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Registered number: 12875592









Back 2 Work Holdings Limited









Annual Report and Financial Statements

For the Year Ended 31 July 2024

 
Back 2 Work Holdings Limited
 
 
Company Information


Directors
L A Muscat-Terribile 
J E Gregson 
T Lewis 
J Painter 




Registered number
12875592



Registered office
Building 4
Universal Square

Devonshire Street

Manchester

M12 6JH




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG





 
Back 2 Work Holdings Limited
 

Contents



Page
Strategic Report
 
1
Directors' Report
 
2 - 3
Independent Auditors' Report
 
4 - 7
Statement of Comprehensive Income
 
8
Balance Sheet
 
9
Statement of Changes in Equity
 
10
Notes to the Financial Statements
 
11 - 21


 
Back 2 Work Holdings Limited
 
 
Strategic Report
For the Year Ended 31 July 2024

Introduction
 
The directors present the strategic report for the year ended 31 July 2024.

Business review
 
The nature of the company’s operation and principal activity is that of an intermediate holding company.
The financial position and performance of the company's subsidiaries do not, in the view of the directors, give rise to any impairment of investments in subsidiary undertakings.
During the year Back 2 Work Holdings 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.

Principal risks and uncertainties
 
The principal risk and uncertainty facing the company is the financial performance of its subsidiary undertakings.
The underlying financial performance of the company's subsidiary undertakings supports the valuation of investments in the company balance sheet. The company is reliant on cash generation in the subsidiary undertakings and subsequent distributions to service its debt.

Financial key performance indicators
 
The directors have identified no evidence of impairment in the carrying value of investments in the subsidiary undertaking and believe it is appropriate to carry the investment value at a cost of £35,213,409.
The posted loss has been significant in the year due to the accrued loan note interest following the acquisition of Back 2 Work Complete Training Limited in the 2020, and Just IT Training & Skills Team Limited in 2022. Loan note interest only becomes payable in the event of a sale.


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



L A Muscat-Terribile
Director

Date: 26 February 2025

Page 1

 
Back 2 Work Holdings 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.

Directors' responsibilities statement

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

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £2,400,251 (2023 -loss £2,090,409).

No dividends have been recommended for payment in the financial year.

Directors

The directors who served during the year were:

L A Muscat-Terribile 
J E Gregson 
T Lewis 
J Painter 

Future developments

The company continues to develop its subsidiary undertakings.

Matters covered in the Strategic Report

The directors have chosen to set out the disclosure relating to financial risk objectives & policies and information on
exposure to price risk, credit risk, liquidity risk and cash flow risk in the strategic report.

Page 2

 
Back 2 Work Holdings Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 July 2024

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





L A Muscat-Terribile
Director

Date: 26 February 2025

Page 3

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

Opinion


We have audited the financial statements of Back 2 Work Holdings Limited (the 'company') for the year ended 31 July 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 4

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


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


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


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 5

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


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:

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.
 
Page 6

 
Back 2 Work Holdings Limited
 
 
 
Independent Auditors' Report to the Members of Back 2 Work Holdings 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 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.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Helen Besant-Roberts (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

 
Date: 
26 February 2025
Page 7

 
Back 2 Work Holdings Limited
 
 
Statement of Comprehensive Income
For the Year Ended 31 July 2024

2024
2023
Note
£
£

  

Administrative expenses
  
(128,022)
(126,348)

Operating loss
  
(128,022)
(126,348)

Interest payable and similar expenses
 6 
(2,272,229)
(1,964,061)

Loss before tax
  
(2,400,251)
(2,090,409)

Tax on loss
 7 
-
-

Loss for the financial year
  
(2,400,251)
(2,090,409)

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 11 to 21 form part of these financial statements.

Page 8

 
Back 2 Work Holdings Limited
Registered number: 12875592

Balance Sheet
As at 31 July 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 8 
35,213,409
30,570,409

Current assets
  

Debtors: amounts falling due after more than one year
 9 
47,111
42,959

Debtors: amounts falling due within one year
 9 
67,743
44,822

Cash at bank and in hand
 10 
3,924
12,687

  
118,778
100,468

Creditors: amounts falling due within one year
 11 
(9,234,927)
(6,918,516)

Net current liabilities
  
 
 
(9,116,149)
 
 
(6,818,048)

Total assets less current liabilities
  
26,097,260
23,752,361

Creditors: amounts falling due after more than one year
 12 
(30,529,085)
(25,783,935)

  

Net liabilities
  
(4,431,825)
(2,031,574)


Capital and reserves
  

Called up share capital 
 14 
43,979
43,979

Profit and loss account
 15 
(4,475,804)
(2,075,553)

  
(4,431,825)
(2,031,574)


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




L A Muscat-Terribile
Director

Date: 26 February 2025

The notes on pages 11 to 21 form part of these financial statements.

Page 9

 
Back 2 Work Holdings Limited
 

Statement of Changes in Equity
For the Year Ended 31 July 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 13 August 2022
43,979
14,856
58,835


Comprehensive income for the year

Loss for the year
-
(2,090,409)
(2,090,409)



At 1 August 2023
43,979
(2,075,553)
(2,031,574)


Comprehensive income for the year

Loss for the year
-
(2,400,251)
(2,400,251)


At 31 July 2024
43,979
(4,475,804)
(4,431,825)


The notes on pages 11 to 21 form part of these financial statements.

Page 10

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

1.


General information

Back 2 Work Holdings Limited is a private company limited by shares 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 12875592.
The nature of the company's operation and its principal activity is that of an intermediate holding company.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Back 2 Work Group Limited as at 31 July 2024 and these financial statements may be obtained from Companies House.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent Company that is also a subsidiary included in the consolidated financial statements
of its immediate parent undertaking established under the law of an EEA state and is therefore exempt from
the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 11

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

2.Accounting policies (continued)

 
2.4

Going concern

The directors have presented the financial statements on a going concern basis which assumes the company will have sufficient resources to meet liabilities as they fall due.
During the year ended 31 July 2024, the company reported a loss of £2,400,251 (
2023: loss of £2,090,409) due to loan note interest that has been accrued and not paid. At 31 July 2024, the company had net current liabilities of £9,116,149 (2023: £6,818,048) and net liabilities totalled £4,431,825 at 31 July 2024 (2023: £2,031,574).
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 and accordingly that the company can continue for the foreseeable future 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.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.7

Debtors

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

 
2.8

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.9

Creditors

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

Page 12

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

2.Accounting policies (continued)

 
2.10

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.

Financial instruments are recognised in the company's Balance Sheet when the company becomes party to the contractual provisions of the instrument.

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 company'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 company after the deduction of all its liabilities.
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.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

 
Page 13

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

2.Accounting policies (continued)


2.10
Financial instruments (continued)

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.
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 company 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 company 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 company's contractual obligations expire or are discharged or cancelled.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates that affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from the judgements, estimates and assumptions. 
The judgements, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the Group as at 31 July 2024 are discussed below:
Carrying value of investments and impairment
The Company has recognised investments with a carrying value of £35,213,409 (2023: £30,570,409). Investments are assessed for impairment by using an adjusted EBITDA multiple and comparing to the carrying value of the assets, as well as a review of any significant difficulties facing the corresponding trading companies.
There are no other significant estimates or judgements.

Page 14

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

4.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the company's auditors and their associates for the audit of the company's financial statements
2,550
1,670

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


5.


Employees




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


        2024
        2023
            No.
            No.







Directors
4
4


6.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
432,079
123,704

Other loan interest payable
1,840,150
1,840,357

2,272,229
1,964,061

Page 15

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

7.


Taxation



Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 -higher than) the standard rate of corporation tax in the UK of 25% (2023 -25%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(2,400,251)
(2,090,409)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -25%)
(600,063)
(522,602)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
460,038
478,872

Other differences leading to an increase (decrease) in the tax charge
1,365
-

Group relief
138,660
43,730

Total tax charge for the year
-
-


Factors that may affect future tax charges

There are tax losses of £497,967 available to offset future taxable profits.

Page 16

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

8.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 August 2023
30,570,409


Additions
4,643,000



At 31 July 2024
35,213,409





Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Class of shares

Holding

Back 2 Work Complete Training Limited
Building 4, Universal Square, Devonshire Street North, Manchester, M12 6JH
Ordinary
100%
Just IT Training Limited
Building 4, Universal Square, Devonshire Street North, Manchester, M12 6JH
Ordinary
100%
Skills Team Limited
Building 4, Universal Square, Devonshire Street North, Manchester, M12 6JH
Ordinary
100%
Bespoke Professional Development and Training Limited*
Building 4, Universal Square, Devonshire Street North, Manchester, M12 6JH
Ordinary
100%
Greendale Limited (T/A ECTA)**
Building 4, Universal Square, Devonshire Street North, Manchester, M12 6JH
Ordinary
100%

* On 20 December 2023, 100% of the share capital of Bespoke Professional Training and Development Limited was acquired by Back 2 Work Holdings Limited.
** On 23 February 2024, 100% of the share capital of Greendale Limited was acquired by the Back 2 Work Group Limited.

Page 17

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

9.


Debtors

2024
2023
£
£

Due after more than one year

Other debtors
47,111
42,959


2024
2023
£
£

Due within one year

Other debtors
59,743
36,822

Prepayments and accrued income
8,000
8,000

67,743
44,822



10.


Cash

2024
2023
£
£

Cash at bank and in hand
3,924
12,687


Page 18

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

11.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
1,020,000
1,020,000

Trade creditors
11,493
12,137

Amounts owed to group undertakings
7,491,801
5,858,018

Other creditors
663,955
-

Accruals and deferred income
47,678
28,361

9,234,927
6,918,516


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.
Loan A was refinanced in December 2023 and now totals £2,550,000 (
2023: £2,550,000), with a related interest rate of Base Rate plus 3.5% until December 2026 (2023: Base rate plus 3.5% until September 2025). The loan is repaid on a quarterly basis. The loan is secured by way of a fixed and floating charge over all property or undertaking of the company.
Loan B was refinanced in February 2024 and now totals £3,550,000 (
2023: £1,250,000), with a related interest rate of Base Rate plus 4% until December 2026 (2023: Base rate plus 3.5% until September 2025). It is a bullet loan, with the capital amount due in full in December 2026 (2023: September 2025). The loan is secured by way of a fixed and floating charge over all property or undertaking of the company.
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.
Amounts owed to group undertakings are interest free, unsecured and repayable on demand.
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.

Page 19

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

12.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Debenture loans
18,478,866
18,478,866

Bank loans
5,080,000
2,525,000

Other creditors
350,000
-

Accruals and deferred income
6,620,219
4,780,069

30,529,085
25,783,935


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.


13.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
1,020,000
1,020,000

Amounts falling due 1-2 years

Bank loans
1,020,000
1,020,000

Debenture loans
16,485,041
-

Amounts falling due 2-5 years

Bank loans
4,060,000
1,505,000

Debenture loans
1,993,825
18,478,866


24,578,866
22,023,866


Page 20

 
Back 2 Work Holdings Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 July 2024

14.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



4,397,900 (2023 -4,397,900) Ordinary shares of £0.01 each
43,979
43,979



15.


Reserves

Profit and loss account

The profit and loss account includes all current retained profits and losses.


16.


Related party transactions

The directors have chosen not to disclose transactions entered into with other companies wholly owned within the group as permitted under FRS 102 paragraph 33.1A.
Loan notes have been issued to shareholders of the parent company totalling £18,478,866. 
Loan notes issued in October 2020 totalling £16,485,041 (
2023: £16,485,041) attract interest at 10% per annum. During the year, interest of £1,640,768 (2023: £1,640,357) was incurred. The loan notes are redeemable at par five years from the date of issue which is 22 October 2025.
Loan notes issued in June 2022 totalling £1,993,825 (
2023: £1,993,825) attract interest at 10% per annum. During the year, interest of £199,383 (2023: £200,000) was incurred. The loan notes are redeemable at par five years from the date of issue which is 8 June 2027.


17.


Controlling party

The immediate and ultimate parent undertaking is Back 2 Work Group Limited, a company registered in England and Wales, registered number 12872639. 
The company is exempt from the obligation to produce and deliver group accounts as Back 2 Work Group Limited is the parent company of the largest group for which group accounts are prepared.
The consolidated financial statements of Back 2 Work Group Limited are available to the public and may be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff, C14 3UZ.
There is no overall controlling party in Back 2 Work Group Limited.

 
Page 21