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Registered number: 07559200









Back 2 Work Complete Training Limited









Annual Report and Financial Statements

For the Year Ended 31 July 2023

 
Back 2 Work Complete Training Limited
 
 
Company Information


Directors
L Muscat-Terribile 
T Lewis 




Registered number
07559200



Registered office
Building 4
Universal Square

Devonshire Street North

Manchester

M12 6JH




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

Lancashire Gate

21 Tiviot Dale

Stockport

Cheshire

SK1 1TD





 
Back 2 Work Complete Training Limited
 

Contents



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 22


 
Back 2 Work Complete Training Limited
 
 
Strategic Report
For the Year Ended 31 July 2023

Introduction
 
The directors present the strategic report for the year ended 31 July 2023.

Business review
 
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.

Principal risks and uncertainties
 
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.

Page 1

 
Back 2 Work Complete Training Limited
 

Strategic Report (continued)
For the Year Ended 31 July 2023

Financial key performance indicators
 
The business uses a number of financial key performance indicators to monitor business performance:


Year ended
Year ended

31 July 2023
31 July 2022
Turnover
£16,735,846
£13,827,415
Gross Margin
31%
31%
Adjusted EBITDA
£2,708,037
£2,613,162
Adjusted EBITDA %
16%
19%
Cash in bank & in hand
£1,382,469
£1,817,816



This report was approved by the board and signed on its behalf.



L Muscat-Terribile
Director
Date: 3 March 2024

Page 2

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 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 2006They 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.

Results and dividends

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.

Directors

The directors who served during the year were:

L Muscat-Terribile 
T Lewis 

Future developments

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.

Matters covered in the Strategic Report

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.

Page 3

 
Back 2 Work Complete Training Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 July 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsHurst Accountants Limitedwill 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.
 



L Muscat-Terribile
Director
Date: 3 March 2024

Page 4

 
Back 2 Work Complete Training Limited
 
 
 
Independent Auditors' Report to the Members of Back 2 Work Complete Training Limited
 

Opinion


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 policiesThe 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).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 July 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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.


Conclusions relating to going concern


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.


Other information


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.


Page 5

 
Back 2 Work Complete Training Limited
 
 
 
Independent Auditors' Report to the Members of Back 2 Work Complete Training Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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.


Matters on which we are required to report by exception
 

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.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

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:
Page 6

 
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.

Page 7

 
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.


Use of our 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 2006Our 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.





Helen Besant-Roberts (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
Lancashire Gate
21 Tiviot Dale
Stockport
Cheshire
SK1 1TD

4 March 2024
Page 8

 
Back 2 Work Complete Training Limited
 
 
Statement of Comprehensive Income
For the Year Ended 31 July 2023

2023
2022
Note
£
£

  

Turnover
 4 
16,735,846
13,827,415

Cost of sales
  
(11,542,093)
(9,465,430)

Gross profit
  
5,193,753
4,361,985

Administrative expenses
  
(3,017,431)
(2,652,555)

Other operating income
 5 
-
1,300

Operating profit
 6 
2,176,322
1,710,730

Tax on profit
 10 
(415,207)
(300,174)

Profit for the financial year
  
1,761,115
1,410,556

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 22 form part of these financial statements.

Page 9

 
Back 2 Work Complete Training Limited
Registered number: 07559200

Balance Sheet
As at 31 July 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
200,433
215,387

Current assets
  

Debtors: amounts falling due within one year
 12 
6,958,446
5,227,398

Cash at bank and in hand
 13 
1,382,469
1,816,465

  
8,340,915
7,043,863

Creditors: amounts falling due within one year
 14 
(2,579,155)
(3,054,382)

Net current assets
  
 
 
5,761,760
 
 
3,989,481

Total assets less current liabilities
  
5,962,193
4,204,868

Provisions for liabilities
  

Deferred tax
 15 
(38,452)
(42,242)

Net assets
  
5,923,741
4,162,626


Capital and reserves
  

Called up share capital 
 16 
100
100

Profit and loss account
 17 
5,923,641
4,162,526

  
5,923,741
4,162,626


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




L Muscat-Terribile
Director

Date: 3 March 2024

The notes on pages 12 to 22 form part of these financial statements.

Page 10

 
Back 2 Work Complete Training Limited
 

Statement of Changes in Equity
For the Year Ended 31 July 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 August 2021
100
2,751,970
2,752,070


Comprehensive income for the year

Profit for the year
-
1,410,556
1,410,556



At 1 August 2022
100
4,162,526
4,162,626


Comprehensive income for the year

Profit for the year
-
1,761,115
1,761,115


At 31 July 2023
100
5,923,641
5,923,741


The notes on pages 12 to 22 form part of these financial statements.

Page 11

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

1.


General information

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

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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..

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 
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.

 
2.4

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 12

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

2.Accounting policies (continued)

 
2.5

Government grants

Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.6

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 13

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

2.Accounting policies (continued)

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Motor vehicles
-
20%
Fixtures and fittings
-
25%
Office equipment
-
33%
Computer equipment
-
33%

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.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Amounts recoverable on contracts is valued 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.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

2.Accounting policies (continued)

 
2.12

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates that affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions. The judgements, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the Company as at 31 July 2023 are discussed below:
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.

Page 15

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Provision of pre and post employment training
16,735,846
13,827,415


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
-
1,300


Government grants receivable relate to the Coronavirus Job Retention Scheme in the prior year. 


6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible assets
90,274
112,985

Operating leases - rent
260,408
276,975


7.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements

12,320
11,050

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 16

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
6,907,932
5,937,094

Social security costs
707,335
594,978

Cost of defined contribution scheme
137,701
96,502

7,752,968
6,628,574


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management
7
6



Delivery
179
164



Support
34
30

220
200


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
152,928
174,301

Company contributions to defined contribution pension schemes
1,440
1,321

154,368
175,622


During the year retirement benefits were accruing to 2 directors (2022 - 3) in respect of defined contribution pension schemes.

Page 17

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
418,997
272,756

Deferred tax


Origination and reversal of timing differences
(3,790)
27,418


Taxation on profit on ordinary activities
415,207
300,174

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,176,322
1,710,730


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
544,081
325,039

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
2,397

Super deduction
(3,533)
(12,331)

Change in tax rates
(79,718)
10,138

Adjustments to tax charge in respect of prior periods
(204)
-

Group relief
(45,419)
(25,069)

Total tax charge for the year
415,207
300,174


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

11.


Tangible fixed assets





Motor vehicles
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 August 2022
88,788
82,382
90,384
400,586
662,140


Additions
-
34,841
1,372
39,107
75,320



At 31 July 2023

88,788
117,223
91,756
439,693
737,460



Depreciation


At 1 August 2022
4,439
55,569
70,082
316,663
446,753


Charge for the year
17,758
13,172
12,487
46,857
90,274



At 31 July 2023

22,197
68,741
82,569
363,520
537,027



Net book value



At 31 July 2023
66,591
48,482
9,187
76,173
200,433



At 31 July 2022
84,349
26,813
20,302
83,923
215,387

Page 19

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

12.


Debtors

2023
2022
£
£


Trade debtors
196,994
129,603

Amounts owed by group undertakings
3,732,850
2,598,832

Other debtors
636
7,880

Prepayments and accrued income
210,039
216,132

Amounts recoverable on long term contracts
2,817,927
2,274,951

6,958,446
5,227,398



13.


Cash

2023
2022
£
£

Cash at bank and in hand
1,382,469
1,816,465



14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
597,456
656,428

Amounts owed to group undertakings
53,254
-

Corporation tax
214,127
208,438

Other taxation and social security
426,172
483,015

Other creditors
483,828
496,791

Accruals and deferred income
804,318
1,209,710

2,579,155
3,054,382


Amounts owed to group undertakings are interest free, unsecured and repayable on demand.

Page 20

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

15.


Deferred taxation




2023
2022


£

£



At beginning of year
(42,242)
(14,824)


Credited / (charged) to profit or loss
3,790
(27,418)



At end of year
(38,452)
(42,242)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(50,108)
(53,847)

Other timing differences
11,656
11,605

(38,452)
(42,242)


16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100



17.


Reserves

Profit and loss account

The profit and loss reserve includes all current and prior retained profit and losses.


18.


Pension commitments

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.

Page 21

 
Back 2 Work Complete Training Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2023

19.


Commitments under operating leases

At 31 July 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£

Land and buildings


Not later than 1 year
178,447
222,070

Later than 1 year and not later than 5 years
39,000
166,447

217,447
388,517

2023
2022

£
£

Other


Not later than 1 year
2,830
2,866

Later than 1 year and not later than 5 years
4,404
7,234

7,234
10,100


20.


Related party transactions

The directors have chosen not to disclose transactions entered into with other companies wholly owned within the group as permitted under FRS 102 paragraph 33.1A.
Key Management Personnel
Key management is considered to be the finance director and sales/operations director, neither of whom are statutory directors. Total remuneration in the year relating to these directors was £224,878 (2022: £148,439).


21.


Controlling party

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.

 
Page 22