports are completed and presented to each Board of Trustees meeting and satisfy the trustees that appropriate systems are in place to mitigate our exposure to all major risks.

Future plans

The Charity's future plan is to continue to develop the core provision of education and training to your SEN student groups. The strategic plan for the next 5 years is to move the college to a new site with the infrastructure to accommodate the growing student numbers in line with demand. This will also allow for more innovative activities to further enhance the work being undertaken and ensuring that the differing needs of our programmes are met.

Essential building maintenance continues whilst we remain in the current building and we look forward to operating from our secondary site from January 2026.

There is significant growth in student numbers for both Adult Social Care and Education programmes for 2025/26.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

2

Canto Learning Limited (Registered number: 10094184)

Report of the Trustees for the year ended 31 July 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

Recruitment and appointment of new trustees

The identification, recruitment and appointment of new trustees is done by the existing trustees, in particular the head of centre. These individuals are identified based upon their particular skills and knowledge, specifically, areas of weakness in the collective knowledge of the trustees is identified as part of the ongoing risk assessment, and the recruitment of a new trustees is targeted to help fill this knowledge gap.

The training of new trustees are conducted by existing trustees, by the head of centre, by attending ongoing CPD, and by spending time in and around the Canto Community.

Related parties

The financial statements were prepared by a Clifford Roberts Chartered Accountants, a firm in which Mr. A Billingham, was a Trustee. Clifford Roberts Chartered Accountants did not undertake the audit of the financial statements, these were audited by an external firm of auditors.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

10094184 (England and Wales)

Registered Charity number

1168455

Registered office

Willis House Tonmead Road Lumbertubs Northampton Northamptonshire NN3 8HU

Trustees

Mrs C Dear Mr P Burch Mrs J Gadsden Mrs A Fometu (resigned 14.3.2025) Mr A M Billingham Mrs T Davidson Mr A R Sanders Mr T J Goodridge Mr J J Byrne (appointed 19.5.2025) Mr T Clee (appointed 15.9.2025) Mr M A Saxby (appointed 19.5.2025)

Auditors

Cottons Accountants LLP The Stables Church Walk Daventry Northamptonshire NN11 4BL

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

3

Canto Learning Limited (Registered number: 10094184)

Report of the Trustees

for the year ended 31 July 2025

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also directors of Canto Learning Limited for the purposes of company law) are responsible for preparing the Trustees' Annual Report (including the Strategic 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 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 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.

In so far as the trustees are aware:

PREPARATION OF THE REPORT

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

AUDITORS

The auditors, Cottons Accountants LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 19 January 2026 and signed on the board's behalf by:

Mr A M Billingham - Trustee

4

Report of the Independent Auditors to the Members of Canto Learning Limited

Opinion

We have audited the financial statements of Canto Learning Limited (the 'charitable company') for the year ended 31 July 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

5

Report of the Independent Auditors to the Members of Canto Learning Limited

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

6

Report of the Independent Auditors to the Members of Canto Learning Limited

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

7

Report of the Independent Auditors to the Members of Canto Learning Limited

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Callum Veasey ACA (Senior Statutory Auditor) for and on behalf of Cottons Accountants LLP The Stables Church Walk Daventry Northamptonshire NN11 4BL Date: .............................................

8

Canto Learning Limited

Statement of Financial Activities for the year ended 31 July 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
6
Programme income
Other trading activities
4
Investment income
5
Total
EXPENDITURE ON
Charitable activities
7
Programme income
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
3,085
2,162,236
28,952
14,886
2,209,159
1,836,367
12,939
1,849,306
359,853
2,343,882
2,703,735		 Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-		 2025
Total
funds
£
3,085
2,162,236
28,952
14,886
2,209,159
1,836,367
12,939
1,849,306
359,853
2,343,882
2,703,735		 2024
Total
funds
£
859
1,817,102
30,466
12,465
1,860,892
1,588,713
14,260
1,602,973
257,919
2,085,963
2,343,882

The notes form part of these financial statements

9

Canto Learning Limited (Registered number: 10094184)

Balance Sheet

31 July 2025

Notes
FIXED ASSETS
Tangible assets
13
CURRENT ASSETS
Stocks
14
Debtors
15
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
16
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
17
NET ASSETS
FUNDS
21
Unrestricted funds
TOTAL FUNDS		 Unrestricted
funds
£
1,633,674
650
147,981
1,020,092
1,168,723
(98,662)
1,070,061
2,703,735
-
2,703,735		 Restricted
fund
£
-
-
-
-
-
-
-
-
-
-		 2025
Total
funds
£
1,633,674
650
147,981
1,020,092
1,168,723
(98,662)
1,070,061
2,703,735
-
2,703,735
2,703,735
2,703,735		 2024
Total
funds
£
1,482,566
650
111,027
866,847
978,524
(93,277)
885,247
2,367,813
(23,931)
2,343,882
2,343,882
2,343,882

The financial statements were approved by the Board of Trustees and authorised for issue on 19 January 2026 and were signed on its behalf by:

Mr A M Billingham - Trustee

Mrs C Dear - Trustee

The notes form part of these financial statements

10

Canto Learning Limited

Cash Flow Statement

for the year ended 31 July 2025

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2025
£
371,514
(958)
370,556
(204,156)
14,886
(189,270)
(28,041)
(28,041)
153,245
866,847
1,020,092		 2024
£
323,988
(1,739)
322,249
(142,633)
12,465
(130,168)
(27,326)
(27,326)
164,755
702,092
866,847

The notes form part of these financial statements

11

Canto Learning Limited

Notes to the Cash Flow Statement for the year ended 31 July 2025

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2025 2024
£ £
Net income for the reporting period (as per the Statement of
Financial Activities) 359,853 257,919
Adjustments for:
Depreciation charges 53,046 36,567
Interest received (14,886) (12,465)
Interest paid 958 1,739
(Increase)/decrease in debtors (36,954) 25,013
Increase in creditors 9,497 15,215
Net cash provided by operations 371,514 323,988

2.

ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Debt
Debts falling due within 1 year
Debts falling due after 1 year
Total		 At 1.8.24
£
866,847
866,847
(28,043)
(23,931)
(51,974)
814,873		 Cash flow
£
153,245
153,245
4,112
23,931
28,043
181,288		 At 31.7.25
£
1,020,092
1,020,092
(23,931)
-
(23,931)
996,161

The notes form part of these financial statements

12

Canto Learning Limited

Notes to the Financial Statements for the year ended 31 July 2025

1. STATUTORY INFORMATION

Canto Learning Limited is a private company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The company's business address is Willis House, Tonmead Road, Lumbertubs, Northampton. NN3 8HU.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

Canto Learning Limited is an incorporated Charity in the United Kingdom. The nature of the charity's operations and principal activities are to advance the education and skills of young people who live with challenges arising from learning, behavioural, emotional or social difficulties by the provision of a specialist establishment.

The financial statements of the charitable company, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS102) '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)'. Financial Reporting Standard 102 ' The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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

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 presented unless otherwise stated.

Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from the date the financial statements are authorised. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Critical accounting judgements and key sources of estimation uncertainty

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

-Valuation of fixed assets -Valuation of deferred income -Calculation of accruals -Valuation of the capital reserve

Income

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

13

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

2. ACCOUNTING POLICIES - continued

Income

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees' Annual Report.

Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

The charity receives government grants in respect of education service funding. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right to receive payment is established.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% on cost, excluding est. land value Improvements to property - 2% on cost

14

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

2. ACCOUNTING POLICIES - continued

Tangible fixed assets Plant and machinery - 15% on cost Fixtures and fittings - 15% on cost Motor vehicles - 20% on reducing balance Computer equipment - 15% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity 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.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds represent those assets which must be held permanently by the charity, principally. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

15

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

3. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
2025 2024
£ £
Donations 3,085 859

Income from fundraising activities was £3,085 of which £nil was attributable to capital reserve, £nil was attributable to endowments, £nil was attributable to restricted and £3,085 was attributable to unrestricted funds.

4. OTHER TRADING ACTIVITIES

OTHER TRADING ACTIVITIES
Clothing income
Tuck shop income
Avon income		 2025
£
7,140
1,511
20,301
28,952		 2024
£
7,140
1,769
21,557
30,466

Income from other trading activities was £28,952 of which £nil was attributable to endowments, £nil was attributable to restricted and £28,952 was attributable to unrestricted funds.

5. INVESTMENT INCOME

2025 2024
£ £
Deposit account interest 14,886 12,465

Income from investment activities was £14,886 of which £nil was attributable to endowments, £nil was attributable to restricted and £14,886 was attributable to unrestricted funds.

6. INCOME FROM CHARITABLE ACTIVITIES

Activity
Programme income
Programme income
Sundry income
Programme income
Grants
Programme income		 2025
£
930,720
-
1,231,516
2,162,236		 2024
£
756,771
6,350
1,053,981
1,817,102

Income from charitable activities was £2,162,236 of which £nil was attributable to endowments, £nil was attributable to restricted and £2,162,236 was attributable to unrestricted funds.

Grants received, included in the above, are as follows:

2025 2024
£ £
Government funding 1,231,516 1,053,981

16

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

7. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS
Support
Direct costs (see
Costs note 8) Totals
£ £ £
Programme income 1,823,734 12,633 1,836,367

The charity has only one activity, and all expenditure is incurred in furtherance of that activity. The allocation of support costs is all allocated to one activity of the charity.

8. SUPPORT COSTS

9.

10.

Programme income
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
Operating lease cost
TRUSTEES' REMUNERATION AND BENEFITS
Trustees' salaries
Trustees' social security
Trustees' pensions paid		 Governance
Finance
costs
£
£
1,523
11,110
2025
£
6,000
53,048
1,798
2025
£
89,706
10,802
2,591
103,099		 Totals
£
12,633
2024
£
5,760
36,567
-
2024
£
83,959
8,723
2,439
95,121

The two Trustees for which remuneration is paid are Mrs. J. Gadsden and Mrs C. Dear. Both trustees are also accruing pension contributions under the charities auto enrolment obligation.

The charity has legal authority within its memorandum and articles of association to pay remuneration to Trustees, and this has been agreed with the Charities Commission. The remuneration was paid, not for the role of Trustee, but for the job undertaken within the Charity.

The charity considers that only its trustees are considered key management personnel and their remuneration is disclosed above.

The charity did reimburse expenses to trustees; the amount reimbursed is disclosed below and related to travel and subsistence payments. There was only one trustee who received reimbursed expenses.

Trustees' expenses
2025 2024
£ £
Trustees' expenses 605 2,805

17

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

11. STAFF COSTS AND TRUSTEES

Wages and salaries
Social security costs
Other pension costs		 2025
£
1,284,745
106,463
31,671
1,422,879		 2024
£
1,148,362
85,842
28,404
1,262,608

The average monthly number of employees during the year was as follows:

Employed Trustees
Other, Non-Salaried, Trustees
Leadership Team
Teaching Staff
Support Staff
Administrative Staff		 2025
2
7
5
12
33
6
65		 2024
2
7
5
12
28
6
60

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£70,001 - £80,000
£80,001 - £90,000
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
859
Charitable activities
Programme income
1,817,102
Other trading activities
30,466
Investment income
12,465
Total
1,860,892
EXPENDITURE ON
Charitable activities
Programme income
1,588,713
Other
14,260
Total
1,602,973
NET INCOME
257,919		 2025
1
1
2
Restricted
fund
£
-
-
-
-
-
-
-
-
-		 2024
1
-
1
Total
funds
£
859
1,817,102
30,466
12,465
1,860,892
1,588,713
14,260
1,602,973
257,919

18

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
13.
TANGIBLE FIXED ASSETS
COST
At 1 August 2024
Additions
At 31 July 2025
DEPRECIATION
At 1 August 2024
Charge for year
At 31 July 2025
NET BOOK VALUE
At 31 July 2025
At 31 July 2024
COST
At 1 August 2024
Additions
At 31 July 2025
DEPRECIATION
At 1 August 2024
Charge for year
At 31 July 2025
NET BOOK VALUE
At 31 July 2025
At 31 July 2024		 Fixtures
and
fittings
£
64,591
12,797
77,388
35,832
7,540
43,372
34,016
28,759		 Unrestricted
Restricted
funds
fund
£
£
2,085,963
-
2,343,882
-
Improvements
Freehold
to
property
property
£
£
1,134,748
382,038
-
130,227
1,134,748
512,265
115,410
19,293
19,235
6,679
134,645
25,972
1,000,103
486,293
1,019,338
362,745
Motor
Computer
vehicles
equipment
£
£
37,902
79,241
15,891
33,369
53,793
112,610
16,054
43,371
4,635
9,802
20,689
53,173
33,104
59,437
21,848
35,870		 Unrestricted
Restricted
funds
fund
£
£
2,085,963
-
2,343,882
-
Improvements
Freehold
to
property
property
£
£
1,134,748
382,038
-
130,227
1,134,748
512,265
115,410
19,293
19,235
6,679
134,645
25,972
1,000,103
486,293
1,019,338
362,745
Motor
Computer
vehicles
equipment
£
£
37,902
79,241
15,891
33,369
53,793
112,610
16,054
43,371
4,635
9,802
20,689
53,173
33,104
59,437
21,848
35,870		 Total
funds
£
2,085,963
2,343,882
Plant and
machinery
£
49,338
11,872
61,210
35,332
5,157
40,489
20,721
14,006
Totals
£
1,747,858
204,156
1,952,014
265,292
53,048
318,340
1,633,674
1,482,566

No depreciation was provided on the estimated land value of £173,000 which is included in the total cost at the start of the year.

19

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

13. TANGIBLE FIXED ASSETS - continued

All assets are used within the Charity for the benefit of the charitable purpose.

14.
STOCKS
Stocks
15.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income
16.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 18)
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income		 2025
£
650
2025
£
31,764
430
115,787
147,981
2025
£
23,931
14,478
30,804
13,944
15,505
98,662		 2024
£
650
2024
£
20,197
250
90,580		 2024
£
650
2024
£
20,197
250
90,580		 2024
£
650
111,027
2024
£
28,043
2,263
21,581
29,803
11,587
93,277

Government grant income for the forthcoming academic year is paid up front and subject to potential clawback at the end of the period.

17.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans (see note 18)
18.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years		 2025
£
-
2025
£
23,931
-		 2024
£
23,931
2024
£
28,043
23,931

The company has one long term loan, bearing a fixed interest rate of 2.00% above base rate.

20

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

19. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2025
£
10,787
40,451
51,238		 2024
£
-
-
-

During the year lease payments recognised as an expense totalled £2,697 (2024 - £nil).

20. SECURED DEBTS

The following secured debts are included within creditors:

2025 2024
£ £
Bank loans 23,931 51,974

There are two charges in relation to the loan monies outstanding both in favour of Lloyds Bank Plc, one over the property known as Willis House, and the other over all other assets of the Charity.

21. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Net Transfers
movement between At
At 1.8.24 in funds funds 31.7.25
£ £ £ £
Unrestricted funds
General Fund 1,603,750 359,853 13,966 1,977,569
Capital Reserve 740,132 - (13,966) 726,166
2,343,882 359,853 - 2,703,735
TOTAL FUNDS 2,343,882 359,853 - 2,703,735
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General Fund 2,209,159 (1,849,306) 359,853
TOTAL FUNDS 2,209,159 (1,849,306) 359,853

21

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

21. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General Fund
Capital Reserve
TOTAL FUNDS		 At 1.8.23
£
1,344,426
741,537
2,085,963
2,085,963		 Net
movement
in funds
£
257,919
-
257,919
257,919		 Transfers
between
funds
£
1,405
(1,405)
-
-		 At
31.7.24
£
1,603,750
740,132
2,343,882
2,343,882

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General Fund
TOTAL FUNDS		 Incoming
resources
£
1,860,892
1,860,892		 Resources
expended
£
(1,602,973)
(1,602,973)		 Movement
in funds
£
257,919
257,919

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General Fund
Capital Reserve
TOTAL FUNDS		 At 1.8.23
£
1,344,426
741,537
2,085,963
2,085,963		 Net
movement
in funds
£
617,772
-
617,772
617,772		 Transfers
between
funds
£
15,371
(15,371)
-
-		 At
31.7.25
£
1,977,569
726,166
2,703,735
2,703,735

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General Fund
TOTAL FUNDS		 Incoming
resources
£
4,070,051
4,070,051		 Resources
expended
£
(3,452,279)
(3,452,279)		 Movement
in funds
£
617,772
617,772

22

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

21. MOVEMENT IN FUNDS - continued

Transfers between funds

The Capital Reserve is released over the life of the related asset, allocating the transfer of fund against the depreciation charge with Unrestricted Funds.

22. EMPLOYEE BENEFIT OBLIGATIONS

The company operates defined contribution, auto enrolment retirement benefit schemes for all its qualifying employees. The total expense charged to profit or loss in the period ended 31st July 2025 was £34,262 (2024: £30,843). The amount owed to the pension schemes at the year-end was £Nil (2024: £NIL).

23. RELATED PARTY DISCLOSURES

The Director, Mr. A. Billingham, is also a Partner of Clifford Roberts Chartered Accountants, who provided accountancy services to the Charity. Included within accountancy costs are amounts totalling £4,690 paid to Clifford Roberts in respect of accountancy services conducted at arm's length by other members of the firm. At the year-end there was an unsecured credit balance outstanding of £Nil (2024: £Nil).

24. AUDITOR LIABILITY LIMITATION AGREEMENT

The company has entered into a liability limitation agreement with its auditors and this agreement was approved by resolution dated 17th November 2025.

Liability is limited to the lesser of 20 times the audit fee or £105,000. In accordance with section 537 of Companies Act 2006, the effect of the liability limitation agreement is to limit the auditor's liability to less than such amount as is fair and reasonable, as determined by that section, the agreement shall have the effect as if it limited the liability to such amount as is fair and reasonable, as so determined.

The agreement limits the liability owed to the company by the auditors in respect of any negligence, default, breach of duty or beach of trust occurring in the course of the audit of the financial statements of the company for the year ended 31st July 2025.

The agreement does not limit liability for any instance of fraud or dishonesty on behalf of the auditor or any other liability that cannot be excluded or restricted by applicable laws or regulations.

25. POST BALANCE SHEET EVENTS

There are no events after the period end that requires reporting on.

26. FINANCIAL RISK MANAGEMENT

The company has some exposure to credit, liquidity and cashflow interest rate risks, these risks are limited by the company's financial management policies and practices described below.

Credit risk

The company offer credit terms to its customers which allows payment of the debt at a future specified time. The company mitigates this risk by maintaining strong customer relationships and regular analysis its sales ledger for troubled customers.

Liquidity risk

The directors have ultimate responsibility for liquidity risk management in maintaining adequate reserves and banking facilities. Currently based on the cash reserves this is not deemed a significant risk.

Interest rate risk

23

Canto Learning Limited

Notes to the Financial Statements - continued for the year ended 31 July 2025

26. FINANCIAL RISK MANAGEMENT - continued

The company is exposed to interest rate risk through the impact of rate changes on interest bearing borrowings. Apart from the Long-term loan the company does not have significant interest-bearing assets and liabilities. Fixed rate terms are agreed when considered favourable to mitigate risk.

The company holds no derivative financial instruments at the year end.

24

Canto Learning Limited

Detailed Statement of Financial Activities for the year ended 31 July 2025

Unrestricted
funds
£
INCOME AND ENDOWMENTS
Donations and legacies
Donations
3,085
Other trading activities
Clothing income
7,140
Tuck shop income
1,511
Avon income
20,301
28,952
Investment income
Deposit account interest
14,886
Charitable activities
Programme income
930,720
Sundry income
-
Grants
1,231,516
2,162,236
Total incoming resources
2,209,159
EXPENDITURE
Charitable activities
Trustees' salaries
89,706
Trustees' social security
10,802
Trustees' pensions paid
2,591
Trustees' expenses
605
Wages
1,195,039
Social security
95,661
Pensions
31,671
Rates and water
9,638
Insurance
17,392
Light and heat
44,486
Telephone
29,955
Postage and stationery
11,356
Sundries
337
Programme costs
70,092
School meals
685
Student travel costs
7,732
Repairs to property
64,102
Waste removal
13,912
Motor expenses
14,079
Staff costs and refreshments
46,304
Computer expenses
14,543
Carried forward
1,770,688		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2025
Total
funds
£
3,085
7,140
1,511
20,301
28,952
14,886
930,720
-
1,231,516
2,162,236
2,209,159
89,706
10,802
2,591
605
1,195,039
95,661
31,671
9,638
17,392
44,486
29,955
11,356
337
70,092
685
7,732
64,102
13,912
14,079
46,304
14,543
1,770,688		 2024
Total
funds
£
859
7,140
1,769
21,557
30,466
12,465
756,771
6,350
1,053,981
1,817,102
1,860,892
83,959
8,723
2,439
2,805
1,064,403
77,119
28,404
3,570
13,870
39,411
27,774
13,694
190
50,265
3,540
7,694
29,688
15,179
10,192
42,997
12,566
1,538,482

This page does not form part of the statutory financial statements

25

Canto Learning Limited

Detailed Statement of Financial Activities for the year ended 31 July 2025

Unrestricted
funds
£
Charitable activities
Brought forward
1,770,688
Freehold property depreciation
19,235
Short leasehold depreciation
6,679
Plant & machinery depreciation
5,157
Fixtures&fittings depreciation
7,539
Motor vehicles depreciation
4,634
Computer equipment
9,802
1,823,734
Other
Tuck shop costs
1,922
Avon costs
11,017
12,939
Support costs
Finance
Bank charges
565
Mortgage
958
1,523
Governance costs
Auditors' remuneration
6,000
Accountancy and legal fees
5,110
11,110
Total resources expended
1,849,306
Net income
359,853		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2025
Total
funds
£
1,770,688
19,235
6,679
5,157
7,539
4,634
9,802
1,823,734
1,922
11,017
12,939
565
958
1,523
6,000
5,110
11,110
1,849,306
359,853		 2024
Total
funds
£
1,538,482
5,395
5,612
3,763
6,416
5,462
9,919
1,575,049
1,595
12,665
14,260
705
1,739
2,444
5,760
5,460
11,220
1,602,973
257,919

This page does not form part of the statutory financial statements

26