Registered number:
For the Year Ended
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Back 2 Work Group Limited
Company Information
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Back 2 Work Group Limited
Contents
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Back 2 Work Group Limited
Group Strategic Report
For the Year Ended 31 July 2024
The directors present their strategic report together with the audited financial statements for the year ended 31 July 2024.
The principal activities of the Group 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
∙Commercial
Back 2 Work Group Limited 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. With new UKSPF contracts adding to our upskill programmes.
Just IT Limited continues to deliver digital training in both apprenticeships and bootcamps, with results for the year including a new AEB contract which is enabling the entity to offer a level 2 entry point for learners to start their digital skills journey. During the year the Group completed 2 further acquisitions, Bespoke Professional Development and Training Ltd and Greendale Ltd (trading as ECTA). These acquisitions have provided entry into the HR and Green training sector, significantly increasing our apprenticeship occupancy, customer base and bootcamp contracts. The Group receives government funding from 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 UK shared prosperity fund (UKSPF). Just IT Limited, Bespoke Professional Development and Training Ltd and Greendale Ltd all have corporate revenue, with corporate clients for training courses and Just IT only recruitment services. The Group’s results for the year include accrued but unpaid loan note interest of £1,840,150 which is held within subsidiary, Back 2 Work Holdings Limited. This interest relates to loan notes issued as part of the acquisition of Just IT Training Limited. The loan notes remain outstanding as at 31 July 2024, and the associated interest continues to accrue in line with the agreed terms. This has impacted the Group’s reported finance costs for the year, and overall loss for the year of £3,681,856.
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Back 2 Work Group Limited
Group Strategic Report (continued)
For the Year Ended 31 July 2024
The majority of revenue is through funding from the government via ESFA or AEB devolved budgets. Changes to government funding priorities therefore remains the primary risk faced by the Group. As we outlined last year, 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.
The Group continues to have 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 Group are cash, trade debtors and trade creditors. The management of these instruments provides finance for the Group’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 as outlined below: Price risk The Group closely monitors changes to price across its operation and reacts appropriately and on a timely basis where appropriate. Credit risk The Group’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 Group manages cash closely with regular review of actual and forecast cashflows monthly, supplemented by weekly cash reporting, ensuring liquidity available to meet needs.
Financial key performance indicators
The Group uses a number of financial key performance indicators to monitor business performance:
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Back 2 Work Group Limited
Group Strategic Report (continued)
For the Year Ended 31 July 2024
The desirability of the Group maintaining a reputation for high standards of business conduct
Delivering high standards of business conduct and maintaining a positive reputation with our commissioners, stakeholders and service users is fundamental to the success of our business. When making decisions, the directors consider the insights obtained through engagement activities with these groups and best industry practice and are cognisant of the importance of maintaining our reputation for high standards of business conduct. The directors provide the systems, processes, and people to ensure our conduct is driven by our values across the whole organisation, and that all employees understand the part they play in this ambition. This is underpinned by clear group policies, performance reviews, staff training and regular board communications. Primary board focus and decision making during the year Core focus and strategy in the year has been different within the Group. The Group board has been heavily involved in the acquisition and onboarding of the 2 acquisitions, completing significant due diligence ahead of each acquisition. The acquisitions have provided access to new training sectors and customer base. The key focus will be fully integrating these companies quickly into the group, growing the core businesses and where appropriate providing our customers a more comprehensive training solution. As we reported last year Back to Work Complete Training's focus has been adjusting its curriculum and delivery for the changing funding rules. The impact of these changes proved extremely challenging as we navigated through FY24. Ensuring the right learners were engaged onto longer courses to avoid high non achievers number- lead to a complete revisit of our IAG and onboarding process. Whilst also reviewing all teams within the business to make processes more efficient to mitigate the rising costs of delivery. Alongside this Back to work also had to mobilisation a significant AEB contract, 2 UK SPF contracts, taking both significant planning and costs to mobilise. Whilst quality continues to be a core commitment within Just IT, new processes and teams have now embedded the group standards into everyday activities and reporting. Allowing the focus in the year to be the setup of the new AEB provision and the delivery of the growing bootcamp provision. The entity has seen the benefits of the strong management team that was put in place in the prior year, they continue to improve the delivery models and key metrics across the provisions. The board continues to look for further acquisition opportunities that would both complement existing provisions or deliver sector training within growth sectors that we currently do not provide. All potential targets are appraised on numerous factors, primarily being quality, potential growth opportunities, cross group opportunities and financial strength. The need to foster the Group's business relationships with suppliers, customers and others The Group is committed to fostering good business relationships with suppliers, customers and other stakeholders which are fundamental to our business model. The business is operated in an ethical and responsible way with high standards of business conduct, driven by the senior management team. There are processes and policies in place to ensure that all our customers are treated fairly, and with care and respect. In relation to suppliers, the Group procurement and outsourcing policies ensure that any tender processes are fair and transparent, and suppliers receive constructive feedback. The Group has been in frequent communication with both suppliers and customers throughout the year ensuring any potential issues are identified early and managed effectively. Staff wellbeing and engagement The Group is a “mission driven” organisation guided by a strong set of established values. Through ongoing communication and monthly business updates the full workforce is kept informed of business performance, market conditions and strategic direction as determined by Senior Leadership. The Group prides itself on a robust wellbeing and support offer for its workforce including trained mental health champions, access to funded counselling and medical support, HR policies supporting flexible working and a general positive approach to engaging with staff regarding any challenges they face, work related or not.
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Back 2 Work Group Limited
Group Strategic Report (continued)
For the Year Ended 31 July 2024
The Group recognises its impact on communities in which we operate, and regularly engages with employers, local government, community groups, representative bodies and individuals across England to deliver government funded education, training and employment support to residents who have the need to increase their knowledge and skills or require support to access employment. We gain their feedback through formal and informal processes and use this insight to evolve and improve our services to futureproof our provision. The Group recognises the need to consider the environmental impact of our operations, and we review our delivery regularly to ensure we minimise our impact and positively deliver against our carbon reduction plan. As well as corporate level initiatives, staff training ensures environmental impact is considered in our everyday decision making and service design.
This report was approved by the board and signed on its behalf.
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Back 2 Work Group Limited
Directors' Report
For the Year Ended 31 July 2024
The directors present their report and the financial statements for the year ended 31 July 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £3,681,856 (2023 -loss £2,171,555).
No dividends have been recommended for payment in the financial year.
The directors who served during the year were:
The Group maintains a robust financial position and with the support of Palatine Private Equity LLP, will continue to deliver government funded education and training programmes to both unemployed and in-work learners.
The directors have chosen to set out disclosures relating to engagement with employees in the strategic report.
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Back 2 Work Group Limited
Directors' Report (continued)
For the Year Ended 31 July 2024
The directors have chosen to set out the disclosures 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.
There have been no significant events affecting the company since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Back 2 Work Group Limited
Independent Auditors' Report to the Members of Back 2 Work Group Limited
We have audited the financial statements of Back 2 Work Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group 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 Group's or the parent 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.
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Back 2 Work Group Limited
Independent Auditors' Report to the Members of Back 2 Work Group Limited (continued)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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Back 2 Work Group Limited
Independent Auditors' Report to the Members of Back 2 Work Group 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 Group 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:
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 policy 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 discussion 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 Antibribery 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 statement 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 and 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.
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Back 2 Work Group Limited
Independent Auditors' Report to the Members of Back 2 Work Group Limited (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments. We have 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.
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.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Cheshire
SK1 3GG
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Back 2 Work Group Limited
Consolidated Statement of Comprehensive Income
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Registered number: 12872639
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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Back 2 Work Group Limited
Registered number: 12872639
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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Back 2 Work Group Limited
Consolidated Statement of Changes in Equity
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Company Statement of Changes in Equity
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Consolidated Statement of Cash Flows
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Consolidated Statement of Cash Flows (continued)
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Consolidated Analysis of Net Debt
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
Back 2 Work Group 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 12872639.
The nature of the group's operation and its principal activity is to provide pre and post-employment training throughout the UK. The consolidated financial statements of Back 2 Work Group Limited as at and for the year ended 31 July 2024 comprise the financial statements of Back 2 Work Group Limited and its subsidiaries (together referred to as "the Group"). These subsidiaries are disclosed in the fixed asset investments note of these accounts.
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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
2.Accounting policies (continued)
The directors have presented the financial statements on a going concern basis which assumes the company
and group will have sufficient resources to meet liabilities as they fall due. During the year ended 31 July 2024, the group reported a loss of £3,681,856 (2023: loss of £2,171,555) due to loan note interest that has been accrued and not paid. At 31 July 2024, the group had net current assets of £1,709,420 (2023: £2,062,015) and net liabilities totalled £9,659,022 (2023: £5,977,166). The directors have prepared profit and cash flow forecasts covering 12 months from the date of signing the financial statements and believe that the assumptions underlying their forecasts are reasonable. These forecasts indicate that the company and group will have sufficient cash to enable them to discharge their liabilities as and when they fall due. This assessment is supported by profit and loss and cash flow forecasts of the trading subsidiaries prepared by management. The financial statements have therefore been prepared on a going concern basis. Rendering of services Revenue from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Revenue is only recognised to the extent of recoverable expenses when the outcome of the contract cannot be estimated reliably.
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
2.Accounting policies (continued)
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
2.Accounting policies (continued)
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets 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 Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments. Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies 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. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. 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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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
2.Accounting policies (continued)
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Revenue recognition and work in progress The management of the Group exercise significant judgement in making an assessment of the stage of completion of a contract at the year-end and the appropriate amount of revenue and attributable profit to recognise. The Group has recognised amounts recoverable on contract with a carrying value of £3,606,334 (2023: £4,059,558) and deferred income with a carrying value of £200,817 (2023: £279,429). Goodwill Goodwill acquired on business combinations is capitalised on the balance sheet and amortised over its expected useful economic life or ten years, whichever is shorter. At year end, the carrying value of goodwill was £18,303,900 (2023: £17,527,127). Should these estimates vary, the profit or loss and balance sheet of the following years could be significantly impacted. There are no other significant estimates or judgements.
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
There are tax losses of £497,967 available to offset future taxable profits.
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
Debenture loans totalling £16,485,041 (2023: £16,485,041) are entitled to interest at 10% per annum. They are
redeemable at par along with any unpaid interest five years from the date of issue, which is 22 October 2025. The loan notes are secured on a fixed and floating charge over all property or undertaking of the company. Debenture loans totalling £1,993,825 (2023: £1,993,825) are entitled to interest at 10% per annum. They are redeemable at par along with any unpaid interest five years from the date of issue, which is 8 June 2027. The loan notes are secured on a fixed and floating charge over all property or undertaking of the company. The company refinanced both Bank Loan A and Bank Loan B in the year in order to facilitate the acquisition of Bespoke Professional Development and Training Limited and Greendale Limited. The company also has access to a £1,000,000 revolving overdraft as part of the refinancing. This is not in use and is not expected to be put into use in the near future. Other creditors include deferred consideration payable for the acquisitions of Bespoke Professional Development and Training Limited and Greendale Limited during the year. As no probable contingencies exist that would prevent payment, the full amount has been accrued within other creditors.
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
Share premium account
Capital redemption reserve
Profit and loss account
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
25.Business combinations (continued)
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
25.Business combinations (continued)
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
25.Business combinations (continued)
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group during the year and amounted to £277,427 (2023: £238,766). Contributions totalling £86,886 (2023: £75,564) were payable to the fund at the balance sheet date and are included in other creditors.
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Back 2 Work Group Limited
Notes to the Financial Statements
For the Year Ended 31 July 2024
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