| REGISTERED NUMBER: |
| SKILLS TO GROUP LIMITED |
| REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 |
| REGISTERED NUMBER: |
| SKILLS TO GROUP LIMITED |
| REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JULY 2024 |
| Page |
| Company Information | 1 |
| Report of the Directors | 2 |
| Report of the Independent Auditors | 5 |
| Income Statement | 9 |
| Balance Sheet | 10 |
| Statement of Changes in Equity | 11 |
| Notes to the Financial Statements | 12 |
| SKILLS TO GROUP LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 JULY 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountant & Statutory Auditor |
| Chancery House |
| 30 St Johns Road |
| Woking |
| Surrey |
| GU21 7SA |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 JULY 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 July 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of training for clients of all ages. |
| GOING CONCERN |
| The 12 months leading up to July 2024 continued to be a challenging time for the skills sector and the Skills Group. The environment has continued to be subject to increased bureaucracy while dealing with a consistent loss of revenue over the past 4 years. |
| Competitors have continued to leave the Apprenticeship space due to the unattractiveness of the sector and regulatory intervention. Sales and profitability continues to diminish year on year. |
| With the change in government, and therefore policies, we are expecting to have to endure a period of uncertainty and tough trading conditions. Throughout the remainder of 2024 and into 2025 we plan to carry out cost cutting and streamlining exercises in order to continue trading for at least another 2 years. |
| This is in line with expectations contained within our accounts year ending 2023 and these expectations continue to be valid. |
| The directors have not identified any material uncertainties related to going concern, and the financial statements have been prepared on a going concern basis. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report. |
| Other changes in directors holding office are as follows: |
| M G Wake - was appointed on 18 January 2023 and resigned 1 November 2023. |
| S L Chaffe - ceased to be a director on 20 October 2024 |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 JULY 2024 |
| PERFORMANCE |
| The companies Key Financial and Other Performance Indicators during year were as follows: |
| 2024 | 2023 |
| £'000 | £'000 |
| Turnover | 4,762 | 5,354 |
| Pre-tax profit | 167 | 333 |
| Net Assets | 4,016 | 3,904 |
| Cash Reserves | 1,752 | 1,146 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The company is self-funding and does not rely upon external long term, or short term, funding and as such cash flow is not seen as risk, nor is interest rate fluctuation. |
| The majority of the company's activity is funded by the UK Government, and as such there are no bad debts. |
| The company has 2 discrete funding lines which are young people and apprentices. In the 23/24 funding year the Adult Education Budget contract has come to an end and there is no replacement currently. The company did tender for replacement; however, the tender process was flawed with many organisations failing to get contracts. This tender is currently the subject of legal action between some other organisations and the ESFA, however we chose not to pursue such action on a risk and reward basis following legal advice. |
| Price per unit has stabilised in 2024 although medium term risk remains. The company has moved away from areas which funding does not support and focused on the areas where quality and value can be delivered. However, the effect of inflation on input supplies and pressure on wages, while sales prices are fixed inevitably puts pressure on margins and cash flow. Income per unit has fallen by more than 50% in real terms over the last 4 years. |
| The company does not offer credit and has no plans to do so, as a result there is no reason to believe the historic and insignificant, bad debt levels will change. The company does provide intercompany loans, however, the fellow group companies hold property which is easily marketable, under current conditions, should that be required. The payments from the government (ESFA) are monthly and highly reliable, this provides a cash flow environment second to none, following from this cash flow situation the company's liquidity is strong and remains so throughout the business cycle. The directors expect this to remain the same throughout this year and into the medium term. |
| The company has no borrowings outside of hire purchase arrangements, and significant reserves to provide a good financial grading by the ESFA, when combined with the 'Good' OFSTED grading awarded in the summer of 2024 this puts the company in a strong reputational position within the market. While income per sales unit is diminishing, at the same time as input costs are rising, putting strain on margins. The company is in the enviable position of enjoying both a full time and apprenticeship contract with the DFE. This allows a degree of diversification that is rare in the independent sector and puts the company in a strong position to withstand the current trading headwinds when compared to our competitors. |
| OBJECTIVES AND POLICIES |
| The company manages it's working capital so that it has a minimum of six months cover for expenses at any time. The company holds sufficient land and buildings for operations within the group structure. The policy is to ensure the accounts remain good or better on ESFA financial scoring for operating company and group structure. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 JULY 2024 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, WP Audit Services LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SKILLS TO GROUP LIMITED |
| Opinion |
| We have audited the financial statements of Skills To Group Limited (the 'company') for the year ended 31 July 2024 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Report of the Directors has 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit; or |
| - | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SKILLS TO GROUP LIMITED |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SKILLS TO GROUP LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
| Objectives |
| The objectives of our audit in respect of fraud, are; |
| - to identify and assess the risks of material misstatement of the financial statements due to fraud; |
| - to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and |
| - to respond appropriately to instances of fraud or suspected fraud identified during the audit. |
| However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. |
| Audit Approach |
| Our approach was as follows: |
| - We obtained an understanding of the legal and regulatory requirements applicable to the Company and considered that the most significant are: Education and Skills Funding Agency Funding rules, Ofsted inspection guidelines, Companies Act 2006, UK Tax legislation and Data Protection Regulations (UK GDPR). |
| - We obtained an understanding of how the Company complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications. |
| - We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance. We used our knowledge of the Company and the industry in which it operates to determine if management's explanations were consistent with our own conclusions. |
| - Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business. Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries and assessing estimates for management bias have enabled us to conclude in this area. |
| - No instances of fraud, non-compliance or suspected non-compliance with laws and regulations were identified from the above procedures. |
| As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
| - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
| - Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Company's internal control. |
| - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
| - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. |
| - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
| We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SKILLS TO GROUP LIMITED |
| Context of the ability of the audit to detect fraud or breaches of law or regulation |
| Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. |
| In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Chartered Accountant & Statutory Auditor |
| Chancery House |
| 30 St Johns Road |
| Woking |
| Surrey |
| GU21 7SA |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| OPERATING PROFIT |
| Interest receivable and similar income |
| 311,495 | 544,255 |
| Interest payable and similar expenses | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 5 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| BALANCE SHEET |
| 31 JULY 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 6 |
| Tangible assets | 7 |
| CURRENT ASSETS |
| Debtors | 8 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 9 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 10 | ( |
) | ( |
) |
| PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 13 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 JULY 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 August 2022 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 July 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 July 2024 |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 1. | STATUTORY INFORMATION |
| Skills To Group Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | STATEMENT OF COMPLIANCE |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements have been prepared under the historical cost convention. |
| Going concern |
| The 12 months leading up to July 2024 continued to be a challenging time for the skills sector and the Skills Group. The environment has continued to be subject to increased bureaucracy while dealing with a consistent loss of revenue over the past 4 years. |
| Competitors have continued to leave the Apprenticeship space due to the unattractiveness of the sector and regulatory intervention. Sales and profitability continues to diminish year on year. |
| With the change in government, and therefore policies, we are expecting to have to endure a period of uncertainty and tough trading conditions. Throughout the remainder of 2024 and into 2025 we plan to carry out cost cutting and streamlining exercises in order to continue trading for at least another 2 years. |
| This is in line with expectations contained within our accounts year ending 2023 and these expectations continue to be valid. |
| However, despite this, the directors have not identified any material uncertainties related to going concern, and the financial statements have been prepared on a going concern basis. The company has net current assets and remains profitable and has no external debt. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned companies within the group. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. |
| The company recognises revenue when the amount can be reliably measured, it is probable that future economic benefits will flow to the entity, and the specific contract criteria have been met. Training income is recognised based on the timing of delivery and meeting of specific performance obligations. |
| Goodwill |
| Goodwill is amortised over its useful life, for the goodwill recorded this was considered to be 26 months. The goodwill is now fully amortised. |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
| Plant and machinery - 33% on cost |
| Fixtures and fittings - 25% on cost |
| Motor vehicles - 25% on cost |
| Improvements to property - 10 - 50 years |
| Tangible fixed assets are stated at costs less accumulated depreciation and accumulated impairment losses. |
| Impairment of Assets |
| At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss if recognised immediately in profit or loss. |
| If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the assets in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
| Debtors |
| Short term debtors are measured at transaction price, less any impairment. |
| Creditors |
| Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transactions costs, and are measured subsequently at amortised costs using the effective interest method. |
| Taxation |
| Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date. |
| Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. |
| Deferred tax assets are only 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. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed. |
| Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
| The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income). |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is a finance lease / hire purchase arrangement or an operating lease based on the substances of the arrangement. |
| Hire purchase arrangements are leases of assets that transfer substantially all the risks and rewards of ownership to the company. |
| Assets held under hire purchase arrangements are recognized initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a hire purchase obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss. |
| Assets held under hire purchase arrangements are included in tangible fixed assets and depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date. |
| Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. |
| Provisions for liabilities |
| Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. |
| The amount recognised as a provision is the best estimate of the consideration required to settle the present recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
| Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance costs in profit or loss in the period it arises. |
| The Company recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary costs payable for the period of absence. |
| 4. | EMPLOYEES AND DIRECTORS |
| The average number of employees during the year was |
| 5. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Under/over provision | 12,476 | - |
| Total current tax |
| Deferred tax | ( |
) |
| Tax on profit |
| UK corporation tax has been charged at 25% . |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 5. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess of capital allowances |
| Adjustments to tax charge in respect of previous periods |
| Deferred tax movement | (10,632 | ) | (6,690 | ) |
| Total tax charge | 54,078 | 70,682 |
| 6. | INTANGIBLE FIXED ASSETS |
| Goodwill |
| £ |
| COST |
| At 1 August 2023 |
| and 31 July 2024 |
| AMORTISATION |
| At 1 August 2023 |
| and 31 July 2024 |
| NET BOOK VALUE |
| At 31 July 2024 |
| At 31 July 2023 |
| 7. | TANGIBLE FIXED ASSETS |
| Improvements | Fixtures |
| to | Plant and | and | Motor |
| property | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 August 2023 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
| At 31 July 2024 |
| DEPRECIATION |
| At 1 August 2023 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
| At 31 July 2024 |
| NET BOOK VALUE |
| At 31 July 2024 |
| At 31 July 2023 |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 7. | TANGIBLE FIXED ASSETS - continued |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Motor |
| vehicles |
| £ |
| COST |
| At 1 August 2023 |
| and 31 July 2024 |
| DEPRECIATION |
| At 1 August 2023 |
| Charge for year |
| At 31 July 2024 |
| NET BOOK VALUE |
| At 31 July 2024 |
| At 31 July 2023 |
| 8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Amounts owed by group undertakings are unsecured, interest free and repayable on demand. |
| 9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts (see note 11) |
| Trade creditors |
| Taxation and social security |
| Other creditors |
| Included within short term creditors at the year end is £178.5k (2023: £83.5k) relating to employer incentives which have been received and will be paid out to employers under the ESFA programme. |
| 10. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts (see note 11) |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 11. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2024 | 2023 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable operating | leases |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| 12. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts | 69,946 | 84,316 |
| Liabilities arising under hire purchase arrangements are secured over the assets they have funded. |
| 13. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 100 | 100 |
| 14. | RELATED PARTY TRANSACTIONS |
| Loans with Directors |
| During the year, a director advanced £1,250,000 (2023 - £2,500,000) to the company. The loan incurred interest at 11.25%, totalling £144,144 (2023 - £211,336) in the year. In addition, a loan was made to a director totalling £2,000,000, on which interest was charged at 2.25%, totalling £27,616. As at the year end, these balances were repaid and cleared to nil. |
| Another director had an overdrawn loan account at the year end totalling £111,453 (2023: £11,204). Subsequent to the year end, the director passed away and this balance is now due from the estate. |
| Transactions with other related parties |
| During the year, Board fees were paid to the 2 Non Executive Directors (£4,800 to each director). As at year end, the balance owed to each director was nil. |
| SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 15. | ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY |
| The company's immediate and ultimate parent is PSC Training & Development Group Limited, incorporated in England and Wales. |
| The smallest entity producing publicly available consolidated financial statements is PSC Training & Development Group Limited. These financial statements are available from Companies House. |
| The ultimate controlling party is Mrs A Roseen Boulting. |