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Company registration number: 09606442

Skill Mill Partnership Limited

Filleted Annual Report and Financial Statements

for the Year Ended 31 December 2022

 

Skill Mill Partnership Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 5

 

Skill Mill Partnership Limited

(Registration number: 09606442)
Balance Sheet as at 31 December 2022

Note

2022
 £

2021
 £

Current assets

 

Debtors

5

430,347

328,222

Cash at bank and in hand

 

350,344

403,654

 

780,691

731,876

Creditors: Amounts falling due within one year

6

(81,661)

(123,138)

Total assets less current liabilities

 

699,030

608,738

Creditors: Amounts falling due after more than one year

6

(1,169,125)

(1,096,325)

Net liabilities

 

(470,095)

(487,587)

Capital and reserves

 

Called up share capital

90,000

90,000

Profit and loss account

(560,095)

(577,587)

Total equity

 

(470,095)

(487,587)

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

Approved and authorised by the Board on 27 September 2023 and signed on its behalf by:
 


M W Pattinson
Director

   
 

Skill Mill Partnership Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
C/O Social Finance Limited
87 Vauxhall Walk
London
SE11 5HJ

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Going concern

The company was originally established to operate a social impact programme and obtained equity and loan finance from its shareholders to do so. The social impact programme will end as was originally planned on 30 September 2024 and after this date the company will be settling its affairs.

As the remaining period of the programme is 12 months, the Directors have concluded that the going concern basis is not appropriate for these financial statements. Accordingly these financial statements are prepared on a basis other than a going concern. Based on cash flow forecasts prepared, the final year of operation of the company is expected to be profitable. The directors have determined that there are no specific adjustments required to either the profit and loss account of the balance sheet as a result of preparing the accounts on a basis other than going concern. The financial statements to 30 September 2024 will include the transactions from operation of the social impact programme in that final period.

The shareholders have confirmed that they will provide support as required to settle any final outstanding liabilities as the company settles its affairs.

Turnover recognition

Turnover represents amounts receivable in relation to participants in the social programme operated by the company achieving agreed outcomes. Turnover is stated net of VAT. Turnover is recognised when the agreed outcomes are achieved and the turnover becomes receivable.

 

Skill Mill Partnership Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022

Grant income

Grants are recognised under the accruals model resulting in income being recognised as the related costs are incurred for which the grant is compensating. The income from the grant is recognised as other income in the profit and loss and timing differences presented as other creditors within the balance sheet.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Accrued income is accounted for in line with the turnover recognition accounting policy.

Creditors

Other creditors relate to deferred grant income and accruals. Deferred grant income is recognised in line with the grant income accounting policy.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 4 (2021 - 4).

Directors fees of £3,600 have been paid during the year. None of the directors have a service contract with the company.

 

Skill Mill Partnership Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022

4

Grant income

During 2020, grant income of £100,000 was received to support the company with the ongoing challenges of the COVID-19 pandemic. At the year end £40,000 (2021 - £65,534) was presented in other creditors in relation to the grant with £25,534 recognised in the profit and loss account (2021 - £10,000).


5

Debtors

Current

2022
£

2021
£

Trade debtors

214,900

187,920

Prepayments

158,307

79,775

Other debtors

57,140

60,527

 

430,347

328,222

6

Creditors

2022
 £

2021
 £

Due within one year

Trade creditors

5,243

-

Taxation

27,811

51,679

Other creditors

48,607

71,459

81,661

123,138

Due after one year

Loans and borrowings

1,169,125

1,096,325

Loans and borrowings include loans of £1,069,125 (2021 - £996,325) from shareholders, repayable no later than 31 October 2024, with interest payable at 8% and paid at the discretion of the company but no later than 31 October 2024. Under the terms of the loan agreement, agreement can be reached for a later repayment date of interest and capital between the parties.

In addition, loans and borrowings include a loan of £100,000 (2021 - £100,000), with interest payable monthly at 4.5% increasing to 6.5% from September 2023. The loan is repayable no later than August 2025.

 

Skill Mill Partnership Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022

7

Audit Report

The Independent Auditor's Report was unqualified. We draw attention to note 2 to the financial statements which explains that the company will cease its trade when the current social impact programme ceases on 30 September 2024. After this date, the company will settle its affairs only. As a result, the directors have concluded that the going concern basis of accounting is not appropriate and have therefore prepared the financial statements on a basis other than the going concern basis as described in note 2.

Our opinion is not modified in respect of this matter.
The name of the Senior Statutory Auditor who signed the audit report on 20 October 2023 was Alison Kerr FCA, who signed for and on behalf of Albert Goodman LLP.