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← Tom Thumb Nursery And Playgroup Limited

2025-07-31-accounts

TOM THUMB NURSERY AND PLAYGROUP LIMITED

(A company limited by guarantee)

Annual report and financial statements

For the year ended

31 July 2025

Company No SC269999

FOR THE YEAR ENDED 31 JULY 2025

ANNUAL REPORT AND FINANCIAL STATEMENTS

CONTENTS

Trustees’ annual report (including Directors’ report) ....................................................................... 3 - 6
Independent examiner’s report ....................................................................................................... 7
Statement of financial activities (including income and expenditure account) .................................. 8
Statement of financial position (Balance sheet) .............................................................................. 9
Statement of cash flows ................................................................................................................. 10
Notes to the financial statements ................................................................................................... 11 - 18

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 JULY 2025

The trustees, who are the directors of the company for the purposes of company law, present their report and financial statements together with the independent examiner’s report for the year ended 31 July 2025.

OBJECTIVES AND ACTIVITIES

The objects of the charity are to advance the education of pre-school children with the emphasis on play experience, so that they may take a constructive place in the community, and to advance the education of their parents and other appropriate persons.

Tom Thumb Nursery and Playgroup Limited (“the Group”) aims to do this through its provision of playgroup facilities for the under threes, and nursery for the three- to five-year-olds.

ACHIEVEMENTS AND PERFORMANCE

This has been a difficult year for all involved in the Group. We have been renting a local church hall for our activities since more than 20 years and during that time have maintained a very good relationship with both our landlords and the local community. The City of Edinburgh Council had agreed to provide grant funding for our 3-to-5-year-old children, which gave us a reasonably solid financial basis to reward our staff adequately. When space permitted, we took on a small number of two-year-old children for playgroup sessions.

However, the year began with the news of an imminent inspection by the Care Inspectorate. This took place for a full week in September. The inspectors judged the level of childcare and education to be very good but found that the toilet provision was too low for the numbers of children, although there had never been any problems with children waiting to go. The hall was marked down as lacking in one toilet.

The inspectors were also concerned about the children using the walled garden opposite the church hall. Playing and working in this space was a strong component of the weekly programme, allowing the children to be out in the open air and to do outdoor activities. However, the walled garden is publicly owned and theoretically open to the general public, although very seldom used during the working week.

The managers were rightly concerned that if the hall were inspected again, which could be any time after 12 months had passed, the organization would be marked down for not having addressed these two issues, although it was accepted that we were not in control of the fabric of the hall.

We immediately began a search for other suitable local premises, but operating within a fairly tight geographical area meant that this search quickly drew a blank. The local authority had recently opened two new nurseries within the wider area that still had vacancies, so would not have considered helping with the cost of renting and fitting out a new building, even if one had been located.

While we were trying to set up a meeting with the landlords, who themselves were having financial problems common to many religious bodies, one of our staff decided to take up a job offer in Australia. We immediately began a recruitment process for a replacement but drew a blank as far as finding suitably qualified and experienced practitioners. At this point another practitioner decided that she needed to work closer to home rather than having a stressful daily commute and was quickly able to find a job with her local authority. A third practitioner was offered a ‘dream job’ with an organization where she had been volunteering.

The Board decided to widen the recruitment media by taking out ads on well-known general job sites, as well as reaching out to other people working in the nursery sector. We also agreed on a 6% pay increase with immediate effect in order to encourage applicants. The result was still alarmingly unsuccessful, so at the end of November the painful decision was taken to close the nursery at the end of term, i.e. just before Xmas, and to help relocate the children to other nurseries where space was available.

Despite the best efforts of a group of affected parents to help resolve the situation, we had to proceed with the closure and with help from the local authority were able to find spaces for all the children to start at the beginning of January. The remaining staff were given three months’ notice pending any last-minute solution.

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 JULY 2025

After the holiday break, the managers suggested that the Group could revert to offering playgroup sessions Monday-Friday lunchtime to two-year-old children for the period before they became eligible for a funded nursery place. If enough parents took up the sessions, there was a chance of surviving with a different business model, although there would have to be a period of closure while the equipment and facilities were appropriately updated for the needs of younger children. This proposal would keep all the existing employees in their posts.

The Board agreed to proceed on this basis, realizing that expenditure would exceed income for probably a year or more. The accumulated reserves would allow activities to continue for several months while we saw what the take-up would be. We recognized that cashflow would have to be carefully monitored and all expenditure trimmed to an absolute minimum.

By the beginning of March, the remaining staff had worked wonders in deep cleaning the hall, removing the old nursery equipment and replacing it with donated, borrowed or cheaply bought play material for younger children. Fortunately, Storm Eòwyn completely destroyed the garden shed we had been using in the open space next to the hall, which released a larger fully enclosed, private area for outdoor activities.

The Care Inspectorate agreed the new setting with the maximum number set at 10 children for any one session. The re-opening was advertised locally, with the price set at a level just slightly lower than other nearby playgroups.

The playgroup re-opened its doors on 24th March, with 10 children signed up for a total of 20 sessions out of the 90 available for the whole week. Word spread quickly and by the end of the summer term there were 15 children signed up for a total of 31 sessions.

From August 2025 we began to offer full-day places for an extra £10, which quickly proved popular with parents. By the time of writing this report, we have a total of 25 children, with 72 sessions taken up and 11 children with us for the whole day.

Some of the weekdays have been completely full for several months now, so we have recently applied to the Care Inspectorate to increase the maximum to 15 children per session. If this permission is forthcoming, we should be well on our way to reaching a break-even position by the end of 2025-26.

FINANCIAL REVIEW

The following is a summary of receipts and payments for the year.

Income
Expenditure
Net income/(expenditure)
Net assets as at 31/07/2024
Net assets as at 31/07/2025		 2025
2024
£
£
108,990
195,753
(154,336)
(221,017)
(45,346)
(25,264)
107,769
133,033
62,423
107,769

Reserves policy

In 2022, the trustees decided to increase the level of reserves to around six months of annual expenditure to meet timing differences between receipts and payments, as well as to cushion the uncertainty around the number of funded children and the level of Council funding going forward.

At the beginning of the year the unrestricted reserves stood at £107,769. For the reasons set out in the activity report, these dropped dramatically in the period January to March. Since then, the deficit on each month has slowed to roughly £2,000, such that the reserves stood at £62,423 by the end of July 2025.

The reserves policy is currently under review.

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 JULY 2025

FUTURE PLANS

The charge per playgroup session will be increased by £1 to £18.50 at the beginning of January 2026. Further price increases cannot be ruled out and will be considered over the course of the next financial year.

The Board and staff have determined to pursue all possible channels for bringing in more income and made a successful application to the Queensferry & District Community Council for a contribution to the Xmas Fair. With generous contributions from a number of local businesses and a lot of volunteer work, we managed to generate about £1,700 for this fundraising activity.

Other possibilities for fundraising activities throughout the year are under active consideration.

STRUCTURE GOVERNANCE AND MANAGEMENT

Governing document

Tom Thumb Nursery and Playgroup Limited is:

Any parent or guardian of a child in the Group can become a member of the company. Members are required to contribute an amount not exceeding £1 if it should be wound up while he/she is a member, or within one year after he/she ceases to be a member.

Appointment of trustees

Trustees are elected by the members of the company each year at the Annual General Meeting. Trustees may co-opt additional trustees between Annual General Meetings, if required.

Organisational structure

The trustees, who meet quarterly, are responsible for overseeing the running of the Group and for employing the staff. To facilitate effective and efficient operations, day-to-day management of the nursery is delegated to the nursery manager.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity name Tom Thumb Nursery and Playgroup Limited
Charity number SC007562
Company number SC269999
Principal address and The Vennel Hall
registered office Smith's Land
South Queensferry
EH30 9HU
Website address www.thetomthumbnursery.co.uk

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 JULY 2025

Current trustees Shivonne Coker
Jenna Harrower Appointed 26/11/2024
Emma McComish Appointed 27/05/2025
Gary Menzies
Stephanie Mitchell
Other trustees who served Lyndsey Campbell Resigned 09/07/2025
during the year Gemma Easton Resigned 27/05/2025
Martina Vajsova Appointed 27/05/2025 Resigned 30/10/2025
Company secretary Stephanie Mitchell Appointed 04/03/2026
Fiona Dick Resigned 04/03/2026
Nursery manager Kirsty Stenhouse
Bankers Co-operative Bank plc
PO Box 260
Skelmersdale
WN8 6WT
Independent examiner Michael Brougham MCBI FCIE
3 Lyne Grove
Crossford
Dunfermline
KY12 8YB

APPROVAL

This report, which has been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies, was approved by the trustees on 14 April 2026 and signed on their behalf by:

Gary Menzies

Gary Menzies

Director/Trustee

INDEPENDENT EXAMINER’S REPORT

FOR THE YEAR ENDED 31 JULY 2025

Independent examiner's report to the trustees of Tom Thumb Nursery and Playgroup Limited

I report on the accounts of the charity for the year ended 31 July 2025, which are set out on pages 8 to 18.

Respective responsibilities of trustees and examiner

The charity’s trustees (who are the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 ("the 2005 Act") and the Charities Accounts (Scotland) Regulations 2006 (as amended) ("the 2006 Regulations"). The trustees consider that the audit requirement of Regulation (10)(1)(a) -(c) of the 2006 Regulations does not apply.

It is my responsibility to examine the accounts under section (44)(1)(c) of the 2005 Act and to state whether particular matters have come to my attention.

Basis of independent examiner's statement

My examination is carried out in accordance with Regulation 11 of the 2006 Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Independent examiner's statement

In connection with my examination, no matter came to my attention:

  1. which gives me reasonable cause to believe that in any material respect, the requirements

  2. to keep accounting records in accordance with section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Regulations, and

  3. to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Regulations

have not been met, or

  1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Michael Brougham

Michael Brougham, MCBI FCIE

3 Lyne Grove Crossford Dunfermline KY12 8YB

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 JULY 2025

Income from:
Donations
Investment income
Fund raising
Grants
Playgroup sessions
Trips
Expenditure on:
Staff salaries
Other staff costs
Other nursery costs
Governance costs
Net expenditure
Reconciliation of funds
Total funds as at 01 August 2024
Total funds as at 31 July 2025		 Note 2025
2024
6
7
8		 £
£
70
-
2,513
2,839
205
-
98,656
183,180
5,585
8,702
1,961
1,032
108,990
195,753
128,011
179,956
147
1,228
25,579
39,223
599
610
154,336
221,017
(45,346)
(25,264)
107,769
133,033
62,423
107,769

All income and expenditure derive from continuing activities.

The above statement includes all gains and losses recognised during the year and complies with the requirements for an income and expenditure account under the Companies Act 2006.

The Notes on pages 11 to 18 form an integral part of these accounts.

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)

AS AT 31 JULY 2025

Fixed assets:
Tangible assets
Current assets:
Debtors
Cash at bank and in hand
Liabilities:
Creditors (due within one year)
Net current assets
Net assets
Funds of the charity:
Unrestricted funds		 Note 2025
2024
9
10
11		 £
£
-
-
850
1,174
61,573
109,166
62,423
110,340
-
2,571
62,423
107,769
62,423
107,769
62,423
107,769

The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 31 July 2025

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

The Notes on pages 11 to 18 form an integral part of these accounts.

These accounts, which have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies, were approved by the trustees on 14 April 2026 and signed on their behalf by:

Gary Menzies

Gary Menzies

Director/Trustee

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2025

Cash flows from operating activities:
Net income/(expenditure) per SoFA
Depreciation
(Increase)/decrease in debtors
Increase/(decrease in creditors)
Net movement in cash
Total cash as at 01 August 2024
Total cash as at 31 July 2025
Cash at bank and in hand		 2025
2024
£
£
(45,346)
(25,264)
-
4,004
324
287
(2,571)
2,409
(47,593)
(18,564)
(47,593)
(18,564)
109,166
127,730
61,573
109,166
61,573
109,166

The Notes on pages 11 to 18 form an integral part of these accounts.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

1. Basis of preparation

2. Accounting policies

Currently all funds are unrestricted

The purposes of the funds are shown in Note 13

Income is recognised and included in the Statement of Financial Activities (SoFA) when the charity becomes entitled to the income; receipt is probable; and the monetary value can be measured with sufficient reliability. The specific bases used are as follows:

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

Liabilities are recognised when it is probable that there is a legal or constructive obligation committing the charity to pay out resources and the monetary value can be measured with sufficient reliability. The specific bases used are as follows:

(i) Hall flooring 25% Straight line
(ii) Playgroup equipment 25% Straight line
(iii) Staff room 25% Straight line

2.5. Cash

2.6. Creditors

2.7. Financial Instruments

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

2.8. Taxation

The charity is not liable to corporation tax or capital gains tax on its charitable activities.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

3. Trustee remuneration and benefits

None of the trustees received any remuneration or any other benefits during the year or in the previous year.

4. Trustee expenses

No expenses were reimbursed to the trustees during the year or in the previous year.

5. Transactions with related parties

There were no transactions with related parties during the year or in the previous year.

6. Staff costs

Salary costs
Salaries
Employer's national insurance
Employer's pension contributions
No employee received remuneration in excess of £60,000
Employee benefits for key management personnel
Average number of employees
Nursery manager
Nursery staff
Cleaning
Administration		 2025
2024
£
£
116,096
163,947
5,934
7,118
5,981
8,891
128,011
179,956
-
57,482
2025
2024
1
1
3
7
1
1
1
1
6
10

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The employer’s pension costs represent contributions payable by the charity to the fund.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

7. Other nursery costs

Advertising
Bank charges
Cleaning materials
Depreciation
Food and drink
Insurance
Outings and events
Play equipment and materials
Postage, stationery and telephone
Professional fees
Rent and repair of premises
Subscriptions
Website
Sundry expenses
Governance costs
Care Inspectorate registration
Donation in lieu of independent examination fee
Filing fees
Travel		 2025
2024
£
£
1,088
351
60
-
827
1,899
-
4,004
6,442
10,376
1,567
1,166
179
1,494
2,535
7,410
440
883
2,065
1,525
8,706
8,658
1,016
889
650
476
4
92
25,579
39,223
2025
2024
£
£
165
165
400
400
34
34
-
11
599
610

8. Governance costs

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

9. Tangible fixed assets

Flooring &
PlaySurface
Equipment
Cost
£
£
As at 01 August 2024
9,278
3,654
Additions
-
-
Disposals
-
-
As at 31 July 2025
9,278
3,654
Depreciation
As at 01 August 2024
9,278
3,654
Charge for the year
-
-
Eliminated on disposals
-
-
As at 31 July 2025
9,278
3,654
Net Book Value
As at 01 August 2024
-
-
As at 31 July 2025
-
-
10.
Debtors
Prepayments
Other debtors
11.
Creditors (falling due within one year)
Accruals
Deferred income (grant funding )
Other creditors		 Flooring &
PlaySurface
Equipment
Cost
£
£
As at 01 August 2024
9,278
3,654
Additions
-
-
Disposals
-
-
As at 31 July 2025
9,278
3,654
Depreciation
As at 01 August 2024
9,278
3,654
Charge for the year
-
-
Eliminated on disposals
-
-
As at 31 July 2025
9,278
3,654
Net Book Value
As at 01 August 2024
-
-
As at 31 July 2025
-
-
10.
Debtors
Prepayments
Other debtors
11.
Creditors (falling due within one year)
Accruals
Deferred income (grant funding )
Other creditors		 Staff
Total

Room
2025
£
£
9,278
3,654
-
-
-
-
£
£

5,870
18,802

-
-

-
-
9,278
3,654
5,870
18,802
9,278
3,654
-
-
-
-
5,870
18,802

-
-

-
-
9,278
3,654
5,870
18,802
-
-
-
-
-
-
-
-
2025
2024
£
£
850
1,174
-
-
850
1,174
2025
2024
£
£
-
585
-
1,986
-
-
-
2,571

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

12. Movements in funds

General fund
Fixed assets fund		 As at
As at
31/07/2024
Income Expenditure31/07/2025
£
£
£
£
107,769
108,990
(154,336)
62,423
-
-
-
-
107,769
108,990
(154,336)
62,423

Comparative figures for the previous year are shown in Note 16.

13. Purposes of funds

General Fund

Unrestricted funds expendable at the discretion of the trustees in furtherance of the charity’s purposes.

Fixed assets fund Unrestricted designated fund representing the net book value of the charity's fixed assets.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

14. Comparative Statement of Financial Activities

Income from:
Investment income
Grants
Playgroup extra sessions
Trips
Expenditure on:
Staff costs
Other staff costs
Other nursery costs
Governance costs
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds as at 01 August 2023
Total funds as at 31 July 2024		 Unrestricted Designated
Restricted
Total
Funds
Funds
Funds
2024
£
£
£
2,839
-
-
2,839
183,180
-
183,180
8,702
-
-
8,702
1,032
-
-
1,032
195,753
-
-
195,753
179,956
-
-
179,956
1,228
-
-
1,228
35,219
4,004
-
39,223
610
-
-
610
217,013
4,004
-
221,017
(21,260)
(4,004)
-
(25,264)
-
-
-
(21,260)
(4,004)
-
(25,264)
129,029
4,004
133,033
107,769
-
-
107,769

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

15. Comparative Statement of Financial Position (Balance Sheet)

Fixed assets
Tangible assets
Current assets
Debtors
Cash at bank
Liabilities
Creditors (due within one year)
Net current assets
Net assets
Funds of the charity
Unrestricted funds
16.
Comparative Movement in Funds
General fund
Fixed assets fund		 Unrestricted Designated
Restricted
Total
Funds
Funds
Funds
2024
£
£
£
£
-
-
-
-
1,174
-
-
1,174
109,166
-
-
109,166
110,340
-
-
110,340
2,571
-
-
2,571
107,769
-
-
107,769
107,769
-
-
107,769
107,769
-
-
107,769
As at
As at
31/07/2023
Income Expenditure31/07/2024
£
£
£
£
129,029
195,753
(217,013)
107,769
4,004
-
(4,004)
-
133,033
195,753
(221,017)
107,769