Company registration number 11448437 (England and Wales)
APPRENTIFY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
APPRENTIFY GROUP LIMITED
COMPANY INFORMATION
Directors
J Bygrave
P Mehta
W H Nash
J Fitchew
J Butterfield
(Appointed 8 November 2024)
Secretary
C S R Tattam
Company number
11448437
Registered office
25 Water Lane
First Floor
Wilmslow
Cheshire
SK9 5AR
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Business address
25 Water Lane
First Floor
Wilmslow
Cheshire
SK9 5AR
Bankers
Lloyds Bank plc
53 King Street
Manchester
M2 4LQ
HSBC
22-24 Colmore Road
Birmingham
B3 3QD
APPRENTIFY GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 32
APPRENTIFY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

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

Review of the business

The directors consider the performance of the Group to be strong, with continued growth achieved in the financial year. Turnover increased to £13,981,447 (2023: £8,484,515), reflecting a 65% increase. This was driven by the continued expansion of Apprentify Limited and strong performance from Netcom Training Ltd, which further consolidated its position within the Group. Gross profit increased to £9,215,129 maintaining a robust 66% margin (2023: 69%).

The Group has continued to develop its apprenticeship and training offerings, responding to market demand and employer needs. Investments in digital learning platforms and the expansion of course portfolios have contributed to an increase in learner enrolments and employer partnerships.

Principal Risks and Uncertainties

The directors recognise that the Group faces a number of business risks and uncertainties. The principal risks facing the Group are:

Economy

The UK economic environment remains a key risk, particularly given uncertainty in the UK following a change in government and a challenging economic environment. The directors actively monitor macroeconomic trends and adjust business strategies to mitigate any adverse impacts.

Laws and Regulations

The Group operates in a highly regulated market where changes in government policy can impact the business. There is regulatory risk particularly surrounding the Apprenticeship Levy rules and regulations, and the Education and Skills Funding Agency reviews. The directors actively review regulations and policies to ensure compliance. There are mechanisms in place to manage and adapt to new rules and regulations as necessary. As at the date of this report, the Group continues to meet the ongoing requirements for the relevant regulations.

Financial Key Performance Indicators

The directors utilise a comprehensive monthly Performance Report covering Turnover, Contracts, Turnover from Key Customers, Cash Flow, New Starts, and Learners on Programme.

The key financial performance indicators for the year were:

The Group remains committed to sustainable growth and innovation in the apprenticeship and training sector, continuing to refine its offerings to meet employer and learner needs effectively.

On behalf of the board

J Fitchew
Director
24 February 2025
APPRENTIFY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 July 2024.

Principal activities

The principal activity of the company is that of a holding company. The principal activities of the group continued to be that of employment placement and educational services.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

P Drew
(Resigned 31 January 2024)
J Bygrave
P Mehta
W H Nash
J Fitchew
J Butterfield
(Appointed 8 November 2024)
Financial instruments
Liqudity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate and inflation risk

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits and loans.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. Credit risk is considered to be low given that a substantial proportion of income is from Combined Authorities and the Government, which are considered to have high creditworthiness.

Post reporting date events

See note 28 for details of post balance sheet events.

Future developments

The directors will continue to monitor the risks disclosed in the Strategic Report. The directors will continue to look for ways to maximise the student experience, enhance student curriculum and review strategic alternatives that result in creating and maximising value. The current outlook is positive. The Group will continue to invest in and launch new courses and offerings to help strengthen its position in the market.

Auditor

The auditor, JS. Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

APPRENTIFY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
J Fitchew
Director
24 February 2025
APPRENTIFY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF APPRENTIFY GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of Apprentify Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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 our audit:

APPRENTIFY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF APPRENTIFY GROUP LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, included within the directors' report, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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 and fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below.

 

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation, and the group's funding agreement with the Education and Skills Funding Agency and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.

APPRENTIFY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF APPRENTIFY GROUP LIMITED
- 6 -

Our procedures to respond to risks identified included the following:

 

 

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.

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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 auditor's 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.

Christopher Moss BSc F.C.A. (Senior Statutory Auditor)
For and on behalf of JS. Audit Limited, Statutory Auditor
Chartered Accountants
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
27 February 2025
APPRENTIFY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
2024
2023
as restated
Notes
£
£
Turnover
3
13,981,447
8,484,515
Cost of sales
(4,766,318)
(2,595,757)
Gross profit
9,215,129
5,888,758
Administrative expenses
(8,529,730)
(6,137,609)
Operating profit/(loss)
4
685,399
(248,851)
Interest receivable and similar income
8
69
8
Interest payable and similar expenses
9
(870,500)
(902,070)
Loss before taxation
(185,032)
(1,150,913)
Tax on loss
10
(198,655)
130,890
Loss for the financial year
(383,687)
(1,020,023)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
APPRENTIFY GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
6,691,938
7,576,755
Other intangible assets
11
1,251,958
1,074,109
Total intangible assets
7,943,896
8,650,864
Tangible assets
12
388,487
173,742
8,332,383
8,824,606
Current assets
Debtors
15
2,374,026
1,284,539
Cash at bank and in hand
217,348
329,901
2,591,374
1,614,440
Creditors: amounts falling due within one year
16
(2,591,585)
(5,538,978)
Net current liabilities
(211)
(3,924,538)
Total assets less current liabilities
8,332,172
4,900,068
Creditors: amounts falling due after more than one year
17
(8,424,268)
(4,738,391)
Provisions for liabilities
Deferred tax liability
19
129,914
-
0
(129,914)
-
Net (liabilities)/assets
(222,010)
161,677
Capital and reserves
Called up share capital
21
2
2
Share premium account
22
1,719,999
1,719,999
Profit and loss reserves
22
(1,942,011)
(1,558,324)
Total equity
(222,010)
161,677
The financial statements were approved by the board of directors and authorised for issue on 24 February 2025 and are signed on its behalf by:
24 February 2025
J Fitchew
Director
Company registration number 11448437 (England and Wales)
APPRENTIFY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
537,639
-
0
Tangible assets
12
265
644
Investments
13
10,833,986
11,363,643
11,371,890
11,364,287
Current assets
Debtors
15
26,523
158,397
Cash at bank and in hand
93,746
92,828
120,269
251,225
Creditors: amounts falling due within one year
16
(1,229,424)
(4,840,594)
Net current liabilities
(1,109,155)
(4,589,369)
Total assets less current liabilities
10,262,735
6,774,918
Creditors: amounts falling due after more than one year
17
(13,662,637)
(7,764,560)
Net liabilities
(3,399,902)
(989,642)
Capital and reserves
Called up share capital
21
2
2
Share premium account
22
1,719,999
1,719,999
Profit and loss reserves
22
(5,119,903)
(2,709,643)
Total equity
(3,399,902)
(989,642)

As permitted by s408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,410,260 (2023 - £2,001,960 loss).

The financial statements were approved by the board of directors and authorised for issue on 24 February 2025 and are signed on its behalf by:
24 February 2025
J Fitchew
Director
Company registration number 11448437 (England and Wales)
APPRENTIFY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
2
1,199,999
(538,301)
661,700
Year ended 31 July 2023:
Loss and total comprehensive income
-
-
(1,020,023)
(1,020,023)
Issue of share capital
21
-
0
520,000
-
520,000
Balance at 31 July 2023
2
1,719,999
(1,558,324)
161,677
Year ended 31 July 2024:
Loss and total comprehensive income
-
-
(383,687)
(383,687)
Balance at 31 July 2024
2
1,719,999
(1,942,011)
(222,010)
APPRENTIFY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
2
1,199,999
(707,683)
492,318
Year ended 31 July 2023:
Loss and total comprehensive income for the year
-
-
(2,001,960)
(2,001,960)
Issue of share capital
21
-
0
520,000
-
520,000
Balance at 31 July 2023
2
1,719,999
(2,709,643)
(989,642)
Year ended 31 July 2024:
Profit and total comprehensive income
-
-
(2,410,260)
(2,410,260)
Balance at 31 July 2024
2
1,719,999
(5,119,903)
(3,399,902)
APPRENTIFY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,538,485
15,582
Interest paid
(450,536)
(397,265)
Income taxes (paid)/refunded
(104,496)
874
Net cash inflow/(outflow) from operating activities
983,453
(380,809)
Investing activities
Purchase of business
-
(245,564)
Purchase of intangible assets
(325,932)
(381,685)
Purchase of tangible fixed assets
(309,332)
(78,317)
Proceeds from disposal of tangible fixed assets
5,060
-
Interest received
69
8
Net cash used in investing activities
(630,135)
(705,558)
Financing activities
Proceeds from issue of shares
-
519,882
Proceeds from borrowings
48,412
734,396
Repayment of borrowings
-
(50,000)
Repayment of bank loans
(514,252)
(518,675)
Net cash (used in)/generated from financing activities
(465,840)
685,603
Net decrease in cash and cash equivalents
(112,522)
(400,764)
Cash and cash equivalents at beginning of year
329,870
730,634
Cash and cash equivalents at end of year
217,348
329,870
Relating to:
Cash at bank and in hand
217,348
329,901
Bank overdrafts included in creditors payable within one year
-
(31)
APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
1
Accounting policies
Company information

Apprentify Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 25 Water Lane, First Floor, Wilmslow, Cheshire, England, SK9 5AR.

 

The group consists of Apprentify Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Adjustment to comparatives

Administrative expenses totalling £571,972 have been recategorised as cost of sales in the profit and loss account comparatives to these accounts. The effect of the restatement is cost of sales have increased by £571,192 and administrative expenses have decreased by £571,972. The reason for the change was to recategorise wages from administrative expenses to cost of sales as they are better represented as cost of sales. There has been no effect on the prior year result or brought forward retained earnings.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Apprentify Group Limited together with all entities controlled by the parent company.

 

Subsidiaries acquired are consolidated using the acquisition method. Under the acquisition method, the results are incorporated from the date that control passes.

 

All financial statements are made up to 31 July 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.5
Going concern

In order to prepare the financial statements on the going concern basis, the directors have considered financial projections for a period of 12 months from the date of approving the financial statements. These projections are based on the group’s annual business plan for the year ended 31 July 2025 adjusted to reflect actual results and projected forward to cover the period under review.

The directors have also considered sensitivity analysis performed on these forecasts to model the impact of a reasonably expected reduction in income and EBITDA and are satisfied that the group can still continue to make the loan repayments in accordance with the agreement.

Based on the forecasts and sensitivity analysis the directors have a reasonable expectation that the group can continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis in preparing the financial statements.

1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for training and employment placement services provided in the normal course of business, and is shown net of VAT.

1.7
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.8
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.9
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs
10 years straight line
1.10
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
20% per annum on a straight line basis
Fixtures and fittings
20% per annum on a straight line basis
Computers
20% per annum on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.11
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.12
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -
1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Development costs

The directors consider the criteria for capitalising development costs to be a critical accounting judgement. Development costs are capitalised when the result is an asset which is expected to generate a future economic benefit.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Fixed asset investments

The directors consider the estimation of carrying values of fixed asset investments and intangible assets to be a key area of uncertainty.

Carrying values of fixed asset investments are initially measured at cost and subsequently measured at cost less impairment.

 

Intangible assets include goodwill which is amortised over its useful economic life.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Employment placement and training services
13,981,447
8,484,515
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
13,981,447
8,484,515
2024
2023
£
£
Other revenue
Interest income
69
8
4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging:
Depreciation of owned tangible fixed assets
89,499
53,868
Loss on disposal of tangible fixed assets
28
657
Amortisation of intangible assets
1,032,900
944,968
Operating lease charges
271,376
212,490
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,500
5,000
Audit of the financial statements of the company's subsidiaries
13,250
10,000
20,750
15,000
For other services
All other non-audit services
48,450
27,470
APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 20 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Direct
74
46
-
-
Indirect
84
61
6
4
Directors
5
5
4
4
Total
163
112
10
8

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,732,964
4,212,660
989,780
869,758
Social security costs
663,608
424,123
107,164
102,074
Pension costs
94,536
64,125
12,572
12,021
7,491,108
4,700,908
1,109,516
983,853
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
460,498
528,513
Company pension contributions to defined contribution schemes
10,101
11,201
470,599
539,714
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
131,230
152,000

At the reporting date there were 2 (2023: 4) directors accruing defined contribution benefits across the group.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
22
8
Other interest income
47
-
Total income
69
8
9
Interest payable and similar expenses
2024
2023
£
£
Interest payable on bank loans
419,107
390,906
Interest payable on loan notes
385,240
459,456
Interest payable other
20,776
6,331
Amortisation of issue costs on bank loans
32,722
17,672
Amortisation of issue costs on loan notes
12,655
27,705
Total finance costs
870,500
902,070
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
14,445
-
0
Adjustments in respect of prior periods
-
0
26,637
Total current tax
14,445
26,637
Deferred tax
Origination and reversal of timing differences
184,251
(157,527)
Adjustment in respect of prior periods
(41)
-
0
Total deferred tax
184,210
(157,527)
Total tax charge/(credit)
198,655
(130,890)
APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
10
Taxation
(Continued)
- 22 -

The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(185,032)
(1,150,913)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
(46,258)
(241,807)
Tax effect of expenses that are not deductible in determining taxable profit
36,307
27,345
Tax effect of income not taxable in determining taxable profit
(15)
-
0
Tax effect of utilisation of tax losses not previously recognised
(172,626)
(7,885)
Unutilised tax losses carried forward
10,406
41,356
Permanent capital allowances in excess of depreciation
(63,904)
(17,889)
Depreciation on assets not qualifying for tax allowances
37,950
11,318
Amortisation on assets not qualifying for tax allowances
220,075
187,562
Under/(over) provided in prior years
-
0
26,637
Deferred tax adjustments in respect of prior years
(41)
-
0
Deferred tax movement
184,251
(157,527)
Adjustment on consolidation
(7,490)
-
0
Taxation charge/(credit)
198,655
(130,890)

Deferred tax has been calculated using a rate of 25% (2023: 25%).

 

A UK corporation tax rate of 25% was announced in the Chancellor’s Budget of 3 March 2021. The 25% rate was applied from 1 April 2023.

11
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 August 2023
8,848,172
1,310,699
10,158,871
Additions - internally developed
-
0
325,932
325,932
At 31 July 2024
8,848,172
1,636,631
10,484,803
Amortisation and impairment
At 1 August 2023
1,271,417
236,590
1,508,007
Amortisation charged for the year
884,817
148,083
1,032,900
At 31 July 2024
2,156,234
384,673
2,540,907
APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
11
Intangible fixed assets
(Continued)
- 23 -
Carrying amount
At 31 July 2024
6,691,938
1,251,958
7,943,896
At 31 July 2023
7,576,755
1,074,109
8,650,864
Company
Goodwill
£
Cost
At 1 August 2023
-
0
Transfers
542,157
At 31 July 2024
542,157
Amortisation and impairment
At 1 August 2023
-
0
Amortisation charged for the year
4,518
At 31 July 2024
4,518
Carrying amount
At 31 July 2024
537,639
At 31 July 2023
-
0

 

The amortisation charge has been included within administrative expenses.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
12
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 August 2023
77,875
212,869
51,776
342,520
Additions
162,473
141,381
5,478
309,332
Disposals
(360)
(4,977)
-
0
(5,337)
At 31 July 2024
239,988
349,273
57,254
646,515
Depreciation and impairment
At 1 August 2023
41,087
110,129
17,562
168,778
Depreciation charged in the year
34,205
44,106
11,188
89,499
Eliminated in respect of disposals
(30)
(219)
-
0
(249)
At 31 July 2024
75,262
154,016
28,750
258,028
Carrying amount
At 31 July 2024
164,726
195,257
28,504
388,487
At 31 July 2023
36,788
102,740
34,214
173,742
Company
Computers
£
Cost
At 1 August 2023 and 31 July 2024
1,149
Depreciation and impairment
At 1 August 2023
505
Depreciation charged in the year
379
At 31 July 2024
884
Carrying amount
At 31 July 2024
265
At 31 July 2023
644
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
10,833,986
11,363,643
APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2023
11,363,643
Additions
12,500
Transfers
(542,157)
At 31 July 2024
10,833,986
Carrying amount
At 31 July 2024
10,833,986
At 31 July 2023
11,363,643
14
Subsidiaries

Details of the company's subsidiaries at 31 July 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Apprentify Limited
25 Water Lane, First Floor, Wilmslow, Cheshire, SK9 5AR
Employment placement and training services
Ordinary
100.00
Netcom Training Ltd
Icentrum, Holt Street, Birmingham, B7 4BB
Employment placement and training services
Ordinary
100.00
The Juice Academy Ltd
25 Water Lane, First Floor, Wilmslow, Cheshire, SK9 5AR
Employment placement and training services
Ordinary
100.00
Upskilla Limited
25 Water Lane, First Floor, Wilmslow, Cheshire, SK9 5AR
Employment placement and training services
Ordinary
100.00
APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 26 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
130,442
59,332
-
0
-
0
Unpaid share capital
-
0
118
-
0
-
0
Corporation tax recoverable
1,857
844
1,857
844
Other debtors
33,135
10,291
-
0
2,500
Prepayments and accrued income
2,208,592
1,159,658
24,220
21,657
2,374,026
1,230,243
26,077
25,001
Amounts falling due after more than one year:
Deferred tax asset (note 19)
-
0
54,296
446
133,396
Total debtors
2,374,026
1,284,539
26,523
158,397
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts (see analysis)
566,661
4,270,216
566,661
4,270,185
Other bank loans
10,015
10,000
-
-
Other loans
23,895
-
-
-
Trade creditors
1,007,451
279,374
149,039
107,243
Corporation tax payable
45,640
134,678
1,857
844
Other taxation and social security
247,507
386,796
55,082
108,640
Other creditors
59,309
11,151
2,732
2,370
Accruals and deferred income
631,107
446,763
454,053
351,312
2,591,585
5,538,978
1,229,424
4,840,594
Bank loans and overdrafts analysis
Bank overdrafts
-
31
-
-
Bank loans - accrued interest
22,686
25,815
22,686
25,815
Bank loans - principal
608,983
4,342,100
608,983
4,342,100
Issue costs on bank loans
(65,008)
(97,730)
(65,008)
(97,730)
566,661
4,270,216
566,661
4,270,185

A bank loan of £631,669 (2023: £4,367,915) is secured by means of fixed and floating charge over the assets of the group.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
18
3,207,591
18,334
3,199,272
-
Loan notes (see analysis)
18
5,116,259
4,720,057
5,116,259
4,720,057
Loans from group undertakings
18
-
-
5,347,106
3,044,503
Other loans
15,078
-
-
-
Other creditors
85,340
-
0
-
0
-
0
8,424,268
4,738,391
13,662,637
7,764,560
Loan notes analysis
Loan notes - accrued interest
967,159
583,612
967,159
583,612
Loan notes - principal
4,250,000
4,250,000
4,250,000
4,250,000
Issue costs on loan notes
(100,900)
(113,555)
(100,900)
(113,555)
5,116,259
4,720,057
5,116,259
4,720,057

A bank loan of £3,199,272 (2023: £Nil) is secured by means of fixed and floating charge over the assets of the group.

18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,784,267
4,298,519
3,765,933
4,270,185
Bank overdrafts
-
0
31
-
0
-
0
Loans from group undertakings
-
0
-
0
5,347,106
3,044,503
Other loans
5,155,232
4,670,057
5,116,259
4,720,057
8,939,499
8,968,607
14,229,298
12,034,745
Payable within one year
600,571
4,230,216
566,661
4,270,185
Payable after one year
8,338,928
4,738,391
13,662,637
7,764,560

 

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 28 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
152,762
-
-
(119,417)
Tax losses
(14,521)
-
-
172,626
Other timing differences
(8,327)
-
-
1,087
129,914
-
-
54,296
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
-
-
(66)
(161)
Tax losses
-
-
512
133,232
Other timing differences
-
-
-
325
-
-
446
133,396
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 August 2023
(54,296)
(133,396)
Charge to profit or loss
184,210
132,950
Liability/(Asset) at 31 July 2024
129,914
(446)

The overall deferred tax liability set out above is expected to reverse within two years and relates mainly to accelerated capital allowances being offset by trading losses carried forward that are expected to mature within the same period.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
94,536
64,125

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

At the reporting date there were outstanding contributions owed by the group amounting to £12,818 (2023: £9,450)

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 29 -
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 0.001p each
54,354
54,354
1
1
Ordinary B shares of 0.001p each
26,950
26,950
-
-
Ordinary B2 shares of 0.001p each
11,000
11,000
-
-
Ordinary B3 shares of 0.001p each
2,293
2,280
-
-
Ordinary C shares of 0.001p each
548
548
-
-
Ordinary shares of 0.001p each
107,800
107,800
1
1
202,945
202,932
2
2

On 26 June 2024, 13 Ordinary B3 shares of £0.00001 each were issued at par and were fully paid.

The respective rights of each share class are documented within the Articles of Association.
22
Reserves
Share premium

Share premium account reserves represents the excess of the consideration received on the issue of share capital over the nominal value of the shares.

Profit and loss reserves

The profit and loss reserves represents cumulative profits and losses, net of distributions, to shareholders.

23
Financial commitments, guarantees and contingent liabilities

There is a cross guarantee between Apprentify Group Limited, Apprentify Limited and Netcom Training Ltd in favour of the group's finance lenders in relation to the parent company's debt.

APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 30 -
24
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the group for certain properties and a car park. Leases are negotiated for an average term between 1 and 5 years, with break clauses negotiated as appropriate on a property by property basis.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
144,373
156,512
-
-
Between two and five years
337,153
224,132
-
-
In over five years
21,409
-
-
-
502,935
380,644
-
-
25
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Interest paid
2024
2023
£
£
Group
Key management personnel
26,172
5,510

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Key management personnel
323,467
297,296
APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 31 -
26
Directors' transactions

A brought forward director's loan balance of £2,500 was disclosed in the prior year's financial statements. This director resigned during the year and the loan balance was repaid.

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
Director's loan account
2.25
-
25,005
47
25,052
-
25,005
47
25,052
27
Controlling party

The ultimate controlling party is considered to be J P Fitchew, a director.

28
Post balance sheet events

On 16 September 2024, Apprentify Group Limited acquired 100% of the shares and voting rights in Ioda Limited for £1,751,134.

 

During the period 1 August 2024 to 14 October 2024, Apprentify Group Limited granted 5,065 B1 ordinary share options of £0.00001 each and 20,639 B3 ordinary share options of £0.00001 each.

29
Cash generated from group operations
2024
2023
£
£
Loss after taxation
(383,687)
(1,020,023)
Adjustments for:
Taxation charged/(credited)
198,655
(130,890)
Finance costs
870,500
902,070
Investment income
(69)
(8)
Loss on disposal of tangible fixed assets
28
657
Amortisation and impairment of intangible assets
1,032,900
944,968
Depreciation and impairment of tangible fixed assets
89,499
53,868
Movements in working capital:
Increase in debtors
(1,142,770)
(359,884)
Increase/(decrease) in creditors
880,893
(381,324)
(Decrease)/increase in deferred income
(7,464)
6,148
Cash generated from operations
1,538,485
15,582
APPRENTIFY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 32 -
30
Analysis of changes in net debt - group
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
329,901
(112,553)
217,348
Bank overdrafts
(31)
31
-
0
329,870
(112,522)
217,348
Borrowings excluding overdrafts
(9,020,176)
76,677
(8,943,499)
(8,690,306)
(35,845)
(8,726,151)
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