B-Skill Limited Filleted Accounts Cover |
Company No. 03939817 | |||||||||
B-Skill Limited Directors Report Registrar |
The Directors present their report and the accounts for the year ended 31 January 2023. | |||||||||
Principal activities | |||||||||
The fiscal year started in February 2022, as the country emerged a little hesitantly from the Covid Pandemic. The impact of Covid on young people was profound with many even one year later still not returning fully if at all into education, for a variety of reasons often related to the isolation experienced during crucial formative years. It is not surprising therefore that a program such as traineeships, reliant on recruitment of young people for its success, should find the learner engagement process expensive and challenging with the inevitable negative impact on volumes and cohort viability. This was not helped with the availability of shorter and more accessible courses such as Bootcamps which offer a quicker route into work, without the need to undertake maths and English exams for those without the necessary GCSE grades. B-Skill had previously won a significant 19-24 traineeship contract and as with many Traineeship providers, for these reasons we found the contract costly to deliver without achieving the planned volumes and revenues. As a result of a policy decision by the ESFA earlier this year, the contract will cease in July 2023, and this will not therefore be a concern for B-Skill moving forwards into next year. However the failure of the traineeship program to achieve planned revenues has impacted negatively on the 2022-23 outturn. February 2022 also saw the invasion of Ukraine create a socio-economic shock for the business environment, arriving just as companies were looking to emerge from Covid. This had a deep impact on business confidence already struggling with the pandemic and post Brexit labour shortages. Whilst many employers looked to improve the skills of their workforce, they often struggled to find the ‘Off the Job Time’ required for apprenticeship training. This meant that apprenticeship start volumes for existing employees post Covid have been lower than anticipated. For B-Skill this has been made worse by the fact that we voluntarily suspended apprenticeship starts for much of 2020 to restructure our apprenticeship program and invest heavily in new curriculum development along with a new end to end digital learning platform. The suspension of starts meant that apprenticeship volumes for 2021 and carried into 2022 were much lower than they otherwise would have been, and the uncertain economic environment in 2022-23 meant that recovery from this low base was also slower than expected. However the hard work and investment in the new Standards paid off when we improved our grade to ‘Good’ for apprenticeships at our Ofsted inspection in February 2023. B-Skill’s strength has always been our relationship with employers and all our main clients have remained with us throughout the pandemic and up to the present day, but volumes for client staff upskilling have been slow to recover. A new sales strategy was required and this year we have focused more on recruitment of new apprentices to fulfil our clients’ labour and skills shortages, rather than on upskilling of their existing staff. This has proven extremely popular with great client feedback which is also generating many new and satisfied business clients. Our Ofsted Good grade for apprenticeships has also opened doors with new clients that were previously closed to us. As a result apprenticeship standards are starting to grow steadily despite the tough market conditions, underpinned by the very high and proven levels of quality in our apprenticeship programs. Our adult programs are also continuing to grow steadily, and we are actively seeking new funded adult opportunities that fit with our expertise and geographic reach. We continue to seek cost savings and offer better value for money by hybrid working and the move away from city centre offices to smaller serviced office space. Adult training centres are rented on a more flexible basis enabling us to provide courses where and when our leaners need them. Using the new platform and curriculum apprenticeships are delivered on a blended basis offering a more engaging and flexible service to the learner, whilst at the same time reducing cost of delivery. We will cease subcontracting at the end of this contract year which reduces the bureaucratic burden associated with subcontracting and should also improve delivery margins. Our Equity Partners Balder Capital not only share our growth ambition, but more importantly our values also. Their continued support enables us to make the right choices together, to build B-Skill as a recognised, and reliable quality brand in the independent training provider sector. | |||||||||
Directors | |||||||||
The Directors who served at any time during the year were as follows: | |||||||||
I.T. Harrison (Governance) | |||||||||
C.H. Raine (Governance) | |||||||||
P.A. Sanderson (Executive) | |||||||||
J.R. Sutton (Governance) | |||||||||
R.L. White (Executive) | |||||||||
P. Wileman (Executive) | |||||||||
Signed on behalf of the board | |||||||||
P. Wileman (Executive) | |||||||||
Director | |||||||||
31 January 2023 |
B-Skill Limited Balance Sheet Registrar |
at | ||||||||||
Company No. | Notes | 2023 | 2022 | |||||||
£ | £ | |||||||||
Fixed assets | ||||||||||
Intangible assets | 4 | |||||||||
Tangible assets | 5 | |||||||||
Current assets | ||||||||||
Stocks | 6 | |||||||||
Debtors | 7 | |||||||||
Cash at bank and in hand | ||||||||||
Creditors: Amount falling due within one year | 8 | ( | ( | |||||||
Net current assets | ||||||||||
Total assets less current liabilities | ||||||||||
Creditors: Amounts falling due after more than one year | 9 | ( | ( | |||||||
Net assets | ||||||||||
Capital and reserves | ||||||||||
Called up share capital | ||||||||||
Share premium account | 10 | |||||||||
Profit and loss account | 10 | ( | ( | |||||||
Total equity | ||||||||||
As permitted by section 444 (5A)of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company's profit and loss account. | ||||||||||
Approved by the board on 31 January 2023 | ||||||||||
And signed on its behalf by: | ||||||||||
P. Wileman (Executive) | ||||||||||
Director | ||||||||||
31 January 2023 |
B-Skill Limited Notes to the Accounts Registrar |
for the year ended 31 January 2023 | ||||||||||||||
1 | General information | |||||||||||||
Its registered number is: 03939817 | ||||||||||||||
Its registered office is: | ||||||||||||||
2 | Accounting policies | |||||||||||||
Turnover | ||||||||||||||
Revenue from the sale of goods is recognised when all the following conditions are satisfied: • the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; • the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; • the amount of revenue can be measured reliably; • it is probable that the economic benefits associated with the transaction will flow to the Company; and • the costs incurred or to be incurred in respect of the transaction can be measured reliably. Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed. | ||||||||||||||
Intangible fixed assets | ||||||||||||||
Research and development costs | ||||||||||||||
Expenditure on research and development is written off in the year it is incurred unless it meets the criteria to allow it to be capitalised. Costs of research are always written off in the year in which they are incurred. Where development costs are recognised as an asset, they are amortised over the period expected to benefit from them. Amortisation of the capitalised costs begins once the developed product comes into use, typically at rate of 33.33% straight line. | ||||||||||||||
Taxation | ||||||||||||||
Income tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. | ||||||||||||||
Freehold investment property | ||||||||||||||
No depreciation is provided in respect of investment properties. | ||||||||||||||
Investments | ||||||||||||||
Stocks | ||||||||||||||
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. Work in progress is reflected in the accounts on a contract by contract basis by recording revenue and related costs as contract activity progresses. | ||||||||||||||
Trade and other debtors | ||||||||||||||
Trade and other creditors | ||||||||||||||
Foreign currencies | ||||||||||||||
Leased assets | ||||||||||||||
Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases. Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above). Assets held under finance leases are depreciated in the same way as owned assets. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis. | ||||||||||||||
Defined contribution pensions | ||||||||||||||
The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. | ||||||||||||||
Provisions | ||||||||||||||
Provisions are charged as an expense to the profit and loss account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet. | ||||||||||||||
3 | Employees | |||||||||||||
2023 | 2022 | |||||||||||||
Number | Number | |||||||||||||
The average monthly number of employees (including directors) during the year was: | ||||||||||||||
4 | Intangible fixed assets | |||||||||||||
Goodwill | Other | Total | ||||||||||||
£ | £ | £ | ||||||||||||
Cost | ||||||||||||||
At 1 February 2022 | ||||||||||||||
Additions | ||||||||||||||
At 31 January 2023 | ||||||||||||||
Amortisation and impairment | ||||||||||||||
At 1 February 2022 | ||||||||||||||
Charge for the year | ||||||||||||||
At 31 January 2023 | ||||||||||||||
Net book values | ||||||||||||||
At 31 January 2023 | ||||||||||||||
At 31 January 2022 | ||||||||||||||
5 | Tangible fixed assets | |||||||||||||
Plant and machinery | Fixtures, fittings and equipment | Total | ||||||||||||
£ | £ | £ | ||||||||||||
Cost or revaluation | ||||||||||||||
At 1 February 2022 | ||||||||||||||
Additions | ||||||||||||||
At 31 January 2023 | ||||||||||||||
Depreciation | ||||||||||||||
At 1 February 2022 | ||||||||||||||
Charge for the year | ||||||||||||||
At 31 January 2023 | ||||||||||||||
Net book values | ||||||||||||||
At 31 January 2023 | ||||||||||||||
At 31 January 2022 | 33,991 | 12,851 | ||||||||||||
6 | Stocks | |||||||||||||
2023 | 2022 | |||||||||||||
£ | £ | |||||||||||||
Raw materials and consumables | ||||||||||||||
Work in progress | ||||||||||||||
7 | Debtors | |||||||||||||
2023 | 2022 | |||||||||||||
£ | £ | |||||||||||||
Trade debtors | ||||||||||||||
Other debtors | ||||||||||||||
Prepayments and accrued income | ||||||||||||||
8 | Creditors: | |||||||||||||
amounts falling due within one year | ||||||||||||||
2023 | 2022 | |||||||||||||
£ | £ | |||||||||||||
Bank loans and overdrafts | ||||||||||||||
Trade creditors | ||||||||||||||
Taxes and social security | ||||||||||||||
Loans from directors | ||||||||||||||
Other creditors | ||||||||||||||
Accruals and deferred income | ||||||||||||||
9 | Creditors: | |||||||||||||
amounts falling due after more than one year | ||||||||||||||
2023 | 2022 | |||||||||||||
£ | £ | |||||||||||||
Bank loans and overdrafts | ||||||||||||||
10 | Reserves | |||||||||||||