Registered number:
For the Year Ended
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Back 2 Work Complete Training Limited
Company Information
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Back 2 Work Complete Training Limited
Contents
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Back 2 Work Complete Training Limited
Strategic Report
For the Year Ended 31 July 2023
The directors present the strategic report for the year ended 31 July 2023.
The principal activities of the company during the year continues to be the delivery of training programmes predominately for adult learners, with some training being provided to 16-18 year olds through apprenticeships.
The educational provisions include:
∙Pre-Employment training
∙Upskill programmes to those in work
∙Apprenticeships
∙Bootcamps
Back 2 Work Complete Training continues to focus on the quality of teaching and support, enabling individuals to gain skills and confidence they need to apply for jobs, secure employment, or upskill within their current role.
Back 2 Work Complete Training Limited is directly funded by the Education and Skills Funding Agency (ESFA), the Adult Education Budget (AEB) from devolved combined authorities and a small amount of sub-contracted AEB funding from Further Education colleges and other independent training providers.
The majority of revenue is through funding from government via ESFA or AEB devolved budgets. Changes to government funding priorities therefore remains the primary risk faced by the Company. We are aware of the upcoming elections, and mindful of potential changes. As far as possible we have taken advice on likely policy changes to help us plan through different scenarios. We believe we are well placed to react quickly to any changes due to our experienced management team, structures, and stakeholder relationships.
Back to Work Complete Training has had significant success in recent retenders, and in new funding opportunities during the year, which has put us in a strong position as we enter the next financial year. The principal financial instruments used by the company are cash, trade debtors and trade creditors. The management of these instruments provides finance for the company’s operations. The main risks arising from the group’s financial instruments are price risk, credit risk, liquidity risk and interest rate risk. The directors review and agree policies for managing these risks outlined below: Price risk The company closely monitors changes to price across its operation and reacts appropriately and on a timely basis where appropriate.
Credit risk
The company’s principal financial assets are cash and debtors. The directors review the debtor position regularly and ensure compliance with funding rules to mitigate risk. Given the nature of our customers and their credit worthiness, the risk of bad debt is considered to be low. Liquidity risk The company manages cash closely with regular review of actual and forecast cashflows monthly, supplemented by weekly cash reporting, ensuring liquidity available to meet needs.
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Back 2 Work Complete Training Limited
Strategic Report (continued)
For the Year Ended 31 July 2023
The business uses a number of financial key performance indicators to monitor business performance:
This report was approved by the board and signed on its behalf.
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Back 2 Work Complete Training Limited
Directors' Report
For the Year Ended 31 July 2023
The directors present their report and the financial statements for the year ended 31 July 2023.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,761,115 (2022 - £1,410,556).
No dividends have been recommended for payment in the financial year.
The directors who served during the year were:
The company maintains a robust financial position, and with the support of Palatine Private Equity LLP, will continue to deliver government funded education and training programmes to both unemployed and in-work learners.
The directors have chosen to set out the disclosure relating to financial risk objectives & policies and information on exposure to price risk, credit risk, liquidity risk and cash flow risk in the strategic report.
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Back 2 Work Complete Training Limited
Directors' Report (continued)
For the Year Ended 31 July 2023
There have been no significant events affecting the company since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Back 2 Work Complete Training Limited
Independent Auditors' Report to the Members of Back 2 Work Complete Training Limited
We have audited the financial statements of Back 2 Work Complete Training Limited (the 'company') for the year ended 31 July 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Back 2 Work Complete Training Limited
Independent Auditors' Report to the Members of Back 2 Work Complete Training Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Back 2 Work Complete Training Limited
Independent Auditors' Report to the Members of Back 2 Work Complete Training Limited (continued)
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption, compliance with Education and Skills Funding Agency "ESFA" and Adult Education Budget "AEB" funding regulations.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations of fraud.
∙Evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments. We used data analytics to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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Back 2 Work Complete Training Limited
Independent Auditors' Report to the Members of Back 2 Work Complete Training Limited (continued)
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Lancashire Gate
21 Tiviot Dale
Cheshire
SK1 1TD
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Back 2 Work Complete Training Limited
Statement of Comprehensive Income
For the Year Ended 31 July 2023
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Back 2 Work Complete Training Limited
Registered number: 07559200
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 22 form part of these financial statements.
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Back 2 Work Complete Training Limited
Statement of Changes in Equity
For the Year Ended 31 July 2023
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
Back 2 Work Complete Training Limited is a private company limited by shares and incorporated in England and Wales. The address of the registered office is Building 4, Universal Square, Devonshire Street North, Manchester, M12 6JH. The company's registered number is 07559200.
The nature of the company's operation and its principal activity is to deliver government-funded education and training programmes for learners both unemployed and in work, to improve skills and education.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Back 2 Work Group Limited as at 31 July 2023 and these financial statements may be obtained from the Registrar of Companies..
Rendering of services Revenue from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Revenue is only recognised to the extent of recoverable expenses when the outcome of the contract cannot be estimated reliably.
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
2.Accounting policies (continued)
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
2.Accounting policies (continued)
Revenue recognition and work in progress The management of the Company exercises significant judgement in making an assessment of the stage of completion of contracts at the year-end and the appropriate amount of revenue and attributable profit to recognise. The Company has recognised amounts recoverable on contract with a carrying value of £2,817,927 (2022: £2,274,951) and deferred income with a carrying value of £258,191 (2022: £522,346). There are no other significant estimates or judgements.
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
There were no factors that may affect future tax charges.
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
Profit and loss account
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company during the year and amounted to £137,701 (2022: £96,502). Contributions totalling £48,066 (2022: £46,420) were payable to the fund at the balance sheet date and are included in creditors.
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Back 2 Work Complete Training Limited
Notes to the Financial Statements
For the Year Ended 31 July 2023
The immediate parent undertaking is Back 2 Work Holdings Limited, a company registered in England and Wales, registered number 12875592.
The ultimate parent undertaking in Back 2 Work Group Limited, a company registered in England and Wales, registered number 12872639. Back 2 Work Group Limited is the parent company for the largest group for which group accounts are prepared. The consolidated financial statements of Back 2 Work Group Limited are available to the public and may be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff, C14 3UZ.
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