REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
MAINSTREAM TRAINING LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
MAINSTREAM TRAINING LIMITED |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 14 |
Notes to the Financial Statements | 15 |
MAINSTREAM TRAINING LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
Thames House |
Roman Square |
Sittingbourne |
Kent |
ME10 4BJ |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The year ending 31st March 2024 saw us maintain our position as one of the largest HGV Driver Training businesses in the UK, principally delivering to HM Armed Forces and to the Department of Education, through the HGV Skills Bootcamp initiative aimed at tackling the national HGV driver shortage. These two contracts which both run until at-least 31st March 2026, accounted for over £9.8 million of a total turnover of just under £11 million, the balance attributable to Department of Education (DfE) Adult Education Training, HM Prison Service and commercial training to the logistics sector. |
During the year, in June 2023 we underwent a full five-day Ofsted inspection. Achieving an overall grade of GOOD, with OUTSTANDING for Adult Learning Programmes, Quality of Education and Behaviour and Attitudes. This result was not only a thoroughly deserved accolade to the hard work and quality of our delivery team, but it was also vital to enable us to continue to deliver funded training for the Department for Education. The Board have subsequently built upon this excellent result by appointing a new director to lead our approach to Safeguarding and Quality, the objective being to consolidate and further improve the quality of our delivery to our learners |
On an operational front we achieved more than 75% positive job outcomes for the graduates of our HGV Skills Bootcamp programme, and we met all KPIs applicable to our HM Armed Forces contract. |
During December 2023, we relocated from Mainstream House in Sittingbourne, a large and expensive industrial warehouse facility, to more suitable and less expensive office premises in Maidstone, reducing our overheads by around £300k. The relocate better suits our current activity profile and has been well received by both customers and our team. In addition to the office premises in Maidstone, subsequent to the year-end we entered into a new 6 year lease to secure a dedicated HGV training and parking facility on the Isle of Sheppey. |
Our training business has consistently achieved an operating profit of more than £1 million for the last three financial years, and we forecast an operating profit for the current year ending 31st March 2025 of a similar quantum. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors consider that the company's principal risks are; changes to Government policy towards funded training, the loss of our principal contracts which are subject to periodic competitive procurement, reduced recruitment numbers in the British Army, vehicle fuel costs impacting on the cost of delivering HGV driver training and falling numbers of student eligible for funded training. |
The directors manage these risks by constantly evaluating the sectors in which the group operates, by being alert to sector developments, and by implementing decisive and rapid changes when required. We operate a strategy of actively pursuing diversification into new operational sectors and expansion of our income base to reduce reliance upon current key contracts, we achieve this by monitoring procurement announcements and tendering for suitable opportunities. The Board considers Mainstream's key strength to be the quality of it delivery of adult education, principally HGV and logistics training, as such we will continue to adopt of policy of only pursuing opportunities that fall firmly into our area of expertise. |
The directors recognise that the company's employees are key to delivering a high-quality service to its customers and the company ensures that all staff are given the opportunity to develop their individual skills to operate to their full potential. |
FUTURE DEVELOPMENTS |
The directors constantly look to grow turnover by tendering for new contracts and retaining and increasing delivery to existing customers. The company searches for new procured public contract opportunities and are actively engaged in the tendering process for several current opportunities. |
We are interested in expansion of our HGV training delivery to further regional sites throughout the UK, which could be through acquisition or start-up. |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
KEY PERFORMANCE INDICATORS |
The key performance indicators are turnover and gross margin, these measure the success of the company in its efforts to win new contracts and its success in retaining current contracts. |
The company prides itself on its high level of retention of existing contracts and believes this is due to the quality of the service they provide. |
Additionally, the management team monitor HGV fleet utilisation, instructor pass rates, instructor utilisation, vehicle fuel use, vehicle maintenance costs and sales, learner and contract pipelines on a daily basis. |
EMPLOYEE INVOLVEMENT |
It is the policy of the company to encourage all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the company and adequate opportunities for internal promotion are created. |
The company supports the principle of equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on the grounds of race, age, nationality, religion, ethnic or national origin, sexual orientation, gender or gender reassignment, marital status, or disability. It is also the policy of the company, where possible, to give sympathetic consideration to disabled persons in their application for employment with the company and to protect the interests of existing members of the staff who are disabled. |
ON BEHALF OF THE BOARD: |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a training provider. The company operates in the logistics sector and specialises in driver training (LGV, minibus, coach, car and driver CPC), warehouse and construction plant training, military driver licence acquisition, apprenticeships and the provision of logistics focused adult skills funded training. |
DIVIDENDS |
An interim dividend of £113,750 per share was paid on 31 March 2024. The directors recommend that no final dividend be paid. The total distribution of dividends for the year ended 31 March 2024 will be £910,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
AUDITORS |
The auditors, UHY Hacker Young, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAINSTREAM TRAINING LIMITED |
Opinion |
We have audited the financial statements of Mainstream Training Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2024 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 UK, including the FRC'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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAINSTREAM TRAINING LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
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. |
Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAINSTREAM TRAINING LIMITED |
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: |
How the audit was considered capable of detecting irregularities including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- we identified the laws and regulations applicable to the Company through discussions with management, and from our commercial knowledge and experience of the industry and sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the operations of the Company; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and |
- identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the Company's accounts to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading minutes of meetings of those charged with governance; and |
- enquiring of management as to actual and potential litigation and claims. |
There are inherent limitations in our audit procedures described above. As a result 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAINSTREAM TRAINING LIMITED |
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 Auditor's report. |
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 Report of the Auditors. |
Other Matters |
The financial statements for the year ended 31 March 2023 were audited by the predecessor auditor, Xeinadin Audit Limited. The audit report was issued on 22 December 2023 and expressed an unqualified audit opinion of the financial statements. |
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 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 a Report of the Auditors 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 |
Thames House |
Roman Square |
Sittingbourne |
Kent |
ME10 4BJ |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT |
Lease termination payment | 4 |
1,794,302 | 1,170,617 |
Income from shares in group undertakings |
Interest receivable and similar income |
5,564 | 1,809 |
1,799,866 | 1,172,426 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION | 6 |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
BALANCE SHEET - continued |
31 MARCH 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
Mainstream Training Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Turnover |
Turnover represents the provision of services from the principal activity, excluding value added tax. |
Revenue for provision for services is recognised when the services have been rendered. |
Tangible fixed assets |
All the assets with a useful life over one year and an acquisition cost of £500 or more are capitalised, and written off over their useful life. As our trucks are used on training contracts, which are largely fixed terms, they are often written down to a realistic residual value over the term of the contract. The depreciation methods vary between 25% reducing balance method, and straight line method over various months. There is no generic write down policy, the directors (MGS and MPS) consider each acquisition at time of purchase and set life and residual value at the outset. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Net realisable value is the estimated selling price in the ordinary course of business less any impairment. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. The amount recognised as an expense for the defined contribution scheme was £61,447 (2023: £68,889). |
Dividends |
Interim dividends are recognised on payment. |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Company has elected to apply the provisions of Section 11 "Basic Financial Instruments" of FRS 102 to all of its 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. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position 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 |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 4,234,595 | 4,511,962 |
Social security costs | 354,103 | 417,348 |
Other pension costs | 61,447 | 68,889 |
4,650,145 | 4,998,199 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Operational | 106 | 124 |
Directors | 4 | 4 |
110 | 128 |
2024 | 2023 |
£ | £ |
Director's wages and salaries | 276,364 | 216,277 |
Directors' pension costs | 4,751 | 3,466 |
Benefits in kind | 3,254 | 3,003 |
Directors' remuneration | 284,369 | 222,746 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Wages and salaries | 107,004 | 114,633 |
Pension costs | 2,034 | 2,034 |
109,038 | 116,667 |
4. | EXCEPTIONAL ITEMS |
The exception item for the year ended 31st March 2024 was a lease termination payment of £110,000 (2023: £nil). |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Sales finance interest |
Interest on overdue tax |
Hire purchase interest |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
6. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
Deferred tax | (108,435 | ) | (15,732 | ) |
Total tax charge | 435,901 | 204,311 |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
9. | TANGIBLE FIXED ASSETS |
Computer |
Plant and | Motor | and office |
machinery | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
10. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 April 2023 |
Disposals | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
11. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
Stocks consist of fuel held in vehicles £25,103 (2023: £39,463), stock of uniforms £2,214 (2023: £5,289), stock of vehicle parts £26,905 (2023: £Nil) and marketing material £8,610 (2023: £Nil). |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments |
Other debtors consists of accrued income of £20,701 (2023: £189,816). |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 180,345 | 396,988 |
Other creditors |
Deferred income |
Accrued expenses |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Other creditors is made of employee payroll deductions £Nil (2023: £10), auto-enrolment pensions £12,105 (2023: £14,814), an outstanding telephone expense invoice £4,851 (2023: £Nil) and a receipt due back to a customer of £922 (2023:£Nil). |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 15) |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable |
operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
16. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred tax |
£ |
Balance at 1 April 2023 |
Provided during year | ( |
) |
Balance at 31 March 2024 |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 8 | 8 |
18. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2024 |
19. | ULTIMATE PARENT COMPANY |
The immediate parent company is Mainstream Group Limited (registered address 4 Kings Row, Armstrong Road, Maidstone, Kent, England, ME15 6AQ, which does not prepare group accounts) which is in turn a 100% subsidiary of the ultimate parent undertaking Ascentrix Limited (registered address 4 Kings Row, Armstrong Road, Maidstone, Kent, England, ME15 6AQ, which does prepare group accounts). |
MAINSTREAM TRAINING LIMITED (REGISTERED NUMBER: 03348003) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
20. | RELATED PARTY DISCLOSURES |
Mackenzies Accountants Limited a company jointly controlled by Mark P Smith and Venetia A Smith, directors, up until 31st May 2025, provided accountancy services to the company during the year. The amount paid to Mackenzies for compliance,taxation work, bookkeeping and administrative support was £76,827 (2023: £115,507), this is after offsetting income charged from Mainstream Training Limited of £300 for office space rental. At the balance sheet date, Mainstream Training Limited owed Mackenzies Accountants Limited £7,664 (2023: £nil). |
Logikal Outsourcing Limited a company jointly controlled by Mark P Smith, and Venetia A Smith, directors, provided outsourced bookkeeping,management accounting and financial administrative support to the company during the year. The amount paid to Logikal Outsourcing Limited for bookkeeping and support work was £81,085 (2023: £nil). At the balance sheet date, Mainstream Training Limited owed Logikal Outsourcing Limited £nil (2023: £nil) |
Logikal Group Limited, a company jointly controlled by Mark P Smithand Venetia A Smith, directors, is the landlord of the companies head office. The amount paid to Logikal Group Limited was £22,063 (2023: £nil). At the balance sheet date, Mainstream Training Limited owed Logikal Group Limited £nil (2023: £nil). |
Peartree Group Limited, a company controlled by Graham Clewes, a director, provided compliance and strategic support services to the company in the year. The amount paid to Peartree Group Limited was £66,741 (2023: £6,000). At the balance sheet date, Mainstream Training Limited owed Peartee Group Limited £nil (2023: £nil). |
Waller Associates Limited a company controlled by Steve Waller, who owns a minority share in Ascentrix Limited, provided property maintenance services to the company in the year. The amount paid to Waller Associates Limited was £13,622 (2023: £nil). At the balance sheet date, Mainstream Training Limited owed Waller Associates Limited £nil (2023: £nil). |
Venrec Group Limited a company in which Mark P Smith and Venetia A Smith, directors, are shareholders, provided recruitment services to the company in the year. The amount paid to Venrec Group Limited was £105,984 (2023: £58,320), this is after offsetting income charged from Mainstream Training Limited of £8,500 for office space rental. At the balance sheet date, Mainstream Training Limited owed Venrec Group Limited £16,500 (2023: £21,480). |
Maxine Smith, the spouse of Mark MG Smith, a director, invoiced the company in the year for administrative services. The amount paid to M Smith in the year was £27,450 (2023: £24,248). At the balance sheet date, Mainstream Training Limited owed M Smith £2,674 (2023: £1,988). |
21. | ULTIMATE CONTROLLING PARTY |
There is no ultimate controlling party, no individual shareholder holds more than 25% of the issued share capital of the ultimate parent company. |
22. | SECURED DEBTS |
A cross guarantee on bank borrowings exists between Mainstream Training Limited and Mainstream Fleet Services Limited. |