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Registered number: 03804696









Gen II Engineering & Technology Training Limited
(A company limited by guarantee)









Annual report and financial statements

For the year ended 31 August 2024

 
Gen II Engineering & Technology Training Limited
 
(A company limited by guarantee)
 
 
Company Information


Directors
Mr M J Evans 
Mr A S J Moss 
Mr A N Ismail 




Registered number
03804696



Registered office
Centre for Advanced Manufacturing & Nuclear Skills
Blackwood Road

Lillyhall Industrial Estate

Workington

Cumbria

CA14 4JJ




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG




Bankers
National Westminster Bank plc
182 Deansgate

Manchester

M3 3LY





HSBC

1-3 Bishopsgate

London

EC2N 3AQ




Solicitors
Baines Wilson LLP
Carlisle

Cumbria

CA3 0JW
 
 
Burnetts
Victoria House, Wavehill Drive
Rosehill
Carlisle
Cumbria
CA1 2ST





 
Gen II Engineering & Technology Training Limited
 
(A company limited by guarantee)
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 9
Statement of comprehensive income
 
10
Balance sheet
 
11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 26


 
Gen II Engineering & Technology Training Limited
 
(A company limited by guarantee)
 
 
Strategic Report
For the year ended 31 August 2024

An overview of Gen II Engineering & Technology Training Limited
 
The Company (Gen II) was established in 2000 and specialises in the Engineering, Nuclear, and Manufacturing sectors. In May 2017, Gen II joined The City & Guilds Group.
Gen II currently operates from 5 training centres across Cumbria and employs circa 147 employees (115 in October 2024 following the Sellafield relate Tupe), the majority of which are direct delivery staff. Through targeted development of commercial training, Gen II continues to grow its geographic and product portfolio. Gen II has developed many higher-level programmes to meet the needs of industry including the suite of nuclear related technology foundation degrees. The quality of teaching and learning is paramount, resulting in Gen II’s excellent success rates, typically 20% above the national average.
Collaborative working is a fundamental part of Gen II’s ethos. The company worked intensively on trailblazer projects for the development of new apprentice frameworks as well as continued working with our academic partners to develop a suite of industry driven degree level programmes. Gen II currently works with over 200 local and national clients delivering a broad range of programmes from Level 2 study programmes to Level 6 degree apprenticeships. Many of these programmes have been developed specifically for employers or in response to Government initiatives. In developing programmes for local, national and international clients, Gen II proactively seeks out delivery partners, thus enhancing its own capability. In all aspects of developing programmes, Gen II responds to the needs to the client in delivering to time, quality and cost.
Gen II has approximately 1,300 Apprentices in learning, with 300 higher education students and deliver approximately 10,000 delegate days of short course training per annum.

Year ended 31 August 2024
 
Gen II has faced a difficult trading year associated with increasing costs, challenging new learner starts, and stagnant ESFA and contracted apprenticeship reimbursement. This has led to in year revenue challenges. Gen II has successfully reduced its cost based throughout the trading period, making significant staff cost savings.
During the year, Gen II have introduced a range of interventions to turn the business around;
Embedded its new management team and governing body, providing direction, oversight, and challege;
Successfully gained a 'Good' inspection grading at its most recent inspection, including 'Good' in every sub-category. This is a testament to the company's quality improvement journey;
Secured Sellafield direct award for apprenticeships and maintained our short course and graduate contracts;
Secured circa. £600k in grant funding to support HTQ and LSIG developments

Page 1

 
Gen II Engineering & Technology Training Limited
 
(A company limited by guarantee)
 

Strategic Report (continued)
For the year ended 31 August 2024

For the future
 
Gen II’s high-level priorities going into FY24 are to;
Deliver high quality training that meets the needs of learners and employers;
Maintain a strong reputation in the community;
Be financially sustainable;
Focus on the manufacturing and non-STEM markets and short course growth;
Underpinned by a highly skilled and engaged workforce

Gen II will continue to review its curriculum offer based on employer demand and performance. The business will look to expand its offer outside of Cumbria, with a specific focus on Health and Safety and Clean Energy Training (including Nuclear). Gen II is in the process of bidding for a number of large contracts that, if successful, will create significant financial upside for the business.
Additionally, Gen II will continue to look for cost saving opportunities in its existing operations to ensure that operating costs remain efficient for the business. Initial reports suggest the headcount reduction programme in FY23 and further reductions in FY24 are having the desired impact, but this will continue to be monitored.
Gen II will continue to work with a range of stakeholders and partners, including: the ESFA, the Nuclear Decommissioning Authority, Sellafield Ltd, the Cumbria Chamber of Commerce, ECITB, and the National College for Nuclear.
Overall Gen II, with City and Guilds' support, is putting into place both the team and the resources necessary to continue the tunaround in FY25, and is well placed to face the future challenges of the market.
Financial KPIs
          2023    2024
Gross Margin
        44.5%    44.6%
EBITDA            (£1,936,246)           (£725,310)
Current Ratio       1.38    0.81
 


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



Mr A N Ismail
Director

Date: 24 March 2025

Page 2

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Directors' Report
For the year ended 31 August 2024

The directors present their report and the financial statements for the year ended 31 August 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;

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 £1,754,363 (2023 -loss £1,907,439).

During the year, a distribution of £nil (2023: £nil) was made to the Parent. The directors do not recommend payment of a final distribution. 

Directors

The directors who served during the year were:

Mr M J Evans 
Mr A S J Moss 
Mr A N Ismail 

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.

Page 3

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Directors' Report (continued)
For the year ended 31 August 2024

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.
 





Mr A N Ismail
Director

Date: 24 March 2025

Page 4

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Independent auditors' report to the members of Gen II Engineering & Technology Training Limited
 

Opinion


We have audited the financial statements of Gen II Engineering & Technology Training Limited (the 'Company') for the year ended 31 August 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 August 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.


Page 5

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Independent auditors' report to the members of Gen II Engineering & Technology Training Limited (continued)


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.


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 3, 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 6

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Independent auditors' report to the members of Gen II Engineering & Technology Training 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
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 policies 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 the risks related to fraud on non-compliance with laws and regulations.
The outcome of discussions 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 Anti-Bribery and Corruption.
 
Page 7

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Independent auditors' report to the members of Gen II Engineering & Technology Training Limited (continued)


Audit response to risks identified

Our procedures to respond to the risks identified included the following:

Reviewing the financial statements 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.

We have also considered the risk of fraud through management override of controls by:

Testing the appropriateness of journal entries and other adjustments. We have used data analytics software 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.
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant 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.


Page 8

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Independent auditors' report to the members of Gen II Engineering & Technology Training Limited (continued)




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

25 March 2025
Page 9

 
Gen II Engineering & Technology Training Limited
 
(A company limited by guarantee)
 
 
Statement of Comprehensive Income
For the year ended 31 August 2024

2024
2023
Note
£
£

  

Turnover
 4 
11,275,151
10,982,790

Cost of sales
  
(6,251,042)
(6,092,421)

Gross profit
  
5,024,109
4,890,369

Administrative expenses
  
(6,329,388)
(7,349,355)

Other operating income
 5 
36,304
12,825

Operating loss
 6 
(1,268,975)
(2,446,161)

Interest receivable and similar income
 10 
2,623
6,343

Loss before tax
  
(1,266,352)
(2,439,818)

Tax on loss
 11 
(488,011)
532,379

Loss for the financial year
  
(1,754,363)
(1,907,439)

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

The notes on pages 13 to 26 form part of these financial statements.

Page 10

 
Gen II Engineering & Technology Training Limited
 
(A company limited by guarantee)
Registered number: 03804696

Balance Sheet
As at 31 August 2024

2024
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
4,633,529
4,901,317

Investments
 13 
4
4

  
4,633,533
4,901,321

Current assets
  

Debtors
 14 
3,167,310
2,683,342

Cash at bank and in hand
 15 
348,035
385,397

  
3,515,345
3,068,739

Creditors: amounts falling due within one year
 16 
(2,550,633)
(2,750,372)

Net current assets
  
 
 
964,712
 
 
318,367

Total assets less current liabilities
  
5,598,245
5,219,688

Creditors: amounts falling due after more than one year
 17 
(2,218,320)
(538,705)

Provisions for liabilities
  

Deferred tax
 18 
(453,305)
-

Net assets
  
2,926,620
4,680,983


Capital and reserves
  

Profit and loss account
 20 
2,926,620
4,680,983


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




Mr A N Ismail
Director

Date: 24 March 2025

The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
Gen II Engineering & Technology Training Limited
 
(A company limited by guarantee)
 

Statement of Changes in Equity
For the year ended 31 August 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 September 2023
-
4,680,983
4,680,983


Comprehensive income for the year

Loss for the year
-
(1,754,363)
(1,754,363)


At 31 August 2024
-
2,926,620
2,926,620


The notes on pages 13 to 26 form part of these financial statements.


Statement of Changes in Equity
For the year ended 31 August 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 September 2022
-
6,588,422
6,588,422


Comprehensive income for the year

Loss for the year
-
(1,907,439)
(1,907,439)


At 31 August 2023
-
4,680,983
4,680,983


The notes on pages 13 to 26 form part of these financial statements.

Page 12

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

1.


General information

Gen II Engineering & Technology Training Limited is a private company limited by guarantee, registered in England and Wales. The address of the registered office is Centre for Advanced Manufacturing & Nuclear Skills, Blackwood Road, Lillyhall Industrial Estate, Workington, Cumbria, CA14 4JJ. The registered number is 03804696.
This principal activity of the company is the provision of short courses, apprenticeships, and education qualifications.

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 The City & Guilds of London Institute as at 31 August 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 a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 13

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

2.Accounting policies (continued)

 
2.4

Going concern

The Directors review the company’s financial plans and its principal financial risks on an ongoing basis. They are satisfied that Gen II Engineering & Technology Training Limited has sufficient resources to continue operating for the foreseeable future and the statutory accounts have been prepared in the knowledge that the entity is a financially viable organisation. 
In forming this opinion, it is noted that the company has shown significant improvement financially in FY24 compared to the prior year, as it continues its progress towards rightsizing the business for sustainable growth. 
In H2 of FY24, headcount has reduced significantly through a combination of natural attrition and redundancies, including a significant reduction in our senior leadership team, to ensure that Gen II can run a sustainable business model for the foreseeable future.
Commitment to the long-term strategy of Gen II is supported by the recent agreement of a 27 month contract with Sellafield, which will extend our longstanding relationship out to the end of FY26.
Gen II play an integral role in the wider C&G Group growth strategy set out in the latest detailed 5 year plan, showing our plans to grow a sustainable apprenticeship-led model, underpinned by innovative and efficiently run programmes of learning.
For the reasons set out above, the Directors are of the opinion that it remains appropriate to continue to prepare the financial statements on a going concern basis.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 14

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

2.Accounting policies (continued)

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 September 2022 to continue to be charged over the period to the first market rent review rather than the term of the lease.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

Page 16

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%-20%
Long-term leasehold property
-
10% - 25%
Plant and machinery
-
6.66% - 33%
Motor vehicles
-
25%
Fixtures & fittings and computer equipment
-
10%-20%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Investments

Investments in subsidiaries are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

 
2.14

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.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

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 17

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. 
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an
assets's carying amount and the present value of estimated cash flows.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference
between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of
the amount that the Company would receive for the asset if it were to be sold at the reporting date.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make 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 these judgements, estimates and assumptions.
The directors believe that judgements, estimate and assumptions do not have a significant risk of causing a material
difference to the carrying amount of the assets and liabilities within the next financial year.


4.


Analysis of turnover

The whole of the turnover is attributable to provision of short courses, apprenticeships, and education qualifications.

All turnover arose within the United Kingdom.

Page 18

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

5.


Other operating income

2024
2023
£
£

Government grants receivable
36,304
12,825



6.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Profit on disposal of tangible fixed assets
-
(1,059)

Other operating lease rentals
129,423
106,374


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
12,800
12,800

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.

Page 19

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

8.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
7,090,165
7,363,313

Social security costs
655,913
765,509

Cost of defined contribution pension scheme
338,873
351,544

8,084,951
8,480,366


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


        2024
        2023
            No.
            No.







Number of staff 
131
175



Number of apprentices
30
4

161
179


9.


Directors' remuneration



The statutory directors have not been paid through the company in the current or prior year.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
2,623
6,343

Page 20

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

11.


Taxation


2024
2023
£
£


Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
488,011
(532,379)


Taxation on profit/(loss) on ordinary activities
488,011
(532,379)

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 -21.52%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(1,266,352)
(2,439,818)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -21.52%)
(316,588)
(525,049)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
37,661
380

Fixed asset differences
85,960
73,994

Change in tax rates
-
(74,107)

Short term timing difference leading to an increase (decrease) in taxation
-
(7,597)

Unrelieved tax losses carried forward
680,978
-

Total tax charge for the year
488,011
(532,379)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

12.


Tangible fixed assets





Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£
£



Cost or valuation


At 1 September 2023
4,519,538
856,185
2,145,450
18,299
3,857,041
11,396,513


Additions
-
27,957
174,805
-
51,939
254,701


Disposals
-
-
(5,500)
-
(2,110,242)
(2,115,742)



At 31 August 2024

4,519,538
884,142
2,314,755
18,299
1,798,738
9,535,472



Depreciation


At 1 September 2023
509,751
840,818
2,003,073
18,299
3,123,255
6,495,196


Charge for the year on owned assets
86,328
16,171
63,368
-
336,246
502,113


Disposals
-
-
(5,500)
-
(2,089,866)
(2,095,366)



At 31 August 2024

596,079
856,989
2,060,941
18,299
1,369,635
4,901,943



Net book value



At 31 August 2024
3,923,459
27,153
253,814
-
429,103
4,633,529



At 31 August 2023
4,009,787
15,367
142,377
-
733,786
4,901,317

Page 22

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

13.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 September 2023
4



At 31 August 2024
4





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Cumbria ATA Limited
Centre for Advanced Manufacturing & Nuclear Skills, Blackwood Road, Lillyhall Industrial Estate, Workington, Cumbria, England, CA14 4JJ
Ordinary
100%


14.


Debtors

2024
2023
£
£



Trade debtors
589,856
872,854

Amounts owed by group undertakings
112,530
2,585

Other debtors
374,095
186,484

Prepayments and accrued income
2,090,829
1,586,713

Deferred taxation
-
34,706

3,167,310
2,683,342



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
348,035
385,397


Page 23

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
550,534
303,999

Amounts owed to group undertakings
184,072
851,340

Other taxation and social security
11,453
-

Other creditors
30,393
101,019

Accruals and deferred income
1,774,181
1,494,014

2,550,633
2,750,372


Amounts owed to group undertakings are interest free, unsecured and repayable on demand.


17.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Amounts owed to group undertakings
1,692,440
-

Government grants received
525,880
538,705


Amounts owed to group undertakings are interest free, unsecured and has no fixed repayment terms. The parent company has confirmed that it will not seek repayment of £1,692,440 within at least 12 months from the date of approval of these financial statements.

Page 24

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

18.


Deferred taxation




2024
2023


£

£






At beginning of year
34,706
(497,673)


Charged to profit or loss
(488,011)
532,379



At end of year
(453,305)
34,706

The deferred taxation balance is made up as follows:

2024
2023
£
£


Accelerated capital allowances
581,305
539,214

Other timing differences
(128,000)
(573,920)

453,305
(34,706)


19.


Government grants

The amounts recognised in the financial statements for government grants are as follows:


2024
2023
£
£



Recognised in creditors:
Deferred government grants due after more than one year

525,880
538,705

Recognised in other operating income:
Government grants recognised directly in income

36,304
12,825




20.


Reserves

Profit and loss account

Includes all current and prior period retained profits and losses.

Page 25

 
Gen II Engineering & Technology Training Limited

(A company limited by guarantee)
 
 
 
Notes to the Financial Statements
For the year ended 31 August 2024

21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £338,873 (2023: £351,544). Contributions totalling £nil (2023: £56,341) were payable to the fund at the balance sheet date.


22.


Commitments under operating leases

At 31 August 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£



Not later than 1 year
72,800
118,700

Later than 1 year and not later than 5 years
50,000
123,051

122,800
241,751


23.


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.


24.


Controlling party

The ultimate parent company is The City and Guilds of London Institute, a company registered in England, company number RC000117. There is no overall controlling party of The City and Guilds of London Institute. City and Guilds is the parent company for the largest group of which group accounts are prepared.
Gen II Engineering & Technology Training Limited is exempt from the obligation to deliver consolidated accounts as its results and balances are included within the consolidated accounts of its parent. 
Copies of the accounts of The City and Guilds of London Institute can be obtained from the Registrar of Companies.

 
Page 26