2020-12-31-accounts - The English Language Centre

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						Page
Trustees' report						1-4
Statement of	trustees'		responsibilities
Independent	auditor's	report				6-8
Consolidated	statement		offinancial		activities
Consolidated	statement		offinancial		position	10
Company statement		offinancial		position
Consolidated	statement		ofcash	flows		12
Notes to the	financial	statements				13-25

			Unrestricted	Unrestricted	Total	Unrestricted	Unrestricted	Total
			funds	funds		funds	funds
			general	designated		general	designated
		Notes	2020 f	2020f	2020 f	2019 F	2019 f	2019 f
Income from:
Donations and legacies			845,879		845,879
Charitable activities			763,225		763,225	2,979,324		2,979,324
Investments			1,068		1,068	5,219		5,219
Total income			1,610,172		1,610,172	2,984,543		2,984,543
~E* dlt
Charitable activities
Charitable activities		6	2,509,531		2,509,531	3,247,668		3,247,668
Grants payable		6	13,289		13,289	25,899		25,899
Total charitable	expenditure		2,522,820		2,522,820	3,273,567		3,273,567
Net expenditure	for the	year/
Net movement	in funds		(912,648)		(912,648)	(289,024)		(289,024)
Fund balances	at 1
January 2020			7,229,448	46,427	7,275,875	7,518,472	46,427	7,564,899
Fund balances	at 31
December 2020			6,316,800	46,427	6,363,227	7,229,448	46,427	7,275,875

			2020	2019
		Notes	6	8
Fixed assets
Intangible assets		9	402,123	446,803
Tangible assets		10	7,747,192	7,791,848
			8,149,315	8,238,651
Current assets
Stocks		13	1,877	4,885
Debtors		14	113,447	448,163
Cash at bank and in	hand		192,027	534,002
			307,351	987,050
Creditors: amounts	falling due within	16
one year			(901,828)	(1,502,661)
Net current (liabilities)/assets			(594,477)	(515,611)
Total assets less current liabilities			7,554,838	7,723,040
Creditors: amounts	falling due after	18
more than one year			(1,191,611)	(447,165)
Net assets			6,363,227	7,275,875
Income funds
Unrestricted funds -	designated		46,427	46,427
General unrestricted	funds		472,514	1,385,162
Revaluation reserve			5,844,286	5,844,286
			6,316,800	7,228,448
		20	6,363,227	7,275,875

				2020	2019
			Notes	f	8
Fixed assets
Intangible	assets		9	402,123
Tangible assets			10	7,747,192		7,791,848
Investments			11	201		245,961
				8,149,516		8,037,809
Current assets
Stocks			13	1,877	4,885
Debtors			14	113,447	384,486
Cash at bank and in		hand		192,027	511,609
				307,351	900,980
Creditors:	amounts	falling due within	16
one year				(902,029)	(1,157,504)
Net current	(liabilities)/assets			(594,678)		(256,524)
Total assets less current liabilities				7,554,838		7,781,285
Creditors:	amounts	falling due after	18
more than	one year			(1,191,611)		(447,165)
Net assets				6,363,227		7,334,120
Income funds
Unrestricted	funds —designated			46,427		46,427
General unrestricted		funds		472,514	1,443,407
Revaluation	reserve			5,844,286	5,844,286
				6,316,800		7,287,693
			20	6,363,227		7,334,120

					2020	2019
				Notes	E	6
Cash flows from operating		activities
Cash generated from/(absorbed			by)	23
operations					(1,029,134)	(92,464)
Investing	activities
Purchase	ofsubsidiaries					(1,191,830)
Interest received					1,068	5,219
Net cash (used in)/generated			from
investing	activities				1,068	(1,186,611)
Financing	activities
Proceeds	of new bank loans				705,600	505,520
Repayment	of bank loans				(19,509)
Net cash generated from/(used			in)
financing	activities				686,091	505,520
Net decrease in cash and		cash equivalents			(341,975)	(773,555)
Cash and	cash equivalents	at beginning		ofyear	534,002	1,307,557
Cash and	cash equivalents	at end of		year	192,027	534,002

				Unrestricted	Total
				funds
				general
				2020	2019
				6	6
Grants receivable for core activities
Coronavirus	Job Retention		Scheme	744,379
Local Authority		Grants		101,500
				845,879

				Fee income	Ancillary income	Rental Income	Total	Total 2019
				2			2	2
Income	within	charitable	activities	696,575	36,532	30,118	763,225	2,979,324

		Total	Total
		2020	2019
		E	E
Interest	receivable	1,068	5,219

					Year ended	Period ended
					31 December	31 December
					2020	2019
					E	E
Turnover						267,793
Direct costs						(187,185)
Gross profit						77,608
Administrative		expenses				(157,755)
Loss before tax						(80,147)
Tax on profit/(loss)						21,903
Loss after tax						(58,244)
The aggregate		of	assets, liabilities	and funds was:
					2020	2019
					E	E
Assets					301	542,419
Liabilities					(100)	(361,504)
Net assets					201	180,915
Represented	by:
Called up share capital					146	146
Capital redemption			reserve		55	55
Profit and loss		reserves				180,714
Total funds					201	180,915

			Charitable	Grants	Total	Total
			activities E	payable 6	2020 E	2019 f
Teachers' Salaries			966,925		966,925	1,257,006
Depreciation	and impairment		89,437		89,437	38,620
Educational	Materials		27,880		27,880	96,345
IT Costs			93,141		93,141	105,250
Publicity			59,152		59,152	170,127
Establishment	Expenses		167,563		167,563	433,096
Administrative	Expenses		980,480		980,480	1,030,685
Staff Courses ITraining			5,381		5,381	16,961
Student Accommodation			37,581		37,581	(865)
Financial Charges			31,893		31,893	32,316
Grants				13,289	13,289	25,899
			2,459,433	13,289	2,472,722	3,205,440
Share of governance		costs	50,098		50,098	68,127
			2,509,531	13,289	2,522,820	3,273,567

The average monthly number ofemployees durin	g the year was:
	2020	2019
	Number	Number
Teaching	45	47
Administration	35	30
	80	77

Staff costs
Employment costs	2020	2019
	E	E
Wages and salaries	1,610,180	1,849,137
Social security costs	134,877	161,180
Other pension costs	137,345	144,984
	1,882,402	2,155,301

The number of employees whose annual remunera were:	tion was E60,000 or more
	2020	2019
	Number	Number
60,000-70,000	1
70,000-80,000
90,000-100,000

Intangible fixed asset	s
		Group	Company
		Goodwill	Goodwill
		E	E
Cost
At 1 January 2020		446,803
Additions —separately	acquired		446,803
At 31 December 2020		446,803	446,803
Amortisation and impairment
At 1 January 2020
Amortisation charged	for the year	44,680	44,680
At 31 December 2020		44,680	44,680
Carrying amount
At 31 December 2020		402,123	402,123
At 31 December 2019		446,803

Tangible fixed assets
		Freehold land		Fixtures,		Motor vehicles	Total
		and buildings		fittings	&
				equipment
					8	8
Cost or valuation
At 1 January 2020			7,865,000	133,423		13,788	8,012,211
At 31 December 2020			7,865,000	133,423		13,788	8,012,211
Depreciation and impairment
At 1 January 2020			75,600	133,423		11,340	220,363
Depreciation charged	in the year		44,044			612	44,656
At 31 December 2020			119,644	133,423		11,952	265,019
Carrying amount
At 31 December 2020			7,745,356			1,836	7,747,192
At 31 December 2019			7,789,400			2,448	7,791,848
All group assets were	held by the	charity at 31 December	2020 and 31 December			2019.
The carrying value of land included		in land and buildings	comprises:
						2020	2019
						f	8
Freehold						2,425,000	2,425,000

Fixed asset investments	Fixed asset investments	Fixed asset investments
Company				Other
				investments
				6
Cost or valuation
At 1 January 2020				245,961
Properties transferred		on acquisition		1,115,000
Write down ofvalue	in	subsidiary		(855,714)
Transfer to goodwill				(446,803)
Impairment				(58,243)
At 31 December 2020				201
Carrying amount
At 31 December 2020				201
At 31 December 2019				245,961
			2020	2019
Other investments	comprise:		f	f
Investments in subsidiaries			201	245,961

Fixed	asset investments	asset investments	—grou	p companies
Name	of undertaking			Registered office	Nature of		Class of		% Held
							shares		Direct	Indirect
English	ln	Chester Limited		33 Palmeira Mansions,	English	language	Ordinary		100.00
				Hove, England, BN3 2GB	school
Stanley	Place (Holdings)		I imited	33Palmeira Mansions,	Property	holding	Ordinary			100.00
				Hove, England, BN3 2GB	company
Eastbourne		School of English		8 Trinity Trees, Eastbourne	Dormant		Limited	by	100.00
Limited				Sussex, BN21 3LD			Guarantee

Stocks
						Group		Company
						2020	2019	2020	2019
								6	f
Finished	goods	and	goods	for	resale	1,877	4,885	1,877	4,885

14	Debtors
				Group		Company
				2020	2019	2020	2019
	Amounts	falling	due within one year:	E	E	E	E
	Trade debtors			109,074	317,102	109,074	274,226
	Other debtors			4,373	131,061	4,373	110,260
				113,447	448,163	113,447	384,486
15	Loans and overdrafts
						2020	2019
						E	E
	Bank loans					1,191,611	505,520
	Payable	within one year					58,355
	Payable	between	one and five years			896,426	163,707
	Payable	after five	years			295,185	283,458

				Group		Company
				2020	2019	2020	2019
			Notes	E	E	E
Bank loans and overdrafts			15		58,355		58,355
Taxation	and social security			17,313	77,981	17,313	49,990
Deferred	income		17	453,026	429,936	453,026	355,284
Payments	received on account			354,238	706,170	354,238	474,500
Trade creditors				77,251	216,435	77,251	203,028
Other creditors					13,784
Amounts	owed to subsidiary	undertakings				201	16,347
				901,828	1,502,661	902,029	1,157,504

				Group		Company
				2020	2019	2020	2019
				E	E		E
Balance	as at 1 January 2020			429,936	294,093	355,284	294,093
Amount	released	to	income from
charitable activities				(429,936)	(294,093)	(355,284)	(294,093)
Amount	deferred	in	year	453,026	429,936	453,026	355,284
Balance	as at 31	December 2020		453,026	429,936	453,026	355,284
Creditors: amounts			falling due after more than	one year
				Group		Company
				2020	2019	2020	2019
			Notes	E	E	F	E
Bank loans			15	1,191,611	447,165	1,191,611	447,165

Analysis of group net assets between	Analysis of group net assets between	Analysis of group net assets between
			Unrestricted	Designated	Total	Total
			funds	funds
			2020	2020	2020	2019
					8
Fund balances		at 31 December 2020 are
represented	by:
Tangible assets			7,747,192		7,747,192	7,791,848
Goodwill			402,123		402,123	446,803
Current assets/(liabilities)			(640,904)	46,427	(594,477)	(515,611)
Long term	liabilities		(1,191,611)		(1,191,611)	(447,165)
			6,316,800	46,427	6,363,227	7,275,875

			Group		Company
			2020	2019	2020	2019
			6		6	8
Within one year			12,637	22,823	12,637	10,661
Between two and five years			14,239	24,899	14,239	24,899
			26,876	47,722	26,876	35,560
Related party transactions
Remuneration	of key management	personnel
The remuneration	of key management	personnel	is as follows.
					2020	2019
						8
Aggregate compensation					215,968	178,466

23	Cash generated from	operations						2020 6	2019 f
	Deficit for the year							(912,648)	(289,024)
	Adjustments for:
	Tax adjustments								(21,903)
	Investment income recognised in		statement		offinancial	activities		(1,068)	(5,219)
	Depreciation and impairment oftangible			and	intangible	fixed assets		89,336	38,620
	Movements in working	capital:
	Decrease in stocks							3,008	801
	Decrease/(increase) in	debtors						334,716	144,872
	Increase/(decrease) in	creditors						(542,478)	39,389
	Cash generated from/(absorbed		by)	operations				(1,029,134)	(92,464)
24	Analysis ofchanges	In net debt
							At 1 January	Cash flows	At 31 December
							2020		2020
							6		f
	Cash at bank and in hand						534,002	(341,975)	192,027
	Loans falling due within	one year					(58,355)	58,355
	Loans falling due after	more than	one year				(447,165)	(744,446)	(1,191,611)
							28,482	(1,028,066)	(999,584)