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REGISTERED NUMBER: 02875213 (England and Wales)









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: M J Boulting
A Boulting
S G Jeffery
J A Mclean
S Reed





SECRETARY: M J Boulting





REGISTERED OFFICE: Horizon Building Western Wood Way
Langage Business Park
Plymouth
Devon
PL7 5BG





REGISTERED NUMBER: 02875213 (England and Wales)





AUDITORS: WP Audit Services LLP
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.

M J Boulting
A Boulting
J A Mclean
S Reed

Other changes in directors holding office are as follows:

S G Jeffery - appointed 1 November 2023

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:





M J Boulting - Director


19 June 2025

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.




Stephanie Williams (Senior Statutory Auditor)
for and on behalf of WP Audit Services LLP
Chartered Accountant & Statutory Auditor
Chancery House
30 St Johns Road
Woking
Surrey
GU21 7SA

19 June 2025

SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213)

INCOME STATEMENT
FOR THE YEAR ENDED 31 JULY 2024

2024 2023
Notes £    £   

TURNOVER 4,761,765 5,354,037

Cost of sales (2,817,538 ) (3,041,004 )
GROSS PROFIT 1,944,227 2,313,033

Administrative expenses (1,661,675 ) (1,769,755 )
OPERATING PROFIT 282,552 543,278

Interest receivable and similar income 28,943 977
311,495 544,255

Interest payable and similar expenses (144,935 ) (211,336 )
PROFIT BEFORE TAXATION 166,560 332,919

Tax on profit 5 (54,078 ) (70,682 )
PROFIT FOR THE FINANCIAL YEAR 112,482 262,237

SKILLS TO GROUP LIMITED (REGISTERED NUMBER: 02875213)

BALANCE SHEET
31 JULY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 6 - -
Tangible assets 7 193,303 248,268
193,303 248,268

CURRENT ASSETS
Debtors 8 2,689,346 2,938,067
Cash at bank and in hand 1,751,895 1,146,491
4,441,241 4,084,558
CREDITORS
Amounts falling due within one year 9 537,660 323,422
NET CURRENT ASSETS 3,903,581 3,761,136
TOTAL ASSETS LESS CURRENT LIABILITIES 4,096,884 4,009,404

CREDITORS
Amounts falling due after more than one year 10 (55,577 ) (69,947 )

PROVISIONS FOR LIABILITIES (25,143 ) (35,775 )
NET ASSETS 4,016,164 3,903,682

CAPITAL AND RESERVES
Called up share capital 13 100 100
Retained earnings 4,016,064 3,903,582
SHAREHOLDERS' FUNDS 4,016,164 3,903,682

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 19 June 2025 and were signed on its behalf by:





M J Boulting - Director


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 100 3,841,345 3,841,445

Changes in equity
Dividends - (200,000 ) (200,000 )
Total comprehensive income - 262,237 262,237
Balance at 31 July 2023 100 3,903,582 3,903,682

Changes in equity
Total comprehensive income - 112,482 112,482
Balance at 31 July 2024 100 4,016,064 4,016,164

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

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 77 (2023 - 83 ) .

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 52,234 70,682
Under/over provision 12,476 -
Total current tax 64,710 70,682

Deferred tax (10,632 ) -
Tax on profit 54,078 70,682

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 166,560 332,919
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
21.005%)

41,640

69,930

Effects of:
Expenses not deductible for tax purposes 486 1,821
Depreciation in excess of capital allowances 10,108 5,621
Adjustments to tax charge in respect of previous periods 12,476 -
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 882,329
AMORTISATION
At 1 August 2023
and 31 July 2024 882,329
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 304,723 284,379 311,757 331,266 1,232,125
Additions - - 964 - 964
Disposals (116,079 ) (254,345 ) (302,555 ) (38,750 ) (711,729 )
At 31 July 2024 188,644 30,034 10,166 292,516 521,360
DEPRECIATION
At 1 August 2023 149,683 264,641 304,196 265,337 983,857
Charge for year 4,125 14,951 3,888 32,965 55,929
Eliminated on disposal (116,079 ) (254,345 ) (302,555 ) (38,750 ) (711,729 )
At 31 July 2024 37,729 25,247 5,529 259,552 328,057
NET BOOK VALUE
At 31 July 2024 150,915 4,787 4,637 32,964 193,303
At 31 July 2023 155,040 19,738 7,561 65,929 248,268

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 131,858
DEPRECIATION
At 1 August 2023 65,928
Charge for year 32,965
At 31 July 2024 98,893
NET BOOK VALUE
At 31 July 2024 32,965
At 31 July 2023 65,930

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 390,454 629,960
Amounts owed by group undertakings 2,100,000 2,000,000
Other debtors 198,892 308,107
2,689,346 2,938,067

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) 14,369 14,369
Trade creditors 33,370 121,186
Taxation and social security 87,409 45,943
Other creditors 402,512 141,924
537,660 323,422

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) 55,577 69,947

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 14,369 14,369
Between one and five years 55,577 69,947
69,946 84,316

Non-cancellable operating leases
2024 2023
£    £   
Within one year 36,324 36,324
Between one and five years 55,503 91,827
91,827 128,151

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: £    £   
100 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.