A Finchley nursery's future is in jeopardy after a damning Ofsted report judged it to be "inadequate" across the board.

Busy Bees nursery, in Leisure Way, was given the lowest grade on a four-point scale in all six categories.

Inspectors said the school must take urgent action to improve, or face enforcement action. If it fails to meet standards within a set timescale, it could face losing its right to operate.

The six categories assessed were: protecting children from harm or neglect and helping them stay safe; helping children to be healthy; helping children achieve well and enjoy what they do; nursery education; helping children make a positive contribution, and organisation.

In the protecting children section, inspectors wrote: "Systems to protect children from cross infection are inadequate. Staff have limited knowledge and understanding about cross-infection, for example, isolating children when ill to ensure others are protected."

They said accident and medical records were not always fully completed, posing a risk to children's health.

The report said the nursery must develop "meaningful play activities", to foster independence and communication skills, and improve language and literacy learning. And it called for more opportunities for parents and carers to be included.

A Busy Bee spokesman said the nursery was "disappointed" with the report, but it was trying hard to improve.

He said: "As a company committed to the well-being, care and safety of the children, we are working closely with Ofsted to rectify the issues highlighted by the report. As part of this strategy we are holding staff training sessions and senior managers will be on site regularly to offer increased support.

"We have on-going communication with parents and at no time has any parent raised any issues with us about the care of the children in the last 12 months."

Fiona Mocatta, 33, of Templars Crescent, whose two children, one-year-old Sam and Orli, nearly four, attend the nursery, said: "I think the Ofsted report is totally unfair and not an accurate reflection of the nursery that I have been going to almost daily for the past three years.

"Whenever I have had minor issues I have always been able to speak to someone in charge immediately and there's no way I'd send my children there if I thought that was an accurate reflection of how they were being looked after. I know that my children are being well looked after - they are loved and cared for."

In 2006/7, 43 per cent of childcare providers insp-ected were judged satisfactory or inadequate. The proportion of prov-iders found to be inadequate was four per cent.

Barnet Council, which administers money to the nursery on behalf of the Government, said it had two options: give the nursery time to improve before a further Ofsted inspection or remove the nursery from its directory of providers and withdraw funding.

A council spokesman said: "The council will be working with the provider to establish the best way forward. It will not hesitate to take more formal action if that is required."