## **PAINT POTS PRE-SCHOOL & NURSERY LIMITED** (a charitable company limited by shares) **ANNUAL REPORT AND FINANCIAL STATEMENTS** FOR THE YEAR ENDED **31st August 2025** **Registered Company Number: 03895659 (England and Wales) Registered Charity Number: 1210517** Page 1 PAINT POTS PRE-SCHOOL & NURSERY LIMrrED Contents of the Financial Statements FOR THE YEAR ENDED 31stAu8U5t 2tr15 CONTENTS Tru5tees' RepDrt Independent AuditoVs Report StatÈmÈnt of Financial Artimties Balance Sheet Statement of Cashflows Note5 to the Financial Ststements PaBe 8-10 li 12 13 14-20 Page 2 PAINT POT5 PRE-SCHOOL & NURSERYLIMrrED Trustee5' Report FOR THE YEAR ENDED 3151 Au8USt 2025 The Trustee5 we5ent their rew)rt. t08￿herwith the finarKial statements. for the yeaT ended 31 August 202S. Thi5 CoM￿ned report sat15fie5 the legal requirements for". Directors, Report of a charitable company.. and Trustees, Annual Report underthe Charitie5 Act 2011. Legal ObJects The principal objert5 of the charitable cornpany are fof the publ1£ benefft1￿d ¥*trficalty restricted to.. A(fvance education". and or Relieve poverty and to relieve need in indiMdua15 ari5irbg fri)tn theiT yo￿h. age infimiity or disability, financial hardship or 50ci31 circufflstance5', and or Sijch other purposes that are exdusivdycharitswe in acryxdancewith the13w of England and Wales 35 the Trustees many from time to time determire. The iompany was incorp)rated on 16 December 1999 and registered as a tharityon 16 October 2024. Strate8it Aims While Paint Pots Pre-khod & Nursery ￿rnited wa5 a 5ub5idiaryof the Launchpad Sxial Enrerpri5e (harity. it became a charity in Its own right Ilirnited by share51 on 16th October 2024. It, therefore, now has its own charitable objeits expressed as.. The Objects of the Charity are forthe public tser￿￿ and specifically re5¢ri(ted to.. a(fvance education., andlor relieve PDverty and to relieve need in indmduals ari&ng from thwrYO￿h￿ age infirmity or disbbility, financial hardsh¢p or Social ciicuwnstar*es.' andlor such other purw>5es thèt are exdusNefy tharita￿e in accordarKe with the L3wof England and W31e5 3SthÈ TrustÈes may from time ro time determine,. In prartice, the focu5 of the charity 15 running high qualityearlyyears education across itscurrent 6 nur5erie5 and 7 pr&schools with a social enterprise approath. Our primary aim ￿ to offer the best care and 511PPOrtthat wÈcan to thechildren thai corne to our 5ettingsi totheir lamilies and carers, and to our staff, offennE them good rates of pay and wth further 51tpport for their well-being where possible. We aim to do this with an envSronmentally sympathetic approach and policies. while maknn8 sulfioent surplus to reinvest in the organisation for it5 quality, development, and sustainability. Strnte8lt Rlsks and Uncertalnties There have been significant changes in govefnrnent policytowaTds earfyv*3rs in the last 3 years and these changes are still cotning through. In the last year, the Eovernrnent ha5 increased lundingforCk2 yÈardds from 15hrs per weekto 30hr5 Iterrn tirne only) and this is hawng an impact on the overall market and beha￿oUr. tt￿11 fdke lime to see how this feed5through but already thÈ balance of our income is chanBtnE. It is generally expertetsted insFections in the year at PPI (Outst3r￿in8I. PP7 (Goodl. PPII (Outstandingl, and PP13 IGotrJl. PPIO moved into new premises In November 2024 in St Joseph's Hall. Bugle Street following è significant refurbishrnent. We h8ve introduced è new role wthin our tetbtral teaffl. Gr(￿P SENDCO. to prO￿￿e enhanced supporr for children additional needs across our nurseries. This role encompasses deliwin8 prattical intervention5 and offering guidance and support to familles. In addition, we have prioritised SENOCO rraining for our staff, with tnany suc￿SSfullY coinpleting the established qu31ification in partnership with the local authority. Wlth the support of Apprenticeship tevy fundin& we have prK)riDsed ￿aft development across ihe organlsation. Ten staff members have successfully ￿hIeVed their Level 3 Earfyyears qualification. w¢th a lurther three completln8 Level 2. In addition, two sraff members have been enrolled cn a Level 5 apprentKeship programme. These initiavves fom p3n of our ongoingcommitment to upskilling our workforce and enhancingthe qualityof pro¥i5ion acr055 our nurseries. We have a150 rnade si8nifKant investrrvènts io improve outdoor enTrrironrnents at rnulti￿e 5ite5. This has irKluded the installation of large scale play equipment and upgrades to Èxiernal facilities These enhancements have coniributed positivety to thE ￿X￿rien￿5 of IKrh children and families attending our settings. Over the last year, improved nursery management sofNRre was (ntroduced acrossall the settings. whith allow5 information to be comrnunicated rnore clearly. We have also been working with cdlea8ue5 in otherorgani5ati￿sto see how we might supFort those who are mostvulnerable i our communities, including with fOod￿nkS. food ￿ntrieS and family hub5. With the untertaintie5 overfvnding in thts financial year. this has taken I(￿Se[ than orwnally hoped ljut it continuesto be an aspIrat￿Th. Durin8 the year. Paint Pot5 had rea51Jn to ¥ewrt a serious incident 10 the ICO. fdlowinR a dats breach which was experlenced by the third party company that Paint Pots used for cOr￿Urting DBS checks on sraff_ As a resu￿ of swift action taken by Palnt Pots to report the breach, no further acrion was required by eitherthe ICO of the Charitie5 Cornffli55ion for England and Wales. Page 4 PAINT POTS PRE-SCHOOL & NLIRSERY LIMrrED Trustees Report IcoThtinuedl FOR THE YEAR ENDED 315t ALVSt 202S FundralslnB siatement Paint Pois, income currently c(xnes from govemment grantsma Ic201. The 5taiement of Financial Activitie5 5how5 a SUTpIu5 fortheyearof £525.89212024.. £556,4241. At the year end, the IharTty holds funds of £l.461.18612024- £15119561. fvndsare unTesiTirted. It Is estlmated that the company* PflQfto achiev1ngcharitab￿ ststU5 on 16 O£tober 2024. recorded a1055 of £144,(KXlf(x the period I Septernber 2024 to 15 October 2024. This irKludesa gift aid payment of £S0.CWto LSE. Reserye5 Policy Unrestricted Funds.. Our current intention i5to t￿lId Paint Pots. resÈrvÈsto the go)int where ihe equivalent of 3 rr￿)nth￿ running c05t5 are held in reserve in accordance with go￿ p[art￿e. That is approximately El.5m. which we are close to athiewng, with £ltn at the year end. In general, surpluse5 will be 3pplied to irnpri)vingthe resources and PToMsion forchildren In our settings Iresources, buildings. activitiesl, improwng pay and conditionsfor staff. and in wing5 forsuptx)rting gri)wth Inew settings. new buildinB5, extensions to exi5tin8 5ethngs to increase nursery places available). Restrided Funds- During the year the company received a ontroff donation of £IS.IXI) frorn Bttterne Comrnuntty Pre-school IBCPI. Thls money represented Surplus funds from the closure of BCP and was used by Paint Pots to fund the salariES of the BCP staff who were r employed by PP in the new Sstteme Nw5ery. Structure. Govemance and Management Paint Pots Preschool and Nursery Ltd is a company IiTn1t￿ by shares. incorwrated on 16 Oecember 1999 and opeT3ting undera Memorandum and Articles of ￿socIation altered pursvantto a SpÈtial Resolution on 24th September 2024. The trustees, who are also director5, who served during the period are set out on page 6_ The tru5tee5 are Ind￿￿ndefit and appointed by the current trustee bodv. Oeci$ion mèklng strnc￿re Section 172 of the Companies Acr require5 tru5tee5 10 act in a way they consider. in 8ood faith. would be most likely to prornote the success of the chariiy to achieve its charitable purposes. In d(xng 50 the Board of T¢ustees deleBates day to day management and declsion making to The Revd Canon NKholas Ralrth. ExecutNe Director, and ihe Management Team. who are required to act in furtherance of the Charity's Strategy and to ensure that the Charity's actNitie5 are carried out in compliance with agreed ￿anS 3nd policies. The trusrees recelve updates on the Charity'5 performance and plans at each quartedy Board meeting. Trustee recruitment. 5dection and imductithi Trustees are selected on the ba515 of s￿115, knowledge and networks. They are given Inducti￿ and prowded wth training as appropriate. Trustees are required to tnaintain their entry in the Record of Declarations of InteresL Rernuneration The Board operates a Set salary Scale and eM￿0Vee$ arÈ plated on thls and benchm¥ked where pwyble against comparable roles in other siwnilar or8anisations. The salary scale is rthfSewed eath year ￿the Board with refference to C05tof-livin& movements in staff and National Living Wage. Page 5 PAINT POTS PRE-SCHOOL & NURSERY LIMrrED Trustee5 Report Icontinuedl FOR THE YEAR ENDED 3tst August 2025 Future Plans We are open to genlle growth bLrt it Is imporrdnt to us that Paint Pots continues to be a fatnity both in the way we care for children in our 5ettin85 and in the way we relaie toand look afterour staff. We are open to gTOWth but it has to be balanced growth wSth sorne setting5 in areas of disadvanta8È and other5 in richer areas. For ihis model to w(rt as a s(rial enterprise, a cross-subsidy approKh is essential. We need to balance tyjr capacity Cenrrallyfor current work against the tirne, effor¢ and costs Involved in conyderin8 new opportunities. Trustees. Respons11￿l￿e5 The Trustees are re$￿sIble for preparingthe Annual Report and the financial ststerrents in accordance wlth thÈ applic3ble13W and regulations. The Charities SORP IFRS 1021'Accountin8 and ReFx)rting by Chariries.. Statement of Recomtr)ended Practice applicable to charitie5 eparing their account5 in accordance with the Financial Reporting Siandard appllcable In the UK and Republic of Ireland IFRS 1021 (effective l January 20191,, the Financial Re￿rtIng sianda¢d 102 The Financial Reporting Standard ap￿1¢able in the UK and Republic of Ireland, and the Companie5 Act 2(M)6 requires the Trustee5 la5 Diiectorsl to prepare finanoal statements for each financi31 year. Underthese law t￿T￿Stee5 have elected to prepare the financial staternents in accordance wlth United Kingdom Generally Accepted Accounting Practice (United Kingdom Ac£tyJntI￿8 Standards and aprAicable lawl. The Trustees tnu5t not approve the financial statements unless they are sat15fied that theygive a true and f￿r¥leW of the stste of affairs of the cotnpany and of the surplus ordeficit of the iompany for that Feriod. In preparingthese financial Statements ihe TW￿et$ are required to= Select suitable accounting policies and apply thetn consistently. Observe methods and principles in the Charities SORP.. Make judgements and estimate5 that are reasonable and prudent., State whether applicable &tounting Standards have been followed. Subject to any rnaterial departures disclosed and explained in the financial stètements,. PrepaTe financial statements on thÈ g(Mllg concem basis unless rt is inappropriate to aswrne that the cornpany will continue in operation. The Trustees are also responsiNe for keeping proper accounting retonlsthat disck)se with reasonable accurw at any tirne the financi31 w5ttion of the charity and enèble thern to ensure that the h"nancial Statements COrn￿V with the C¢xnpanie5 Ait 2rA)6 and FR5102. They are alx> responsible for safeguarding the assetsOft￿th8rity and hence for ta￿.￿g reasonaNe sieps for the prevÈntion and detection of fraud ènd other irregularities. The tru5tee5 are re5ponsiNe for ihe maitTrtenarKe and inteBrityof the £orwrate and financial tnformation induéed in the charity's website. Legislation in England and Wales 8oveming the preparation and dissemination of financial ststements and other infomiation included in the Annual Rew)rts may differ frthn le8j51ation in otherjvrisdialon Administrative Detsds None of the below listed Tru5tee5 had any benefitial interest in the charty. The following arethe Trustees of the charity, who are also dlrectors of the Com￿nY, who seryed during the period and asat the d*e of this report.. Jane Ellzabeth ￿ke lappointed 22 JaThuary20251 The Rev'd Df Philip Lewis Krinks lapwinted 22 January 20251 Ell￿beth Catherine Mccarthy The Rev'd Theresa Lesley Parker lappointed 22 January 20251 (Chair from 9 Detrmber 20251 Mark Stephen Ward lèppointed 22January 2025 & resigned 9 December 20251 (Chair until 9 Oecernber 20251 ThomasAdam Ward lapwjinted 22 January 20251 The Rev'd Canon Nicholas Robert Ralph (re￿gned 2iJanuary 20251 Ms Gambol Beverley Parker Iresigned 22 January 20251 PagÈ 6 PAI￿ POTS PRE-SCHOOI & NURSERYLIMrrED Trustees Report Icontinuedl FOR THE YEAR ENDED 3tst AuRUSt 2025 AdmInI￿raIfve Ddalls Icorrtlnuedl Ci¥mporhV Setretary: The Rewd Canon Nichc4as Robert Ralph Registered ¢)ffiry.' Paint Pot5 House. I Spring CrexenL Scojthampton. En¥and. $017 2FZ Barbk: National Wesiminster Bank PLC. l Romsey Road, Shirfey. Southamptorb. S016 4GT Solicitors: Tfethowans LLP. The Pawlic*). BOt￿l8h Grange Bugrw Park, Hedge End. S￿tharnPt0n, S030 2AF Blake Morgan LLP. New C￿Irt. Tdlgate, Chandlers Ford, Eastleigh, $053 3LG Audfjiors- Haysmac LLP. 10 Queen Street Place, ￿don. EC4R IAG Executive Director: The Rev'd Canon Nicholas Rci*rt Ralph Provi￿0￿ of information tothe audilor5 In so far as the directors are aware.. There is no relevant 3udii information of which the charitaNe cotnpany'5 auditor is unaware., The dirertors have taken all steps that they sought to have taken to In3ke thetnsdves aware of any relevant a￿11 information and to establish thatthe audTror ISawa￿ of that inforniation. The directors acknowledge their re5wnsi￿"ll1ieS for complwng with the requiren*nts of the Cofflpanies Att 2rffi with respett to accounting records aThl the yeparation of the linancial staiements. Thi5 report has been prÈpared In accwdance wrth the small ccfflpanies. regime. L E￿ILL/ The Rev'd Theresa Lesley Parker Chair Dated.. Ig lala Pa8e 7 ## **PAINT POT PRE-SCHOOL & NURSERY LIMITED Independent auditor’s report FOR THE YEAR ENDED 31 AUGUST 2025** ## **Opinion** We have audited the financial statements of Paint Pots Pre-School & Nursery Limited for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cashflows 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, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 August 2025 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 Auditor’s 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 Trustee’s Annual Report. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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. Page 8 ## **PAINT POT PRE-SCHOOL & NURSERY LIMITED Independent auditor’s report (continued) FOR THE YEAR ENDED 31 AUGUST 2025** ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees’ Annual Report (which include the directors report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report included within the Trustees’ Annual Report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the charitable company and it environment obtained in the course oof the audit, we have not identified misstatements in the Trustees Annual Report (which incorporates the directors’ report) - adequate accounting records have not been kept by the charitable company; or - the charitable company’s financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report ## **Responsibilities of trustees for the financial statements** As explained more fully in the trustees’ responsibilities statement set out on page 6, 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. ## **Auditor’s 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 an auditor’s report 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: Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to Charity Law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Charities Act 2011 and Charities SORP (FRS102). Page 9 ## **PAINT POT PRE-SCHOOL & NURSERY LIMITED Independent auditor’s report (continued) FOR THE YEAR ENDED 31 AUGUST 2025** We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined the principal risk was related to posting inappropriate journals to income. Audit procedures performed by the engagement team included: - Enquiries of management regarding correspondence with regulators and tax authorities; - Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud; - Evaluating management’s controls designed to prevent and detect irregularities; and - Reviewing and testing journal entries made in the year, particularly those made as part of the year-end financial reporting process. 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 auditor’s report. ## **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 Auditor's 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. Jane Askew (Senior Statutory Auditor) For and on behalf of HaysMac LLP, Statutory Auditor 10 Queen Street Place London EC4R 1AG Date: 25 February 2026 Page 10 PAINT POTS PRE-SCIIOOL& NURSERY LIMITED ststement of Financial ArtNities FOR THE YEAR ENDED 31stAugusi 20Z5 UNestrirted Restricted Fund5 Funds Total Total 2024 Income.. Oonètions Charitsble activities Othertrading activitiÈs Investment income 12 15,( 5.592.623 11.329 10,490 5,614.M2 5.592,623 11,329 10,490 5.629,442 4.929,095 4,Z80 2,909 4.936.284 15.( Expendhure on.. Contribution to staff tosts Chantable activities other trading activfties Taxation chargelreversal from prewou5 companystotU5 115.c¥xII 115,OLK)I Is.067.4751 14,338,957) 140,4991 I31.￿3) 19.424 9,8401 15,103,550] 4,379,8601 15.C67.4751 140,4991 19,424 15.IW.5501 115,(Wl Net movement of funds for the year Fund balances at 1st September 2024 Gift aid distribution to parent chanty Fumd balancesat 31st August 2025 S25.892 1.511,956 1576.6621 1.461,186 525.892 1,511,956 1576,6621 1.461.186 556,424 1,077,421 1121,8891 1,511,956 All income and gain5 for the year are r￿0@r￿Sed on the ststement of fin3￿ra1 acti￿tse5. All of the tharity's xtiwties are classified a5 Continuing. Page 11 PAINT POTS PRE-SCHOOL & NURSERYLIMTfED Balance Sheet FOR THE YEAR ENDED 3tst August 2025 Totsl 2025 Total 2024 Note Fixed Assets Intangible Assets Tangible Assets 1,692 370.719 372.411 280,990 280,990 CurrentAssets Debtors and PrepayrneThts Cash at bank and in hand 429.6fM) i.(M)2,040 1.431.640 741,438 679,494 1.420.932 Creditors.. amounts falling due within one year Net turrent liabilitles 1333,9211 I,(P)7.719 1157,4091 1,263,523 Tol?1 assets less current liabli itie5 Creditor5.' arnountsfalling due after one year 1,470.130 1,544,513 18,7941 132,4071 1,461,336 1.512,106 Funds Unrestr(£ted Fund5 Restricted funds Share Capital Total funds 1,461,186 1,511.956 150 1,461.336 150 1,512.106 The notes on pa8è$ 14to 20 fomi part of the5efinancial statements. The financial stsiements were approved by the Board of Trustees and authorised issue and ggned on behalFgf the Board by= The Rev'd Theresa Lesley Parker Chair Pa8e 12 PAINT POTS PRE-SOIOOL & NURSERY IIMrrED Statement of Cashflows FOR THE YEAR ENDED 31st August ZOZ5 2025 2024 Net tash provided by operatlngactivities 1.108.246 s￿.920 Cashflowsfrom In¥e#lng actlvlties: Purchase of tangible fixed asset5 Purchase of intangible fixed assets Interest ReceNed on bank de￿it5 Net cash lused Inl Ik)vestlnKactivities 1213.4591 11,8801 10.4 204,8491 1185,4261 2,909 182,5171 Ca5hllows from financing activities: Gift aid repayment to parent companv Cash outfiows frorn rÈp3ymÈnt of borrowin8S Net cash (used Inl finarKinBa¢tI￿tle5 1576,6621 14,1891 58D,8511 1121.8891 4,189 1126,0781 Change In Cash and cash equiydlent in the rekN)rting period 322.546 282.325 Cash and cash eqUiv￿erIts at I September2024 679.494 397,169 Cash and cash equlvalents at 31 Auzurt 2025 I,￿2.040 679.494 RÈtontillatlon of mo¥ement In fuThJs to net cash flow from o aclrvrtie5 2025 2024 Net incoffle forthe rEporting ptdod Interest RÈcÈived on bank de[￿51s Depreciation charg Amort15ation of goodwill and tradernarks Ilncreaselldecrease in debtor5 Increaselldecreasel in creditors Net ￿$h prwded by operating adi￿tIeS 525.892 110,4901 123,730 556,424 I2,￿9) 83,955 311,838 157,088 1.108,246 118,2381 128,3121 590,920 Analysls of cash and (ash eqyivalents 202S 2024 Cash at bank and in hand 1,002,040 679,494 Page 13 PAINT POTS PRE.SCHOOL & NIIRSERY LIMTfED Notes to the Flnanclal Statements FOR THE YEAR ENDED 31st A¥ust 2025 l. A¢countiNd Politle5 Legal status of the charlty Paint Pots Pre-school & Nursery Ltd is a company limited by Shares. registered in England and Wale5. Paint Pots Pre-school and Nursery Ltd Is a publ￿ benefit entity as defined by FRS102_ The address of the registered office 15 1 Spring Crescent, 5outhatnpton. Hampshire. E￿land, S017 2FL Basis of preparation The financial statements have been prepared in accordance wilh the CharTtiÈs SORP IFRS 1021'AccountinE and Reporting by Charities.. Staternent of Recornrnended Prartice applicable to charities preparing theIr￿CoUnts ia accordance with the Financial ReportinE Standard applicable in the UK and RepvlJlK of Ifeland IFRS 1021 leffeaive l January 20191., Financial Reporting 5t8ndard 102 The Financial Reportin8 standard applicable in the UKand Republic of Ireland. and the Companies Act 2fTh. The financsal staternents have l)een prepared ofi a going ¢￿(eM ts￿.$ underthÈ hist(m￿Cal cos1 convention. UndÈr'G(Mng Concern. below. the trustees state that they have rea$¢￿able expPctat￿n that rhere is no material uncwtaintie5 that C311 into doubt the charitable company's ability to continue in operation and rneet it5 liabilityes as ihey fall due. Consequently, the Trustees have a rÈa50nable expertation that the company will continue in e￿sterKe forthe foreseeable future and. thÈrefore h3ve adopted the going toncem basis bn preparing these financial statements. Going Concern The Trustees have a reasonable expedation that the charity has adequaie resour£es to mÈÈt its Itabilities astheyfall due forthe foreseeable future. The Trustee5 considei that there are tK) fnaterial uncertaintiesthat may tast doubt on the charity's ability to continue a5 a going concern and they therefore continue to prepare the fina￿31 ststements ￿ a going concern basis. Government Grants Government grants rÈtÈi¥able included in charitable actry1tiesa￿ rewni*d at the fairvalue of the asset re£eNed or receivable. Grants are not recogni5ed until there is a rÈasoTrab￿ a55urarKe that the £ha[ity￿11 complywth the conditions attachin8 to them and the grants will be received. Government grants are rÈ£ogni5ed using the acuual method and the perf0m￿nCe model. Underthe accrual model, govemmentgrants relating to revenue are recognised on a STrrnetnatic basis over the period5 in which the charity recognises the related Cosfs for which the grant is intended to compensate. Grants that are receNable as comppn5ation for expense5 or losse5 already incurred or forthe purpose of ￿¥1￿8 immÈdiate finarKial suppon tothe c￿rity ￿th no future related 05t5 are reco8ni5ed in irKome in ihe pÈr￿ in which it becomes TÈceNable. Grants relating to assets a￿ recosnised in incoffe on a systematit ba￿5 overthe expelled useful life of the asset. Where pèrt of Erant relatlng to an asset is delerred. it 15 recoEni5ed as deferred not deducted from the carrying amount of the a$5et. Under the performance model. whereihe gTrnt does not inwse spe(ified future performance r￿ated condition5 on the ￿CIplent. it is recoEnlsed in incotne when the grant pr¢￿eedS are received or receivable. Where the grant does impose Specified future performance related ¢￿ditionS on the recipient, it 15 recognised in irKome onlywhen the perforTnance related conditlOn5 have been met. Where grants received are prior to satis￿"nE the revenue recogrbition crr(eria. they are re(ogni5ed as a liability. Income All income is recogn¢5ed in the Statement of Finaniial Activities or5ce the charity hasentitlernent to the funds. it is probablethat the income will be received and the arnountcan be measured reliably. Income isshown in ihe followin8 iate8ories wirhin the StatÈmÈnt of Financi31 Actiwities= Page 14 PAINT POTS PRE-SCHOOL & NURSERY LIMITED Notes to the Ftnancial Staternent5 Itorttinuedl FOR THE YEAR ENDED 31st August 2025 Income Icorbtinuedl l. Oonation income 15 recognised when it is lete1va￿e. 2. Income from nur5eryfee5 15 acicunted for in the period trn whKh the seNce is provKled. Fees ￿teNed in advance of the year to which they relate are treated as deferred income and released to i￿Orne in the year in which they subsequently relate. 3. Income frotn govelnment ènd other grants. whether capitsl or revenue grants. Is re￿nised when the charity has entitlement to the funds, any performantr conditions *tached to the grants have been met. It is probable that the incomÈ will be received and the amount can be mea5urerting date. Gains and losses oft dispt>sals are determined by iornparingthe pr¢)ceeds *¥ih the Ca￿￿n8 arnount and are reccgnised in the statement of financial affaSfS. Crllical judgement and estlmates EstimètÈs and judgements are continuallyevaluated and are based on hi5tOriC31 experienceand other fartOf5. including expectation5 of future events that are believed to be reasonable under the circurnstarbces. The company rnake5 e5tirnates and assumptions conceming the future. The resulting accounting estimètes and 355umptions wll. by definition, sel(k)m equal the related actual results. The estimates and a$5umpt1(X￿ that have a SiEnificant risk of causing material adjustrnent to the carrying amounts of a55et and liabilitiÈS Within the next financial year are discv55ed below. The cornpany makes pro￿$￿1￿ in the 8ccouTrts for nurseryfee5 which are deemed to be IrrecovÈralAe atthe balance sheet date. Judgernent is required to determine the [Qrti￿ ol the fee debts which are impaired and irrec¢werable, and thls is evaluated based on past experience. 2. Expenditure 2025 2024 Support Costs Depreciation Amorrisation Expenditure on c￿ritable activtties 624,672 123,730 188 4.374.384 5.122,974 528,600 83,954 3,757,466 4,370.020 Net income Is stated after charynE: Services provided by ihe Charity's auditors.. Auditfe Accounts preparation fees Taxation fee5 Accounts PTeparation Fees Depreciation & aryK)rtis3tion Operating leases renta15- buildings 16.440 12,8 1,610 3.0 6,258 83,954 228,167 2.847 123,918 261.722 Page 16 PAINT POTS PRE-SCTrK)OL & NLIRSERYIIMfT£D Notes to the FinaThcial Statement5 Icomknnuedl FOR THE YEAR ENDED 3ts1 August 2025 3. staff Costs All staff are employed by Palnt Pots Pr&school & Nursery Ltd. ex¢yt for The Rewd Canon Nichola5 Robert Ralph. whose stipend harge is rechèrged wa Portsrriouth Dioceses Board ol Finance. Slaff costs forthe perithj were as fdlows.. 2024 WaEes and sa￿￿e$ National insurance contributions Pension Costs 3.543,373 276,582 62.620 3,882,575 3.039,519 176,723 50,010 3.266.252 The average rrK)nthly number of employees. induding directw. duringthe yearwas 18312024- 1741 Wor￿￿8 a rniKture of part time and full time hours. some on a terrn time only basis. No employee eamed more than £60.CW per annum12024- nill. Trustee5 Expenses and Remuneration Trustee expenses reimbursed during the perifxl 3￿nted to £14312024- £nill. One trustee received rernuneration during the year in acccKdaTrce with the chariWs8overning document, the Memoranduffl and Articles incorporated L6th December 1999 as amended by rhe Special Re51Aution dated 24th September 2024. This remuneration was received under her contract of employment a5 OperatK)ns Managerof Pèint Pots Pre-school & Nursery Ltd. 2024 Elitsbeth Mccarthy. Gross Salary Employerf5 NIC Empl¢)yerfs Pen￿{￿1 51,138 6.287 3,387 60.812 49.359 5,552 3,167 58,078 RemuneratloTr of Key Man3gernent Personnel Key management personnel are deerned to be those h3￿n8 authority and re5pon5ibility delegated to them by the trustees, for plannlng, direaing and controlling the a£￿￿tIe$of ihe organisation. For the year eNJed 31 August 2025 this covered The Rev'd Canon Nitholas Robert Ralph 2024 The Re¢d Canon Nicholas Rcbert Ra1￿. salary. penyon and exwnses 20,054 4. Support Cost Anatysis 2024 OFfice 5UPFX)rt tosts Office rent Salaries. HR & recruitment lovÈrheadl Subscriptions and publications Audit, accountsncyand taxation services 80,020 20.903 388,978 997 37,701 528.6( 24,375 501,663 1.108 48.586 624,672 Page 17 PAINT POTS PRE-SCHOOL & NURSERY LIMITED Notesto the Financial Statements Icontinuedl FOII THE YEAR ENDED 31$1 Au8YSt Z025 5. Intangible Assets Goodwllll Trademarks Total C05t At l September 2024 Addirions At 31st August 2025 113.204 113.204 1,880 115,084 113,204 1,880 Arnffllsatlon At I September 2024 Charge in the year At 31stAugust 2025 113.204 113.204 188 113,392 113,204 Net book vakse At 31st Au8USt 2025 1,692 1,692 At 31st AuEUSt 2024 6. Tangible Fixed Assets leasehokl Fixtures Fyoperty and ffittir Motor Vehide5 Equlpw*nt Total Cost At I September 2024 Additions At 31stAugust 2025 516.334 154.883 671,217 365,343 41.824 407.167 30.514 55,152 16,752 71,904 967.343 213,459 1,180,802 30.514 Depre(la￿0Tr At I September 2024 Charge in the year At 31st August 2025 381.984 60.108 442.092 256.889 40,795 297.684 7.628 7.628 15.296 39.852 15.199 55,051 686,353 123,730 810.083 Net bookvalue Al 315t August 2025 229.125 109.483 15.258 16,853 370,719 At 3tstAugu5t 2024 134.350 108.454 22.886 15,300 280,9 7. Debts)r5 2025 2024 Trade Debtors Amounts owed by group undertaknn85 Other Oebtors PrepayrneTrt5 and accrued income 1.380 345,157 10.582 72,481 429,fATh) 7.564 69S,157 2,344 36,373 741,438 Page 18 PAINT POTS PRE-SCHOOL & NURSERY LIMITED Notes to the Finantial siatements Icot)tinuedl FOR THE YEAR ENDED 31stAucust 2025 8. Credltors: AnTh)untslalI￿￿￿Ut within oneyear 2025 2024 Trade creditors Other taxation and social Security Obligation5 underfinance lease and hire purchase contrxts other creditors A£cruals and deferred irKome 67.968 77.987 4.189 27.853 155,924 333,921 43,537 46,153 4,189 23,923 39,607 157,409 Deferred income Telatesto advance paYrr￿ts made by pa￿nts in respect of d)ildcare fees that rel*e the ppriod PDSt 31stAugust 2025. 83lance at 1st September 2024 Movement in the yearllamounts rdeasedl Balance at 31st August 2025 34,075 36,277 7Q,352 112,6D4 178,5291 34,075 9. Credltors: Amount5 fallirvgdue after one year 2025 2024 ObliEation5 under finanÈÈ leasÈ and hire pur£hase coTrirxts Deferred taxation 8.794 12,982 19.425 32,407 8,794 10. Comrdtments under operating le At 31 AuEUSt 2025 the cornpany had future minimum lease payments under rblxFcar￿e11ab1@ operating leasesfor land and buildinES - leaseholds. fry each of the followin8 PEriods'. 2025 2024 Notlater than l year Laterthan l year and not later ihan 5 years Laterthan 5 years 235,216 898,605 453.590 1.587,411 211,556 823.027 475,949 1,510.532 11. Called Up Share Captsl 2025 2024 Allotted, issued and fully paid.. Number.. UasS= 150 OTdinary Nominal Value £1 150 150 IZ. Restricted Fynds At31 August 2025 September 2024 Intthne Ex￿dit-u￿e Transfers Bitterne Community Fund 1S.CMN) 115,LKMJ During the ye3r, Paint Pots t(M)k overa setting which was liketyto be c105ed. The pTevK>th% management made a donation to Paint Pot5 of £15.WO and restrirted the use of thisfurbd to 5alarie5 of the exirting thff whil# the tskeover(Kcurred. Page 19 PAINT POTS PRE-SC*IOOI & NURSERY LIMrrED Notes to the F5nanclal Statements Icontinuedl FOR TNE YEAR ENDED 31st AuKUSt 2025 l* Reconciliat*?n of movem*￿ in Plet Debt Atl Sewember 2024 Cashflows At31 August 2025 Otherrton- (ash Charyes Hnandng Cash at 8ank and in harKI Debt due within I year Debt due after morethan l yvar Finance Leases 679.494 322.546 1.002,040 117.1711 4.189 326 735 112,9821 989 058 14. Related party transartions One trustee recewed remuneration from the Charity. delailsof which are shown in Note 3 tothe xcounts. Durin8 the year, travel expenses of £14312024- EThill were reimbursed to one tnJstÈe. During rhe year LSE repaid £350.OtQ12024- £nill to P3int Pots, leawng a balarKe of £345.15712024- £695,157> owing at the year end. Paint Pot5 rnade a gift aid donauon of £576,66212024- É121,8891 to LSE during ihe year. 15. Controlllm8 partv The entire Share capital of the company is owned by Laurthpad Social Enterprise ILSEI, charrty regt5tered number 1162372 (England and Wales). company registered nvrnber9166520. The purFx)5e of LSE 15 a holdsng cornpany. holding the shares of Paint Pots Pre-SclK)ol & Nursery Ltd. Pa8e 20