The directors present their annual report and financial statements for the year ended 31 March 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's the Memorandum and Articles, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

The Social Enterprise Academy is Scotland’s key learning and development organisation supporting social entrepreneurs, social enterprises, and enterprising third-sector organisations.

The Academy designs and delivers practical learning programmes that strengthen the confidence, capacity, and leadership of people working for social change. Through these programmes, we aim to:

• Strengthen leadership and the position of social entrepreneurs.

• Underpin the sustainability and impact of the wider third sector.

• Encourage the innovation and creativity that regenerate communities.

Although primarily focused on the provision of learning and development programmes, the Academy exists to enable social change. Its work is guided by a long-term vision of fairer communities powered by enterprising people, expressed through our Big Audacious Goal to facilitate 10 million social entrepreneurs by 2030.

Our purpose and values are captured in our Manifesto, which continues to guide our decisions and partnerships:

Academy Manifesto:

Most people think that if we want to change the world, we need large companies to make big steps. We like to disagree.

We are convinced that a better future will be fuelled by the strength of millions of communities.

Because a community is the only scale where the power of trust, commitment, and loyalty naturally comes together. It’s the world at its best.

So to turn this floating blue marble into something good, we should start with empowering the change makers in communities. The social entrepreneurs. We call them: agents of change.

Because a world in transformation needs transformational leaders. We don’t tell them what to do. We don’t teach them. We facilitate their development into skilful leaders. It's deep learning that creates deep-rooted transformation.

And once they find that, their dreams and energy don’t just add up, they multiply. Because there is nothing more powerful than a determined social entrepreneur with a warm heart, a clear goal, and buckets full of self-confidence.

Because passion and purpose are infectious. It attracts others and the momentum grows. One person will become two. Then two becomes twenty and twenty becomes a thousand. That’s the magic happening.

So never think you can’t be the one to change the world. You’re just where it starts.

The year to 31 March 2025 represented a period of recovery and renewal for the Academy.
Building on the restructuring and refocusing that took place in the previous year, the organisation entered 2024/25 with a clear plan to stabilise operations and rebuild financial resilience.

This progress was achieved against a challenging backdrop of continued macroeconomic pressures — including sustained inflation, tight public budgets, and heightened financial strain across the social economy. Despite these external conditions, the Academy delivered its full programme commitments, maintained its position as a trusted strategic partner of the Scottish Government, and continued to extend the reach and impact of its learning programmes across Scotland and internationally.

Scottish Government Investment: throughout the year, outcome-specific investment from the Scottish Government supported delivery across two core programme areas: Adult Learning and Development focussing on the development of leadership and entrepreneurship practice; and the Social Enterprise Schools Programme.

Adult - Leadership Development: the Academy’s adult learning programmes remain central to our mission of strengthening leadership and enterprise capacity within the social economy. In 2024/25, these programmes reached hundreds of learners across Scotland through a combination of bursary-supported and paid-for learning, with strong engagement from community organisations, social enterprises, and charities of varying scale.

• Bursary-Backed Programme: continued to ensure that learning and development opportunities remained affordable and accessible at a time of financial pressure across the third sector. Participants engaged in programmes covering leadership, entrepreneurship, impact measurement, and organisational sustainability — with evaluations continuing to show high levels of satisfaction, confidence, and application of learning within their organisations.

• Just Enterprise: the Academy continued to play an active role as a consortium partner in the Just Enterprise programme — the Scottish Government’s flagship business support service for the third sector.
  Through this partnership, we delivered tailored leadership development to emerging and established social enterprises across Scotland. This work strengthened organisational capability and supported the sector’s contribution to inclusive economic growth, community wealth building, and the wellbeing economy.

Social Enterprise Schools Programme: continued to grow in reach and influence during the year. Our long-term aim remains to make this opportunity available to every school in Scotland embedding enterprise and social purpose into the curriculum and giving young people the experience of creating and running their own social enterprises.

During 2024/25, the Academy worked with teachers and local authorities to expand participation across rural and urban areas alike, with continued focus on inclusion and representation. Celebration events such as the national Social Enterprise Schools Awards and local Dragon’s Den showcases gave pupils a platform to share their ideas and success stories, often attended by parents, local businesses, and community organisations.

Feedback from educators and learners continues to highlight the transformational impact of the programme on young people’s confidence, the development of an enterprising mindset which is combined with a sense of agency and understanding of social impact. We remain proud of the contribution this programme makes to the wider educational landscape and to Scotland’s future social entrepreneurs.

OTHER ACTIVITIES

Dragonfly

During 2024/25, the Academy continued to develop and refine the Dragonfly Trust concept — a separate but related charitable initiative, to be constituted as a SCIO, designed to connect corporate leadership development and ESG investment with the needs of social and community leaders in Scotland and beyond.

The Trust provides a mechanism for companies and foundations to invest in people as well as projects — helping to amplify the social impact of their funding by strengthening the leadership of those delivering change on the ground. In this period, we finalised the governance model for the Trust and began the process of securing strategic partners and match funding for its initial pilot programmes.

This work marks an important step in building a sustainable and blended income model for the Academy, while contributing to Scotland’s wider ambition to link business purpose with community wellbeing. Early feedback from corporate partners and sector bodies confirms that the Dragonfly Trust has significant potential to strengthen cross-sector collaboration and attract new forms of investment into the social economy.

Expansion Across the UK

While we remain committed to our Scottish purpose and roots, the Academy continued to extend its reach across the United Kingdom. Our Social Enterprise Schools model, successfully continued in London and built on a successful pilot last year in the North East of England. It is now being introduced in new areas through partnership with local authorities, schools, and community organisations. We were grateful to a number of private sector clients for continued support during this period including Experian, SAP and Aegon. We are also very grateful to the the Peoples Postcode Lottery, the Rank Foundation and the BGF Foundation for continued support to develop young people programmes across the UK.

Adult learning programmes also expanded through partnerships with funders and networks keen to replicate the Academy’s practical, peer-based approach to leadership development. This growing UK presence reinforces Scotland’s reputation for innovation in social enterprise education and demonstrates the adaptability of the Academy’s model to diverse local contexts.

International work

The Academy’s international network of licensed partners continued to deliver and adapt our learning programmes across a range of global contexts. Active hubs in Australia, South Africa, Canada, Egypt, and Sweden all delivered Academy programmes with a shared commitment to quality and impact.

In 2024/25, the Academy focused on deepening collaboration across this network, facilitating knowledge exchange between partners, and strengthening shared systems for quality assurance and impact measurement. We also continued to support the development of new partnership opportunities aligned with our values and educational approach.

Through this global community, the Academy demonstrates how Scotland’s social enterprise expertise can contribute to international dialogue on leadership, learning, and the transition to a wellbeing economy.

We delivered programmes in partnership with other parts of the Network to Movember and Ikea as in prior years showing the economic value of collaboration across the network.

During the year the charity generated incoming resources of £2,349,767 (2024:£2,571,399) and incurred expenditure of £2,379,764 (2024:£3,322,253). This resulted in a deficit of £29,997 for the year (2024: deficit of £750,854). The charity has net liabilities of £559,929 (2024: net liabilities £529,932).

The Board has reviewed the organisation’s financial position and forecasts, taking professional advice where appropriate. Following the operational restructuring completed during the year, the improvement of financial controls, and the receipt of additional funding in 25/26, the Directors are satisfied that the Social Enterprise Academy has adequate resources to continue in operational existence for the foreseeable future.

The Scottish Government has confirmed its ongoing commitment to funding and to the Academy’s role as a strategic partner within Scotland’s social enterprise ecosystem. Accordingly, the Board considers that the going concern basis of preparation remains appropriate.

It is the aim of the charity to maintain a level of free reserves which will ensure that , in the event of a significant drop in funding, it will be able to continue current activities while consideration is given to ways in which additional funds may be raised.

Free Reserves are the Total Funds less Fixed Assets, less Restricted and Designated Funds.

The Directors have set a target for free Reserves to reach £600,000 which equates to just over 3 months operating costs.

The Directors have agreed a five-year plan to achieve this level of reserves. This first year was a period of stabilisation whilst future years will target surplus and reserves generation. Current financial plans suggest we are on track with this recovery plan.

• Scottish Government provided outcome specific investment to cover the work plan referred to above.

• Outcome specific grant income from a number of institutions including the Heritage Lottery Fund, Rank Foundation and PPL was also received

• Fee income from participants and their organisations.

• Fee income from organisations operating outside the Scottish geographical area including other regions of the United Kingdom, Europe, Africa and Asia.

• Fundraising and Donations.

• A financial analysis is shown in notes 2 to 5 to the financial statements.

Under the Memorandum and Articles of Association, the charity has the power to invest any money that it does not immediately require in any investments, securities or properties. As there are few funds available for long-term investment the Trustees, having regard to the liquidity requirements of operating the charity and to the reserves policy, have operated a policy of keeping available funds in an interest-bearing bank account.

The Board’s annual strategic review and forward planning event considers the risks to which the charity is exposed and identifies what needs to be in place to manage these risks throughout the year. In addition, a risk register is maintained by the CEO and staff which is presented to the board on a quarterly basis. The risks faced by the company fall into two categories, internal and external.

Internal risks are minimised by the implementation of procedures for authorisation of transactions and activities and to ensure consistent quality of delivery for all operational aspects of the company. A scheme of delegation is in place for payment authorisation and this has been agreed with the finance subcommittee.

Financial risks are monitored within the executive team on a monthly basis with the scrutiny of cash flow, balance sheets and profitability statements.

External risks relate largely to the sustainability of the company and the blended nature of income streams with much of the charitable work of the organisation dependent on the provision of grants by external bodies including the Scottish Government. This is augmented by the delivery of learning programmes to organisations who can afford to purchase these on behalf of their staff, or beneficiaries. There continues to be growing demand for the delivery of learning programmes both in Scotland and beyond which is indicative of the Academy’s strategy to reduce reliance on grant funding by public bodies. Independent grant funding including an increased level of interest in the social economy by corporate foundations also looks likely to mitigate this risk.

Any variation from the business plan has an associated risk assessment that is presented to the board of directors for consideration and approval.

The Board are aware of the growing risk of cyber-attack and have taken appropriate steps to protect the company including additional security and back up facility with our IT provider and a comprehensive training programme for all staff.

The year ahead will see the Academy build on its position as a trusted delivery partner across Scotland’s social economy, working in close collaboration with the Scottish Government and other stakeholders to deepen leadership capacity in line with national priorities.

Working Across Sectors: We will continue to strengthen our cross-sector relationships — engaging with government, local authorities, the private sector and civil society — to promote leadership that supports Scotland’s transition to a wellbeing economy.
In particular, we will work with the Scottish Government to develop leadership capacity within and across the policy themes identified by the First Minister and Deputy First Minister, ensuring that leadership development is embedded within strategies that address social and economic transformation.

Alignment with the National Strategy for Economic Transformation: Our forward plans are closely aligned to the National Strategy for Economic Transformation and the associated policy direction toward Community Wealth Building.
We share the vision articulated by Neil McInroy and others that sustainable change must be rooted in place, investing in the assets, leadership and ingenuity of communities themselves.
Through our learning programmes and partnerships, the Academy will continue to build the capability of local leaders to design and deliver solutions that reflect the distinct needs and strengths of their places.

Inclusive and Democratic Business Models: We recognise the increasing emphasis within Scotland’s economic strategy on inclusive and democratic business models — social enterprises, co-operatives, employee-owned businesses, and community enterprises.
The Academy will continue to champion and support these models as powerful vehicles for economic resilience, local empowerment and fair work.

Our programmes will help leaders within these organisations to strengthen governance, grow sustainable income, and embed social purpose at the core of their operations.

Thematic Priorities: Building on the themes emerging from government policy and our own experience of community learning, our future programme development will focus on:

• Social Mobility and Opportunity – leadership development for those working to widen access to employment, enterprise and learning.

• Climate and Community Action – supporting place-based initiatives that enable communities to respond to the climate emergency through innovation and collaboration.

• Alleviation of Poverty – equipping leaders and organisations to tackle the structural causes of poverty through enterprise, partnership and systemic change.

• Compassionate and Purpose-led Leadership – embedding reflective practice, collaboration and wellbeing into leadership across all sectors.

Through these thematic approaches we will continue to demonstrate how investment in people, in the capacity and confidence of leaders at every level, delivers lasting benefit for communities and for Scotland’s economy as a whole.

The charity is a company limited by guarantee governed by its Memorandum dated 26 August 2004 and Articles of Association adopted by special resolution on 23 November 2006 and subsequently amended and adopted by special resolution on 9 June 2016. It is a registered Scottish Charity.

The Social Enterprise Academy designs and delivers educational programmes and professional development in leadership and business skills for social entrepreneurs and those involved in social enterprise.

The Articles provide for a maximum of twelve directors and a minimum of three. A person automatically becomes a director of the company upon his/her admission to membership. Membership is open to any individual wishing to support the aims and activities of the company who has been nominated for membership by three directors of the company and supported by 75% of the directors in office.

The full board of directors meets quarterly. The Board also spends a day each year undertaking a strategic review and forward planning for the organisation.

A finance subcommittee has delegated authority to consider matters of a financial nature including budget management. Management accounts are prepared monthly and this sub committee meets on a quarterly basis by arrangement to review them.

A Nominations Subcommittee has responsibility to oversee board member recruitment, induction and training.

Advisory groups are also in place to provide guidance to both the Global Learning Lab and the Education team. The Global Learning Lab has delegated responsibility to review all aspects of quality improvement within the context of the European Framework for Quality Management which was successfully introduced to the organisation on 5th August 2013 (date formally approved by European Framework for Quality Management).

The CEO produces a report of the organisation’s progress to the directors on a quarterly basis. The CEO has delegated powers to make day-to-day decisions regarding operations. A work plan and budget is agreed between the CEO and the directors and if there is significant variation required, this is referred to the directors for approval.

After appointment/co-option an induction programme is offered to all new directors. In addition, all directors receive an information pack that contains the Memorandum and Articles of Association, roles and responsibilities of being a director, and background information on the organisation.

Key management personnel of the charity are the Directors and the Chief Executive Officer, Neil McLean, who is charged with the day to day running of the charity. All directors give of their time freely and no directors’ remuneration was paid in the year. Details of directors’ expenses and related party transactions are disclosed in the notes to the financial statements.

Directors are required to disclose all relevant interests and register them with the Chief Executive and in accordance with the Company’s policy withdraw from discussions where a conflict of interest arises. No conflicts of interest arose during the financial year.

The pay of the company’s Chief Executive is reviewed annually and is currently on a ratio of 3 to 1 with the company’s administrative staff which the directors consider to be a fair and reasonable multiple. The remuneration is also bench-marked with charitable companies of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

The Social Enterprise Academy (Scotland) co-operates with a range of organisations across Scotland, the UK, and internationally that share its purpose of supporting social enterprise and community-led development.

The Academy continues to receive outcome-specific investment from the Scottish Government, which remains a principal funder and strategic partner. Engagement takes place within the framework of the national Social Enterprise Strategy and the 10-year Ecosystem plan.

During the year to 31 March 2025, preparatory work was undertaken to establish the Dragonfly Trust, a new charitable vehicle designed to connect corporate and philanthropic partners with leadership development in the social economy. The Trust was formally constituted as a Scottish Charitable Incorporated Organisation (SCIO) in July 2025, after the financial year end.

The Academy and the Dragonfly Trust share several trustees/directors in common to ensure strategic alignment and shared governance principles. Appropriate terms of reference and conflict-of-interest procedures have been agreed to safeguard independence of decision-making, financial integrity, and accountability between the two entities.

Beyond these relationships, the Academy continues to collaborate with other social enterprises, public agencies, and sector bodies—including Social Enterprise Scotland, Just Enterprise partners, and the regional social enterprise networks—to maximise the reach and impact of its learning programmes.

No related-party transactions took place during the year other than those disclosed in the notes to the financial statements.

The directors, who also act as trustees for the charitable activities of Social Enterprise Academy (Scotland), are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The directors' report was approved by the Board of Directors.

Opinion

We have audited the financial statements of Social Enterprise Academy (Scotland) (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, for the year then ended;

have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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.

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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.

We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the directors' report; or

proper accounting records have not been kept; or

the financial statements are not in agreement with the accounting records; or

we have not received all the information and explanations we require for our audit.

As explained more fully in the statement of directors' responsibilities, 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 charity’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 charitable company or to cease operations, or have no realistic alternative but to do so.

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We considered the opportunities and incentives that may exist within the group for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and manipulating the Charity’s key performance indicators to meet targets. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate and inspected minutes from meetings held by management and trustees for any reference to breaches of laws and regulations. In addition, we reviewed areas of judgement for indicators of management bias to address these risks.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).

We reviewed the laws and regulations in areas that directly affect the financial statements including applicable charity and company law and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the charity.

We communicated identified laws and regulations and potential fraud risks throughout our team and remained alert to any indications of non-compliance or fraud throughout the audit. However the primary responsibility for the prevention and detection of fraud rests with the trustees.

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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s directors, as a body, in accordance with Section 44(1) (c) of the Charities and Trustees Investment (Scotland) Act regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Thomson Cooper is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Social Enterprise Academy (Scotland) is a private company limited by guarantee incorporated in Scotland. The registered office is Social Enterprise Scotland, Thorn House, 5 Rose Street, Edinburgh, EH2 2PR.

The financial statements have been prepared in accordance with the charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

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

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

The charity recorded a loss of £29,997 (2024: loss £750,854) during the year. At 31 March 2025 the charity had net current liabilities of £239,307 (2024: liabilities £501,634) and a balance sheet deficit of £559,929 (2024: deficit £529,932).

With one-off restructuring costs and holiday pay adjustment excluded, The Academy recorded a modest operating surplus of £17,514. The significant improvement in the financial result from the 23-24 year shows the progress made in financial management and organisational leadership in a year of stabilisation and preparation for financial recovery.

The current and future cash position of the charity has been reviewed by the Board. This included a comprehensive review of the financial projections and cash-flow requirements, covering a period beyond one year from the date of approval of the financial statements. These forecasts were prepared using assumptions which the directors consider appropriate to the financial position of the charity and its future anticipated revenues and costs.

Specific consideration has been given to:

• The improved financial and operational stability of the charity and progress against the five-year plan established in the prior year, with results currently exceeding the recovery plan targets

• The valued support and funding provided from Scottish Government

• Further development of the newly established Dragonfly Trust

• Ongoing income levels and cash flow management as a result of the above points

• A significant reduction in long-term liabilities as post year-end, the directors signed a loan amendment converting existing loans of £150,000 to income, with repayment only required if the charity achieves a significant turnaround

The directors also acknowledge that the charity’s liquidity position depends on continued budgetary oversight and cost management. However, they project further strengthening of liquidity over the next 12 months due to improved financial performance and the measures outlined above.

After due consideration of the above, the directors are satisfied that the charity has access to adequate resources to continue in operational existence for period of at least twelve months from the date of approval of the financial statements. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

Unrestricted funds are available for use at the discretion of the directors in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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

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

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

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

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

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

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the charity holds a long-term interest and where the charity has significant influence. The charity considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Other investments are measured at cost less impairment on the basis that they represent a bond holding in an entity that is not publicly traded and the fair value cannot otherwise be measured reliably.

The charity is considered the parent undertaking of its 100% owned subsidiary company Social Enterprise Academy International C.I.C. which is incorporated in Scotland (SC544394). Its registered office address is Thorn House, 5 Rose Street Edinburgh, EH2 2PR.

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

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

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

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

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

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

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

Programme Fee Income

Grants Receivable

Investments

Education & Training Programmes

Education & Training Programmes

Staff recruitment

Staff travel, subsistence and other costs

Consultancy

Marketing and Publicity

Programme Delivery

Courses and Conferences

The charitable group initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs, together with the governance costs are apportioned between its key charitable activities undertaken. Refer to the note below for the basis of the apportionment and the analysis of support and governance costs.

Premises Costs

Telephone

Postage and Stationery

Bank charges

Loan interest

IT Equipment and Maintenance

Subscriptions

Board Travel and Subsistence

Governance costs includes payments to the auditors of £11,970 (2024- £16,654) for audit fees.

All costs are allocated to activities on a direct basis, with the exception of staff costs which are allocated on the basis of time spent.

The average monthly number of employees during the year was:

The total amount of employee benefits received by key management personnel of the charity is £87,525 (2024: £76,861). The charity considers its key management personnel to be the Chief Executive Officer, Neil McLean.

Travel and Accommodation costs amounting to £88 (2024: £324) were paid in respect of all members of the board of directors. No directors received any remuneration during the year.

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

The bank overdraft facility is secured on the assets of the company by way of a floating charge.

Bank loans include a CBILS loan from Triodos Bank. The repayment terms were renegotiated during the year, and the loan is now scheduled for full repayment by April 2031.

Also included in bank loans is an interest-free loan from Mr and Mrs James Fairweather's Charitable Trust, provided to support the charity's cashflow requirements. The loan is repayable in July 2026, and as such, the loan is presented as a non-current liability.

Directors’ loans comprise a £50,000 interest-free loan from Mr Roland Brinkman, a Trustee, and a further £50,000 interest-free loan from Mr Paul Chowdhry, who served as a Trustee during the year. Within other loans is a £50,000 interest-free loan from Mr Neil McLean, the charity’s Chief Executive. These loans were provided to support cash flow. Post year end, these loans were cancelled with the funds to be recognised as income to support the organisation’s recovery – see Note 31 for details of the post balance sheet event.

Deferred income is included in the financial statements as follows:

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Postcode Innovation Trust

This funds our work on Developing Leaders for Sustainable Communities in North-East England.

Bord na Gaidhlig

This funding supported our "Development Officers - Connecting & Collaborating" and our "Developing a Coaching Culture" programmes delivered in Gaelic language in Scotland.

The Pebble Trust

This funding was to support our Developing Leaders for Sustainable Communities programme in Scotland.

Community Foundation Ireland

This funded our Social Enterprise Schools work in Greater London, in collaboration with SAP UK.

The Progress Foundation

This was to fund our Social Enterprise Schools SEND Project which was delivered in London.

Experian

This funded our Social Enterprise Academy Schools, Coach to Succeed and Dragons’ Den projects in Scotland.

National Lottery Heritage Fund

This grant funding was received from National Heritage Lottery Fund for delivery of our Steps to Sustainability programme.

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

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

During the prior year, the subsidiary company, Social Enterprise Academy International C.I.C., was being wound up. Although the company has not yet been formally dissolved, all of its assets and liabilities were transferred to the parent charity, Social Enterprise Academy (Scotland), in the prior year. As a result, there was no intercompany balance outstanding at the year end (2024: £13,986).

Details of loans provided by related parties are disclosed in Note 18.

Learning in Communities Trust SCIO (trading as DragonFly Trust), is a separate project launched in the year which shares common directors. During the year, Social Enterprise Academy (Scotland) incurred costs of £23,993 relating to set-up costs of the charity. This has been included as a debtor at the year end.

During the year, expenses totalling £58 (2023: £Nil) were reimbursed to trustees for travel and subsistence incurred in attending meetings and carrying out their duties.

Details of the charity's subsidiaries at 31 March 2025 are as follows:

In October 2025, loan agreements with two Directors and the Chief Executive, totaling £150,000, were cancelled and replaced with an arrangement under which these funds have been recognised as income. Repayment will only arise if specific future financial conditions are met which are well in excess of the Trustees’ targeted reserves position . The likelihood of achieving these conditions is not considered probable at this time. This event occurred after the year end and does not affect the amounts reported in these financial statements.

The loan balances outstanding at the year end are included within creditors falling due after more than one year.