Registered number:
FOR THE YEAR ENDED 31 JULY 2023
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BABINGTON BUSINESS COLLEGE LIMITED
COMPANY INFORMATION
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BABINGTON BUSINESS COLLEGE LIMITED
CONTENTS
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BABINGTON BUSINESS COLLEGE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
The Directors present the Strategic Report of Babington Business College Limited (the “Company”) for the year-ended 31 July 2023.
Principal activities of the business Babington seeks to develop better futures for organisations, individuals and the communities in which we operate. We seek to achieve this by supporting organisations and individuals unlock potential and perform at their very best. Babington Business College Limited is a national training provider, delivering apprenticeships and commercial training across the UK funded by the Government through the Education and Skills Funding Agency (“ESFA”), Skills Development Scotland (“SDS”) and via a subcontracting agreement, the Department for the Economy Northern Ireland. Although we’re one of the largest and most established apprenticeship providers in the UK, we’re also an organisation of learning experts. Our national delivery and learner support teams have a diverse range of both education and industry backgrounds, allowing them to draw upon technical expertise and practical experience to provide optimal training solutions and learner engagement. All Babington’s accredited programmes take a learner-centred and people-focused approach, ensuring active participation in new learning and sought-after skills are well developed. Through hands on activities, collaborative projects and high quality facilitated learning Babington equip learners with the necessary skills and competencies to excel within their respective roles.
During the year ended 31 July 2023, the financial performance of the Company was challenged across each of the Group financial key performance indicators:
• Turnover reduced by 11.9% (£3.1m) from £26.3m in FY22 to £23.2m in FY23; • Gross margin reduced by 12.5ppts from 43.4% in FY22 to 30.9% in FY23; and • Adjusted EBITDA reduced by £5.0m from £1.9m in FY22 to £(3.0)m in FY23. In December 2022, the Company its immediate parent company, Babington Business Limited, and subsidiaries of Babington Business Limited were acquired by an affiliate of Unigestion SA, introducing a new ultimate parent undertaking for the Company of Marshal Topco Limited. As a result of the poor financial performance of the Group, the business commenced an extensive programme of activities to restructure in June 2023, through a strategic realignment to increase focus, innovation and operational best practice to a streamline set of core programmes. Whilst the end-to-end programme of restructuring activities is not expected to be completed until early 2025, initial steps taken in June and July 2023 saw the organisation simplify, strengthen and refocus its operations to deliver market-leading learning experiences to support critical skills development aligned to market demand. As a result, the organisational restructure saw the Company focus on apprenticeships, professional qualifications and commercial programmes across five professional service specialisms: Accountancy, HR and L&D; Leadership & Management, Data and IT, and Business Administration and Customer Services. Consequently, Babington exited its existing Adult Education Budget (“AEB”) portfolio, including its digital skills bootcamps and sector work academy programme (“SWAP”) courses, as well as its England apprenticeships training offering within Property Services, Financial Services and Insurance; and Retail Apprenticeship Standards. Despite the move to exit certain Apprenticeship Standards, Babington has remained committed to safeguard and ensure continuity for all current and committed learners across affected programmes.
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BABINGTON BUSINESS COLLEGE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
In September 2023, aligned to Babington’s commitment to safeguard and ensure continuity for all current and committed learners across affected programmes, Babington entered into an agreement with Davies Group that saw all existing customers and learners in affected Financial Services and Insurance Apprenticeship Standards offered the option to transfer and complete their learning with Davies.
In January 2024, the Office for Standards in Education (“Ofsted”) awarded Babington ‘Good’ across all five core inspection categories: Quality of education, Behaviour and Attitudes, Personal Development, Leadership and Management and Apprenticeships. Subsequently, Babington has received Satisfactory gradings from both an ESFA Funding Assurance Review and SDS Funding Compliance Review conducted in 2024.
Despite the financial challenges, the business continues to invest for the long-term and the Directors do not envisage any material change to the Group’s principal activities. As such, the financial statements have been prepared on a going concern basis as set out in the Directors’ Report.
With almost fifty years’ experience delivering high-impact learning programmes, the business is leveraging its deep foundations, passionate colleagues and quality programmes to successfully execute the planned restructuring activities and return the business to positive and sustainable profitability and growth.
The performance of the business is monitored at various levels through a range of operational, commercial and financial metrics. Detailed management financial statements are produced on a monthly basis; analysed by individuals, teams and departments with accountability for the performance.
The key financial performance measures considered by the Board and management are turnover, gross profit, gross margin, EBITDA and Free Cash Flow (“FCF”). To contextualise the financial performance of the business, other non-financial key performance indicators are monitored by the business, including (but not limited to) learner enrolment volumes by programme, timeliness of learner progression, learner retention and achievement rates, and both learner and customer satisfaction scores
It is a requirement that the Directors of the Company act in accordance with Section 172 (1) (a) to (f) of the Companies Act 2006 to promote the success of the Company for the benefit of its members as whole.
We recognise the critically important role that our employees play in the success of the business and ensure that the health, safety and wellbeing of Babington employees is a top priority of the Board. We also ensure that dealings with learners, customers, suppliers and other stakeholders are fair and transparent, as we recognise that they are a critical factor in the success of the business. We behave responsibly and ensure that management operate the business in a responsible manner too, operating within the high standards of business conduct and good governance. The Directors understand that they must act in a way that is most likely to promote the success of the Company for the benefit of its members.
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BABINGTON BUSINESS COLLEGE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
Babington is principally funded by the Government through the Education and Skills Funding Agency (“ESFA”), Skills Development Scotland (“SDS”) and via a subcontracting agreement, the Department for the Economy Northern Ireland.
As a result, the principal risks and uncertainties affecting the Group are considered to be related to changes to its contractual relationships with these Government Bodies, together with the strength of the UK’s economy and economic outlook and the willingness of employers to enrol and support employees on apprenticeship programmes. As such, the Directors manage this risk through regular and open dialogue with these funding bodies and through continuously monitoring and adapting to changes in Government policies, priorities and funding availability, and associated changes to the political and regulatory environment. Due to the complexity of the funding rules within which the Company operates, Babington continues to invest in its funding and compliance team who ensure funding submissions are accurate and complete, whilst also providing guidance and training to colleagues across the business to ensure adherence to funding rules and application of best practice in day-to-day decision making. Quality is central to both operational and strategic decision-making, formalised in 2023 by the creation of Quality & Compliance Governance Board, with non-executive chair and representatives to monitor and advise on all aspects of quality and compliance within the business.
This report was approved by the board on 29 July 2024 and signed on its behalf.
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BABINGTON BUSINESS COLLEGE 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 loss for the year, after taxation, amounted to £3,816,292 (2022 - profit £743,928).
The directors do not recommend the payment of a dividend (2022: £Nil).
The directors who served during the year were:
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 judgments and accounting estimates that are reasonable and prudent; and • 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.
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BABINGTON BUSINESS COLLEGE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
Notwithstanding the Company’s operating loss for the year ended 31 July 2023 of £4.0m, the financial statements have been prepared on a going concern basis, which the Directors consider to be appropriate for the following reasons.
The Directors have prepared detailed profit and loss and cash flow forecasts for the period to 31 July 2025, which forecasts a return to both profitability and cash generation for the Group whilst the funding required to deliver the base case, together with contingency for substantial downside scenarios, has been committed by Unigestion SA. Whilst these loans are subject to interest, signed confirmation has been provided that no interest will be paid, nor any capital repayments made, on these loans prior to 12 August 2025. Following careful consideration of the assumptions and underlying drivers of the financial information, the Board is satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and to meet its current liabilities as they fall due. As such, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Details of future developments and post balance sheet events are outlined in the Strategic Report.
The principal financial instruments used by the Company comprise bank balances, trade creditors, trade debtors and loans to and from other companies in the Group. The management of these instruments provides finance for the Company’s operations.
As a result, main risks arising from the Company’s financial instruments are credit risk, interest rate risk and liquidity risk. Credit Risk Trade debtors are managed by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. As the principal trade debtors of the Company are the Education and Skills Funding Agency (“ESFA”) and Skills Development Scotland (“SDS”), the risk of significant bad debtors is deemed to be low; however the risk is further mitigated through close scrutiny of the accuracy and completeness of funding claim submissions to reduce potential clawback of funds in future periods. Liquidity Risk The Company forecasts cash flows on a weekly basis to monitor the likely cash requirements of the business over a 13-week forecast period. The forecast is used to ensure that there are sufficient funds available within the business to meet amounts as they fall due. Liquidity is managed through regular monitoring of short-term cash flows as well as medium and long-term scenario planning. Interest Rate Risk Interest rate risk is mitigated through loans held by the Company being agreed at a fixed interest rate.
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BABINGTON BUSINESS COLLEGE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
The Company's employment policies have been designed to meet the needs of the Company and follow best practice, whilst complying with all applicable and relevant legislation. These policies are applied consistently throughout the Company and provide a fair and transparent framework within which employees operate.
The Company is firmly committed to ensuring that the manner in which it employs staff is fair and equitable. Its equal opportunities policy is designed to ensure that no person or group of individuals will be treated less favourably because of their race, colour, ethnic origin, gender or sexual orientation, age, disability or marital status. . The Directors are committed to maintaining a policy of regular communication, consultation and discussion with Company employees on a wide range of issues that are likely to affect their interests, ensuring employees are provided with information on matters of concern to them as employees, including the commercial, operational and financial factors affecting the performance of the Company. In the event of employees becoming disabled whilst in the service of the Company, all reasonable efforts are made to ensure that they have the opportunity for continued employment with the Company; including transfer to alternative duties if required and by provision of such retraining as appropriate
The Directors have placed great importance on maintaining and nurturing relationships with key external stakeholders, including customers, partners, suppliers and others; and the impact of principal decisions taken by the Company during the financial year.
Under section 487(2) of the Companies Act 2006, PKF Smith Cooper Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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BABINGTON BUSINESS COLLEGE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BABINGTON BUSINESS COLLEGE LIMITED
We have audited the financial statements of Babington Business College 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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BABINGTON BUSINESS COLLEGE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BABINGTON BUSINESS COLLEGE 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.
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BABINGTON BUSINESS COLLEGE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BABINGTON BUSINESS COLLEGE LIMITED (CONTINUED)
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:
Based on our understanding of the Company and industry, we identify the key laws and regulations affecting the Company which include compliance with ESFA and OFSTED regulations. We identified that the principal risk of fraud or noncompliance with laws and regulations related to: • management bias in respect of accounting estimates and judgements made; • management override of control; • posting of unusual journals or transactions We focused on those area that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to: • Enquiry of management and those charged with governance/review of correspondence around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud; • Reviewing minutes of meetings of those charged with governance where available; • Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud/ and enquiries with third party advisors about potential claims; • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. In particular review of revenue recognition and the useful economic lives of assets /analytical procedures to identify any unexpected or unusual relationships that might indicate material misstatement due to fraud. It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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BABINGTON BUSINESS COLLEGE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BABINGTON BUSINESS COLLEGE LIMITED (CONTINUED)
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
Statutory Auditors
Prospect House
1 Prospect Place
Millennium Way
DE24 8HG
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BABINGTON BUSINESS COLLEGE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
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BABINGTON BUSINESS COLLEGE LIMITED
REGISTERED NUMBER: 02673518
BALANCE SHEET
AS AT 31 JULY 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 14 to 27 form part of these financial statements.
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BABINGTON BUSINESS COLLEGE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
The Company is a company limited by shares and is incorporated in England and Wales and details of its registered office are set out in the company information page. The Company's activities are disclosed in the Directors' report.
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 judgment in applying the Company's accounting policies (see note 3).
The financial statements have been prepared in £ sterling and have been rounded to the nearest £.
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 Marshal Topco Limited as at 31 July 2023 and these financial statements may be obtained from Companies House..
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
The directors have prepared forecasts for the Group and Company based on conservative assumptions to the overall performance for the Company for the period to 31 July 2025, including new starts and success rates, as well as on-going cost levels. These forecasts include detailed cash flow forecasts through to 31 July 2025 showing that the Group and Company will have sufficient funds over this period to satisfy all liabilities as they fall due for payment. The Group and Company's cashflow needs will be met from funds committed by Unigestion Direct II SCS-SICAV-RAIF (Compartment -Europe) ("Unigestion") of an additional facility to cover the anticipated cashflow requirements identified by the forecasting exercise, including a contingency for any deviation for actual performance variance to budget. These loans are subject to interest, but signed confirmation has been provided that no interest will be paid nor any capital repayments made on these loans prior to 12 August 2025.
As noted above, the Group and Company have received a letter of continued commitment from Unigestion confirming that they will continue to make these funds available to enable the Group and Company to meet its liabilities as they fall due for a period of twelve months from the date of signing of these financial statements. Therefore, the directors consider that they have a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for the foreseeable future and to meet its current liabilities as they fall due. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.Financial liabilities are classified according to the substance of the contractual arrangements entered into. Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Revenue recognition The Company recognises revenue when services have been provided and contract conditions have been met in relation to these services. Therefore, the Company make a provision against revenue for instances where funding has to be returned to the ESFA when certain conditions are not met. In prior year, the Company also recognised amounts recoverable in relation to contracts, which are on going at the year end, taking into account the anticipated success rate.There has been a change in accounting policy in respect of this treatment and this asset is no longer recognised. For further details see note 23 to the financial statements. Useful economic lives of fixed assets The annual charges for depreciation and amortisation of tangible and intangible fixed assets are sensitive to changes in the estimated economic useful lives of the asset. These are re-assessed annually and amended when necessary to reflect any changes arising from economic utilisation, future investments and their physical condition. The directors performed an impairment review and this resulted in a prior year adjustment of £505,978. See note 23 for further details.
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
9.Taxation (continued)
There are £6,405,562 of taxable losses which have not been recognised as a deferred tax asset.
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
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BABINGTON BUSINESS COLLEGE 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 to the fund and amounted to £367,616 (2022 - £334,797). Contributions totalling £71,384 (2022 - £74,762) were payable to the fund at the balance sheet date and are included in creditors.
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BABINGTON BUSINESS COLLEGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
At 31 July 2023, the immediate parent undertaking is Babington Business Limited, a company incorporated in England and Wales. The parent undertaking of the largest and smallest group for which consolidated accounts are prepared is Marshal Topco Limited, a company incorporated in England & Wales, which are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
Marshal Topco Limited is considered to be under the control of funds managed by an affiliate of Unigestion SA. The directors consider that there is no one ultimate controlling party by virtue of there being no majority shareholder within the ultimate parent entity.
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