The Directors present their annual report and financial statements for the year ended 31 July 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 Association's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 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).

Principal activity and review of the business

The principal activity of the company during the year continued to be that of the supply of training services.

The background of EDETA

EDETA (Edinburgh & District Engineering Training Association) was set up in 1966 The name was then changed in 2003 to “Edinburgh and District Employers’ Training Association Limited”. It is a Limited Company with charitable status under the Companies Acts, 1948 to 1967. EDETA was initially located in Dock Street Leith and moved to Kinnaird Park 23 years ago in January 2002.

The Chief Executive Officer reports to a Board of Directors appointed from member companies of the Association.

For almost 60 years, the main activity of the Association has been the provision of training for engineering apprenticeships and health and safety training.

EDETA is approved to deliver Engineering Apprenticeships; Engineering Leadership to VQ standards, a variety of Health and Safety courses and First Aid at Work courses.

The Objectives of the Association

The Objectives of the Association

• Advance the theoretical and practical education and training of persons working or intending to work in industry and other organisations.

• Provide training, instruction and carry out the assessing and verification of training.

• Provide the most effective, efficient, and economic training.

• Continue to improve the quality of training offered.

• Market the services offered effectively.

• Train and assist staff to develop their skills and expertise.

• Be aware of changing needs in industry and commerce to ensure that the training and courses delivered are appropriate.

• Not to discriminate against persons in employment, seeking employment or in training with the Association.

• Ensure training carried out by or on behalf of the Association is done within the appropriate Awarding Body: Health and safety regulations and current legislation.

• Finance the organisation by charging fees and obtaining grants for training.

Apprentice Training –There are currently apprentices on the Skills Development Scotland, funded Modern Apprentice Training Scheme, covering the three years to July 2027 the intake for the year ahead looks fairly strong with the number expected to be over 34 taking the numbers to around 190. Our success rate over the past four years for apprentices achieving their Modern Apprenticeship averaged at 66% and for the past three years were for 2021-22 61%, 2022/23, 2023-24 68% and 66% for 2024-25. This is slightly lower than the percentage from last year. This however still leaves us below the new benchmark of 75% set by SDS. This number is reflected in the higher intake years over exaggerating the low % number in the following years. EAL & SDS continues to consider EDETA to be a relatively low risk category-training provider following our compliance and quality audits.

The chart below plots the association’s performance in terms of percentage success in apprentices achieving their qualifications in relation to the SDS sponsored programmes. It shows that the performance is gradually on the rise toward the 70% mark and stands comparison with the majority of providers across Scotland.

Health and Safety Training – This aspect of the association has withered in recent years following Holyrood’s placement of funding in the flexible workforce fund available only to colleges.

The Association’s apprentice intake is key to our business plans, and the chart below shows an average of just under 60 in numbers taken on in the last four years this matches the application in our annual bid for an SDS contact.

EDETA in the past twelve months has worked hard to consolidate its apprenticeship programs with a credible intake in the past year and encouraging others to participate.

Income has decreased from £736k to £672k in the year. Expenditure has decreased from £680k to £634k in the year. This has resulted in a surplus of £38k in the year compared with a surplus of £56k in the prior year. This is in line with expectations tied to reduced costs for fewer starts and a fall in SDS income from the lower intake of apprentices during the year.

Going Concern

As we have moved through the year 2024-25 generally the requirement for apprentices to take up the vacant roles in engineering companies for the imminent years ahead continued at a reasonable level. The intake in the year past was 41, which is slightly lower than the estimate of 45. This figure whilst lower than previous years is generally in line with a normal high intake. The percentage success rate for SDS still sits at around 70% therefore depending on when the unsuccessful candidates drop out will now increase the funds from SDS due to the higher numbers in the system from the numbers mention in the past 2 to 3 years.

Our staffing during the year 2024-25 was made up as follows, the CEO, Training Manager, Two Assessors and Administrator. We have been training key staff to take over the running of the centre from the end of the SDS 2024-25 year which is from the beginning of April 2025. Recruitment remains extremely difficult due to a very shallow pool of qualified candidates. It will be expected to recruit further over the next 3 months for the viability of the association in the coming years ahead.

In light of our current contract with SDS covering three-year period beginning 1st April 2024 taking us through to 31st March 2027 with 34 starts attached to each year and each year having a value of approximately £350k, this should maintain the bulk of our income this will give the association stability during that period going forward. However, on a positive note the intakes for 2024-25 and 2025-26 were for 41 and 32, this with the current year 2025 -26 indicating an intake of approximately 30 for the year which would be considered a good intake and will contribute to the SDS income. Whilst our contract was for 34 spaces in recent years for each year. This being the reality our SDS income will come in at approximately £550k Then next year 2026-27 is looking steady again even at this early stage.

Reserves policy

The reserve fund represents a build-up of surpluses from past operating results and represents the free reserves of the company. The directors have reviewed the requirement to maintain a level of free reserves and have concluded that the most appropriate level is between six and twelve months of operational expenditure. The current level of free reserves after allowing for fixed assets is £308,160 (2024: £267,751) which equates to approximately 9 to 10 months operating expenditure.

Investment policy

The directors whilst adopting a low-risk policy retained our investment in income bonds whilst maximising the annual return for the investment.

Risk policy

Having regard to the Charity Commission requirements on risk, the charity has undertaken an assessment of the major risks facing the charity, particularly those relating to the operations, finances and staffing of the charity and are satisfied that systems are in place to mitigate the exposure to major risks.

For the immediate future to recruit additional staff to enable the association to provide the appropriate service to our companies with the increase in uptake in recent years and expected intake in the next SDS year 2025-26. This is in line with the development statement that follows.

Developments and actions being considered for this coming year

• Continue to encourage new and existing customers to use the services provided by EDETA.

• Membership a good response was received from our companies that use our services as many renewed membership and newer companies became members of the association.

• Marketing the Association services to encourage employers to recruit apprentices who have not done so in the past. This will be an ongoing exercise throughout the year.

• Continue to develop the good relationship we have with the employers, apprentices, delegates attending courses and the Colleges.

• Looking forward a wide number of our well-established member companies have projected intakes equal to the current year giving us a good window into the next four years. We have also had former members return to us with variable numbers in terms of intakes. Unfortunately, we have lost one of our main member companies however our intakes will remain well above our SDS contract.

• We also have three new companies to Edeta taking on apprentices through ourselves in 2025-26 and are a welcome addition to our portfolio. Including Skanska Alfa Fabrication and Barbour Marine.

The Association is a company limited by guarantee registered with the Scottish Charity Regulator. EDETA (Edinburgh & District Engineering Training Association) was set up in 1966. The name was then changed in 2003 to "Edinburgh and District Employers' Training Association Limited". Originally located in Dock Street, the Association moved to Kinnaird Park in January 2002.

For over fifty years, the main activity of the Association has been the provision of training for engineering apprenticeships and also health and safety training.

EDETA is approved to deliver Engineering Apprenticeships; Engineering Leadership to VQ standards, a variety of Health and Safety courses and First Aid at Work courses.

Recruitment and appointment of trustees

A Board of Directors appointed from member companies of the Association governs EDETA. The Directors are nominated by the member companies and are elected to the Board by the existing Directors. The nominee attends a meeting as an observer prior to election as part of the induction process. Further briefing is given by the Chief Executive as to the background of the Association and the responsibilities of the Directors.

The board meets four times a year on a voluntary basis when the Chief Executive Officer gives a report on the Association activities, budgets are considered and fees for services fixed. Any requests for capital equipment is made and authorised if appropriate by the board.

The day-to-day management of the Association is the responsibility of the Chief Executive Officer who then reports to the Board of Directors.

None of the Directors has any beneficial interest in the company.

The directors, who also act as trustees for the charitable activities of Edinburgh and District Employers Training Association Limited, 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 Association 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;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association 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 Association 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 Association 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 Edinburgh and District Employers Training Association Limited (the ‘Association’) for the year ended 31 July 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 July 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 Association 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 Association’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 Association’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 organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of grant income and the posting of transactions to the correct funds. We discussed these risks with management, designed audit procedures to test the timing and existence of donations and grant income, including reviewing of grant paperwork and terms and conditions, reviewing the allocation of costs against the correct funding and reviewed areas of judgement for indicators of management bias.

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 focused on specific laws and regulations which may have a direct material effect on the financial statements or operation of the charity, including the Charities and Trustees Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), and the Care Inspectorate.

We assessed the extent of compliance of the laws and regulations identified above by inspecting any legal correspondence, the Care Inspectorate report and making enquiries of management.

We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation 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 company.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. However, the primary responsibility for the prevention and detection of fraud rests with the trustees. To address the risk of fraud we identified internal controls established to identify risk, performed analytical procedures to identify unusual movements, assessed any judgements and assumptions made in determining accounting estimates, reviewed journal entries for unusual transactions and identified related parties.

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 and 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 Association by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Investments

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

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

Edinburgh and District Employers Training Association Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Fleming House, Kinnaird Park, Edinburgh, EH15 3RD.

The financial statements have been prepared in accordance with the Association's Memorandum and Articles of Association, 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 Association is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Association. 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.

At the time of approving the financial statements, the Directors have a reasonable expectation that the Association has adequate resources to continue in operational existence for the next 12 months. Thus the Directors 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.

Revenue grants are included within income for the year in which they are due. Capital grants are credited to the Statement of Financial Activities in the year in which they are due.

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.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Items below £1,000 are not capitalised.

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 measured at transaction price excluding transaction costs due to being unlisted and therefore a reliable estimate of the fair value cannot be obtained.

At each reporting end date, the Association reviews the carrying amounts of its tangible 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 Association 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 Association's balance sheet when the Association 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 Association’s contractual obligations expire or are discharged or cancelled.

The Association has been granted charitable status by HMRC and has no current trading activities which are liable for corporate taxation.

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 Association 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.

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

Provision of training and education

Training grants

Course fees

Validation fees

Investments

Provision of training and education

Premises costs

General expenses

Accountancy fees

Governance costs includes payments to the auditors of £6,060 for audit fees.

The average monthly number of employees during the year was:

Key management personnel

Key management personnel are those with responsibilities for planning, directing and controlling the activities of the charity, directly or indirectly, including any director (whether executive or otherwise) of the charity. This definition includes directors and those members of staff who are the senior management personnel to whom the directors have delegated significant authority or responsibility in the day-to-day running of the charity. The total amount of remuneration for key management personnel is detailed below.

The remuneration of key management personnel was as follows:

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

National Savings Bonds

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

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 Association had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the charity provided services totalling £23,391 (2024: £84,377) to companies with which it shares common directorships. At the balance sheet date, a total of £3,305 (2024: £8,270) was owed by these companies. All these transactions were completed at an arm's length basis and details of each company are set out below.

Bruntons Aero Products Ltd, who Alan Hook and Elise Littlejohn are directors of, was provided a service of £5,283 during the year of which £nil was still owed to Edinburgh and District Employers Training Association Ltd at 31 July 2025.

Veolia Water, whereby Ian Alton shares a directorship, was provided a service totalling £7,350 during the year, of which £3,280 was still owed to Edinburgh and District Employers Training Association Ltd at 31 July 2025.

MacTaggart Scott Ltd, who James McGeechan is a director of, was provided services totalling £7,275 during the year and £25 was still owed to Edinburgh and District Employers Training Association Ltd at 31 July 2025.

Heriot Watt University was provided services during the year totalling £nil whereby Alistair Blyth shares a directorship.

Almond Engineering who Michelle Quinn shares a directorship with, was provided services totalling £3,483 during the year.

The Association had no material debt during the year.